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Segment Information | 12 Months Ended
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Nov. 30, 2019
Segment Reporting [Abstract] |
Segment Information | Segment Information An operating segment is defined as a component of an enterprise for which separate financial information is available and for which segment results are evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. We have identified each of our homebuilding divisions as an operating segment. Our homebuilding operating segments have been aggregated into four homebuilding reporting segments 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 also have one financial services reporting segment. Management evaluates segment performance primarily based on segment pretax results. As of November 30, 2019, our homebuilding reporting segments conducted ongoing operations in the following states: West Coast: California and Washington 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, first 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. In 2018, we expanded into the Seattle, Washington market. 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 Southwest, Central and Southeast homebuilding reporting segments. In 2019, we also expanded our title services business to include Arizona, Colorado and Nevada. Our financial services segment earns revenues primarily from insurance commissions and from the provision of title services. In 2016, we and Stearns formed KBHS, an unconsolidated mortgage banking joint venture, to offer mortgage banking services, including mortgage loan originations, to our homebuyers. We and Stearns each have a 50.0% ownership interest, with Stearns providing management oversight of KBHS’ operations. KBHS was operational in all of our served markets as of June 2017. Our homebuyers may select any lender of their choice to obtain mortgage financing for the purchase of their home. The 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 reporting 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 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 our homebuilding reporting segments (in thousands):
| Years Ended November 30,
| 2019 |  | 2018 |  | 2017
Revenues: |  |  |  |  |
West Coast | $ | 1,912,146 |  |  | $ | 2,085,328 |  |  | $ | 2,186,411 |
Southwest | 764,816 |  |  | 707,075 |  |  | 533,052 |
Central | 1,267,892 |  |  | 1,239,305 |  |  | 1,188,839 |
Southeast | 592,804 |  |  | 502,087 |  |  | 447,963 |
Total | $ | 4,537,658 |  |  | $ | 4,533,795 |  |  | $ | 4,356,265 |
Pretax income (loss): |  |  |  |  |
West Coast | $ | 178,078 |  |  | $ | 240,337 |  |  | $ | 217,649 |
Southwest | 111,016 |  |  | 91,017 |  |  | 45,540 |
Central | 126,304 |  |  | 117,609 |  |  | 116,098 |
Southeast | 18,550 |  |  | 7,624 |  |  | (509 | )
Corporate and other | (108,759 | ) |  | (105,286 | ) |  | (101,851 | )
Total | $ | 325,189 |  |  | $ | 351,301 |  |  | $ | 276,927 |
Equity in income (loss) of unconsolidated joint ventures: |  |  |  |  |
West Coast | $ | (851 | ) |  | $ | (966 | ) |  | $ | (1,770 | )
Southwest | (697 | ) |  | 3,033 |  |  | 362 |
Central | — |  |  | — |  |  | — |
Southeast | (1 | ) |  | (1 | ) |  | (1 | )
Total | $ | (1,549 | ) |  | $ | 2,066 |  |  | $ | (1,409 | )
Inventory impairment and land option contract abandonment charges: |  |  |  |  |
West Coast | $ | 15,567 |  |  | $ | 20,381 |  |  | $ | 16,707 |
Southwest | 408 |  |  | 432 |  |  | 3,445 |
Central | 848 |  |  | 2,558 |  |  | 846 |
Southeast | 468 |  |  | 5,623 |  |  | 4,234 |
Total | $ | 17,291 |  |  | $ | 28,994 |  |  | $ | 25,232 |
| November 30,
| 2019 |  | 2018
Inventories: |  |  |
West Coast | $ | 1,795,088 |  |  | $ | 1,727,993 |
Southwest | 629,811 |  |  | 598,374 |
Central | 889,179 |  |  | 865,184 |
Southeast | 390,524 |  |  | 391,288 |
Total | $ | 3,704,602 |  |  | $ | 3,582,839 |
Investments in unconsolidated joint ventures: |  |  |
West Coast | $ | 51,740 |  |  | $ | 56,128 |
Southwest | 2,792 |  |  | 3,327 |
Central | — |  |  | — |
Southeast | 2,506 |  |  | 2,505 |
Total | $ | 57,038 |  |  | $ | 61,960 |
Assets: |  |  |
West Coast | $ | 1,925,192 |  |  | $ | 1,880,516 |
Southwest | 674,310 |  |  | 631,509 |
Central | 1,035,563 |  |  | 1,017,490 |
Southeast | 441,451 |  |  | 463,224 |
Corporate and other | 900,570 |  |  | 1,068,452 |
Total | $ | 4,977,086 |  |  | $ | 5,061,191 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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