| 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 a reporting segment 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 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, |
|
|
2013 |
|
2012 |
|
2011 |
Revenue (1): |
|
|
|
|
|
|
West |
|
$ |
937,050 |
|
|
$ |
600,227 |
|
|
$ |
366,265 |
|
Central |
|
508,961 |
|
|
392,678 |
|
|
395,638 |
|
East |
|
368,648 |
|
|
200,769 |
|
|
99,341 |
|
Consolidated total |
|
1,814,659 |
|
|
1,193,674 |
|
|
861,244 |
|
Homebuilding segment operating income: |
|
|
|
|
|
|
West |
|
131,352 |
|
|
44,727 |
|
|
5,037 |
|
Central |
|
38,499 |
|
|
17,790 |
|
|
11,042 |
|
East |
|
39,557 |
|
|
15,283 |
|
|
6,858 |
|
Total homebuilding segment operating income (2) |
|
209,408 |
|
|
77,800 |
|
|
22,937 |
|
Financial services segment profit |
|
15,954 |
|
|
10,255 |
|
|
6,563 |
|
Corporate and unallocated costs (3) |
|
(31,216 |
) |
|
(22,619 |
) |
|
(20,925 |
) |
Loss from unconsolidated entities, net |
|
(378 |
) |
|
(224 |
) |
|
(714 |
) |
Interest expense |
|
(15,092 |
) |
|
(24,244 |
) |
|
(30,399 |
) |
Loss on early extinguishment of debt |
|
(3,796 |
) |
|
(5,772 |
) |
|
— |
|
Other income/(loss), net |
|
2,792 |
|
|
$ |
(6,342 |
) |
|
2,162 |
|
Net earnings/(loss) before income taxes |
|
$ |
177,672 |
|
|
$ |
28,854 |
|
|
$ |
(20,376 |
) |
|
|
(1) |
Revenue includes the following land closing revenue, by segment: 2013 – $11.6 million in the West Region, $16.2 million in the Central Region and $3.5 million in the East Region; 2012 – $6.5 million in the West Region, $2.0 million in the Central Region and $790,000 in the East Region; 2011 – $360,000 in the Central Region.
|
|
|
(2) |
Operating income includes the following real-estate related and joint venture related impairments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended December 31, |
|
|
2013 |
|
2012 |
|
2011 |
West |
|
$ |
514 |
|
|
$ |
1,618 |
|
|
$ |
11,333 |
|
Central |
|
235 |
|
|
219 |
|
|
2,896 |
|
East |
|
238 |
|
|
172 |
|
|
1,095 |
|
Total |
|
$ |
987 |
|
|
$ |
2,009 |
|
|
$ |
15,324 |
|
|
|
(3) |
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, 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2012 |
|
|
West |
|
Central |
|
East |
|
Financial Services |
|
Corporate and
Unallocated (3)
|
|
Total |
Deposits on real estate under option or contract |
|
$ |
4,419 |
|
|
$ |
7,168 |
|
|
$ |
2,764 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
14,351 |
|
Real estate |
|
647,316 |
|
|
305,100 |
|
|
160,771 |
|
|
— |
|
|
— |
|
|
1,113,187 |
|
Investments in unconsolidated entities |
|
365 |
|
|
10,645 |
|
|
16 |
|
|
— |
|
|
1,059 |
|
|
12,085 |
|
Other assets (4) |
|
24,935 |
|
|
132,546 |
|
|
25,914 |
|
|
297 |
|
|
252,247 |
|
|
435,939 |
|
Total assets |
|
$ |
677,035 |
|
|
$ |
455,459 |
|
|
$ |
189,465 |
|
|
$ |
297 |
|
|
$ |
253,306 |
|
|
$ |
1,575,562 |
|
(1)(3)Balance consists primarily of cash and other corporate assets not allocated to the reporting segments.
(2)(4) Balance consists primarily of cash and securities and our deferred tax asset.
|