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Business Segments | 3 Months Ended
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Mar. 31, 2020
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. During 2019, we decided to wind down our Washington D.C. operations, which was substantially complete by December 31, 2019. As a result, during the second quarter of 2019, we re-evaluated our reportable segments and elected to aggregate our Charlotte and Raleigh, North Carolina operating segments into our existing Southern region based on the aggregation criteria described above. As a result of this re-evaluation, we determined that our reportable segments are: Northern homebuilding; Southern homebuilding; and financial services operations. All prior year segment information has been recast to conform with this new presentation. The change in the reportable segments has no effect on the Company's condensed consolidated balance sheets, statement of income or statement of cash flows for the periods presented. The homebuilding operating segments that comprise each of our reportable segments are as follows:
Northern | Southern
Chicago, Illinois | Orlando, Florida
Cincinnati, Ohio | Sarasota, Florida
Columbus, Ohio | Tampa, Florida
Indianapolis, Indiana | Austin, Texas
Minneapolis/St. Paul, Minnesota | Dallas/Fort Worth, Texas
Detroit, Michigan | Houston, Texas
| San Antonio, Texas
| Charlotte, North Carolina
| Raleigh, North Carolina
The following table shows, by segment: revenue, operating income and interest expense for the three months ended March 31, 2020 and 2019, as well as the Company’s income before income taxes for such periods:
| Three Months Ended March 31,
(In thousands) | 2020 |  | 2019
Revenue: |  |  |
Northern homebuilding | $ | 240,270 |  |  | $ | 200,362 |
Southern homebuilding | 323,866 |  |  | 268,964 |
Financial services (a) | 13,467 |  |  | 11,783 |
Total revenue | $ | 577,603 |  |  | $ | 481,109 |
Operating income: |  |  |
Northern homebuilding (b) | $ | 20,881 |  |  | $ | 16,535 |
Southern homebuilding | 28,857 |  |  | 17,594 |
Financial services (a) | 6,362 |  |  | 5,695 |
Less: Corporate selling, general and administrative expense | (10,096 | ) |  | (9,432 | )
Total operating income (b) | $ | 46,004 |  |  | $ | 30,392 |
Interest expense: |  |  |
Northern homebuilding | $ | 1,811 |  |  | $ | 2,481 |
Southern homebuilding | 2,158 |  |  | 3,568 |
Financial services (a) | 731 |  |  | 743 |
Total interest expense | $ | 4,700 |  |  | $ | 6,792 |
Equity in (income) loss from joint venture arrangements | (52 | ) |  | 121 |
Income before income taxes | $ | 41,356 |  |  | $ | 23,479 |
(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 $0.4 million of acquisition-related charges taken during the three months ended March 31, 2019 as a result of our acquisition of Pinnacle Homes in Detroit, Michigan on March 1, 2018.
The following tables show total assets by segment at March 31, 2020 and December 31, 2019:
| March 31, 2020
(In thousands) | Northern |  | Southern |  | Corporate, Financial Services and Unallocated |  | Total
Deposits on real estate under option or contract | $ | 4,407 |  |  | $ | 27,298 |  |  | $ | — |  |  | $ | 31,705 |
Inventory (a) | 821,291 |  |  | 969,535 |  |  | — |  |  | 1,790,826 |
Investments in joint venture arrangements | 1,688 |  |  | 38,618 |  |  | — |  |  | 40,306 |
Other assets | 26,571 |  |  | 52,959 |  | (b) | 256,596 |  |  | 336,126 |
Total assets | $ | 853,957 |  |  | $ | 1,088,410 |  |  | $ | 256,596 |  |  | $ | 2,198,963 |
| December 31, 2019
(In thousands) | Northern |  | Southern |  | Corporate, Financial Services and Unallocated |  | Total
Deposits on real estate under option or contract | $ | 3,655 |  |  | $ | 24,877 |  |  | $ | — |  |  | $ | 28,532 |
Inventory (a) | 783,972 |  |  | 957,003 |  |  | — |  |  | 1,740,975 |
Investments in joint venture arrangements | 1,672 |  |  | 36,213 |  |  | — |  |  | 37,885 |
Other assets | 21,564 |  |  | 52,662 |  | (b) | 223,976 |  |  | 298,202 |
Total assets | $ | 810,863 |  |  | $ | 1,070,755 |  |  | $ | 223,976 |  |  | $ | 2,105,594 |
(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.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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