Operating and Reporting Segments |
16. OPERATING AND REPORTING SEGMENTS
We have twelve homebuilding operating divisions which are
aggregated into two reportable homebuilding segments. These
segments are engaged in the business of acquiring and developing
land, constructing homes, marketing and selling those homes, and
providing warranty and customer service. We aggregate our
homebuilding operating segments into reporting segments based on
similar long-term economic characteristics. We also have a mortgage
and financial services segment. We have no inter-segment sales as
all sales are to external customers. Our reporting segments are as
follows:
|
|
|
East |
|
North Florida, West Florida, Houston, which
includes a Taylor Morrison division and a Darling Homes division,
Dallas, Austin, and Atlanta |
West |
|
Denver, Phoenix, Bay Area, Sacramento, and
Southern California |
Mortgage Operations |
|
Mortgage and Financial Services (TMHF) |
Management primarily evaluates segment performance based on GAAP
gross margin, defined as homebuilding and land revenue 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. Operating
results for each segment may not be indicative of the results for
such segment had it been an independent, stand-alone entity.
Segment information, excluding discontinued operations, is as
follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
2015 |
|
|
|
East |
|
|
West |
|
|
Mortgage
Operations |
|
|
Corporate
and
Unallocated |
|
|
Total |
|
Total revenues
|
|
$ |
445,131 |
|
|
$ |
245,999 |
|
|
$ |
9,843 |
|
|
$ |
— |
|
|
$ |
700,973 |
|
Gross margin
|
|
|
91,077 |
|
|
|
41,835 |
|
|
|
3,747 |
|
|
|
— |
|
|
|
136,659 |
|
Selling, general and administrative expenses
|
|
|
(38,453 |
) |
|
|
(17,193 |
) |
|
|
— |
|
|
|
(15,580 |
) |
|
|
(71,226 |
) |
Equity in income/(loss) of unconsolidated entities
|
|
|
712 |
|
|
|
(242 |
) |
|
|
755 |
|
|
|
— |
|
|
|
1,225 |
|
Interest and other (expense) income
|
|
|
(4,340 |
) |
|
|
813 |
|
|
|
— |
|
|
|
146 |
|
|
|
(3,381 |
) |
Loss on extinguishment of debt
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(33,317 |
) |
|
|
(33,317 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes
|
|
$ |
48,996 |
|
|
$ |
25,213 |
|
|
$ |
4,502 |
|
|
$ |
(48,751 |
) |
|
$ |
29,960 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
2014 |
|
|
|
East |
|
|
West |
|
|
Mortgage
Operations |
|
|
Corporate
and
Unallocated |
|
|
Total |
|
Total revenues
|
|
$ |
349,396 |
|
|
$ |
239,437 |
|
|
$ |
8,175 |
|
|
$ |
— |
|
|
$ |
597,008 |
|
Gross margin
|
|
|
76,343 |
|
|
|
47,482 |
|
|
|
3,527 |
|
|
|
— |
|
|
|
127,352 |
|
Selling, general and administrative expenses
|
|
|
(32,159 |
) |
|
|
(15,374 |
) |
|
|
— |
|
|
|
(11,237 |
) |
|
|
(58,770 |
) |
Equity in income of unconsolidated entities
|
|
|
572 |
|
|
|
198 |
|
|
|
483 |
|
|
|
— |
|
|
|
1,253 |
|
Interest and other (expense) income
|
|
|
(4,725 |
) |
|
|
14 |
|
|
|
— |
|
|
|
384 |
|
|
|
(4,327 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes
|
|
$ |
40,031 |
|
|
$ |
32,320 |
|
|
$ |
4,010 |
|
|
$ |
(10,853 |
) |
|
$ |
65,508 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
2015 |
|
|
|
East |
|
|
West |
|
|
Mortgage
Operations |
|
|
Corporate
