Annual report pursuant to Section 13 and 15(d)

Operating and Reporting Segments

v2.4.0.6
Operating and Reporting Segments
 12 Months Ended
Dec. 31, 2011
Operating and Reporting Segments [Abstract]  
OPERATING AND REPORTING SEGMENTS

NOTE 11 — OPERATING AND REPORTING SEGMENTS

As defined in ASC 280-10, Segment Reporting, we have seven operating segments (the seven states in which we operate). These segments are engaged in the business of acquiring and developing land, constructing homes, marketing and selling those homes and providing warranty and customer services. We aggregate our operating segments into a reporting segment based on similar long-term economic characteristics and geographical proximity. Our reportable homebuilding segments are as follows:

West:       California and Nevada

Central:  Texas, Arizona and Colorado

East:       Florida and North Carolina

Management’s evaluation of segment performance is based on segment operating income/(loss), which we define as homebuilding and land revenues less cost of home construction, commissions and other sales costs, land development and other land sales costs and other costs incurred by or allocated to each segment, including impairments. Each reportable segment follows the same accounting policies described in Note 1, “Business and Summary of Significant Accounting Policies.” Operating results for each segment may not be indicative of the results for such segment had it been an independent, stand-alone entity for the periods presented. The following segment information is in thousands:

 

      September 30,       September 30,       September 30,  
    Year Ended December 31,  
    2011     2010     2009  

Revenue (1):

                        

West

   $ 132,912     $ 163,200     $ 146,151  

Central

     628,991       693,984       771,822  

East

     99,341       84,472       52,340  
   

 

 

    

 

 

    

 

 

  

Consolidated total

     861,244       941,656       970,313  
       

Operating income/(loss) (2):

                        

West

     (8,612 )      9,479       (35,713 ) 

Central

     24,691       33,133       (61,924 ) 

East

     6,858       8,924       (12,971 ) 
   

 

 

    

 

 

    

 

 

  

Segment operating income/(loss)

     22,937       51,536       (110,608 ) 

Corporate and unallocated costs (3)

     (20,925 )      (20,422 )      (23,485 ) 

Earnings from unconsolidated entities, net

     5,849       5,243       4,013  

Interest expense

     (30,399 )      (33,722 )      (36,531 ) 

(Loss)/gain on extinguishment of debt, net of transaction costs

     0       (3,454 )      9,390  

Other income, net

     2,162       3,303       2,422  
   

 

 

    

 

 

    

 

 

  
       

Net(loss)/income before income taxes

   $ (20,376 )    $ 2,484     $ (154,799 ) 
   

 

 

    

 

 

    

 

 

  

 

(1) Revenue includes the following land closing revenue, by segment: 2011 – $360,000 in the Central Region; 2010 – $1.3 million in the Central Region; 2009 – $2.9 million in the West Region and $4.6 million in the Central Region.

 

(2) See Note 2 to these consolidated financial statements for breakout of real estate-related impairment by Region.

 

(3) Balance consists primarily of corporate costs and numerous shared service functions that are not allocated to the reporting segments.

 

 

      September 30,       September 30,       September 30,       September 30,       September 30,  
    At December 31, 2011  
    West     Central     East     Corporate and
Unallocated  (1) 		    Total  

Deposits on real estate under option or contract

   $ 3,216     $ 11,158     $ 834     $ 0     $ 15,208  

Real estate

     207,656       529,885       77,884       0       815,425  

Investments in unconsolidated entities

     176       10,245       14       653       11,088  

Other assets

     8,911       90,532       8,842       271,372       379,657  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total assets

   $ 219,959     $ 641,820     $ 87,574     $ 272,025     $ 1,221,378  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

      September 30,       September 30,       September 30,       September 30,       September 30,  
    At December 31, 2010  
    West     Central     East     Corporate and
Unallocated  (1) 		    Total  

Deposits on real estate under option or contract

   $ 50     $ 9,754     $ 555     $ 0     $ 10,359  

Real estate

     191,882       499,176       47,870       0       738,928  

Investments in unconsolidated entities

     110       10,507       29       341       10,987  

Other assets

     3,501       32,961       7,873       420,329       464,664  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total assets

   $ 195,543     $ 552,398     $ 56,327     $ 420,670     $ 1,224,938  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) Balance consists primarily of cash and other corporate assets not allocated to the reporting segments.