3 .	Segment Reporting

We operate

two

principal businesses: homebuilding and financial services.

Our homebuilding operations acquire and develop land and construct and sell single-family attached and detached homes. In accordance with ASC Topic

280,

Segment Reporting

("ASC

280"

), we have determined that each of our

four

homebuilding regions and financial services operations (consisting of our mortgage financing and title operations) are our operating segments. Our

four

homebuilding reportable segments include: North, consisting of our divisions in Georgia, Delaware, Illinois, Indiana, Maryland, Minnesota, New Jersey, Pennsylvania, Virginia and Washington D.C.; Southeast, consisting of our divisions in Florida and the Carolinas; Southwest, consisting of our divisions in Texas, Colorado, Nevada and Utah; and West, consisting of our divisions in California, Arizona and Washington.

Our mortgage financing operation, CalAtlantic Mortgage, provides mortgage financing to many of our homebuyers in substantially all of the markets in which we operate, and sells substantially all of the loans it originates in the secondary mortgage market. Our title, escrow and insurance subsidiaries provide title, escrow and insurance services to homebuyers in many of our markets. Our mortgage financing, title, escrow and insurance services operations are included in our financial services reportable segment, which is separately reported in our condensed consolidated financial statements under "Financial Services."

Corporate is a non-operating segment that develops and implements strategic initiatives and supports our operating segments by centralizing key administrative functions such as accounting, finance and treasury, information technology, insurance and risk management, litigation, marketing and human resources. Corporate also provides the necessary administrative functions to support us as a publicly traded company. All of the expenses incurred by Corporate are allocated to each of our

four

homebuilding regions based on their respective percentage of revenues.

Segment financial information relating to the Company

’s homebuilding operations was as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
	(Dollars in thousands)
Homebuilding revenues:
North	$	282,591	$	283,060	$	848,438	$	710,889
Southeast		427,244		400,720		1,207,616		1,065,038
Southwest		356,952		389,160		1,099,803		1,165,797
West		449,056		598,018		1,318,799		1,493,279
Total homebuilding revenues	$	1,515,843	$	1,670,958	$	4,474,656	$	4,435,003

Homebuilding pretax income (1):
North	$	25,895	$	25,627	$	74,492	$	53,177
Southeast		30,094		31,303		85,695		84,125
Southwest		31,648		39,312		100,757		113,145
West		51,257		104,697		147,869		230,231
Total homebuilding pretax income	$	138,894	$	200,939	$	408,813	$	480,678

Homebuilding income (loss) from unconsolidated joint ventures:
North	$	78	$	113	$	525	$	486
Southeast		―		―		―		437
Southwest		252		44		515		869
West		5,096		1,074		8,720		851
Total homebuilding income (loss) from unconsolidated joint ventures	$	5,426	$	1,231	$	9,760	$	2,643

(

)

Homebuilding pretax income includes depreciation and amortization expense of $

2.0

million,

$4.5

million,

$2.3

million and

$5.3

million, respectively, in the North, Southeast, Southwest and West for the quarter ended

September 30, 2017

and

$1.7

million,

$4.2

million,

$2.8

million and

$7.1

million, respectively, in the North, Southeast, Southwest and West for the quarter ended

September 30, 2016.

Homebuilding pretax income includes depreciation and amortization expense of

$5.6

million,

$12.2

million,

$7.8

million and

$16.1

million, respectively, in the North, Southeast, Southwest and West for the

nine

months ended

September 30, 2017

and

$4.5

million,

$11.2

million,

$8.6

million and

$18.9

million, respectively, in the North, Southeast, Southwest and West for the

nine

months ended

September 30, 2016.

Segment financial information relating to the Company

’s homebuilding assets was as follows:

	September 30,		December 31,
	2017		2016
	(Dollars in thousands)
Homebuilding assets:
North	$	1,347,835	$	1,181,544
Southeast		2,375,363		2,253,289
Southwest		1,895,329		1,842,869
West		2,706,155		2,500,163
Corporate		485,221		578,780
Total homebuilding assets	$	8,809,903	$	8,356,645

Homebuilding investments in unconsolidated joint ventures:
North	$	5,829	$	5,691
Southeast		162		334
Southwest		4,855		6,085
West		119,846		115,017
Total homebuilding investments in unconsolidated joint ventures	$	130,692	$	127,127