Annual report pursuant to Section 13 and 15(d)

OPERATING AND REPORTING SEGMENTS

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OPERATING AND REPORTING SEGMENTS
 12 Months Ended
Dec. 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 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, “Business and Summary of Significant Accounting Policies.” 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:
  Years Ended December 31,
  2020 2019 2018
Homebuilding revenue (1):
West $ 1,800,223  $ 1,422,516  $ 1,436,334 
Central 1,282,339  1,038,052  1,013,878 
East 1,399,558  1,189,915  1,063,207 
Consolidated total 4,482,120  3,650,483  3,513,419 
Homebuilding segment operating income:
West 213,918  141,435  134,852 
Central 185,202  101,686  92,925 
East 157,971  87,285  59,522 
Total homebuilding segment operating income 557,091  330,406  287,299 
Financial services segment profit 16,388  20,579  24,044 
Corporate and unallocated costs (2) (44,398) (43,612) (38,521)
Interest expense (2,177) (8,370) (785)
Other income, net (3) 6,662  9,577  11,217 
Loss on early extinguishment of debt —  (5,635) — 
Net earnings before income taxes $ 533,566  $ 302,945  $ 283,254 
 
(1)Homebuilding revenue includes the following land closing revenue, by segment:
Years Ended December 31,
Land closing revenue: 2020 2019 2018
West $ 4,974  $ 12,463  $ 18,508 
Central 8,678  4,297  7,657 
East 4,079  29,094  12,542 
Total $ 17,731  $ 45,854  $ 38,707 

(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.
(3)For the year ended December 31, 2018, Other income, net includes a favorable $4.8 million legal settlement from long-standing litigation related to a previous joint venture in Nevada.
  At December 31, 2020
  West Central East Financial Services Corporate and
Unallocated		 Total
Deposits on real estate under option or contract $ 22,493  $ 11,154  $ 25,887  $ —  $ —  $ 59,534 
Real estate 1,154,488  814,919  808,632  —  —  2,778,039 
Investments in unconsolidated entities 261  3,090  —  —  999  4,350 
Other assets 51,271  (1) 122,933  (2) 81,601  (3) 612  766,058  (4) 1,022,475 
Total assets $ 1,228,513  $ 952,096  $ 916,120  $ 612  $ 767,057  $ 3,864,398 
 
(1)Balance consists primarily of cash and property and equipment.
(2)Balance consists primarily of cash, development reimbursements from local municipalities and prepaids and other assets.
(3)Balance consists primarily of cash, goodwill, prepaids and other assets, and property and equipment.
(4)Balance consists primarily of cash, deferred tax assets and prepaids 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 prepaids and other assets.
(3)Balance consists primarily of goodwill, prepaids and other assets, and property and equipment.
(4)Balance consists primarily of cash.