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Segment Reporting
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
An operating segment is defined as a component of an enterprise for which discrete financial information is available and is reviewed regularly by the Chief Operating Decision Maker (“CODM”), or decision-making group, to evaluate performance and make operating decisions. We have identified our CODM as two key executives—the Executive Chairman and the Chief Executive Officer (“CEO”).
We have identified each homebuilding division as an operating segment. Our homebuilding operating segments have been aggregated into the reportable segments noted below because they are similar in the following regards: (1) economic characteristics; (2) housing products; (3) class of homebuyer; (4) regulatory environments; and (5) methods used to construct and sell homes. Our homebuilding reportable segments are as follows:
•West (Arizona, California, Nevada, Washington and Oregon)
•Mountain (Colorado and Utah)
•East (mid-Atlantic, which includes Virginia and Maryland, and Florida)
Our financial services business consists of the following operating segments: (1) HomeAmerican; (2) Allegiant; (3) StarAmerican; (4) American Home Insurance; and (5) American Home Title. Due to its contributions to consolidated pretax income we consider HomeAmerican to be a reportable segment (“mortgage operations”). The remaining operating segments have been aggregated into one reportable segment (“other”) because they do not individually exceed 10 percent of (1) consolidated revenue; (2) the greater of (a) combined reported profit of all operating segments that did not report a loss or (b) the positive value of the combined reported loss of all operating segments that reported losses; or (3) consolidated assets.
Corporate is a non-operating segment that develops and implements strategic initiatives and supports our operating divisions by centralizing key administrative functions such as finance, treasury, information technology, insurance, risk management, litigation and human resources. Corporate also provides the necessary administrative functions to support MDC as a publicly traded company. A portion of the expenses incurred by Corporate are allocated to the homebuilding operating segments based on their respective percentages of assets, and to a lesser degree, a portion of Corporate expenses are allocated to the financial services segments. A majority of Corporate’s personnel and resources are primarily dedicated to activities relating to the homebuilding segments, and, therefore, the balance of any unallocated Corporate expenses is included in the homebuilding operations section of our consolidated statements of operations and comprehensive income.
On a periodic basis, we assess our Corporate cost allocation estimates. Our most recent assessment resulted in increases in Corporate cost allocations to both our homebuilding and financial services segments beginning January 1, 2020, to reflect the use of centralized administrative functions. Applying the most recent cost allocation estimate to the year ended December 31, 2019 would have resulted in decreased pretax income for our homebuilding and financial services segments of approximately $11.1 million and $1.6 million, respectively, with corresponding decrease in our Corporate segment pretax loss. Additionally, beginning January 1, 2020, we have reflected the expense associated with all homebuilding employee bonuses in the respective homebuilding segment to which the employee reports, consistent with how the CODM is now evaluating homebuilding division performance and making operating decisions. Had these bonuses been reflected in a similar manner during the year ended December 31, 2019, pretax income for our homebuilding segments would have decreased by an additional $13.1 million with a corresponding decrease in our Corporate segment pretax loss.
The following tables present revenue and pretax income / (loss) relating to our homebuilding and financial services operations:
Year Ended December 31,
202020192018
(Dollars in thousands)
Homebuilding
West$2,106,241 $1,771,060 $1,567,141 
Mountain1,293,779 1,131,568 1,080,475 
East365,359 302,620 334,195 
Total homebuilding revenues$3,765,379 $3,205,248 $2,981,811 
Financial Services
Mortgage operations$101,675 $55,222 $53,476 
Other34,157 32,783 29,929 
Total financial services revenues$135,832 $88,005 $83,405 
Total revenues$3,901,211 $3,293,253 $3,065,216 
Year Ended December 31,
202020192018
(Dollars in thousands)
Homebuilding
West$229,951 $163,069 $128,829 
Mountain175,001 136,313 134,710 
East20,006 9,857 12,611 
Corporate(46,441)(64,477)(58,656)
Total homebuilding pretax income$378,517 $244,762 $217,494 
Financial Services
Mortgage operations$71,017 $29,312 $31,920 
Other7,978 30,915 14,440 
Total financial services pretax income$78,995 $60,227 $46,360 
Total pretax income$457,512 $304,989 $263,854 

The following table summarizes total assets for our homebuilding and financial services operations. The assets in our West, Mountain and East segments consist primarily of inventory while the assets in our Corporate segment primarily include cash and cash equivalents and our deferred tax assets. The assets in our financial services operations consist mostly of cash and cash equivalents, marketable securities and mortgage loans held-for-sale.
December 31,
20202019
(Dollars in thousands)
Homebuilding Assets
West$1,855,567 $1,461,645 
Mountain905,007 869,665 
East274,937 194,592 
Corporate470,909 505,507 
Total homebuilding assets$3,506,420 $3,031,409 
Financial Services
Mortgage operations$279,649 $209,946 
Other78,851 97,001 
Total financial services assets$358,500 $306,947 
Total assets$3,864,920 $3,338,356