Information On Business Segments

12 Months Ended

Dec. 31, 2011

Information On Business Segments [Abstract]

Information On Business Segments

3. Information on Business Segments

The Company's operating segments are defined as a component of an enterprise for which discrete financial information is available and is reviewed regularly by the chief operating decision-maker, or decision-making group, to evaluate performance and make operating decisions. The Company has identified its chief operating decision-makers ("CODMs") as two key executives—the Chief Executive Officer and the Chief Operating Officer.

The Company has identified each homebuilding subdivision as an operating segment as each homebuilding subdivision engages in business activities from which it earns revenue primarily from the sale of single-family detached homes, generally to first-time and first-time move-up homebuyers. Subdivisions in the reportable segments noted below have been aggregated because they are similar in the following regards: (1) economic characteristics; (2) housing products; (3) class of homebuyer; (4) regulatory environments; and (5) methods used to construct and sell homes. The Company's homebuilding reportable segments are as follows:

• West (Arizona, California, Nevada and Washington)

• Mountain (Colorado and Utah)

• East (Virginia and Maryland, which includes Pennsylvania, Delaware, and New Jersey)

• Other Homebuilding (Florida and Illinois)

The Company's Financial Services and Other reportable segment consists of the operations of the following operating segments: (1) HomeAmerican Mortgage Corporation ("HomeAmerican"); (2) Allegiant; (3) StarAmerican; (4) American Home Insurance Agency, Inc.; and (5) American Home Title and Escrow Company. These operating segments have been aggregated into one reportable segment because they do not individually exceed 10 percent of: (1) consolidated revenue; (2) the greater of (A) the combined reported profit of all operating segments that did not report a loss or (B) the positive value of the combined reported loss of all operating segments that reported losses; or (3) consolidated assets. The Company's Corporate reportable segment incurs general and administrative expenses that are not identifiable specifically to another operating segment, earns interest income on its cash, cash equivalents and marketable securities, and incurs interest expense on its senior notes.

The following table summarizes revenue for each of the Company's six reportable segments (in thousands). Inter-company adjustments noted in the revenue table below relate to Mortgage Loan Origination fees paid by the Company's homebuilding subsidiaries to HomeAmerican on behalf of homebuyers.

	Year Ended December 31,
	2011			2010			2009
Revenue
Homebuilding
West	$	276,423		$	333,746		$	407,157
Mountain		320,772			352,441			247,337
East		183,211			212,585			176,386
Other Homebuilding		47,308			45,197			54,086
Total Homebuilding		827,714			943,969			884,966
Financial Services and Other		26,086			30,474			28,318
Corporate		-			-			10
Intercompany adjustments		(9,632	)		(15,788	)		(14,991	)
Total	$	844,168		$	958,655		$	898,303

The following table summarizes (loss) income before income taxes for each of the Company's six reportable segments (in thousands). Inter-company Supervisory Fees, which are included in (loss) income before income taxes for each reportable segment in the table below, are charged by the Company's Corporate segment to the homebuilding segments and the Financial Services and Other segment. Supervisory Fees represent costs incurred by the Company's Corporate segment associated with certain resources that support the Company's other reportable segments. Transfers, if any, between operating segments are recorded at cost.

	Year Ended December 31,
	2011			2010			2009
(Loss) Income Before Income Taxes
Homebuilding
West	$	(16,889	)	$	9,909		$	19,144
Mountain		1,397			1,059			(15,686	)
East		(3,579	)		91			(9,789	)
Other Homebuilding		(3,617	)		(3,140	)		(4,691	)
Total Homebuilding		(22,688	)		7,919			(11,022	)
Financial Services and Other		3,156			10,299			5,953
Corporate		(87,940	)		(88,819	)		(102,266	)
Total	$	(107,472	)	$	(70,601	)	$	(107,335	)

The following table summarizes total assets for each of the Company's six reportable segments (in thousands). Inter-company adjustments noted in the table below relate to loans from the Company's Financial Services and Other segment to its Corporate segment. The assets in the Company's Corporate segment primarily include cash, cash equivalents and marketable securities.

	December 31,
	2011			2010
Homebuilding
West	$	346,442		$	300,652
Mountain		262,787			311,833
East		223,606			188,693
Other Homebuilding		31,468			40,554
Total Homebuilding		864,303			841,732
Financial Services and Other		143,561			135,286
Corporate		852,657			1,573,408
Intercompany adjustments		(1,796	)		(2,657	)
Total	$	1,858,725		$	2,547,769

The following table summarizes depreciation and amortization of long-lived assets and amortization of deferred marketing costs for each of the Company's six reportable segments (in thousands).

	Year Ended December 31,
	2011		2010		2009
Homebuilding
West	$	4,827	$	6,201	$	5,753
Mountain		3,475		3,596		2,638
East		1,907		1,990		1,995
Other Homebuilding		812		647		405
Total Homebuilding		11,021		12,434		10,791
Financial Services and Other		642		679		758
Corporate		4,877		3,830		2,908
Total	$	16,540	$	16,943	$	14,457