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Segment Information | 12 Months Ended
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Nov. 30, 2016
Segment Reporting [Abstract] |
Segment Information | Segment Information We have identified five operating reporting segments, comprised of four homebuilding reporting segments and one financial services reporting segment. As of November 30, 2016, our homebuilding reporting segments conducted ongoing operations in the following states: West Coast: California Southwest: Arizona and Nevada Central: Colorado and Texas Southeast: Florida and North Carolina 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. Management evaluates segment performance primarily based on segment pretax results. In the 2016 second quarter, we announced that we had begun a transition out of the Metro Washington, D.C. market that is expected to be completed in 2017. 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 year ended November 30, 2016. We are constructing and delivering homes in our remaining communities in this market. We also have other land interests in this market that we intend to build out or sell. As described in Note 7 – Inventory Impairments and Land Option Contract Abandonments, we recorded inventory impairment and land option contract abandonment charges related to this transition during the year ended November 30, 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 the provision of title services. Prior to July 2014, this segment also earned revenues pursuant to the terms of a marketing services agreement with Nationstar, under which Nationstar was our preferred mortgage lender and offered mortgage banking services, including mortgage loan originations, to our homebuyers who elected to use the lender. From July 2014 until October 2016, we provided mortgage banking services, including mortgage loan originations, to our homebuyers indirectly through HCM, a joint venture of a subsidiary of ours and a subsidiary of 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. In the 2016 fourth quarter, we and Nationstar began the process to wind down HCM and transfer HCM’s operations and certain assets to Stearns Lending. Our homebuyers may select any lender of their choice to obtain mortgage financing for the purchase of their home. In the 2016 fourth quarter, a subsidiary of ours and a subsidiary of Stearns Lending entered into an agreement to form a mortgage banking joint venture in which we each have a 50.0% ownership interest. The unconsolidated joint venture, which had no impact on our consolidated statement of operations for the year ended November 30, 2016, is expected to begin offering services, including mortgage loan originations, to our homebuyers in most of our served markets by the end of our 2017 second quarter, subject to obtaining all requisite regulatory approvals and clearances. Our financial services reporting segment is separately reported in our consolidated financial statements. 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 management is responsible for, among other things, evaluating and selecting the geographic markets in which we operate, consistent with our overall business strategy; allocating capital resources to markets for land acquisition and development activities; making major personnel decisions related to employee compensation and benefits; and monitoring the financial and operational performance of our divisions. 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 as described in Note 1 – Summary of Significant Accounting Policies. 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 homebuilding reporting segments (in thousands):
| Years Ended November 30,
| 2016 |  | 2015 |  | 2014
Revenues: |  |  |  |  |
West Coast | $ | 1,638,078 |  |  | $ | 1,402,264 |  |  | $ | 1,089,857 |
Southwest | 447,473 |  |  | 398,242 |  |  | 199,504 |
Central | 1,018,535 |  |  | 809,738 |  |  | 698,429 |
Southeast | 478,857 |  |  | 410,743 |  |  | 401,853 |
Total | $ | 3,582,943 |  |  | $ | 3,020,987 |  |  | $ | 2,389,643 |
