Segment Information

9 Months Ended

Aug. 31, 2019

We have identified five operating reporting segments, comprised of four homebuilding reporting segments and one financial services reporting segment. As of August 31, 2019, our homebuilding reporting segments conducted ongoing operations in the following states:

West Coast: California 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. This 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”), an unconsolidated joint venture we formed with Stearns Ventures, LLC (“Stearns”). We and Stearns each have a 50.0% ownership interest, with Stearns providing management oversight of KBHS’ operations. The financial services reporting segment is separately reported in our consolidated financial statements.

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,
	2019			2018			2019			2018
Revenues:
West Coast	$	497,654		$	571,880		$	1,194,728		$	1,455,272
Southwest	180,238			196,056			522,721			528,872
Central	326,058			327,888			874,730			885,875
Southeast	152,905			126,051			392,135			319,734
Total	$	1,156,855		$	1,221,875		$	2,984,314		$	3,189,753

Pretax income (loss):
West Coast	$	43,775		$	72,996		$	86,480		$	156,472
Southwest	26,366			31,065			76,433			66,619
Central	34,417			32,294			80,199			80,464
Southeast	5,272			(702		)	5,316			1,405
Corporate and other	(24,538		)	(26,089		)	(78,929		)	(76,081		)
Total	$	85,292		$	109,564		$	169,499		$	228,879



Inventory impairment and land option contract abandonment charges:
West Coast	$	5,065	$	4,409	$	12,148	$	15,697
Southwest	126		432		408		432
Central	—		1,131		366		1,354
Southeast	60		2,442		221		2,442
Total	$	5,251	$	8,414	$	13,143	$	19,925



	August 31, 2019		November 30, 2018
Assets:
West Coast	$	2,177,265	$	1,880,516
Southwest	695,741		631,509
Central	1,048,958		1,017,490
Southeast	448,391		463,224
Corporate and other	632,904		1,068,452
Total	$	5,003,259	$	5,061,191