Business Segments

9 Months Ended

Sep. 30, 2011

Business Segments [Abstract]

Segment Reporting Disclosure [Text Block]

Business Segments

The Company’s segment information is presented on the basis that the chief operating decision makers use in evaluating segment performance.  The Company’s chief operating decision makers evaluate the Company’s performance in various ways, including: (1) the results of our eleven individual homebuilding operating segments and the results of our financial services operations; (2) the results of our three homebuilding regions; and (3) our consolidated financial results.  We have determined our reportable segments as follows: Midwest homebuilding, Southern homebuilding, Mid-Atlantic homebuilding and financial services operations.  The homebuilding operating segments that are included within each reportable segment have similar operations and exhibit similar economic characteristics.  Our homebuilding operations include the acquisition and development of land, the sale and construction of single-family attached and detached homes, and the occasional sale of lots to third parties.  The homebuilding operating segments that comprise each of our reportable segments are as follows:

Midwest	Southern	Mid-Atlantic
Columbus, Ohio	Tampa, Florida	Washington, D.C.
Cincinnati, Ohio	Orlando, Florida	Charlotte, North Carolina
Indianapolis, Indiana	Houston, Texas (1)	Raleigh, North Carolina
Chicago, Illinois	San Antonio, Texas (2)

⁽¹⁾ We announced our entry into the Houston, Texas market in March 2010, and we commenced home construction in Houston

during the fourth quarter of 2010.

⁽²⁾ In April 2011, we acquired the assets of TriStone Homes, a privately-held homebuilder based in San Antonio, Texas.

Our financial services operations include the origination and sale of mortgage loans and title services primarily for purchasers of the Company's homes.

The following table shows, by segment, revenue, operating (loss) income and interest expense for the three and nine months ended September 30, 2011 and 2010, as well as the Company’s loss before income taxes for such periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2011		2010		2011		2010
Revenue:
Midwest homebuilding	$	58,941	$	63,757	$	168,291	$	218,392
Southern homebuilding	35,281		16,217		84,117		66,910
Mid-Atlantic homebuilding	44,530		52,029		127,863		155,300
Financial services	2,872		3,606		9,367		10,800
Total revenue	$	141,624	$	135,609	$	389,638	$	451,402

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2011			2010			2011			2010
Operating (loss) income:
Midwest homebuilding (a)	$	1,364		$	837		$	(6,925	)	$	1,012
Southern homebuilding (a)	(203		)	(79		)	(6,895		)	(2,363		)
Mid-Atlantic homebuilding (a)	1,909			3,916			4,959			4,664
Financial services	969			1,753			4,203			5,104
Less: Corporate selling, general and administrative expenses	(5,490		)	(6,156		)	(15,288		)	(17,334		)
Total operating (loss) income	$	(1,451	)	$	271		$	(19,946	)	$	(8,917	)
Interest expense:
Midwest homebuilding	$	1,291		$	527		$	4,612		$	2,346
Southern homebuilding	768			351			1,965			1,047
Mid-Atlantic homebuilding	1,122			840			3,663			2,175
Financial services	203			234			644			604
Total interest expense	$	3,384		$	1,952		$	10,884		$	6,172
Loss before income taxes	$	(4,835	)	$	(1,681	)	$	(30,830	)	$	(15,089	)

(a) For the three months ended September 30, 2011 and 2010, the impact of charges relating to the impairment of inventory and investment in Unconsolidated LLCs and the write-off of abandoned land transaction costs was $1.8 million and $1.9 million, respectively. These charges reduced operating income by $1.2 million and $0.1 million in the Midwest region and $0.6 million and $1.6 million in the Southern region for the three months ended September 30, 2011 and 2010, respectively, and $0.2 million in the Mid-Atlantic region for the three months ended September 30, 2010. There were no impairment charges in our Mid-Atlantic region for the three months ended September 30, 2011.

For the nine months ended September 30, 2011 and 2010, the impact of charges relating to the impairment of inventory and investment in unconsolidated LLCs and the write-off of abandoned land transaction costs was $18.5 million and $11.6 million, respectively. These charges reduced operating income by $11.6 million and $3.2 million in the Midwest region, $6.6 million and $3.8 million in the Southern region and $0.3 million and $4.6 million in the Mid-Atlantic region for the nine months ended September 30, 2011 and 2010, respectively.

The following tables show total assets by segment:

	At September 30, 2011
							Corporate,
							Financial Services
(In thousands)	Midwest		Southern		Mid-Atlantic		and Unallocated		Total
Deposits on real estate under option or contract	$	499	$	1,474	$	1,107	$	—	$	3,080
Inventory (a)	206,217		92,912		189,152		—		488,281
Investments in unconsolidated entities	5,149		5,107		—		—		10,256
Other assets	4,472		2,333		3,417		149,886		160,108
Total assets	$	216,337	$	101,826	$	193,676	$	149,886	$	661,725

	At December 31, 2010
							Corporate,
							Financial Services
(In thousands)	Midwest		Southern		Mid-Atlantic		and Unallocated		Total
Deposits on real estate under option or contract	$	1,027	$	85	$	853	$	—	$	1,965
Inventory (a)	212,159		69,652		167,161		—		448,972
Investments in unconsolidated entities	5,929		4,660		—		—		10,589
Other assets	5,187		1,719		4,283		189,179		200,368
Total assets	$	224,302	$	76,116	$	172,297	$	189,179	$	661,894

(a) Inventory includes single-family lots, land and land development costs; land held for sale; homes under construction; model homes and furnishings; community development district infrastructure; and consolidated inventory not owned.