Business Segments

9 Months Ended

Sep. 30, 2012

Business Segments [Abstract]

Segment Reporting Disclosure [Text Block]

Business Segments

The Company’s segment information is presented on the basis that the chief operating decision makers use in evaluating segment performance.  The Company’s chief operating decision makers evaluate the Company’s performance in various ways, including: (1) the results of our eleven individual homebuilding operating segments and the results of our financial services operations; (2) the results of our three homebuilding regions; and (3) our consolidated financial results.  We have determined our reportable segments as follows: Midwest homebuilding, Southern homebuilding, Mid-Atlantic homebuilding and financial services operations.  The homebuilding operating segments that are included within each reportable segment have similar operations and exhibit similar long-term economic characteristics.  Our homebuilding operations include the acquisition and development of land, the sale and construction of single-family attached and detached homes, and the occasional sale of lots to third parties.  The homebuilding operating segments that comprise each of our reportable segments are as follows:

Midwest	Southern	Mid-Atlantic
Columbus, Ohio	Tampa, Florida	Washington, D.C.
Cincinnati, Ohio	Orlando, Florida	Charlotte, North Carolina
Indianapolis, Indiana	Houston, Texas	Raleigh, North Carolina
Chicago, Illinois	San Antonio, Texas

In April 2012, we expanded our Houston, Texas operations by acquiring the assets of a privately-held homebuilder based in Houston, Texas. In connection with this acquisition, we recorded a $1.2 million bargain purchase gain in accordance with generally accepted accounting principles as the cash purchase price was less than the fair market value of the assets acquired.

In October 2012, we announced our entry into the Austin, Texas market.

Our financial services operations include the origination and sale of mortgage loans and title services primarily for purchasers of the Company's homes.

The following table shows, by segment, revenue, operating income (loss) and interest expense for the three and nine months ended September 30, 2012 and 2011, as well as the Company’s loss before income taxes for such periods:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2012			2011			2012			2011
Revenue:
Midwest homebuilding	$	79,015		$	58,941		$	198,994		$	168,291
Southern homebuilding	50,828			35,281			123,400			84,117
Mid-Atlantic homebuilding	72,649			44,530			172,977			127,863
Financial services	6,383			2,872			15,623			9,367
Total revenue	$	208,875		$	141,624		$	510,994		$	389,638
Operating income (loss):
Midwest homebuilding (a)	$	3,940		$	1,364		$	9,012		$	(6,925	)
Southern homebuilding (a)	6,144			(203		)	9,837			(6,895		)
Mid-Atlantic homebuilding (a)	5,787			1,909			9,496			4,959
Financial services	3,960			969			8,606			4,203
Less: Corporate selling, general and administrative expenses	(7,380		)	(5,490		)	(17,508		)	(15,288		)
Total operating income (loss)	$	12,451		$	(1,451	)	$	19,443		$	(19,946	)
Interest expense:
Midwest homebuilding	$	1,243		$	1,291		$	4,181		$	4,612
Southern homebuilding	999			768			2,543			1,965
Mid-Atlantic homebuilding	1,342			1,122			4,248			3,663
Financial services	415			203			1,094			644
Total interest expense	$	3,999		$	3,384		$	12,066		$	10,884
Income (loss) before income taxes	$	8,452		$	(4,835	)	$	7,377		$	(30,830	)

(a) For the three months ended September 30, 2012 and 2011, the impact of charges relating to the impairment of inventory and investment in Unconsolidated LLCs and the write-off of abandoned land transaction costs was $1.3 million and $1.8 million, respectively. These charges reduced operating income by $1.3 million and $1.2 million in the Midwest region for the three months ended September 30, 2012 and 2011, respectively, and $0.6 million in the Southern region for the three months ended September 30, 2011. There were no charges in the Mid-Atlantic or Southern regions for the three months ended September 30, 2012 or any charges in the Mid-Atlantic region for the three months ended September 30, 2011.

For the nine months ended September 30, 2012 and 2011, the impact of charges relating to the impairment of inventory and investment in Unconsolidated LLCs and the write-off of abandoned land transaction costs was $2.1 million and $18.5 million, respectively. These charges reduced operating income by $1.9 million and $11.6 million in the Midwest region, $0.1 million and $6.6 million in the Southern region and $0.1 million and $0.3 million in the Mid-Atlantic region for the nine months ended September 30, 2012 and 2011, respectively.

The following tables show total assets by segment:

	September 30, 2012
(In thousands)	Midwest		Southern		Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	1,274	$	2,675	$	2,255	$	—	$	6,204
Inventory (a)	203,947		126,524		207,196		—		537,667
Investments in Unconsolidated LLCs	5,255		6,001		—		—		11,256
Other assets	5,710		4,434		11,044		240,977		262,165
Total assets	$	216,186	$	139,634	$	220,495	$	240,977	$	817,292

	December 31, 2011
(In thousands)	Midwest		Southern		Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	252	$	1,516	$	907	$	—	$	2,675
Inventory (a)	200,760		89,586		173,751		—		464,097
Investments in Unconsolidated LLCs	5,157		5,200		—		—		10,357
Other assets	3,865		2,858		9,861		170,772		187,356
Total assets	$	210,034	$	99,160	$	184,519	$	170,772	$	664,485

(a) Inventory includes single-family lots, land and land development costs; land held for sale; homes under construction; model homes and furnishings; community development district infrastructure; and consolidated inventory not owned.