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Segment Information
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
We operate two principal businesses: homebuilding and financial services.
In accordance with ASC Topic 280, Segment Reporting, in determining the most appropriate reportable segments within our homebuilding business, we have considered similar economic and other characteristics, including product types, average sales prices, gross profits, production processes, suppliers, subcontractors, regulatory environments, land acquisition results, and underlying demand and supply. Based upon these factors and in consideration of the geographical layout of our homebuilding markets, we have identified three homebuilding reporting segments and, as such, our homebuilding segments are reported under the following hierarchy:
West region: Arizona, California, Nevada and Washington
Central region: Colorado, Texas and Utah
East region: District of Columbia, Florida, Maryland, North Carolina, South Carolina and Virginia
In September 2023, we announced our expansion into the greater Salt Lake City region with the launch of a new division in Utah. In April 2024, we announced further expansion into Orlando, Florida, and the Coastal Carolinas area, which includes parts of Georgia and South Carolina. As of September 30, 2024, we had not yet commenced significant operations in these new markets, however we have controlled lots within Utah.
Our Tri Pointe Solutions financial services operation is a reportable segment and is comprised of our Tri Pointe Connect mortgage financing operations, our Tri Pointe Assurance title and escrow services operations, and our Tri Pointe Advantage property and casualty insurance agency operations. For further details, see Note 1, Organization, Basis of Presentation and Summary of Significant Accounting Policies.
Corporate is a non-operating segment that develops and implements company-wide strategic initiatives and provides support to our homebuilding reporting segments by centralizing certain administrative functions, such as marketing, legal, accounting, treasury, insurance, internal audit, risk management, information technology and human resources, to benefit from economies of scale. Our Corporate non-operating segment also includes general and administrative expenses related to operating our corporate headquarters. All of the expenses incurred by Corporate are allocated to each of the homebuilding reporting segments based on their respective percentage of revenues.
The reportable segments follow the same accounting policies used for our consolidated financial statements, as described in Note 1, Organization, Basis of Presentation and Summary of Significant Accounting Policies. Operational results of each reportable segment are not necessarily indicative of the results that would have been achieved had the reportable segment been an independent, stand-alone entity during the periods presented.
Total revenues and income before income taxes for each of our reportable segments were as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Revenues
West $690,577 $544,168 $1,921,817 $1,550,905 
Central262,485 165,322 838,302 529,952 
East173,961 118,268 431,062 344,645 
Total homebuilding revenues1,127,023 827,758 3,191,181 2,425,502 
Financial services17,650 10,758 47,818 30,004 
Total$1,144,673 $838,516 $3,238,999 $2,455,506 
Income before income taxes
West$92,261 $60,965 $255,643 $186,372 
Central32,327 19,075 119,645 50,917 
East21,592 14,880 50,150 38,271 
Total homebuilding income before income taxes146,180 94,920 425,438 275,560 
Financial services5,367 4,631 15,918 10,641 
Total$151,547 $99,551 $441,356 $286,201 
 
Total real estate inventories and total assets for each of our reportable segments, as of the date indicated, were as follows (in thousands):
September 30, 2024December 31, 2023
Real estate inventories
West$2,159,917 $2,209,113 
Central813,793 762,051 
East438,923 366,319 
Total$3,412,633 $3,337,483 
Total assets(1)
West$2,430,880 $2,557,608 
Central985,021 947,200 
East483,872 421,630 
Corporate742,483 941,824 
Total homebuilding assets4,642,256 4,868,262 
Financial services136,999 46,326 
Total$4,779,255 $4,914,588 
__________
(1)    Total assets as of September 30, 2024 and December 31, 2023 includes $139.3 million of goodwill, with $125.4 million included in the West segment, $8.3 million included in the Central segment and $5.6 million included in the East segment. Total Corporate assets as of September 30, 2024 and December 31, 2023 includes our Tri Pointe Homes trade name. For further details on goodwill and our intangible assets, see Note 8, Goodwill and Other Intangible Assets.