Segment Information

12 Months Ended

Nov. 30, 2011

Segment Information and Financial Services [Abstract]

Segment Information

Note 2.    Segment Information

As of November 30, 2011, the Company had identified five reporting segments, comprised of four homebuilding reporting segments and one financial services reporting segment, within its consolidated operations in accordance with Accounting Standards Codification Topic No. 280, “Segment Reporting.” As of November 30, 2011, the Company’s homebuilding reporting segments conducted ongoing operations in the following states:

    West Coast: California

    Southwest: Arizona and Nevada

    Central: Colorado and Texas

    Southeast: Florida, Maryland, North Carolina, and Virginia

The Company’s 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, move-up and active adult homebuyers.

The Company’s homebuilding reporting segments were identified based primarily on similarities in economic and geographic characteristics, product types, regulatory environments, methods used to sell and construct homes and land acquisition characteristics. The Company evaluates segment performance primarily based on segment pretax results.

The Company’s financial services reporting segment provides title and insurance services to the Company’s homebuyers. Until late June 2011, this segment also provided mortgage banking services to a significant proportion of the Company’s homebuyers indirectly through KBA Mortgage, a former unconsolidated joint venture of a subsidiary of the Company and a subsidiary of Bank of America, N.A., with each partner having had a 50% ownership interest in the venture. The Bank of America, N.A. subsidiary partner operated KBA Mortgage. The Company accounted for KBA Mortgage as an unconsolidated joint venture in the financial services reporting segment of its consolidated financial statements. The Company’s financial services reporting segment conducts operations in the same markets as the Company’s homebuilding reporting segments.

During the first quarter of 2011, the Bank of America, N.A. subsidiary partner in KBA Mortgage approached the Company about exiting the unconsolidated joint venture due to the desire of Bank of America, N.A. to cease participating in joint venture structures in its business. As a result, KBA Mortgage ceased offering mortgage banking services after June 30, 2011, and the unconsolidated joint venture’s business operations were subsequently unwound. After June 30, 2011, Bank of America, N.A. processed and closed only the residential consumer mortgage loans that KBA Mortgage had originated for the Company’s homebuyers on or before June 26, 2011.

The Company entered into a marketing services agreement with MetLife Home Loans, a division of MetLife Bank, N.A., effective June 27, 2011. Under the agreement, MetLife Home Loans’ personnel, located on site at several of the Company’s new home communities, can offer (i) financing options and mortgage loan products to the Company’s homebuyers, (ii) to prequalify homebuyers for residential consumer mortgage loans, and (iii) to commence the loan origination process for homebuyers who elect to use MetLife Home Loans. The Company makes marketing materials and other information regarding MetLife Home Loans’ financing options and mortgage loan products available to its homebuyers and is compensated solely for the fair market value of these services. MetLife Home Loans and its parent company, MetLife Bank, N.A., are not affiliates of the Company or any of its subsidiaries. The Company’s homebuyers are under no obligation to use MetLife Home Loans and may select any provider of their choice to obtain mortgage financing for the purchase of a home. The Company does not have any ownership, joint venture or other interests in or with MetLife Home Loans or MetLife Bank, N.A. or with respect to the revenues or income that may be generated from MetLife Home Loans providing mortgage banking services to, or originating residential consumer mortgage loans for, the Company’s homebuyers.

MetLife Bank, N.A. recently announced that it will cease offering forward mortgage banking services as part of its business. While the Company is evaluating various options, its strategic intention is to reestablish a mortgage banking joint venture or marketing relationship with a financial institution or other mortgage banking services provider, but the Company can provide no assurance that it will be able to do so.

The Company’s reporting segments follow the same accounting policies used for the Company’s consolidated financial statements as described in Note 1. Summary of Significant Accounting Policies. Operational results of each 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 the Company’s reporting segments (in thousands):

	Years Ended November 30,
	2011			2010			2009
Revenues:
West Coast	$	589,387		$	700,645		$	812,207
Southwest		139,872			187,736			218,096
Central		369,705			436,404			434,400
Southeast		206,598			256,978			351,712
Total homebuilding revenues		1,305,562			1,581,763			1,816,415
Financial services		10,304			8,233			8,435
Total revenues	$	1,315,866		$	1,589,996		$	1,824,850
Pretax income (loss):
West Coast	$	19,639		$	60,250		$	(88,442	)
Southwest		(108,265	)		(15,802	)		(48,572	)
Central		(12,924	)		(1,772	)		(29,382	)
Southeast		(37,983	)		(42,801	)		(78,414	)
Corporate and other (a)		(67,713	)		(88,386	)		(85,573	)
Total homebuilding loss		(207,246	)		(88,511	)		(330,383	)
Financial services		26,078			12,143			19,199
Total pretax loss	$	(181,168	)	$	(76,368	)	$	(311,184	)
Equity in income (loss) of unconsolidated joint ventures:
West Coast	$	68		$	1,476		$	(7,761	)
Southwest		(55,902	)		(8,631	)		(15,509	)
Central		—			—			506
Southeast		(5	)		898			(26,851	)
Total	$	(55,839	)	$	(6,257	)	$	(49,615	)
Inventory impairments:
West Coast	$	2,598		$	3,828		$	44,895
Southwest		18,715			962			28,833
Central		51			348			23,891
Southeast		1,366			4,677			23,229
Total	$	22,730		$	9,815		$	120,848
Land option contract abandonments:
West Coast	$	704		$	797		$	32,679
Southwest		296			—			—
Central		1,310			6,511			—
Southeast		751			2,802			14,622
Total	$	3,061		$	10,110		$	47,301
Joint venture impairments:
West Coast	$	—		$	—		$	7,190
Southwest		53,727			—			5,426
Southeast		—			—			25,915
Total	$	53,727		$	—		$	38,531

(a) Corporate and other includes corporate general and administrative expenses.

	November 30,
	2011		2010
Assets:
West Coast	$	995,888	$	965,323
Southwest		338,586		376,234
Central		336,553		328,938
Southeast		317,308		372,611
Corporate and other		492,034		1,037,200
Total homebuilding assets		2,480,369		3,080,306
Financial services		32,173		29,443
Total assets	$	2,512,542	$	3,109,749
Investments in unconsolidated joint ventures:
West Coast	$	38,405	$	37,830
Southwest		80,194		59,191
Southeast		9,327		8,562
Total	$	127,926	$	105,583