Segment Information

9 Months Ended

Aug. 31, 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 August 31, 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”), a subsidiary of Guaranteed Rate, Inc. 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,
	2023		2022		2023		2022
Revenues:
West Coast	$	506,802	$	829,405	$	1,611,171	$	2,249,496
Southwest	306,284		321,808		881,699		822,499
Central	506,640		443,581		1,441,805		1,231,949
Southeast	259,993		244,094		781,427		643,924
Total	$	1,579,719	$	1,838,888	$	4,716,102	$	4,947,868
Pretax income (loss):
West Coast	$	55,034	$	171,041	$	169,683	$	418,593
Southwest	46,193		77,368		147,341		177,908
Central	75,421		79,258		213,239		183,574
Southeast	38,495		40,202		110,951		99,527
Corporate and other	(30,521)		(46,265)		(96,875)		(124,188)
Total	$	184,622	$	321,604	$	544,339	$	755,414

Inventory impairment and land option contract abandonment charges:
West Coast	$	400	$	4,465	$	4,348	$	4,622
Southwest	—		432		—		596
Central	231		1,311		2,310		1,897
Southeast	—		2,256		3,549		2,256
Total	$	631	$	8,464	$	10,207	$	9,371

	August 31, 2023		November 30, 2022
Assets:
West Coast	$	2,631,436	$	2,631,598
Southwest	917,502		1,074,912
Central	1,193,529		1,493,486
Southeast	921,338		929,208
Corporate and other	852,646		463,194
Total	$	6,516,451	$	6,592,398