Annual report pursuant to Section 13 and 15(d)

Operating and Reporting Segments

v2.4.0.8
Operating and Reporting Segments
12 Months Ended
Dec. 31, 2013
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 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.