Quarterly report pursuant to Section 13 or 15(d)

OPERATING AND REPORTING SEGMENTS

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OPERATING AND REPORTING SEGMENTS
 3 Months Ended
Mar. 31, 2022
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 ten 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, Colorado and Utah
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,
  2022 2021
Homebuilding revenue (1):
West $ 494,506  $ 393,430 
Central 355,624  322,184 
East 436,804  368,167 
Consolidated total $ 1,286,934  $ 1,083,781 
Homebuilding segment operating income:
West $ 120,856  $ 64,251 
Central 75,260  56,993 
East 93,548  50,179 
Total homebuilding segment operating income 289,664  171,423 
Financial services segment profit 3,334  3,760 
Corporate and unallocated costs (2)
(6,757) (9,914)
Interest expense (41) (90)
Other (expense)/income, net (317) 798 
Net earnings before income taxes $ 285,883  $ 165,977 
 
(1)Homebuilding revenue includes the following land closing revenue, by segment:
Three Months Ended March 31,
2022 2021
Land closing revenue:
West $ 31,082  $ — 
Central 7,796  3,799 
East 2,600  — 
Total $ 41,478  $ 3,799 
(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, 2022
  West Central East Financial Services Corporate  and
Unallocated		 Total
Deposits on real estate under option or contract $ 25,636  $ 10,461  $ 57,335  $ —  $ —  $ 93,432 
Real estate 1,668,976  1,175,478  1,183,496  —  —  4,027,950 
Investments in unconsolidated entities 81  2,951  1,707  —  892  5,631 
Other assets 68,328  (1) 195,978  (2) 110,971  (3) 724  555,147  (4) 931,148 
Total assets $ 1,763,021  $ 1,384,868  $ 1,353,509  $ 724  $ 556,039  $ 5,058,161 

(1)Balance consists primarily of cash and cash equivalents, development reimbursements from local municipalities 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, 2021
  West Central East Financial Services Corporate  and
Unallocated		 Total
Deposits on real estate under option or contract $ 26,687  $ 11,132  $ 52,860  $ —  $ —  $ 90,679 
Real estate 1,571,477  1,076,300  1,086,631  —  —  3,734,408 
Investments in unconsolidated entities 87  2,974  1,707  —  996  5,764 
Other assets 66,897  (1) 199,791  (2) 102,073  (3) 610  607,311  (4) 976,682 
Total assets $ 1,665,148  $ 1,290,197  $ 1,243,271  $ 610  $ 608,307  $ 4,807,533 
(1)Balance consists primarily of cash and cash equivalents, development reimbursements from local municipalities 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, real estate not owned, goodwill, 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.