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Supplemental Guarantor Information
12 Months Ended
Dec. 31, 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 Guarantor Subsidiaries 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 December 31, 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
 
 
 
 
 
Year Ended December 31, 2016
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
Revenue
 
$

$
1,649,316

$
42,011

$

$
1,691,327

Costs and expenses:
 
 
 
 
 
 
Land and housing
 

1,358,183



1,358,183

Impairment of inventory and investment in joint venture arrangements
 

3,992



3,992

General and administrative
 

92,135

19,465


111,600

Selling
 

108,809



108,809

Equity in income of joint venture arrangements
 


(640
)

(640
)
Interest
 

15,486

2,112


17,598

Total costs and expenses
 

1,578,605

20,937


1,599,542

 
 
 
 
 
 
 
Income before income taxes
 

70,711

21,074


91,785

 
 
 
 
 
 
 
Provision for income taxes
 

28,161

7,015


35,176

 
 
 
 
 
 
 
Equity in subsidiaries
 
56,609



(56,609
)

 
 
 
 
 
 
 
Net income
 
$
56,609

$
42,550

$
14,059

$
(56,609
)
$
56,609

 
 
 
 
 
 
 
Preferred dividends
 
4,875




4,875

 
 
 
 
 
 
 
Net income to common shareholders
 
$
51,734

$
42,550

$
14,059

$
(56,609
)
$
51,734















CONDENSED CONSOLIDATING STATEMENTS OF INCOME
 
 
 
 
 
Year Ended December 31, 2015
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
Revenue
 
$

$
1,382,420

$
35,975

$

$
1,418,395

Costs and expenses:
 
 
 
 
 
 
Land and housing
 

1,114,663



1,114,663

Impairment of inventory and investment in joint venture arrangements
 

3,638



3,638

General and administrative
 

77,662

15,546


93,208

Selling
 

95,092



95,092

Equity in income of joint venture arrangements
 


(498
)

(498
)
Interest
 

15,905

1,616


17,521

Loss on early extinguishment of debt
 

7,842



7,842

Total costs and expenses
 

1,314,802

16,664


1,331,466

 
 
 
 
 
 
 
Income before income taxes
 

67,618

19,311


86,929

 
 
 
 
 
 
 
Provision for income taxes
 

28,758

6,408


35,166

 
 
 
 
 
 
 
Equity in subsidiaries
 
51,763



(51,763
)

 
 
 
 
 
 
 
Net income
 
$
51,763

$
38,860

$
12,903

$
(51,763
)
$
51,763

 
 
 
 
 
 
 
Preferred dividends
 
4,875




4,875

 
 
 
 
 
 
 
Net income to common shareholders
 
$
46,888

$
38,860

$
12,903

$
(51,763
)
$
46,888


 
 
Year Ended December 31, 2014
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
Revenue
 
$

$
1,185,058

$
30,122

$

$
1,215,180

Costs and expenses:
 
 
 
 
 
 
Land and housing
 

958,991



958,991

Impairment of inventory and investment in joint venture arrangements
 

3,457



3,457

General and administrative
 

73,747

15,083


88,830

Selling
 

81,148



81,148

Equity in income of joint venture arrangements
 


(347
)

(347
)
Interest
 

11,926

1,439


13,365

Total costs and expenses
 

1,129,269

16,175


1,145,444

 
 
 
 
 
 
 
Income before income taxes
 

55,789

13,947


69,736

 
 
 
 
 
 
 
Provision for income taxes
 

14,341

4,606


18,947

 
 
 
 
 
 
 
Equity in subsidiaries
 
50,789



(50,789
)

 
 
 
 
 
 
 
Net income
 
$
50,789

$
41,448

$
9,341

$
(50,789
)
$
50,789

 
 
 
 
 
 
 
Preferred dividends
 
4,875




4,875

 
 
 
 
 
 
 
Net income to common shareholders
 
$
45,914

$
41,448

$
9,341

$
(50,789
)
$
45,914




CONDENSED CONSOLIDATING BALANCE SHEET
 
 
 
 
 
 
 
 
 
December 31, 2016
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
ASSETS:
 
 
 
 
 
