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Segment Information | 12 Months Ended
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Nov. 30, 2011
Segment Information and Financial Services [Abstract] |
Segment Information | Note 2. Segment Information As of November 30, 2011, the Company had identified five reporting segments, comprised of four homebuilding reporting segments and one financial services reporting segment, within its consolidated operations in accordance with Accounting Standards Codification Topic No. 280, “Segment Reporting.” As of November 30, 2011, the Company’s homebuilding reporting segments conducted ongoing operations in the following states: West Coast: California Southwest: Arizona and Nevada Central: Colorado and Texas Southeast: Florida, Maryland, North Carolina, and Virginia The Company’s 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. The Company’s 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. The Company evaluates segment performance primarily based on segment pretax results. The Company’s financial services reporting segment provides title and insurance services to the Company’s homebuyers. Until late June 2011, this segment also provided mortgage banking services to a significant proportion of the Company’s homebuyers indirectly through KBA Mortgage, a former unconsolidated joint venture of a subsidiary of the Company and a subsidiary of Bank of America, N.A., with each partner having had a 50% ownership interest in the venture. The Bank of America, N.A. subsidiary partner operated KBA Mortgage. The Company accounted for KBA Mortgage as an unconsolidated joint venture in the financial services reporting segment of its consolidated financial statements. The Company’s financial services reporting segment conducts operations in the same markets as the Company’s homebuilding reporting segments. During the first quarter of 2011, the Bank of America, N.A. subsidiary partner in KBA Mortgage approached the Company about exiting the unconsolidated joint venture due to the desire of Bank of America, N.A. to cease participating in joint venture structures in its business. As a result, KBA Mortgage ceased offering mortgage banking services after June 30, 2011, and the unconsolidated joint venture’s business operations were subsequently unwound. After June 30, 2011, Bank of America, N.A. processed and closed only the residential consumer mortgage loans that KBA Mortgage had originated for the Company’s homebuyers on or before June 26, 2011. The Company entered into a marketing services agreement with MetLife Home Loans, a division of MetLife Bank, N.A., effective June 27, 2011. Under the agreement, MetLife Home Loans’ personnel, located on site at several of the Company’s new home communities, can offer (i) financing options and mortgage loan products to the Company’s homebuyers, (ii) to prequalify homebuyers for residential consumer mortgage loans, and (iii) to commence the loan origination process for homebuyers who elect to use MetLife Home Loans. The Company makes marketing materials and other information regarding MetLife Home Loans’ financing options and mortgage loan products available to its homebuyers and is compensated solely for the fair market value of these services. MetLife Home Loans and its parent company, MetLife Bank, N.A., are not affiliates of the Company or any of its subsidiaries. The Company’s homebuyers are under no obligation to use MetLife Home Loans and may select any provider of their choice to obtain mortgage financing for the purchase of a home. The Company does not have any ownership, joint venture or other interests in or with MetLife Home Loans or MetLife Bank, N.A. or with respect to the revenues or income that may be generated from MetLife Home Loans providing mortgage banking services to, or originating residential consumer mortgage loans for, the Company’s homebuyers. MetLife Bank, N.A. recently announced that it will cease offering forward mortgage banking services as part of its business. While the Company is evaluating various options, its strategic intention is to reestablish a mortgage banking joint venture or marketing relationship with a financial institution or other mortgage banking services provider, but the Company can provide no assurance that it will be able to do so. The Company’s reporting segments follow the same accounting policies used for the Company’s consolidated financial statements as described in Note 1. Summary of Significant Accounting Policies. Operational 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 the Company’s reporting segments (in thousands):
