UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

For the transition period from ________ to ________

Securities registered pursuant to Section 12(g) of the Act: None.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

As of June 30, 2020,2021, the last business day of the registrant’s most recently completed second fiscal quarter, the aggregate market value of the registrant's common shares (its only class of common equity) held by non-affiliates (27,929,414(28,703,915 shares) was approximately $961.9 million.$1.7 billion.  The number of common shares of the registrant outstanding as of February 17, 202116, 2022 was 29,109,685.28,459,630.

DOCUMENT INCORPORATED BY REFERENCE

Portions of the registrant’s definitive proxy statement for the 20212022 Annual Meeting of Shareholders to be filed pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended, are incorporated by reference into Part III of this Annual Report on Form 10-K.

Certain information included in this report or in other materials we have filed or will file with the Securities and Exchange Commission (the “SEC”) (as well as information included in oral statements or other written statements made or to be made by us) contains or may contain forward-looking statements, including, but not limited to, statements regarding our future financial performance and financial condition.  Words such as “expects,” “anticipates,” “envisions,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements involve a number of risks and uncertainties.  Any forward-looking statements that we make herein and in future reports and statements are not guarantees of future performance, and actual results may differ materially from those in such forward-looking statements as a result of various risk factors. See “Item 1A. Risk Factors” in Part I of this Annual Report on Form 10-K for more information regarding those risk factors.

For reporting purposes, our 1516 homebuilding divisions are aggregated into the following two segments:

Following a substantial decline in new contracts in the latter half of March and April as a result of the COVID-19 pandemic, we experienced a sharp recovery and an increase in sales activity commencing in May as pandemic-related restrictions began to ease. This trend of increasing sales volume continued through our third and fourth quarters, resulting in the Company achieving a record for new contracts in 2020, along with records in a number of other operating and financial metrics. We believe that the homebuilding industry benefitednew home sales will continue to benefit from record-low interest rates, a continued undersupply of available homes, historically low mortgage rates, improving employment levels and positive consumer demographics, which are leading to a desiregrowing number of many consumers to move from rental apartments and densely populated areasyounger homebuyers moving to single family homes in suburban locations. We believe these factorsHowever, we also expect that overall economic and homebuilding conditions in the United States in 2022 will continue to support demand into 2021, subjectbe negatively impacted by labor and supply shortages, inflation, and increasing costs of materials and labor. We remain sensitive to the economic uncertainties caused by the continuing COVID-19 pandemic. Company-wide, our absorption pace of sales per communitychanges in 2020 improved to 3.7 per month compared to 2.6 per month in 2019. Our average sales price in backlog increased in 2020 by 6%. Partially as a result of this accelerated sales pace, we sold out of some communities earliermarket conditions, and our number of active communities declined to 202 at the end of 2020 from 225 at the end of 2019. We continued to place additional land under contract for communities that will be brought online in future periods, and controlled approximately 39,500 lots at December 31, 2020. Our ability to timely replace existing communities could further impact our number of active communities. We continue to work to open new communities,focus on controlling overhead leverage and wecarefully managing our investment in land and land development spending. We are also actively managing sales pace, in partclosely monitoring mortgage availability and lending standards. While interest rates remain low by selectively increasing prices,historical standards, mortgage rates are generally expected to better match our availability of lotsincrease during 2022, which could negatively impact affordability and production schedule.mortgage availability.

By offering Whole Home Energy-Efficient Homes to our customers, we enable our homebuyers to save on their energy costs (the second largest cost of home ownership) compared to a home that is built to minimum code requirements. We use independent RESNET-Certified Raters and the HERS (Home Energy Rating System) Index, the national standard for energy efficiency, to measure the performance of our homes, including insulation, ventilation, air tightness, and the heating and cooling system. Our divisions’ average scores are generally lower (and, therefore, better) than the Environmental Protection Agency’s Energy Star target standard of 72-75 or the average score for a resale home (130 or higher). These lower HERS scores translate to not only reduced heating/cooling costs for our homebuyers, but also a reduction in energy intensity when compared to an average resale home, and therefore a lower environmental impact.

