If you have been following D.R. Horton and the troubled home building industry, you might be wondering how a company that reported a net loss of more than $700 million in its most recent fiscal year can pay its top two executives nearly $1.6 million apiece in performance bonuses for that year.

The answer: Fort Worth-based Horton calculates and pays its bonuses quarterly, not annually. So, if the company makes money in a quarter, the executives earn bonuses, no matter what happens in the other reporting periods.