Business Segments

9 Months Ended

Sep. 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 nine months ended September 30, 2024 and 2023, as well as the Company’s income before income taxes for such periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2024		2023		2024		2023
Revenue:
Northern homebuilding	$	498,503	$	348,240	$	1,371,804	$	1,114,856
Southern homebuilding	614,436		674,540		1,839,895		1,871,920
Financial services (a)	29,970		23,591		87,694		74,138
Total revenue	$	1,142,909	$	1,046,371	$	3,299,393	$	3,060,914
Operating income (loss):
Northern homebuilding	$	75,485	$	43,762	$	206,367	$	129,775
Southern homebuilding	114,140		135,627		351,733		343,151
Financial services (a)	16,568		12,471		49,638		41,182
Less: Corporate selling, general and administrative expense	(24,200)		(19,729)		(65,635)		(56,732)
Total operating income	$	181,993	$	172,131	$	542,103	$	457,376
Interest (income) expense - net:
Northern homebuilding	$	(59)	$	(48)	$	(195)	$	(141)
Southern homebuilding	(618)		—		(1,016)		(205)
Financial services (a)	3,632		2,593		9,990		7,504
Corporate	(9,635)		(8,379)		(29,727)		(19,051)
Total interest income, net of interest expense	$	(6,680)	$	(5,834)	$	(20,948)	$	(11,893)
Other income	—		1		—		(34)
Income before income taxes	$	188,673	$	177,964	$	563,051	$	469,303

(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 September 30, 2024 and December 31, 2023:

	September 30, 2024
(In thousands)	Northern		Southern			Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	11,691	$	52,067		$	—	$	63,758
Inventory (a)	1,081,082		1,987,854			—		3,068,936
Investments in joint venture arrangements	—		63,095			—		63,095
Other assets	49,015		140,287		(b)	1,074,766		1,264,068
Total assets	$	1,141,788	$	2,243,303		$	1,074,766	$	4,459,857

	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.