What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2023-11-17 compared with 2022-11-17 · 36 added, 43 removed, 235 unchanged (25% of the section changed)

34 unchanged sentences

Horton at market terms offered by Forestar and both companies identify land development opportunities to expand our portfolio of assets.

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We manage our operations through our real estate segment.

Our national footprint provides diversification in our real estate inventory investments and our sources of revenues and earnings.

Our national footprint provides diversification in our real estate investments and our sources of revenues and earnings.

At September 30, 2023, we conducted our operations in the states and markets listed below.

State Market State Market

Alabama Birmingham Maryland Washington/Arlington/Alexandria

Mobile/Baldwin County Minnesota Minneapolis/St.

Nevada Las Vegas

Arizona Phoenix Reno

New Jersey Southern New Jersey

Alabama Birmingham Minnesota Minneapolis/St.

Mobile/Baldwin County Nevada Las Vegas

Tuscaloosa Reno

Arizona Phoenix New Jersey Southern New Jersey

New Mexico Santa Fe

California Riverside County

New Mexico Albuquerque

Colorado Denver

Fort Collins North Carolina Asheville

Florida Fort Myers/Naples Greensboro

Gainesville Greenville

Jacksonville Raleigh-Durham

Lakeland Wilmington

Miami/Fort Lauderdale Ohio Columbus

Ocala Cincinnati

Pensacola/Panama City Pennsylvania Allentown/Bethlehem/Easton

Tampa/Sarasota South Carolina Charleston

Volusia County Greenville/Spartanburg

West Palm Beach Hilton Head

Georgia Atlanta Tennessee Nashville

Savannah Texas Austin

Illinois Chicago Fort Worth

Indiana Indianapolis San Antonio

Iowa Des Moines Washington Seattle/Tacoma/Everett

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North Carolina Asheville

Colorado Denver Charlotte

Fort Collins Greensboro

Florida Fort Myers/Naples Raleigh-Durham

Gainesville Wilmington

Lakeland Ohio Columbus

Melbourne Cincinnati

Miami/Fort Lauderdale

Ocala Pennsylvania Philadelphia

Pensacola South Carolina Charleston

Lucie Greenville/Spartanburg

Tampa/Sarasota Hilton Head

Volusia County

West Palm Beach Tennessee Nashville

Georgia Atlanta Texas Austin

Augusta Dallas

Savannah Fort Worth

Illinois Chicago San Antonio

Indiana Indianapolis Washington Seattle/Tacoma/Everett

Iowa Des Moines West Virginia Eastern West Virginia

Maryland Suburban Washington, D.C.

When evaluating new or existing markets for purposes of capital allocation, we consider local, market-specific factors, including, among others:

26 unchanged sentences

• coordinating all interactions with customers throughout the lot sale process.

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Our corporate executives and corporate office personnel provide control and oversight functions to many important risk elements in our operations, including:

45 unchanged sentences

The Stockholder’s Agreement also establishes an investment committee to approve new investments up to $20 million.

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Land/Lot Acquisition and Inventory Management

20 unchanged sentences

Generally, the materials used in our operations have been readily available from numerous sources.

In fiscal 2021, our development cycle time lengthened primarily due to the COVID-19 pandemic and its effects on our supply chain, which resulted in shortages of certain construction materials and tightness in the labor market.

Continuing supply chain delays and disruptions during fiscal 2022 lengthened our development cycle time further.

In fiscal 2022, we experienced supply chain constraints including increases in the prices of materials, shortages of skilled labor and delays in municipal approvals and inspections, which caused delays in developing and the realization of revenues and increases in cost of revenues.

In fiscal 2023, these supply chain constraints have eased in the majority of our markets.

The cost and availability of certain materials, especially steel, transformers, concrete, and petroleum-based materials, is influenced by changes in local and global commodity prices and capacity as well as government regulation, such as government-imposed tariffs or trade restrictions on supplies such as steel.

The ability to consistently source qualified labor at reasonable prices remains challenging as labor supply growth has not kept pace with construction demand.

We are subject to governmental regulations that affect our land development operations.

6 unchanged sentences

We manage our level of lot/land banking relative to short-term liquidity and expected future cash requirements for lot development projects.

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Cost Controls

1 unchanged sentence

We monitor our land development expenditures versus budgets for each project, and we review our inventory levels, margins, expenses, profitability and returns for each project compared to its business plan and our performance expectations.

We control overhead costs by centralizing certain accounting and administrative functions, monitoring staffing and compensation levels and applying technology to business processes to improve productivity where practical.

We review other general and administrative costs to identify efficiencies and savings opportunities in our operating divisions and our regional and corporate offices.

We face significant competition for the acquisition, development and sale of real estate in our markets.

17 unchanged sentences

People and Culture

For the past three fiscal years, despite the COVID-19 pandemic, we increased the number of employees and made no reductions to our employee compensation plans or employee benefit plans.

We have increased our number of employees from 291 at September 30, 2022 to 303 at September 30, 2023 to support the growth of our residential lot development business across a geographically diversified platform.

8 unchanged sentences

All of our employees must certify to their understanding of and adhere to a code of conduct that sets standards for appropriate behavior and includes required internal training on preventing, identifying, reporting and stopping any type of discrimination.

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Recruitment, Development and Retention

14 unchanged sentences

Additional benefits offered include a 401(k) savings plan, employee stock purchase plan and access to professional resources to support employees with their mental and physical health, financial planning, identify theft protection and legal needs.

We are committed to supporting our employees in their health, wellness and financial planning goals.

We host events and challenges, both virtually and in person, to encourage our employees to stay active and healthy.

Additional information about our employee benefit plans is included in Note 11 to the accompanying financial statements.

8 unchanged sentences

Additionally, because substantially all of our land development work is performed by subcontractors, we require that our subcontractors maintain safety programs.

During the COVID-19 pandemic, we implemented safety protocols to protect our employees and contractors.

These protocols included complying with health and safety standards as required by federal, state and local government agencies, taking into consideration guidelines of the Centers for Disease Control and Prevention and other public health authorities.

Many of our administrative and operational functions during this period required modification, including some of our workforce working remotely.

Our teams adapted to the changes in our work environment and managed our business successfully during this challenging time.

To support our employees throughout the pandemic, employee access to remote work and virtual meetings was expanded.

Once available, COVID-19 vaccinations were provided at no charge through Company sponsored health insurance plans.

We also have had no workforce or salary reductions related to the pandemic.

Governmental Regulation and Environmental Matters

5 unchanged sentences

We may experience delays in receiving the proper approvals from local authorities that could delay our anticipated development activities in certain projects.

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Our land development activities are also subject to an extensive array of local, state and federal statutes, ordinances, rules and regulations concerning protecting health, safety and the environment.

1 unchanged sentence

We believe that we are in compliance in all material respects with existing environmental regulations applicable to our business.

Additionally, our compliance with such regulations has not had, nor is expected to have, a material adverse effect on our consolidated financial position, results of operations or cash flows.

Additionally, our compliance with such regulations has not had, nor is it expected to have, a material adverse effect on our consolidated financial position, results of operations or cash flows.

However, changes in regulations could increase our costs to comply with such regulations, as discussed in “Item 1A.

21 unchanged sentences

The SEC also maintains a website ( www.sec.gov ) that contains reports, proxy and information statements and other information that is filed electronically with the SEC.

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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