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Supplemental Guarantor Information
6 Months Ended
Jun. 30, 2017
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 June 30, 2017, 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.
UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF INCOME
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2017
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
Revenue
 
$

$
444,998

$
11,868

$

$
456,866

Costs and expenses:
 
 
 
 
 
 
Land and housing
 

367,598



367,598

General and administrative
 

24,915

5,197


30,112

Selling
 

30,247



30,247

Equity in income of joint venture arrangements
 


(110
)

(110
)
Interest
 

3,169

665


3,834

Total costs and expenses
 

425,929

5,752


431,681

 
 
 
 
 
 
 
Income before income taxes
 

19,069

6,116


25,185

 
 
 
 
 
 
 
Provision for income taxes
 

6,246

1,950


8,196

 
 
 
 
 
 
 
Equity in subsidiaries
 
16,989



(16,989
)

 
 
 
 
 
 
 
Net income
 
16,989

12,823

4,166

(16,989
)
16,989

 
 
 
 
 
 
 
Preferred dividends
 
1,219




1,219

 
 
 
 
 
 
 
Net income to common shareholders
 
$
15,770

$
12,823

$
4,166

$
(16,989
)
$
15,770


 
 
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 joint venture arrangements
 


(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


UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF INCOME
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2017
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
Revenue
 
$

$
837,671

$
26,175

$

$
863,846

Costs and expenses:
 
 
 
 
 
 
Land and housing
 

687,879



687,879

General and administrative
 

47,375

10,497


57,872

Selling
 

57,530



57,530

Equity in income of joint venture arrangements
 


(127
)

(127
)
Interest
 

7,839

1,333


9,172

Total costs and expenses
 

800,623

11,703


812,326

 
 
 
 
 
 
 
Income before income taxes
 

37,048

14,472


51,520

 
 
 
 
 
 
 
Provision for income taxes
 

12,735

4,913


17,648

 
 
 
 
 
 
 
Equity in subsidiaries
 
33,872



(33,872
)

 
 
 
 
 
 
 
Net income
 
33,872

24,313

9,559

(33,872
)
33,872

 
 
 
 
 
 
 
Preferred dividends
 
2,438




2,438

 
 
 
 
 
 
 
Net income to common shareholders
 
$
31,434

$
24,313

$
9,559

$
(33,872
)
$
31,434


 
 
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 joint venture arrangements
 


(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



UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEET
 
 
 
 
 
 
 
 
 
June 30, 2017
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
ASSETS:
 
 
 
 
 
 
Cash, cash equivalents and restricted cash
 
$

$
6,095

$
23,845

$

$
29,940

Mortgage loans held for sale
 


91,986


91,986

Inventory
 

1,379,544



1,379,544

Property and equipment - net
 

21,264

991


22,255

Investment in joint venture arrangements
 

14,627

8,250


22,877

Deferred income taxes, net of valuation allowances
 

29,971

107


30,078

Investment in subsidiaries
 
694,380



(694,380
)

Intercompany assets
 
437,100



(437,100
)

Other assets
 
1,223

44,030

9,453


54,706

TOTAL ASSETS
 
$
1,132,703

$
1,495,531

$
134,632

$
(1,131,480
)
$
1,631,386

 
 
 
 
 
 

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 

 
 
 
 
 
 

LIABILITIES:
 
 
 
 
 

Accounts payable
 
$

$
112,702

$
370

$

$
113,072

Customer deposits
 

29,655



29,655

Intercompany liabilities
 

430,472

6,628

(437,100
)

Other liabilities
 

101,238

5,399


106,637

Community development district obligations
 

5,875



5,875

Obligation for consolidated inventory not owned
 

12,263



12,263

Notes payable bank - homebuilding operations
 

138,000



138,000

Notes payable bank - financial services operations
 


89,518


89,518

Notes payable - other
 

3,663



3,663

Convertible senior subordinated notes due 2017 - net
 
57,380




57,380

Convertible senior subordinated notes due 2018 - net
 
85,777




85,777

Senior notes due 2021 - net
 
296,229




296,229

TOTAL LIABILITIES
 
439,386

833,868

101,915

(437,100
)
938,069

 
 