and
Unallocated |
|
|
Total |
|
Total revenues
|
|
$ |
750,886 |
|
|
$ |
442,025 |
|
|
$ |
17,478 |
|
|
$ |
— |
|
|
$ |
1,210,389 |
|
Gross margin
|
|
|
152,541 |
|
|
|
72,381 |
|
|
|
6,320 |
|
|
|
— |
|
|
|
231,242 |
|
Selling, general and administrative expenses
|
|
|
(68,833 |
) |
|
|
(30,812 |
) |
|
|
— |
|
|
|
(28,505 |
) |
|
|
(128,150 |
) |
Equity in income/(loss) of unconsolidated entities
|
|
|
855 |
|
|
|
(422 |
) |
|
|
1,094 |
|
|
|
— |
|
|
|
1,527 |
|
Interest and other (expense) income
|
|
|
(8,048 |
) |
|
|
529 |
|
|
|
— |
|
|
|
(1,581 |
) |
|
|
(9,100 |
) |
Loss on extinguishment of debt
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(33,317 |
) |
|
|
(33,317 |
) |
Gain on foreign currency forward
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
29,983 |
|
|
|
29,983 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes
|
|
$ |
76,515 |
|
|
$ |
41,676 |
|
|
$ |
7,414 |
|
|
$ |
(33,420 |
) |
|
$ |
92,185 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
2014 |
|
|
|
East |
|
|
West |
|
|
Mortgage
Operations |
|
|
Corporate
and
Unallocated |
|
|
Total |
|
Total revenues
|
|
$ |
622,423 |
|
|
$ |
430,623 |
|
|
$ |
14,437 |
|
|
$ |
— |
|
|
$ |
1,067,483 |
|
Gross margin
|
|
|
136,229 |
|
|
|
88,651 |
|
|
|
5,853 |
|
|
|
— |
|
|
|
230,733 |
|
Selling, general and administrative expenses
|
|
|
(58,905 |
) |
|
|
(29,860 |
) |
|
|
— |
|
|
|
(22,630 |
) |
|
|
(111,395 |
) |
Equity in income of unconsolidated entities
|
|
|
871 |
|
|
|
477 |
|
|
|
889 |
|
|
|
— |
|
|
|
2,237 |
|
Interest and other (expense) income
|
|
|
(8,163 |
) |
|
|
(40 |
) |
|
|
— |
|
|
|
92 |
|
|
|
(8,111 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes
|
|
$ |
70,032 |
|
|
$ |
59,228 |
|
|
$ |
6,742 |
|
|
$ |
(22,538 |
) |
|
$ |
113,464 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2015 |
|
|
|
East |
|
|
West |
|
|
Mortgage
Operations |
|
|
Corporate
and
Unallocated |
|
|
Total |
|
Real estate inventory and land deposits
|
|
$ |
1,501,599 |
|
|
$ |
1,481,550 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,983,149 |
|
Investments in unconsolidated entities
|
|
|
54,589 |
|
|
|
72,100 |
|
|
|
1,784 |
|
|
|
— |
|
|
|
128,473 |
|
Other assets
|
|
|
208,776 |
|
|
|
54,021 |
|
|
|
121,826 |
|
|
|
383,139 |
|
|
|
767,762 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$ |
1,764,964 |
|
|
$ |
1,607,671 |
|
|
$ |
123,610 |
|
|
$ |
383,139 |
|
|
$ |
3,879,384 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31,
2014 |
|
|
|
East |
|
|
West |
|
|
Mortgage
Operations |
|
|
Corporate
and
Unallocated |
|
|
Assets of
Discontinued
Operations |
|
|
Total |
|
Real estate inventory and land deposits
|
|
$ |
1,275,192 |
|
|
$ |
1,277,673 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,552,865 |
|
Investments in unconsolidated entities
|
|
|
57,138 |
|
|
|
51,909 |
|
|
|
1,244 |
|
|
|
— |
|
|
|
— |
|
|
|
110,291 |
|
Other assets
|
|
|
166,854 |
|
|
|
37,989 |
|
|
|
204,685 |
|
|
|
483,984 |
|
|
|
576,445 |
|
|
|
1,469,957 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$ |
1,499,184 |
|
|
$ |
1,367,571 |
|
|
$ |
205,929 |
|
|
$ |
483,984 |
|
|
$ |
576,445 |
|
|
$ |
4,133,113 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|