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, 2020
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
Central:
Texas
East:
Florida, Georgia, North Carolina, South Carolina and Tennessee
Management’s evaluation of segment performance is based on segment operating income, which we define as home and land closing revenues less cost of home and land closings, 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, “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,
  2020 2019 2020 2019
Homebuilding revenue (1):
West $ 434,289  $ 366,149  $ 1,198,782  $ 938,117 
Central 353,208  279,564  909,692  761,702 
East 350,594  295,167  963,709  813,816 
Consolidated total $ 1,138,091  $ 940,880  $ 3,072,183  $ 2,513,635 
Homebuilding segment operating income:
West $ 53,423  $ 41,237  $ 140,059  $ 83,619 
Central 52,394  31,979  119,208  72,795 
East 37,791  24,326  97,343  53,235 
Total homebuilding segment operating income 143,608  97,542  356,610  209,649 
Financial services segment profit 4,315  5,582  10,942  16,315 
Corporate and unallocated costs (2)
(13,550) (12,092) (30,488) (31,020)
Interest expense (55) (1,068) (2,176) (8,350)
Other income, net 1,188  2,402  3,313  5,816 
Net earnings before income taxes $ 135,506  $ 92,366  $ 338,201  $ 192,410 
 
(1)Homebuilding revenue includes the following land closing revenue, by segment, as outlined in the table below:
Three Months Ended September 30, Nine Months Ended September 30,
2020 2019 2020 2019
Land closing revenue:
West $ —  $ —  $ 4,974  $ 30 
Central 3,301  820  7,901  1,513 
East 1,569  875  4,079  11,204 
Total $ 4,870  $ 1,695  $ 16,954  $ 12,747 
(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 September 30, 2020
  West Central East Financial Services Corporate  and
Unallocated		 Total
Deposits on real estate under option or contract $ 24,085  $ 12,807  $ 26,075  $ —  $ —  $ 62,967 
Real estate 1,198,314  716,968  825,734  —  —  2,741,016 
Investments in unconsolidated entities 260  2,987  —  —  572  3,819 
Other assets 47,869  (1) 113,800  (2) 87,300  (3) 564  629,983  (4) 879,516 
Total assets $ 1,270,528  $ 846,562  $ 939,109  $ 564  $ 630,555  $ 3,687,318 

(1)Balance consists primarily of cash and property and equipment.
(2)Balance consists primarily of cash, development reimbursements from local municipalities and prepaid expenses and other assets.
(3)Balance consists primarily of cash, goodwill (see Note 9), prepaid expenses and other assets and property and equipment.
(4)Balance consists primarily of cash, our deferred tax asset and prepaid expenses and other assets. 
  At December 31, 2019
  West Central East Financial Services Corporate  and
Unallocated		 Total
Deposits on real estate under option or contract $ 10,568  $ 10,963  $ 29,370  $ —  $ —  $ 50,901 
Real estate 1,223,949  708,786  811,626  —  —  2,744,361 
Investments in unconsolidated entities 260  3,508  —  —  675  4,443 
Other assets 58,173  (1) 107,791  (2) 83,475  (3) 765  348,340  (4) 598,544 
Total assets $ 1,292,950  $ 831,048  $ 924,471  $ 765  $ 349,015  $ 3,398,249 
(1)Balance consists primarily of cash and property and equipment.
(2)Balance consists primarily of development reimbursements from local municipalities and prepaid expenses and other assets.
(3)Balance consists primarily of goodwill, prepaid expenses and other assets, and property and equipment.
(4)Balance consists primarily of cash.