Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 19, 2020 | Jun. 30, 2019 | |
Entity Information [Line Items] | |||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Entity File Number | 1-12434 | ||
Entity Registrant Name | M/I HOMES, INC. | ||
Entity Incorporation, State or Country Code | OH | ||
Entity Tax Identification Number | 31-1210837 | ||
Entity Address, Address Line One | 3 Easton Oval | ||
Entity Address, Address Line Two | Suite 500 | ||
Entity Address, City or Town | Columbus | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 43219 | ||
City Area Code | 614 | ||
Local Phone Number | 418-8000 | ||
Title of 12(b) Security | Common Shares, par value $.01 | ||
Trading Symbol | MHO | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 770,600,000 | ||
Entity Common Stock, Shares Outstanding | 28,578,537 | ||
Entity Central Index Key | 0000799292 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||||||||||
Revenue | $ 742,150 | $ 653,345 | $ 623,686 | $ 481,109 | $ 722,485 | $ 567,842 | $ 558,098 | $ 437,857 | $ 2,500,290 | $ 2,286,282 | $ 1,961,971 |
Land and Housing | 2,005,861 | 1,836,704 | 1,561,022 | ||||||||
Impairment of inventory and investment in joint venture arrangements | 5,002 | 5,809 | 7,681 | ||||||||
General and administrative | 147,954 | 137,779 | 126,282 | ||||||||
Selling | 154,384 | 142,829 | 128,327 | ||||||||
Acquisition and integration costs | 0 | 1,700 | 0 | ||||||||
Equity in income from joint venture arrangements | (311) | (312) | (539) | ||||||||
Interest | 21,375 | 20,484 | 18,874 | ||||||||
Total costs and expenses | 2,334,265 | 2,144,993 | 1,841,647 | ||||||||
Income before income taxes | 166,025 | 141,289 | 120,324 | ||||||||
Provision (benefit) from income taxes | 38,438 | 33,626 | 48,243 | ||||||||
Net income | 127,587 | 107,663 | 72,081 | ||||||||
Preferred dividends | 0 | 0 | 3,656 | ||||||||
Excess of fair value over book value of preferred shares redeemed | 0 | 0 | 2,257 | ||||||||
Net Income Available to Common Stockholders | $ 41,780 | $ 37,838 | $ 30,246 | $ 17,723 | $ 32,407 | $ 29,282 | $ 27,911 | $ 18,063 | $ 127,587 | $ 107,663 | $ 66,168 |
Earnings per common share: | |||||||||||
Basic | $ 1.48 | $ 1.35 | $ 1.10 | $ 0.64 | $ 1.17 | $ 1.03 | $ 0.98 | $ 0.64 | $ 4.58 | $ 3.81 | $ 2.57 |
Diluted | $ 1.44 | $ 1.32 | $ 1.08 | $ 0.63 | $ 1.15 | $ 1.01 | $ 0.96 | $ 0.60 | $ 4.48 | $ 3.70 | $ 2.26 |
Weighted average shares outstanding: | |||||||||||
Basic | 28,297 | 27,981 | 27,599 | 27,498 | 27,774 | 28,469 | 28,571 | 28,124 | 27,846 | 28,234 | 25,769 |
Diluted | 29,049 | 28,598 | 28,090 | 27,970 | 28,181 | 28,906 | 29,101 | 30,544 | 28,475 | 29,178 | 30,688 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS: | ||
Cash, Cash Equivalents, and Restricted Cash | $ 6,083 | $ 21,529 |
Mortgage loans Held-for-sale | 155,244 | 169,651 |
Inventory | 1,769,507 | 1,674,460 |
Property and equipment - net | 22,118 | 29,395 |
Investment in joint venture arrangements | 37,885 | 35,870 |
Operating Lease, Right-of-Use Asset | 18,415 | 0 |
Deferred income tax asset | 9,631 | 13,482 |
Goodwill | 16,400 | 16,400 |
Other assets | 70,311 | 60,794 |
TOTAL ASSETS | 2,105,594 | 2,021,581 |
LIABILITIES: | ||
Accounts payable | 125,026 | 131,511 |
Customer deposits | 34,462 | 32,055 |
Operating Lease, Liability | 18,415 | 0 |
Other liabilities | 147,937 | 150,051 |
Community Development District Obligation | 13,531 | 12,392 |
Obligation for consolidated inventory not owned | 7,934 | 19,308 |
Notes payable bank - homebuilding operations | 66,000 | 117,400 |
Notes payable bank - financial services operations | 136,904 | 153,168 |
Notes payable - other | 5,828 | 5,938 |
Senior notes due 2021 - net | 298,988 | 297,884 |
Senior notes due 2025 - net | 247,092 | 246,571 |
TOTAL LIABILITIES | 1,102,117 | 1,166,278 |
Commitments and contingencies (Note 8) | 0 | 0 |
SHAREHOLDERS' EQUITY: | ||
Common shares - $.01 par value; authorized 58,000,000 shares at both December 31, 2019 and 2018; issued 30,137,141 shares at both December 31, 2019 and 2018 | 301 | 301 |
Additional paid-in capital | 332,861 | 330,517 |
Retained earnings | 708,579 | 580,992 |
Treasury shares - at cost - 1,750,685 and 2,620,923 shares at December 31, 2019 and 2018, respectively | (38,264) | (56,507) |
TOTAL SHAREHOLDERS' EQUITY | 1,003,477 | 855,303 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 2,105,594 | $ 2,021,581 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 58,000,000 | 58,000,000 |
Common Stock, Shares, Issued | 30,137,141 | 30,137,141 |
