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Segment Reporting
 3 Months Ended
Mar. 31, 2023
Segment Reporting, Disclosure of Entity's Reportable Segments [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 conducted ongoing operations in the following states:
•West (Arizona, California, Nevada, New Mexico, Oregon, Texas and Washington)
•Mountain (Colorado, Idaho and Utah)
•East (Alabama, Florida, Maryland, Pennsylvania, Tennessee and Virginia)
Our financial services business consists of the following operating segments: (1) HomeAmerican Mortgage Corporation (“HomeAmerican”); (2) Allegiant Insurance Company, Inc., A Risk Retention Group (“Allegiant”); (3) StarAmerican Insurance Ltd. (“StarAmerican”); (4) American Home Insurance Agency, Inc.; and (5) American Home Title and Escrow Company. 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) the 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.
The following table summarizes revenues for our homebuilding and financial services operations:
Three Months Ended
March 31,
20232022
(Dollars in thousands)
Homebuilding
West
$577,933 $707,311 
Mountain
301,155 335,128 
East
140,928 198,081 
Total homebuilding revenues
$1,020,016 $1,240,520 
Financial Services
Mortgage operations
$18,419 $17,601 
Other
11,067 11,530 
Total financial services revenues
$29,486 $29,131 
The following table summarizes pretax income for our homebuilding and financial services operations:
Three Months Ended
March 31,
20232022
(Dollars in thousands)
Homebuilding
West
$43,200 $130,526 
Mountain
25,036 50,506 
East
15,309 31,394 
Corporate
7,454 (23,927)
Total homebuilding pretax income$90,999 $188,499 
Financial Services
Mortgage operations
$9,726 $7,433 
Other
8,244 5,950 
Total financial services pretax income$17,970 $13,383 
Total pretax income$108,969 $201,882 
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 our cash and cash equivalents, marketable securities and deferred tax assets. The assets in our financial services segment consist mostly of cash and cash equivalents, marketable securities and mortgage loans held-for-sale.
March 31,
2023		December 31,
2022
(Dollars in thousands)
Homebuilding assets
West
$2,098,329 $2,275,144 
Mountain
898,227 1,005,622 
East
407,046 427,926 
Corporate
1,574,847 1,249,370 
Total homebuilding assets$4,978,449 $4,958,062 
Financial services assets
Mortgage operations
$198,938 $267,309 
Other
138,434 137,901 
Total financial services assets$337,372 $405,210 
Total assets$5,315,821 $5,363,272