OPERATING AND REPORTING SEGMENTS

3 Months Ended

Mar. 31, 2020

We 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 home and land closing revenues less cost of home and land closings, 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, “Organization and Basis of Presentation.” 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:


	Three Months Ended March 31,
	2020		2019
Homebuilding revenue ⁽¹⁾:
West	$	382,248	$	272,966
Central	260,127		191,606
East	258,638		243,573
Consolidated total	$	901,013	$	708,145
Homebuilding segment operating income:
West	$	41,894	$	18,308
Central	28,919		12,336
East	21,761		9,693
Total homebuilding segment operating income	92,574		40,337
Financial services segment profit	2,838		4,702
Corporate and unallocated costs ⁽²⁾	(9,174)		(9,630)
Interest expense	(16)		(4,085)
Other income, net	611		1,046
Net earnings before income taxes	$	86,833	$	32,370

(1)Homebuilding revenue includes the following land closing revenue, by segment, as outlined in the table below:


	Three Months Ended March 31,
	2020		2019
Land closing revenue:
West	$	4,518	$	—
Central	4,218		—
East	1,860		9,495
Total	$	10,596	$	9,495

(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 services reporting segments.


	At March 31, 2020
	West			Central			East			Financial Services		Corporate and Unallocated			Total
Deposits on real estate under option or contract	$	12,501		$	14,304		$	27,362		$	—	$	—		$	54,167
Real estate	1,225,450			723,796			840,544			—		—			2,789,790
Investments in unconsolidated entities	261			2,516			—			—		502			3,279
Other assets	50,828		(1)	110,932		(2)	76,800		(3)	611		828,049		(4)	1,067,220
Total assets	$	1,289,040		$	851,548		$	944,706		$	611	$	828,551		$	3,914,456

(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 (see Note 9), prepaid expenses and other assets and property and equipment.

(4)Balance consists primarily of cash, our deferred tax asset and prepaid expenses and other assets.


	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.