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Supplemental Guarantor Information
9 Months Ended
Sep. 30, 2016
Supplemental Guarantor Information [Abstract]  
Condensed Financial Information of Parent Company Only Disclosure [Text Block]
Supplemental Guarantor Information
The Company’s obligations under the 2021 Senior Notes, the 2017 Convertible Senior Subordinated Notes and the 2018 Convertible Senior Subordinated Notes are not guaranteed by all of the Company’s subsidiaries and therefore, the Company has disclosed condensed consolidating financial information in accordance with SEC Regulation S-X Rule 3-10, Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered. The Guarantor Subsidiaries of the 2021 Senior Notes, the 2017 Convertible Senior Subordinated Notes and the 2018 Convertible Senior Subordinated Notes are the same.
The following condensed consolidating financial information includes balance sheets, statements of income and cash flow information for M/I Homes, Inc. (the parent company and the issuer of the aforementioned guaranteed notes), the Guarantor Subsidiaries, collectively, and for all other subsidiaries and joint ventures of the Company (the “Unrestricted Subsidiaries”), collectively. Each Guarantor Subsidiary is a direct or indirect 100%-owned subsidiary of M/I Homes, Inc. and has fully and unconditionally guaranteed the (a) 2021 Senior Notes on a joint and several senior unsecured basis, (b) 2017 Convertible Senior Subordinated Notes on a joint and several senior subordinated unsecured basis and (c) 2018 Convertible Senior Subordinated Notes on a joint and several senior subordinated unsecured basis.
There are no significant restrictions on the parent company’s ability to obtain funds from its Guarantor Subsidiaries in the form of a dividend, loan, or other means.
As of September 30, 2016, each of the Company’s subsidiaries is a Guarantor Subsidiary, with the exception of subsidiaries that are primarily engaged in the business of mortgage financing, title insurance or similar financial businesses relating to the homebuilding and home sales business, certain subsidiaries that are not 100%-owned by the Company or another subsidiary, and other subsidiaries designated by the Company as Unrestricted Subsidiaries, subject to limitations on the aggregate amount invested in such Unrestricted Subsidiaries in accordance with the terms of the Credit Facility and the indenture governing the 2021 Senior Notes.
In the condensed financial tables presented below, the parent company presents all of its 100%-owned subsidiaries as if they were accounted for under the equity method. All applicable corporate expenses have been allocated appropriately among the Guarantor Subsidiaries and Unrestricted Subsidiaries.
CONDENSED CONSOLIDATING STATEMENTS OF INCOME
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2016
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
Revenue
 
$

$
431,903

$
10,561

$

$
442,464

Costs and expenses:
 
 
 
 
 
 
Land and housing
 

363,635



363,635

General and administrative
 

24,340

4,820


29,160

Selling
 

27,663



27,663

Equity in income of unconsolidated joint ventures
 


(24
)

(24
)
Interest
 

3,036

551


3,587

Total costs and expenses
 

418,674

5,347


424,021

 
 
 
 
 
 
 
Income before income taxes
 

13,229

5,214


18,443

 
 
 
 
 
 
 
Provision for income taxes
 

5,601

1,900


7,501

 
 
 
 
 
 
 
Equity in subsidiaries
 
10,942



(10,942
)

 
 
 
 
 
 
 
Net income
 
10,942

7,628

3,314

(10,942
)
10,942

 
 
 
 
 
 
 
Preferred dividends
 
1,218




1,218

 
 
 
 
 
 
 
Net income to common shareholders
 
$
9,724

$
7,628

$
3,314

$
(10,942
)
$
9,724


 
 
Three Months Ended September 30, 2015
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
Revenue
 
$

$
354,181

$
9,276

$

$
363,457

Costs and expenses:
 
 
 
 
 
 
Land and housing
 

285,416



285,416

General and administrative
 

19,080

4,571


23,651

Selling
 

24,270



24,270

Equity in income of unconsolidated joint ventures
 


(36
)

(36
)
Interest
 

3,246

412


3,658

Total costs and expenses
 

332,012

4,947


336,959

 
 
 
 
 
 
 
Income before income taxes
 

22,169

4,329


26,498

 
 
 
 
 
 
 
Provision for income taxes
 

9,531

1,397


10,928

 
 
 
 
 
 
 
Equity in subsidiaries
 
15,570



(15,570
)

 
 
 
 
 
 
 
Net income
 
15,570

12,638

2,932

(15,570
)
15,570

 
 
 
 
 
 
 
Preferred dividends
 
1,218




1,218

 
 
 
 
 
 
 
Net income to common shareholders
 
$
14,352

$
12,638

$
2,932

$
(15,570
)
$
14,352


CONDENSED CONSOLIDATING STATEMENTS OF INCOME
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2016
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
Revenue
 
$

$
1,137,517

$
30,564

$

$
1,168,081

Costs and expenses:
 
 
 
 
 
