Note 3 - Segment Reporting

3 Months Ended

Jun. 30, 2011

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 (“ASC 280”), 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 operations provide 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, 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 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,
	2011			2010			2011			2010
	(Dollars in thousands)
Homebuilding revenues:
California	$	113,737		$	196,723		$	192,647		$	295,624
Southwest		47,153			55,836			82,932			99,535
Southeast		43,455			64,600			72,465			97,369
Total homebuilding revenues	$	204,345		$	317,159		$	348,044		$	492,528
Homebuilding pretax income (loss):
California	$	(413	)	$	13,752		$	(2,534	)	$	15,967
Southwest		(3,647	)		840			(7,534	)		(669	)
Southeast		(2,385	)		802			(6,104	)		(2,828	)
Corporate		(4,046	)		(5,616	)		(7,673	)		(7,576	)
Total homebuilding pretax income (loss)	$	(10,491	)	$	9,778		$	(23,845	)	$	4,894
Homebuilding loss from unconsolidated joint ventures:
California	$	(366	)	$	(204	)	$	(605	)	$	(624	)
Southwest		(8	)		(12	)		(16	)		(23	)
Southeast		(5	)		(10	)		(15	)		(13	)
Total homebuilding loss from unconsolidated joint ventures	$	(379	)	$	(226	)	$	(636	)	$	(660	)
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,		December 31,
	2011		2010
	(Dollars in thousands)
Homebuilding assets:
California	$	956,913	$	819,376
Southwest		322,038		233,120
Southeast		272,461		237,635
Corporate		547,527		786,791
Total homebuilding assets	$	2,098,939	$	2,076,922
Homebuilding investments in unconsolidated joint ventures:
California	$	76,987	$	69,968
Southwest		2,748		2,743
Southeast		2,429		1,150
Total homebuilding investments in unconsolidated joint ventures	$	82,164	$	73,861