What changed in this filing

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Item 1. Business

2022-02-03 compared with 2021-02-05 · 75 added, 58 removed, 152 unchanged (47% of the section changed)

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We build and sell homes under our Century Communities and Century Complete brands.

Our Century Communities brand targets a wide range of buyer profiles including:

entry-level, first and second time move-up, and lifestyle homebuyers, and provides our homebuyers with the ability to personalize their homes through certain option and upgrade selections.

On February 6, 2020, in order to better align with our Century brand, we announced the rebranding of Wade Jurney Homes to Century Complete.

We believe this rebranding will assist in showcasing the value proposition to potential buyers.

The newly positioned Century Complete brand will operate similarly to Wade Jurney Homes, adopting its business strategy and continuing to provide comparable offerings.

Our Century Complete brand targets first time homebuyers, primarily sells homes through retail studios and over the internet, and provides no option or upgrade opportunities.

Our Century Communities brand offers a wide range of buyer profiles including:

entry-level, first and second time move-up, and lifestyle homebuyers, and provides our homebuyers with the ability to personalize their homes through certain option and upgrade opportunities.

Our Century Complete brand targets entry-level homebuyers, primarily sells homes through retail studios and the internet, and generally provides no option or upgrade opportunities.

We now have six states where both Century brands have a presence and we believe there are more opportunities for increased penetration within our over 40 high-growth markets to enable both brands to benefit from increased scale and enhanced operational efficiencies.

Our homebuilding operations are organized into the following five reportable segments:

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Additionally, our indirect wholly-owned subsidiaries, Inspire Home Loans Inc., Parkway Title, LLC, and IHL Home Insurance Agency, LLC, which provide mortgage, title, and insurance services, respectively, primarily to our home buyers have been identified as our Financial Services segment.

While we offer homes that appeal to a broad range of entry-level, move-up, and lifestyle homebuyers, our offerings are heavily weighted towards providing affordable housing options in each of our homebuyer segments.

Additionally, we prefer building move-in-ready homes over built-to-order homes, which we believe allows for a faster construction process, advantageous pricing with subcontractors, and shortened time period from home sale to home delivery, thus allowing us to more appropriately price the homes and deploy our capital.

Of the 10,805 homes delivered during 2021, approximately 75% of our deliveries were made to entry-level homebuyers and approximately 87% of homes delivered were built as move-in ready homes.

Since our initial public offering in 2014, we have expanded geographically through the acquisitions of other homebuilders and organic entrance into new markets.

We are one of the largest homebuilders in the United States and our common shares trade on the New York Stock Exchange under the symbol “CCS.” As of December 31, 2020, we operated in the 17 states and 28 markets depicted below.

We are one of the largest homebuilders in the United States and our common shares trade on the New York Stock Exchange under the symbol “CCS.” As of December 31, 2021, we operated in the 17 states and over 40 markets depicted below:

We operate our homebuilding operations within the following five reportable segments:

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 Mountain (Arizona, Colorado, Nevada and Utah)

 Southeast (Georgia, North Carolina, South Carolina and Tennessee)

 Century Complete (Alabama, Arizona, Florida, Georgia, Indiana, Iowa, Michigan, North Carolina, Ohio, South Carolina, and Texas)

 Southeast (Florida, Georgia, North Carolina, South Carolina and Tennessee)

 Century Complete (Alabama, Arizona, Florida, Georgia, Indiana, Kentucky, Michigan, North Carolina, Ohio, South Carolina and Texas)

We have also identified our Financial Services operations, which provide mortgage, title, and insurance services to our and other homebuyers, as a sixth reportable segment.

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See Note 2 – Reporting Segments in the Notes to the Consolidated Financial Statements for further detail on our reportable segments.

The outbreak of the novel coronavirus, (COVID-19), which was declared a pandemic by the World Health Organization on March 11, 2020, created significant volatility, disruption, and uncertainty across the nation and abroad.

It resulted in government restrictions, such as “stay-at-home” or “shelter-in-place” directives, quarantines, travel advisories and the implementation of social distancing measures, leading to the closure of businesses and weakened economic conditions resulting in an economic slowdown and recession.

The homebuilding industry started to experience slowing sales trends in mid-March through April of 2020 at the outset of the widespread uncertainty concerning the pandemic.

However, home sales began to rebound in May and June of 2020, which continued throughout the remainder of 2020.

During the second half of 2020, the homebuilding industry enjoyed advantageous macro-economic conditions.