In response to the changing needs of consumers duringas a result of the COVID-19 pandemic, we have made several adjustments to our sales and marketing strategy. First, we encouragedencourage consumers to shop for a new home from the comfort of their existing home by mailing a free VR Headset to them upon request. Each of our home plans wasare professionally scanned in 3D, creating an immersive Virtual Tour experience. Second, as many consumers expressed discomfort visiting public spaces, we began offeringoffer Virtual Appointments. This enabledenables our New Home Sales Consultants to provide a live home tour while engaging in personalized selling conversation. Finally, we launchedoffered our flexABILITY program across many of our existing home plans which allows our customers to take existing space in the home and create the room they most need, likeneed: a home office, classroom, multigenerational suite, or home gym.

We design all of our product lines to reduce production costs and construction cycle times while adhering to our quality standards and using materials and construction techniques that reflect our commitment to more environmentally conscious homebuilding methods. All of our homes are constructed according to proprietary designs that meet the applicable FHA and VA requirements and all local building codes. We attempt to maintain efficient operations by utilizing standardized materials. Our raw materials consist primarily of lumber, concrete and similar construction materials, and while these materials are generally available from a variety of sources, we have reduced construction and administrative costs by executing national purchasing contracts with select vendors. However, during 2021, we experienced labor and supply shortages and price increases. Our homes are constructed according to standardized prototypes which are designed and engineered to provide innovative product design while attempting to minimize costs of construction and control product consistency and availability. We believe our construction process, and the construction cycle times resulting from product line design reference above, generally reduce the time our subcontractors and vendors spend transporting labor, equipment, and materials to and from our communities and thereby also reduce the environmental impact and carbon emissions associated with construction for our homes. We generally employ subcontractors for the installation of site improvements and the construction of homes. The construction of each home is supervised by a Personal Construction Supervisor who reports to a Production Manager, both of whom are employees of the Company. Our Personal Construction Supervisors manage the scheduling and construction process. Subcontractor work is performed pursuant to written agreements that require our subcontractors to comply with all applicable laws and labor practices, follow local building codes and permits, and meet performance, warranty, and insurance requirements. The agreements generally specify a fixed price for labor and materials and are structured to provide price protection for a majority of the higher-cost phases of construction for homes in our backlog.

We begin construction on a majority of our homes after we have obtained a sales contract and preliminary oral confirmation from the buyer’s lender that financing should be approved. In certain markets, contracts may be accepted contingent upon the sale of an existing home, and construction may be authorized through a certain phase prior to satisfaction of that contingency. The construction of our homes typically takes approximately four to six months from the start of construction to completion of the home, depending on the size and complexity of the particular home being built, weather conditions, and the availability of labor, materials, and supplies. However, due to the strong overall housing demand and the ongoing impact of the pandemic, we experienced disruptions in our supply chain during 2021, including the availability of labor and the timely availability of certain materials, which have lengthened the production cycle times in certain markets. We also construct inventory homes (i.e., homes started in the absence of an executed contract) to facilitate delivery of homes on an immediate-need basis under our Ready Now Homes program and to provide presentation of new products. For some prospective buyers, selling their existing home has become a less predictable process and, as a result, when they sell their home, they often need to find, buy and move into a new home in 60 days or less. Other buyers simply prefer the certainty provided by being able to fully visualize a home before purchasing it. Of the total number of homes closed in both2021 and 2020, 35% and 2019, 49%, respectively, were inventory homes which include both homes started as inventory homes and homes that started under a contract that were later cancelled and became inventory homes as a result. The decline in the percentage of inventory homes closed in 2021 was due to our lower cancellation rate in 2021 compared to 2020 as well as selling our available lots reserved for inventory homes prior to beginning construction as a result of the high demand. Additionally, we generally prioritize backlog starts over inventory starts, and we were limited by construction capacity constraints from starting more inventory homes in certain communities in 2021.

We believe that our employees are our most important resource. To fuel our success, we seek to recruit the best talent in the homebuilding industry, whether they be new or seasoned homebuilding professionals, and advance all of our employees through training, development, mentoring, and career advancement. Our workforce development strategy is rooted in building a workforce in which individuals from a diverse mix of backgrounds, experiences and talents can thrive, contribute and contribute.develop professionally. We recognize the value of creating a collaborative, inclusive workplace, and to help foster such an environment, we promote a culture of mutual understanding and respect among employees, customers and building partners.

We believe in developing each employee’s professional skill set and promoting career development. Our operating divisions assign training to our employees based upon their particular roles and responsibilities. In addition, all of our employees must adhere to our code of conduct and participate in mandatory company-wide training sessions to ensure all employees follow the same set of safety and ethical standards. These training sessions cover topics such as workplace safety, cyber security, risk mitigation, unconscious bias, harassment, and discrimination.

