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Business Segments
9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block] Business Segments
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

In October 2021, we announced our entry into the Nashville, Tennessee market.
The following table shows, by segment, revenue, operating income and interest (income) expense for the three and nine months ended September 30, 2021 and 2020, 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)2021202020212020
Revenue:
Northern homebuilding$400,564 $350,591 $1,151,349 $890,201 
Southern homebuilding482,960 468,384 1,463,707 1,188,056 
Financial services (a)
20,795 28,946 79,079 61,461 
Total revenue$904,319 $847,921 $2,694,135 $2,139,718 
Operating income:
Northern homebuilding$59,009 $38,365 $159,975 $91,487 
Southern homebuilding72,957 55,861 218,236 129,037 
Financial services (a)
10,820 19,887 50,381 37,706 
Less: Corporate selling, general and administrative expense(17,566)(18,017)(50,361)(41,891)
Total operating income$125,220 $96,096 $378,231 $216,339 
Interest expense (income):
Northern homebuilding$ $122 $76 $2,636 
Southern homebuilding(381)409 (224)3,759 
Financial services (a)
885 708 2,777 2,059 
Corporate(578)— (1,075)— 
Total interest (income) expense$(74)$1,239 $1,554 $8,454 
Equity in loss (income) from joint venture arrangements50 (252)(145)(307)
Loss on early extinguishment of debt9,072 — 9,072 — 
Income before income taxes$116,172 $95,109 $367,750 $208,192 
(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, 2021 and December 31, 2020:
September 30, 2021
(In thousands)NorthernSouthernCorporate, Financial Services and UnallocatedTotal
Deposits on real estate under option or contract$4,079 $44,521 $ $48,600 
Inventory (a)
950,220 1,354,323  2,304,543 
Investments in joint venture arrangements 42,466  42,466 
Other assets40,229 72,983 
(b)
537,779 650,991 
Total assets$994,528 $1,514,293 $537,779 $3,046,600 

December 31, 2020
(In thousands)NorthernSouthernCorporate, Financial Services and UnallocatedTotal
Deposits on real estate under option or contract$5,031 $40,326 $— $45,357 
Inventory (a)
847,524 1,023,727 — 1,871,251 
Investments in joint venture arrangements1,378 33,295 — 34,673 
Other assets37,465 57,588 
(b)
596,711 691,764 
Total assets$891,398 $1,154,936 $596,711 $2,643,045 
(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.