Business Segments Business Segments (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Segment Reporting Information, by Segment [Table Text Block]

The following table shows, by segment, revenue, operating income and interest expense for 2019, 2018 and 2017, as well as the Company’s income before income taxes for such periods:



	Year Ended December 31,
(In thousands)	2019			2018			2017
Revenue:
Northern homebuilding	$	1,027,291		$	933,119		$	742,577
Southern homebuilding	1,417,676			1,300,967			1,169,701
Financial services ^(a)	55,323			52,196			49,693
Total revenue	$	2,500,290		$	2,286,282		$	1,961,971

Operating income:
Northern homebuilding^(b)	$	96,239		$	86,131		$	81,522
Southern homebuilding ^(c)	115,082			95,912			72,396
Financial services ^(a)	27,350			27,482			27,288
Less: Corporate selling, general and administrative expense	(51,582		)	(46,364		)	(42,547		)
Total operating income ^{(b) (c) (d)}	$	187,089		$	163,161		$	138,659

Interest expense:
Northern homebuilding	$	7,474		$	7,142		$	5,010
Southern homebuilding	10,250			10,073			11,107
Financial services ^(a)	3,651			3,269			2,757
Total interest expense	$	21,375		$	20,484		$	18,874

Equity in income from joint venture arrangements	$	(311	)	$	(312	)	$	(539	)
Acquisition and integration costs ^(e)	—			1,700			—

Income before income taxes	$	166,025		$	141,289		$	120,324

Depreciation and amortization:
Northern homebuilding	$	2,944		$	2,448		$	2,069
Southern homebuilding	4,778			4,472			4,579
Financial services	2,095			1,281			1,503
Corporate	6,133			6,330			6,023
Total depreciation and amortization	$	15,950		$	14,531		$	14,174


(a)	Our financial services operational results should be viewed in connection with our homebuilding business as its operations originate loans and provide title services primarily for our homebuying customers, with the exception of an immaterial amount of mortgage refinancing.


(b)	Includes $0.6 million and 5.1 million of acquisition-related charges taken during 2019 and 2018, respectively, as a result of our acquisition of Pinnacle Homes in Detroit, Michigan on March 1, 2018.


(c)	Includes an $8.5 million charge for stucco-related repair costs in certain of our Florida communities (as more fully discussed in Note 8 to our Consolidated Financial Statements) taken during 2017.


(d)	For the years ended December 31, 2019, 2018 and 2017, total operating income was reduced by $5.0 million, $5.8 million and $7.7 million, respectively, related to asset impairment charges taken during the period.


(e)	Represents costs which include, but are not limited to, legal fees and expenses, travel and communication expenses, cost of appraisals, accounting fees and expenses, and miscellaneous expenses related to our acquisition of Pinnacle Homes. As these costs are not eligible for capitalization as initial direct costs, such amounts are expensed as incurred.

The following tables show total assets by segment at December 31, 2019 and 2018:



	December 31, 2019
(In thousands)	Northern		Southern			Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	3,655	$	24,877		$	—	$	28,532
Inventory ^(a)	783,972		957,003			—		1,740,975
Investments in joint venture arrangements	1,672		36,213			—		37,885
Other assets ^(d)	21,564		52,662		^(b)	223,976		298,202
Total assets	$	810,863	$	1,070,755		$	223,976	$	2,105,594



	December 31, 2018
(In thousands)	Northern		Southern			Corporate, Financial Services and Unallocated			Total
Deposits on real estate under option or contract	$	5,725	$	27,937		$	—		$	33,662
Inventory ^(a)	696,057		944,741			—			1,640,798
Investments in joint venture arrangements	1,562		34,308			—			35,870
Other assets	19,524		43,086		^(b)	248,641		^(c)	311,251
Total assets	$	722,868	$	1,050,072		$	248,641		$	2,021,581


(a)	Inventory includes single-family lots, land and land development costs; land held for sale; homes under construction; model homes and furnishings; community development district infrastructure; and consolidated inventory not owned.


(b)	Includes development reimbursements from local municipalities.


(c)	Includes asset held for sale for $5.6 million.

(d)

Includes $18.4 million of operating lease right-of-use assets recorded as a result of the adoption of ASU 2016-02 on January 1, 2019. See Note 9 to our Consolidated Financial Statements for further information.