Pretax income (loss): |  |  |  |  |
West Coast | $ | 148,014 |  |  | $ | 127,946 |  |  | $ | 116,325 |
Southwest | 38,807 |  |  | 31,718 |  |  | 6,015 |
Central | 85,924 |  |  | 70,959 |  |  | 47,214 |
Southeast | (29,385 | ) |  | (22,758 | ) |  | (11,158 | )
Corporate and other | (98,511 | ) |  | (92,446 | ) |  | (71,993 | )
Total | $ | 144,849 |  |  | $ | 115,419 |  |  | $ | 86,403 |
Equity in income (loss) of unconsolidated joint ventures: |  |  |  |  |
West Coast | $ | (1,561 | ) |  | $ | (1,106 | ) |  | $ | (374 | )
Southwest | (618 | ) |  | (696 | ) |  | (2,176 | )
Central | — |  |  | — |  |  | — |
Southeast | (2 | ) |  | (2 | ) |  | 3,291 |
Total | $ | (2,181 | ) |  | $ | (1,804 | ) |  | $ | 741 |
Inventory impairment charges: |  |  |  |  |
West Coast | $ | 8,209 |  |  | $ | 645 |  |  | $ | 27,285 |
Southwest | 3,191 |  |  | 3,253 |  |  | 6,392 |
Central | 10,633 |  |  | — |  |  | — |
Southeast | 27,547 |  |  | 4,132 |  |  | 3,951 |
Total | $ | 49,580 |  |  | $ | 8,030 |  |  | $ | 37,628 |
| Years Ended November 30,
| 2016 |  | 2015 |  | 2014
Land option contract abandonments: |  |  |  |  |
West Coast | $ | 769 |  |  | $ | 352 |  |  | $ | 554 |
Southwest | 253 |  |  | — |  |  | — |
Central | 460 |  |  | 225 |  |  | 995 |
Southeast | 1,750 |  |  | 984 |  |  | 254 |
Total | $ | 3,232 |  |  | $ | 1,561 |  |  | $ | 1,803 |
| November 30,
| 2016 |  | 2015
Inventories: |  |  |
Homes under construction |  |  |
West Coast | $ | 695,742 |  |  | $ | 535,795 |
Southwest | 130,886 |  |  | 112,032 |
Central | 297,290 |  |  | 263,345 |
Southeast | 122,020 |  |  | 120,184 |
Subtotal | 1,245,938 |  |  | 1,031,356 |
Land under development |  |  |
West Coast | 820,088 |  |  | 788,607 |
Southwest | 268,507 |  |  | 317,331 |
Central | 456,508 |  |  | 421,783 |
Southeast | 182,554 |  |  | 238,324 |
Subtotal | 1,727,657 |  |  | 1,766,045 |
Land held for future development or sale |  |  |
West Coast | 210,910 |  |  | 277,954 |
Southwest | 122,927 |  |  | 104,677 |
Central | 15,439 |  |  | 22,082 |
Southeast | 80,357 |  |  | 111,633 |
Subtotal | 429,633 |  |  | 516,346 |
Total | $ | 3,403,228 |  |  | $ | 3,313,747 |
Investments in unconsolidated joint ventures: |  |  |
West Coast | $ | 51,612 |  |  | $ | 54,360 |
Southwest | 9,905 |  |  | 14,697 |
Central | — |  |  | — |
Southeast | 2,499 |  |  | 2,501 |
Total | $ | 64,016 |  |  | $ | 71,558 |
Assets: |  |  |
West Coast | $ | 1,847,279 |  |  | $ | 1,740,299 |
Southwest | 564,636 |  |  | 582,030 |
Central | 909,497 |  |  | 829,811 |
Southeast | 414,730 |  |  | 507,844 |
Corporate and other | 1,384,983 |  |  | 1,412,893 |
Total | $ | 5,121,125 |  |  | $ | 5,072,877 |

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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 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: 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=68060357&loc=d3e9038-108599 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=68060357&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 12 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599 Reference 5: 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=68060357&loc=d3e8380-108599 Reference 6: 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=68060357&loc=d3e8933-108599 Reference 7: 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=68060357&loc=d3e8844-108599 Reference 8: 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=68060357&loc=d3e8984-108599 Reference 9: 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=68060357&loc=d3e9031-108599 Reference 10: 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=68060357&loc=d3e9054-108599 Reference 11: 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=68060357&loc=d3e8538-108599 Reference 12: 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=68060357&loc=d3e8864-108599 Reference 13: 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=68060357&loc=d3e8924-108599 Reference 14: 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=68060357&loc=d3e8906-108599 + Details
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