Business Segments Business Segments (Tables)

12 Months Ended

Dec. 31, 2020

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

The following table shows, by segment, revenue, operating income and interest expense for 2020, 2019 and 2018, as well as the Company’s income before income taxes for such periods:


	Year Ended December 31,
(In thousands)	2020		2019		2018
Revenue:
Northern homebuilding	$	1,256,405	$	1,027,291	$	933,119
Southern homebuilding	1,702,727		1,417,676		1,300,967
Financial services (a)	87,013		55,323		52,196
Total revenue	$	3,046,145	$	2,500,290	$	2,286,282

Operating income:
Northern homebuilding (b)	$	125,588	$	96,239	$	86,131
Southern homebuilding (c)	202,561		115,082		95,912
Financial services (a)	53,395		27,350		27,482
Less: Corporate selling, general and administrative expense	(62,283)		(51,582)		(46,364)
Total operating income (b) (c) (d)	$	319,261	$	187,089	$	163,161

Interest expense:
Northern homebuilding	$	2,465	$	7,474	$	7,142
Southern homebuilding	4,292		10,250		10,073
Financial services (a)	2,927		3,651		3,269
Total interest expense	$	9,684	$	21,375	$	20,484

Equity in income from joint venture arrangements	$	(466)	$	(311)	$	(312)
Acquisition and integration costs (e)	—		—		1,700

Income before income taxes	$	310,043	$	166,025	$	141,289

Depreciation and amortization:
Northern homebuilding	$	3,342	$	2,944	$	2,448
Southern homebuilding	4,468		4,778		4,472
Financial services	3,034		2,095		1,281
Corporate	6,734		6,133		6,330
Total depreciation and amortization	$	17,578	$	15,950	$	14,531

(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 a $0.9 million net 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 2020.

(d)For the years ended December 31, 2020, 2019 and 2018, total operating income was reduced by $8.4 million, $5.0 million and $5.8 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.

Reconciliation of Assets from Segment to Consolidated

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


	December 31, 2020
(In thousands)	Northern		Southern			Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	5,031	$	40,326		$	—	$	45,357
Inventory (a)	847,524		1,023,727			—		1,871,251
Investments in joint venture arrangements	1,378		33,295			—		34,673
Other assets	37,465		57,588		(b)	596,711		691,764
Total assets	$	891,398	$	1,154,936		$	596,711	$	2,643,045


	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.