We pay our employees competitively and offer a comprehensive set of benefits to full-time employees, including a 401(k) Profit Sharing Plan to help employees plan for retirement, which we believe are competitive with others in our industry.

Additionally, we may be subject to increased counterparty risks, including purchasers of mortgages originated by M/I Financial being unwilling or unable to perform their obligations to us. To the extent a third-partythird party is unwilling or unable to perform such obligations, our financial condition, results of operations and/or cash flows could be negatively impacted.

We recorded goodwill in connection with our acquisition of the assets and operations of Pinnacle Homes. On an ongoing basis, we will evaluate whether facts and circumstances indicate any impairment of the value of intangible assets. As circumstances change, we cannot provide any assurance that we will realize the value of these intangible assets. If we determine that a significant impairment has occurred, we will be required to write-off the impaired portion of intangible assets, which could have a material adverse effect on our results of operations in the period in which the write-off occurs.

As a homebuilder, we are subject to construction defect, product liability and warranty claims in the ordinary course of business. These claims are common in the homebuilding industry and can be significant and costly. We and many of our subcontractors have general liability, property, workers compensation and other business insurance. This insurance is intended to protect us against a portion of our risk of loss from claims, subject to certain self-insured retentions, deductibles and other coverage limits. The availability of insurance for construction defects, and the scope of the coverage, are currently limited and the policies that can be obtained are costly and often include exclusions. There can be no assurance that coverage will not be further restricted or become more costly. Also, at times we have waived certain provisions of our customary subcontractor insurance requirements, which increases our and our insurers’ exposure to claims and increases the possibility that our insurance will not cover all the costs we incur.

We record warranty and other reserves for the homes we sell based on a number of factors, including historical experience in our markets, insurance and actuarial assumptions and our judgment with respect to the qualitative risks associated with the types of homes we build. Because of the high degree of judgment required in determining these liability reserves, our actual future liability could differ significantly from our reserves. Given the inherent uncertainties, we cannot provide assurance that

our insurance coverage, our subcontractor arrangements and our reserves will be adequate to address all of our construction defect, product liability and warranty claims. If the costs to resolve these claims exceed our estimates, our results of operations, financial condition and cash flows could be adversely affected.

We rely on subcontractors to construct our homes, and in many cases, to select and obtain building materials. Despite our detailed specifications and quality control procedures, in some cases, it may be determined that subcontractors used improper construction processes or defective materials in the construction of our homes. Although our subcontractors have principal responsibility for defects in the work they do, we have ultimate responsibility to the homebuyers. When we identify these defects, we repair them in accordance with our warranty obligations. Improper construction processes and defective products widely used in the homebuilding industry can result in the need to perform extensive repairs to large numbers of homes. The cost of complying with our warranty obligations may be significant if we are unable to recover the cost of repairs from subcontractors, materials suppliers and insurers.

We also can suffer damage to our reputation, and may be exposed to possible liability, if subcontractors fail to comply with applicable laws, including laws involving thingsmatters that are not within our control. When we learn about potentially improper practices by subcontractors, we try to cause the subcontractors to discontinue them. However, we may not always be able to cause our subcontractors to discontinue potentially improper practices, and even when we can, we may not be able to avoid claims against us for personal injury, property damage or other losses relating to prior actions of our subcontractors.

We are also subject to various local, state, and federal statutes, ordinances, rules and regulations concerning the protection of health and the environment, including the emission or discharge of materials into the environment, storm water and surface water management, soil, groundwater and wetlands protection, subsurface conditions and air quality protection and enhancement. The environmental regulations applicable to each community in which we operate vary greatly depending on the location of the community site, the site’s environmental conditions and the present and former use of the site. These statutes,

We must also obtain licenses, permits and approvals from various governmental authorities in connection with our development activities, and these governmental authorities often have broad discretion in exercising their approval authority. MunicipalitiesGovernmental authorities may also restrict or place moratoriums on the availability of utilities, such as water and sewer taps. In some areas, municipalitiesgovernmental authorities may enact growth control initiatives, which restrict the number of building permits available in a given year. In addition, we may be required to apply for additional approvals or modify our existing approvals because of changes in local circumstances or applicable law. If municipalitiesgovernmental authorities in which we operate take actions like these, it could have an adverse effect on our business by causing delays, increasing our costs, or limiting our ability to operate in those municipalities.the applicable area.

