Supplemental Guarantor Information

12 Months Ended

Dec. 31, 2019

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. See Note 11 for a description of our 2028 Senior Notes issued on January 22, 2020 which have the same Guarantor Subsidiaries as our 2025 Senior Notes.

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, 2019, 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, 2019
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries			Eliminations			Consolidated
Revenue	$	—	$	2,444,967	$	55,323		$	—		$	2,500,290
Costs and expenses:
Land and housing	—		2,005,861		—			—			2,005,861
Impairment of inventory and investment in joint venture arrangements	—		5,002		—			—			5,002
General and administrative	—		119,153		28,801			—			147,954
Selling	—		154,384		—			—			154,384
Equity in income from joint venture arrangements	—		—		(311		)	—			(311		)
Interest	—		17,724		3,651			—			21,375
Total costs and expenses	—		2,302,124		32,141			—			2,334,265
Income before income taxes	—		142,843		23,182			—			166,025
Provision for income taxes	—		33,919		4,519			—			38,438
Equity in subsidiaries	127,587		—		—			(127,587		)	—
Net income	$	127,587	$	108,924	$	18,663		$	(127,587	)	$	127,587

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 related expenses	—		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

	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

CONDENSED CONSOLIDATING BALANCE SHEET
	December 31, 2019
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries		Unrestricted Subsidiaries		Eliminations			Consolidated
ASSETS:
Cash, cash equivalents and restricted cash	$	—	$	219	$	11,589	$	(5,725	)	$	6,083
Mortgage loans held for sale	—		—		155,244		—			155,244
Inventory	—		1,769,507		—		—			1,769,507
Property and equipment - net	—		21,372		746		—			22,118
Investment in joint venture arrangements	—		35,391		2,494		—			37,885
Operating lease right-of-use assets	—		15,689		2,726		—			18,415
Investment in subsidiaries	928,942		—		—		(928,942		)	—
Deferred income taxes, net of valuation allowances	—		9,631		—		—			9,631
Intercompany assets	619,204		—		—		(619,204		)	—
Goodwill	—		16,400		—		—			16,400
Other assets	1,411		56,134		12,766		—			70,311
TOTAL ASSETS	$	1,549,557	$	1,924,343	$	185,565	$	(1,553,871	)	$	2,105,594
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Accounts payable	$	—	$	130,136	$	615	$	(5,725	)	$	125,026
Customer deposits	—		34,462		—		—			34,462
Intercompany liabilities	—		618,946		258		(619,204		)	—
Operating lease liabilities	—		15,691		2,724		—			18,415
Other liabilities	—		141,015		6,922		—			147,937
Community development district obligations	—		13,531		—		—			13,531
Obligation for consolidated inventory not owned	—		7,934		—		—			7,934
Notes payable bank - homebuilding operations	—		66,000		—		—			66,000
Notes payable bank - financial services operations	—		—		136,904		—			136,904
Notes payable - other	—		5,828		—		—			5,828
Senior notes due 2021 - net	298,988		—		—		—			298,988
Senior notes due 2025 - net	247,092		—		—		—			247,092
TOTAL LIABILITIES	546,080		1,033,543		147,423		(624,929		)	1,102,117
Shareholders’ equity	1,003,477		890,800		38,142		(928,942		)	1,003,477
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,549,557	$	1,924,343	$	185,565	$	(1,553,871	)	$	2,105,594

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 tax asset	—		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 STATEMENTS OF CASH FLOWS
	Year Ended December 31, 2019
(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	$	16,630		$	36,830		$	28,801		$	(16,630	)	$	65,631
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	—			(4,264		)	(262		)	—			(4,526		)
Intercompany investing	(31,124		)	—			—			31,124			—
Investments in and advances to joint venture arrangements	—			(30,036		)	(152		)	—			(30,188		)
Proceeds from the sale of property	—			6,308			—			—			6,308
Return of capital from joint venture arrangements	—			—			812			—			812
Net cash (used in) provided by investing activities	(31,124		)	(27,992		)	398			31,124			(27,594		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from bank borrowings - homebuilding operations	—			696,500			—			—			696,500
Repayment of bank borrowings - homebuilding operations	—			(747,900		)	—			—			(747,900		)
Net repayment of bank borrowings - financial services operations	—			—			(16,264		)	—			(16,264		)
Principal repayments of notes payable - other and CDD bond obligations	—			(110		)	—			—			(110		)
Dividends paid	—			—			(16,630		)	16,630			—
Repurchase of common shares	(5,150		)	—			—			—			(5,150		)
Intercompany financing	—			37,337			(488		)	(36,849		)	—
Debt issue costs	—			—			(203		)	—			(203		)
Proceeds from exercise of stock options	19,644			—			—			—			19,644
Net cash provided by (used in) financing activities	14,494			(14,173		)	(33,585		)	(20,219		)	(53,483		)
Net decrease in cash, cash equivalents and restricted cash	—			(5,335		)	(4,386		)	(5,725		)	(15,446		)
Cash, cash equivalents and restricted cash balance at beginning of period	—			5,554			15,975			—			21,529
Cash, cash equivalents and restricted cash balance at end of period	$	—		$	219		$	11,589		$	(5,725	)	$	6,083

CONDENSED CONSOLIDATING STATEMENT 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	—			(100,960		)	—			—			(100,960		)
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
Proceeds from the sale of mortgage servicing rights							6,335						6,335
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
Repayment of bank borrowings - homebuilding operations	—			(549,200		)	—			—			(549,200		)
Net proceeds from bank borrowings - financial services operations	—			—			(15,027		)	—			(15,027		)
Principal repayments of 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		)
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
Intercompany investing	27,270			—			—			(27,270		)	—
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:
Proceeds from issuance of senior notes	—			250,000			—			—			250,000
Redemption of preferred shares	(50,420		)	—			—			—			(50,420		)
Proceeds from bank borrowings - homebuilding operations	—			398,300			—			—			398,300
Repayment of bank borrowings - homebuilding operations	—			(438,600		)	—			—			(438,600		)
Net proceeds from bank borrowings - financial services operations	—			—			15,300			—			15,300
Principal repayments of note 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