XML 29 R17.htm IDEA: XBRL DOCUMENT v3.5.0.2
Supplemental Guarantor Information
6 Months Ended
Jun. 30, 2016
Supplemental Guarantor Information [Abstract]  
Condensed Financial Information of Parent Company Only Disclosure [Text Block]
Supplemental Guarantor Information
The Company’s obligations under the 2021 Senior Notes, the 2017 Convertible Senior Subordinated Notes and the 2018 Convertible Senior Subordinated Notes are not guaranteed by all of the Company’s subsidiaries and therefore, the Company has disclosed condensed consolidating financial information in accordance with SEC Regulation S-X Rule 3-10, Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered. The subsidiary guarantors of the 2021 Senior Notes, the 2017 Convertible Senior Subordinated Notes and the 2018 Convertible Senior Subordinated Notes are the same.
The following condensed consolidating financial information includes balance sheets, statements of income and cash flow information for M/I Homes, Inc. (the parent company and the issuer of the aforementioned guaranteed notes), the Guarantor Subsidiaries, collectively, and for all other subsidiaries and joint ventures of the Company (the “Unrestricted Subsidiaries”), collectively. Each Guarantor Subsidiary is a direct or indirect 100%-owned subsidiary of M/I Homes, Inc. and has fully and unconditionally guaranteed the (a) 2021 Senior Notes on a joint and several senior unsecured basis, (b) 2017 Convertible Senior Subordinated Notes on a joint and several senior subordinated unsecured basis and (c) 2018 Convertible Senior Subordinated Notes on a joint and several senior subordinated unsecured basis.
There are no significant restrictions on the parent company’s ability to obtain funds from its Guarantor Subsidiaries in the form of a dividend, loan, or other means.
As of June 30, 2016, each of the Company’s subsidiaries is a Guarantor Subsidiary, with the exception of subsidiaries that are primarily engaged in the business of mortgage financing, title insurance or similar financial businesses relating to the homebuilding and home sales business, certain subsidiaries that are not 100%-owned by the Company or another subsidiary, and other subsidiaries designated by the Company as Unrestricted Subsidiaries, subject to limitations on the aggregate amount invested in such Unrestricted Subsidiaries in accordance with the terms of the Credit Facility and the indenture governing the 2021 Senior Notes.
In the condensed financial tables presented below, the parent company presents all of its 100%-owned subsidiaries as if they were accounted for under the equity method. All applicable corporate expenses have been allocated appropriately among the Guarantor Subsidiaries and Unrestricted Subsidiaries.

CONDENSED CONSOLIDATING STATEMENTS OF INCOME
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2016
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
Revenue
 
$
—

$
391,297

$
9,950

$
—

$
401,247

Costs and expenses:
 
 
 
 
 
 
Land and housing
 
—

319,708

—

—

319,708

General and administrative
 
—

22,085

4,745

—

26,830

Selling
 
—

25,533

—

—

25,533

Equity in income of unconsolidated joint ventures
 
—

—

(82
)
—

(82
)
Interest
 
—

3,798

510

—

4,308

Total costs and expenses
 
—

371,124

5,173

—

376,297

 
 
 
 
 
 
 
Income before income taxes
 
—

20,173

4,777

—

24,950

 
 
 
 
 
 
 
Provision for income taxes
 
—

7,442

1,592

—

9,034

 
 
 
 
 
 
 
Equity in subsidiaries
 
15,916

—

—

(15,916
)
—

 
 
 
 
 
 
 
Net income
 
15,916

12,731

3,185

(15,916
)
15,916

 
 
 
 
 
 
 
Preferred dividends
 
1,219

—

—

—

1,219

 
 
 
 
 
 
 
Net income to common shareholders
 
$
14,697

$
12,731

$
3,185

$
(15,916
)
$
14,697


 
 
Three Months Ended June 30, 2015
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
Revenue
 
$
—

$
313,921

$
8,935

$
—

$
322,856

Costs and expenses:
 
 
 
 
 