These conditions included an increase in demand for new housing, particularly entry-level housing, as a result of the COVID-19 pandemic, which accelerated the trend of migration out of high-density urban areas and into suburban areas, historically low interest rates on mortgage products, including rates on 30-year fixed mortgages, which decreased over 100 basis points during the year to 2.68% as of December 31, 2020, a low supply of available inventories and positive demographic trends.

These conditions, coupled with our strategy to focus on entry-level housing, resulted in a positive sales environment, which we leveraged in 2020 to increase net new home contracts by 37.7% to 10,822, and an average absorption rate (the rate at which home orders are contracted, net of cancellations) per community of 4.6 per month, an increase of 48.4%, in each case over 2019.

The increase in demand has also resulted in increased prices for and shortages of labor, land and raw materials, including in particular lumber.

During 2020, we successfully offset most of these cost increases through increases in our selling prices.

Positive macro-economic conditions, along with our operating efficiencies, business strategy and geographic expansion through the acquisition of other homebuilders and organic entrance into new markets has resulted in significant increases in total revenues and net income over the last five years of 218% and 312%, respectively, as outlined below:

Positive macro-economic conditions, along with our operating efficiencies, business strategy and geographic expansion through the acquisition of other homebuilders and organic entrance into new markets has resulted in significant increases in total revenues, net income, earnings per diluted share, and stockholders’ equity over the last five years of 196%, 891%, 613%, and 140% respectively, as outlined below:

The outbreak of COVID-19, which was declared a pandemic by the World Health Organization on March 11, 2020, created significant volatility, disruption, and uncertainty across the nation and abroad.

After an initial slowing of home sales trends in early spring of 2020, due in part to consumer uncertainty, home sales sharply rebounded, aided by historically low interest rates, lack of supply, and renewed desire from customers to move out of urban areas and/or apartments and into new homes in suburban areas, which desire was likely accelerated by the COVID-19 pandemic.

These positive trends and market dynamics continued through the year ended December 31, 2021.

Although the trajectory and strength of our markets have continued to remain strong and consumer demand allowed us to pass on increased costs through increases in our selling prices and increase our margins during 2021, we continued to experience shortages of labor, land and raw materials, delays and material and labor supply cost pressures, and elongated construction cycle times to build homes in many of our markets, caused in part by increased demand, global supply chain disruptions and inflation, during 2021 that could negatively impact our margins in future periods.

While the impact of the COVID-19 pandemic will continue to evolve and at any given time recovery could be slowed or reversed by a number of factors, including the emergence of new variants of COVID-19, such as Delta and Omicron, we believe we are well positioned from a cash and liquidity standpoint not only to operate in an uncertain environment,

but also to continue to grow with the market and pursue other ways to properly deploy capital to enhance returns, which may include taking advantage of debt refinancing and/or strategic opportunities as they arise.

Our financial results for the year ended December 31, 2021 were driven by continued favorable market dynamics across our markets.

These conditions included an increase in demand for new housing, particularly entry-level housing, impacted by the COVID-19 pandemic, which accelerated the trend of migration out of high-density urban areas and into suburban areas, historically low interest rates on mortgage products, including rates on 30-year fixed mortgages, a low supply of available inventories and positive demographic trends.

These conditions, coupled with our strategy to focus on entry-level housing (approximately 75% of our deliveries in 2021 qualified for Federal Housing Administration-insured (“FHA”) mortgages) resulted in a positive sales environment, which we leveraged in 2021 to increase net new home contracts to 12,017, an 11.0% increase over the prior year period.

Homebuilding Operations

Our strategy is focused on increasing the returns on our inventory while generating strong profitability.

Our strategy is focused on increasing the returns on our stockholders’ equity and inventory, and continuing to generate growth and strong profitability.

In general, we are focused on the following initiatives:

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 Expanding into new markets that meet our underwriting criteria either through organic start-up operations or through acquisitions of existing homebuilders;

 Controlling costs, including costs of home sales revenue and selling, general and administrative expenses, and generating further efficiencies, including through the increased reliance on digital marketing and direct outreach to potential customers through our website and digital tools, to achieve increased profitability.

 Evaluation of opportunistic strategies for construction of single-family and multi-family rental units;

Our operating strategy has resulted in significant growth in revenue and income before income taxes over the last five years, and we believe it will continue to produce positive results.

