Note 3 - Segment Reporting

6 Months Ended

Jun. 30, 2012

Segment Reporting Disclosure [Text Block]

3.       Segment Reporting

We operate two principal businesses: homebuilding and financial services.

Our homebuilding operations construct and sell single-family attached and detached homes.  In accordance with the aggregation criteria defined in ASC Topic 280, Segment Reporting, our homebuilding operating segments have been grouped into three reportable segments: California; Southwest, consisting of our operating divisions in Arizona, Texas, Colorado and Nevada; and Southeast, consisting of our operating divisions in Florida and the Carolinas.

Our mortgage financing operation provides mortgage financing to our homebuyers in substantially all of the markets in which we operate, and sells substantially all of the loans it originates in the secondary mortgage market.  Our title service operation provides title examinations for our homebuyers in Texas.  Our mortgage financing and title services operations are included in our financial services reportable segment, which is separately reported in our consolidated financial statements under “Financial Services.”

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, marketing and human resources.  Corporate also provides the necessary administrative functions to support us as a publicly traded company.  A substantial portion of the expenses incurred by Corporate are allocated to each of the homebuilding operating divisions based on their respective percentage of revenues.

Segment financial information relating to the Company’s homebuilding operations was as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
	(Dollars in thousands)
Homebuilding revenues:
California	$	147,087		$	113,737		$	262,457		$	192,647
Southwest		64,115			47,153			120,234			82,932
Southeast		63,670			43,455			115,883			72,465
Total homebuilding revenues	$	274,872		$	204,345		$	498,574		$	348,044
Homebuilding pretax income (loss):
California	$	8,583		$	(413	)	$	16,715		$	(2,534	)
Southwest		1,947			(3,647	)		2,980			(7,534	)
Southeast		652			(2,385	)		(75	)		(6,104	)
Corporate		696			(4,046	)		(461	)		(7,673	)
Total homebuilding pretax income (loss)	$	11,878		$	(10,491	)	$	19,159		$	(23,845	)
Homebuilding income (loss) from unconsolidated joint ventures:
California	$	(1,099	)	$	(366	)	$	(2,592	)	$	(605	)
Southwest		(8	)		(8	)		(13	)		(16	)
Southeast		(39	)		(5	)		(63	)		(15	)
Total homebuilding income (loss) from unconsolidated joint ventures	$	(1,146	)	$	(379	)	$	(2,668	)	$	(636	)
Inventory impairments:
California	$	―		$	3,837		$	―		$	3,837
Southwest		―			2,122			―			2,122
Southeast		―			―			―			―
Total inventory impairments	$	―		$	5,959		$	―		$	5,959
Restructuring charges:
California	$	―		$	―		$	―		$	424
Southwest		―			―			―			47
Southeast		―			―			―			―
Corporate		―			―			―			90
Total restructuring charges	$	―		$	―		$	―		$	561

Segment financial information relating to the Company’s homebuilding assets and investments in unconsolidated joint ventures was as follows:

	June 30, 2012		December 31, 2011
	(Dollars in thousands)
Homebuilding assets:
California	$	1,059,857	$	985,560
Southwest		378,258		355,060
Southeast		368,622		294,996
Corporate		344,714		473,971
Total homebuilding assets	$	2,151,451	$	2,109,587
Homebuilding investments in unconsolidated joint ventures:
California	$	81,128	$	76,999
Southwest		2,758		2,770
Southeast		1,579		2,038
Total homebuilding investments in unconsolidated joint ventures	$	85,465	$	81,807