Segment Information

9 Months Ended

Aug. 31, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

As of August 31, 2015, we had identified five operating reporting segments, comprised of four homebuilding reporting segments and one financial services reporting segment. As of August 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):

	Nine Months Ended August 31,						Three Months Ended August 31,
	2015			2014			2015			2014
Revenues:
West Coast	$	932,905		$	707,532		$	378,362		$	265,491
Southwest	273,339			144,597			128,021			50,101
Central	545,913			477,518			210,417			179,972
Southeast	286,739			267,247			123,404			90,667
Total homebuilding revenues	2,038,896			1,596,894			840,204			586,231
Financial services	7,351			8,014			2,953			2,983
Total	$	2,046,247		$	1,604,908		$	843,157		$	589,214
Pretax income (loss):
West Coast	$	76,177		$	93,599		$	35,769		$	39,270
Southwest	20,420			7,599			11,732			2,543
Central	42,000			24,806			18,649			11,514
Southeast	(20,965		)	(9,881		)	(4,751		)	(7,965		)
Corporate and other	(68,078		)	(54,937		)	(30,146		)	(18,548		)
Total homebuilding pretax income	49,554			61,186			31,253			26,814
Financial services	7,572			5,162			2,701			1,847
Total	$	57,126		$	66,348		$	33,954		$	28,661

Inventory impairment charges:
West Coast	$	—	$	—	$	—	$	—
Southwest	—		—		—		—
Central	—		—		—		—
Southeast	3,173		3,408		3,173		3,408
Total	$	3,173	$	3,408	$	3,173	$	3,408
Land option contract abandonments:
West Coast	$	134	$	554	$	134	$	451
Southwest	—		—		—		—
Central	225		995		225		562
Southeast	984		254		—		—
Total	$	1,343	$	1,803	$	359	$	1,013

	August 31, 2015		November 30, 2014
Inventories:
Homes under construction
West Coast	$	649,874	$	536,843
Southwest	117,705		65,647
Central	280,330		201,164
Southeast	139,667		124,618
Subtotal	1,187,576		928,272
Land under development
West Coast	719,557		765,577
Southwest	322,676		334,691
Central	396,115		363,933
Southeast	248,326		245,948
Subtotal	1,686,674		1,710,149
Land held for future development
West Coast	287,365		294,060
Southwest	113,661		138,367
Central	22,063		22,957
Southeast	104,398		124,582
Subtotal	527,487		579,966
Total	$	3,401,737	$	3,218,387

Assets:
West Coast	$	1,775,422	$	1,695,753
Southwest	598,260		579,201
Central	810,123		678,139
Southeast	528,270		531,011
Corporate and other	1,224,386		1,262,960
Total homebuilding assets	4,936,461		4,747,064
Financial services	12,035		10,486
Total	$	4,948,496	$	4,757,550