Business Segments Business Segments (Tables)

6 Months Ended

Jun. 30, 2020

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

The following table shows, by segment, revenue, operating income and interest expense for the three and six months ended June 30, 2020 and 2019, as well as the Company’s income before income taxes for such periods:


	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2020		2019		2020		2019
Revenue:
Northern homebuilding	$	299,340	$	252,870	$	539,610	$	453,232
Southern homebuilding	395,806		356,513		719,672		625,477
Financial services ^(a)	19,048		14,303		32,515		26,086
Total revenue	$	714,194	$	623,686	$	1,291,797	$	1,104,795

Operating income:
Northern homebuilding^(b)	$	32,241	$	24,437	$	53,122	$	40,972
Southern homebuilding	44,319		26,214		73,176		43,808
Financial services^(a)	11,457		7,639		17,819		13,334
Less: Corporate selling, general and administrative expense	(13,778)		(12,077)		(23,874)		(21,509)
Total operating income^(b)	$	74,239	$	46,213	$	120,243	$	76,605

Interest expense:
Northern homebuilding	$	703	$	1,374	$	2,514	$	3,855
Southern homebuilding	1,192		2,888		3,350		6,456
Financial services ^(a)	620		935		1,351		1,678
Total interest expense	$	2,515	$	5,197	$	7,215	$	11,989

Equity in income from joint venture arrangements	(3)		(187)		(55)		(66)



Income before income taxes	$	71,727	$	41,203	$	113,083	$	64,682

(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 $0.1 million of acquisition-related charges taken during the three months ended June 30, 2019 and $0.6 million of acquisition-related charges taken during the six months ended June 30, 2019 as a result of our acquisition of Pinnacle Homes in Detroit, Michigan on March 1, 2018.

The following tables show total assets by segment at June 30, 2020 and December 31, 2019:


	June 30, 2020
(In thousands)	Northern		Southern			Corporate, Financial Services and Unallocated			Total
Deposits on real estate under option or contract	$	3,831	$	29,157		$	—		$	32,988
Inventory ^(a)	830,011		967,811			—			1,797,822
Investments in joint venture arrangements	2,081		43,063			—			45,144
Other assets	40,734		69,123		^(b)	341,897		^(c)	451,754
Total assets	$	876,657	$	1,109,154		$	341,897		$	2,327,708


	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	21,564		52,662		^(b)	223,976		298,202
Total assets	$	810,863	$	1,070,755		$	223,976	$	2,105,594

(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 a $32.8 million increase in operating lease right-of-use assets due to the commencement of a ten-year renewable lease on June 29, 2020 for the Company’s new corporate headquarters.