 
Cash and cash equivalents
 
$

$
20,927

$
13,514

$

$
34,441

Mortgage loans held for sale
 


154,020


154,020

Inventory
 

1,215,934



1,215,934

Property and equipment - net
 

21,242

1,057


22,299

Investment in joint venture arrangements
 

12,537

15,479


28,016

Investment in subsidiaries
 
666,008



(666,008
)

Deferred income taxes, net of valuation allowances
 

30,767

108


30,875

Intercompany assets
 
424,669



(424,669
)

Other assets
 
1,690

43,809

17,427


62,926

TOTAL ASSETS
 
$
1,092,367

$
1,345,216

$
201,605

$
(1,090,677
)
$
1,548,511

 
 
 
 
 
 

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 

 
 
 
 
 
 

LIABILITIES:
 
 
 
 
 

Accounts payable
 
$

$
102,663

$
549

$

$
103,212

Customer deposits
 

22,156



22,156

Intercompany liabilities
 

411,196

13,473

(424,669
)

Other liabilities
 

117,133

6,029


123,162

Community development district obligations
 

476



476

Obligation for consolidated inventory not owned
 

7,528



7,528

Notes payable bank - homebuilding operations
 

40,300



40,300

Notes payable bank - financial services operations
 


152,895


152,895

Notes payable - other
 

6,415



6,415

Convertible senior subordinated notes due 2017 - net
 
57,093




57,093

Convertible senior subordinated notes due 2018 - net
 
85,423




85,423

Senior notes due 2021 - net
 
295,677




295,677

TOTAL LIABILITIES
 
438,193

707,867

172,946

(424,669
)
894,337

 
 
 
 
 
 
 
Shareholders’ equity
 
654,174

637,349

28,659

(666,008
)
654,174

 
 
 
 
 
 
 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
 
$
1,092,367

$
1,345,216

$
201,605

$
(1,090,677
)
$
1,548,511


CONDENSED CONSOLIDATING BALANCE SHEET
 
 
 
 
 
 
 
 
 
December 31, 2015
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
ASSETS:
 
 
 
 
 
 
Cash, cash equivalents and restricted cash (1)
 
$

$
2,896

$
18,156

$
(7,951
)
$
13,101

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 joint venture arrangements
 

17,425

19,542


36,967

Investment in subsidiaries
 
621,052



(621,052
)

Deferred income taxes, net of valuation allowances
 

67,255

149


67,404

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


(1)
During 2016, we elected to early-adopt Accounting Standards Update 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. Certain amounts above have been adjusted to apply the new method retrospectively.
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2016
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
 
Net cash provided by (used in) operating activities
 
$
11,653

$
42,572

$
(8,375
)
$
(11,653
)
$
34,197

 
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
Purchase of property and equipment
 

(12,505
)
(601
)

(13,106
)
Intercompany investing
 
(6,960
)


6,960


Investments in and advances to joint venture arrangements
 

(13,764
)
(7,982
)

(21,746
)
Return of capital from joint venture arrangements
 


3,207


3,207

Net cash (used in) provided by investing activities
 
(6,960
)
(26,269
)
(5,376
)
6,960

(31,645
)
 
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
Proceeds from bank borrowings - homebuilding operations
 

351,500



351,500

Principal repayments of bank borrowings - homebuilding operations
 

(355,000
)


(355,000
)
Net proceeds from bank borrowings - financial services operations
 


29,247


29,247

Principal repayments of notes payable - other and CDD bond obligations
 

(2,026
)


(2,026
)
Dividends paid
 
(4,875
)

(11,653
)
11,653

(4,875
)
Intercompany financing
 

7,407

(8,398
)
991


Debt issue costs
 

(153
)
(87
)

(240
)
Proceeds from exercise of stock options
 
182




182

Net cash (used in) provided by financing activities
 
(4,693
)
1,728

9,109

12,644

18,788

 
 
 
 
 
 
 
Net increase (decrease) in cash and cash equivalents
 

18,031

(4,642
)
7,951

21,340

Cash and cash equivalents balance at beginning of period
 

2,896

18,156

(7,951
)
13,101

Cash and cash equivalents balance at end of period
 
$

$
20,927

$
13,514

$

$
34,441

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2015
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
 
