Quarterly report pursuant to Section 13 or 15(d)

Operating and Reporting Segments

v2.4.0.6
Operating and Reporting Segments
 6 Months Ended
Jun. 30, 2012
Operating and Reporting Segments [Abstract]  
OPERATING AND REPORTING SEGMENTS

NOTE 12 — 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 service. We aggregate our operating segments into reporting segments based on similar long-term economic characteristics and geographical proximity. Our reporting 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 revenue 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, “Organization and Basis of Presentation,” to the consolidated financial statements in our 2011 Annual Report on Form 10-K. Operating results for each segment may not be indicative of the results for such segment had it been an independent, stand-alone entity. The following is our segment information (in thousands):

 

                                 
    Three Months Ended
June 30, 		    Six Months Ended
June 30, 		 
    2012     2011     2012     2011  

Revenue (1):

                                

West

   $ 52,614     $ 31,210     $ 87,116     $ 55,360  

Central

     184,148       169,182       316,326       301,688  

East

     45,333       19,739       83,003       40,672  
   

 

 

    

 

 

    

 

 

    

 

 

  

Consolidated total

     282,095       220,131       486,445       397,720  
   

 

 

    

 

 

    

 

 

    

 

 

  

Operating income/(loss) (2):

                                

West

     1,770       537       1,956       (447 ) 

Central

     11,976       7,849       15,347       12,075  

East

     3,271       2,004       6,077       4,241  
   

 

 

    

 

 

    

 

 

    

 

 

  

Segment operating income

     17,017       10,390       23,380       15,869  

Corporate and unallocated (3)

     (5,085 )      (4,646 )      (9,910 )      (10,177 ) 

Earnings from unconsolidated entities, net

     2,228       1,226       3,651       2,134  

Interest expense

     (6,338 )      (7,496 )      (13,709 )      (15,519 ) 

Other income, net

     792       1,273       628       1,996  

Loss on extinguishment of debt

     (5,772 )      0       (5,772 )      0  
   

 

 

    

 

 

    

 

 

    

 

 

  

Income/(loss) before income taxes

   $ 2,842     $ 747     $ (1,732 )    $ (5,697 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) Revenue includes the following land closing revenue, by segment: three months ended June 30, 2012—$755,000 in the Central Region; six months ended June 30, 2012—$1.1 million in the Central Region; six months ended June 30, 2011—$100,000 in the Central Region.
(2) See Note 2 of this Quarterly Report on Form 10-Q for a breakout of real estate-related impairments by region.
(3) Balance consists primarily of corporate costs and numerous shared service functions such as finance and treasury that are not allocated to the reporting segments.

 

 

                                         
    At June 30, 2012  
    West     Central     East     Corporate and
Unallocated (1)		     Total  

Deposits on real estate under option or contract

   $ 3,241     $ 10,663     $ 855     $ 0     $ 14,759  

Real estate

     219,499       627,887       107,847       0       955,233  

Investments in unconsolidated entities

     176       11,204       12       788       12,180  

Other assets

     17,131       105,168       13,389       125,978       261,666  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total assets

   $ 240,047     $ 754,922     $ 122,103     $ 126,766     $ 1,243,838  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

                                         
    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  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

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