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We believe these conditions create strong demand for new housing, and these locations represent what we believe to be attractive opportunities for long-term growth.

We also seek assets that have desirable characteristics, such as good access to major job centers, schools, shopping, recreation and transportation facilities, and we strive to offer a broad spectrum of product types in these locations.

We also seek assets that have desirable characteristics, such as good access to major job centers, schools, shopping, recreation and transportation facilities.

Location, product, price point and customer service are key components of the connection we seek to establish with each individual homebuyer.

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Potential land acquisitions are approved by our Corporate office above established limits to ensure appropriate capital allocations taking into consideration current and projected inventory levels and risk adjusted returns.

We strive to increase the number of lots we own and control across our markets in order to support future increases in the number of our home deliveries, while also maintaining a balance between the number of owned lots as compared to lots we control through option

This balance allows us flexibility to adjust to local market conditions as they develop.

This strategy has resulted in an owned and under control lot position of 49,965 as of December 31, 2020, of which 42% were owned and 58% were controlled through option contacts.

This strategy has resulted in an owned and under control lot position of 79,859 as of December 31, 2021, of which 41% were owned and 59% were controlled through option contracts.

Our owned and controlled lot position since 2017 and our owned and controlled lot position by segment as of December 31, 2021 are outlined below.

Design and construction

We engage architects, engineers and other professionals in connection with the home design process who are familiar with local market preferences, constraints, conditions and requirements.

We engage architects, engineers and other professionals in connection with the home design process who are familiar with local market preferences, constraints, conditions and requirements, and we generally own the architectural design rights to our home plans.

We serve as the general contractor, with all construction work typically performed by subcontractors.

While we maintain long-standing relationships with many of our subcontractors and design professionals, we typically do not enter into long-term contractual commitments with them and as a result may be subject to shortages of qualified and skilled labor.

While we maintain long-standing relationships with many of our subcontractors and design professionals, we typically do not enter into long-term contractual

commitments with them and as a result may be subject to shortages of qualified and skilled labor.

Our personnel, along with subcontracted marketing and design consultants, carefully design the exterior and interior of each home to coincide with the needs of targeted homebuyers.

When constructing homes, we use various construction materials and components including lumber, steel and concrete.

It has typically taken us four to eight months or more in some instances to construct a home.

It has typically taken us four to eight months or more in some instances to construct a home, though due to supply chain shortages during 2021, the average time to construct a home increased sequentially each quarter as compared to the previous quarter.

While we attempt to contract for all input costs of the home at the start of construction, it is not always possible to do so.

In those instances, labor and materials are subject to price fluctuations during the construction period.

Such price fluctuations are caused by several factors, among them seasonal variation in availability and demand for labor and materials.

We may experience shortages in the availability of materials and/or labor in each of our markets.

These shortages and delays may result in delays in the delivery of homes under construction, and/or reduced gross margins from home sales.

Such price fluctuations are caused by several factors, including recent global supply chain disruptions as well as seasonal variation in availability and demand for labor and materials.

We may experience shortages in the availability of materials and/or labor in each of our markets and these shortages and delays may result in delays in the delivery of homes under construction, and/or reduced gross margins from home sales.

We are dependent upon building material suppliers for a continuous flow of certain materials.

Whenever possible, we utilize standard products available from multiple sources and utilize our buying power and relationships throughout the supply chain to ensure availability of products.

Whenever possible, we utilize standard products available from multiple national and international sources and utilize our buying power and relationships throughout the supply chain to ensure availability of products.

We may also contract on a national level, directly with suppliers in many instances, to ensure availability and competitive prices of key materials.

In the past, necessary labor and materials have been generally available to us in adequate supply.

We design and engineer our homes for energy efficiency to reduce the impact on the environment and lower energy costs to our homeowners.

We have historically qualified approximately 70% of our homes for Energy Efficient Home Credits under Internal Revenue Code Section 45L .

Homebuilding marketing and sales process – Century Communities brand

Our Century Communities brand has a focus on affordable housing options in each market but builds an extensive range of home types across a variety of price points.

Our Century Communities brand strives to provide our customers with a “Home for Every Dream.”

In many of our communities, we provide our customers with customization options to suit their lifestyle needs and have developed a number of home designs with features such as outdoor living spaces, one-story living and first floor master bedroom suites to appeal to broad design needs, while often offering homebuyers environmentally friendly alternatives, such as solar power to supplement a home’s energy needs.

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Our in-house sales force typically works from sales offices located in model homes close to or in each community.

