Business Segments

9 Months Ended

Sep. 30, 2015

Business Segments [Abstract]

Segment Reporting Disclosure [Text Block]

Business Segments

The Company’s chief operating decision makers evaluate the Company’s performance in various ways, including: (1) the results of our 13 individual homebuilding operating segments and the results of our financial services operations; (2) the results of our three homebuilding reportable segments; and (3) our consolidated financial results.

In accordance with ASC 280, Segment Reporting (“ASC 280”), we have identified each homebuilding division as an operating segment as each homebuilding division engages in business activities from which it earns revenue, primarily from the sale and construction of single-family attached and detached homes, acquisition and development of land, and the occasional sale of lots to third parties. Our financial services operations generate revenue primarily from the origination, sale and servicing of mortgage loans and title services primarily for purchasers of the Company’s homes and are included in our financial services reportable segment. In accordance with the aggregation criteria defined in ASC 280, 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 been aggregated because they share similar aggregation characteristics as prescribed in ASC 280 in the following regards: (1) long-term economic characteristics; (2) historical and expected future long-term gross margin percentages; (3) housing products, production processes and methods of distribution; and (4) geographical proximity.  

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
	Austin, Texas
	Dallas/Fort Worth, Texas

The following table shows, by segment: revenue, operating income and interest expense for the three and nine months ended September 30, 2015 and 2014:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2015			2014			2015			2014
Revenue:
Midwest homebuilding	$	128,121		$	118,319		$	331,479		$	283,472
Southern homebuilding	137,185			118,150			341,139			299,472
Mid-Atlantic homebuilding	88,875			86,718			250,546			242,357
Financial services (a)	9,276			7,580			26,308			21,915
Total revenue	$	363,457		$	330,767		$	949,472		$	847,216
Operating income:
Midwest homebuilding (b)	$	13,511		$	12,802		$	33,526		$	26,771
Southern homebuilding	13,860			10,215			30,421			24,741
Mid-Atlantic homebuilding	6,350			6,511			19,376			18,888
Financial services (a)	4,856			3,804			15,425			12,204
Less: Corporate selling, general and administrative expense	(8,457		)	(8,502		)	(23,051		)	(23,126		)
Total operating income	$	30,120		$	24,830		$	75,697		$	59,478
Interest expense:
Midwest homebuilding	$	649		$	450		$	2,536		$	2,211
Southern homebuilding	1,649			968			5,185			3,927
Mid-Atlantic homebuilding	948			829			3,011			2,392
Financial services (a)	412			402			1,138			1,019
Total interest expense	$	3,658		$	2,649		$	11,870		$	9,549
Equity in income of unconsolidated joint ventures	(36		)	(22		)	(248		)	(62		)
Income before income taxes	$	26,498		$	22,203		$	64,075		$	49,991

(a) Our financial services operational results should be viewed in connection with our homebuilding business as its operations originate loans and provide title services primarily for our homebuying customers, with the exception of a small amount of mortgage re-financing.

(b) For the three months ended September 30, 2014, the impact of charges relating to the impairment of future communities in the Midwest region reduced operating income by $0.6 million. For the nine months ended September 30, 2014, the impact of charges relating to the impairment of operating and future communities in the Midwest region reduced operating income by $0.8 million and $0.6 million, respectively.

The following tables show total assets by segment at September 30, 2015 and December 31, 2014:

	September 30, 2015
(In thousands)	Midwest		Southern		Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	3,092	$	14,940	$	3,962	$	—	$	21,994
Inventory (a)	366,677		423,588		321,155		—		1,111,420
Investments in unconsolidated joint ventures	5,783		27,499		—		—		33,282
Other assets	10,208		29,001		8,081		192,016		239,306
Total assets	$	385,760	$	495,028	$	333,198	$	192,016	$	1,406,002

	December 31, 2014
(In thousands)	Midwest		Southern		Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	4,573	$	14,752	$	4,170	$	—	$	23,495
Inventory (a)	303,037		331,938		260,119		—		895,094
Investments in unconsolidated joint ventures	1,764		26,005		—		—		27,769
Other assets	7,933		16,829		7,536		232,754		265,052
Total assets	$	317,307	$	389,524	$	271,825	$	232,754	$	1,211,410

(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.