Segment Information

6 Months Ended

Jun. 30, 2012

Segment Information

18. Segment Information

Our homebuilding business, which is responsible for nearly all our operating results, constructs and sells single-family attached and detached homes designed to appeal to first-time, move-up and active adult homebuyers. Our homebuilding business also provides management services to joint ventures and other related and unrelated parties. We manage each homebuilding community as an operating segment and have aggregated these communities into reportable segments based on geography as follows:

• Southern California, comprised of communities in Los Angeles, Ventura, Orange, Riverside and San Bernardino Counties;

• San Diego, comprised of communities in San Diego County, California;

• Northern California, comprised of communities in northern and central California;

• Mountain West, comprised of communities in Colorado and Washington;

• South West, comprised of communities in Arizona and Nevada; and

• Other, comprised primarily of communities in Florida.

In accordance with ASC 280, Segment Reporting, in determining the most appropriate aggregation of our homebuilding communities, we also considered similar economic and other characteristics, including product types, average selling prices, gross profits, production processes, suppliers, subcontractors, regulatory environments, land acquisition results, and underlying demand and supply.

Our Corporate segment primarily provides management services to our operating segments, and includes results of our captive insurance provider, which primarily administers claims reinsured by third-party carriers. Results of our insurance brokerage services business are also included in our Corporate segment.

The reportable segments follow the same accounting policies as our consolidated financial statements described in Note 2. Operational results of each reportable segment are not necessarily indicative of the results that would have been achieved had the reportable segment been an independent, stand-alone entity during the periods presented. As a result of certain reporting changes that became effective December 31, 2011, we reclassified certain 2011 amounts to conform to the current reportable segments of the Company.

Financial information relating to reportable segments was as follows:

	June 30, 2012		December 31, 2011
	(In thousands)
Total assets:
Southern California	$	191,308	$	176,999
San Diego		135,530		127,438
Northern California		229,485		219,734
Mountain West		307,411		351,050
South West		95,770		105,621
Other		6,057		4,313
Total homebuilding assets		965,561		985,155
Corporate		320,381		342,961
Total assets	$	1,285,942	$	1,328,116
	June 30, 2012		December 31, 2011
	(In thousands)
Inventory:
Southern California	$	145,715	$	142,877
San Diego		116,269		105,595
Northern California		212,172		204,901
Mountain West		238,149		256,685
South West		78,902		71,289
Other		3,554		2,463
Total inventory	$	794,761	$	783,810

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
	(In thousands)						(In thousands)
Revenues:
Southern California	$	30,104		$	25,820		$	56,484		$	45,593
San Diego		10,180			14,145			24,287			19,906
Northern California		30,438			26,558			56,396			42,413
Mountain West		33,211			23,715			51,806			36,869
South West		26,700			23,257			46,215			41,425
Other		1,585			1,171			2,390			2,262
Total homebuilding revenues		132,218			114,666			237,578			188,468
Corporate		250			268			493			525
Total revenues	$	132,468		$	114,934		$	238,071		$	188,993
	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
	(In thousands)						(In thousands)
(Loss) income before income taxes:
Southern California	$	3,302		$	(363	)	$	5,276		$	(2,688	)
San Diego		(1,502	)		(9,790	)		(1,500	)		(11,089	)
Northern California		612			(335	)		1,429			(2,063	)
Mountain West		(1,786	)		(1,936	)		(5,154	)		(3,717	)
South West		(1,494	)		(799	)		(3,150	)		(2,833	)
Other		25			539			(225	)		285
Total homebuilding loss before income taxes		(843	)		(12,684	)		(3,324	)		(22,105	)
Corporate		(10,429	)		(88,748	)		(8,898	)		(87,868	)
Total loss before income taxes	$	(11,272	)	$	(101,432	)	$	(12,222	)	$	(109,973	)
	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
	(In thousands)						(In thousands)
Impairment:
Southern California	$	0		$	0		$	0		$	0
San Diego		0			9,684			0			9,684
Northern California		0			0			0			0
Mountain West		0			0			0			0
South West		0			0			0			618
Other		0			0			0			0
Total impairment	$	0		$	9,684		$	0		$	10,302