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Business Segments
 12 Months Ended
Dec. 31, 2023
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:
NorthernSouthern
Chicago, IllinoisOrlando, Florida
Cincinnati, OhioSarasota, Florida
Columbus, OhioTampa, Florida
Indianapolis, IndianaFort Myers/Naples, Florida
Minneapolis/St. Paul, MinnesotaAustin, Texas
Detroit, MichiganDallas/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 2023, 2022 and 2021, as well as the Company’s income before income taxes for such periods:
Year Ended December 31,
(In thousands)202320222021
Revenue:
Northern homebuilding$1,523,943 $1,714,236 $1,595,746 
Southern homebuilding2,415,730 2,330,962 2,048,113 
Financial services (a)
93,829 86,195 102,028 
Total revenue$4,033,502 $4,131,393 $3,745,887 
Operating income (loss):
Northern homebuilding $176,320 $217,499 $211,958 
Southern homebuilding
440,168 451,874 312,661 
Financial services (a)
48,714 44,382 62,291 
Less: Corporate selling, general and administrative expense(77,980)(76,304)(68,614)
Total operating income (a)
$587,222 $637,451 $518,296 
Interest (income) expense - net:
Northern homebuilding$(186)$(469)$76 
Southern homebuilding(1,703)(1,447)(464)
Financial services (a)
10,360 5,122 3,912 
Corporate(28,493)(956)(1,368)
Total interest (income) expense - net
$(20,022)$2,250 $2,156 
Other income (b)
$(33)$(6)$(2,046)
Loss on early extinguishment of debt (c)
— — 9,072 
Income before income taxes$607,277 $635,207 $509,114 
Depreciation and amortization:   
Northern homebuilding$3,673 $3,308 $3,407 
Southern homebuilding2,965 2,790 3,644 
Financial services810 2,178 2,227 
Corporate8,343 8,898 7,637 
Total depreciation and amortization$15,791 $17,174 $16,915 
(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)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.
(c)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, 2023 and 2022:
December 31, 2023
(In thousands)NorthernSouthernCorporate, Financial Services and UnallocatedTotal
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 assets37,171 104,306 
(b)
1,039,801 

1,181,278 
Total assets$1,063,143 $1,919,496 $1,039,801 $4,022,440 
December 31, 2022
(In thousands)NorthernSouthernCorporate, Financial Services and UnallocatedTotal
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 assets38,265 103,182 
(b)
693,320 834,767 
Total assets$1,146,875 $1,874,728 $693,320 $3,714,923 
(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.