Treasury Stock, Shares | 1,750,685 | 2,620,923 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) $ in Thousands | Total | Preferred Shares [Member] | Common Shares [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Shares [Member] |
Shares Outstanding, Beginning Balance at Dec. 31, 2016 | 2,000 | 24,677,433 | ||||
Stockholders' Equity, Beginning Balance at Dec. 31, 2016 | $ 654,174 | $ 48,163 | $ 271 | $ 246,549 | $ 407,161 | $ (47,970) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 72,081 | 72,081 | ||||
Fair value over carrying value of preferred share redeemed | $ 2,257 | (2,257) | ||||
Dividends declared to preferred shareholders | (3,656) | (3,656) | ||||
Common share issuance for conversion of convertible notes - shares | 2,415,903 | |||||
Common share issuance for conversion of convertible notes - value | 57,500 | $ 24 | 57,476 | |||
Preferred shares redeemed - shares | (2,000) | |||||
Preferred shares redeemed - value | (50,420) | $ (50,420) | ||||
Stock options exercised - shares | 678,781 | |||||
Stock options exercised - value | 11,225 | (2,255) | 13,480 | |||
Stock-based compensation expense | 6,044 | 6,044 | ||||
Deferral of Executive and Director Compensation | 350 | 350 | ||||
Deferred Compensation Arrangement with Individual, Shares Issued | 0 | 84,635 | ||||
Deferred Compensation Arrangement with Individual, Distribution Paid | 0 | (1,681) | 1,681 | |||
Shares Outstanding, Ending Balance at Dec. 31, 2017 | 0 | 27,856,752 | ||||
Stockholders' Equity, Ending Balance at Dec. 31, 2017 | 747,298 | $ 0 | $ 295 | 306,483 | 473,329 | (32,809) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 107,663 | 107,663 | ||||
Common share issuance for conversion of convertible notes - shares | 0 | 628,515 | ||||
Common share issuance for conversion of convertible notes - value | 20,309 | $ 0 | $ 6 | 20,303 | 0 | 0 |
Treasury Stock, Shares, Acquired | (1,069,043) | |||||
Treasury Stock, Value, Acquired, Cost Method | (25,709) | (25,709) | ||||
Stock options exercised - shares | 38,628 | |||||
Stock options exercised - value | 538 | (254) | 792 | |||
Stock-based compensation expense | 5,974 | 5,974 | ||||
Deferral of Executive and Director Compensation | 185 | 185 | ||||
Deferred Compensation Arrangement with Individual, Shares Issued | 0 | 61,366 | ||||
Deferred Compensation Arrangement with Individual, Distribution Paid | (955) | (2,174) | 1,219 | |||
Shares Outstanding, Ending Balance at Dec. 31, 2018 | 0 | 27,516,218 | ||||
Stockholders' Equity, Ending Balance at Dec. 31, 2018 | 855,303 | $ 0 | $ 301 | 330,517 | 580,992 | (56,507) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 127,587 | 127,587 | ||||
Treasury Stock, Shares, Acquired | 200,000 | (201,088) | ||||
Treasury Stock, Value, Acquired, Cost Method | $ (5,150) | (5,150) | ||||
Stock options exercised - shares | (954,370) | 954,370 | ||||
Stock options exercised - value | $ 19,644 | (1,204) | 20,848 | |||
Stock-based compensation expense | 5,846 | 5,846 | ||||
Deferral of Executive and Director Compensation | 247 | 247 | ||||
Deferred Compensation Arrangement with Individual, Shares Issued | 0 | 116,956 | ||||
Deferred Compensation Arrangement with Individual, Distribution Paid | 0 | (2,545) | 2,545 | |||
Shares Outstanding, Ending Balance at Dec. 31, 2019 | 0 | 28,386,456 | ||||
Stockholders' Equity, Ending Balance at Dec. 31, 2019 | $ 1,003,477 | $ 0 | $ 301 | $ 332,861 | $ 708,579 | $ (38,264) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING ACTIVITIES: | |||
Net income | $ 127,587 | $ 107,663 | $ 72,081 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Impairment of inventory and abandoned land transaction write-offs | 5,002 | 5,809 | 7,681 |
Equity in income from joint venture arrangements | (311) | (312) | (539) |
Mortgage loan originations | (1,382,695) | (1,200,474) | (1,078,520) |
Net loss (gain) from property disposals | (448) | 0 | 0 |
Proceeds from the sale of mortgage loans | 1,394,841 | 1,206,167 | 1,064,635 |
Fair value adjustment of mortgage loans held for sale | 2,261 | (3,764) | (3,675) |
Capitalization of originated mortgage servicing rights | (4,684) | (4,550) | (5,005) |
Amortization of mortgage servicing rights | 1,547 | 784 | 1,069 |
Gain on sale of mortgage servicing rights | 0 | (1,224) | (654) |
Depreciation | 11,691 | 10,956 | 9,630 |
Amortization of debt discount and debt issue costs | 2,712 | 2,791 | 3,475 |
Stock-based compensation expense | 5,846 | 5,974 | 6,044 |
Deferred Income Tax Expense | 3,851 | 4,957 | 12,437 |
