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Segment Information
 12 Months Ended
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