Reportable Segments

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Business Segments

Segment Information

Our current operations include the following reportable segments: the development, sale and management of active adult communities; the development and sale of primary residential communities; and the sale of commercial, industrial or other land. 

Our operating segments are defined as a component of an enterprise for which discrete financial information is available and is reviewed regularly by the chief operating decision maker, to evaluate performance and make operating decisions. We have identified our chief operating decision maker as the Chief Executive Officer.

The following table summarizes our information for reportable segments for the years endedDecember 31, 2014, 2013, and 2012 (in thousands):

	For the Year Ended
	2014			2013			2012
Operating income (loss):
Active adult communities:
Revenues:
Homebuilding	$	124,372		$	69,362		$	36,018
Amenity	7,960			7,227			7,014
Total revenue	132,332			76,589			43,032
Expenses:
Homebuilding	98,992			55,543			31,619
Homebuilding selling, general and administrative	17,097			12,605			13,150
Amenity	7,887			8,013			7,182
Segment operating income (loss)	$	8,356		$	428		$	(8,919	)
Primary residential communities:
Revenues:
Homebuilding	$	118,799		$	45,611		$	33,496
Amenity	2,127			2,451			2,440
Total revenue	120,926			48,062			35,936
Expenses:
Homebuilding	99,892			36,255			27,760
Homebuilding selling, general and administrative	17,264			6,930			5,805
Amenity	1,932			2,440			2,380
Segment operating income (loss)	$	1,838		$	2,437		$	(9	)
Land sales:
Revenues	$	32,596		$	16,303		$	26,595
Expenses	22,003			8,111			18,581
Segment operating income	$	10,593		$	8,192		$	8,014
Other operations:
Revenues	$	59		$	528		$	598
Expenses	58			546			(33		)
Segment operating income (loss)	$	1		$	(18	)	$	631
Operating income (loss)	$	20,788		$	11,039		$	(283	)
Unallocated income (expenses):
Interest income and other	$	447		$	2,218		$	1,326
Loss on repurchase of 4.50% Notes	—			—			(1,144		)
Equity income (loss) from unconsolidated entities	(16		)	(101		)	259
Corporate general and administrative expenses	(15,941		)	(15,975		)	(16,148		)
Interest expense	(5,805		)	(2,830		)	(7,973		)
Other real estate expenses	(1,076		)	(2,904		)	(6,312		)
Impairment of land developed or held for future development	—			281			(57,408		)
Income (loss) before income taxes	$	(1,603	)	$	(8,272	)	$	(87,683	)
Income tax expense	—			—			—
Net (income) loss attributable to non-controlling interests	(329		)	(1,205		)	(2,552		)
Net loss attributable to AV Homes	$	(1,932	)	$	(9,477	)	$	(90,235	)

	December 31
	2014		2013
Segment assets:
Active adult communities	$	197,773	$	145,717
Primary residential communities	242,338		91,076
Commercial and industrial and other land	7,784		44,704
Assets held for sale	4,051		23,862
Unallocated assets	216,940		161,369
Total assets	$	668,886	$	466,728

a. Our businesses are conducted in the United States.

b. Identifiable assets by segment are those assets that are used in the operations of each segment.

c. No significant part of the business is dependent upon a single customer or group of customers.

d. The caption “Unallocated assets” under the table depicting the segment assets represents the following as of December 31, 2014 and 2013, respectively: cash, cash equivalents and restricted cash of $196.5 million and $148.3 million; land inventories of $4.6 million and $4.2 million; property and equipment of $2.7 million and $1.9 million; investment in and notes from unconsolidated entities of $1.2 million and $1.2 million; receivables of $2.0 million and $2.9 million; and prepaid expenses and other assets of $10.1 million and $2.8 million. None of the foregoing are directly attributable to a reportable segment in accordance with ASC 280.

e. There is no interest expense from active adult communities, primary residential, and commercial, industrial and other land sales included in segment operating income/(loss) for 2014, 2013 and 2012.

f. Included in segment operating income/(loss) for 2014 is depreciation expense (including amortization of assets under capital leases) of $2.2 million, $0.4 million and $0.7 million from active adult, primary residential and unallocated G&A/other, respectively.  Included in segment operating income/(loss) for 2013 is depreciation expense of $2.1 million, $0.0 million, and $0.7 million from active adult, primary residential and unallocated G&A/other, respectively.  Included in segment operating income/(loss) for 2012 is depreciation expense of $2.1 million, $0.1 million and $0.5 million from active adult, primary residential and unallocated G&A/other, respectively.

g. During fiscal year 2014 there were no impairment losses recognized. During fiscal year 2013, impairment losses of approximately $0.0 million and $0.0 million reduced the carrying value of the assets of active adult and primary residential communities, respectively.  During fiscal year 2012, impairment losses of approximately $1.6 million and $0.0 million reduced the carrying value of the assets of active adult and primary residential communities, respectively.

h. Goodwill of $6.1 million has been assigned to the primary residential segment.