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Segment Information | 6 Months Ended
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May 31, 2012
Segment Information and Financial Services [Abstract] |
Segment Information |
3. | Segment Information
As of May 31, 2012, 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 May 31, 2012, 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 in the same markets as the Company’s homebuilding reporting segments. In addition, since the third quarter of 2011, this segment has earned revenues pursuant to the terms of a marketing services agreement with a preferred mortgage lender that offers mortgage banking services, including residential consumer mortgage loan originations, to the Company’s homebuyers who elect to use the lender. The Company’s homebuyers are under no obligation to use the Company’s preferred mortgage lender and may select any lender of their choice to obtain mortgage financing for the purchase of a home. The Company makes available to its homebuyers marketing materials and other information regarding its preferred mortgage lender’s financing options and mortgage loan products, and is compensated solely for the fair market value of these services. Prior to late June 2011, this segment provided mortgage banking services to the Company’s homebuyers indirectly through KBA Mortgage, LLC (“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% interest in the joint venture. The Company’s reporting segments follow the same accounting policies used for the Company’s consolidated financial statements. 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):
|  | Six Months Ended May 31, |  |  | Three Months Ended May 31, |
|  | 2012 |  |  | 2011 |  |  | 2012 |  |  | 2011 |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
West Coast |  | $ | 237,884 |  |  | $ | 178,914 |  |  | $ | 132,651 |  |  | $ | 107,143 |
Southwest |  |  | 59,493 |  |  |  | 51,932 |  |  |  | 27,909 |  |  |  | 28,632 |
Central |  |  | 168,030 |  |  |  | 144,790 |  |  |  | 87,756 |  |  |  | 84,201 |
Southeast |  |  | 87,093 |  |  |  | 89,648 |  |  |  | 52,289 |  |  |  | 50,007 |
Total homebuilding revenues |  |  | 552,500 |  |  |  | 465,284 |  |  |  | 300,605 |  |  |  | 269,983 |
Financial services |  |  | 4,910 |  |  |  | 3,394 |  |  |  | 2,247 |  |  |  | 1,755 |
Total |  | $ | 557,410 |  |  | $ | 468,678 |  |  | $ | 302,852 |  |  | $ | 271,738 |
Pretax income (loss): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
West Coast |  | $ | (33,454 | ) |  | $ | 6,591 |  |  | $ | (14,694 | ) |  | $ | (2,274 | )
Southwest |  |  | (7,182 | ) |  |  | (116,821 | ) |  |  | (2,139 | ) |  |  | (36,492 | )
Central |  |  | (4,138 | ) |  |  | (10,202 | ) |  |  | (631 | ) |  |  | (3,493 | )
Southeast |  |  | 320 |  |  |  | (23,021 | ) |  |  | 4,579 |  |  |  | (8,993 | )
Corporate and other (a) |  |  | (33,055 | ) |  |  | (41,731 | ) |  |  | (17,252 | ) |  |  | (19,181 | )
Total homebuilding loss |  |  | (77,509 | ) |  |  | (185,184 | ) |  |  | (30,137 | ) |  |  | (70,433 | )
Financial services |  |  | 3,471 |  |  |  | 2,254 |  |  |  | 1,501 |  |  |  | 1,629 |
Total |  | $ | (74,038 | ) |  | $ | (182,930 | ) |  | $ | (28,636 | ) |  | $ | (68,804 | )
Equity in loss of unconsolidated joint ventures: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
West Coast |  | $ | (77 | ) |  | $ | (17 | ) |  | $ | (32 | ) |  | $ | (80 | )
Southwest |  |  | (217 | ) |  |  | (55,902 | ) |  |  | (209 | ) |  |  | (2 | )
Central |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Southeast |  |  | (21 | ) |  |  | (10 | ) |  |  | (2 | ) |  |  | (10 | )
Total |  | $ | (315 | ) |  | $ | (55,929 | ) |  | $ | (243 | ) |  | $ | (92 | )
Inventory impairments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
West Coast |  | $ | 13,107 |  |  | $ | 1,351 |  |  | $ | 6,535 |  |  | $ | 1,351 |
Southwest |  |  | 2,135 |  |  |  | 18,715 |  |  |  | 2,135 |  |  |  | 18,324 |
Central |  |  | 1,267 |  |  |  | 51 |  |  |  | 1,267 |  |  |  | — |
Southeast |  |  | — |  |  |  | 969 |  |  |  | — |  |  |  | 419 |
Total |  | $ | 16,509 |  |  | $ | 21,086 |  |  | $ | 9,937 |  |  | $ | 20,094 |
Land option contract abandonments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
West Coast |  | $ | — |  |  | $ | 112 |  |  | $ | — |  |  | $ | — |
Southwest |  |  | — |  |  |  | 296 |  |  |  | — |  |  |  | 296 |
Central |  |  | — |  |  |  | 240 |  |  |  | — |  |  |  | — |
Southeast |  |  | — |  |  |  | 611 |  |  |  | — |  |  |  | 201 |
Total |  | $ | — |  |  | $ | 1,259 |  |  | $ | — |  |  | $ | 497 |
(a) | Corporate and other includes corporate general and administrative expenses.
|  | Six Months Ended May 31, |  |  | Three Months Ended May 31, |
|  | 2012 |  |  | 2011 |  |  | 2012 |  |  | 2011 |
Joint venture impairments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
West Coast |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Southwest |  |  | — |  |  |  | 53,727 |  |  |  | — |  |  |  | — |
Central |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Southeast |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  | $ | — |  |  | $ | 53,727 |  |  | $ | — |  |  | $ | — |
|  | May 31, 2012 |  |  | November 30, 2011 |
Assets: |  |  |  |  |  |  |  |
West Coast |  | $ | 968,793 |  |  | $ | 995,888 |
Southwest |  |  | 311,475 |  |  |  | 338,586 |
Central |  |  | 339,314 |  |  |  | 336,553 |
Southeast |  |  | 333,548 |  |  |  | 317,308 |
Corporate and other |  |  | 432,583 |  |  |  | 492,034 |
Total homebuilding assets |  |  | 2,385,713 |  |  |  | 2,480,369 |
Financial services |  |  | 8,292 |  |  |  | 32,173 |
Total assets |  | $ | 2,394,005 |  |  | $ | 2,512,542 |
Investments in unconsolidated joint ventures: |  |  |  |  |  |  |  |
West Coast |  | $ | 38,328 |  |  | $ | 38,405 |
Southwest |  |  | 73,439 |  |  |  | 80,194 |
Central |  |  | — |  |  |  | — |
Southeast |  |  | 9,641 |  |  |  | 9,327 |
Total |  | $ | 121,408 |  |  | $ | 127,926 |

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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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