Business Segments

12 Months Ended

Dec. 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 15 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
Chicago, Illinois	Orlando, Florida	Charlotte, North Carolina
Cincinnati, Ohio	Sarasota, Florida	Raleigh, North Carolina
Columbus, Ohio	Tampa, Florida	Washington, D.C.
Indianapolis, Indiana	Austin, Texas
Minneapolis/St. Paul, Minnesota	Dallas/Fort Worth, Texas
	Houston, Texas
	San Antonio, Texas

The following table shows, by segment, revenue, operating income and interest expense for 2016, 2015 and 2014, as well as the Company’s income before income taxes for such periods:

	Year Ended December 31,
(In thousands)	2016			2015			2014
Revenue:
Midwest homebuilding	$	637,894		$	500,873		$	426,090
Southern homebuilding	602,273			514,747			420,901
Mid-Atlantic homebuilding	409,149			366,800			338,067
Financial services (a)	42,011			35,975			30,122
Total revenue	$	1,691,327		$	1,418,395		$	1,215,180
Operating income:
Midwest homebuilding	$	70,446		$	51,436		$	37,484
Southern homebuilding (b)	20,398			47,276			34,341
Mid-Atlantic homebuilding	33,450			25,144			27,502
Financial services (a)	23,262			21,032			15,616
Less: Corporate selling, general and administrative expenses	(38,813		)	(33,094		)	(32,189		)
Total operating income (b) (c)	$	108,743		$	111,794		$	82,754
Interest expense:
Midwest homebuilding	$	3,754		$	4,005		$	3,001
Southern homebuilding	8,039			7,244			5,445
Mid-Atlantic homebuilding	3,693			4,656			3,480
Financial services (a)	2,112			1,616			1,439
Total interest expense	$	17,598		$	17,521		$	13,365
Equity in income of joint venture arrangements	$	(640	)	$	(498	)	$	(347	)
Loss on early extinguishment of debt	—			7,842			—
Income before income taxes	$	91,785		$	86,929		$	69,736
Depreciation and amortization:
Midwest homebuilding	$	1,752		$	1,614		$	1,277
Southern homebuilding	2,525			2,069			1,584
Mid-Atlantic homebuilding	1,645			1,464			970
Financial services	1,948			1,213			201
Corporate	5,736			4,568			4,264
Total depreciation and amortization	$	13,606		$	10,928		$	8,296

(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 an immaterial amount of mortgage refinancing.

(b) Includes a $19.4 million charge for known and estimated future stucco-related repair costs in certain of our Florida communities (as more fully discussed in Note 8) taken during the year ended December 31, 2016.

(c) For the years ended December 31, 2016, 2015 and 2014, total operating income was reduced by $4.0 million, $3.6 million and $3.5 million, respectively, related to asset impairment charges taken during the period.

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

	December 31, 2016
(In thousands)	Midwest		Southern			Mid-Atlantic		Corporate, Financial Services and Unallocated			Total
Deposits on real estate under option or contract	$	3,989	$	22,607		$	3,260	$	—		$	29,856
Inventory (a)	399,814		484,038			302,226		—			1,186,078
Investments in joint venture arrangements	10,155		10,630			7,231		—			28,016
Other assets	25,747		35,622		(b)	13,912		229,280		(c)	304,561
Total assets	$	439,705	$	552,897		$	326,629	$	229,280		$	1,548,511

	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 joint venture arrangements	5,976		30,991			—		—		36,967
Other assets	10,018		23,704		(b)	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) Includes development reimbursements from local municipalities.

(c) During the first quarter of 2016, the Company purchased an airplane for $9.9 million. The asset is included within Property and Equipment - Net in our Consolidated Balance Sheets.