Business Segments Business Segments (Tables)

12 Months Ended

Dec. 31, 2022

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

The following table shows, by segment, revenue, operating income and interest (income) expense for 2022, 2021 and 2020, as well as the Company’s income before income taxes for such periods:


	Year Ended December 31,
(In thousands)	2022		2021		2020
Revenue:
Northern homebuilding	$	1,714,236	$	1,595,746	$	1,256,405
Southern homebuilding	2,330,962		2,048,113		1,702,727
Financial services (a)	86,195		102,028		87,013
Total revenue	$	4,131,393	$	3,745,887	$	3,046,145

Operating income (loss):
Northern homebuilding	$	217,499	$	211,958	$	125,588
Southern homebuilding (b)	451,874		312,661		202,561
Financial services (a)	44,382		62,291		53,395
Less: Corporate selling, general and administrative expense	(76,304)		(68,614)		(62,283)
Total operating income (a) (b) (c)	$	637,451	$	518,296	$	319,261

Interest expense (income):
Northern homebuilding	$	(469)	$	76	$	2,465
Southern homebuilding	(1,447)		(464)		4,292
Financial services (a)	5,122		3,912		2,927
Corporate	(956)		(1,368)		—
Total interest expense	$	2,250	$	2,156	$	9,684

Other income (d)	$	(6)	$	(2,046)	$	(466)
Loss on early extinguishment of debt (e)	—		9,072		—


Income before income taxes	$	635,207	$	509,114	$	310,043

Depreciation and amortization:
Northern homebuilding	$	3,308	$	3,407	$	3,342
Southern homebuilding	2,790		3,644		4,468
Financial services	2,178		2,227		3,034
Corporate	8,898		7,637		6,734
Total depreciation and amortization	$	17,174	$	16,915	$	17,578

(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.

(b)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.

(c)For the years ended December 31, 2022 and 2020, total operating income was reduced by $18.4 million and $8.4 million, respectively, related to asset impairment charges taken during the period.

(d)Other income is comprised of the gain on the sale of a non-operating asset during the fourth quarter of 2021 as well as equity in income from joint venture arrangements.

(e)Loss on early extinguishment of debt relates to the early redemption of our 5.625% senior notes due 2025 (the “2025 Senior Notes”) during the third quarter of 2021, consisting of a prepayment premium due to early redemption and a write-off of unamortized debt issuance costs.

Reconciliation of Assets from Segment to Consolidated

The following tables show total assets by segment at December 31, 2022 and 2021:


	December 31, 2022
(In thousands)	Northern		Southern			Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	8,138	$	47,601		$	—	$	55,739
Inventory (a)	1,100,472		1,672,391			—		2,772,863
Investments in joint venture arrangements	—		51,554			—		51,554
Other assets	38,265		103,182		(b)	693,320		834,767
Total assets	$	1,146,875	$	1,874,728		$	693,320	$	3,714,923


	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.