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Segment Information
6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Segment Information Segment Information
We operate two principal businesses: homebuilding and financial services.
In accordance with ASC Topic 280, Segment Reporting, in determining the most appropriate reportable segments within our homebuilding business, we have considered similar economic and other characteristics, including product types, average sales prices, gross profits, production processes, suppliers, subcontractors, regulatory environments, land acquisition results, and underlying demand and supply. Based upon these factors and in consideration of the geographical layout of our homebuilding markets, we have identified three homebuilding reporting segments and, as such, our homebuilding segments are reported under the following hierarchy:
West region: Arizona, California, Nevada and Washington
Central region: Colorado and Texas
East region: District of Columbia, Maryland, North Carolina, South Carolina and Virginia
Our Tri Pointe Solutions financial services operation is a reportable segment and is comprised of our Tri Pointe Connect mortgage financing operations, our Tri Pointe Assurance title and escrow services operations, and our Tri Pointe Advantage property and casualty insurance agency operations. For further details, see Note 1, Organization, Basis of Presentation and Summary of Significant Accounting Policies.
Corporate is a non-operating segment that develops and implements company-wide strategic initiatives and provides support to our homebuilding reporting segments by centralizing certain administrative functions, such as marketing, legal, accounting, treasury, insurance, internal audit, risk management, information technology and human resources, to benefit from economies of scale. Our Corporate non-operating segment also includes general and administrative expenses related to operating our corporate headquarters. All of the expenses incurred by Corporate are allocated to each of the homebuilding reporting segments based on their respective percentage of revenues.
The reportable segments follow the same accounting policies used for our consolidated financial statements, as described in Note 1, Organization, Basis of Presentation and Summary of Significant Accounting Policies. Operational results of each reportable segment are not necessarily indicative of the results that would have been achieved had the reportable segment been an independent, stand-alone entity during the periods presented.
Total revenues and income before income taxes for each of our reportable segments were as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Revenues
West $525,796 $670,692 $1,006,737 $1,201,188 
Central198,490 214,402 364,630 351,499 
East102,673 120,367 226,377 180,266 
Total homebuilding revenues826,959 1,005,461 1,597,744 1,732,953 
Financial services10,370 12,228 19,246 20,980 
Total$837,329 $1,017,689 $1,616,990 $1,753,933 
Income before income taxes
West$52,496 $129,604 $125,407 $230,161 
Central17,903 33,896 31,842 46,847 
East10,079 14,468 23,391 16,194 
Total homebuilding income before income taxes80,478 177,968 180,640 293,202 
Financial services2,965 5,906 6,010 9,396 
Total$83,443 $183,874 $186,650 $302,598 
 
Total real estate inventories and total assets for each of our reportable segments, as of the date indicated, were as follows (in thousands):
June 30, 2023December 31, 2022
Real estate inventories
West$2,254,830 $2,258,606 
Central615,457 598,700 
East323,041 316,543 
Total$3,193,328 $3,173,849 
Total assets(1)
West$2,530,461 $2,552,121 
Central781,923 761,082 
East379,067 376,129 
Corporate1,050,694 978,748 
Total homebuilding assets4,742,145 4,668,080 
Financial services38,414 51,860 
Total$4,780,559 $4,719,940 
__________
(1)    Total assets as of June 30, 2023 and December 31, 2022 includes $139.3 million of goodwill, with $125.4 million included in the West segment, $8.3 million included in the Central segment and $5.6 million included in the East segment. Total Corporate assets as of June 30, 2023 and December 31, 2022 includes our Tri Pointe Homes trade name. For further details on goodwill and our intangible assets, see Note 8, Goodwill and Other Intangible Assets.