Note 3 - Segment Reporting

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

3.             Segment Reporting

Our 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. We have identified our chief operating decision-makers (“CODMs”) as two key executives—the Chief Executive Officer and the Chief Operating Officer.

We have identified each homebuilding division as an operating segment. Our operating segments have been aggregated into the reportable segments noted below 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. Our homebuilding reportable segments are as follows:

● West (Arizona, California, Nevada and Washington)

● Mountain (Colorado and Utah)

● East (Virginia, Florida, Illinois and Maryland, which includes Pennsylvania, Delaware and New Jersey)

Our Financial Services business 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. Due to its contributions to consolidated pretax income we consider HomeAmerican to be a reportable segment (“Mortgage operations”). The remaining operating segments have been aggregated into one reportable segment (“Other”) 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.

Corporate is a non-operating segment that develops and implements strategic initiatives and supports our operating divisions by centralizing key administrative functions such as finance and treasury, information technology, insurance and risk management, litigation and human resources. Corporate also provides the necessary administrative functions to support MDC as a publicly traded company. A portion of the expenses incurred by Corporate are allocated to the homebuilding operating segments based on their respective percentages of assets, and to a lesser degree, a portion of Corporate expenses are allocated to the financial services segments. A majority of Corporate’s personnel and resources are primarily dedicated to activities relating to the homebuilding segments, and, therefore, the balance of any unallocated Corporate expenses is included in the homebuilding segment.

The following table summarizes home and land sale revenues for our homebuilding operations and revenues for our financial services operations.

	Year Ended December 31,
	2013		2012		2011
	(Dollars in thousands)
Homebuilding
West	$	671,278	$	516,079	$	272,800
Mountain		546,801		355,368		316,189
East		411,096		284,695		228,034
Total home and land sale revenues	$	1,629,175	$	1,156,142	$	817,023
Financial Services
Mortgage operations	$	34,976	$	35,123	$	17,807
Other		16,283		11,758		8,279
Total financial services revenues	$	51,259	$	46,881	$	26,086

The following table summarizes pretax income (loss) for our homebuilding and financial services operations.

	Year Ended December 31,
	2013			2012			2011
	(Dollars in thousands)
Homebuilding
West	$	65,672		$	27,076		$	(16,889	)
Mountain		52,392			24,302			1,397
East		19,590			11,011			(7,195	)
Corporate		(37,331	)		(29,772	)		(87,941	)
Total homebuilding pretax income (loss)	$	100,323		$	32,617		$	(110,628	)
Financial Services
Mortgage operations	$	21,608		$	23,939		$	394
Other		7,894			4,559			2,762
Total financial services pretax income	$	29,502		$	28,498		$	3,156
Total pretax income (loss)	$	129,825		$	61,115		$	(107,472	)

The following table summarizes total assets for our homebuilding and financial services operations. The assets in our West, Mountain and East segments consist primarily of inventory while the assets in our Corporate segment primarily include cash and cash equivalents, marketable securities, and our deferred tax asset.

	December 31,
	2013		2012
	(Dollars in thousands)
Homebuilding assets
West	$	760,450	$	459,807
Mountain		418,796		332,939
East		297,627		274,199
Corporate		951,809		692,500
Total homebuilding assets	$	2,428,682	$	1,759,445
Financial services assets
Mortgage operations	$	99,065	$	122,941
Other		67,702		63,055
Total financial services assets	$	166,767	$	185,996
Total assets	$	2,595,449	$	1,945,441