Quarterly report pursuant to Section 13 or 15(d)

Operating and Reporting Segments

v2.4.0.6
Operating and Reporting Segments
 12 Months Ended
Dec. 31, 2012
Segment Reporting [Abstract]  
OPERATING AND REPORTING SEGMENTS
NOTE 12 — 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 seven homebuilding operating segments (the seven states in which we operate) within our homebuilding business. These segments are engaged in the business of acquiring and developing land, constructing homes, marketing and selling those homes, and providing warranty and customer service. We aggregate our homebuilding operating segments into reporting segments based on similar long-term economic characteristics and geographical proximity. In the latter part of 2012, management's evaluation of segment reporting led to a re-grouping of our homebuilding segments to more closely align them into long-term expected profitability trends and, accordingly, all prior year segment financial information has been updated to reflect our new aggregation. Our current reportable homebuilding segments are as follows:
West:       Arizona, California, Colorado and Nevada
Central:  Texas
East:       Florida and the Carolinas
Management's evaluation of homebuilding segment performance is based on segment operating income, which we define as homebuilding and land revenues less cost of home construction, 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, “Business and Summary of Significant Accounting Policies.” 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,
 
2013
 
2012
Homebuilding revenue (1):
 
 
 
West
$
189,205

 
$
94,701

Central
90,789

 
71,979

East
56,441

 
37,670

Consolidated total
336,435

 
204,350

Homebuilding segment operating income:
 
 
 
West
19,163

 
3,241

Central
2,380

 
316

East
3,236

 
2,806

Total homebuilding segment operating income
24,779

 
6,363

Financial services profit
3,056

 
1,581

Corporate and unallocated (2)
(5,847
)
 
(4,825
)
Loss from other unconsolidated entities, net
(155
)
 
(183
)
Interest expense
(5,128
)
 
(7,371
)
Other income/(expense), net
470

 
(139
)
Loss on early extinguishment of debt
(700
)
 
—

Earnings/(loss) before income taxes
$
16,475

 
$
(4,574
)
 
(1)
Homebuilding revenue includes the following land closing revenue, by segment: three months ended March 31, 2013— $5.6 million in the West Region, $0.1 million in the Central Region; three months ended March 31, 2012— $0.3 million in the Central Region.
(2)
Balance consists primarily of corporate costs and numerous shared service functions such as finance and treasury that are not allocated to the homebuilding reporting segments.
 
At March 31, 2013
 
West
 
Central
 
East
 
Financial Services
 
Corporate and
Unallocated (1)
 
Total
Deposits on real estate under option or contract
$
2,039

 
$
5,858

 
$
3,424

 
$
—

 
$
—

 
$
11,321

Real estate
660,286

 
318,961

 
172,892

 
—

 
—

 
1,152,139

Investments in unconsolidated entities
319

 
9,589

 
39

 
—

 
1,002

 
10,949

Other assets
30,372

 
155,002

 
16,562

 
506

 
394,134

 
596,576

Total assets
$
693,016

 
$
489,410

 
$
192,917

 
$
506

 
$
395,136

 
$
1,770,985

 
 
At December 31, 2012
 
West
 
Central
 
East
 
Financial Services
 
Corporate and
Unallocated (1)
 
Total
Deposits on real estate under option or contract
$
4,419

 
$
7,168

 
$
2,764

 
$
—

 
$
—

 
$
14,351

Real estate
647,316

 
305,100

 
160,771

 
—

 
—

 
1,113,187

Investments in unconsolidated entities
365

 
10,645

 
16

 
—

 
1,059

 
12,085

Other assets
24,935

 
132,546

 
25,914

 
297

 
252,247

 
435,939

Total assets
$
677,035

 
$
455,459

 
$
189,465

 
$
297

 
$
253,306

 
$
1,575,562

 
(1)    Balance consists primarily of cash and other corporate assets not allocated to the reporting segments.