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Reporting Segments
9 Months Ended
Sep. 30, 2018
Reporting Segments [Abstract]  
Reporting Segments



2. Reporting Segments

Our homebuilding operations are engaged in the development, design, construction, marketing and sale of single-family attached and detached homes in 15 states.  We build and sell homes under our Century Communities and Wade Jurney Homes brands.  Our Century Communities brand is managed by geographic location, and each of our four geographic regions targets a wide range of buyer profiles including: first time, first time move up, and active adult homebuyers, and provides our homebuyers with the ability to personalize their homes through certain option and upgrade selections.  Each of our four geographic regions is considered a separate operating segment.  Our Wade Jurney Homes brand solely targets first time homebuyers in markets which are traditionally underserved by new homebuilders, sells homes through retail studios, and provides no option or upgrade selections.  Our Wade Jurney Homes brand currently has operations in eight states and is managed separately from our four geographic regions, accordingly, it is considered a separate operating segment.

The management of each of our four geographic regions and Wade Jurney Homes reports to our chief operating decision makers (which we refer to as “CODMs”), the Co-Chief Executive Officers of our Company.  The CODMs review the results of our operations, including total revenue and income before income tax expense to determine profitability and to allocate resources. Accordingly, we have presented our homebuilding operations as the following five reportable segments:

·

West (California and Washington)

·

Mountain (Colorado, Nevada and Utah)

·

Texas

·

Southeast (Georgia, North Carolina, South Carolina and Tennessee)

·

Wade Jurney Homes (Alabama, Arizona, Georgia, Indiana, North Carolina, Ohio, South Carolina, and Florida)

We have also identified our Financial Services operations, which provide mortgage, title, and insurance services to our homebuyers, as a sixth reportable segment.  Our Corporate operations are a non-operating segment, as it serves to support our homebuilding operations through functions, such as our executive, finance, treasury, human resources, and accounting departments. 

The following table summarizes total revenue and income before income tax expense by operating segment, where adjustments for purchase price accounting are included in the relative segment (in thousands):





 

 

 

 

 

 

 

 

 

 

 



Three months ended September 30,

 

Nine months ended September 30,



2018

 

2017

 

2018

 

2017

Revenue:

 

 

 

 

 

 

 

 

 

 

 

West

$

105,949 

 

$

73,684 

 

$

354,087 

 

$

73,684 

Mountain

 

162,912 

 

 

157,224 

 

 

488,928 

 

 

443,526 

Texas

 

56,220 

 

 

36,757 

 

 

157,793 

 

 

111,997 

Southeast

 

141,458 

 

 

109,096 

 

 

360,653 

 

 

265,951 

Wade Jurney Homes

 

87,468 

 

 

 —

 

 

112,714 

 

 

 —

Financial Services

 

7,722 

 

 

2,955 

 

 

21,292 

 

 

4,697 

Corporate

 

 —

 

 

 —

 

 

 —

 

 

 —

Total revenue

$

561,729 

 

$

379,716 

 

$

1,495,467 

 

$

899,855 



 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income tax expense:

 

 

 

 

 

 

 

 

 

 

 

West

$

7,478 

 

$

5,259 

 

$

29,494 

 

$

5,259 

Mountain

 

18,753 

 

 

19,101 

 

 

61,995 

 

 

56,137 

Texas

 

3,539 

 

 

2,166 

 

 

10,319 

 

 

6,407 

Southeast

 

10,401 

 

 

6,001 

 

 

24,106 

 

 

16,609 

Wade Jurney Homes

 

451 

 

 

 —

 

 

265 

 

 

 —

Financial Services

 

1,666 

 

 

505 

 

 

5,456 

 

 

(192)

Corporate

 

(19,430)

 

 

(17,876)

 

 

(39,167)

 

 

(33,904)

Total income before income tax expense

$

22,858 

 

$

15,156 

 

$

92,468 

 

$

50,316 



The following table summarizes total assets by operating segment (in thousands):



 

 

 

 

 

 



 

September 30,

 

December 31,



 

2018

 

2017

West

 

$

479,280 

 

$

394,215 

Mountain

 

 

639,811 

 

 

571,880 

Texas

 

 

216,851 

 

 

192,078 

Southeast

 

 

468,144 

 

 

401,618 

Wade Jurney Homes

 

 

178,511 

 

 

Financial Services

 

 

89,238 

 

 

63,137 

Corporate

 

 

80,659 

 

 

112,094 

Total assets

 

$

2,152,494 

 

$

1,735,022 

Corporate assets primarily include certain cash and cash equivalents, certain property and equipment, our investment in unconsolidated subsidiaries, prepaid insurance, and deferred financing costs on our revolving line of credit.