 
Land and housing
 
—

252,595

—

—

252,595

General and administrative
 
—

17,868

3,837

—

21,705

Selling
 
—

22,935

—

—

22,935

Equity in income of unconsolidated joint ventures
 
—

—

(14
)
—

(14
)
Interest
 
—

3,355

395

—

3,750

Total costs and expenses
 
—

296,753

4,218

—

300,971

 
 
 
 
 
 
 
Income before income taxes
 
—

17,168

4,717

—

21,885

 
 
 
 
 
 
 
Provision for income taxes
 
—

6,767

1,768

—

8,535

 
 
 
 
 
 
 
Equity in subsidiaries
 
13,350

—

—

(13,350
)
—

 
 
 
 
 
 
 
Net income
 
13,350

10,401

2,949

(13,350
)
13,350

 
 
 
 
 
 
 
Preferred dividends
 
1,219

—

—

—

1,219

 
 
 
 
 
 
 
Net income to common shareholders
 
$
12,131

$
10,401

$
2,949

$
(13,350
)
$
12,131

 
 
Six Months Ended June 30, 2016
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
Revenue
 
$
—

$
705,614

$
20,003

$
—

$
725,617

Costs and expenses:
 
 
 
 
 
 
Land and housing
 
—

579,880

—

—

579,880

General and administrative
 
—

40,387

8,702

—

49,089

Selling
 
—

47,799

—

—

47,799

Equity in income of unconsolidated joint ventures
 
—

—

(389
)
—

(389
)
Interest
 
—

8,679

894

—

9,573

Total costs and expenses
 
—

676,745

9,207

—

685,952

 
 
 
 
 
 
 
Income before income taxes
 
—

28,869

10,796

—

39,665

 
 
 
 
 
 
 
Provision for income taxes
 
—

10,886

3,674

—

14,560

 
 
 
 
 
 
 
Equity in subsidiaries
 
25,105

—

—

(25,105
)
—

 
 
 
 
 
 
 
Net income
 
25,105

17,983

7,122

(25,105
)
25,105

 
 
 
 
 
 
 
Preferred dividends
 
2,438

—

—

—

2,438

 
 
 
 
 
 
 
Net income to common shareholders
 
$
22,667

$
17,983

$
7,122

$
(25,105
)
$
22,667


 
 
Six Months Ended June 30, 2015
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
Revenue
 
$
—

$
568,983

$
17,032

$
—

$
586,015

Costs and expenses:
 
 
 
 
 
 
Land and housing
 
—

458,778

—

—

458,778

General and administrative
 
—

34,254

6,785

—

41,039

Selling
 
—

40,621

—

—

40,621

Equity in income of unconsolidated joint ventures
 
—

—

(212
)
—

(212
)
Interest
 
—

7,486

726

—

8,212

Total costs and expenses
 
—

541,139

7,299

—

548,438

 
 
 
 
 
 
 
Income before income taxes
 
—

27,844

9,733

—

37,577

 
 
 
 
 
 
 
Provision for income taxes
 
—

11,159

3,500

—

14,659

 
 
 
 
 
 
 
Equity in subsidiaries
 
22,918

—

—

(22,918
)
—

 
 
 
 
 
 
 
Net income
 
22,918

16,685

6,233

(22,918
)
22,918

 
 
 
 
 
 
 
Preferred dividends
 
2,438

—

—

—

2,438

 
 
 
 
 
 
 
Net income to common shareholders
 
$
20,480

$
16,685

$
6,233

$
(22,918
)
$
20,480



CONDENSED CONSOLIDATING BALANCE SHEET
 
 
 
 
 
 
 
 
 
June 30, 2016
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
ASSETS:
 
 
 
 
 
 
Cash and cash equivalents
 
$
—

$
14,743

$
12,929

$
—

$
27,672

Restricted cash
 
—

2,328

—

—

2,328

Mortgage loans held for sale
 
—

—

100,379

—

100,379

Inventory
 
—

1,170,325

—

—

1,170,325

Property and equipment - net
 
—

21,550

604

—

22,154

Investment in unconsolidated joint ventures
 
—

10,384

17,776

—

28,160

Deferred income taxes, net of valuation allowances
 
—

46,949

74

—

47,023

Investment in subsidiaries
 
641,219

—

—

(641,219
)
—

Intercompany assets
 
414,134

—

—

(414,134
)
—

Other assets
 
2,159

41,150

11,804

—

55,113

TOTAL ASSETS
 
$
1,057,512

$
1,307,429

$
143,566

$
(1,055,353
)
$
1,453,154

 
 
