Quarterly report pursuant to Section 13 or 15(d)

Operating and Reporting Segments

v3.3.0.814
Operating and Reporting Segments
9 Months Ended
Sep. 30, 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 September 30,
 
Nine Months Ended September 30,
 
2015
 
2014
 
2015
 
2014
Homebuilding revenue (1):
 
 
 
 
 
 
 
West
$
270,202

 
$
234,950

 
$
696,854

 
$
659,596

Central
191,132

 
179,761

 
524,633

 
459,619

East
208,622

 
142,065

 
564,982

 
351,510

Consolidated total
$
669,956

 
$
556,776

 
$
1,786,469

 
$
1,470,725

Homebuilding segment operating income:
 
 
 
 
 
 
 
West
$
24,347

 
$
22,204

 
$
53,800

 
$
74,398

Central
19,524

 
19,323

 
54,682

 
47,512

East
13,849

 
9,295

 
35,427

 
30,539

Total homebuilding segment operating income
57,720

 
50,822

 
143,909

 
152,449

Financial services segment profit
5,601

 
4,294

 
13,517

 
10,936

Corporate and unallocated costs (2)
(8,347
)
 
(9,490
)
 
(28,225
)
 
(22,823
)
Loss from unconsolidated entities, net
(123
)
 
(134
)
 
(415
)
 
(364
)
Interest expense
(4,187
)
 
(460
)
 
(11,962
)
 
(4,569
)
Other (expense)/income, net
(3,996
)
 
1,998

 
(3,445
)
 
6,395

Net earnings before income taxes
$
46,668

 
$
47,030

 
$
113,379

 
$
142,024

 

(1)
Homebuilding revenue includes the following land closing revenue, by segment, as outlined in the table below.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2015
 
2014
 
2015
 
2014
Land closing revenue:
 
 
 
 
 
 
 
West
$

 
$
10,105

 
$

 
$
11,155

Central
7,677

 
1,147

 
14,194

 
3,244

East
395

 

 
2,091

 
2,223

Total
$
8,072

 
$
11,252

 
$
16,285

 
$
16,622


(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 September 30, 2015
 
 
West
 
Central
 
East
 
Financial Services
 
Corporate and
Unallocated
 
Total
Deposits on real estate under option or contract
 
$
32,380

 
$
32,272

 
$
26,874

 
$

 
$

 
$
91,526

Real estate
 
1,022,906

 
498,041

 
567,743

 

 

 
2,088,690

Investments in unconsolidated entities
 
204

 
8,446

 

 

 
1,724

 
10,374

Other assets
 
61,618

 
70,411

(1)
72,097

(2)
873

 
268,297

(3)
473,296

Total assets
 
$
1,117,108

 
$
609,170

 
$
666,714

 
$
873

 
$
270,021

 
$
2,663,886

 
 
 
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), prepaid permits and fees to local municipalities and cash.
(3)
Balance consists primarily of cash and our deferred tax asset.