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Business Segments | 12 Months Ended
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Dec. 31, 2024
Segment Reporting [Abstract] |
Segment Reporting Disclosure [Text Block] | NOTE 15. 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 consist of the Chief Executive Officer and Chief Financial Officer. The Company’s chief operating decision makers evaluate the Company’s operating income 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. The chief operating decision makers use operating income for each segment predominately in the annual budget and forecasting process. The chief operating decision makers consider budget-to-actual variances for profit measures on a quarterly basis when making decisions about the allocation of operating and capital resources to each segment. The chief operating decisions maker also use segment operating income to assess the performance of each segment by comparing the results of each segment with one another and in determining the compensation of certain employees. 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 2024, 2023 and 2022, as well as the Company’s income before income taxes for such periods:
| Year Ended December 31,
(In thousands) | 2024 |  | 2023 |  | 2022
Revenue: |  |  |  |  |
Northern homebuilding | $ | 1,900,013 |  |  | $ | 1,523,943 |  |  | $ | 1,714,236 |
Southern homebuilding | 2,488,451 |  |  | 2,415,730 |  |  | 2,330,962 |
Financial services (a) | 116,206 |  |  | 93,829 |  |  | 86,195 |
Total revenue | $ | 4,504,670 |  |  | $ | 4,033,502 |  |  | $ | 4,131,393 |
Cost of Sales: |  |  |  |  |
Northern homebuilding | $ | 1,480,326 |  |  | $ | 1,228,949 |  |  | $ | 1,379,936 |
Southern homebuilding | 1,825,455 |  |  | 1,785,624 |  | 1,707,615
Financial services (a) | — |  |  | — |  |  | — |
Total cost of sales | $ | 3,305,781 |  |  | $ | 3,014,573 |  |  | $ | 3,087,551 |
General and administrative expense: |  |  |  |  |
Northern homebuilding | $ | 42,908 |  |  | $ | 36,827 |  |  | $ | 36,659 |
Southern homebuilding | 76,200 |  |  | 65,078 |  |  | 61,775 |
Financial services (a) | 52,826 |  |  | 45,115 |  |  | 41,813 |
Segment general and administrative expense | $ | 171,934 |  |  | $ | 147,020 |  |  | $ | 140,247 |
Corporate and unallocated general and administrative expense | 86,488 |  |  | 75,745 |  |  | 74,564 |
Total general and administrative expense | $ | 258,422 |  |  | $ | 222,765 |  |  | $ | 214,811 |
Selling expense: |  |  |  |  |
Northern homebuilding | $ | 95,680 |  |  | $ | 81,847 |  |  | $ | 80,142 |
Southern homebuilding | 136,198 |  |  | 124,860 |  |  | 109,698 |
Financial services (a) | — |  |  | — |  |  | — |
Segment selling expense | $ | 231,878 |  |  | $ | 206,707 |  |  | $ | 189,840 |
Corporate and unallocated selling expense | 2,495 |  |  | 2,235 |  |  | 1,740 |
Total selling expense: | $ | 234,373 |  |  | $ | 208,942 |  |  | $ | 191,580 |
Operating income (loss): |  |  |  |  |
Northern homebuilding | $ | 281,099 |  |  | $ | 176,320 |  |  | $ | 217,499 |
Southern homebuilding | 450,598 |  |  | 440,168 |  |  | 451,874 |
Financial services (a) | 63,380 |  |  | 48,714 |  |  | 44,382 |
Segment operating income | $ | 795,077 |  |  | $ | 665,202 |  |  | $ | 713,755 |
Corporate selling, general and administrative expense | (88,983) |  |  | (77,980) |  |  | (76,304) |
Total operating income (a) | $ | 706,094 |  |  | $ | 587,222 |  |  | $ | 637,451 |
Interest (income) expense - net: |  |  |  |  |
Northern homebuilding | $ | (228) |  |  | $ | (186) |  |  | $ | (469) |
Southern homebuilding | (2,554) |  |  | (1,703) |  |  | (1,447) |
Financial services (a) | 13,698 |  |  | 10,360 |  |  | 5,122 |
Segment Interest (income) expense - net | $ | 10,916 |  |  | $ | 8,471 |  |  | $ | 3,206 |
Corporate Interest (income) expense - net | (38,430) |  |  | (28,493) |  |  | (956) |
Total interest (income) expense - net | $ | (27,514) |  |  | $ | (20,022) |  |  | $ | 2,250 |
Other income (b) | $ | — |  |  | $ | (33) |  |  | $ | (6) |
Income before income taxes | $ | 733,608 |  |  | $ | 607,277 |  |  | $ | 635,207 |
(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 equity in (income) loss from joint venture arrangements. The following table shows, by segment, depreciation and amortization expense for the years ended December 31, 2024, 2023 and 2022:
| Year Ended December 31,
(In thousands) | 2024 |  | 2023 |  | 2022
Depreciation and amortization: |  |  |  |  |
Northern homebuilding | $ | 3,787 |  |  | $ | 3,673 |  |  | $ | 3,308 |
Southern homebuilding | 3,636 |  |  | 2,965 |  |  | 2,790 |
Financial services | 1,130 |  |  | 810 |  |  | 2,178 |
Segment depreciation and amortization | $ | 8,553 |  |  | $ | 7,448 |  |  | $ | 8,276 |
Corporate | 8,833 |  |  | 8,343 |  |  | 8,898 |
Total depreciation and amortization | $ | 17,386 |  |  | $ | 15,791 |  |  | $ | 17,174 |
The following tables show total assets by segment at December 31, 2024 and 2023:
| 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 |
| December 31, 2023
(In thousands) | Northern |  | Southern |  | Financial Services |  | Segment Total |  | Corporate and unallocated |  | Total
Deposits on real estate under option or contract | $ | 8,990 |  |  | $ | 42,618 |  |  | $ | — |  |  | $ | 51,608 |  |  | $ | — |  |  | $ | 51,608 |
Inventory (a) | 1,016,982 |  |  | 1,728,561 |  |  | — |  |  | 2,745,543 |  |  | — |  |  | 2,745,543 |
Investments in joint venture arrangements | — |  |  | 44,011 |  |  | — |  |  | 44,011 |  |  | — |  |  | 44,011 |
Other assets | 37,171 |  |  | 104,306 |  | (b) | 243,176 |  |  | 384,653 |  |  | 796,625 |  |  | 1,181,278 |
Total assets | $ | 1,063,143 |  |  | $ | 1,919,496 |  |  | $ | 243,176 |  |  | $ | 3,225,815 |  |  | $ | 796,625 |  |  | $ | 4,022,440 |
(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. 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