Quarterly report pursuant to Section 13 or 15(d)

OPERATING AND REPORTING SEGMENTS

v3.23.3
OPERATING AND REPORTING SEGMENTS
 9 Months Ended
Sep. 30, 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 three 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 homebuilding 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 September 30, Nine Months Ended September 30,
  2023 2022 2023 2022
Homebuilding revenue (1):
West $ 606,833  $ 598,147  $ 1,569,947  $ 1,580,456 
Central 454,228  500,582  1,338,387  1,280,242 
East 552,039  479,292  1,551,474  1,416,638 
Consolidated total $ 1,613,100  $ 1,578,021  $ 4,459,808  $ 4,277,336 
Homebuilding segment operating income:
West $ 94,885  $ 121,060  $ 185,977  $ 357,319 
Central 84,575  112,141  233,357  287,604 
East 109,318  104,872  273,711  317,815 
Total homebuilding segment operating income 288,778  338,073  693,045  962,738 
Financial services segment profit 5,700  4,842  6,066  12,255 
Corporate and unallocated costs (2)
(21,168) (13,350) (42,680) (27,034)
Interest expense —  —  —  (41)
Other income/(expense), net 13,331  (74) 35,037  (849)
Loss on early extinguishment of debt (907) —  (907) — 
Earnings before income taxes $ 285,734  $ 329,491  $ 690,561  $ 947,069 
 
(1)Homebuilding revenue includes the following land closing revenue, by segment:
Three Months Ended September 30, Nine Months Ended September 30,
2023 2022 2023 2022
Land closing revenue:
West $ —  $ 8,120  $ 26,575  $ 40,927 
Central 1,541  869  4,019  10,374 
East 1,242  —  13,953  2,600 
Total $ 2,783  $ 8,989  $ 44,547  $ 53,901 
(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 September 30, 2023
  West Central East Financial Services Corporate  and
Unallocated		 Total
Deposits on real estate under option or contract $ 17,655  $ 12,853  $ 62,993  $ —  $ —  $ 93,501 
Real estate 1,664,257  1,231,251  1,605,850  —  —  4,501,358 
Investments in unconsolidated entities 73  2,833  11,278  —  878  15,062 
Other assets 62,498  (1) 259,753  (2) 104,404  (3) 1,320  1,143,974  (4) 1,571,949 
Total assets $ 1,744,483  $ 1,506,690  $ 1,784,525  $ 1,320  $ 1,144,852  $ 6,181,870 

(1)Balance consists primarily of cash and cash equivalents, other receivables 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.