Net cash provided by (used in) operating activities (1)
 
$
7,178

$
(58,772
)
$
(23,593
)
$
(7,178
)
$
(82,365
)
 
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
Purchase of property and equipment
 

(3,156
)
(503
)

(3,659
)
Acquisition, net of cash acquired
 

(23,950
)


(23,950
)
Intercompany investing
 
(3,338
)


3,338


Investments in and advances to joint venture arrangements
 

(8,087
)
(10,075
)

(18,162
)
Return of capital from joint venture arrangements
 


1,226


1,226

Net proceeds from the sale of mortgage servicing rights
 


3,065


3,065

Net cash (used in) provided by investing activities (1)
 
(3,338
)
(35,193
)
(6,287
)
3,338

(41,480
)
 
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
Repayment of senior notes
 

(226,874
)


(226,874
)
Proceeds from issuance of senior notes
 

300,000



300,000

Proceeds from bank borrowings - homebuilding operations
 

417,300



417,300

Principal repayments of bank borrowings - homebuilding operations
 

(403,500
)


(403,500
)
Net proceeds from bank borrowings - financial services operations
 


38,269


38,269

Principal repayments of notes payable - other and CDD bond obligations
 

(1,077
)


(1,077
)
Dividends paid
 
(4,875
)

(7,178
)
7,178

(4,875
)
Intercompany financing
 

5,929

5,360

(11,289
)

Debt issue costs
 

(5,740
)
(78
)

(5,818
)
Proceeds from exercise of stock options
 
1,035




1,035

Net cash (used in) provided by financing activities
 
(3,840
)
86,038

36,373

(4,111
)
114,460

 
 
 
 
 
 
 
Net (decrease) increase in cash and cash equivalents
 

(7,927
)
6,493

(7,951
)
(9,385
)
Cash and cash equivalents balance at beginning of period
 

10,823

11,663


22,486

Cash and cash equivalents balance at end of period
 
$

$
2,896

$
18,156

$
(7,951
)
$
13,101

(1)
During 2016, we elected to early-adopt Accounting Standards Update 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. Certain amounts above have been adjusted to apply the new method retrospectively.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2014
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
 
Net cash provided by (used in) operating activities (1)
 
$
10,200

$
(143,501
)
$
10,997

$
(10,200
)
$
(132,504
)
 
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
Purchase of property and equipment
 

(2,793
)
(153
)

(2,946
)
Investments in and advances to joint venture arrangements
 

(14,435
)
(5,980
)

(20,415
)
Return of capital from joint venture arrangements
 

275

1,248


1,523

Intercompany investing
 
(7,269
)


7,269


Net proceeds from the sale of mortgage servicing rights
 


2,135


2,135

Net cash (used in) provided by investing activities (1)
 
(7,269
)
(16,953
)
(2,750
)
7,269

(19,703
)
 
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
Proceeds from bank borrowings - homebuilding operations
 

192,600



192,600

Principal repayments of bank borrowings - homebuilding operations
 

(162,600
)


(162,600
)
Net proceeds from bank borrowings - financial services operations
 


5,350


5,350

Principal proceeds from note payable - other and CDD bond obligations
 

1,728



1,728

Dividends paid
 
(4,875
)

(10,200
)
10,200

(4,875
)
Intercompany financing
 

14,244

(6,975
)
(7,269
)

Debt issue costs
 

(2,004
)
(77
)

(2,081
)
Proceeds from exercise of stock options
 
1,944




1,944

Net cash (used in) provided by financing activities
 
(2,931
)
43,968

(11,902
)
2,931

32,066

 
 
 
 
 
 
 
Net decrease in cash and cash equivalents
 

(116,486
)
(3,655
)

(120,141
)
Cash and cash equivalents balance at beginning of period
 

127,309

15,318


142,627

Cash and cash equivalents balance at end of period
 
$

$
10,823

$
11,663

$

$
22,486


(1)
During 2016, we elected to early-adopt Accounting Standards Update 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. Certain amounts above have been adjusted to apply the new method retrospectively.