Business Segments

3 Months Ended

Mar. 31, 2022

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
	Nashville, Tennessee

The following table shows, by segment, revenue, operating income and interest (income) expense for the three months ended March 31, 2022 and 2021, as well as the Company’s income before income taxes for such periods:

	Three Months Ended March 31,
(In thousands)	2022		2021
Revenue:
Northern homebuilding	$	353,786	$	332,998
Southern homebuilding	482,914		466,129
Financial services (a)	24,111		29,649
Total revenue	$	860,811	$	828,776
Operating income (loss):
Northern homebuilding	$	40,216	$	38,984
Southern homebuilding	84,293		66,215
Financial services (a)	13,933		20,636
Less: Corporate selling, general and administrative expense	(15,537)		(14,538)
Total operating income	$	122,905	$	111,297
Interest expense (income):
Northern homebuilding	$	—	$	76
Southern homebuilding	(2)		157
Financial services (a)	878		943
Corporate	(205)		—
Total interest expense	$	671	$	1,176
Other income	(16)		(160)
Income before income taxes	$	122,250	$	110,281

(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, 2022 and December 31, 2021:

	March 31, 2022
(In thousands)	Northern		Southern			Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	6,033	$	49,308		$	—	$	55,341
Inventory (a)	1,014,419		1,512,792			—		2,527,211
Investments in joint venture arrangements	—		57,309			—		57,309
Other assets	45,708		85,660		(b)	535,282		666,650
Total assets	$	1,066,160	$	1,705,069		$	535,282	$	3,306,511

	December 31, 2021
(In thousands)	Northern		Southern			Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	4,123	$	48,795		$	—	$	52,918
Inventory (a)	987,258		1,412,258			—		2,399,516
Investments in joint venture arrangements	—		57,121			—		57,121
Other assets	37,527		63,844		(b)	628,927		730,298
Total assets	$	1,028,908	$	1,582,018		$	628,927	$	3,239,853

(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.