Note 3 - Segment Reporting

12 Months Ended

Dec. 31, 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 accounting, 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 and financial services subsidiary based on their respective percentage of revenues.

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

	Year Ended December 31,
	2012			2011			2010
	(Dollars in thousands)
Homebuilding revenues:
California	$	699,672		$	506,002		$	546,946
Southwest		248,421			190,622			187,609
Southeast		288,865			186,369			177,863
Total homebuilding revenues	$	1,236,958		$	882,993		$	912,418
Homebuilding pretax income (loss):
California	$	44,959		$	11,357		$	39,594
Southwest		10,877			(10,231	)		(5,103	)
Southeast		5,991			(10,236	)		(8,902	)
Corporate		5,818			(9,046	)		(39,590	)
Total homebuilding pretax income (loss	$	67,645		$	(18,156	)	$	(14,001	)
Homebuilding income (loss) from unconsolidated joint ventures:
California	$	(1,904	)	$	354		$	1,835
Southwest		(31	)		(22	)		(123	)
Southeast		(155	)		(125	)		(546	)
Total homebuilding income (loss) from unconsolidated joint ventures	$	(2,090	)	$	207		$	1,166
Inventory impairment charges:
California	$	―		$	9,490		$	―
Southwest		―			2,878			331
Southeast		―			821			1,487
Total inventory impairment charges	$	―		$	13,189		$	1,818

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

	December 31,
	2012		2011
	(Dollars in thousands)
Homebuilding assets:
California	$	1,192,249	$	985,560
Southwest		496,902		355,060
Southeast		438,122		294,996
Corporate		842,705		473,971
Total homebuilding assets	$	2,969,978	$	2,109,587
Homebuilding investments in unconsolidated joint ventures:
California	$	50,878	$	76,999
Southwest		2		2,770
Southeast		1,563		2,038
Total homebuilding investments in unconsolidated joint ventures	$	52,443	$	81,807