Segment Information

6 Months Ended

May. 31, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

As of May 31, 2015, we had identified five operating reporting segments, comprised of four homebuilding reporting segments and one financial services reporting segment. As of May 31, 2015, our homebuilding reporting segments conducted ongoing operations in the following states:

West Coast: California

Southwest: Arizona and Nevada

Central: Colorado, New Mexico and Texas

Southeast: Florida, Maryland, North Carolina and Virginia

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, 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 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. We evaluate segment performance primarily based on segment pretax results.

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 Central and Southeast homebuilding reporting segments. This segment earns revenues primarily from insurance commissions and from the provision of title services. Prior to July 21, 2014, this segment also earned revenues pursuant to the terms of a marketing services agreement with Nationstar Mortgage LLC (“Nationstar”), under which Nationstar was our preferred mortgage lender and offered mortgage banking services, including residential mortgage loan (“mortgage loan”) originations, to our homebuyers who elected to use the lender. Our homebuyers may select any lender of their choice to obtain mortgage financing for the purchase of their home. Since July 21, 2014, we have offered mortgage banking services, including mortgage loan originations, to our homebuyers indirectly through Home Community Mortgage, LLC (“HCM”), a joint venture of a subsidiary of ours and a subsidiary of Nationstar. Through these respective subsidiaries, we have a 49.9% ownership interest and Nationstar has a 50.1% ownership interest in HCM, with Nationstar providing management oversight of HCM’s operations.

Corporate and other is a non-operating segment that develops and implements company-wide strategic initiatives and provides support to our homebuilding reporting segments by centralizing certain administrative functions, such as promotional marketing, legal, purchasing administration, architecture, accounting, treasury, insurance and risk management, information technology and human resources. Corporate and other includes general and administrative expenses related to operating our corporate headquarters. A portion of the expenses incurred by Corporate and other is allocated to the homebuilding reporting segments.

Our segments follow the same accounting policies used for our consolidated financial statements. The 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 our segments (in thousands):

	Six Months Ended May 31,						Three Months Ended May 31,
	2015			2014			2015			2014
Revenues:
West Coast	$	554,543		$	442,041		$	277,288		$	260,320
Southwest	145,318			94,496			80,181			48,381
Central	335,496			297,546			176,348			172,384
Southeast	163,335			176,580			86,987			81,311
Total homebuilding revenues	1,198,692			1,010,663			620,804			562,396
Financial services	4,398			5,031			2,165			2,611
Total	$	1,203,090		$	1,015,694		$	622,969		$	565,007
Pretax income (loss):
West Coast	$	40,408		$	54,329		$	18,554		$	35,964
Southwest	8,688			5,056			5,245			3,771
Central	23,351			13,292			13,125			10,516
Southeast	(16,214		)	(1,916		)	(6,601		)	(5,757		)
Corporate and other	(37,932		)	(36,389		)	(20,838		)	(19,323		)
Total homebuilding pretax income	18,301			34,372			9,485			25,171
Financial services	4,871			3,315			3,188			1,753
Total	$	23,172		$	37,687		$	12,673		$	26,924

Land option contract abandonments:
West Coast	$	—	$	103	$	—	$	103
Southwest	—		—		—		—
Central	—		433		—		—
Southeast	984		254		536		254
Total	$	984	$	790	$	536	$	357

	May 31, 2015		November 30, 2014
Inventories:
Homes under construction
West Coast	$	639,285	$	536,843
Southwest	101,275		65,647
Central	241,858		201,164
Southeast	138,156		124,618
Subtotal	1,120,574		928,272

	May 31, 2015		November 30, 2014
Land under development
West Coast	$	708,611	$	765,577
Southwest	350,726		334,691
Central	399,294		363,933
Southeast	256,159		245,948
Subtotal	1,714,790		1,710,149
Land held for future development
West Coast	294,536		294,060
Southwest	127,063		138,367
Central	22,043		22,957
Southeast	114,666		124,582
Subtotal	558,308		579,966
Total	$	3,393,672	$	3,218,387

Assets:
West Coast	$	1,773,389	$	1,695,753
Southwest	619,215		579,201
Central	761,411		678,139
Southeast	549,531		531,011
Corporate and other	1,324,049		1,262,960
Total homebuilding assets	5,027,595		4,747,064
Financial services	11,465		10,486
Total	$	5,039,060	$	4,757,550