| Segment Reporting Disclosure [Text Block] |
NOTE 14 — 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 ten 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, Colorado and Utah |
| |
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, including land development and other land sales costs, commissions and other sales costs, and other general and administrative 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, |
|
| |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
| Homebuilding revenue (1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| West |
|
$ |
487,803 |
|
|
$ |
452,165 |
|
|
$ |
982,309 |
|
|
$ |
845,595 |
|
| Central |
|
|
424,036 |
|
|
|
403,838 |
|
|
|
779,660 |
|
|
|
726,022 |
|
| East |
|
|
500,542 |
|
|
|
421,596 |
|
|
|
937,346 |
|
|
|
789,763 |
|
| Consolidated total |
|
$ |
1,412,381 |
|
|
$ |
1,277,599 |
|
|
$ |
2,699,315 |
|
|
$ |
2,361,380 |
|
| Homebuilding segment operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| West |
|
$ |
115,403 |
|
|
$ |
78,938 |
|
|
$ |
236,259 |
|
|
$ |
143,189 |
|
| Central |
|
|
100,203 |
|
|
|
84,965 |
|
|
|
175,463 |
|
|
|
141,958 |
|
| East |
|
|
119,395 |
|
|
|
73,477 |
|
|
|
212,943 |
|
|
|
123,656 |
|
| Total homebuilding segment operating income |
|
|
335,001 |
|
|
|
237,380 |
|
|
|
624,665 |
|
|
|
408,803 |
|
| Financial services segment profit |
|
|
4,079 |
|
|
|
4,615 |
|
|
|
7,413 |
|
|
|
8,375 |
|
| Corporate and unallocated costs (2) |
|
|
(6,927 |
) |
|
|
(9,456 |
) |
|
|
(13,684 |
) |
|
|
(19,370 |
) |
| Interest expense |
|
|
— |
|
|
|
(77 |
) |
|
|
(41 |
) |
|
|
(167 |
) |
| Other (expense)/income, net |
|
|
(458 |
) |
|
|
1,377 |
|
|
|
(775 |
) |
|
|
2,175 |
|
| Loss on early extinguishment of debt |
|
|
— |
|
|
|
(18,188 |
) |
|
|
— |
|
|
|
(18,188 |
) |
| Net earnings before income taxes |
|
$ |
331,695 |
|
|
$ |
215,651 |
|
|
$ |
617,578 |
|
|
$ |
381,628 |
|
| (1) |
Homebuilding revenue includes the following land closing revenue, by segment: |
| |
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
| |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
| Land closing revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| West |
|
$ |
1,725 |
|
|
$ |
12,956 |
|
|
$ |
32,807 |
|
|
$ |
12,956 |
|
| Central |
|
|
1,709 |
|
|
|
— |
|
|
|
9,505 |
|
|
|
3,799 |
|
| East |
|
|
— |
|
|
|
— |
|
|
|
2,600 |
|
|
|
— |
|
| Total |
|
$ |
3,434 |
|
|
$ |
12,956 |
|
|
$ |
44,912 |
|
|
$ |
16,755 |
|
| (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 June 30, 2022 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial |
|
|
Corporate and |
|
|
|
|
|
|
| |
|
West |
|
|
|
Central |
|
|
|
East |
|
|
|
Services |
|
|
Unallocated |
|
|
|
Total |
|
| Deposits on real estate under option or contract |
|
$ |
28,922 |
|
|
|
$ |
10,714 |
|
|
|
$ |
58,331 |
|
|
|
$ |
— |
|
|
$ |
— |
|
|
|
$ |
97,967 |
|
| Real estate |
|
|
1,861,310 |
|
|
|
|
1,316,092 |
|
|
|
|
1,296,660 |
|
|
|
|
— |
|
|
|
— |
|
|
|
|
4,474,062 |
|
| Investments in unconsolidated entities |
|
|
110 |
|
|
|
|
2,936 |
|
|
|
|
7,360 |
|
|
|
|
— |
|
|
|
817 |
|
|
|
|
11,223 |
|
| Other assets |
|
|
77,526 |
|
(1) |
|
|
209,131 |
|
(2) |
|
|
120,461 |
|
(3) |
|
|
519 |
|
|
|
316,834 |
|
(4) |
|
|
724,471 |
|
| Total assets |
|
$ |
1,967,868 |
|
|
|
$ |
1,538,873 |
|
|
|
$ |
1,482,812 |
|
|
|
$ |
519 |
|
|
$ |
317,651 |
|
|
|
$ |
5,307,723 |
|
| (1) |
Balance consists primarily of cash and cash equivalents, development reimbursements from local municipalities and property and equipment. |
| (2) |
Balance consists primarily of cash and cash equivalents, development reimbursements from local municipalities and prepaids and other assets. |
| (3) |
Balance consists primarily of cash and cash equivalents, goodwill (see Note 9), prepaids and other assets and property and equipment. |
| (4) |
Balance consists primarily of cash and cash equivalents, deferred tax assets and prepaids and other assets. |
| |
|
At December 31, 2021 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial |
|
|
Corporate and |
|
|
|
|
|
|
| |
|
West |
|
|
|
Central |
|
|
|
East |
|
|
|
Services |
|
|
Unallocated |
|
|
|
Total |
|
| Deposits on real estate under option or contract |
|
$ |
26,687 |
|
|
|
$ |
11,132 |
|
|
|
$ |
52,860 |
|
|
|
$ |
— |
|
|
$ |
— |
|
|
|
$ |
90,679 |
|
| Real estate |
|
|
1,571,477 |
|
|
|
|
1,076,300 |
|
|
|
|
1,086,631 |
|
|
|
|
— |
|
|
|
— |
|
|
|
|
3,734,408 |
|
| Investments in unconsolidated entities |
|
|
87 |
|
|
|
|
2,974 |
|
|
|
|
1,707 |
|
|
|
|
— |
|
|
|
996 |
|
|
|
|
5,764 |
|
| Other assets |
|
|
66,897 |
|
(1) |
|
|
199,791 |
|
(2) |
|
|
102,073 |
|
(3) |
|
|
610 |
|
|
|
607,311 |
|
(4) |
|
|
976,682 |
|
| Total assets |
|
$ |
1,665,148 |
|
|
|
$ |
1,290,197 |
|
|
|
$ |
1,243,271 |
|
|
|
$ |
610 |
|
|
$ |
608,307 |
|
|
|
$ |
4,807,533 |
|
| (1) |
Balance consists primarily of cash and cash equivalents, development reimbursements from local municipalities and property and equipment. |
| (2) |
Balance consists primarily of cash and cash equivalents, development reimbursements from local municipalities and prepaids and other assets. |
| (3) |
Balance consists primarily of cash and cash equivalents, real estate not owned, goodwill, prepaids and other assets and property and equipment. |
| (4) |
Balance consists primarily of cash and cash equivalents, deferred tax assets and prepaids and other assets. |
|