Quarterly report pursuant to Section 13 or 15(d)

OPERATING AND REPORTING SEGMENTS

v3.22.2.2
OPERATING AND REPORTING SEGMENTS
 9 Months Ended
Sep. 30, 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 revenue less cost of home and land closings, including land development and other land sales costs, commissions and other sales costs, and other general and administrative 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,
  2022 2021 2022 2021
Homebuilding revenue (1):
West $ 598,147  $ 460,089  $ 1,580,456  $ 1,305,684 
Central 500,582  383,206  1,280,242  1,109,228 
East 479,292  416,610  1,416,638  1,206,373 
Consolidated total $ 1,578,021  $ 1,259,905  $ 4,277,336  $ 3,621,285 
Homebuilding segment operating income:
West $ 121,060  $ 95,167  $ 357,319  $ 238,356 
Central 112,141  90,579  287,604  232,537 
East 104,872  83,853  317,815  207,509 
Total homebuilding segment operating income 338,073  269,599  962,738  678,402 
Financial services segment profit 4,842  4,224  12,255  12,599 
Corporate and unallocated costs (2)
(13,350) (13,303) (27,034) (32,673)
Interest expense —  (79) (41) (246)
Other (expense)/ income, net (74) 1,268  (849) 3,443 
Loss on early extinguishment of debt —  —  —  (18,188)
Earnings before income taxes $ 329,491  $ 261,709  $ 947,069  $ 643,337 
 
(1)Homebuilding revenue includes the following land closing revenue, by segment:
Three Months Ended September 30, Nine Months Ended September 30,
2022 2021 2022 2021
Land closing revenue:
West $ 8,120  $ 8,470  $ 40,927  $ 21,426 
Central 869  —  10,374  3,799 
East —  —  2,600  — 
Total $ 8,989  $ 8,470  $ 53,901  $ 25,225 
(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, 2022
  West Central East Financial Services Corporate  and
Unallocated		 Total
Deposits on real estate under option or contract $ 25,211  $ 9,223  $ 53,994  $ —  $ —  $ 88,428 
Real estate 1,910,289  1,409,875  1,406,098  —  —  4,726,262 
Investments in unconsolidated entities 110  2,897  7,381  —  968  11,356 
Other assets 72,913  (1) 217,266  (2) 96,315  (3) 610  357,940  (4) 745,044 
Total assets $ 2,008,523  $ 1,639,261  $ 1,563,788  $ 610  $ 358,908  $ 5,571,090 

(1)Balance consists primarily of cash and cash equivalents, prepaids and other assets and property and equipment, net.
(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 (see Note 9), prepaids and other assets and property and equipment, net.
(4)Balance consists primarily of cash and cash equivalents, deferred tax assets and prepaids 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, net.
(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, real estate not owned, goodwill, prepaids and other assets and property and equipment, net.
(4)Balance consists primarily of cash and cash equivalents, deferred tax assets and prepaids and other assets.