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Segment Information
 6 Months Ended
May 31, 2016
Segment Reporting [Abstract]  
Segment Information
Segment Information
As of May 31, 2016, we had identified five operating reporting segments, comprised of four homebuilding reporting segments and one financial services reporting segment. As of May 31, 2016, our homebuilding reporting segments conducted operations in the following states:
West Coast: California
Southwest: Arizona and Nevada
Central: Colorado 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 operations generate most of their revenues from the delivery of completed homes to homebuyers. They also earn revenues from the sale of land.
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.
In the second quarter of 2016, we announced that we had begun a transition out of the Metro Washington, D.C. market that is expected to be completed over the next 12 months. Our operations in the Metro Washington, D.C. market consisted of communities in Maryland and Virginia, which are included in our Southeast homebuilding reporting segment, and represented 2% of our consolidated homebuilding revenues for the three months ended May 31, 2016. We plan to continue constructing and delivering homes in our active communities remaining in this market. We also have other land interests in this market that we intend to build out or sell. As described in Note 6 – Inventory Impairments and Land Option Contract Abandonments, we recorded inventory impairment and land option contract abandonment charges related to this transition during the three months ended May 31, 2016.
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 located within our Central and Southeast homebuilding reporting segments. This segment earns revenues primarily from insurance commissions and from the provision of title services. We currently offer mortgage banking services, including residential mortgage loan (“mortgage loan”) originations, to our homebuyers indirectly through Home Community Mortgage, LLC (“HCM”), a joint venture of a subsidiary of ours and a subsidiary of Nationstar Mortgage LLC (“Nationstar”). Through these respective subsidiaries, we have a 49.9% ownership interest and Nationstar has a 50.1% ownership interest in HCM, with Nationstar providing management oversight of HCM’s operations. Our homebuyers may select any lender of their choice to obtain mortgage financing for the purchase of their home.
Corporate and other is a non-operating segment that develops and oversees the implementation of company-wide strategic initiatives and provides support to our reporting segments by centralizing certain administrative functions. 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 our 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):
 
Six Months Ended May 31,
 
Three Months Ended May 31,
 
2016
 
2015
 
2016
 
2015
Revenues:
 
 
 
 
 
 
 
West Coast
$
615,119

 
$
554,543

 
$
331,273

 
$
277,288

Southwest
212,003

 
145,318

 
111,671

 
80,181

Central
442,393

 
335,496

 
240,232

 
176,348

Southeast
214,689

 
163,335

 
125,286

 
86,987

Total homebuilding revenues
1,484,204

 
1,198,692

 
808,462

 
620,804

Financial services
5,217

 
4,398

 
2,588

 
2,165

Total
$
1,489,421

 
$
1,203,090

 
$
811,050

 
$
622,969

 
 
 
 
 
 
 
 
Pretax income (loss):
 
 
 
 
 
 
 
West Coast
$
41,735

 
$
40,408

 
$
19,619

 
$
18,554

Southwest
22,637

 
8,688

 
10,134

 
5,245

Central
33,914

 
23,351

 
23,335

 
13,125

Southeast
(14,154
)
 
(16,214
)
 
(6,590
)
 
(6,601
)
Corporate and other
(46,011
)
 
(37,932
)
 
(23,221
)
 
(20,838
)
Total homebuilding pretax income
38,121

 
18,301

 
23,277

 
9,485

Financial services
2,703

 
4,871

 
1,520

 
3,188

Total
$
40,824

 
$
23,172

 
$
24,797

 
$
12,673


Inventory impairment charges:
 
 
 
 
 
 
 
West Coast
$
4,574

 
$
—

 
$
4,574

 
$
—

Southwest
—

 
—

 
—

 
—

Central
787

 
—

 
—

 
—

Southeast
5,915

 
—

 
5,356

 
—

Total
$
11,276

 
$
—

 
$
9,930

 
$
—

 
 
Six Months Ended May 31,
 
Three Months Ended May 31,
 
2016
 
2015
 
2016
 
2015
Land option contract abandonments:
 
 
 
 
 
 
 
West Coast
$
421

 
$
—

 
$
261

 
$
—

Southwest
111

 
—

 
111

 
—

Central
460

 
—

 
—

 
—

Southeast
1,438

 
984

 
1,438

 
536

Total
$
2,430

 
$
984

 
$
1,810

 
$
536


 
May 31,
2016
 
November 30,
2015
Inventories:
 
 
 
Homes under construction
 
 
 
West Coast
$
705,598

 
$
535,795

Southwest
114,147

 
112,032

Central
295,563

 
263,345

Southeast
131,915

 
120,184

Subtotal
1,247,223

 
1,031,356

 
 
 
 
Land under development
 
 
 
West Coast
807,694

 
788,607

Southwest
329,661

 
317,331

Central
458,954

 
421,783

Southeast
219,352

 
238,324

Subtotal
1,815,661

 
1,766,045

 
 
 
 
Land held for future development
 
 
 
West Coast
256,816

 
277,954

Southwest
90,540

 
104,677

Central
17,949

 
22,082

Southeast
96,900

 
111,633

Subtotal
462,205

 
516,346

Total
$
3,525,089

 
$
3,313,747

 
 
 
 
Assets:
 
 
 
West Coast
$
1,881,235

 
$
1,740,299

Southwest
575,881

 
582,030

Central
886,688

 
829,811

Southeast
484,325

 
507,844

Corporate and other
1,074,791

 
1,341,359

Total homebuilding assets
4,902,920

 
5,001,343

Financial services
12,923

 
14,028

Total
$
4,915,843

 
$
5,015,371