Operating and Reporting Segments

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Operating and Reporting Segments

OPERATING AND REPORTING SEGMENTS

As of December 31, 2015, we realigned our homebuilding reporting segments to be the East, Central and West homebuilding operating regions. Within these, we have multiple homebuilding operating divisions which 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 divisions into reporting segments based on similar long-term economic characteristics. We also have a mortgage and title services reporting segment. We have no inter-segment sales as all sales are to external customers.

Our reporting segments are as follows:

East	Atlanta, Charlotte, North Florida, Raleigh, Southwest Florida and Tampa
Central	Austin, Dallas and Houston (which includes a Taylor Morrison division and a Darling Homes division)
West	Bay Area, Chicago, Denver, Phoenix, Sacramento and Southern California
Mortgage Operations	Taylor Morrison Home Funding and Inspired Title

Management primarily evaluates homebuilding segment performance based on GAAP gross margin, defined as homebuilding and land revenue less cost of home construction, land development and other land sales costs and other costs incurred by, or allocated to each segment, including impairments. Operating results for each segment may not be indicative of the results for such segment had it been an independent, stand-alone entity.

As a result of our realignment, historical periods in the financial statements have been recast to give effect to the segment changes. Segment information, excluding discontinued operations, is as follows (in thousands):

	Three Months Ended September 30, 2016
	East			Central			West			Mortgage Operations		Corporate and Unallocated			Total
Total revenues	$	278,152		$	244,578		$	316,873		$	13,814	$	—		$	853,417
Gross margin	69,473			48,016			55,428			5,937		—			178,854
Selling, general and administrative expenses	(25,505		)	(22,765		)	(21,945		)	—		(18,006		)	(88,221		)
Equity in income of unconsolidated entities	132			331			319			864		—			1,646
Interest and other (expense)/income, net	(562		)	(1,172		)	(512		)	4		354			(1,888		)
Income/(loss) from continuing operations before income taxes	$	43,538		$	24,410		$	33,290		$	6,805	$	(17,652	)	$	90,391

	Three Months Ended September 30, 2015
	East			Central			West			Mortgage Operations			Corporate and Unallocated			Total
Total revenues	$	223,625		$	255,400		$	305,947		$	11,316		$	—		$	796,288
Gross margin	47,459			49,532			48,127			4,354			—			149,472
Selling, general and administrative expenses	(20,536		)	(21,926		)	(19,822		)	(2		)	(16,460		)	(78,746		)
Equity in (loss)/income of unconsolidated entities	—			(427		)	(197		)	504			—			(120		)
Interest and other (expense)/income, net	(825		)	(3,113		)	(108		)	—			1,686			(2,360		)
Income/(loss) from continuing operations before income taxes	$	26,098		$	24,066		$	28,000		$	4,856		$	(14,774	)	$	68,246

	Nine Months Ended September 30, 2016
	East			Central			West			Mortgage Operations		Corporate and Unallocated			Total
Total revenues	$	711,681		$	687,088		$	917,342		$	36,951	$	—		$	2,353,062
Gross margin	160,130			129,312			153,448			14,357		—			457,247
Selling, general and administrative expenses	(72,123		)	(65,532		)	(64,375		)	—		(54,348		)	(256,378		)
Equity in income of unconsolidated entities	440			110			1,303			2,881		—			4,734
Interest and other (expense)/income, net	(2,517		)	(3,232		)	(1,462		)	14		(1,256		)	(8,453		)
Income/(loss) from continuing operations before income taxes	$	85,930		$	60,658		$	88,914		$	17,252	$	(55,604	)	$	197,150

	Nine Months Ended September 30, 2015
	East			Central			West			Mortgage Operations			Corporate and Unallocated			Total
Total revenues	$	523,435		$	706,475		$	747,972		$	28,794		$	—		$	2,006,676
Gross margin	113,813			135,719			120,507			10,674			—			380,713
Selling, general and administrative expenses	(49,742		)	(61,553		)	(50,633		)	(2		)	(44,965		)	(206,895		)
Equity in income/(loss) of unconsolidated entities	241			188			(619		)	1,598			—			1,408
Interest and other (expense)/income, net	(1,850		)	(10,136		)	421			—			105			(11,460		)
Loss on extinguishment of debt	—			—			—			—			(33,317		)	(33,317		)
Gain on foreign currency forward	—			—			—			—			29,983			29,983
Income/(loss) from continuing operations before income taxes	$	62,462		$	64,218		$	69,676		$	12,270		$	(48,194	)	$	160,432

	As of September 30, 2016
	East		Central		West		Mortgage Operations		Corporate and Unallocated		Total
Real estate inventory and land deposits	$	1,094,243	$	797,192	$	1,430,953	$	—	$	—	$	3,322,388
Investments in unconsolidated entities	25,556		29,479		93,356		3,215		—		151,606
Other assets	61,192		144,311		60,279		144,454		385,305		795,541
Total assets	$	1,180,991	$	970,982	$	1,584,588	$	147,669	$	385,305	$	4,269,535

	As of December 31, 2015
	East		Central		West		Mortgage Operations		Corporate and Unallocated		Total
Real estate inventory and land deposits	$	927,359	$	757,863	$	1,475,678	$	—	$	—	$	3,160,900
Investments in unconsolidated entities	24,098		28,832		72,646		2,872		—		128,448
Other assets	52,817		164,192		74,379		237,430		299,228		828,046
Total assets	$	1,004,274	$	950,887	$	1,622,703	$	240,302	$	299,228	$	4,117,394