 
 
 
 
 
SHAREHOLDERS’ EQUITY
 
693,317

661,663

32,717

(694,380
)
693,317

 
 
 
 
 
 
 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
 
$
1,132,703

$
1,495,531

$
134,632

$
(1,131,480
)
$
1,631,386



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

$
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

Deferred income taxes, net of valuation allowances
 

30,767

108


30,875

Investment in subsidiaries
 
666,008



(666,008
)

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




UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
 
 
 
 
 
 
 
Six Months Ended June 30, 2017
(In thousands)
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
OPERATING ACTIVITIES:
 
 
 
 
 
Net cash provided by (used in) operating activities
$
5,500

$
(120,894
)
$
81,574

$
(5,500
)
$
(39,320
)
 
 
 
 
 
 
INVESTING ACTIVITIES:
 
 
 
 
 
Purchase of property and equipment

(1,785
)
(87
)

(1,872
)
Intercompany investing
(7,854
)


7,854


Investments in and advances to joint venture arrangements

(2,128
)
(3,679
)

(5,807
)
Return of capital from unconsolidated joint ventures


1,078


1,078

Net proceeds from the sale of mortgage servicing rights


7,558


7,558

Net cash (used in) provided by investing activities
(7,854
)
(3,913
)
4,870

7,854

957

 
 
 
 
 
 
FINANCING ACTIVITIES:
 
 
 
 
 
Proceeds from bank borrowings - homebuilding operations

289,400



289,400

Principal repayments of bank borrowings - homebuilding operations

(191,700
)


(191,700
)
Net repayments of bank borrowings - financial services operations


(63,377
)

(63,377
)
Principal proceeds from notes payable - other and CDD bond obligations

(2,752
)


(2,752
)
Proceeds from exercise of stock options
4,792




4,792

Intercompany financing

15,027

(7,173
)
(7,854
)

Dividends paid
(2,438
)

(5,500
)
5,500

(2,438
)
Debt issue costs


(63
)

(63
)
Net cash provided by (used in) financing activities
2,354

109,975

(76,113
)
(2,354
)
33,862

 
 
 
 
 
 
Net (decrease) increase in cash, cash equivalents and restricted cash

(14,832
)
10,331


(4,501
)
Cash, cash equivalents and restricted cash balance at beginning of period

20,927

13,514


34,441

Cash, cash equivalents and restricted cash balance at end of period
$

$
6,095

$
23,845

$

$
29,940


 
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 (1)
$
4,938

$
2,523

$
38,416

$
(4,938
)
$
40,939

 
 
 
 
 
 
INVESTING ACTIVITIES:
 
 
 
 
 
Purchase of property and equipment

(10,996
)
(33
)

(11,029
)
Intercompany Investing
(2,573
)


2,573


Investments in and advances to joint venture arrangements

(3,525
)
(2,257
)

(5,782
)
Net cash (used in) provided by investing activities (1)
(2,573
)
(14,521
)
(2,290
)
2,573

(16,811
)
 
 
 
 
 
 
FINANCING ACTIVITIES:
 
 
 
 
 
Proceeds from bank borrowings - homebuilding operations

192,200



192,200

Principal repayments of bank borrowings - homebuilding operations

(166,000
)


(166,000
)
Net repayments of bank borrowings - financial services operations


(30,982
)

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

111



111

Intercompany financing

15

(5,393
)
5,378


Dividends paid
(2,438
)

(4,938
)
4,938

(2,438
)
Debt issue costs

(153
)
(40
)

(193
)
Proceeds from exercise of stock options
73




73

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

(41,353
)
10,316

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

14,175

(5,227
)
7,951

16,899

Cash, cash equivalents and restricted cash balance at beginning of period

2,896

18,156

(7,951
)
13,101

Cash, cash equivalents and restricted cash balance at end of period
$

$
17,071

$
12,929

$

$
30,000

(1)
During the fourth quarter of 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.