OPERATING AND REPORTING SEGMENTS

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

OPERATING AND REPORTING SEGMENTS

OPERATING AND REPORTING SEGMENTS

We operate with two principal business segments: homebuilding and financial services. As defined in ASC 280-10, Segment Reporting, we have ten 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, Colorado and Utah
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 revenue less cost of home and land closings, including land development and other land sales costs, commissions and other sales costs, and other general and administrative 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 September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Homebuilding revenue (1):
West	$	598,147	$	460,089	$	1,580,456	$	1,305,684
Central	500,582		383,206		1,280,242		1,109,228
East	479,292		416,610		1,416,638		1,206,373
Consolidated total	$	1,578,021	$	1,259,905	$	4,277,336	$	3,621,285
Homebuilding segment operating income:
West	$	121,060	$	95,167	$	357,319	$	238,356
Central	112,141		90,579		287,604		232,537
East	104,872		83,853		317,815		207,509
Total homebuilding segment operating income	338,073		269,599		962,738		678,402
Financial services segment profit	4,842		4,224		12,255		12,599
Corporate and unallocated costs (2)	(13,350)		(13,303)		(27,034)		(32,673)
Interest expense	—		(79)		(41)		(246)
Other (expense)/ income, net	(74)		1,268		(849)		3,443
Loss on early extinguishment of debt	—		—		—		(18,188)
Earnings before income taxes	$	329,491	$	261,709	$	947,069	$	643,337

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Land closing revenue:
West	$	8,120	$	8,470	$	40,927	$	21,426
Central	869		—		10,374		3,799
East	—		—		2,600		—
Total	$	8,989	$	8,470	$	53,901	$	25,225

(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 September 30, 2022
	West			Central			East			Financial Services		Corporate  and Unallocated			Total
Deposits on real estate under option or contract	$	25,211		$	9,223		$	53,994		$	—	$	—		$	88,428
Real estate	1,910,289			1,409,875			1,406,098			—		—			4,726,262
Investments in unconsolidated entities	110			2,897			7,381			—		968			11,356
Other assets	72,913		(1)	217,266		(2)	96,315		(3)	610		357,940		(4)	745,044
Total assets	$	2,008,523		$	1,639,261		$	1,563,788		$	610	$	358,908		$	5,571,090

(1)Balance consists primarily of cash and cash equivalents, prepaids and other assets and property and equipment, net.

(2)Balance consists primarily of cash and cash equivalents, development reimbursements from local municipalities and prepaids and other assets.

(3)Balance consists primarily of cash and cash equivalents, goodwill (see Note 9), prepaids and other assets and property and equipment, net.

(4)Balance consists primarily of cash and cash equivalents, deferred tax assets and prepaids and other assets.

	At December 31, 2021
	West			Central			East			Financial Services		Corporate  and Unallocated			Total
Deposits on real estate under option or contract	$	26,687		$	11,132		$	52,860		$	—	$	—		$	90,679
Real estate	1,571,477			1,076,300			1,086,631			—		—			3,734,408
Investments in unconsolidated entities	87			2,974			1,707			—		996			5,764
Other assets	66,897		(1)	199,791		(2)	102,073		(3)	610		607,311		(4)	976,682
Total assets	$	1,665,148		$	1,290,197		$	1,243,271		$	610	$	608,307		$	4,807,533

(1)Balance consists primarily of cash and cash equivalents, development reimbursements from local municipalities and property and equipment, net.

(2)Balance consists primarily of cash and cash equivalents, development reimbursements from local municipalities and prepaids and other assets.

(3)Balance consists primarily of cash and cash equivalents, real estate not owned, goodwill, prepaids and other assets and property and equipment, net.

(4)Balance consists primarily of cash and cash equivalents, deferred tax assets and prepaids and other assets.