 
Land and housing
 

943,515



943,515

General and administrative
 

64,727

13,522


78,249

Selling
 

75,462



75,462

Equity in income of unconsolidated joint ventures
 


(413
)

(413
)
Interest
 

11,715

1,445


13,160

Total costs and expenses
 

1,095,419

14,554


1,109,973

 
 
 
 
 
 
 
Income before income taxes
 

42,098

16,010


58,108

 
 
 
 
 
 
 
Provision for income taxes
 

16,487

5,574


22,061

 
 
 
 
 
 
 
Equity in subsidiaries
 
36,047



(36,047
)

 
 
 
 
 
 
 
Net income
 
36,047

25,611

10,436

(36,047
)
36,047

 
 
 
 
 
 
 
Preferred dividends
 
3,656




3,656

 
 
 
 
 
 
 
Net income to common shareholders
 
$
32,391

$
25,611

$
10,436

$
(36,047
)
$
32,391


 
 
Nine Months Ended September 30, 2015
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
Revenue
 
$

$
923,164

$
26,308

$

$
949,472

Costs and expenses:
 
 
 
 
 
 
Land and housing
 

744,194



744,194

General and administrative
 

53,334

11,356


64,690

Selling
 

64,891



64,891

Equity in income of unconsolidated joint ventures
 


(248
)

(248
)
Interest
 

10,732

1,138


11,870

Total costs and expenses
 

873,151

12,246


885,397

 
 
 
 
 
 
 
Income before income taxes
 

50,013

14,062


64,075

 
 
 
 
 
 
 
Provision for income taxes
 

20,690

4,897


25,587

 
 
 
 
 
 
 
Equity in subsidiaries
 
38,488



(38,488
)

 
 
 
 
 
 
 
Net income
 
38,488

29,323

9,165

(38,488
)
38,488

 
 
 
 
 
 
 
Preferred dividends
 
3,656




3,656

 
 
 
 
 
 
 
Net income to common shareholders
 
$
34,832

$
29,323

$
9,165

$
(38,488
)
$
34,832



CONDENSED CONSOLIDATING BALANCE SHEET
 
 
 
 
 
 
 
 
 
September 30, 2016
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
ASSETS:
 
 
 
 
 
 
Cash and cash equivalents
 
$

$
7,161

$
15,149

$

$
22,310

Restricted cash
 

998



998

Mortgage loans held for sale
 


95,545


95,545

Inventory
 

1,225,153



1,225,153

Property and equipment - net
 

21,221

571


21,792

Investment in unconsolidated joint ventures
 

6,017

20,511


26,528

Deferred income taxes, net of valuation allowances
 

39,944



39,944

Investment in subsidiaries
 
649,961



(649,961
)

Intercompany assets
 
417,303



(417,303
)

Other assets
 
1,924

50,391

12,652


64,967

TOTAL ASSETS
 
$
1,069,188

$
1,350,885

$
144,428

$
(1,067,264
)
$
1,497,237

 
 
 
 
 
 

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 

 
 
 
 
 
 

LIABILITIES:
 
 
 
 
 

Accounts payable
 
$

$
109,808

$
371

$

$
110,179

Customer deposits
 

26,439



26,439

Intercompany liabilities
 

399,251

18,052

(417,303
)

Other liabilities
 

94,998

4,971


99,969

Community development district obligations
 

551



551

Obligation for consolidated inventory not owned
 

5,862



5,862

Notes payable bank - homebuilding operations
 

85,000



85,000

Notes payable bank - financial services operations
 


91,483


91,483

Notes payable - other
 

8,566



8,566

Convertible senior subordinated notes due 2017 - net
 
56,949




56,949

Convertible senior subordinated notes due 2018 - net
 
85,246




85,246

Senior notes due 2021 - net
 
295,401




295,401

TOTAL LIABILITIES
 
437,596

730,475

114,877

(417,303
)
865,645

 
 
 
 
 
 
 
SHAREHOLDERS’ EQUITY
 
631,592

620,410

29,551

(649,961
)
631,592

 
 
 
 
 
 
 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
 
$
1,069,188

$
1,350,885

$
144,428

$
(1,067,264
)
$
1,497,237


CONDENSED CONSOLIDATING BALANCE SHEET
 
 
 
 
 
 
 
 
 
December 31, 2015
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
ASSETS:
 
 
 
 
 
 
Cash and cash equivalents
 
$

$

$
18,156

$
(7,951
)
$
10,205

Restricted cash
 

2,896



2,896

Mortgage loans held for sale
 


127,001


127,001

Inventory
 

1,112,042



1,112,042

Property and equipment - net
 

12,222

675


12,897

Investment in unconsolidated joint ventures
 

17,425

19,542


36,967

Deferred income taxes, net of valuation allowances
 

67,255

149


67,404

Investment in subsidiaries
 
621,052



(621,052
)

Intercompany assets
 
408,847



(408,847
)

Other assets
 
2,626

32,335

11,181


46,142

TOTAL ASSETS
 
$
1,032,525

$
1,244,175

$
176,704

$
(1,037,850
)
$
1,415,554

 
 