Change in assets and liabilities: | |||
Inventory | (88,358) | (157,573) | (168,622) |
Other assets | (2,072) | 2,044 | (186) |
Accounts payable | (6,485) | 3,750 | 14,021 |
Customer deposits | 2,407 | 1,521 | 4,222 |
Accrued compensation | 3,944 | 3,486 | 2,338 |
Other liabilities | (11,005) | 9,403 | 6,384 |
Net cash (used in) provided by operating activities | 65,631 | (2,592) | (53,184) |
INVESTING ACTIVITIES: | |||
Purchase of property and equipment | (4,526) | (8,141) | (8,799) |
Acquisition | 0 | (100,960) | 0 |
Return of Capital from Joint Venture Arrangements | 812 | 676 | 3,518 |
Investment in and advances to joint venture arrangements | (30,188) | (31,867) | (12,088) |
Proceeds from the sale of mortgage servicing rights | 0 | 6,335 | 8,212 |
Proceeds from sale of property | 6,308 | 0 | 0 |
Net cash provided by (used in) investing activities | (27,594) | (133,957) | (9,157) |
FINANCING ACTIVITIES: | |||
Proceeds from issuance of senior notes | 0 | 0 | 250,000 |
Proceeds from issuance of convertible senior subordinated notes | 0 | (65,941) | 0 |
Proceeds from bank borrowings - homebuilding operations | 696,500 | 666,600 | 398,300 |
Repayments of bank borrowings - homebuilding operations | (747,900) | (549,200) | (438,600) |
(Net repayment of) net proceeds from bank borrowings - financial services operations | (16,264) | (15,027) | 15,300 |
Proceeds from (principal repayment of) notes payable-other and community development district bond obligations | (110) | (4,638) | 4,161 |
Redemption of preferred shares | 0 | 0 | (50,420) |
Dividends paid on preferred shares | 0 | 0 | (3,656) |
Repurchase of common shares | (5,150) | (25,709) | 0 |
Debt issue costs | (203) | (248) | (6,707) |
Proceeds from exercise of stock options | 19,644 | 538 | 11,225 |
Net cash provided (used in) by financing activities | (53,483) | 6,375 | 179,603 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (15,446) | (130,174) | 117,262 |
Cash, Cash Equivalents, and Restricted Cash-Period Start | 21,529 | 151,703 | 34,441 |
Cash, Cash Equivalents, and Restricted Cash-Period End | 6,083 | 21,529 | 151,703 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Interest — net of amount capitalized | 18,962 | 17,793 | 10,168 |
Income taxes | 36,993 | 25,279 | 36,802 |
NON-CASH TRANSACTIONS DURING THE PERIOD: | |||
Community development district infrastructure | 1,139 | (657) | 12,573 |
Consolidated inventory not owned | (11,374) | (2,237) | 14,017 |
Distribution of single-family lots from unconsolidated LLC's | 27,672 | 16,158 | 16,600 |
Common stock issued for conversion of convertible notes | $ 0 | $ 20,309 | $ 57,500 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting [Text Block] | Summary of Significant Accounting Policies Business. M/I Homes, Inc. and its subsidiaries (the “Company” or “we”) is engaged primarily in the construction and sale of single-family residential homes in Columbus and Cincinnati, Ohio; Indianapolis, Indiana; Chicago, Illinois; Minneapolis/St. Paul, Minnesota; Detroit, Michigan; Tampa, Orlando and Sarasota, Florida; Austin, Dallas/Fort Worth, Houston and San Antonio, Texas; and Charlotte and Raleigh, North Carolina. The Company designs, sells and builds single-family homes on developed lots, which it develops or purchases ready for home construction. The Company also purchases undeveloped land to develop into developed lots for future construction of single-family homes and, on a limited basis, for sale to others. Our homebuilding operations operate across two geographic regions in the United States. Within these regions, our operations have similar economic characteristics; therefore, they have been aggregated into two reportable homebuilding segments: Southern homebuilding and Northern homebuilding. The Company conducts mortgage financing activities through its 100%-owned subsidiary, M/I Financial, LLC (“M/I Financial”), which originates mortgage loans primarily for purchasers of the Company’s homes. The loans and the servicing rights are generally sold to outside mortgage lenders. The Company and M/I Financial also operate 100% and majority-owned subsidiaries that provide title services to purchasers of the Company’s homes. Our mortgage banking and title service activities have similar economic characteristics; therefore, they have been aggregated into one reportable segment, the financial services segment. Basis of Presentation. