Reporting Segments

9 Months Ended

Sep. 30, 2020

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 17 states. We build and sell homes under our Century Communities and Century Complete 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 and second time move up, and lifestyle 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 Century Complete brand targets first time homebuyers, primarily sells homes through retail studios and the internet, and provides no option or upgrade selections. Our Century Complete brand currently has operations in 11 states and is managed separately from our four geographic regions. Accordingly, it is considered a separate operating segment.

The management of our four geographic regions and Century Complete 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 (Arizona, Colorado, Nevada, and Utah)

Texas

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

Century Complete (Alabama, Arizona, Florida, Georgia, Indiana, Iowa, Michigan, North Carolina, Ohio, South Carolina, and Texas)

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 they serve to support our homebuilding, and to a lesser extent our financial services operations, through functions, such as our executive, finance, treasury, human resources, accounting and legal departments. The following table summarizes total revenue and income before income tax expense by segment (in thousands): 

‎

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Revenue:
West	$	188,495	$	116,874	$	486,507	$	364,220
Mountain		222,262		171,617		570,983		510,693
Texas		76,776		68,812		235,618		180,820
Southeast		152,858		118,610		458,986		356,236
Century Complete		121,953		104,030		353,786		302,666
Financial Services		32,017		10,419		67,534		28,734
Corporate		—		—		—		—
Total revenue	$	794,361	$	590,362	$	2,173,414	$	1,743,369
Income (loss) before income tax expense:
West	$	13,627	$	9,013	$	42,716	$	27,634
Mountain		28,695		20,552		67,789		62,386
Texas		6,904		8,290		22,012		17,626
Southeast		13,414		7,079		33,743		17,467
Century Complete		7,826		6,032		17,159		18,323
Financial Services		17,506		2,245		30,693		5,984
Corporate		(23,087)		(18,371)		(65,036)		(70,753)
Total income before income tax expense	$	64,885	$	34,840	$	149,076	$	78,667

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

	September 30,		December 31,
	2020		2019
West	$	542,622	$	610,248
Mountain		708,076		635,201
Texas		202,177		232,887
Southeast		360,424		441,818
Century Complete		170,126		244,827
Financial Services		299,887		254,282
Corporate		308,049		80,704
Total assets	$	2,591,361	$	2,499,967

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