Segment Information

3 Months Ended

Feb. 28, 2023

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 February 28, 2023, 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 February 28,
	2023		2022
Revenues:
West Coast	$	540,019	$	658,874
Southwest	239,587		209,767
Central	389,951		355,322
Southeast	208,980		170,191
Total	$	1,378,537	$	1,394,154
Pretax income (loss):
West Coast	$	59,550	$	110,034
Southwest	44,031		35,905
Central	58,833		38,116
Southeast	23,525		20,266
Corporate and other	(29,740)		(34,700)
Total	$	156,199	$	169,621

Inventory impairment and land option contract abandonment charges:
West Coast	$	869	$	—
Southwest	—		109
Central	951		66
Southeast	3,469		—
Total	$	5,289	$	175

	February 28, 2023		November 30, 2022
Assets:
West Coast	$	2,548,876	$	2,631,598
Southwest	1,063,712		1,074,912
Central	1,476,402		1,493,486
Southeast	927,498		929,208
Corporate and other	436,676		463,194
Total	$	6,453,164	$	6,592,398