XML 57 R7.htm IDEA: XBRL DOCUMENT v2.4.0.6
Segment Information
 6 Months Ended
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