Business Segments

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Business Segments

The Company’s chief operating decision makers evaluate the Company’s performance in various ways, including: (1) the results of our individual homebuilding operating segments and the results of our financial services operations; (2) the results of our homebuilding reportable segments; and (3) our consolidated financial results.

In accordance with ASC 280, Segment Reporting (“ASC 280”), we have identified each homebuilding division as an operating segment and have elected to aggregate our operating segments into separate reportable segments as they share similar aggregation characteristics prescribed in ASC 280 in the following regards: (1) long-term economic characteristics; (2) historical and expected future long-term gross margin percentages; (3) housing products, production processes and methods of distribution; and (4) geographical proximity.

The homebuilding operating segments that comprise each of our reportable segments are as follows:

Northern	Southern
Chicago, Illinois	Orlando, Florida
Cincinnati, Ohio	Sarasota, Florida
Columbus, Ohio	Tampa, Florida
Indianapolis, Indiana	Austin, Texas
Minneapolis/St. Paul, Minnesota	Dallas/Fort Worth, Texas
Detroit, Michigan	Houston, Texas
	San Antonio, Texas
	Charlotte, North Carolina
	Raleigh, North Carolina

The following table shows, by segment, revenue, operating income and interest expense for the three months ended March 31, 2021 and 2020, as well as the Company’s income before income taxes for such periods:

	Three Months Ended March 31,
(In thousands)	2021		2020
Revenue:
Northern homebuilding	$	332,998	$	240,270
Southern homebuilding	466,129		323,866
Financial services (a)	29,649		13,467
Total revenue	$	828,776	$	577,603
Operating income:
Northern homebuilding	$	38,984	$	20,881
Southern homebuilding	66,215		28,857
Financial services (a)	20,636		6,362
Less: Corporate selling, general and administrative expense	(14,538)		(10,096)
Total operating income	$	111,297	$	46,004
Interest expense:
Northern homebuilding	$	76	$	1,811
Southern homebuilding	157		2,158
Financial services (a)	943		731
Total interest expense	$	1,176	$	4,700
Equity in income from joint venture arrangements	(160)		(52)
Income before income taxes	$	110,281	$	41,356

(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.

The following tables show total assets by segment at March 31, 2021 and December 31, 2020:

	March 31, 2021
(In thousands)	Northern		Southern			Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	5,720	$	36,844		$	—	$	42,564
Inventory (a)	843,821		1,074,149			—		1,917,970
Investments in joint venture arrangements	—		33,822			—		33,822
Other assets	40,320		84,648		(b)	590,236		715,204
Total assets	$	889,861	$	1,229,463		$	590,236	$	2,709,560

	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

(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.