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, 2023
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 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 revenue 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 March 31,
  2023 2022
Homebuilding revenue (1):
West $ 434,137  $ 494,506 
Central 425,450  355,624 
East 419,721  436,804 
Consolidated total $ 1,279,308  $ 1,286,934 
Homebuilding segment operating income:
West $ 38,809  $ 120,856 
Central 65,291  75,260 
East 60,876  93,548 
Total homebuilding segment operating income 164,976  289,664 
Financial services segment profit 2,923  3,334 
Corporate and unallocated costs (2)
(11,440) (6,757)
Interest expense —  (41)
Other income/(expense), net 8,844  (317)
Earnings before income taxes $ 165,303  $ 285,883 
 
(1)Homebuilding revenue includes the following land closing revenue, by segment:
Three Months Ended March 31,
2023 2022
Land closing revenue:
West $ 16,815  $ 31,082 
Central 570  7,796 
East —  2,600 
Total $ 17,385  $ 41,478 
(2)Balance consists primarily of corporate costs and shared service functions such as finance and treasury that are not allocated to the homebuilding or financial services reporting segments.
  At March 31, 2023
  West Central East Financial Services Corporate  and
Unallocated		 Total
Deposits on real estate under option or contract $ 16,577  $ 8,445  $ 40,819  $ —  $ —  $ 65,841 
Real estate 1,741,746  1,239,666  1,373,766  —  —  4,355,178 
Investments in unconsolidated entities 79  2,852  7,460  —  889  11,280 
Other assets 62,422  (1) 232,602  (2) 105,626  (3) 1,499  1,036,698  (4) 1,438,847 
Total assets $ 1,820,824  $ 1,483,565  $ 1,527,671  $ 1,499  $ 1,037,587  $ 5,871,146 

(1)Balance consists primarily of cash and cash equivalents, prepaids and other assets and property and equipment, net.
(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, net.
(4)Balance consists primarily of cash and cash equivalents, deferred tax assets and prepaids and other assets.
  At December 31, 2022
  West Central East Financial Services Corporate  and
Unallocated		 Total
Deposits on real estate under option or contract $ 21,599  $ 8,992  $ 46,138  $ —  $ —  $ 76,729 
Real estate 1,775,879  1,298,455  1,283,929  —  —  4,358,263 
Investments in unconsolidated entities 110  2,866  7,503  —  1,274  11,753 
Other assets 99,267  (1) 241,470  (2) 132,181  (3) 1,536  850,902  (4) 1,325,356 
Total assets $ 1,896,855  $ 1,551,783  $ 1,469,751  $ 1,536  $ 852,176  $ 5,772,101 
(1)Balance consists primarily of cash and cash equivalents, development reimbursements from local municipalities and property and equipment, net.
(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, prepaids and other assets and property and equipment, net.
(4)Balance consists primarily of cash and cash equivalents, deferred tax assets and prepaids and other assets.