Quarterly report pursuant to Section 13 or 15(d)

Operating and Reporting Segments

v2.4.1.9
Operating and Reporting Segments
3 Months Ended
Mar. 31, 2015
Segment Reporting [Abstract]  
OPERATING AND REPORTING SEGMENTS
OPERATING AND REPORTING SEGMENTS    
We operate with two principal business segments: homebuilding and financial services. As defined in ASC 280-10, Segment Reporting, we have nine homebuilding operating segments. The homebuilding segments are engaged in the business of acquiring and developing land, constructing homes, marketing and selling those homes and providing warranty and customer services. We aggregate our homebuilding operating segments into a reporting segment based on similar long-term economic characteristics and geographical proximity. Our current reportable homebuilding segments are as follows:
West:       Arizona, California and Colorado
Central:  Texas
East:       Florida, Georgia, North Carolina, South Carolina and Tennessee
Management’s evaluation of segment performance is based on segment operating income, which we define as homebuilding and land revenues less cost of home construction, commissions and other sales costs, land development and other land sales costs and other costs incurred by or allocated to each segment, including impairments. Each reportable segment follows the same accounting policies described in Note 1, “Organization and Basis of Presentation.” Operating results for each segment may not be indicative of the results for such segment had it been an independent, stand-alone entity for the periods presented.
The following segment information is in thousands: 
 
 
Three Months Ended March 31,
 
 
2015
 
2014
Homebuilding revenue (1):
 
 
 
 
West
 
$
206,878

 
$
192,681

Central
 
154,026

 
119,715

East
 
157,808

 
95,949

Consolidated total
 
518,712

 
408,345

Homebuilding segment operating income:
 
 
 
 
West
 
14,197

 
24,810

Central
 
14,105

 
9,469

East
 
5,619

 
10,664

Total homebuilding segment operating income
 
33,921

 
44,943

Financial services segment profit
 
3,780

 
3,025

Corporate and unallocated costs (2)
 
(9,542
)
 
(5,976
)
Loss from unconsolidated entities, net
 
(123
)
 
(169
)
Interest expense
 
(3,154
)
 
(2,713
)
Other income/(loss), net
 
415

 
648

Net earnings before income taxes
 
$
25,297

 
$
39,758

 




(1)
Homebuilding revenue includes the following land closing revenue, by segment as outlined in the table below.
 
 
Three Months Ended March 31,
 
 
2015
 
2014
Land closing revenue:
 
 
 
 
West
 
$

 
$
1,050

Central
 
1,439

 
1,516

East
 

 

Total
 
$
1,439

 
$
2,566


(2)
Balance consists primarily of corporate costs and numerous shared service functions such as finance and treasury that are not allocated to the homebuilding or financial reporting segments.

 
 
At March 31, 2015
 
 
West
 
Central
 
East
 
Financial Services
 
Corporate and
Unallocated
 
Total
Deposits on real estate under option or contract
 
$
30,680

 
$
31,706

 
$
29,536

 
$

 
$

 
$
91,922

Real estate
 
972,589

 
467,929

 
502,537

 

 

 
1,943,055

Investments in unconsolidated entities
 
205

 
8,541

 

 

 
1,525

 
10,271

Other assets
 
49,177

 
69,472

(1)
70,089

(2)
2,164

 
130,308

(3)
321,210

Total assets
 
$
1,052,651

 
$
577,648

 
$
602,162

 
$
2,164

 
$
131,833

 
$
2,366,458

 
 
 
At December 31, 2014
 
 
West
 
Central
 
East
 
Financial Services
 
Corporate and
Unallocated
 
Total
Deposits on real estate under option or contract
 
$
34,622

 
$
31,317

 
$
29,050

 
$

 
$

 
$
94,989

Real estate
 
943,600

 
446,208

 
487,874

 

 

 
1,877,682

Investments in unconsolidated entities
 
204

 
8,561

 

 

 
2,015

 
10,780

Other assets
 
48,120

 
80,689

(1)
70,036

(2)
958

 
132,884

(3)
332,687

Total assets
 
$
1,026,546

 
$
566,775

 
$
586,960

 
$
958

 
$
134,899

 
$
2,316,138

(1)
Balance consists primarily of development reimbursements from local municipalities and cash.
(2)
Balance consists primarily of goodwill (see Note 9) and cash.
(3)
Balance consists primarily of cash and securities and our deferred tax asset.