Segment Information

9 Months Ended

Sep. 30, 2019

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, Pennsylvania, Virginia
Southeast:		Georgia, North Carolina, South Carolina, Tennessee
Florida:		Florida
Midwest:		Illinois, Indiana, Kentucky, Michigan, Minnesota, 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						Nine Months Ended
	September 30,						September 30,
	2019			2018			2019			2018
Revenues:
Northeast	$	209,696		$	185,614		$	520,425		$	518,676
Southeast	456,244			451,600			1,240,782			1,271,730
Florida	539,269			506,670			1,470,866			1,311,016
Midwest	403,916			412,803			1,048,090			1,066,775
Texas	359,717			347,986			971,606			925,317
West	676,708			693,073			1,779,641			1,945,345
	2,645,550			2,597,746			7,031,410			7,038,859
Financial Services	64,815			51,620			164,634			150,322
Consolidated revenues	$	2,710,365		$	2,649,366		$	7,196,044		$	7,189,181

Income (loss) before income taxes:
Northeast	$	37,285		$	18,938		$	71,425		$	53,408
Southeast (a)	42,313			51,920			122,668			146,735
Florida	89,186			73,802			218,848			186,238
Midwest	55,286			52,438			124,406			123,889
Texas	53,502			55,382			133,617			136,777
West (b)	100,034			138,698			284,659			382,317
Other homebuilding (c)	(43,744		)	(26,123		)	(121,769		)	(65,497		)
	333,862			365,055			833,854			963,867
Financial Services	32,284			19,633			69,771			54,182
Consolidated income before income taxes	$	366,146		$	384,688		$	903,625		$	1,018,049


(a)	Includes charges of $9.0 million and $14.8 million in the three and nine months ended September 30, 2019, respectively, related to estimated costs to complete repairs in a closed-out community.


(b)	West includes gains of $26.4 million related to two land sale transactions in California that closed in the nine months ended September 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 $18.3 million and $40.1 million for the nine months ended September 30, 2019 and 2018, respectively, and write-offs of insurance receivables of $24.0 million for the nine months ended September 30, 2019 (see Note 8).



	Operating Data by Segment ($000’s omitted)
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Land-related charges*:
Northeast	$	253	$	1,385	$	707	$	3,068
Southeast	8,167		663		10,754		2,394
Florida	225		262		1,471		671
Midwest	528		4,959		1,832		6,078
Texas	94		47		577		317
West	1,166		425		1,813		786
Other homebuilding	307		391		395		659
	$	10,740	$	8,132	$	17,549	$	13,973


*	Land-related charges include land impairments, net realizable value adjustments on land held for sale, and write-offs of deposits and pre-acquisition costs for land option contracts we elected not to pursue.



	Operating Data by Segment
	($000's omitted)
	September 30, 2019
	Homes Under Construction		Land Under Development		Raw Land		Total Inventory		Total Assets
Northeast	$	379,753	$	247,743	$	14,915	$	642,411	$	743,466
Southeast	458,248		683,470		99,291		1,241,009		1,377,801
Florida	556,505		841,527		81,007		1,479,039		1,651,628
Midwest	357,520		461,847		27,498		846,865		920,643
Texas	377,273		450,883		88,993		917,149		986,687
West	964,105		1,278,015		103,998		2,346,118		2,581,214
Other homebuilding (a)	50,847		290,563		16,058		357,468		1,486,868
	3,144,251		4,254,048		431,760		7,830,059		9,748,307
Financial Services	—		—		—		—		516,206
	$	3,144,251	$	4,254,048	$	431,760	$	7,830,059	$	10,264,513



	Operating Data by Segment
	($000's omitted)
	December 31, 2018
	Homes Under Construction		Land Under Development		Raw Land		Total Inventory		Total Assets
Northeast	$	268,900	$	291,467	$	52,245	$	612,612	$	704,515
Southeast	443,140		676,087		90,332		1,209,559		1,347,427
Florida	467,625		892,669		85,321		1,445,615		1,601,906
Midwest	314,442		433,056		29,908		777,406		849,596
Texas	284,405		427,124		98,415		809,944		881,629
West	805,709		1,131,841		118,579		2,056,129		2,208,092
Other homebuilding (a)	45,937		276,981		19,170		342,088		2,006,825
	2,630,158		4,129,225		493,970		7,253,353		9,599,990
Financial Services	—		—		—		—		572,986
	$	2,630,158	$	4,129,225	$	493,970	$	7,253,353	$	10,172,976

(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.