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Supplemental Guarantor Information
12 Months Ended
Dec. 31, 2018
Supplemental Guarantor Information [Abstract]  
Condensed Financial Information of Parent Company Only Disclosure [Text Block]
Supplemental Guarantor Information
The Company’s obligations under the 2025 Senior Notes and the 2021 Senior 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 2025 Senior Notes and the 2021 Senior 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 (1) 2025 Senior Notes, on a joint and several senior unsecured basis and (2) 2021 Senior Notes, on a joint and several senior 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, 2018, 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 2025 Senior Notes 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, 2018
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
Revenue
 
$

$
2,234,086

$
52,196

$

$
2,286,282

Costs and expenses:
 
 
 
 
 
 
Land and housing
 

1,836,704



1,836,704

Impairment of inventory and investment in joint venture arrangements
 

5,809



5,809

Acquisition and integration costs
 

1,700



1,700

General and administrative
 

112,225

25,554


137,779

Selling
 

142,829



142,829

Equity in income from joint venture arrangements
 


(312
)

(312
)
Interest
 

17,215

3,269


20,484

Total costs and expenses
 

2,116,482

28,511


2,144,993

 
 
 
 
 
 
 
Income before income taxes
 

117,604

23,685


141,289

 
 
 
 
 
 
 
Provision for income taxes
 

28,545

5,081


33,626

 
 
 
 
 
 
 
Equity in subsidiaries
 
107,663



(107,663
)

 
 
 
 
 
 
 
Net income
 
$
107,663

$
89,059

$
18,604

$
(107,663
)
$
107,663















CONDENSED CONSOLIDATING STATEMENTS OF INCOME
 
 
 
 
 
Year Ended December 31, 2017
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
Revenue
 
$

$
1,912,278

$
49,693

$

$
1,961,971

Costs and expenses:
 
 
 
 
 
 
Land and housing
 

1,561,022



1,561,022

Impairment of inventory and investment in joint venture arrangements
 

7,681



7,681

General and administrative
 

103,094

23,188


126,282

Selling
 

128,327



128,327

Equity in income from joint venture arrangements
 


(539
)

(539
)
Interest
 

16,117

2,757


18,874

Total costs and expenses
 

1,816,241

25,406


1,841,647

 
 
 
 
 
 
 
Income before income taxes
 

96,037

24,287


120,324

 
 
 
 
 
 
 
Provision for income taxes
 

40,570

7,673


48,243

 
 
 
 
 
 
 
Equity in subsidiaries
 
72,081



(72,081
)

 
 
 
 
 
 
 
Net income
 
$
72,081

$
55,467

$
16,614

$
(72,081
)
$
72,081

 
 
 
 
 
 
 
Preferred dividends
 
3,656




3,656

Excess of fair value over book value of preferred shares redeemed
 
2,257




2,257

 
 
 
 
 
 
 
Net income available to common shareholders
 
$
66,168

$
55,467

$
16,614

$
(72,081
)
$
66,168


 
 
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 from 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 available to common shareholders
 
$
51,734

$
42,550

$
14,059

$
(56,609
)
$
51,734




CONDENSED CONSOLIDATING BALANCE SHEET
 
 
 
 
 
 
 
 
 
December 31, 2018
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
ASSETS:
 
 
 
 
 
 
Cash, cash equivalents and restricted cash
 
$

$
5,554

$
15,975

$

$
21,529

Mortgage loans held for sale
 


169,651


169,651

Inventory
 

1,674,460



1,674,460

Property and equipment - net
 

28,485

910


29,395

Investment in joint venture arrangements
 

33,297

2,573


35,870

Investment in subsidiaries
 
817,986



(817,986
)

Deferred income taxes, net of valuation allowances
 

13,482



13,482

Intercompany assets
 
579,447



(579,447
)

Goodwill
 

16,400



16,400

Other assets
 
2,325

47,738

10,731


60,794

TOTAL ASSETS
 
$
1,399,758

$
1,819,416

$
199,840

$
(1,397,433
)
$
2,021,581

 
 
 
 
 
 

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 

 
 
 
 
 
 

LIABILITIES:
 
 
 
 
 

Accounts payable
 
$

$
131,089

$
422

$

$
131,511

Customer deposits
 

32,055



32,055

Intercompany liabilities
 

578,498

949

(579,447
)

Other liabilities
 

140,860

9,191


150,051

Community development district obligations
 

12,392



12,392

Obligation for consolidated inventory not owned
 

19,308



19,308

Notes payable bank - homebuilding operations
 

117,400



117,400

Notes payable bank - financial services operations
 


153,168


153,168

Notes payable - other
 

5,938



5,938

Senior notes due 2021 - net
 
297,884




297,884

Senior notes due 2025 - net
 
246,571




246,571

TOTAL LIABILITIES
 
544,455

1,037,540

163,730

(579,447
)
1,166,278

 
 
 
 
 
 
 
Shareholders’ equity
 
855,303

781,876

36,110

(817,986
)
855,303

 
 
 
 
 
 
 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
 
$
1,399,758

$
1,819,416

$
199,840

$
(1,397,433
)
$
2,021,581


CONDENSED CONSOLIDATING BALANCE SHEET
 
 
 
 
 
 
 
 
 
December 31, 2017
(In thousands)
 
M/I Homes, Inc.
Guarantor Subsidiaries
Unrestricted Subsidiaries
Eliminations
Consolidated
 
 
 
 
 
 
 
ASSETS:
 
 
 
 
 
