Segment Information

3 Months Ended

Feb. 29, 2024

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 29, 2024, 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
	February 29, 2024		February 28, 2023
Revenues:
West Coast	$	558,302	$	540,019
Southwest	323,125		239,587
Central	320,484		389,951
Southeast	259,787		208,980
Total	$	1,461,698	$	1,378,537
Pretax income (loss):
West Coast	$	65,740	$	59,550
Southwest	55,711		44,031
Central	38,575		58,833
Southeast	32,265		23,525
Corporate and other	(29,203)		(29,740)
Total	$	163,088	$	156,199

Inventory impairment and land option contract abandonment charges:
West Coast	$	1,298	$	869
Southwest	—		—
Central	—		951
Southeast	—		3,469
Total	$	1,298	$	5,289

	February 29, 2024		November 30, 2023
Assets:
West Coast	$	2,755,531	$	2,638,455
Southwest	916,122		908,578
Central	1,095,138		1,158,949
Southeast	993,309		939,997
Corporate and other	864,986		945,504
Total	$	6,625,086	$	6,591,483