Business Segments

9 Months Ended

Sep. 30, 2013

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 13 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 long-term 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	Raleigh, North Carolina
Chicago, Illinois	San Antonio, Texas
	Austin, Texas
	Dallas/Fort Worth, Texas

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

The following table shows, by segment, revenue, operating income and interest expense for the three and nine months ended September 30, 2013 and 2012, as well as the Company’s income before income taxes for such periods:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2013			2012			2013			2012
Revenue:
Midwest homebuilding	$	82,689		$	79,015		$	222,890		$	198,994
Southern homebuilding	96,275			50,828			216,181			123,400
Mid-Atlantic homebuilding	89,550			72,649			239,061			172,977
Financial services (a)	6,681			6,383			22,343			15,623
Total revenue	$	275,195		$	208,875		$	700,475		$	510,994
Operating income:
Midwest homebuilding (b)	$	5,114		$	3,940		$	11,696		$	9,012
Southern homebuilding (b)	8,271			6,144			15,222			9,837
Mid-Atlantic homebuilding (b)	8,433			5,787			18,961			9,496
Financial services (a)	3,827			3,960			13,451			8,606
Less: Corporate selling, general and administrative expense	(6,996		)	(7,380		)	(19,663		)	(17,508		)
Total operating income	$	18,649		$	12,451		$	39,667		$	19,443
Interest expense:
Midwest homebuilding	$	1,023		$	1,243		$	3,852		$	4,181
Southern homebuilding	1,405			999			4,510			2,543
Mid-Atlantic homebuilding	659			1,342			2,809			4,248
Financial services (a)	362			415			1,015			1,094
Total interest expense	$	3,449		$	3,999		$	12,186		$	12,066
Equity in income of unconsolidated joint ventures	(278		)	—			(278		)	—
Loss on early extinguishment of debt	1,726			—			1,726			—
Income before income taxes	$	13,752		$	8,452		$	26,033		$	7,377

(a) Our financial services operational results should be viewed in connection with our homebuilding business as its operations originate loans and provide title services primarily for our homebuying customers, with the exception of a small amount of mortgage re-financing.

(b) For the three months ended September 30, 2013 and 2012, the impact of charges relating to the impairment of inventory and investment in unconsolidated joint ventures and the write-off of abandoned land transaction costs was $2.1 million and $1.3 million, respectively. These charges reduced operating income by $2.1 million and $1.3 million in the Midwest region for the three months ended September 30, 2013 and 2012, respectively. There were no charges in the Mid-Atlantic or Southern regions for the three months ended September 30, 2013 and 2012.

For the nine months ended September 30, 2013 and 2012, the impact of charges relating to the impairment of inventory and investment in unconsolidated joint ventures and the write-off of abandoned land transaction costs was $4.2 million and $2.1 million, respectively. These charges reduced operating income by $4.2 million and $1.9 million in the Midwest region for the nine months ended September 30, 2013 and 2012, respectively, and $0.1 million in each of the Southern and Mid-Atlantic regions for the nine months ended September 30, 2012. There were no charges in the Mid-Atlantic or Southern regions for the nine months ended September 30, 2013.

The following tables show total assets by segment at September 30, 2013 and December 31, 2012:

	September 30, 2013
(In thousands)	Midwest		Southern		Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	2,141	$	7,737	$	3,477	$	—	$	13,355
Inventory (a)	241,233		212,665		209,083		—		662,981
Investments in unconsolidated joint ventures	5,200		28,888		—		—		34,088
Other assets	7,699		14,186		9,146		341,612		372,643
Total assets	$	256,273	$	263,476	$	221,706	$	341,612	$	1,083,067

	December 31, 2012
(In thousands)	Midwest		Southern		Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	1,462	$	4,612	$	2,653	$	—	$	8,727
Inventory (a)	196,554		157,302		194,234		—		548,090
Investments in unconsolidated joint ventures	5,121		6,611		—		—		11,732
Other assets	4,421		8,436		7,759		242,135		262,751
Total assets	$	207,558	$	176,961	$	204,646	$	242,135	$	831,300

(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.