In addition, in response to the COVID-19 pandemic and government restrictions, during 2020, we shifted our sales process to offer additional virtual online tours and appointments and where permitted, appointment only in-person meetings that comply with social distancing and other health and safety requirements and protocols.

In addition, in response to the COVID-19 pandemic and government restrictions, during 2020, we shifted our sales process to offer additional virtual online tours and appointments and where permitted, appointment only in-person meetings that complied with social distancing and other health and safety requirements and protocols.

During 2021, we provided the ability for our customers to purchase homes directly on our website.

Sales representatives assist potential buyers by providing them with basic floor plans, price information, development and construction timetables, tours of model homes where available and the selection of available options.

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We also attempt to operate in conspicuously located areas that permit us to take advantage of local traffic patterns.

Model homes play a significant role in our marketing efforts by not only creating an attractive atmosphere, but also by displaying options and upgrades.

Model homes play a significant role in our marketing efforts not only by creating an attractive atmosphere, but also by displaying options and upgrades.

Homebuilding marketing and sales process – Century Complete brand

Our Century Complete brand primarily sells homes through our own sales representatives located in retail locations which we refer to as studios, as opposed to model homes;

Our Century Complete brand primarily sells affordable homes to entry-level buyers through our own sales representatives located in retail locations which we refer to as studios, as opposed to model homes;

however, model and vignetted homes are used in certain instances.

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We also sell homes directly through our Century Complete website and utilize the services of independent real estate brokers in many cases.

Our Century Complete brand aims to provide our customers with “More Home, Less Money.”

Our Century Complete brand often competes with resales as well as other new home builders within the submarkets in which we operate.

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Our philosophy is to be the price leader through providing a limited number of floor plans, with no options or upgrades offered.

Our advertising and marketing efforts are focused on cost effective means of reaching potential customers including centralized digital marketing, and direct outreach to independent real estate brokers.

Our advertising and marketing efforts are focused on cost effective means of reaching potential customers including centralized digital marketing, and direct

outreach to independent real estate brokers.

Our goal is to leverage our studios and advertising and marketing efforts to generate homebuyer leads, which are then actively pursued by our sales associates.

Our marketing and sales process for both of our brands combined with our overall growth has resulted in a 252% increase in units in backlog as of December 31, 2021 over the last five years as outlined below:

Customer experience

Our goal is to provide a positive experience to our homeowners by actually engaging them in the homebuying and homeowning processes.

Our goal is to provide a positive experience to our homeowners by engaging them in the homebuying and homeowning processes.

We pay particular attention to the product design process and carefully consider choice of materials in order to attempt to eliminate building deficiencies.

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We typically experience the highest new home order activity during the spring, although this activity is also highly dependent on the number of active selling communities, timing of new community openings and other market factors.

Since it typically takes four to eight months to construct a new home, we deliver more homes in the second half of the year as spring and summer home orders convert to home deliveries.

Since it has historically taken four to eight months to construct a new home, we deliver more homes in the second half of the year as spring and summer home orders convert to home deliveries.

Because of this seasonality, home starts, construction costs and related cash outflows have historically been highest in the second and third quarters, and the majority of cash receipts from home deliveries occurs during the second half of the year.

We expect this seasonal pattern to continue over the long term, although it may be affected by volatility in the homebuilding industry and the COVID-19 pandemic.

We expect this seasonal pattern to continue over the long term, although it may be affected by volatility in the homebuilding industry and the COVID-19 pandemic and supply chain challenges which have extended our construction cycle times in many cases.

Financial Services Operations

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(which we refer to as “Inspire”).

Inspire is authorized to originate Federal National Mortgage Association (“Fannie Mae”), Federal Home Loan Mortgage Corporation (“Freddie Mac”), Federal Housing Administration-insured (“FHA”), and Department of Veterans Affairs-guaranteed (“VA”) mortgages (which we refer to collectively as the “government sponsored entities”).

We also offer title and

home owners insurance services through our wholly owned subsidiaries, Parkway Title, LLC (which we refer to as “Parkway”) and IHL Home Insurance Agency, LLC (which we refer to as “IHL”).

Inspire is authorized to originate Federal National Mortgage Association (“Fannie Mae”), Federal Home Loan Mortgage Corporation (“Freddie Mac”), FHA, and Department of Veterans Affairs-guaranteed (“VA”) mortgages (which

we refer to collectively as the “government sponsored entities”).