In addition to the legal proceedings related to stucco discussed above, the Company and certain of its subsidiaries have been named as defendants in certain other legal proceedings which are incidental to our business. While management currently believes that the ultimate resolution of these other legal proceedings, individually and in the aggregate, will not have a material adverse effect on the Company’s results of operations, financial condition or cash flows, such legal proceedings are subject to inherent uncertainties. The Company has recorded a liability to provide for the anticipated costs, including legal defense costs, associated with the resolution of these other legal proceedings. However, the costs to resolve these legal proceedings ultimately may exceed the recorded estimates and, therefore, have a material adverse effect on the Company’s results of operations, financial condition, and cash flows.

Similarly, if additional legal proceedings are filed against us in the future, including with respect to stucco installation in our Florida communities, the negative outcome of one or more of such legal proceedings could have a material adverse effect on our results of operations, financial condition and cash flows.

Our ability to conduct our business may be impaired if these informational technology and computer resources, including our website, are compromised, degraded or damaged or if they fail, whether due to a virus or other harmful circumstance, intentional penetration or disruption of our information technology resources by a third party, natural disaster, hardware or software corruption or failure or error (including a failure of security controls incorporated into or applied to such hardware or software), telecommunications system failure, service provider error or failure or intentional or unintentional personnel actions (including the failure to follow our security protocols), or lost connectivity to our networked resources. A significant disruption in the functioning of these resources, or breach thereof, including our website, could damage our reputation and cause us to lose customers, sales and revenue.

An epidemic, pandemic or similar public health issue, or fear of such an event, and the measures undertaken by governmental authorities to address it, could significantly disrupt or prevent us from operating our business in the ordinary course for an extended period, and thereby, and/or along with any associated economic and/or social instability or distress, have a material adverse effect on our business, results of operations, financial condition and/or cash flows.

On March 11, 2020, the World Health Organization characterized the outbreak of COVID-19 as a global pandemic and recommended containment and mitigation measures. On March 13, 2020, the United States declared a national emergency, and several states and municipalities have declared public health emergencies.pandemic. Numerous international, federal, state and local public health and governmental authorities have takentook extraordinary and wide-ranging actions to contain and combat the outbreak and spread of COVID-19, including quarantines, “stay-at-home” orders, social distancing guidelines and similar mandates for many individuals to substantially restrict daily activities and for many businesses to curtail or cease normal operations.

Our business could also be negatively impacted overHowever, there is continuing uncertainty regarding the medium-to-longer term ifextent to which and how long the disruptionsCOVID-19 pandemic and the related to COVID-19 decreasegovernmental actions will impact the U.S. economy, including the supply chain, the labor market, consumer confidence, generally or with respect to purchasing a home, cause civil unrest, and/or precipitate a prolonged economic downturn, rise in unemployment and/or temperingcapital markets, secondary mortgage markets, availability of wage growth, any of which could lowermortgage loans and demand for homes. The impact of the COVID-19 pandemic on our homes and/or impairbusiness will depend on future developments, including whether governmental authorities impose additional health and safety measures, the outbreak, duration and severity of new variants, the acceptance and effectiveness of vaccines, and the impact of the pandemic on our ability to sellemployees, customers, and build homes in a typical manner or at all, generate revenuesbuilding partners. These developments are highly uncertain and cash flows, and/or access the capital or lending markets (or significantly increase the costs of doing so), as may be necessary to sustain our business; increase the costs or decrease the supply of building materials or the availability of labor and subcontractors; and/or result in us recognizing material charges in future periods for inventory impairments or land option contract abandonments, or both. The unprecedented uncertainty surrounding COVID-19, due, in part, to rapidly changing governmental directives, public health challenges and progress, macroeconomic consequences and market reactions thereto also makes it more challenging for us to estimate the future performanceoutside of our business and develop strategies to generate growth and achieve our objectives.

None.

Item 4. MINE SAFETY DISCLOSURES

None.

There were no repurchases made by, or on behalf of, the Company or any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Exchange Act) of the Company’s commonCommon shares purchased during each month during the fourth quarter of the fiscal year ended December 31, 2020.2021 were as follows:

Sales incentives vary by type of incentive and by amount on a community-by-community and home-by-home basis. The costs of any sales incentives in the form of free or discounted products and services provided to homebuyers are reflected in Land and housing costs in the Consolidated Statements of Income because such incentives are identified in our home purchase contracts with homebuyers as an intrinsic part of our single performance obligation to deliver and transfer title to their home for the transaction price stated in the contracts. Sales incentives that we may provide in the form of closing cost allowances are recorded as a reduction of housing revenue at the time the home is delivered.

