Business Segments

12 Months Ended

Dec. 31, 2014

Business Segments [Abstract]

Segment Reporting Disclosure [Text Block]

Business Segments

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.

In accordance with ASC 280, Segment Reporting (“ASC 280”), we have identified each homebuilding division as an operating segment and 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 been aggregated because they share similar aggregation characteristics as prescribed in ASC 280 in the following regards: (1) long-term economic characteristics; (2) historical and expected future long-term gross margin percentages; (3) housing products, production processes and methods of distribution; and (4) geographical proximity.  

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

The following table shows, by segment, revenue, operating income and interest expense for 2014, 2013 and 2012, as well as the Company’s income before income taxes for such periods:

	Year Ended December 31,
(In thousands)	2014			2013			2012
Revenue:
Midwest homebuilding	$	426,090		$	336,242		$	281,959
Southern homebuilding	420,901			324,436			189,714
Mid-Atlantic homebuilding	338,067			347,565			266,976
Financial services (a)	30,122			28,539			23,256
Total revenue	$	1,215,180		$	1,036,782		$	761,905
Operating income:
Midwest homebuilding	$	37,484		$	21,469		$	11,443
Southern homebuilding	34,341			23,653			14,530
Mid-Atlantic homebuilding	27,502			27,297			15,130
Financial services (a)	15,616			15,798			12,436
Less: Corporate selling, general and administrative expenses	(32,189		)	(29,524		)	(24,709		)
Total operating income (b)	$	82,754		$	58,693		$	28,830
Interest expense:
Midwest homebuilding	$	3,001		$	4,923		$	5,502
Southern homebuilding	5,445			6,142			3,742
Mid-Atlantic homebuilding	3,480			3,491			5,406
Financial services (a)	1,439			1,382			1,421
Total interest expense	$	13,365		$	15,938		$	16,071
Equity in income of unconsolidated joint ventures	$	(347	)	$	(306	)	$	—
Loss on early extinguishment of debt	—			1,726			—
Income before income taxes	$	69,736		$	41,335		$	12,759
Depreciation and amortization:
Midwest homebuilding	$	1,277		$	1,063		$	2,834
Southern homebuilding	1,584			1,230			968
Mid-Atlantic homebuilding	970			995			975
Financial services	201			138			140
Corporate	4,264			4,885			4,825
Total depreciation and amortization	$	8,296		$	8,311		$	9,742

(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 year ended December 31, 2014, 2013 and 2012, total operating income was reduced by $3.5 million, $5.8 million and $3.8 million, respectively, related to impairment charges taken during the period.

The following tables show total assets by segment at December 31, 2014 and 2013:

	December 31, 2014
(In thousands)	Midwest		Southern		Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	4,573	$	14,752	$	4,170	$	—	$	23,495
Inventory (a)	303,037		331,938		260,119		—		895,094
Investments in unconsolidated joint ventures	1,764		26,005		—		—		27,769
Other assets	7,933		16,829		7,536		232,754		265,052
Total assets	$	317,307	$	389,524	$	271,825	$	232,754	$	1,211,410

	December 31, 2013
(In thousands)	Midwest		Southern		Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	2,003	$	7,107	$	5,255	$	—	$	14,365
Inventory (a)	248,218		236,505		191,847		—		676,570
Investments in unconsolidated joint ventures	5,331		29,935		—		—		35,266
Other assets	10,571		982		11,050		361,372		383,975
Total assets	$	266,123	$	274,529	$	208,152	$	361,372	$	1,110,176

(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.