We operate two principal businesses: homebuilding and financial services.
Our homebuilding operations consist of six homebuilding companies, each operating under different brand names, through which we acquire and develop land and construct and sell single-family detached and attached homes. In accordance with ASC Topic 280, Segment Reporting, in determining the most appropriate reportable segments, we considered similar economic and other characteristics, including product types, average selling prices, gross profits, production processes, suppliers, subcontractors, regulatory environments, land acquisition results, brand names, and underlying demand and supply. Based upon the above factors, our homebuilding operations comprise the following six reportable segments: Maracay Homes, consisting of operations in Arizona; Pardee Homes, consisting of operations in California and Nevada; Quadrant Homes, consisting of operations in Washington; Trendmaker Homes, consisting of operations in Texas; TRI Pointe Homes, consisting of operations in California and Colorado; and Winchester Homes, consisting of operations in Maryland and Virginia.
Our financial services reportable segment (“TRI Pointe Solutions”) comprises our mortgage financing operations and title services operations. Our mortgage financing operation (“TRI Pointe Connect”) provides mortgage financing to our homebuyers in all of the markets in which we operate. TRI Pointe Connect was formed as a joint venture with an established mortgage lender and is accounted for under the equity method of accounting. Our title services operation (“TRI Pointe Assurance”) provides title examinations for our homebuyers in our Trendmaker Homes and Winchester Homes brands. TRI Pointe Assurance is a wholly owned subsidiary of TRI Pointe Group and acts as a title agency for First American Title Insurance Company.
Corporate is a non-operating segment that develops and implements company-wide strategic initiatives and provides support to our homebuilding reporting segments by centralizing certain administrative functions, such as marketing, legal, accounting, treasury, insurance, internal audit and risk management, information technology and human resources, to benefit from economies of scale. Our Corporate non-operating segment also includes general and administrative expenses related to operating our corporate headquarters. A portion of the expenses incurred by Corporate is allocated to the homebuilding reporting segments.
The reportable segments follow the same accounting policies as our consolidated financial statements described in Note 1, Organization and Summary of Significant Accounting Policies. Operational results of each reportable segment are not necessarily indicative of the results that would have been achieved had the reportable segment been an independent, stand-alone entity during the periods presented.
Total revenues and income before income taxes for each of our reportable segments were as follows (in thousands):
|
| | | | | | | | | | | |
| 2017 | | 2016 | | 2015 |
Revenues | | | | | |
Maracay Homes | $ | 296,768 |
| | $ | 255,253 |
| | $ | 185,645 |
|
Pardee Homes | 826,033 |
| | 730,848 |
| | 670,063 |
|
Quadrant Homes | 247,939 |
| | 213,221 |
| | 189,401 |
|
Trendmaker Homes | 253,825 |
| | 244,001 |
| | 278,759 |
|
TRI Pointe Homes | 927,247 |
| | 723,186 |
| | 774,005 |
|
Winchester Homes | 257,089 |
| | 237,413 |
| | 302,276 |
|
Total homebuilding revenues | 2,808,901 |
| | 2,403,922 |
| | 2,400,149 |
|
Financial services | 1,371 |
| | 1,220 |
| | 1,010 |
|
Total | $ | 2,810,272 |
| | $ | 2,405,142 |
| | $ | 2,401,159 |
|
Income before taxes | |
| | |
| | |
|
Maracay Homes | $ | 23,987 |
| | $ | 17,189 |
| | $ | 9,849 |
|
Pardee Homes | 198,738 |
| | 204,237 |
| | 183,077 |
|
Quadrant Homes | 32,671 |
| | 21,209 |
| | 10,478 |
|
Trendmaker Homes | 16,764 |
| | 15,353 |
| | 25,004 |
|
TRI Pointe Homes | 89,811 |
| | 62,013 |
| | 104,970 |
|
Winchester Homes | 15,472 |
| | 16,147 |
| | 22,411 |
|
Corporate | (45,091 | ) | | (39,698 | ) | | (38,589 | ) |
Total homebuilding income before income taxes | 332,352 |
| | 296,450 |
| | 317,200 |
|
Financial services | 7,466 |
| | 5,777 |
| | 2,060 |
|
Total | $ | 339,818 |
| | $ | 302,227 |
| | $ | 319,260 |
|
Total real estate inventories and total assets for each of our reportable segments, as of the date indicated, were as follows (in thousands):
|
| | | | | | | |
| December 31, 2017 | | December 31, 2016 |
Real estate inventories | |
| | |
|
Maracay Homes | $ | 243,883 |
| | $ | 228,965 |
|
Pardee Homes | 1,245,659 |
| | 1,098,608 |
|
Quadrant Homes | 257,887 |
| | 221,386 |
|
Trendmaker Homes | 204,926 |
| | 211,035 |
|
TRI Pointe Homes | 855,727 |
| | 868,088 |
|
Winchester Homes | 297,471 |
| | 282,545 |
|
Total | $ | 3,105,553 |
| | $ | 2,910,627 |
|
Total assets | |
| | |
|
Maracay Homes | $ | 268,866 |
| | $ | 255,466 |
|
Pardee Homes | 1,346,296 |
| | 1,201,302 |
|
Quadrant Homes | 312,803 |
| | 242,208 |
|
Trendmaker Homes | 224,995 |
| | 225,025 |
|
TRI Pointe Homes | 1,062,920 |
| | 1,052,400 |
|
Winchester Homes | 313,921 |
| | 305,379 |
|
Corporate | 262,740 |
| | 275,923 |
|
Total homebuilding assets | 3,792,541 |
| | 3,557,703 |
|
Financial services | 12,840 |
| | 6,937 |
|
Total | $ | 3,805,381 |
| | $ | 3,564,640 |
|
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- DefinitionThe entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510
+ Details Name: | us-gaap_SegmentReportingDisclosureTextBlock | Namespace Prefix: | us-gaap_ | Data Type: | nonnum:textBlockItemType | Balance Type: | na | Period Type: | duration | |