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include the accounts of M/I Homes, Inc. and those of our consolidated subsidiaries, partnerships and other entities in which we have a controlling financial interest, and of variable interest entities in which we are deemed the primary beneficiary. Intercompany balances and transactions have been eliminated in consolidation. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from these estimates and have a significant impact on the financial condition and results of operations and cash flows. Reclassifications. As a result of the Company's change in reportable segments during the second quarter of 2019, the Company recast certain prior year amounts in the Consolidated Financial Statements to conform with the 2019 presentation (see Note 15 to our Consolidated Financial Statements). These reclassifications had no impact on the Company's results of operations. Cash, Cash Equivalents and Restricted Cash. Cash and cash equivalents are liquid investments with an initial maturity of three months or less. Amounts in transit from title companies for homes delivered are included in this balance at December 31, 2019 and 2018 , respectively. Restricted cash consists of amounts held in restricted accounts as collateral for letters of credit as well as cash held in escrow. Cash, Cash Equivalents and Restricted Cash includes restricted cash balances of $0.2 million and $0.7 million at December 31, 2019 and 2018 , respectively. Mortgage Loans Held for Sale. Mortgage loans held for sale consists primarily of single-family residential loans collateralized by the underlying property. Generally, all of the mortgage loans and related servicing rights are sold to third-party investors shortly after origination. Refer to the Revenue Recognition policy described below for additional discussion. Inventory. Inventory includes the costs of land acquisition, land development and home construction, capitalized interest, real estate taxes, direct overhead costs incurred during development and home construction, and common costs that benefit the entire community, less impairments, if any. Land acquisition, land development and common costs (both incurred and estimated to be incurred) are typically allocated to individual lots based on the total number of lots expected to be closed in each community or phase, or based on the relative fair value, the relative sales value or the front footage method of each lot. Any changes to the estimated total development costs of a community or phase are allocated proportionately to homes remaining in the community or phase and homes previously closed. The cost of individual lots is transferred to homes under construction when home construction begins. Home construction costs are accumulated on a specific identification basis. Costs of home deliveries include the specific construction cost of the home and the allocated lot costs. Such costs are charged to cost of sales simultaneously with revenue recognition, as discussed above. When a home is closed, we typically have not yet paid all incurred costs necessary to complete the home. As homes close, we compare the home construction budget to actual recorded costs to date to estimate the additional costs to be incurred from our subcontractors related to the home. We record a liability and a corresponding charge to cost of sales for the amount we estimate will ultimately be paid related to that home. We monitor the accuracy of such estimates by comparing actual costs incurred in subsequent months to the estimate, although actual costs to complete a home in the future could differ from our estimates. Inventory is recorded at cost, unless events and circumstances indicate that the carrying value of the inventory is impaired, at which point the inventory is written down to fair value as required by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360-10, Property, Plant and Equipment (“ASC 360”). The Company assesses inventory for recoverability on a quarterly basis to determine if events or changes in local or national economic conditions indicate that the carrying amount of an asset may not be recoverable. In conducting our quarterly review for indicators of impairment on a community level, we evaluate, among other things, margins on sales contracts in backlog, the margins on homes that have been delivered, expected changes in margins with regard to future home sales over the life of the community, expected changes in margins with regard to future land sales, the value of the land itself as well as any