 
Cash, cash equivalents and restricted cash
 
$

$
131,522

$
20,181

$

$
151,703

Mortgage loans held for sale
 


171,580


171,580

Inventory
 

1,414,574



1,414,574

Property and equipment - net
 

25,815

1,001


26,816

Investment in joint venture arrangements
 

13,930

6,595


20,525

Investment in subsidiaries
 
722,508



(722,508
)

Deferred income tax asset
 

18,438



18,438

Intercompany assets
 
650,599



(650,599
)

Other assets
 
3,154

48,430

9,551


61,135

TOTAL ASSETS
 
$
1,376,261

$
1,652,709

$
208,908

$
(1,373,107
)
$
1,864,771

 
 
 
 
 
 

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 

 
 
 
 
 
 

LIABILITIES:
 
 
 
 
 

Accounts payable
 
$

$
116,773

$
460

$

$
117,233

Customer deposits
 

26,378



26,378

Intercompany liabilities
 

645,048

5,551

(650,599
)

Other liabilities
 

126,522

5,012


131,534

Community development district obligations
 

13,049



13,049

Obligation for consolidated inventory not owned
 

21,545



21,545

Notes payable bank - financial services operations
 


168,195


168,195

Notes payable - other
 

10,576



10,576

Convertible senior subordinated notes due 2018 - net
 
86,132




86,132

Senior notes due 2021 - net
 
296,780




296,780

Senior notes due 2025 - net
 
246,051




246,051

TOTAL LIABILITIES
 
628,963

959,891

179,218

(650,599
)
1,117,473

 
 
 
 
 
 
 
Shareholders’ equity
 
747,298

692,818

29,690

(722,508
)
747,298

 
 
 
 
 
 
 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
 
$
1,376,261

$
1,652,709

$
208,908

$
(1,373,107
)
$
1,864,771



CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2018
(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
 
$
12,185

$
(25,882
)
$
23,290

$
(12,185
)
$
(2,592
)
 
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
Purchase of property and equipment
 

(7,896
)
(245
)

(8,141
)
Acquisition, net of cash acquired
 

(100,960
)


(100,960
)
Proceeds from the sale of mortgage servicing rights
 


6,335


6,335

Intercompany investing
 
12,986



(12,986
)

Investments in and advances to joint venture arrangements
 

(30,588
)
(1,279
)

(31,867
)
Return of capital from joint venture arrangements
 


676


676

Net cash provided by (used in) investing activities
 
12,986

(139,444
)
5,487

(12,986
)
(133,957
)
 
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
Repayment of convertible senior subordinated notes
 

(65,941
)


(65,941
)
Proceeds from bank borrowings - homebuilding operations
 

666,600



666,600

Principal repayments of bank borrowings - homebuilding operations
 

(549,200
)


(549,200
)
Net repayments of bank borrowings - financial services operations
 


(15,027
)

(15,027
)
Proceeds from notes payable - other and CDD bond obligations
 

(4,638
)


(4,638
)
Dividends paid
 


(12,185
)
12,185


Repurchase of common shares
 
(25,709
)



(25,709
)
Intercompany financing
 

(7,388
)
(5,598
)
12,986


Debt issue costs
 

(75
)
(173
)

(248
)
Proceeds from exercise of stock options
 
538




538

Net cash (used in) provided by financing activities
 
(25,171
)
39,358

(32,983
)
25,171

6,375

 
 
 
 
 
 
 
Net decrease in cash, cash equivalents and restricted cash
 

(125,968
)
(4,206
)

(130,174
)
Cash, cash equivalents and restricted cash balance at beginning of period
 

131,522

20,181


151,703

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

$
5,554

$
15,975

$

$
21,529

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2017
(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 
 
$
15,581

$
(63,922
)
$
10,738

$
(15,581
)
$
(53,184
)
 
 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
Purchase of property and equipment
 

(8,535
)
(264
)

(8,799
)
Intercompany investing
 
27,270



(27,270
)

Investments in and advances to joint venture arrangements
 

(6,117
)
(5,971
)

(12,088
)
Return of capital from joint venture arrangements
 


3,518


3,518

Proceeds from the sale of mortgage servicing rights
 


8,212


8,212

Net cash provided by (used in) investing activities
 
27,270

(14,652
)
5,495

(27,270
)
(9,157
)
 
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
Redemption of preferred shares
 
(50,420
)



(50,420
)
Proceeds from issuance of senior notes
 

250,000



250,000

Proceeds from bank borrowings - homebuilding operations
 

398,300



398,300

Principal repayments of bank borrowings - homebuilding operations
 

(438,600
)


(438,600
)
Net proceeds from bank borrowings - financial services operations
 


15,300


15,300

Principal repayments of notes payable - other and CDD bond obligations
 

4,161



4,161

Dividends paid
 
(3,656
)

(15,581
)
15,581

(3,656
)
Intercompany financing
 

(18,143
)
(9,127
)
27,270


Debt issue costs
 

(6,549
)
(158
)

(6,707
)
Proceeds from exercise of stock options
 
11,225




11,225

Net cash (used in) provided by financing activities
 
(42,851
)
189,169

(9,566
)
42,851

179,603

 
 
 
 
 
 
 
Net increase in cash, cash equivalents and restricted cash
 

110,595

6,667


117,262

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
 
$

$
131,522

$
20,181

$

$
151,703



CONDENSED CONSOLIDATING STATEMENT 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
)
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

Intercompany investing
 
(6,960
)


6,960


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 note 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, cash equivalents and restricted cash
 

18,031

(4,642
)
7,951

21,340

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
 
$

$
20,927

$
13,514

$

$
34,441