REPORTING SEGMENTS

We have multiple homebuilding operating components 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 components into three reporting segments, East, Central, and West, 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.

During the quarter ended March 31, 2017, we realigned our homebuilding operating divisions within our existing segments based on geographic location and management's long term strategic plans. As a result, all historical periods presented in the segment information have been reclassified to give effect to this segment realignment.

Our reporting segments are as follows:



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

Segment information is as follows (in thousands):



	Three Months Ended September 30, 2017
	East			Central			West			Mortgage Operations		Corporate and Unallocated			Total
Total revenues	$	312,539		$	256,842		$	321,167		$	17,479	$	—		$	908,027

Gross margin	63,188			47,797			54,924			5,409		—			171,318
Selling, general and administrative expenses	(28,469		)	(25,108		)	(19,087		)	—		(22,186		)	(94,850		)
Equity in income of unconsolidated entities	—			693			924			1,170		—			2,787
Interest and other (expense)/income, net	(7		)	(87		)	46			—		(232		)	(280		)
Income/(loss) before income taxes	$	34,712		$	23,295		$	36,807		$	6,579	$	(22,418	)	$	78,975



	Three Months Ended September 30, 2016
	East			Central			West			Mortgage Operations		Corporate and Unallocated			Total
Total revenues	$	288,639		$	273,095		$	277,869		$	13,814	$	—		$	853,417

Gross margin	70,026			51,267			51,624			5,937		—			178,854
Selling, general and administrative expenses	(26,866		)	(24,842		)	(18,507		)	—		(18,006		)	(88,221		)
Equity in income of unconsolidated entities	132			331			319			864		—			1,646
Interest and other (expense)/income, net	(1,260		)	(1,148		)	162			4		354			(1,888		)
Income/(loss) before income taxes	$	42,032		$	25,608		$	33,598		$	6,805	$	(17,652	)	$	90,391



	Nine Months Ended September 30, 2017
	East			Central			West			Mortgage Operations		Corporate and Unallocated			Total
Total revenues	$	896,258		$	730,659		$	911,332		$	47,362	$	—		$	2,585,611

Gross margin	185,534			133,418			148,991			16,488		—			484,431
Selling, general and administrative expenses	(84,975		)	(72,533		)	(56,994		)	—		(64,503		)	(279,005		)
Equity in income of unconsolidated entities	—			751			1,526			4,666		—			6,943
Interest and other (expense)/income, net	(220		)	171			(146		)	—		(319		)	(514		)
Income/(loss) before income taxes	$	100,339		$	61,807		$	93,377		$	21,154	$	(64,822	)	$	211,855



	Nine Months Ended September 30, 2016
	East			Central			West			Mortgage Operations		Corporate and Unallocated			Total
Total revenues	$	737,550		$	767,825		$	810,736		$	36,951	$	—		$	2,353,062

Gross margin	161,437			138,647			142,806			14,357		—			457,247
Selling, general and administrative expenses	(76,027		)	(71,727		)	(54,276		)	—		(54,348		)	(256,378		)
Equity in income of unconsolidated entities	440			110			1,303			2,881		—			4,734
Interest and other (expense)/income, net	(3,821		)	(3,140		)	(250		)	14		(1,256		)	(8,453		)
Income/(loss) before income taxes	$	82,029		$	63,890		$	89,583		$	17,252	$	(55,604	)	$	197,150



	As of September 30, 2017
	East		Central		West		Mortgage Operations		Corporate and Unallocated		Total
Real estate inventory and land deposits	$	1,236,731	$	906,024	$	1,151,895	$	—	$	—	$	3,294,650
Investments in unconsolidated entities	27,593		32,695		120,914		3,615		—		184,817
Other assets	58,004		126,162		51,277		153,728		448,690		837,861
Total assets	$	1,322,328	$	1,064,881	$	1,324,086	$	157,343	$	448,690	$	4,317,328



	As of December 31, 2016
	East		Central		West		Mortgage Operations		Corporate and Unallocated		Total
Real estate inventory and land deposits	$	1,110,340	$	829,354	$	1,114,758	$	—	$	—	$	3,054,452
Investments in unconsolidated entities	25,923		30,146		98,625		3,215		—		157,909
Other assets	80,320		139,383		43,304		269,131		476,427		1,008,565
Total assets	$	1,216,583	$	998,883	$	1,256,687	$	272,346	$	476,427	$	4,220,926