OPERATING AND REPORTING SEGMENTS

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

OPERATING AND REPORTING SEGMENTS

OPERATING AND REPORTING SEGMENTS

We operate with two principal business segments: homebuilding and financial services. As defined in ASC 280-10, Segment Reporting, we have ten homebuilding operating segments. The homebuilding segments are engaged in the business of acquiring and developing land, constructing homes, marketing and selling those homes and providing warranty and customer services. We aggregate our homebuilding operating segments into reporting segments based on similar long-term economic characteristics and geographical proximity. Our current reportable homebuilding segments are as follows:

West:	Arizona, California, Colorado and Utah
Central:	Texas
East:	Florida, Georgia, North Carolina, South Carolina and Tennessee

Management’s evaluation of segment performance is based on segment operating income, which we define as home and land closing revenue less cost of home and land closings, including land development and other land sales costs, commissions and other sales costs, and other general and administrative costs incurred by or allocated to each segment, including impairments. Each reportable segment follows the same accounting policies described in Note 1, “Organization and Basis of Presentation.” Operating results for each segment may not be indicative of the results for such segment had it been an independent, stand-alone entity for the periods presented.

The following segment information is in thousands:

	Three Months Ended March 31,
	2023		2022
Homebuilding revenue (1):
West	$	434,137	$	494,506
Central	425,450		355,624
East	419,721		436,804
Consolidated total	$	1,279,308	$	1,286,934
Homebuilding segment operating income:
West	$	38,809	$	120,856
Central	65,291		75,260
East	60,876		93,548
Total homebuilding segment operating income	164,976		289,664
Financial services segment profit	2,923		3,334
Corporate and unallocated costs (2)	(11,440)		(6,757)
Interest expense	—		(41)
Other income/(expense), net	8,844		(317)
Earnings before income taxes	$	165,303	$	285,883

(1)Homebuilding revenue includes the following land closing revenue, by segment:

	Three Months Ended March 31,
	2023		2022
Land closing revenue:
West	$	16,815	$	31,082
Central	570		7,796
East	—		2,600
Total	$	17,385	$	41,478

(2)Balance consists primarily of corporate costs and shared service functions such as finance and treasury that are not allocated to the homebuilding or financial services reporting segments.

	At March 31, 2023
	West			Central			East			Financial Services		Corporate  and Unallocated			Total
Deposits on real estate under option or contract	$	16,577		$	8,445		$	40,819		$	—	$	—		$	65,841
Real estate	1,741,746			1,239,666			1,373,766			—		—			4,355,178
Investments in unconsolidated entities	79			2,852			7,460			—		889			11,280
Other assets	62,422		(1)	232,602		(2)	105,626		(3)	1,499		1,036,698		(4)	1,438,847
Total assets	$	1,820,824		$	1,483,565		$	1,527,671		$	1,499	$	1,037,587		$	5,871,146

(1)Balance consists primarily of cash and cash equivalents, prepaids and other assets and property and equipment, net.

(2)Balance consists primarily of cash and cash equivalents, development reimbursements from local municipalities and prepaids and other assets.

(3)Balance consists primarily of cash and cash equivalents, goodwill (see Note 9), prepaids and other assets and property and equipment, net.

(4)Balance consists primarily of cash and cash equivalents, deferred tax assets and prepaids and other assets.

	At December 31, 2022
	West			Central			East			Financial Services		Corporate  and Unallocated			Total
Deposits on real estate under option or contract	$	21,599		$	8,992		$	46,138		$	—	$	—		$	76,729
Real estate	1,775,879			1,298,455			1,283,929			—		—			4,358,263
Investments in unconsolidated entities	110			2,866			7,503			—		1,274			11,753
Other assets	99,267		(1)	241,470		(2)	132,181		(3)	1,536		850,902		(4)	1,325,356
Total assets	$	1,896,855		$	1,551,783		$	1,469,751		$	1,536	$	852,176		$	5,772,101

(1)Balance consists primarily of cash and cash equivalents, development reimbursements from local municipalities and property and equipment, net.

(2)Balance consists primarily of cash and cash equivalents, development reimbursements from local municipalities and prepaids and other assets.

(3)Balance consists primarily of cash and cash equivalents, goodwill, prepaids and other assets and property and equipment, net.

(4)Balance consists primarily of cash and cash equivalents, deferred tax assets and prepaids and other assets.