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 15 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 | Chicago, Illinois | Orlando, Florida | Charlotte, North Carolina | Cincinnati, Ohio | Sarasota, Florida | Raleigh, North Carolina | Columbus, Ohio | Tampa, Florida | Washington, D.C. | Indianapolis, Indiana | Austin, Texas | | Minneapolis/St. Paul, Minnesota | Dallas/Fort Worth, Texas | | | Houston, Texas | | | San Antonio, Texas | |
On July 1, 2016, we entered the Sarasota, Florida market. The following table shows, by segment: revenue, operating income and interest expense for the three and nine months ended September 30, 2016 and 2015: | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | (In thousands) | 2016 | | 2015 | | 2016 | | 2015 | Revenue: | | | | | | | | Midwest homebuilding | $ | 166,928 |
| | $ | 128,121 |
| | $ | 438,016 |
| | $ | 331,479 |
| Southern homebuilding | 143,315 |
| | 137,185 |
| | 414,974 |
| | 341,139 |
| Mid-Atlantic homebuilding | 121,659 |
| | 88,875 |
| | 284,527 |
| | 250,546 |
| Financial services (a) | 10,562 |
| | 9,276 |
| | 30,564 |
| | 26,308 |
| Total revenue | $ | 442,464 |
| | $ | 363,457 |
| | $ | 1,168,081 |
| | $ | 949,472 |
| | | | | | | | | Operating income: | | | | | | | | Midwest homebuilding | $ | 20,628 |
| | $ | 13,511 |
| | $ | 48,943 |
| | $ | 33,526 |
| Southern homebuilding (b) | (5,249 | ) | | 13,860 |
| | 8,380 |
| | 30,421 |
| Mid-Atlantic homebuilding | 11,359 |
| | 6,350 |
| | 22,827 |
| | 19,376 |
| Financial services (a) | 5,944 |
| | 4,856 |
| | 17,581 |
| | 15,425 |
| Less: Corporate selling, general and administrative expense | (10,676 | ) | | (8,457 | ) | | (26,876 | ) | | (23,051 | ) | Total operating income | $ | 22,006 |
| | $ | 30,120 |
| | $ | 70,855 |
| | $ | 75,697 |
| | | | | | | | | Interest expense: | | | | | | | | Midwest homebuilding | $ | 647 |
| | $ | 649 |
| | $ | 2,539 |
| | $ | 2,536 |
| Southern homebuilding | 1,788 |
| | 1,649 |
| | 6,118 |
| | 5,185 |
| Mid-Atlantic homebuilding | 601 |
| | 948 |
| | 3,058 |
| | 3,011 |
| Financial services (a) | 551 |
| | 412 |
| | 1,445 |
| | 1,138 |
| Total interest expense | $ | 3,587 |
| | $ | 3,658 |
| | $ | 13,160 |
| | $ | 11,870 |
| | | | | | | | | Equity in income of unconsolidated joint ventures | (24 | ) | | (36 | ) | | (413 | ) | | (248 | ) | | | | | | | | | Income before income taxes | $ | 18,443 |
| | $ | 26,498 |
| | $ | 58,108 |
| | $ | 64,075 |
|
| | (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 refinancing. |
| | (b) | Includes a $14.5 million and $19.4 million charge for known and estimated future stucco-related repair costs in certain of our Florida communities (as more fully discussed in Note 6) taken during the three and nine months ended September 30, 2016, respectively. |
The following tables show total assets by segment at September 30, 2016 and December 31, 2015: | | | | | | | | | | | | | | | | | | | | | | September 30, 2016 | (In thousands) | Midwest | | Southern | | Mid-Atlantic | | Corporate, Financial Services and Unallocated | | Total | Deposits on real estate under option or contract | $ | 3,820 |
| | $ | 24,778 |
| | $ | 4,396 |
| | $ | — |
| | $ | 32,994 |
| Inventory (a) | 406,832 |
| | 472,255 |
| | 313,072 |
| | — |
| | 1,192,159 |
| Investments in unconsolidated joint ventures | 8,468 |
| | 18,060 |
| | — |
| | — |
| | 26,528 |
| Other assets (b) | 13,144 |
| | 22,348 |
| | 19,995 |
| | 190,069 |
| | 245,556 |
| Total assets | $ | 432,264 |
| | $ | 537,441 |
| | $ | 337,463 |
| | $ | 190,069 |
| | $ | 1,497,237 |
|
| | | | | | | | | | | | | | | | | | | | | | December 31, 2015 | (In thousands) | Midwest | | Southern | | Mid-Atlantic | | Corporate, Financial Services and Unallocated | | Total | Deposits on real estate under option or contract | $ | 3,379 |
| | $ | 16,128 |
| | $ | 4,203 |
| | $ | — |
| | $ | 23,710 |
| Inventory (a) | 368,748 |
| | 416,443 |
| | 303,141 |
| | — |
| | 1,088,332 |
| Investments in unconsolidated joint ventures | 5,976 |
| | 30,991 |
| | — |
| | — |
| | 36,967 |
| Other assets | 10,018 |
| | 23,704 |
| | 7,253 |
| | 225,570 |
| | 266,545 |
| Total assets | $ | 388,121 |
| | $ | 487,266 |
| | $ | 314,597 |
| | $ | 225,570 |
| | $ | 1,415,554 |
|
| | (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. |
| | (b) | During the nine months ended September 30, 2016, the Company purchased an airplane for $9.9 million. The asset is included in the table above in Corporate, Financial Services, and Unallocated Other Assets, and within Property and Equipment - Net in our Unaudited Condensed Consolidated Balance Sheets. |
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