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Business Segments | 6 Months Ended
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Jun. 30, 2019
Business Segments [Abstract] |
Segment Reporting Disclosure [Text Block] | Business Segments The Company’s chief operating decision makers evaluate the Company’s performance in various ways, including: (1) the results of our 16 individual homebuilding operating segments and the results of our financial services operations; (2) the results of our homebuilding reportable segments; and (3) our consolidated financial results. In accordance with ASC 280, Segment Reporting (“ASC 280”), we have identified each homebuilding division as an operating segment and have elected to aggregate our operating segments into separate reportable segments as they share similar aggregation characteristics prescribed in ASC 280 in the following regards: (1) long-term economic characteristics; (2) historical and expected future long-term gross margin percentages; (3) housing products, production processes and methods of distribution; and (4) geographical proximity. During 2019, we decided to wind down our Washington, D.C. operations, which we expect to substantially complete by the end of 2019. As a result, during the second quarter of 2019, we re-evaluated our reportable segments and determined that none of our separate Mid-Atlantic operating segments met the reportable criteria set forth in ASC 280. Therefore, we elected to aggregate our Charlotte and Raleigh, North Carolina and Washington, D.C. operating segments into our existing Southern region based on the aggregation criteria described above. All prior year segment information has been recast to conform with the 2019 presentation. The change in the reportable segments has no effect on the Company's condensed consolidated balance sheets, statement of income or statement of cash flows for the periods presented. As a result of this re-evaluation, we have determined our reportable segments are: Northern homebuilding; Southern homebuilding; and financial services operations. The homebuilding operating segments that comprise each of our reportable segments are as follows:
Northern | Southern
Chicago, Illinois | Orlando, Florida
Cincinnati, Ohio | Sarasota, Florida
Columbus, Ohio | Tampa, Florida
Indianapolis, Indiana | Austin, Texas
Minneapolis/St. Paul, Minnesota | Dallas/Fort Worth, Texas
Detroit, Michigan | Houston, Texas
| San Antonio, Texas
| Charlotte, North Carolina
| Raleigh, North Carolina
| Washington, D.C. (a)
(a) |
During 2019, we decided to wind down our Washington, D.C. operations, which we expect to substantially complete by the end of 2019. The following table shows, by segment: revenue, operating income and interest expense for the three and six months ended June 30, 2019 and 2018, as well as the Company’s income before income taxes for such periods:
| Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands) | 2019 |  | 2018 |  | 2019 |  | 2018
Revenue: |  |  |  |  |  |  |
Northern homebuilding | $ | 252,870 |  |  | $ | 226,902 |  |  | $ | 453,232 |  |  | $ | 385,522 |
Southern homebuilding | 356,513 |  |  | 319,320 |  |  | 625,477 |  |  | 583,531 |
Financial services (a) | 14,303 |  |  | 11,876 |  |  | 26,086 |  |  | 26,902 |
Total revenue | $ | 623,686 |  |  | $ | 558,098 |  |  | $ | 1,104,795 |  |  | $ | 995,955 |
Operating income: |  |  |  |  |  |  |
Northern homebuilding (b) | $ | 24,437 |  |  | $ | 18,981 |  |  | $ | 40,972 |  |  | $ | 31,198 |
Southern homebuilding | 26,214 |  |  | 24,476 |  |  | 43,808 |  |  | 41,918 |
Financial services (a) | 7,639 |  |  | 5,938 |  |  | 13,334 |  |  | 15,478 |
Less: Corporate selling, general and administrative expense | (12,077 | ) |  | (10,890 | ) |  | (21,509 | ) |  | (18,948 | )
Total operating income (b) | $ | 46,213 |  |  | $ | 38,505 |  |  | $ | 76,605 |  |  | $ | 69,646 |
Interest expense: |  |  |  |  |  |  |
Northern homebuilding | $ | 1,374 |  |  | $ | 1,812 |  |  | $ | 3,855 |  |  | $ | 3,878 |
Southern homebuilding | 2,888 |  |  | 2,381 |  |  | 6,456 |  |  | 5,424 |
Financial services (a) | 935 |  |  | 695 |  |  | 1,678 |  |  | 1,464 |
Total interest expense | $ | 5,197 |  |  | $ | 4,888 |  |  | $ | 11,989 |  |  | $ | 10,766 |
Equity in (income) loss from joint venture arrangements | (187 | ) |  | 86 |  |  | (66 | ) |  | (224 | )
Acquisition and integration costs (c) | — |  |  | — |  |  | — |  |  | 1,700 |
Income before income taxes | $ | 41,203 |  |  | $ | 33,531 |  |  | $ | 64,682 |  |  | $ | 57,404 |
(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 $0.1 million and $3.0 million of acquisition-related charges taken during the three months ended June 30, 2019 and 2018, respectively, and $0.6 million and $3.9 million of acquisition-related charges taken during the six months ended June 30, 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 June 30, 2019 and December 31, 2018:
| June 30, 2019
(In thousands) | Northern |  | Southern |  | Corporate, Financial Services and Unallocated |  | Total
Deposits on real estate under option or contract | $ | 4,159 |  |  | $ | 28,194 |  |  | $ | — |  |  | $ | 32,353 |
Inventory (a) | 725,541 |  |  | 1,005,585 |  |  | — |  |  | 1,731,126 |
Investments in joint venture arrangements | 1,685 |  |  | 39,659 |  |  | — |  |  | 41,344 |
Other assets (d) | 25,903 |  |  | 55,393 |  | (b) | 203,087 |  | (c) | 284,383 |
Total assets | $ | 757,288 |  |  | $ | 1,128,831 |  |  | $ | 203,087 |  |  | $ | 2,089,206 |
| December 31, 2018
(In thousands) | Northern |  | Southern |  | Corporate, Financial Services and Unallocated |  | Total
Deposits on real estate under option or contract | $ | 5,725 |  |  | $ | 27,937 |  |  | $ | — |  |  | $ | 33,662 |
Inventory (a) | 696,057 |  |  | 944,741 |  |  | — |  |  | 1,640,798 |
Investments in joint venture arrangements | 1,562 |  |  | 34,308 |  |  | — |  |  | 35,870 |
Other assets | 19,524 |  |  | 43,086 |  | (b) | 248,641 |  | (c) | 311,251 |
Total assets | $ | 722,868 |  |  | $ | 1,050,072 |  |  | $ | 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 $19.4 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.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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