XML 55 R7.htm IDEA: XBRL DOCUMENT v2.4.0.6
Segment Information
 9 Months Ended
Aug. 31, 2012
Segment Reporting [Abstract]  
Segment Information
Segment Information
As of August 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 August 31, 2012, the Company’s homebuilding reporting segments conducted ongoing operations in the following states:
West Coast: California
Southwest: Arizona, Nevada and New Mexico
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 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 the Company’s reporting segments (in thousands):
 
Nine Months Ended August 31,
 
Three Months Ended August 31,
 
2012
 
2011
 
2012
 
2011
Revenues:
 
 
 
 
 
 
 
West Coast
$
445,123

 
$
354,348

 
$
207,239

 
$
175,434

Southwest
95,127

 
91,411

 
35,634

 
39,479

Central
285,129

 
247,492

 
117,099

 
102,702

Southeast
148,676

 
136,565

 
61,583

 
46,917

Total homebuilding revenues
974,055

 
829,816

 
421,555

 
364,532

Financial services
7,859

 
6,178

 
2,949

 
2,784

Total
$
981,914

 
$
835,994

 
$
424,504

 
$
367,316

 
 
 
 
 
 
 
 
Pretax income (loss):
 
 
 
 
 
 
 
West Coast
$
(29,019
)
 
$
9,927

 
$
4,435

 
$
3,336

Southwest
(10,616
)
 
(113,620
)
 
(3,434
)
 
3,201

Central
(3,152
)
 
(12,389
)
 
986

 
(2,187
)
Southeast
5,494

 
(30,177
)
 
5,174

 
(7,156
)
Corporate and other (a)
(52,014
)
 
(49,641
)
 
(18,959
)
 
(7,910
)
Total homebuilding pretax loss
(89,307
)
 
(195,900
)
 
(11,798
)
 
(10,716
)
Financial services
7,830

 
3,321

 
4,359

 
1,067

Total
$
(81,477
)
 
$
(192,579
)
 
$
(7,439
)
 
$
(9,649
)
 
 
 
 
 
 
 
 
Equity in income (loss) of unconsolidated joint ventures:
 
 
 
 
 
 
 
West Coast
$
(129
)
 
$
50

 
$
(52
)
 
$
67

Southwest
(458
)
 
(55,902
)
 
(241
)
 
—

Central
—

 
—

 
—

 
—

Southeast
550

 
(13
)
 
571

 
(3
)
Total
$
(37
)
 
$
(55,865
)
 
$
278

 
$
64

 
 
 
 
 
 
 
 
Inventory impairments:
 
 
 
 
 
 
 
West Coast
$
14,040

 
$
1,679

 
$
933

 
$
328

Southwest
2,135

 
18,715

 
—

 
—

Central
1,267

 
51

 
—

 
—

Southeast
5,470

 
969

 
5,470

 
—

Total
$
22,912

 
$
21,414

 
$
6,403

 
$
328

 
(a)Corporate and other includes corporate general and administrative expenses.




 
Nine Months Ended August 31,
 
Three Months Ended August 31,
 
2012
 
2011
 
2012
 
2011
Land option contract abandonments:
 
 
 
 
 
 
 
West Coast
$
—

 
$
112

 
$
—

 
$
—

Southwest
—

 
296

 
—

 
—

Central
—

 
1,074

 
—

 
834

Southeast
—

 
611

 
—

 
—

Total
$
—

 
$
2,093

 
$
—

 
$
834

 
 
 
 
 
 
 
 
Joint venture impairments:
 
 
 
 
 
 
 
West Coast
$
—

 
$
—

 
$
—

 
$
—

Southwest
—

 
53,727

 
—

 
—

Central
—

 
—

 
—

 
—

Southeast
—

 
—

 
—

 
—

Total
$
—

 
$
53,727

 
$
—

 
$
—

 
August 31,
2012
 
November 30,
2011
Assets:
 
 
 
West Coast
$
1,016,181

 
$
995,888

Southwest
307,363

 
338,586

Central
351,804

 
336,553

Southeast
336,515

 
317,308

Corporate and other
531,821

 
492,034

Total homebuilding assets
2,543,684

 
2,480,369

Financial services
5,780

 
32,173

Total assets
$
2,549,464

 
$
2,512,542

 
 
 
 
Investments in unconsolidated joint ventures:
 
 
 
West Coast
$
38,418

 
$
38,405

Southwest
74,458

 
80,194

Central
—

 
—

Southeast
9,279

 
9,327

Total
$
122,155

 
$
127,926