We also offer title and home owners insurance services through our wholly owned subsidiaries, Parkway Title, LLC (which we refer to as “Parkway”) and IHL Home Insurance Agency, LLC (which we refer to as “IHL”), respectively.

These operations along with Inspire collectively comprise our Financial Services operating segment.

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Our Financial Services segment generated income before income tax of $51.2 million for the year ended December 31, 2021, a 5.5% increase over the prior year.

The increase was driven by the year over year increase in the number of mortgages originated of 98% to 6,918 for the year ended December 31, 2020, coupled with increasing spreads on loans sold to third parties as a result of the demand for mortgages.

The increase in the number of mortgages originated was due to an increase in our capture rate from 43% for the year ended December 31, 2019 to 64% for the year ended December 31, 2020 and the increase in the number of homes delivered by our Century Communities and Century Complete brands year over year.

This increase was primarily the result of a $20.4 million increase in financial services revenue during the year ended December 31, 2021 compared to the prior year period.

This increase was due to (1) a 21.1% increase to 8,375 in the number of mortgages originated during the year ended December 31, 2021, due to our increased capture rate of 76% as compared to 64% for the prior year period and the increase in the number of homes delivered by our Century Communities and Century Complete brands year over year, and (2) a 25.2% increase in the number of loans sold to third parties during the year ended December 31, 2021 as compared to the prior year period.

These increases were partially offset by (1) lower fair value of our mortgage loans held for sale and our mortgage loans in process for which interest rates were locked by borrowers, (2) reduced gain on sale margin from loans sold and (3) increased headcount to support continued growth , in each case as compared to the prior year period.

Inspire sells substantially all of the loans it originates, either as whole loans, or with servicing retained, in the secondary mortgage market within a short period of time after origination, generally within 30 days.

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We are subject to numerous local, state, federal and other statutes, ordinances, rules and regulations concerning zoning, development, building design, construction and similar matters which impose restrictive zoning and density requirements in order to limit the number of homes that can eventually be built within the boundaries of a particular area.

In the normal course of business, we incur the costs associated with these laws and regulations, which are included in our homebuilding cost of revenues.

Projects that are not entitled may be subjected to periodic delays, changes in use, less intensive development or elimination of development in certain specific areas due to government regulations.

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The particular environmental laws which apply to any given homebuilding site vary according to the site’s location, its environmental conditions, and the present and former uses of the site, as well as adjoining properties.

Environmental laws and conditions may result in delays, may cause us to incur substantial compliance and other costs, and can prohibit or severely restrict homebuilding activity in environmentally sensitive regions or areas.

Environmental laws and conditions may result in delays, may cause us to incur substantial compliance and other costs, which are difficult or impossible to estimate, and can prohibit or severely restrict homebuilding activity in environmentally sensitive regions or areas.

From time to time, the Environmental Protection Agency and similar federal or state agencies review homebuilders’ compliance with environmental laws and may levy fines and penalties for failure to strictly comply with applicable environmental laws or impose additional requirements for future compliance as a result of past failures.

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Environmental regulations can also have an adverse impact on the availability and price of certain raw materials such as lumber.

Under various environmental laws, current or former owners of real estate, as well as certain other categories of parties, may be required to investigate and clean up hazardous or toxic substances or petroleum product releases, and may be held liable to a governmental entity or to third parties for property damage and for investigation and cleanup costs incurred by such parties in connection with the contamination.

Any delays and costs associated with our compliance with environmental laws and conditions have not materially impacted our results of operations.

contamination.

In addition, in those cases where an endangered species is involved, environmental rules and regulations can result in the elimination of development in identified environmentally sensitive areas.

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The Dodd-Frank Wall Street Reform and Consumer Protection Act contains a number of requirements relating to mortgage lending and securitizations.

These include, among others, minimum standards for lender practices, limitations on certain

fees and a requirement that the originator of loans that are securitized retain a portion of the risk, either directly or by holding interests in the securitizations.

These include, among others, minimum standards for lender practices, limitations on certain fees and a requirement that the originator of loans that are securitized retain a portion of the risk, either directly or by holding interests in the securitizations.

The impact of those statutes, rules, and regulations can be to increase our home buyers’ cost of financing, increase our cost of doing business, and restrict our home buyers’ access to some types of loans.

Several federal, state and local laws, rules, regulations and ordinances, including, but not limited to, the Federal Fair Debt Collection Practices Act (“FDCPA”) and the Federal Trade Commission Act and comparable state statutes, regulate consumer debt collection activity.

