Business Segments

3 Months Ended

Mar. 31, 2016

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 as each homebuilding division engages in business activities from which it earns revenue, primarily from the sale and construction of single-family attached and detached homes, acquisition and development of land, and the occasional sale of lots to third parties. Our financial services operations generate revenue primarily from the origination, sale and servicing of mortgage loans and title services primarily for purchasers of the Company’s homes and are included in our financial services reportable segment. In accordance with the aggregation criteria defined in ASC 280, 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 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

In April 2016, we announced our entry into the Sarasota, Florida market.

The following table shows, by segment: revenue, operating income and interest expense for the three months ended March 31, 2016 and 2015:

	Three Months Ended March 31,
(In thousands)	2016			2015
Revenue:
Midwest homebuilding	$	118,170		$	85,217
Southern homebuilding	122,694			98,555
Mid-Atlantic homebuilding	73,453			71,289
Financial services (a)	10,053			8,098
Total revenue	$	324,370		$	263,159
Operating income:
Midwest homebuilding	$	10,328		$	7,796
Southern homebuilding	6,430			8,591
Mid-Atlantic homebuilding	3,884			4,760
Financial services (a)	6,275			5,324
Less: Corporate selling, general and administrative expense	(7,244		)	(6,515		)
Total operating income	$	19,673		$	19,956
Interest expense:
Midwest homebuilding	$	1,279		$	1,324
Southern homebuilding	2,194			1,774
Mid-Atlantic homebuilding	1,408			1,033
Financial services (a)	384			331
Total interest expense	$	5,265		$	4,462
Equity in income of unconsolidated joint ventures	(307		)	(198		)
Income before income taxes	$	14,715		$	15,692

(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.

The following tables show total assets by segment at March 31, 2016 and December 31, 2015:

	March 31, 2016
(In thousands)	Midwest		Southern		Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	3,678	$	21,351	$	4,311	$	—	$	29,340
Inventory (a)	362,554		445,815		315,828		—		1,124,197
Investments in unconsolidated joint ventures	6,451		19,242		—		—		25,693
Other assets (b)	14,548		31,577		9,991		201,366		257,482
Total assets	$	387,231	$	517,985	$	330,130	$	201,366	$	1,436,712

	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

(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) During the three months ended March 31, 2016, the Company purchased an airplane for $9.9 million. The asset is included in the table above in Corporate, Financial Services, and Unallocated Other Assets, and within Property and Equipment - Net in our Unaudited Condensed Consolidated Balance Sheets.