Quarterly report pursuant to Section 13 or 15(d)

OPERATING AND REPORTING SEGMENTS

v3.5.0.2
OPERATING AND REPORTING SEGMENTS
6 Months Ended
Jun. 30, 2016
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 (1)
 
 
Central:
Texas
 
 
East:
Florida, Georgia, North Carolina, South Carolina and Tennessee
 

(1)
Activity for our wind-down Nevada operations is reflected in the West Region's results.
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 June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Homebuilding revenue (1):
 
 
 
 
 
 
 
West
$
332,643

 
$
219,774

 
$
593,689

 
$
426,652

Central
208,701

 
179,475

 
370,590

 
333,501

East
256,552

 
198,552

 
431,383

 
356,360

Consolidated total
$
797,896

 
$
597,801

 
$
1,395,662

 
$
1,116,513

Homebuilding segment operating income:
 
 
 
 
 
 
 
West
$
27,495

 
$
15,256

 
$
43,558

 
$
29,453

Central
19,784

 
21,053

 
33,678

 
35,158

East
12,322

 
15,959

 
18,181

 
21,578

Total homebuilding segment operating income
59,601

 
52,268

 
95,417

 
86,189

Financial services segment profit
5,763

 
4,136

 
9,809

 
7,916

Corporate and unallocated costs (2)
(6,774
)
 
(10,336
)
 
(14,589
)
 
(19,878
)
Earnings/(loss) from other unconsolidated entities, net
573

 
(169
)
 
416

 
(292
)
Interest expense
(1,672
)
 
(4,621
)
 
(4,960
)
 
(7,775
)
Other income, net
1,545

 
136

 
1,828

 
551

Net earnings before income taxes
$
59,036

 
$
41,414

 
$
87,921

 
$
66,711

 

(1)
Homebuilding revenue includes the following land closing revenue, by segment, as outlined in the table below.
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Land closing revenue:
 
 
 
 
 
 
 
West
$
65

 
$

 
$
65

 
$

Central
1,794

 
5,078

 
3,712

 
6,517

East
192

 
1,696

 
423

 
1,696

Total
$
2,051

 
$
6,774

 
$
4,200

 
$
8,213


(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 June 30, 2016
 
 
West
 
Central
 
East
 
Financial Services
 
Corporate and
Unallocated
 
Total
Deposits on real estate under option or contract
 
$
30,155

 
$
29,641

 
$
31,648

 
$

 
$

 
$
91,444

Real estate
 
1,101,474

 
553,574

 
646,257

 

 

 
2,301,305

Investments in unconsolidated entities
 
298

 
9,184

 

 

 
1,706

 
11,188

Other assets
 
58,506

 
83,256

(1)
82,795

(2)
963

 
131,698

(3)
357,218

Total assets
 
$
1,190,433

 
$
675,655

 
$
760,700

 
$
963

 
$
133,404

 
$
2,761,155

 
 
 
At December 31, 2015
 
 
West
 
Central
 
East
 
Financial Services
 
Corporate and
Unallocated
 
Total
Deposits on real estate under option or contract
 
$
28,488

 
$
30,241

 
$
29,110

 
$

 
$

 
$
87,839

Real estate
 
1,008,457

 
505,954

 
583,891

 

 

 
2,098,302

Investments in unconsolidated entities
 
204

 
8,704

 

 

 
2,462

 
11,370

Other assets
 
55,112

 
87,313

(1)
77,548

(2)
898

 
261,395

(3)
482,266

Total assets
 
$
1,092,261

 
$
632,212

 
$
690,549

 
$
898

 
$
263,857

 
$
2,679,777

(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.