Quarterly report pursuant to Section 13 or 15(d)

OPERATING AND REPORTING SEGMENTS

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OPERATING AND REPORTING SEGMENTS
 9 Months Ended
Sep. 30, 2024
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,
  2024 2023 2024 2023
Homebuilding revenue (1):
West $ 594,509  606,833  $ 1,732,978  $ 1,569,947 
Central 418,927  454,228  1,305,672  1,338,387 
East 575,013  552,039  1,711,938  1,551,474 
Consolidated total $ 1,588,449  $ 1,613,100  $ 4,750,588  $ 4,459,808 
Homebuilding segment operating income:
West $ 93,891  $ 94,885  $ 265,934  $ 185,977 
Central 68,198  84,575  223,914  233,357 
East 92,127  109,318  296,613  273,711 
Total homebuilding segment operating income 254,216  288,778  786,461  693,045 
Financial services segment profit/(loss) 3,101  5,700  7,248  6,066 
Corporate and unallocated costs (2)
(18,067) (21,168) (42,972) (42,680)
Interest expense —  —  —  — 
Other income, net 10,682  13,331  31,202  35,037 
Loss on early extinguishment of debt —  (907) (631) (907)
Earnings before income taxes $ 249,932  $ 285,734  $ 781,308  $ 690,561 
 
(1)Homebuilding revenue includes the following land closing revenue, by segment:
Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
Land closing revenue:
West $ —  $ —  $ —  $ 26,575 
Central 2,125  1,541  2,125  4,019 
East 540  1,242  2,845  13,953 
Total $ 2,665  $ 2,783  $ 4,970  $ 44,547 
(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, 2024
  West Central East Financial Services Corporate  and
Unallocated		 Total
Deposits on real estate under option or contract $ 34,438  $ 21,699  $ 151,324  $ —  $ —  $ 207,461 
Real estate 1,831,330  1,330,943  2,294,830  —  —  5,457,103 
Investments in unconsolidated entities —  2,849  14,536  —  832  18,217 
Other assets 63,440  (1) 267,397  (2) 106,592  (3) 1,858  981,384  (4) 1,420,671 
Total assets $ 1,929,208  $ 1,622,888  $ 2,567,282  $ 1,858  $ 982,216  $ 7,103,452 

(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 (see Note 9), and prepaids and other assets.
(4)Balance consists primarily of cash and cash equivalents, deferred tax assets and prepaids and other assets.
  At December 31, 2023
  West Central East Financial Services Corporate  and
Unallocated		 Total
Deposits on real estate under option or contract $ 11,695  $ 10,911  $ 88,758  $ —  $ —  $ 111,364 
Real estate 1,748,732  1,257,054  1,715,505  —  —  4,721,291 
Investments in unconsolidated entities —  2,825  13,411  —  934  17,170 
Other assets 101,376  (1) 272,876  (2) 102,425  (3) 1,889  1,024,743  (4) 1,503,309 
Total assets $ 1,861,803  $ 1,543,666  $ 1,920,099  $ 1,889  $ 1,025,677  $ 6,353,134 
(1)Balance consists primarily of cash and cash equivalents, receivables from title companies 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, net and prepaids and other assets.