Segment Information

9 Months Ended

Sep. 30, 2018

Our Homebuilding operations are engaged in the acquisition and development of land primarily for residential purposes within the U.S. and the construction of housing on such land. For reporting purposes, our Homebuilding operations are aggregated into six reportable segments:



Northeast:		Connecticut, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, Virginia
Southeast:		Georgia, North Carolina, South Carolina, Tennessee
Florida:		Florida
Midwest:		Illinois, Indiana, Kentucky, Michigan, Minnesota, Missouri, Ohio
Texas:		Texas
West:		Arizona, California, Nevada, New Mexico, Washington

We also have a reportable segment for our Financial Services operations, which consist principally of mortgage banking and title operations and operate generally in the same markets as the Homebuilding segments.



	Operating Data by Segment ($000’s omitted)
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2018			2017			2018			2017
Revenues:
Northeast	$	185,614		$	168,371		$	518,676		$	425,275
Southeast	451,600			393,905			1,271,730			1,104,149
Florida	506,670			338,078			1,311,016			1,015,795
Midwest	412,803			406,126			1,066,775			1,008,617
Texas	347,986			269,997			925,317			793,207
West	693,073			507,629			1,945,345			1,299,758
	2,597,746			2,084,106			7,038,859			5,646,801
Financial Services	51,620			46,952			150,322			135,995
Consolidated revenues	$	2,649,366		$	2,131,058		$	7,189,181		$	5,782,796

Income (loss) before income taxes (a):
Northeast	$	18,938		$	21,046		$	53,408		$	(12,803	)
Southeast	51,920			45,109			146,735			117,749
Florida (b)	73,802			52,191			186,238			132,824
Midwest	52,438			59,636			123,889			115,463
Texas	55,382			42,727			136,777			122,045
West (c)	138,698			75,753			382,317			107,987
Other homebuilding (d)	(26,123		)	(45,999		)	(65,497		)	(103,441		)
	365,055			250,463			963,867			479,824
Financial Services	19,633			17,786			54,182			50,238
Consolidated income before income taxes	$	384,688		$	268,249		$	1,018,049		$	530,062


(a)	Includes land-related charges, as summarized in the table below.


(b)	Florida includes a warranty charge of $12.3 million for the nine months ended September 30, 2017 related to a closed-out community (see Note 8).


(c)	West includes gains of $26.4 million related to two land sale transactions in California in the nine months ended September 30, 2018.

(d)

Other homebuilding includes the amortization of intangible assets and capitalized interest and other items not allocated to the operating segments. Other homebuilding also includes insurance reserve reversals of $37.9 million and $19.8 million for the nine months ended September 30, 2018 and 2017, respectively, and write-offs of $5.3 million and $20.3 million of insurance receivables associated with the resolution of certain insurance matters in the three and nine months ended September 30, 2017, respectively (see Note 8).



	Operating Data by Segment ($000’s omitted)
	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2018		2017			2018		2017
Land-related charges*:
Northeast	$	1,385	$	1,184		$	3,068	$	51,102
Southeast	663		889			2,394		1,847
Florida	262		109			671		8,862
Midwest	4,960		(393		)	6,078		7,703
Texas	47		51			317		898
West	425		306			786		56,747
Other homebuilding	391		—			659		4,095
	$	8,133	$	2,146		$	13,973	$	131,254


*	Land-related charges include land impairments, net realizable value adjustments on land held for sale, impairments of investments in unconsolidated entities, and write-offs of deposits and pre-acquisition costs for land option contracts we elected not to pursue (see Note 2). Other homebuilding consists primarily of write-offs of capitalized interest related to such land-related charges.



	Operating Data by Segment
	($000's omitted)
	September 30, 2018
	Homes Under Construction		Land Under Development		Raw Land		Total Inventory		Total Assets
Northeast	$	339,103	$	256,014	$	84,066	$	679,183	$	809,194
Southeast	497,241		645,915		79,846		1,223,002		1,388,798
Florida	528,092		885,220		73,209		1,486,521		1,632,772
Midwest	366,559		426,349		27,375		820,283		904,671
Texas	333,250		424,500		88,376		846,126		917,529
West	871,553		1,093,490		121,685		2,086,728		2,280,912
Other homebuilding (a)	56,889		270,519		20,203		347,611		1,658,881
	2,992,687		4,002,007		494,760		7,489,454		9,592,757
Financial Services	—		—		—		—		462,323
	$	2,992,687	$	4,002,007	$	494,760	$	7,489,454	$	10,055,080



	Operating Data by Segment
	($000's omitted)
	December 31, 2017
	Homes Under Construction		Land Under Development		Raw Land		Total Inventory		Total Assets
Northeast	$	234,413	$	327,599	$	73,574	$	635,586	$	791,511
Southeast	433,411		613,626		121,238		1,168,275		1,287,992
Florida	359,651		876,856		109,069		1,345,576		1,481,837
Midwest	299,896		476,694		28,482		805,072		877,282
Texas	251,613		435,018		87,392		774,023		859,847
West	798,706		1,137,940		147,493		2,084,139		2,271,328
Other homebuilding (a)	43,715		268,081		22,663		334,459		1,469,234
	2,421,405		4,135,814		589,911		7,147,130		9,039,031
Financial Services	—		—		—		—		647,618
	$	2,421,405	$	4,135,814	$	589,911	$	7,147,130	$	9,686,649

(a)

Other homebuilding primarily includes cash and equivalents, capitalized interest, intangibles, deferred tax assets, and other corporate items that are not allocated to the operating segments.