XML 28 R17.htm IDEA: XBRL DOCUMENT v3.22.2
Business Segments
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
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:
NorthernSouthern
Chicago, IllinoisOrlando, Florida
Cincinnati, OhioSarasota, Florida
Columbus, OhioTampa, Florida
Indianapolis, IndianaAustin, Texas
Minneapolis/St. Paul, MinnesotaDallas/Fort Worth, Texas
Detroit, MichiganHouston, Texas
San Antonio, Texas
Charlotte, North Carolina
Raleigh, North Carolina
Nashville, Tennessee

The following table shows, by segment, revenue, operating income (loss) and interest expense (income) for the three and six months ended June 30, 2022 and 2021, 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)2022202120222021
Revenue:
Northern homebuilding$472,814 $417,787 $826,600 $750,785 
Southern homebuilding548,466 514,618 1,031,380 980,747 
Financial services (a)
19,374 28,635 43,485 58,284 
Total revenue$1,040,654 $961,040 $1,901,465 $1,789,816 
Operating income (loss):
Northern homebuilding$74,078 $61,982 $114,294 $100,966 
Southern homebuilding120,024 79,064 204,317 145,279 
Financial services (a)
9,608 18,925 23,541 39,561 
Less: Corporate selling, general and administrative expense(20,845)(18,257)(36,382)(32,795)
Total operating income$182,865 $141,714 $305,770 $253,011 
Interest expense (income):
Northern homebuilding$— $— $— $76 
Southern homebuilding— — (2)157 
Financial services (a)
941 949 1,819 1,892 
Corporate(248)(497)(453)(497)
Total interest expense$693 $452 $1,364 $1,628 
Other income$(1)$(35)$(17)$(195)
Income before income taxes$182,173 $141,297 $304,423 $251,578 
(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 June 30, 2022 and December 31, 2021:
June 30, 2022
(In thousands)NorthernSouthernCorporate, Financial Services and UnallocatedTotal
Deposits on real estate under option or contract$7,002 $49,173 $— $56,175 
Inventory (a)
1,086,685 1,673,405 — 2,760,090 
Investments in joint venture arrangements— 55,625 — 55,625 
Other assets43,562 85,585 
(b)
492,287 621,434 
Total assets$1,137,249 $1,863,788 $492,287 $3,493,324 

December 31, 2021
(In thousands)NorthernSouthernCorporate, Financial Services and UnallocatedTotal
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 assets37,527 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.