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Human Capital Resources

The total number of full-time employees as of December 31, 2020 was 1,403, which includes 226 employees related to our Financial Services segment and 1,177 employees related to our corporate and homebuilding operations.

Within our homebuilding operations, the majority of our employees are related to our construction and sales functions, which totaled 241 and 283 employees, respectively, as of December 31, 2020.

We believe our employees have and will continue to be a primary reason for our growth and success.

We place a focus on attracting and retaining talented and experienced individuals to manage and support our operations.

Recognizing the importance of our human capital, our Board of Directors, through the Compensation Committee, retains direct oversight of our human capital and oversees and reviews our culture and policies and strategies related to human capital management, including with respect to diversity and inclusion initiatives, pay equity, talent, recruitment and development, performance management and employee engagement.

The total number of full-time employees as of December 31, 2021 was 1,600, which includes 246 employees related to our Financial Services segment and 1,354 employees related to our corporate and homebuilding operations.

Within our homebuilding operations, the majority of our employees are related to our construction and sales functions, which totaled 405 and 342 employees, respectively, as of December 31, 2021.

We do not have collective bargaining agreements relating to any of our employees.

However, we subcontract many phases of our homebuilding operations and some of the subcontractors we use may have employees who are represented by labor unions.

Employee compensation and benefits

We offer our employees pay and benefits packages, which we believe are competitive with others throughout our industry, as well as within the local markets in which we operate.

Compensation packages for our employees generally include competitive base pay and the opportunity to receive periodic bonus payments which are tied to individual employee performance.

Compensation packages for our employees generally include competitive base pay and the opportunity to receive periodic bonus payments which are tied to individual employee performance and often times the achievement of operational performance targets.

These operational performance targets vary by year and may vary based on local market

Additionally, for certain employees critical to the management of our operations, we provide long-term incentive compensation, in the form of restricted stock units, which typically vest over a three year period.

We believe this compensation structure provides our employees with competitive pay and aligns individual performance with Company success.

We do not have collective bargaining agreements relating to any of our employees.

However, we subcontract many phases of our homebuilding operations and some of the subcontractors we use may have employees who are represented by labor unions.

In accordance with our Commitment to Training and Professional Development, Century trains its employees in a variety of areas, including company policies, anti-harassment, anti-discrimination, sales, retirement and financial wellness planning, and safety.

Employee training

In accordance with our Commitment to Training and Professional Development, Century trains its employees in a variety of areas, including company policies, anti-harassment, anti-discrimination, sales, information technology including cyber security risks, retirement and financial wellness planning, and safety.

On an individual level, we are committed to providing employees with the feedback necessary to improve their performance, reviewing expectations of their position, and fostering growth in their current role.

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As set forth in our Commitment to Diversity and Inclusion, we are committed to hiring and supporting a diverse and inclusive workforce.

Among other programs, all new employees are required to take one of two trainings related to anti-harassment and anti-discrimination.

Further, all employees are trained on anti-harassment and anti-discrimination every two years or more often if more frequent intervals are required by state law.

We define diversity as the range of human differences, including but not limited to race, ethnicity, gender, gender identity, sexual orientation, age, social class, physical ability or attributes, religious or ethical values system, national origin, and political beliefs.

We aim to create an inclusive organization where all employees are treated with dignity and respect and are empowered to reach their full potential.

Among other programs, all new employees are required to take trainings related to anti-harassment and anti-discrimination.

Further, all employees are trained on anti-harassment and anti-discrimination every two years or more often if required by state law.

We are committed to equal opportunity from the time a position becomes open, and are committed to pay equity, a core element of our pay-for-performance strategy.

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The health of our employees and others is also critical to our workplace.

During 2020, in response to the COVID-19 pandemic, we implemented safety protocols and procedures to protect our employees, customers, homeowners and trade partners.

During 2020 and 2021, in response to the COVID-19 pandemic, we implemented safety protocols and procedures to protect our employees, customers, homeowners and trade partners.

These procedures include complying with social distancing and other health and safety standards as required by federal, state, and local government agencies.

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Available Information

We are a Delaware corporation, incorporated in 2013, and a U.S.

We are a U.S.

public reporting company under the Securities Exchange Act of 1934, as amended (which we refer to as the “Exchange Act”), and file reports, proxy statements, and other information with the U.S.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business