Business Segments

6 Months Ended

Jun. 30, 2024

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:

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

The following table shows, by segment, revenue, operating income (loss) and interest (income) expense - net for the three and six months ended June 30, 2024 and 2023, 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)	2024		2023		2024		2023
Revenue:
Northern homebuilding	$	464,781	$	383,886	$	873,301	$	766,616
Southern homebuilding	614,238		604,861		1,225,459		1,197,380
Financial services (a)	30,762		25,266		57,724		50,547
Total revenue	$	1,109,781	$	1,014,013	$	2,156,484	$	2,014,543
Operating income (loss):
Northern homebuilding	$	72,821	$	46,853	$	130,882	$	86,013
Southern homebuilding	119,750		109,912		237,593		207,524
Financial services (a)	17,883		13,743		33,070		28,711
Less: Corporate selling, general and administrative expense	(23,663)		(19,849)		(41,435)		(37,003)
Total operating income	$	186,791	$	150,659	$	360,110	$	285,245
Interest (income) expense - net:
Northern homebuilding	$	(56)	$	(47)	$	(136)	$	(93)
Southern homebuilding	—		(203)		(398)		(205)
Financial services (a)	3,483		2,584		6,358		4,911
Corporate	(10,775)		(7,004)		(20,092)		(10,672)
Total interest income, net of interest expense	$	(7,348)	$	(4,670)	$	(14,268)	$	(6,059)
Other income	—		(28)		—		(35)
Income before income taxes	$	194,139	$	155,357	$	374,378	$	291,339

(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, 2024 and December 31, 2023:

	June 30, 2024
(In thousands)	Northern		Southern			Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	11,003	$	51,943		$	—	$	62,946
Inventory (a)	1,020,600		1,854,918			—		2,875,518
Investments in joint venture arrangements	—		46,180			—		46,180
Other assets	48,208		149,437		(b)	1,157,781		1,355,426
Total assets	$	1,079,811	$	2,102,478		$	1,157,781	$	4,340,070

	December 31, 2023
(In thousands)	Northern		Southern			Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	8,990	$	42,618		$	—	$	51,608
Inventory (a)	1,016,982		1,728,561			—		2,745,543
Investments in joint venture arrangements	—		44,011			—		44,011
Other assets	37,171		104,306		(b)	1,039,801		1,181,278
Total assets	$	1,063,143	$	1,919,496		$	1,039,801	$	4,022,440

(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.