Businessweek

D.R. Horton, Inc. operates as a homebuilding company in the United States. The company constructs and sells homes through its operating divisions in 26 states and 77 metropolitan markets of the United States, primarily under the name of D.R. Horton, America’s Builder. Homebuilding Operations The company’s homebuilding operations include sale of completed homes, land, and lots. In addition to building traditional single-family detached homes, the company also builds attached homes, such as town homes, duplexes, triplexes, and condominiums. The company’s homes generally range in size from 1,000 to 4,000 square feet. For the year ended September 30, 2012, the company closed 18,890 homes. The company’s home designs are selected or prepared in each of its markets to appeal to the tastes and preferences of local homebuyers in each community. It also offers optional interior and exterior features to allow homebuyers to enhance the basic home design. The company markets and sells its homes through commissioned employees and independent real estate brokers. It markets its homes and communities to prospective homebuyers and real estate brokers in its local markets. The company also builds speculative homes in majority of its subdivisions. The company has homebuilding operations in Delaware; Georgia; Maryland; New Jersey; North Carolina; Pennsylvania; South Carolina; Virginia; Colorado; Illinois; Minnesota; Alabama; Florida; Georgia; Mississippi; Louisiana; New Mexico; Oklahoma; Texas; Arizona; New Mexico; and California. Financial Services Operations The company, through its financial services operations, provides mortgage financing and title agency services to homebuyers in majority of its homebuilding markets. DHI Mortgage, its 100% owned subsidiary, provides mortgage financing services primarily to its homebuilding customers and generally sells the mortgages it originates and the related servicing rights to third-party purchasers. DHI Mortgage originates loans in accordance with purchaser guidelines. DHI Mortgage assists in the sales transaction by coordinating the mortgage application, mortgage commitment, and home closing processes. The company’s subsidiary title companies serve as title insurance agents by providing title insurance policies, examination, and closing services, primarily to its homebuilding customers. Governmental Regulation and Environmental Matters The company’s homes are inspected by local authorities where required, and homes eligible for insurance or guarantees provided by the Federal Housing Administration (FHA) and the Department of Veteran Affairs (VA) are subject to inspection by them. The company’s mortgage company and title insurance agencies must comply with extensive federal and state laws and regulations as administered by numerous federal and state government agencies. These include eligibility and other requirements for participation in the programs offered by the FHA, VA, Government National Mortgage Association, Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, and the United States Department of Agriculture. Seasonality The company has more homes under construction, closes more homes, and has greater revenues and operating income in the third and fourth quarters of its fiscal year (year ending on September 30, 2012). History D.R. Horton, Inc. was founded in 1978.