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Operating and Reporting Segments
6 Months Ended
Jun. 30, 2015
Segment Reporting [Abstract]  
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