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Financial Services (Tables) | 9 Months Ended
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Aug. 31, 2014
Segment Reporting Information [Line Items] |
Financial Services Income (Loss) |
3. | Financial Services
The following tables present financial information relating to our financial services reporting segment (in thousands):
|  | Nine Months Ended August 31, |  | Three Months Ended August 31,
|  | 2014 |  | 2013 |  | 2014 |  | 2013
Revenues |  |  |  |  |  |  |  |
Insurance commissions |  | $ | 4,364 |  |  | $ | 4,677 |  |  | $ | 1,832 |  |  | $ | 1,887 |
Title services |  | 2,503 |  |  | 2,165 |  |  | 904 |  |  | 836 |
Marketing services fees |  | 1,147 |  |  | 1,350 |  |  | 247 |  |  | 450 |
Interest income |  | — |  |  | 3 |  |  | — |  |  | 1 |
Total |  | 8,014 |  |  | 8,195 |  |  | 2,983 |  |  | 3,174 |
Expenses |  |  |  |  |  |  |  |
General and administrative |  | (2,563 | ) |  | (2,235 | ) |  | (859 | ) |  | (764 | )
Operating income |  | 5,451 |  |  | 5,960 |  |  | 2,124 |  |  | 2,410 |
Equity in income (loss) of unconsolidated joint ventures (a) |  | (289 | ) |  | 1,081 |  |  | (277 | ) |  | (6 | )
Pretax income |  | $ | 5,162 |  |  | $ | 7,041 |  |  | $ | 1,847 |  |  | $ | 2,404 |
(a) | Equity in loss of unconsolidated joint ventures for the three months and nine months ended August 31, 2014 primarily related to HCM. Equity in income of unconsolidated joint ventures for the nine months ended August 31, 2013 related to the wind down of KBA Mortgage, LLC (“KBA Mortgage”), our unconsolidated mortgage banking joint venture with a subsidiary of Bank of America, N.A., which ceased offering mortgage banking services in 2011.
Segment Reporting Disclosure [Text Block] | Segment Information As of August 31, 2014, we had identified five operating reporting segments, comprised of four homebuilding reporting segments and one financial services reporting segment, within our consolidated operations in accordance with Accounting Standards Codification Topic No. 280, “Segment Reporting.” As of August 31, 2014, our homebuilding reporting segments conducted ongoing operations in the following states: West Coast: California Southwest: Arizona and Nevada Central: Colorado, New Mexico and Texas Southeast: Florida, Maryland, North Carolina and Virginia 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, move-up and active adult homebuyers. Our 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. We evaluate segment performance primarily based on segment pretax results. Our financial services reporting segment offers property and casualty insurance and, in certain instances, earthquake, flood and personal property insurance to our homebuyers in the same markets as our homebuilding reporting segments, and provides title services in the majority of our markets within our Central and Southeast homebuilding reporting segments. Prior to July 21, 2014, this segment also earned revenues pursuant to the terms of a marketing services agreement with Nationstar Mortgage LLC (“Nationstar”), which was our preferred mortgage lender that offered mortgage banking services, including residential consumer mortgage loan (“mortgage loan”) originations, to our homebuyers who elected to use the lender. Our homebuyers may select any lender of their choice to obtain mortgage financing for the purchase of their home. In 2013, we entered into an agreement with Nationstar to form Home Community Mortgage, LLC (“HCM”). We have a 49.9% ownership interest and Nationstar has a 50.1% ownership interest in HCM. On July 21, 2014, HCM began offering an array of mortgage banking services, including mortgage loan originations, to our homebuyers, with Nationstar providing management oversight of HCM’s operations. Nationstar continued as our preferred mortgage lender until HCM’s operational launch. HCM is accounted for as an unconsolidated joint venture within our financial services reporting segment. Corporate and other is a non-operating segment that develops and implements company-wide strategic initiatives and provides support to our homebuilding reporting segments by centralizing certain administrative functions, such as promotional marketing, legal, purchasing administration, architecture, accounting, treasury, insurance and risk management, information technology and human resources, to benefit from economies of scale. 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 the homebuilding reporting segments. Our segments follow the same accounting policies used for our consolidated financial statements. The 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 our segments (in thousands):
