Quarterly report pursuant to Section 13 or 15(d)

OPERATING AND REPORTING SEGMENTS

v3.21.1
OPERATING AND REPORTING SEGMENTS
 3 Months Ended
Mar. 31, 2021
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 March 31,
  2021 2020
Homebuilding revenue (1):
West $ 393,430  $ 382,248 
Central 322,184  260,127 
East 368,167  258,638 
Consolidated total $ 1,083,781  $ 901,013 
Homebuilding segment operating income:
West $ 64,251  $ 41,894 
Central 56,993  28,919 
East 50,179  21,761 
Total homebuilding segment operating income 171,423  92,574 
Financial services segment profit 3,760  2,838 
Corporate and unallocated costs (2)
(9,914) (9,174)
Interest expense (90) (16)
Other income, net 798  611 
Net earnings before income taxes $ 165,977  $ 86,833 
 
(1)Homebuilding revenue includes the following land closing revenue, by segment, as outlined in the table below:
Three Months Ended March 31,
2021 2020
Land closing revenue:
West $ —  $ 4,518 
Central 3,799  4,218 
East —  1,860 
Total $ 3,799  $ 10,596 
(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, 2021
  West Central East Financial Services Corporate  and
Unallocated		 Total
Deposits on real estate under option or contract $ 25,322  $ 10,377  $ 28,656  $ —  $ —  $ 64,355 
Real estate 1,235,772  884,184  855,165  —  —  2,975,121 
Investments in unconsolidated entities 208  3,034  —  —  759  4,001 
Other assets 48,955  (1) 141,029  (2) 81,980  (3) 617  722,358  (4) 994,939 
Total assets $ 1,310,257  $ 1,038,624  $ 965,801  $ 617  $ 723,117  $ 4,038,416 

(1)Balance consists primarily of cash and cash equivalents and property and equipment.
(2)Balance consists primarily of cash and cash equivalents, development reimbursements from local municipalities and prepaid expenses and other assets.
(3)Balance consists primarily of cash and cash equivalents, goodwill (see Note 9), prepaid expenses and other assets and property and equipment.
(4)Balance consists primarily of cash and cash equivalents, deferred tax assets and prepaid expenses and other assets.
  At December 31, 2020
  West Central East Financial Services Corporate  and
Unallocated		 Total
Deposits on real estate under option or contract $ 22,493  $ 11,154  $ 25,887  $ —  $ —  $ 59,534 
Real estate 1,154,488  814,919  808,632  —  —  2,778,039 
Investments in unconsolidated entities 261  3,090  —  —  999  4,350 
Other assets 51,271  (1) 122,933  (2) 81,601  (3) 612  766,058  (4) 1,022,475 
Total assets $ 1,228,513  $ 952,096  $ 916,120  $ 612  $ 767,057  $ 3,864,398 
(1)Balance consists primarily of cash and cash equivalents and property and equipment.
(2)Balance consists primarily of cash and cash equivalents, development reimbursements from local municipalities and prepaids and other assets.
(3)Balance consists primarily of cash and cash equivalents, goodwill, prepaids and other assets, and property and equipment.
(4)Balance consists primarily