Segment Information

6 Months Ended

May 31, 2023

Segment Reporting [Abstract]

Segment Information

Segment Information

We have identified five operating reporting segments, comprised of four homebuilding reporting segments and one financial services reporting segment. As of May 31, 2023, our homebuilding reporting segments conducted ongoing operations in the following states:

West Coast:	California, Idaho 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. Our financial services reporting 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”), our unconsolidated joint venture with GR Alliance

Ventures, LLC (“GR Alliance”), a subsidiary of Guaranteed Rate, Inc. We and GR Alliance each have a 50.0% ownership interest, with GR Alliance providing management oversight of KBHS’ operations.

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 May 31,				Six Months Ended May 31,
	2023		2022		2023		2022
Revenues:
West Coast	$	564,350	$	761,217	$	1,104,369	$	1,420,091
Southwest	335,828		290,924		575,415		500,691
Central	545,214		433,046		935,165		788,368
Southeast	312,454		229,639		521,434		399,830
Total	$	1,757,846	$	1,714,826	$	3,136,383	$	3,108,980
Pretax income (loss):
West Coast	$	55,099	$	137,518	$	114,649	$	247,552
Southwest	57,117		64,635		101,148		100,540
Central	78,985		66,200		137,818		104,316
Southeast	48,931		39,059		72,456		59,325
Corporate and other	(36,614)		(43,223)		(66,354)		(77,923)
Total	$	203,518	$	264,189	$	359,717	$	433,810

Inventory impairment and land option contract abandonment charges:
West Coast	$	3,079	$	157	$	3,948	$	157
Southwest	—		55		—		164
Central	1,128		520		2,079		586
Southeast	80		—		3,549		—
Total	$	4,287	$	732	$	9,576	$	907

	May 31, 2023		November 30, 2022
Assets:
West Coast	$	2,452,625	$	2,631,598
Southwest	965,223		1,074,912
Central	1,306,661		1,493,486
Southeast	895,182		929,208
Corporate and other	807,294		463,194
Total	$	6,426,985	$	6,592,398