Segment Information

12 Months Ended

Nov. 30, 2023

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, 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 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, our unconsolidated joint venture with 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. 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,
	2023		2022		2021
Revenues:
West Coast	$	2,321,093	$	3,050,506	$	2,552,382
Southwest	1,169,948		1,110,045		965,139
Central	1,831,914		1,749,231		1,503,857
Southeast	1,058,151		970,580		683,651
Total	$	6,381,106	$	6,880,362	$	5,705,029

	Years Ended November 30,
	2023		2022		2021
Pretax income (loss):
West Coast	$	266,229	$	519,524	$	345,714
Southwest	188,497		238,143		186,351
Central	258,623		272,002		200,159
Southeast	147,274		152,178		77,663
Corporate and other	(128,840)		(148,232)		(152,976)
Total	$	731,783	$	1,033,615	$	656,911
Equity in income (loss) of unconsolidated joint ventures:
West Coast	$	(731)	$	(612)	$	62
Southwest	(127)		(249)		(466)
Central	—		—		—
Southeast	145		(4)		(1)
Total	$	(713)	$	(865)	$	(405)
Inventory impairment and land option contract abandonment charges:
West Coast	$	4,902	$	27,354	$	11,046
Southwest	57		900		536
Central	2,461		3,318		131
Southeast	4,004		5,729		240
Total	$	11,424	$	37,301	$	11,953

	November 30,
	2023		2022
Inventories:
West Coast	$	2,455,336	$	2,425,141
Southwest	830,514		993,059
Central	942,168		1,278,420
Southeast	905,628		846,556
Total	$	5,133,646	$	5,543,176
Investments in unconsolidated joint ventures:
West Coast	$	49,829	$	41,597
Southwest	6,796		2,680
Central	—		—
Southeast	2,503		2,508
Total	$	59,128	$	46,785
Assets:
West Coast	$	2,638,455	$	2,631,598
Southwest	908,578		1,074,912
Central	1,158,949		1,493,486
Southeast	939,997		929,208
Corporate and other	945,504		463,194
Total	$	6,591,483	$	6,592,398