results from third party appraisals. We pay particular attention to communities in which inventory is moving at a slower than anticipated absorption pace, and communities whose average sales price and/or margins are trending downward and are anticipated to continue to trend downward. We also evaluate communities where management intends to lower the sales price or offer incentives in order to improve absorptions even if the community’s historical results do not indicate a potential for impairment. From the review of all of these factors, we identify communities whose carrying values may exceed their estimated undiscounted future cash flows and run a test for recoverability. For those communities whose carrying values exceed the estimated undiscounted future cash flows and which are deemed to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the communities exceeds the estimated fair value. Due to the fact that the Company’s cash flow models and estimates of fair values are based upon management estimates and assumptions, unexpected changes in market conditions and/or changes in management’s intentions with respect to the inventory may lead the Company to incur additional impairment charges in the future. Our determination of fair value is based on projections and estimates, which are Level 3 measurement inputs. Because each inventory asset is unique, there are numerous inputs and assumptions used in our valuation techniques, including estimated average selling price, construction and development costs, absorption pace (reflecting any product mix change strategies implemented or to be implemented), selling strategies, alternative land uses (including disposition of all or a portion of the land owned), or discount rates, which could materially impact future cash flow and fair value estimates. As of December 31, 2019 , our projections generally assume a gradual improvement in market conditions over time. If communities are not recoverable based on estimated future undiscounted cash flows, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. The fair value of a community is estimated by discounting management’s cash flow projections using an appropriate risk-adjusted interest rate. As of both December 31, 2019 and December 31, 2018 , we utilized discount rates ranging from 13% to 16% in our valuations. The discount rate used in determining each asset’s estimated fair value reflects the inherent risks associated with the related estimated cash flow stream, as well as current risk-free rates available in the market and estimated market risk premiums. For example, construction in progress inventory, which is closer to completion, will generally require a lower discount rate than land under development in communities consisting of multiple phases spanning several years of development. Our quarterly assessments reflect management’s best estimates. Due to the inherent uncertainties in management’s estimates and uncertainties related to our operations and our industry as a whole, we are unable to determine at this time if and to what extent continuing future impairments will occur. Additionally, due to the volume of possible outcomes that can be generated from changes in the various model inputs for each community, we do not believe it is possible to create a sensitivity analysis that can provide meaningful information for the users of our consolidated financial statements. Further details relating to our assessment of inventory for recoverability are included in Note 3 to our Consolidated Financial Statements. Property and Equipment-net. The Company records property and equipment at cost and subsequently depreciates the assets using both straight-line and accelerated methods. Following are the major classes of depreciable assets and their estimated useful lives: Year Ended December 31, (In thousands) 2019 2018 Land, building and improvements $ — $ 11,824 (a) Office furnishings, leasehold improvements, computer equipment and computer software 28,207 29,920 Transportation and construction equipment 10,061 10,064 Property and equipment 38,268 51,808 Accumulated depreciation (16,150 ) (22,413 ) Property and equipment, net $ 22,118 $ 29,395 (a) Includes the Company’s home office building in Columbus, Ohio that met the sale classification criteria for the period ended September 30, 2018 as it was being actively marketed. The carrying value of the building as of December 31, 2018 was $5.6 million . The Company measures assets held for sale at fair value