Business Segments

12 Months Ended

Dec. 31, 2015

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 14 individual homebuilding operating segments and the results of our financial services operations; (2) the results of our three homebuilding reportable segments; 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
Minneapolis/St. Paul, Minnesota	Austin, Texas
	Dallas/Fort Worth, Texas

The following table shows, by segment, revenue, operating income and interest expense for 2015, 2014 and 2013, as well as the Company’s income before income taxes for such periods:

	Year Ended December 31,
(In thousands)	2015			2014			2013
Revenue:
Midwest homebuilding	$	500,873		$	426,090		$	336,242
Southern homebuilding	514,747			420,901			324,436
Mid-Atlantic homebuilding	366,800			338,067			347,565
Financial services (a)	35,975			30,122			28,539
Total revenue	$	1,418,395		$	1,215,180		$	1,036,782
Operating income:
Midwest homebuilding	$	51,436		$	37,484		$	21,469
Southern homebuilding	47,276			34,341			23,653
Mid-Atlantic homebuilding	25,144			27,502			27,297
Financial services (a)	21,032			15,616			15,798
Less: Corporate selling, general and administrative expenses	(33,094		)	(32,189		)	(29,524		)
Total operating income (b)	$	111,794		$	82,754		$	58,693
Interest expense:
Midwest homebuilding	$	4,005		$	3,001		$	4,923
Southern homebuilding	7,244			5,445			6,142
Mid-Atlantic homebuilding	4,656			3,480			3,491
Financial services (a)	1,616			1,439			1,382
Total interest expense	$	17,521		$	13,365		$	15,938
Equity in income of unconsolidated joint ventures	$	(498	)	$	(347	)	$	(306	)
Loss on early extinguishment of debt	7,842			—			1,726
Income before income taxes	$	86,929		$	69,736		$	41,335
Depreciation and amortization:
Midwest homebuilding	$	1,614		$	1,277		$	1,063
Southern homebuilding	2,069			1,584			1,230
Mid-Atlantic homebuilding	1,464			970			995
Financial services	1,213			201			138
Corporate	4,568			4,264			4,885
Total depreciation and amortization	$	10,928		$	8,296		$	8,311

(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 years ended December 31, 2015, 2014 and 2013, total operating income was reduced by $3.6 million, $3.5 million and $5.8 million, respectively, related to impairment charges taken during the period.

The following tables show total assets by segment at December 31, 2015 and 2014:

	December 31, 2015
(In thousands)	Midwest		Southern		Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	3,379	$	16,128	$	4,203	$	—	$	23,710
Inventory (a)	368,748		416,443		303,141		—		1,088,332
Investments in unconsolidated joint ventures	5,976		30,991		—		—		36,967
Other assets	10,018		23,704		7,253		225,570		266,545
Total assets	$	388,121	$	487,266	$	314,597	$	225,570	$	1,415,554

	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 (b)	7,933		16,829		7,536		226,583		258,881
Total assets	$	317,307	$	389,524	$	271,825	$	226,583	$	1,205,239

(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.

(b) Due to our election to early adopt ASU 2015-03, Corporate, Financial Services, and Unallocated Other assets for the year ended December 31, 2014 has been adjusted by $6.2 million to apply the new method retrospectively.