OPERATING AND REPORTING SEGMENTS

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

OPERATING AND REPORTING SEGMENTS

OPERATING AND REPORTING SEGMENTSWe operate with two principal business segments: homebuilding and financial services. As defined in ASC 280-10, Segment Reporting, we have nine homebuilding operating segments. The homebuilding segments are engaged in the business of

acquiring and developing land, constructing homes, marketing and selling those homes and providing warranty and customer services. We aggregate our homebuilding operating segments into reporting segments based on similar long-term economic characteristics and geographical proximity. Our current reportable homebuilding segments are as follows:

West:        Arizona, California and Colorado

Central:   Texas

East:        Florida, Georgia, North Carolina, South Carolina and Tennessee

Management’s evaluation of segment performance is based on segment operating income, which we define as homebuilding and land revenues less cost of home construction, commissions and other sales costs, land development and other land sales costs and other costs incurred by or allocated to each segment, including impairments. Each reportable segment follows the same accounting policies described in Note 1, “Business and Summary of Significant Accounting Policies.” Operating results for each segment may not be indicative of the results for such segment had it been an independent, stand-alone entity for the periods presented. The following segment information is in thousands:

	Years Ended December 31,
	2019		2018		2017
Homebuilding revenue (1):
West	$	1,422,516	$	1,436,334	$	1,437,860
Central	1,038,052		1,013,878		904,908
East	1,189,915		1,063,207		884,004
Consolidated total	3,650,483		3,513,419		3,226,772
Homebuilding segment operating income:
West	141,435		134,852		129,781
Central	101,686		92,925		92,451
East	87,285		59,522		32,089
Total homebuilding segment operating income	330,406		287,299		254,321
Financial services segment profit	20,579		24,044		22,055
Corporate and unallocated costs (2)	(43,612)		(38,521)		(33,510)
Interest expense	(8,370)		(785)		(3,853)
Other income, net (3)	9,577		11,217		8,784
Loss on early extinguishment of debt	(5,635)		—		(278)
Net earnings before income taxes	$	302,945	$	283,254	$	247,519

(1)Homebuilding revenue includes the following land closing revenue, by segment:

	Years Ended December 31,
Land closing revenue:	2019		2018		2017
West	$	12,463	$	18,508	$	18,116
Central	4,297		7,657		622
East	29,094		12,542		21,259
Total	$	45,854	$	38,707	$	39,997

(2)Balance consists primarily of corporate costs and numerous shared service functions such as finance and treasury that are not allocated to the homebuilding or financial reporting segments.

(3)For the year ended December 31, 2018, Other income, net includes a favorable $4.8 million legal settlement from long-standing litigation related to a previous joint venture in Nevada.

	At December 31, 2019
	West			Central			East			Financial Services		Corporate and Unallocated			Total
Deposits on real estate under option or contract	$	10,568		$	10,963		$	29,370		$	—	$	—		$	50,901
Real estate	1,223,949			708,786			811,626			—		—			2,744,361
Investments in unconsolidated entities	260			3,508			—			—		675			4,443
Other assets	58,173		(1)	107,791		(2)	83,475		(3)	765		348,340		(4)	598,544
Total assets	$	1,292,950		$	831,048		$	924,471		$	765	$	349,015		$	3,398,249

(1)Balance consists primarily of cash and property and equipment.

(2)Balance consists primarily of development reimbursements from local municipalities and prepaid expenses and other assets.

(3)Balance consists primarily of goodwill, prepaid expenses and other assets, and property and equipment.

(4)Balance consists primarily of cash.

	At December 31, 2018
	West			Central			East			Financial Services		Corporate  and Unallocated			Total
Deposits on real estate under option or contract	$	7,514		$	13,870		$	30,026		$	—	$	—		$	51,410
Real estate	1,188,975			679,422			874,224			—		—			2,742,621
Investments in unconsolidated entities	8,320			6,396			—			—		2,764			17,480
Other assets	51,115		(1)	117,150		(2)	85,869		(3)	1,013		298,821		(4)	553,968
Total assets	$	1,255,924		$	816,838		$	990,119		$	1,013	$	301,585		$	3,365,479

(1)Balance consists primarily of cash and property and equipment.

(2)Balance consists primarily of development reimbursements from local municipalities and cash.

(3)Balance consists primarily of goodwill, cash and property and equipment.

(4)Balance consists primarily of cash.