|  | Nine Months Ended August 31, |  | Three Months Ended August 31,
|  | 2014 |  | 2013 |  | 2014 |  | 2013
Revenues: |  |  |  |  |  |  |  |
West Coast |  | $ | 707,532 |  |  | $ | 746,232 |  |  | $ | 265,491 |  |  | $ | 266,638 |
Southwest |  | 144,597 |  |  | 126,515 |  |  | 50,101 |  |  | 47,437 |
Central |  | 477,518 |  |  | 381,342 |  |  | 179,972 |  |  | 154,545 |
Southeast |  | 267,247 |  |  | 216,315 |  |  | 90,667 |  |  | 77,180 |
Total homebuilding revenues |  | 1,596,894 |  |  | 1,470,404 |  |  | 586,231 |  |  | 545,800 |
Financial services |  | 8,014 |  |  | 8,195 |  |  | 2,983 |  |  | 3,174 |
Total |  | $ | 1,604,908 |  |  | $ | 1,478,599 |  |  | $ | 589,214 |  |  | $ | 548,974 |
Pretax income (loss): |  |  |  |  |  |  |  |
West Coast |  | $ | 93,599 |  |  | $ | 75,469 |  |  | $ | 39,270 |  |  | $ | 37,607 |
Southwest |  | 7,599 |  |  | 2,026 |  |  | 2,543 |  |  | 1,185 |
Central |  | 24,806 |  |  | 11,569 |  |  | 11,514 |  |  | 9,085 |
Southeast |  | (9,881 | ) |  | (35,012 | ) |  | (7,965 | ) |  | (9,920 | )
Corporate and other |  | (54,937 | ) |  | (51,046 | ) |  | (18,548 | ) |  | (13,783 | )
Total homebuilding pretax income |  | 61,186 |  |  | 3,006 |  |  | 26,814 |  |  | 24,174 |
Financial services |  | 5,162 |  |  | 7,041 |  |  | 1,847 |  |  | 2,404 |
Total |  | $ | 66,348 |  |  | $ | 10,047 |  |  | $ | 28,661 |  |  | $ | 26,578 |
Equity in income (loss) of unconsolidated joint ventures: |  |  |  |  |  |  |  |
West Coast |  | $ | (146 | ) |  | $ | (109 | ) |  | $ | (88 | ) |  | $ | (36 | )
Southwest |  | (1,984 | ) |  | (1,919 | ) |  | (663 | ) |  | (755 | )
Central |  | — |  |  | — |  |  | — |  |  | — |
Southeast |  | 3,291 |  |  | 370 |  |  | — |  |  | 135 |
Total |  | $ | 1,161 |  |  | $ | (1,658 | ) |  | $ | (751 | ) |  | $ | (656 | )
Inventory impairment charges: |  |  |  |  |  |  |  |
West Coast |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Southwest |  | — |  |  | — |  |  | — |  |  | — |
Central |  | — |  |  | — |  |  | — |  |  | — |
Southeast |  | 3,408 |  |  | — |  |  | 3,408 |  |  | — |
Total |  | $ | 3,408 |  |  | $ | — |  |  | $ | 3,408 |  |  | $ | — |
|  | Nine Months Ended August 31, |  | Three Months Ended August 31,
|  | 2014 |  | 2013 |  | 2014 |  | 2013
Land option contract abandonments: |  |  |  |  |  |  |  |
West Coast |  | $ | 554 |  |  | $ | 284 |  |  | $ | 451 |  |  | $ | — |
Southwest |  | — |  |  | — |  |  | — |  |  | — |
Central |  | 995 |  |  | — |  |  | 562 |  |  | — |
Southeast |  | 254 |  |  | — |  |  | — |  |  | — |
Total |  | $ | 1,803 |  |  | $ | 284 |  |  | $ | 1,013 |  |  | $ | — |
| August 31, 2014 |  | November 30, 2013
Inventories: |  |  |
Homes under construction |  |  |
West Coast | $ | 564,945 |  |  | $ | 275,516 |
Southwest | 55,003 |  |  | 39,661 |
Central | 213,011 |  |  | 157,572 |
Southeast | 149,646 |  |  | 113,690 |
Subtotal | 982,605 |  |  | 586,439 |
Land under development |  |  |
West Coast | 744,570 |  |  | 560,032 |
Southwest | 332,056 |  |  | 106,654 |
Central | 340,340 |  |  | 238,311 |
Southeast | 224,035 |  |  | 161,919 |
Subtotal | 1,641,001 |  |  | 1,066,916 |
Land held for future development |  |  |
West Coast | 332,000 |  |  | 308,636 |
Southwest | 129,394 |  |  | 157,924 |
Central | 24,357 |  |  | 15,193 |
Southeast | 130,963 |  |  | 163,469 |
Subtotal | 616,714 |  |  | 645,222 |
Total | $ | 3,240,320 |  |  | $ | 2,298,577 |
| August 31, 2014 |  | November 30, 2013
Investments in unconsolidated joint ventures: |  |  |
West Coast | $ | 54,673 |  |  | $ | 40,246 |
Southwest | 16,433 |  |  | 80,877 |
Central | — |  |  | — |
Southeast | 2,501 |  |  | 9,069 |
Total | $ | 73,607 |  |  | $ | 130,192 |
Assets: |  |  |
West Coast | $ | 1,755,721 |  |  | $ | 1,230,761 |
Southwest | 554,082 |  |  | 402,443 |
Central | 656,333 |  |  | 465,547 |
Southeast | 536,251 |  |  | 456,965 |
Corporate and other | 376,641 |  |  | 627,879 |
Total homebuilding assets | 3,879,028 |  |  | 3,183,595 |
Financial services | 8,363 |  |  | 10,040 |
Total | $ | 3,887,391 |  |  | $ | 3,193,635 |
Financial services [Member] |
Segment Reporting Information [Line Items] |
Schedule of Financial Services Assets and Liabilities |
| August 31, 2014 |  | November 30, 2013
Assets |  |  |
Cash and cash equivalents | $ | 1,950 |  |  | $ | 2,428 |
Receivables | 956 |  |  | 2,084 |
Investments in unconsolidated joint ventures | 5,180 |  |  | 5,490 |
Other assets | 277 |  |  | 38 |
Total assets | $ | 8,363 |  |  | $ | 10,040 |
Liabilities |  |  |
Accounts payable and accrued expenses | $ | 1,802 |  |  | $ | 2,593 |
Total liabilities | $ | 1,802 |  |  | $ | 2,593 |

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