Quarterly report pursuant to Section 13 or 15(d)

OPERATING AND REPORTING SEGMENTS

v3.23.2
OPERATING AND REPORTING SEGMENTS
 6 Months Ended
Jun. 30, 2023
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 three 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 homebuilding 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 June 30, Six Months Ended June 30,
  2023 2022 2023 2022
Homebuilding revenue (1):
West $ 528,977  $ 487,803  $ 963,114  $ 982,309 
Central 458,709  424,036  884,159  779,660 
East 579,714  500,542  999,435  937,346 
Consolidated total $ 1,567,400  $ 1,412,381  $ 2,846,708  $ 2,699,315 
Homebuilding segment operating income:
West $ 52,283  $ 115,403  $ 91,092  $ 236,259 
Central 83,491  100,203  148,782  175,463 
East 103,517  119,395  164,393  212,943 
Total homebuilding segment operating income 239,291  335,001  404,267  624,665 
Financial services segment profit (2,557) 4,079  366  7,413 
Corporate and unallocated costs (2)
(10,072) (6,927) (21,512) (13,684)
Interest expense —  —  —  (41)
Other income/(expense), net 12,862  (458) 21,706  (775)
Earnings before income taxes $ 239,524  $ 331,695  $ 404,827  $ 617,578 
 
(1)Homebuilding revenue includes the following land closing revenue, by segment:
Three Months Ended June 30, Six Months Ended June 30,
2023 2022 2023 2022
Land closing revenue:
West $ 9,760  $ 1,725  $ 26,575  $ 32,807 
Central 1,908  1,709  2,478  9,505 
East 12,711  —  12,711  2,600 
Total $ 24,379  $ 3,434  $ 41,764  $ 44,912 
(2)Balance consists primarily of corporate costs and shared service functions such as finance and treasury that are not allocated to the homebuilding or financial services reporting segments.
  At June 30, 2023
  West Central East Financial Services Corporate  and
Unallocated		 Total
Deposits on real estate under option or contract $ 14,119  $ 8,962  $ 47,903  $ —  $ —  $ 70,984 
Real estate 1,708,328  1,204,692  1,435,580  —  —  4,348,600 
Investments in unconsolidated entities 74  2,847  8,697  —  833  12,451 
Other assets 52,887  (1) 223,378  (2) 105,512  (3) 1,821  1,250,008  (4) 1,633,606 
Total assets $ 1,775,408  $ 1,439,879  $ 1,597,692  $ 1,821  $ 1,250,841  $ 6,065,641 

(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, 2022
  West Central East Financial Services Corporate  and
Unallocated		 Total
Deposits on real estate under option or contract $ 21,599  $ 8,992  $ 46,138  $ —  $ —  $ 76,729 
Real estate 1,775,879  1,298,455  1,283,929  —  —  4,358,263 
Investments in unconsolidated entities 110  2,866  7,503  —  1,274  11,753 
Other assets 99,267  (1) 241,470  (2) 132,181  (3) 1,536  850,902  (4) 1,325,356 
Total assets $ 1,896,855  $ 1,551,783  $ 1,469,751  $ 1,536  $ 852,176  $ 5,772,101 
(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, 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.