|  | Years Ended November 30, |
|  | 2011 |  |  | 2010 |  |  | 2009 |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
West Coast |  | $ | 589,387 |  |  | $ | 700,645 |  |  | $ | 812,207 |
Southwest |  |  | 139,872 |  |  |  | 187,736 |  |  |  | 218,096 |
Central |  |  | 369,705 |  |  |  | 436,404 |  |  |  | 434,400 |
Southeast |  |  | 206,598 |  |  |  | 256,978 |  |  |  | 351,712 |
Total homebuilding revenues |  |  | 1,305,562 |  |  |  | 1,581,763 |  |  |  | 1,816,415 |
Financial services |  |  | 10,304 |  |  |  | 8,233 |  |  |  | 8,435 |
Total revenues |  | $ | 1,315,866 |  |  | $ | 1,589,996 |  |  | $ | 1,824,850 |
Pretax income (loss): |  |  |  |  |  |  |  |  |  |  |  |
West Coast |  | $ | 19,639 |  |  | $ | 60,250 |  |  | $ | (88,442 | )
Southwest |  |  | (108,265 | ) |  |  | (15,802 | ) |  |  | (48,572 | )
Central |  |  | (12,924 | ) |  |  | (1,772 | ) |  |  | (29,382 | )
Southeast |  |  | (37,983 | ) |  |  | (42,801 | ) |  |  | (78,414 | )
Corporate and other (a) |  |  | (67,713 | ) |  |  | (88,386 | ) |  |  | (85,573 | )
Total homebuilding loss |  |  | (207,246 | ) |  |  | (88,511 | ) |  |  | (330,383 | )
Financial services |  |  | 26,078 |  |  |  | 12,143 |  |  |  | 19,199 |
Total pretax loss |  | $ | (181,168 | ) |  | $ | (76,368 | ) |  | $ | (311,184 | )
Equity in income (loss) of unconsolidated joint ventures: |  |  |  |  |  |  |  |  |  |  |  |
West Coast |  | $ | 68 |  |  | $ | 1,476 |  |  | $ | (7,761 | )
Southwest |  |  | (55,902 | ) |  |  | (8,631 | ) |  |  | (15,509 | )
Central |  |  | — |  |  |  | — |  |  |  | 506 |
Southeast |  |  | (5 | ) |  |  | 898 |  |  |  | (26,851 | )
Total |  | $ | (55,839 | ) |  | $ | (6,257 | ) |  | $ | (49,615 | )
Inventory impairments: |  |  |  |  |  |  |  |  |  |  |  |
West Coast |  | $ | 2,598 |  |  | $ | 3,828 |  |  | $ | 44,895 |
Southwest |  |  | 18,715 |  |  |  | 962 |  |  |  | 28,833 |
Central |  |  | 51 |  |  |  | 348 |  |  |  | 23,891 |
Southeast |  |  | 1,366 |  |  |  | 4,677 |  |  |  | 23,229 |
Total |  | $ | 22,730 |  |  | $ | 9,815 |  |  | $ | 120,848 |
Land option contract abandonments: |  |  |  |  |  |  |  |  |  |  |  |
West Coast |  | $ | 704 |  |  | $ | 797 |  |  | $ | 32,679 |
Southwest |  |  | 296 |  |  |  | — |  |  |  | — |
Central |  |  | 1,310 |  |  |  | 6,511 |  |  |  | — |
Southeast |  |  | 751 |  |  |  | 2,802 |  |  |  | 14,622 |
Total |  | $ | 3,061 |  |  | $ | 10,110 |  |  | $ | 47,301 |
Joint venture impairments: |  |  |  |  |  |  |  |  |  |  |  |
West Coast |  | $ | — |  |  | $ | — |  |  | $ | 7,190 |
Southwest |  |  | 53,727 |  |  |  | — |  |  |  | 5,426 |
Southeast |  |  | — |  |  |  | — |  |  |  | 25,915 |
Total |  | $ | 53,727 |  |  | $ | — |  |  | $ | 38,531 |
(a) | Corporate and other includes corporate general and administrative expenses.
|  | November 30, |
|  | 2011 |  |  | 2010 |
Assets: |  |  |  |  |  |  |  |
West Coast |  | $ | 995,888 |  |  | $ | 965,323 |
Southwest |  |  | 338,586 |  |  |  | 376,234 |
Central |  |  | 336,553 |  |  |  | 328,938 |
Southeast |  |  | 317,308 |  |  |  | 372,611 |
Corporate and other |  |  | 492,034 |  |  |  | 1,037,200 |
Total homebuilding assets |  |  | 2,480,369 |  |  |  | 3,080,306 |
Financial services |  |  | 32,173 |  |  |  | 29,443 |
Total assets |  | $ | 2,512,542 |  |  | $ | 3,109,749 |
Investments in unconsolidated joint ventures: |  |  |  |  |  |  |  |
West Coast |  | $ | 38,405 |  |  | $ | 37,830 |
Southwest |  |  | 80,194 |  |  |  | 59,191 |
Southeast |  |  | 9,327 |  |  |  | 8,562 |
Total |  | $ | 127,926 |  |  | $ | 105,583 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 + Details
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