 
 
 
 

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 

 
 
 
 
 
 

LIABILITIES:
 
 
 
 
 

Accounts payable
 
$
—

$
105,342

$
327

$
—

$
105,669

Customer deposits
 
—

27,415

—

—

27,415

Intercompany liabilities
 
—

397,979

16,155

(414,134
)
—

Other liabilities
 
—

79,468

5,981

—

85,449

Community development district obligations
 
—

722

—

—

722

Obligation for consolidated inventory not owned
 
—

5,169

—

—

5,169

Notes payable bank - homebuilding operations
 
—

70,000

—

—

70,000

Notes payable bank - financial services operations
 
—

—

92,666

—

92,666

Notes payable - other
 
—

8,552

—

—

8,552

Convertible senior subordinated notes due 2017 - net
 
56,806

—

—

—

56,806

Convertible senior subordinated notes due 2018 - net
 
85,069

—

—

—

85,069

Senior notes due 2021 - net
 
295,125

—

—

—

295,125

TOTAL LIABILITIES
 
437,000

694,647

115,129

(414,134
)
832,642

 
 
 
 
 
 
 
SHAREHOLDERS’ EQUITY
 
620,512

612,782

28,437

(641,219
)
620,512

 
 
 
 
 
 
 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
 
$
1,057,512

$
1,307,429

$
143,566

$
(1,055,353
)
$
1,453,154


CONDENSED CONSOLIDATING BALANCE SHEET
 
 
 
 
 
 
 
 
 
December 31, 2015
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
ASSETS:
 
 
 
 
 
 
Cash and cash equivalents
 
$
—

$
—

$
18,156

$
(7,951
)
$
10,205

Restricted cash
 
—

2,896

—

—

2,896

Mortgage loans held for sale
 
—

—

127,001

—

127,001

Inventory
 
—

1,112,042

—

—

1,112,042

Property and equipment - net
 
—

12,222

675

—

12,897

Investment in unconsolidated joint ventures
 
—

17,425

19,542

—

36,967

Deferred income taxes, net of valuation allowances
 
—

67,255

149

—

67,404

Investment in subsidiaries
 
621,052

—

—

(621,052
)
—

Intercompany assets
 
408,847

—

—

(408,847
)
—

Other assets
 
2,626

32,335

11,181

—

46,142

TOTAL ASSETS
 
$
1,032,525

$
1,244,175

$
176,704

$
(1,037,850
)
$
1,415,554

 
 
 
 
 
 

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 

 
 
 
 
 
 

LIABILITIES:
 
 
 
 
 

Accounts payable
 
$
—

$
94,554

$
275

$
(7,951
)
$
86,878

Customer deposits
 
—

19,567

—

—

19,567

Intercompany liabilities
 
—

387,439

21,408

(408,847
)
—

Other liabilities
 
—

88,550

5,120

—

93,670

Community development district obligations
 
—

1,018

—

—

1,018

Obligation for consolidated inventory not owned
 
—

6,007

—

—

6,007

Notes payable bank - homebuilding operations
 
—

43,800

—

—

43,800

Notes payable bank - financial services operations
 
—

—

123,648

—

123,648

Notes payable - other
 
—

8,441

—

—

8,441

Convertible senior subordinated notes due 2017 - net
 
56,518

—

—

—

56,518

Convertible senior subordinated notes due 2018 - net
 
84,714

—

—

—

84,714

Senior notes due 2021 - net
 
294,727

—

—

—

294,727

TOTAL LIABILITIES
 
435,959

649,376

150,451

(416,798
)
818,988

 
 
 
 
 
 
 
SHAREHOLDERS’ EQUITY
 
596,566

594,799

26,253

(621,052
)
596,566

 
 
 
 
