Reporting Segments

9 Months Ended

Sep. 30, 2022

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 offers a wide range of buyer profiles including: entry-level, 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 entry-level homebuyers, primarily sells homes through retail studios and the internet, and generally 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 Century Communities 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 (Florida, Georgia, North Carolina, South Carolina, and Tennessee)

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

We have 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.

Additionally, our wholly owned subsidiary, Century Living, LLC, is engaged in the development, construction and management of multi-family rental properties, primarily in Colorado, with the intent to dispose of properties shortly after achieving stabilized rental operations. Century Living, LLC is included in our Corporate segment. 

The following table summarizes total revenue and income (loss) before income tax expense by segment (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Revenue:
West	$	255,413	$	268,279	$	811,961	$	691,472
Mountain		288,620		263,587		852,981		863,901
Texas		115,857		87,250		363,297		307,774
Southeast		196,787		131,297		526,944		520,221
Century Complete		264,343		178,518		699,226		533,558
Financial Services		23,271		29,101		72,373		92,586
Corporate		—		—		—		—
Total revenue	$	1,144,291	$	958,032	$	3,326,782	$	3,009,512
Income (loss) before income tax expense:
West	$	51,036	$	60,915	$	200,213	$	129,279
Mountain		51,058		50,561		159,559		158,355
Texas		17,084		11,884		62,978		39,554
Southeast		38,400		20,004		108,053		69,540
Century Complete		36,939		24,838		101,769		69,657
Financial Services		9,349		11,435		29,111		38,451
Corporate		(31,792)		(33,876)		(87,185)		(75,892)
Total income before income tax expense	$	172,074	$	145,761	$	574,498	$	428,944

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

	September 30,		December 31,
	2022		2021
West	$	785,994	$	668,830
Mountain		1,135,788		1,008,481
Texas		499,751		322,302
Southeast		451,104		360,644
Century Complete		510,290		371,096
Financial Services		357,431		533,159
Corporate		139,706		232,364
Total assets	$	3,880,064	$	3,496,876

Corporate assets primarily include certain cash and cash equivalents, certain property and equipment, costs associated with development of multi-family rental properties, prepaid insurance, and deferred financing costs on our revolving line of credit.