 
 
 
 

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 

 
 
 
 
 
 

LIABILITIES:
 
 
 
 
 

Accounts payable
 
$

$
94,554

$
275

$
(7,951
)
$
86,878

Customer deposits
 

19,567



19,567

Intercompany liabilities
 

387,439

21,408

(408,847
)

Other liabilities
 

88,550

5,120


93,670

Community development district obligations
 

1,018



1,018

Obligation for consolidated inventory not owned
 

6,007



6,007

Notes payable bank - homebuilding operations
 

43,800



43,800

Notes payable bank - financial services operations
 


123,648


123,648

Notes payable - other
 

8,441



8,441

Convertible senior subordinated notes due 2017 - net
 
56,518




56,518

Convertible senior subordinated notes due 2018 - net
 
84,714




84,714

Senior notes due 2021 - net
 
294,727




294,727

TOTAL LIABILITIES
 
435,959

649,376

150,451

(416,798
)
818,988

 
 
 
 
 
 
 
SHAREHOLDERS’ EQUITY
 
596,566

594,799

26,253

(621,052
)
596,566

 
 
 
 
 
 
 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
 
$
1,032,525

$
1,244,175

$
176,704

$
(1,037,850
)
$
1,415,554



CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
 
 
 
 
 
 
 
Nine Months Ended September 30, 2016
(In thousands)
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
OPERATING ACTIVITIES:
 
 
 
 
 
Net cash provided by (used in) operating activities
$
7,138

$
(18,192
)
$
44,712

$
(7,138
)
$
26,520

 
 
 
 
 
 
INVESTING ACTIVITIES:
 
 
 
 
 
Restricted cash

1,880



1,880

Purchase of property and equipment

(11,565
)
(54
)

(11,619
)
Intercompany investing
(3,555
)


3,555


Investments in and advances to unconsolidated joint ventures

(5,504
)
(4,556
)

(10,060
)
Net cash (used in) provided by investing activities
(3,555
)
(15,189
)
(4,610
)
3,555

(19,799
)
 
 
 
 
 
 
FINANCING ACTIVITIES:
 
 
 
 
 
Proceeds from bank borrowings - homebuilding operations

276,800



276,800

Principal repayments of bank borrowings - homebuilding operations

(235,600
)


(235,600
)
Net proceeds from bank borrowings - financial services operations


(32,165
)

(32,165
)
Principal proceeds from notes payable - other and CDD bond obligations

125



125

Proceeds from exercise of stock options
73




73

Intercompany financing

(630
)
(3,766
)
4,396


Dividends paid
(3,656
)

(7,138
)
7,138

(3,656
)
Debt issue costs

(153
)
(40
)

(193
)
Net cash (used in) provided by financing activities
(3,583
)
40,542

(43,109
)
11,534

5,384

 
 
 
 
 
 
Net increase (decrease) in cash and cash equivalents

7,161

(3,007
)
7,951

12,105

Cash and cash equivalents balance at beginning of period


18,156

(7,951
)
10,205

Cash and cash equivalents balance at end of period
$

$
7,161

$
15,149

$

$
22,310


 
Nine Months Ended September 30, 2015
(In thousands)
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
OPERATING ACTIVITIES:
 
 
 
 
 
Net cash provided by (used in) operating activities
$
2,428

$
(114,357
)
$
19,161

$
(2,428
)
$
(95,196
)
 
 
 
 
 
 
INVESTING ACTIVITIES:
 
 
 
 
 
Restricted cash

3,615



3,615

Purchase of property and equipment

(1,939
)
(64
)

(2,003
)
Intercompany Investing
193



(193
)

Investments in and advances to unconsolidated joint ventures

(2,728
)
(7,997
)

(10,725
)
Net proceeds from the sale of mortgage servicing rights


3,065


3,065

Net cash provided by (used in) investing activities
193

(1,052
)
(4,996
)
(193
)
(6,048
)
 
 
 
 
 
 
FINANCING ACTIVITIES:
 
 
 
 
 
Proceeds from bank borrowings - homebuilding operations

329,400



329,400

Principal repayments of bank borrowings - homebuilding operations

(203,300
)


(203,300
)
Net repayments of bank borrowings - financial services operations


(12,140
)

(12,140
)
Principal repayments of notes payable - other and CDD bond obligations

(155
)


(155
)
Proceeds from exercise of stock options
1,035




1,035

Intercompany financing

(6,158
)
5,965

193


Dividends paid
(3,656
)

(2,428
)
2,428

(3,656
)
Debt issue costs

(380
)
(40
)

(420
)
Net cash (used in) provided by financing activities
(2,621
)
119,407

(8,643
)
2,621

110,764

 
 
 
 
 
 
Net increase in cash and cash equivalents

3,998

5,522


9,520

Cash and cash equivalents balance at beginning of period

3,872

11,663


15,535

Cash and cash equivalents balance at end of period
$

$
7,870

$
17,185

$

$
25,055