Business Segments

3 Months Ended

Mar. 31, 2017

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 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
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 the three months ended March 31, 2017 and 2016:

	Three Months Ended March 31,
(In thousands)	2017			2016
Revenue:
Midwest homebuilding	$	146,422		$	118,170
Southern homebuilding	149,365			122,694
Mid-Atlantic homebuilding	96,886			73,453
Financial services (a)	14,307			10,053
Total revenue	$	406,980		$	324,370
Operating income:
Midwest homebuilding	$	14,859		$	10,328
Southern homebuilding (b)	8,712			6,430
Mid-Atlantic homebuilding	7,253			3,884
Financial services (a)	9,230			6,275
Less: Corporate selling, general and administrative expense	(8,398		)	(7,244		)
Total operating income (b)	$	31,656		$	19,673
Interest expense:
Midwest homebuilding	$	1,377		$	1,279
Southern homebuilding	2,377			2,194
Mid-Atlantic homebuilding	916			1,408
Financial services (a)	668			384
Total interest expense	$	5,338		$	5,265
Equity in income of joint venture arrangements	(17		)	(307		)
Income before income taxes	$	26,335		$	14,715

(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 $2.2 million charge for stucco-related repair costs in certain of our Florida communities (as more fully discussed in Note 6) taken during the three months ended March 31, 2016.

The following tables show total assets by segment at March 31, 2017 and December 31, 2016:

	March 31, 2017
(In thousands)	Midwest		Southern			Mid-Atlantic		Corporate, Financial Services and Unallocated		Total
Deposits on real estate under option or contract	$	5,521	$	21,122		$	4,152	$	—	$	30,795
Inventory (a)	417,867		539,395			298,561		—		1,255,823
Investments in joint venture arrangements	3,965		12,924			7,329		—		24,218
Other assets	14,009		27,983		(b)	16,633		202,804		261,429
Total assets	$	441,362	$	601,424		$	326,675	$	202,804	$	1,572,265

	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		304,561
Total assets	$	439,705	$	552,897		$	326,629	$	229,280	$	1,548,511

(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.