We record sales commissions within Selling expenses in the Consolidated Statements of Income when incurred (i.e., when the home is delivered) as the amortization period is generally one year or less and therefore capitalization is not required as part of the practical expedient for incremental costs of obtaining a contract.

obligation is satisfied. All of our home purchase contracts have a single performance obligation as the promise to transfer the home is not separately identifiable from other promises in the contract and, therefore, not distinct. Our primary performance obligation, to deliver the agreed-upon home, is generally satisfied in less than one year from the original contract date. Deferred revenue resulting from any other uncompleted performance obligations existing at the time we deliver new homes to our homebuyers is not material.

Our warranty reserves for our 30-year (offered on all homes sold after April 25, 1998 and on or before December 1, 2015 in all of our markets except our Texas markets), 15-year (offered on all homes sold after December 1, 2015 and on or before December 31, 2021 in all of our markets except our Texas markets) and 10-year (offered on all homes sold in our Texas markets)markets and in all of our markets beginning January 1, 2022) transferable structural warranty programs are established on a per-unit basis. While the structural warranty reserve is recorded as each house is delivered, the sufficiency of the structural warranty per unit charge and total reserve is reevaluated on an annual basis, with the assistance of an actuary, using our own historical data and trends, industry-wide historical data and trends, and other project specific factors. The reserves are also evaluated quarterly and adjusted if we encounter activity that is inconsistent with the historical experience used in the annual analysis. These reserves are subject to variability due to uncertainties regarding structural defect claims for products we build, the markets in which we build, claim settlement history, insurance and legal interpretations, among other factors.

ForIn 2021, housing market conditions were positive, with healthy demand, a limited supply of new and resale inventory and relatively low interest rates driving record bottom line results for our business. Strong demand for our homes enabled us to increase selling prices in many of our communities in concert with rising labor and building material costs. This, in combination with our focus on balancing sales pace, price and construction starts at many of our communities, helped us to achieve record homes delivered, revenue, income before income taxes and net income and the year ended December 31, 2020, we achieved record levelssecond highest level of new contracts homes delivered, revenuein our history, despite the supply chain challenges and income before income taxes. We also achieved record levels ofdisruptions that we experienced throughout 2021. Our backlog sales value and number of homes in backlog at December 31, 2020.2021 were also year-end records. Our improved profitability is attributable primarily to the increase in homes delivered, improved margins and overhead leverage. Additionally, our complementary financial services business also achieved record revenue and income before income taxes, and originated a record number of loans in 2020, while benefiting from a higher margin per loan throughout the year.2021.

In addition to the record results described above, our number of homes in backlog increased 64%, and we achieved net income of $239.9 million in 2020, an 88% increase from the prior year. Our financial services operations also achieved record income before income taxes in 2020,2021, benefiting from an increase in homes closed, the number of mortgages originated and higher margins, as well as technology enabled efficiencies. Our company-wide absorption pace of sales per community in 20202021 improved to 4.1 per month compared to 3.7 per month compared to 2.6 per month in 2019.2020. Partially as a result of this accelerated sales pace, we sold out of some communities earlier, and our number of active communities declined to 175 at the end of 2021 from 202 at the end of 2020 from 225 at the end of 2019.2020. We continued to place additional land under contract for communities that will be brought online in future periods, and controlled approximately 39,50044,000 lots at December 31, 2020.2021. Our ability to timely replace existing communities could further impact our number of active communities. We continue to work to open new communities, and we are also actively managing sales pace, in part byat a community level, while selectively increasing prices, to better match our availability of lots and production schedule.

In 2020,2021, we recorded record total revenue of $3.05$3.75 billion, of which $2.94$3.63 billion was from homes delivered, $19.2$13.4 million was from land sales, and $87.0$102.0 million was from our financial services operations. Revenue from homes delivered increased 21%23% from 20192020 driven primarily by the 1,413929 additional homes delivered in 20202021 (a 22%12% increase), offset, in part, by and a 1% decrease10% increase in the average sales price of homes delivered ($3,00039,000 per home delivered), which was primarily the result of the mix of homes delivered.delivered and higher demand. Revenue from land sales decreased $5.4$5.8 million from 20192020 due primarily to fewer land sales in the current year compared to the prior year. Revenue from our financial services segment increased 57%17% to $87.0$102.0 million in 20202021 as a result of an increase in loans closed and sold during the year in addition to higher margins on loans sold during the period compared to the prior year.

