Business Segments Business Segments (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of Segment Reporting Information, by Segment [Table Text Block]

The following table shows, by segment: revenue, operating income and interest expense for the three months ended March 31, 2019 and 2018, as well as the Company’s income before income taxes for such periods:



	Three Months Ended March 31,
(In thousands)	2019			2018
Revenue:
Midwest homebuilding	$	200,362		$	158,620
Southern homebuilding	208,544			190,388
Mid-Atlantic homebuilding	60,420			73,823
Financial services ^(a)	11,783			15,026
Total revenue	$	481,109		$	437,857

Operating income:
Midwest homebuilding^(b)	$	16,535		$	12,217
Southern homebuilding	15,392			14,850
Mid-Atlantic homebuilding	2,202			2,592
Financial services^(a)	5,695			9,540
Less: Corporate selling, general and administrative expense	(9,432		)	(8,058		)
Total operating income^(b)	$	30,392		$	31,141

Interest expense:
Midwest homebuilding	$	2,481		$	2,066
Southern homebuilding	2,629			2,287
Mid-Atlantic homebuilding	939			756
Financial services ^(a)	743			769
Total interest expense	$	6,792		$	5,878

Equity in loss (income) from joint venture arrangements	121			(310		)
Acquisition and integration costs^(c)	—			1,700

Income before income taxes	$	23,479		$	23,873


(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 $0.4 million and $0.9 million of charges related to purchase accounting adjustments taken during the three months ended March 31, 2019 and 2018, respectively, as a result of our acquisition of Pinnacle Homes in Detroit, Michigan on March 1, 2018.


(c)	Represents costs which include, but are not limited to, legal fees and expenses, travel and communication expenses, cost of appraisals, accounting fees and expenses, and miscellaneous expenses related to our acquisition of Pinnacle Homes. As these costs are not eligible for capitalization as initial direct costs, such amounts are expensed as incurred.

The following tables show total assets by segment at March 31, 2019 and December 31, 2018:



	March 31, 2019
(In thousands)	Midwest		Southern			Mid-Atlantic		Corporate, Financial Services and Unallocated			Total
Deposits on real estate under option or contract	$	5,306	$	22,467		$	5,613	$	—		$	33,386
Inventory ^(a)	693,483		764,217			239,702		—			1,697,402
Investments in joint venture arrangements	1,649		14,426			24,661		—			40,736
Other assets^(d)	38,146		49,323		^(b)	14,340		198,445		^(c)	300,254
Total assets	$	738,584	$	850,433		$	284,316	$	198,445		$	2,071,778



	December 31, 2018
(In thousands)	Midwest		Southern			Mid-Atlantic		Corporate, Financial Services and Unallocated			Total
Deposits on real estate under option or contract	$	5,725	$	21,758		$	6,179	$	—		$	33,662
Inventory ^(a)	696,057		717,248			227,493		—			1,640,798
Investments in joint venture arrangements	1,562		14,263			20,045		—			35,870
Other assets	19,524		32,161		^(b)	10,925		248,641		^(c)	311,251
Total assets	$	722,868	$	785,430		$	264,642	$	248,641		$	2,021,581


(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)	Includes asset held for sale for $5.6 million.


(d)	Includes $20.6 million of operating lease right-of-use assets recorded as a result of the adoption of ASU 2016-02 on January 1, 2019. See Note 1 and Note 15 for further information.