Quarterly report pursuant to Section 13 or 15(d)

Operating and Reporting Segments

v2.4.0.8
Operating and Reporting Segments
3 Months Ended
Mar. 31, 2014
Segment Reporting [Abstract]  
OPERATING AND REPORTING SEGMENTS
NOTE 12 — 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 seven homebuilding operating segments. These 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 (1)
Central:  Texas
East:       Florida, the Carolinas and Tennessee

(1)    Activity for our wind-down Nevada operations is reflected in the West Region's results.
Management's evaluation of homebuilding 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. Each reportable segment follows the same accounting policies described in our 2013 Form 10-K 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:
 
 
Three Months Ended March 31,
 
2014
 
2013
Homebuilding revenue (1):
 
 
 
West
$
192,681

 
$
189,205

Central
119,715

 
90,789

East
95,949

 
56,441

Consolidated total
$
408,345

 
$
336,435

Homebuilding segment operating income:
 
 
 
West
$
24,810

 
$
19,163

Central
9,469

 
2,380

East
10,664

 
3,236

Total homebuilding segment operating income
44,943

 
24,779

Financial services profit
3,025

 
3,056

Corporate and unallocated (2)
(5,976
)
 
(5,847
)
Loss from other unconsolidated entities, net
(169
)
 
(155
)
Interest expense
(2,713
)
 
(5,128
)
Other income, net
648

 
470

Loss on early extinguishment of debt

 
(700
)
Earnings before income taxes
$
39,758

 
$
16,475

 
(1)
Homebuilding revenue includes the following land closing revenue, by segment:
 
Three Months Ended March 31,
 
2014
 
2013
Land closing revenue:
 
 
 
West
$
1,050

 
$
5,641

Central
1,516

 
84

East

 

Consolidated total
$
2,566

 
$
5,725


(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 March 31, 2014
 
West
 
Central
 
East
 
Financial Services
 
Corporate and
Unallocated (1)
 
Total
Deposits on real estate under option or contract
$
21,132

 
$
19,602

 
$
13,932

 
$

 
$

 
$
54,666

Real estate
861,229

 
412,153

 
264,836

 

 

 
1,538,218

Investments in unconsolidated entities
203

 
8,634

 
37

 

 
882

 
9,756

Other assets (2)
45,315

 
182,718

 
30,398

 
544

 
267,738

 
526,713

Total assets
$
927,879

 
$
623,107

 
$
309,203

 
$
544

 
$
268,620

 
$
2,129,353

 
 
At December 31, 2013
 
West
 
Central
 
East
 
Financial Services
 
Corporate and
Unallocated (1)
 
Total
Deposits on real estate under option or contract
$
26,415

 
$
12,198

 
$
12,982

 
$

 
$

 
$
51,595

Real estate
800,288

 
369,464

 
235,547

 

 

 
1,405,299

Investments in unconsolidated entities
204

 
8,941

 
50

 

 
2,443

 
11,638

Other assets (2)
26,900

 
165,403

 
31,372

 
497

 
310,657

 
534,829

Total assets
$
853,807

 
$
556,006

 
$
279,951

 
$
497

 
$
313,100

 
$
2,003,361

 
(1)    Balance consists primarily of corporate assets not allocated to the reporting segments.
(2)    Balance consists primarily of cash and securities and our deferred tax asset.