Segment Information

The Company operates one principal homebuilding business. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-maker in deciding how to allocate resources and in assessing performance. The Company’s President and Chief Executive Officer has been identified as the chief operating decision maker. The Company’s chief operating decision maker directs the allocation of resources to operating segments based on the profitability and cash flows of each respective segment.

The Company’s homebuilding operations design, construct and sell a wide range of homes designed to meet the specific needs in each of its markets. As such, in accordance with the aggregation criteria defined by FASB ASC Topic 280, Segment Reporting (“ASC 280”), the Company’s homebuilding operating segments have been grouped into six reportable segments:

California, consisting of operating divisions in i) Southern California, consisting of operations in Orange, Los Angeles, Riverside and San Bernardino counties; ii) Northern California, consisting of operations in Alameda, Contra Costa, San Joaquin, and Santa Clara counties.

Arizona, consisting of operations in the Phoenix, Arizona metropolitan area.

Nevada, consisting of operations in the Las Vegas, Nevada metropolitan area.

Colorado, consisting of operations in the Denver, Colorado metropolitan area.

Washington, consisting of operations in the Seattle, Washington metropolitan area.

Oregon, consisting of operations in the Portland, Oregon metropolitan area.

Corporate develops and implements strategic initiatives and supports the Company’s operating segments by centralizing key administrative functions such as finance and treasury, information technology, risk management and litigation and human resources.

Segment financial information relating to the Company’s operations was as follows (in thousands):



	Year Ended December 31, 2017		Year Ended December 31, 2016		Year Ended December 31, 2015
	Year Ended December 31, 2017		Year Ended December 31, 2016		Year Ended December 31, 2015
Operating revenue:
California (1)	$	682,896	$	494,189	$	401,934
Arizona	158,534		125,951		69,510
Nevada	176,354		191,711		130,845
Colorado	124,456		128,530		107,014
Washington	333,667		154,600		181,258
Oregon	320,621		311,059		213,491
Total operating revenue	$	1,796,528	$	1,406,040	$	1,104,052

(1) Operating revenue in the California segment includes construction services revenue.



	Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2015
	Year Ended December 31, 2017			Year Ended December 31, 2016			Year Ended December 31, 2015
Income before provision from income taxes:
California	$	88,422		$	47,692		$	46,752
Arizona	14,832			12,004			5,743
Nevada	15,672			19,182			13,022
Colorado	7,156			6,978			3,291
Washington	30,008			9,528			18,652
Oregon	35,862			41,617			24,787
Corporate	(49,440		)	(34,184		)	(25,180		)
Income before extinguishment of debt	$	142,512		$	102,817		$	87,067
Corporate - Loss on extinguishment of debt	(21,828		)	—			—
Income before provision for income taxes	$	120,684		$	102,817		$	87,067



	December 31,		December 31,
	2017		2016
Total assets:
California	$	631,649	$	716,955
Arizona	170,634		191,581
Nevada	211,202		189,248
Colorado	149,183		124,580
Washington	286,442		343,973
Oregon	288,981		238,766
Corporate (1)	323,013		206,177
Total assets	$	2,061,104	$	2,011,280


(1)	Comprised primarily of cash and cash equivalents, receivables, deferred income taxes, and other assets.