Quarterly report pursuant to Section 13 or 15(d)

OPERATING AND REPORTING SEGMENTS

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OPERATING AND REPORTING SEGMENTS
 3 Months Ended
Mar. 31, 2020
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 reporting segments 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 home and land closing revenues less cost of home and land closings, 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,
  2020 2019
Homebuilding revenue (1):
West $ 382,248    $ 272,966   
Central 260,127    191,606   
East 258,638    243,573   
Consolidated total $ 901,013    $ 708,145   
Homebuilding segment operating income:
West $ 41,894    $ 18,308   
Central 28,919    12,336   
East 21,761    9,693   
Total homebuilding segment operating income 92,574    40,337   
Financial services segment profit 2,838    4,702   
Corporate and unallocated costs (2)
(9,174)   (9,630)  
Interest expense (16)   (4,085)  
Other income, net 611    1,046   
Net earnings before income taxes $ 86,833    $ 32,370   
 
(1)Homebuilding revenue includes the following land closing revenue, by segment, as outlined in the table below:
Three Months Ended March 31,
2020 2019
Land closing revenue:
West $ 4,518    $ —   
Central 4,218    —   
East 1,860    9,495   
Total $ 10,596    $ 9,495   
(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 services reporting segments.
  At March 31, 2020
  West Central East Financial Services Corporate  and
Unallocated		 Total
Deposits on real estate under option or contract $ 12,501    $ 14,304    $ 27,362    $ —    $ —    $ 54,167   
Real estate 1,225,450    723,796    840,544    —    —    2,789,790   
Investments in unconsolidated entities 261    2,516    —    —    502    3,279   
Other assets 50,828    (1) 110,932    (2) 76,800    (3) 611    828,049    (4) 1,067,220   
Total assets $ 1,289,040    $ 851,548    $ 944,706    $ 611    $ 828,551    $ 3,914,456   

(1)Balance consists primarily of cash and property and equipment.
(2)Balance consists primarily of development reimbursements from local municipalities and prepaid expenses and other assets.
(3)Balance consists primarily of goodwill (see Note 9), prepaid expenses and other assets and property and equipment.
(4)Balance consists primarily of cash, our deferred tax asset and prepaid expenses and other assets. 
  At December 31, 2019
  West Central East Financial Services Corporate  and
Unallocated		 Total
Deposits on real estate under option or contract $ 10,568    $ 10,963    $ 29,370    $ —    $ —    $ 50,901   
Real estate 1,223,949    708,786    811,626    —    —    2,744,361   
Investments in unconsolidated entities 260    3,508    —    —    675    4,443   
Other assets 58,173    (1) 107,791    (2) 83,475    (3) 765    348,340    (4) 598,544   
Total assets $ 1,292,950    $ 831,048    $ 924,471    $ 765    $ 349,015    $ 3,398,249   
(1)Balance consists primarily of cash and property and equipment.
(2)Balance consists primarily of development reimbursements from local municipalities and prepaid expenses and other assets.
(3)Balance consists primarily of goodwill, prepaid expenses and other assets, and property and equipment.
(4)Balance consists primarily of cash.