 
 
 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
 
$
1,032,525

$
1,244,175

$
176,704

$
(1,037,850
)
$
1,415,554



CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
 
 
 
 
 
 
 
Six Months Ended June 30, 2016
(In thousands)
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
OPERATING ACTIVITIES:
 
 
 
 
 
Net cash provided by (used in) operating activities
$
4,938

$
2,056

$
38,416

$
(4,938
)
$
40,472

 
 
 
 
 
 
INVESTING ACTIVITIES:
 
 
 
 
 
Restricted cash
—

1,035

—

—

1,035

Purchase of property and equipment
—

(10,996
)
(33
)
—

(11,029
)
Intercompany investing
(2,573
)
—

—

2,573

—

Investments in and advances to unconsolidated joint ventures
—

(3,525
)
(2,257
)
—

(5,782
)
Net cash (used in) provided by investing activities
(2,573
)
(13,486
)
(2,290
)
2,573

(15,776
)
 
 
 
 
 
 
FINANCING ACTIVITIES:
 
 
 
 
 
Proceeds from bank borrowings - homebuilding operations
—

192,200

—

—

192,200

Principal repayments of bank borrowings - homebuilding operations
—

(166,000
)
—

—

(166,000
)
Net proceeds from bank borrowings - financial services operations
—

—

(30,982
)
—

(30,982
)
Principal proceeds from notes payable - other and CDD bond obligations
—

111

—

—

111

Proceeds from exercise of stock options
73

—

—

—

73

Intercompany financing
—

15

(5,393
)
5,378

—

Dividends paid
(2,438
)
—

(4,938
)
4,938

(2,438
)
Debt issue costs
—

(153
)
(40
)
—

(193
)
Net cash (used in) provided by financing activities
(2,365
)
26,173

(41,353
)
10,316

(7,229
)
 
 
 
 
 
 
Net increase (decrease) in cash and cash equivalents
—

14,743

(5,227
)
7,951

17,467

Cash and cash equivalents balance at beginning of period
—

—

18,156

(7,951
)
10,205

Cash and cash equivalents balance at end of period
$
—

$
14,743

$
12,929

$
—

$
27,672


 
Six Months Ended June 30, 2015
(In thousands)
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
OPERATING ACTIVITIES:
 
 
 
 
 
Net cash provided by (used in) operating activities
$
2,000

$
(65,777
)
$
19,567

$
(2,000
)
$
(46,210
)
 
 
 
 
 
 
INVESTING ACTIVITIES:
 
 
 
 
 
Restricted cash
—

1,583

—

—

1,583

Purchase of property and equipment
—

(1,337
)
(64
)
—

(1,401
)
Intercompany Investing
98

—

—

(98
)
—

Investments in and advances to unconsolidated joint ventures
—

(2,555
)
(1,655
)
—

(4,210
)
Net cash provided by (used in) investing activities
98

(2,309
)
(1,719
)
(98
)
(4,028
)
 
 
 
 
 
 
FINANCING ACTIVITIES:
 
 
 
 
 
Proceeds from bank borrowings - homebuilding operations
—

220,700

—

—

220,700

Principal repayments of bank borrowings - homebuilding operations
—

(145,100
)
—

—

(145,100
)
Net repayments of bank borrowings - financial services operations
—

—

(15,698
)
—

(15,698
)
Principal repayments of notes payable - other and CDD bond obligations
—

(1,288
)
—

—

(1,288
)
Proceeds from exercise of stock options
340

—

—

—

340

Intercompany financing
—

(888
)
790

98

—

Dividends paid
(2,438
)
—

(2,000
)
2,000

(2,438
)
Debt issue costs
—

—

(40
)
—

(40
)
Net cash (used in) provided by financing activities
(2,098
)
73,424

(16,948
)
2,098

56,476

 
 
 
 
 
 
Net increase in cash and cash equivalents
—

5,338

900

—

6,238

Cash and cash equivalents balance at beginning of period
—

3,872

11,663

—

15,535

Cash and cash equivalents balance at end of period
$
—

$
9,210

$
12,563

$
—

$
21,773