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Business Segments | 12 Months Ended
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Dec. 31, 2022
Segment Reporting [Abstract] |
Segment Reporting Disclosure [Text Block] | Business Segments The application of segment reporting requires significant judgment in determining our operating segments. Operating segments are defined as a component of an enterprise for which discrete financial information is available and is reviewed regularly by the Company’s chief operating decision makers to evaluate performance, make operating decisions and determine how to allocate resources. 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 because each homebuilding division engages in business activities from which it earns revenue, primarily from the sale and construction of single-family attached and detached homes, acquisition and development of land, and the occasional sale of lots to third parties. Our financial services operations generate revenue primarily from the origination, sale and servicing of mortgage loans and title services primarily for purchasers of the Company’s homes and are included in our financial services reportable segment. Corporate is a non-operating segment that develops and implements strategic initiatives and supports our operating segments by centralizing key administrative functions such as accounting, finance, treasury, information technology, insurance and risk management, legal, marketing and human resources. In accordance with the aggregation criteria defined in ASC 280, we have determined our reportable segments as follows: Northern homebuilding, Southern homebuilding, and financial services operations. The homebuilding operating segments included in each reportable segment have been aggregated because they share similar aggregation characteristics as 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. We may, however, be required to reclassify our reportable segments if markets that currently are being aggregated do not continue to share these aggregation characteristics. 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 | Fort Myers/Naples, 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 and interest (income) expense for 2022, 2021 and 2020, as well as the Company’s income before income taxes for such periods:
| Year Ended December 31,
(In thousands) | 2022 |  | 2021 |  | 2020
Revenue: |  |  |  |  |
Northern homebuilding | $ | 1,714,236 |  |  | $ | 1,595,746 |  |  | $ | 1,256,405 |
Southern homebuilding | 2,330,962 |  |  | 2,048,113 |  |  | 1,702,727 |
Financial services (a) | 86,195 |  |  | 102,028 |  |  | 87,013 |
Total revenue | $ | 4,131,393 |  |  | $ | 3,745,887 |  |  | $ | 3,046,145 |
Operating income (loss): |  |  |  |  |
Northern homebuilding | $ | 217,499 |  |  | $ | 211,958 |  |  | $ | 125,588 |
Southern homebuilding (b) | 451,874 |  |  | 312,661 |  |  | 202,561 |
Financial services (a) | 44,382 |  |  | 62,291 |  |  | 53,395 |
Less: Corporate selling, general and administrative expense | (76,304) |  |  | (68,614) |  |  | (62,283) |
Total operating income (a) (b) (c) | $ | 637,451 |  |  | $ | 518,296 |  |  | $ | 319,261 |
Interest expense (income): |  |  |  |  |
Northern homebuilding | $ | (469) |  |  | $ | 76 |  |  | $ | 2,465 |
Southern homebuilding | (1,447) |  |  | (464) |  |  | 4,292 |
Financial services (a) | 5,122 |  |  | 3,912 |  |  | 2,927 |
Corporate | (956) |  |  | (1,368) |  |  | — |
Total interest expense | $ | 2,250 |  |  | $ | 2,156 |  |  | $ | 9,684 |
Other income (d) | $ | (6) |  |  | $ | (2,046) |  |  | $ | (466) |
Loss on early extinguishment of debt (e) | — |  |  | 9,072 |  |  | — |
Income before income taxes | $ | 635,207 |  |  | $ | 509,114 |  |  | $ | 310,043 |
Depreciation and amortization: |  |  |  |  |
Northern homebuilding | $ | 3,308 |  |  | $ | 3,407 |  |  | $ | 3,342 |
Southern homebuilding | 2,790 |  |  | 3,644 |  |  | 4,468 |
Financial services | 2,178 |  |  | 2,227 |  |  | 3,034 |
Corporate | 8,898 |  |  | 7,637 |  |  | 6,734 |
Total depreciation and amortization | $ | 17,174 |  |  | $ | 16,915 |  |  | $ | 17,578 |
(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 a $0.9 million net charge for stucco-related repair costs in certain of our Florida communities (as more fully discussed in Note 8 to our Consolidated Financial Statements) taken during 2020. (c)For the years ended December 31, 2022 and 2020, total operating income was reduced by $18.4 million and $8.4 million, respectively, related to asset impairment charges taken during the period. (d)Other income is comprised of the gain on the sale of a non-operating asset during the fourth quarter of 2021 as well as equity in income from joint venture arrangements. (e)Loss on early extinguishment of debt relates to the early redemption of our 5.625% senior notes due 2025 (the “2025 Senior Notes”) during the third quarter of 2021, consisting of a prepayment premium due to early redemption and a write-off of unamortized debt issuance costs. The following tables show total assets by segment at December 31, 2022 and 2021:
| December 31, 2022
(In thousands) | Northern |  | Southern |  | Corporate, Financial Services and Unallocated |  | Total
Deposits on real estate under option or contract | $ | 8,138 |  |  | $ | 47,601 |  |  | $ | — |  |  | $ | 55,739 |
Inventory (a) | 1,100,472 |  |  | 1,672,391 |  |  | — |  |  | 2,772,863 |
Investments in joint venture arrangements | — |  |  | 51,554 |  |  | — |  |  | 51,554 |
Other assets | 38,265 |  |  | 103,182 |  | (b) | 693,320 |  |  | 834,767 |
Total assets | $ | 1,146,875 |  |  | $ | 1,874,728 |  |  | $ | 693,320 |  |  | $ | 3,714,923 |
| December 31, 2021
(In thousands) | Northern |  | Southern |  | Corporate, Financial Services and Unallocated |  | Total
Deposits on real estate under option or contract | $ | 4,123 |  |  | $ | 48,795 |  |  | $ | — |  |  | $ | 52,918 |
Inventory (a) | 987,258 |  |  | 1,412,258 |  |  | — |  |  | 2,399,516 |
Investments in joint venture arrangements | — |  |  | 57,121 |  |  | — |  |  | 57,121 |
Other assets | 37,527 |  |  | 63,844 |  | (b) | 628,927 |  |  | 730,298 |
Total assets | $ | 1,028,908 |  |  | $ | 1,582,018 |  |  | $ | 628,927 |  |  | $ | 3,239,853 |
(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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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