Segment Information

6 Months Ended

Jun. 30, 2018

Our Homebuilding operations are engaged in the acquisition and development of land primarily for residential purposes within the U.S. and the construction of housing on such land. For reporting purposes, our Homebuilding operations are aggregated into six reportable segments:



Northeast:		Connecticut, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, Virginia
Southeast:		Georgia, North Carolina, South Carolina, Tennessee
Florida:		Florida
Midwest:		Illinois, Indiana, Kentucky, Michigan, Minnesota, Missouri, Ohio
Texas:		Texas
West:		Arizona, California, Nevada, New Mexico, Washington

We also have a reportable segment for our Financial Services operations, which consist principally of mortgage banking and title operations and operate generally in the same markets as the Homebuilding segments.



	Operating Data by Segment ($000’s omitted)
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Revenues:
Northeast	$	200,626		$	148,303		$	333,062		$	256,904
Southeast	445,506			381,132			820,129			710,244
Florida	455,637			363,421			804,346			677,717
Midwest	356,466			357,985			653,972			602,491
Texas	330,692			288,669			577,331			523,210
West	728,031			435,075			1,252,273			792,129
	2,516,958			1,974,585			4,441,113			3,562,695
Financial Services	52,764			47,275			98,702			89,042
Consolidated revenues	$	2,569,722		$	2,021,860		$	4,539,815		$	3,651,737

Income (loss) before income taxes (d):
Northeast	$	25,158		$	(38,249	)	$	34,470		$	(33,849	)
Southeast	54,357			40,274			94,814			72,640
Florida (a)	67,491			36,110			112,436			80,633
Midwest	43,050			37,573			71,451			55,827
Texas	50,859			46,522			81,395			79,318
West (b)	154,414			(1,850		)	243,619			32,234
Other homebuilding (c)	(6,876		)	(16,781		)	(39,374		)	(57,441		)
	388,453			103,599			598,811			229,362
Financial Services	20,717			18,948			34,551			32,451
Consolidated income before income taxes	$	409,170		$	122,547		$	633,362		$	261,813


(a)	Florida includes a warranty charge of $12.1 million for the three and six months ended June 30, 2017 related to a closed-out community (see Note 8).


(b)	West includes gains of $26.4 million related to two land sale transactions in California that closed in the three and six months ended June 30, 2018.

(c)

Other homebuilding includes the amortization of intangible assets and capitalized interest and other items not allocated to the operating segments. Other homebuilding also includes insurance reserve reversals of $37.9 million and $19.8 million for the three and six months ended June 30, 2018 and 2017, respectively, and a write-off of $15.0 million of insurance receivables associated with the resolution of certain insurance matters in the six months ended June 30, 2017 (see Note 8).


(d)	Includes land-related charges, as summarized in the below table.



	Operating Data by Segment ($000’s omitted)
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Land-related charges*:
Northeast	$	498	$	49,820	$	1,683	$	49,918
Southeast	689		491		1,731		958
Florida	226		8,602		409		8,754
Midwest	372		7,567		1,118		8,095
Texas	220		589		270		847
West	148		54,409		361		56,441
Other homebuilding	269		4,095		269		4,095
	$	2,422	$	125,573	$	5,841	$	129,108


*	Land-related charges include land impairments, net realizable value adjustments on land held for sale, impairments of investments in unconsolidated entities, and write-offs of deposits and pre-acquisition costs for land option contracts we elected not to pursue (see Note 2). Other homebuilding consists primarily of write-offs of capitalized interest related to such land-related charges.



	Operating Data by Segment
	($000's omitted)
	June 30, 2018
	Homes Under Construction		Land Under Development		Raw Land		Total Inventory		Total Assets
Northeast	$	298,241	$	272,358	$	73,577	$	644,176	$	811,067
Southeast	506,116		633,489		78,183		1,217,788		1,355,703
Florida	488,392		879,165		97,481		1,465,038		1,602,996
Midwest	371,665		420,733		28,727		821,125		909,295
Texas	332,420		417,251		88,727		838,398		915,707
West	869,845		1,161,466		143,544		2,174,855		2,357,858
Other homebuilding (a)	55,581		261,153		21,551		338,285		1,389,431
	2,922,260		4,045,615		531,790		7,499,665		9,342,057
Financial Services	—		—		—		—		473,519
	$	2,922,260	$	4,045,615	$	531,790	$	7,499,665	$	9,815,576



	Operating Data by Segment
	($000's omitted)
	December 31, 2017
	Homes Under Construction		Land Under Development		Raw Land		Total Inventory		Total Assets
Northeast	$	234,413	$	327,599	$	73,574	$	635,586	$	791,511
Southeast	433,411		613,626		121,238		1,168,275		1,287,992
Florida	359,651		876,856		109,069		1,345,576		1,481,837
Midwest	299,896		476,694		28,482		805,072		877,282
Texas	251,613		435,018		87,392		774,023		859,847
West	798,706		1,137,940		147,493		2,084,139		2,271,328
Other homebuilding (a)	43,715		268,081		22,663		334,459		1,469,234
	2,421,405		4,135,814		589,911		7,147,130		9,039,031
Financial Services	—		—		—		—		647,618
	$	2,421,405	$	4,135,814	$	589,911	$	7,147,130	$	9,686,649

(a)

Other homebuilding primarily includes cash and equivalents, capitalized interest, intangibles, deferred tax assets, and other corporate items that are not allocated to the operating segments.