on a nonrecurring basis and records impairment charges when the assets are deemed to be impaired. Assets held for sale are reported at the lower of cost or fair value. Costs to sell are accrued separately. The Company estimated the fair value of the building using the market values for similar properties, and the building was considered a Level 2 asset as defined in ASC 820, “Fair Value Measurements.” During the twelve months ended December 31, 2019, the Company did not record any impairment charges on its asset held for sale. The Company sold the building on December 31, 2019. Estimated Useful Lives Building and improvements 35 years Office furnishings, leasehold improvements, computer equipment and computer software 3-7 years Transportation and construction equipment 5-25 years Depreciation expense was $5.9 million , $5.6 million and $4.1 million in 2019, 2018 and 2017 , respectively. Goodwill. Goodwill represents the excess of the purchase price paid over the fair value of the net assets acquired and liabilities assumed in business combinations. As a result of the Company’s acquisition of the homebuilding assets and operations of Pinnacle Homes in Detroit, Michigan on March 1, 2018, the Company recorded goodwill of $16.4 million as of December 31, 2019 , which is included as Goodwill in our Consolidated Balance Sheets. This amount was based on the estimated fair values of the acquired assets and assumed liabilities at the date of the acquisition in accordance with ASC 350, Intangibles, Goodwill and Other (“ASC 350”). The Company performed its annual goodwill impairment analysis during the fourth quarter of 2019, and as no indicators for impairment existed at December 31, 2019 , no impairment was recorded. See Note 12 to the Company’s Consolidated Financial Statements for further discussion. Other Assets. Other assets at December 31, 2019 and 2018 consisted of the following:. Year Ended December 31, (In thousands) 2019 2018 Development reimbursement receivable from local municipalities $ 16,083 $ 13,632 Mortgage servicing rights 9,614 6,477 Prepaid expenses 13,841 8,605 Prepaid acquisition costs 5,688 7,873 Other 25,085 24,207 Total other assets $ 70,311 $ 60,794 Warranty Reserves. We use subcontractors for nearly all aspects of home construction. Although our subcontractors are generally required to repair and replace any product or labor defects, we are, during applicable warranty periods, ultimately responsible to the homeowner for making such repairs. As such, we record warranty reserves to cover our exposure to the costs for materials and labor not expected to be covered by our subcontractors to the extent they relate to warranty-type claims. Warranty reserves are established by charging cost of sales and crediting a warranty reserve for each home delivered. The amounts charged are estimated by management to be adequate to cover expected warranty-related costs under the Company’s warranty programs. Warranty reserves are recorded for warranties under our Home Builder’s Limited Warranty (“HBLW”) and our transferable structural warranty (see additional information in Note 8 to our Consolidated Financial Statements). The warranty reserves for the HBLW are established as a percentage of average sales price and adjusted based on historical payment patterns determined, generally, by geographic area and recent trends. Factors that are given consideration in determining the HBLW reserves include: (1) the historical range of amounts paid per average sales price on a home; (2) type and mix of amenity packages added to the home; (3) any warranty expenditures not considered to be normal and recurring; (4) timing of payments; (5) improvements in quality of construction expected to impact future warranty expenditures; and (6) conditions that may affect certain projects and require a different percentage of average sales price for those specific projects. Changes in estimates for warranties occur due to changes in the historical payment experience and differences between the actual payment pattern experienced during the period and the historical payment pattern used in our evaluation of the warranty reserve balance at the end of each quarter. Actual future warranty costs could differ from our current estimated amount. Our warranty reserves for our transferable structural warranty programs are established on a per-unit basis. While the structural warranty reserve is recorded as each house is delivered, the sufficiency of the structural warranty