The Company's homes are built on-site and marketed in four major geographic regions,
or segments: North, Southeast, Texas and West. Within each of those segments,
the Company operated in the following metropolitan areas:
North Baltimore, Chicago, Delaware, Indianapolis, Metro Washington, D.C., Minneapolis/St.
Paul, New Jersey, Northern Virginia and Philadelphia
Southeast Atlanta, Charleston, Charlotte, Myrtle Beach, Orlando, Raleigh/Durham
and Tampa
Texas Austin, Dallas/Fort Worth, Houston and San Antonio
West Denver, Las Vegas, Phoenix and Southern California
The Company has decentralized operations to capitalize on the expertise of
its local division presidents and management teams. Each of its homebuilding
divisions across the country generally consists of a division president; a controller;
management personnel focused on land acquisition, entitlement and development,
sales, construction, product development, customer service and purchasing; and
accounting and administrative personnel. The Company's operations in each of
its homebuilding markets may differ due to a number of market-specific factors,
including regional economic conditions and job growth; land availability and
development requirements; consumer preferences; competition from other homebuilders;
and resale home activity. The Company not only considers each of these factors
upon entering into new markets, but also in determining the extent of its operations
and the allocation of its capital in existing markets. Market experience of
local management teams is critical to the decision-making process regarding
the Company's operations.
The Company markets attached and detached single-family homes, which are generally
targeted to entry-level and first- and second-time move-up buyers. Its diverse
product lines are tailored to the local styles and preferences found in each
of its geographic markets. The product line offered in a particular community
is determined in conjunction with the land acquisition process and is dependent
upon a number of factors, including consumer preferences, competitive product
offerings, and construction and development costs.
The Company generally offers several different floor plans within its communities,
each with unique architectural styles. Exteriors may be further distinguished
by the use of stone, stucco, brick or siding. Some home designs may be used
in multiple communities across several divisions within the Company, with modifications
to suit local trends. Additionally, new designs are continuously being developed
to replace or augment existing ones in order to ensure that homes reflect current
consumer preferences. The Company relies on its own architectural staff and
also engages unaffiliated architectural firms to develop new designs.
Homebuyers are able to customize certain features of their homes by selecting
from numerous options and upgrades displayed in the Company's model homes and
design centers. These design centers, which are conveniently located in most
of the Company's markets, feature state-of-the-art technology and showcase upgrades
that represent sources of additional revenue and profit for the Company. The
Company typically offers a variety of potential options and upgrades for an
additional charge, such as different choices of flooring, countertops and appliances.
It designs its base house and option packages to meet the needs of its customers.
Options and upgrades contributed 14.0 percent of homebuilding revenues in 2014
and resulted in significantly higher margins in comparison to base homes.