For 2020,2021, selling, general and administrative expense increased $54.7$33.5 million, which partially offset the increase in our gross margin discussed above, but declinedimproved as a percentage of revenue to 10.4% in 2021 from 11.7% in 2020 from 12.1% in 2019.2020. Selling expense increased $25.1$19.0 million from 20192020 and improved as a percentage of revenue to 5.3% in 2021 from 5.9% in 2020 from 6.2% in 2019.2020. Variable selling expense for sales commissions contributed $24.5$19.5 million to the increase due to the higher number of homes delivered during the period, and the remainder was attributable to an increaseoffset partially by a $0.5 million decrease in non-variable selling expense. General and administrative expense increased $29.6$14.5 million compared to 20192020 but declinedimproved as a percentage of revenue from 5.9% in 2019 to 5.8% in 2020.2020 to 5.1% in 2021. The dollar increase in general and administrative expense was primarily due to a $15.2$14.2 million increase in compensation-related expenses due to our increased headcount and strong financial performance which led to higher incentive-based compensation, a $2.6 million increase in land-related expenses, a $2.4 million increase in costs associated with new information systems, a $1.4 million increase in corporate home office rent-related expenses, a $1.4 million increase in professional fees, a $1.2 million increase in COVID-19-related cleaning expenses, a $1.0 million increase in rent related to our division offices, a $0.8 million increase in advertising expenses, and a $3.6$0.3 million increase in miscellaneous expenses.

We believe that new home sales will continue to benefit from record-low interest rates, a continued undersupply of available homes, mortgage rates that remain historically low, improving employment levels and positive consumer demographics, includingwhich are leading to a growing number of younger homebuyers moving from rental apartments and more densely populated areas to single family homes in suburban locations. However, we also expect that overall economic and homebuilding industry conditions in the United States in 2022 will continue to be negatively impacted by the COVID-19 pandemic. The extent to which these matters will impact the U.S. economylabor and levelsupply shortages, inflation, and increasing costs of employment, capital markets, secondary mortgage markets, consumer confidencematerials and availability of mortgage loans to homebuyers, and therefore our operational and financial performance, is highly uncertain and cannot be predicted.

We expect to continue to emphasize the following strategic business objectives in 2021:2022:

During 2020,2021, we invested $415.0$630.1 million in land acquisitions and $318.3$421.8 million in land development. We continue to closely review all of our land acquisition and land development spending and monitor our ongoing pace of home sales and deliveries, including any potential effects as a result of the COVID-19 pandemic, and we will adjust our land and inventory home investment spend accordingly. As a result of the uncertainty of the magnitude and duration of the COVID-19 pandemic,unprecedented current market conditions, we are not providing land spending estimates for 20212022 at this time.

As a result of our accelerated pace of home sales, we are sellingsold through communities at a faster pace which will make it challenging to increase our number of active communitiesthan anticipated in 2021. We ended 20202021 with approximately 39,50044,000 lots under control, which represents a 5.1 year supply of lots based on 20202021 homes delivered, including certain lots that we anticipate selling to third parties. This represents a 19%an 11% increase from our approximately 33,30039,500 lots under control at the end of 2019.2020. We opened 6972 communities and closed 9299 communities in 2020,2021, ending the year with a total of 202175 communities, compared to 225202 at the end of 2019.2020. Of our total communities at the end of 2020, 622021, 72 offered our more affordable Smart Series designs, which are primarily designed for first-time homebuyers.

Although the timing of opening new communities and closing out existing communities is subject to substantial variation, we expect to open a record number of new communities in 2022, growing our community count by approximately 15% by the end of 2022 to more than 200 communities. We believe our ability to design and develop attractive homes in desirable locations at an affordable cost, and to grow our business while also leveraging our fixed costs, has enabled us to maintain and improve our strong financial results. We further believe that we are well positioned with a strong balance sheet to manage through the current economic environment.

The following table shows, by segment: revenue; gross margin; selling, general and administrative expense; operating income (loss); interest expense; and depreciation and amortization for the years ended December 31, 2021, 2020 2019 and 2018:2019:

The following tables show total assets by segment at December 31, 2021, 2020 2019 and 2018:2019:

The following table sets forth the cancellation rates for each of our homebuilding segments for the years ended December 31, 2021, 2020 2019 and 2018:2019:

Adjusted housing gross margin, adjusted income before income taxes, and adjusted net income are calculated as follows: