Annual report pursuant to Section 13 and 15(d)

OPERATING AND REPORTING SEGMENTS

v3.6.0.2
OPERATING AND REPORTING SEGMENTS
12 Months Ended
Dec. 31, 2016
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 nine 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 and Colorado (1)
Central:      Texas
East:           Florida, Georgia, North Carolina, South Carolina and Tennessee

(1)
Activity for our wind-down Nevada operations is reflected in the West Region's results.
Management’s evaluation of 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, including impairments. Each reportable segment follows the same accounting policies described 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:
 
 
 
Years Ended December 31,
 
 
2016
 
2015
 
2014
Homebuilding revenue (1):
 
 
 
 
 
 
West
 
$
1,300,906

 
$
1,029,801

 
$
920,244

Central
 
787,849

 
731,766

 
692,320

East
 
940,472

 
806,515

 
557,079

Consolidated total
 
3,029,227

 
2,568,082

 
2,169,643

Homebuilding segment operating income:
 
 
 
 
 
 
West
 
103,801

 
85,760

 
102,640

Central
 
74,253

 
80,444

 
75,372

East
 
48,126

 
56,141

 
46,510

Total homebuilding segment operating income
 
226,180

 
222,345

 
224,522

Financial services segment profit
 
21,902

 
19,271

 
16,178

Corporate and unallocated costs (2)
 
(33,863
)
 
(34,903
)
 
(33,245
)
Earnings/(loss) from other unconsolidated entities, net
 
4,060

 
(338
)
 
(447
)
Interest expense
 
(5,172
)
 
(15,965
)
 
(5,163
)
Other income/(expense), net
 
4,953

 
(946
)
 
6,572

Net earnings before income taxes
 
$
218,060

 
$
189,464

 
$
208,417

 

(1)
Homebuilding revenue includes the following land closing revenue, by segment:
 
 
Years Ended December 31,
Land closing revenue:
 
2016
 
2015
 
2014
West
 
$
15,608

 
$
2,131

 
$
11,155

Central
 
8,885

 
26,448

 
8,603

East
 
1,308

 
7,947

 
7,494

Total
 
$
25,801

 
$
36,526

 
$
27,252



(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 reporting segments.
 
 
At December 31, 2016
 
 
West
 
Central
 
East
 
Financial Services
 
Corporate and
Unallocated
 
Total
Deposits on real estate under option or contract
 
$
25,863

 
$
27,669

 
$
32,024

 
$

 
$

 
$
85,556

Real estate
 
1,120,038

 
595,485

 
706,540

 

 

 
2,422,063

Investments in unconsolidated entities
 
7,362

 
7,450

 

 

 
2,285

 
17,097

Other assets
 
45,624

 
94,299

(1
)
93,245

(2
)
812

 
129,995

(3
)
363,975

Total assets
 
$
1,198,887

 
$
724,903

 
$
831,809

 
$
812

 
$
132,280

 
$
2,888,691

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At December 31, 2015
 
 
West
 
Central
 
East
 
Financial Services
 
Corporate  and
Unallocated
 
Total
Deposits on real estate under option or contract
 
$
28,488

 
$
30,241

 
$
29,110

 
$

 
$

 
$
87,839

Real estate
 
1,008,457

 
505,954

 
583,891

 

 

 
2,098,302

Investments in unconsolidated entities
 
204

 
8,704

 

 

 
2,462

 
11,370

Other assets
 
55,112

 
87,313

(1
)
77,548

(2
)
898

 
261,395

(3
)
482,266

Total assets
 
$
1,092,261

 
$
632,212

 
$
690,549

 
$
898

 
$
263,857

 
$
2,679,777



(1)
Balance consists primarily of development reimbursements from local municipalities and cash.
(2)
Balance consists primarily of goodwill (see Note 9), prepaid permits and fees to local municipalities and cash.
(3)
Balance consists primarily of cash and our deferred tax asset.