Business Segments

3 Months Ended

Mar. 31, 2025

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; cost of sales; selling, general and administrative expense; operating income; interest (income) expense; and income before income taxes for the three months ended March 31, 2025 and 2024:

	Three Months Ended March 31,
(In thousands)	2025		2024
Revenue:
Northern homebuilding	$	410,377	$	408,520
Southern homebuilding	534,196		611,221
Financial services (a)	31,520		26,962
Total revenue	$	976,093	$	1,046,703
Cost of Sales:
Northern homebuilding	$	319,459	$	319,711
Southern homebuilding	403,851		443,649
Financial services (a)	—		—
Total cost of sales	$	723,310	$	763,360
General and administrative expense:
Northern homebuilding	$	9,136	$	9,441
Southern homebuilding	18,808		17,570
Financial services (a)	12,753		11,775
Segment general and administrative expense	$	40,697	$	38,786
Corporate and unallocated general and administrative expense	18,376		17,298
Total general and administrative expense	$	59,073	$	56,084
Selling expense:
Northern homebuilding	$	21,190	$	21,307
Southern homebuilding	31,106		32,159
Financial services (a)	—		—
Segment selling expense	$	52,296	$	53,466
Corporate and unallocated selling expense	490		474
Total selling expense	$	52,786	$	53,940
Operating income:
Northern homebuilding	$	60,592	$	58,061
Southern homebuilding	80,431		117,843
Financial services (a)	18,767		15,187
Segment operating income	$	159,790	$	191,091
Corporate selling, general and administrative expense	(18,866)		(17,772)
Total operating income	$	140,924	$	173,319
Interest (income) expense - net:
Northern homebuilding	$	(22)	$	(80)
Southern homebuilding	(2)		(398)
Financial services (a)	2,661		2,875
Segment Interest (income) expense - net	$	2,637	$	2,397
Corporate Interest (income) expense - net	(7,834)		(9,317)
Total interest income, net of interest expense	$	(5,197)	$	(6,920)
Income before income taxes	$	146,121	$	180,239

(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.

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The following tables show total assets by segment at March 31, 2025 and December 31, 2024:

	March 31, 2025
(In thousands)	Northern		Southern			Financial Services		Segment Total		Corporate and Unallocated		Total
Deposits on real estate under option or contract	$	12,289	$	61,364		$	—	$	73,653	$	—	$	73,653
Inventory (a)	1,040,026		2,091,026			—		3,131,052		—		3,131,052
Investments in joint venture arrangements	—		70,727			—		70,727		—		70,727
Other assets	50,738		148,521		(b)	312,026		511,285		798,506		1,309,791
Total assets	$	1,103,053	$	2,371,638		$	312,026	$	3,786,717	$	798,506	$	4,585,223

	December 31, 2024
(In thousands)	Northern		Southern			Financial Services		Segment Total		Corporate and Unallocated		Total
Deposits on real estate under option or contract	$	12,209	$	57,274		$	—	$	69,483	$	—	$	69,483
Inventory (a)	1,041,713		1,980,666			—		3,022,379		—		3,022,379
Investments in joint venture arrangements	—		65,334			—		65,334		—		65,334
Other assets	37,721		132,316		(b)	370,558		540,595		852,005		1,392,600
Total assets	$	1,091,643	$	2,235,590		$	370,558	$	3,697,791	$	852,005	$	4,549,796

(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.