Segment Information

12 Months Ended

Nov. 30, 2020

Segment Reporting [Abstract]

Segment Information

Segment Information

An operating segment is defined as a component of an enterprise for which separate financial information is available and for which segment results are evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. We have identified each of our homebuilding divisions as an operating segment. Our homebuilding operating segments have been aggregated into four homebuilding reporting segments 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 also have one financial services reporting segment. Management evaluates segment performance primarily based on segment pretax results.

As of November 30, 2020, our homebuilding reporting segments conducted ongoing operations in the following states to the extent permitted by applicable public health orders as part of their respective COVID-19 control responses:

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. In 2019, we expanded our title services business to include Arizona, Colorado and Nevada. Our financial services segment earns revenues primarily from insurance commissions and from the provision of title services.

We offer mortgage banking services, including mortgage loan originations, to our homebuyers indirectly through KBHS, an unconsolidated joint venture we formed with Stearns. We and Stearns each have a 50.0% ownership interest, with Stearns providing management oversight of KBHS’ operations. Our homebuyers may select any lender of their choice to obtain mortgage financing for the purchase of their home. The financial services reporting segment is separately reported in our consolidated financial statements.

Corporate and other is a non-operating segment that develops and oversees the implementation of company-wide strategic initiatives and provides support to our reporting segments by centralizing certain administrative functions. Corporate management is responsible for, among other things, evaluating and selecting the geographic markets in which we operate,

consistent with our overall business strategy; allocating capital resources to markets for land acquisition and development activities; making major personnel decisions related to employee compensation and benefits; and monitoring the financial and operational performance of our divisions. 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 our homebuilding reporting segments.

Our reporting segments follow the same accounting policies used for our consolidated financial statements as described in Note 1 – Summary of Significant Accounting Policies. 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):

	Years Ended November 30,
	2020		2019		2018
Revenues:
West Coast	$	1,748,582	$	1,912,146	$	2,085,328
Southwest	796,810		764,816		707,075
Central	1,192,869		1,267,892		1,239,305
Southeast	429,441		592,804		502,087
Total	$	4,167,702	$	4,537,658	$	4,533,795

Pretax income (loss):
West Coast	$	151,039	$	178,078	$	240,337
Southwest	133,386		111,016		91,017
Central	128,802		126,304		117,609
Southeast	22,950		18,550		7,624
Corporate and other	(104,677)		(108,759)		(105,286)
Total	$	331,500	$	325,189	$	351,301
Equity in income (loss) of unconsolidated joint ventures:
West Coast	$	12,972	$	(851)	$	(966)
Southwest	(497)		(697)		3,033
Central	—		—		—
Southeast	(1)		(1)		(1)
Total	$	12,474	$	(1,549)	$	2,066
Inventory impairment and land option contract abandonment charges:
West Coast	$	21,941	$	15,567	$	20,381
Southwest	570		408		432
Central	5,520		848		2,558
Southeast	638		468		5,623
Total	$	28,669	$	17,291	$	28,994

	November 30,
	2020		2019
Inventories:
West Coast	$	1,928,500	$	1,795,088
Southwest	688,807		629,811
Central	867,170		889,179
Southeast	413,005		390,524
Total	$	3,897,482	$	3,704,602

	November 30,
	2020		2019
Investments in unconsolidated joint ventures:
West Coast	$	42,762	$	51,740
Southwest	1,516		2,792
Central	—		—
Southeast	2,507		2,506
Total	$	46,785	$	57,038
Assets:
West Coast	$	2,057,362	$	1,925,192
Southwest	738,765		674,310
Central	998,612		1,035,563
Southeast	448,388		441,451
Corporate and other	1,077,113		900,570
Total	$	5,320,240	$	4,977,086