per unit charge and total reserve is re-evaluated on an annual basis, with the assistance of an actuary, using our own historical data and trends, industry-wide historical data and trends, and other project specific factors. The reserves are also evaluated quarterly and adjusted if we encounter activity that is inconsistent with the historical experience used in the annual analysis. These reserves are subject to variability due to uncertainties regarding structural defect claims for products we build, the markets in which we build, claim settlement history, insurance and legal interpretations, among other factors. Our warranty reserve amounts are based upon historical experience and geographic location. While we believe that our warranty reserves are sufficient to cover our projected costs, there can be no assurances that historical data and trends will accurately predict our actual warranty costs. At December 31, 2019 and 2018 , warranty reserves of $26.4 million and $26.5 million , respectively, are included in Other Liabilities on the Consolidated Balance Sheets. See Note 8 to our Consolidated Financial Statements for additional information related to our warranty reserves, including reserves related to stucco-related repairs in certain of our Florida communities. Self-insurance Reserves. Self-insurance reserves are made for estimated liabilities associated with employee health care, workers’ compensation, and general liability insurance. Our workers’ compensation claims are insured by a third party. The reserves related to employee health care and workers’ compensation are based on historical experience and open case reserves. Our general liability claims are insured by a third party, subject to a self-insured retention (“SIR”). The Company records a reserve for general liability claims falling below the Company’s SIR. The reserve estimate is based on an actuarial evaluation of our past history of general liability claims, other industry specific factors and specific event analysis. At both December 31, 2019 and 2018 , self-insurance reserves of $2.7 million are included in Other Liabilities on the Consolidated Balance Sheets. The Company recorded expenses totaling $9.5 million , $9.2 million and $8.9 million for all self-insured and general liability claims during the years ended December 31, 2019, 2018 and 2017 , respectively. Other Liabilities. Other liabilities at December 31, 2019 and 2018 consisted of the following: Year Ended December 31, (In thousands) 2019 2018 Accruals related to land development $ 48,694 $ 46,073 Warranty 26,420 26,459 Payroll and other benefits 35,125 31,428 Other 37,698 46,091 Total other liabilities $ 147,937 $ 150,051 Revenue Recognition. Revenue and the related profit from the sale of a home and revenue and the related profit from the sale of land to third parties are recognized in the financial statements on the date of closing if delivery has occurred, title has passed to the buyer, all performance obligations (as defined below) have been met, and control of the home or land is transferred to the buyer in an amount that reflects the consideration we expect to be entitled to in exchange for the home or land. If not received immediately upon closing, cash proceeds from home closings are held in escrow for the Company’s benefit, typically for up to three days, and are included in Cash, cash equivalents and restricted cash on the Consolidated Balance Sheets. Sales incentives vary by type of incentive and by amount on a community-by-community and home-by-home basis. The costs of any sales incentives in the form of free or discounted products and services provided to homebuyers are reflected in Land and housing costs in the Consolidated Statements of Income because such incentives are identified in our home purchase contracts with homebuyers as an intrinsic part of our single performance obligation to deliver and transfer title to their home for the transaction price stated in the contracts. Sales incentives that we may provide in the form of closing cost allowances are recorded as a reduction of housing revenue at the time the home is delivered. We record sales commissions within Selling expenses in the Consolidated Statements of Income when incurred (i.e., when the home is delivered) as the amortization period is generally one year or less and therefore capitalization is not required as part of the practical expedient for incremental costs of obtaining a contract. Contract liabilities include customer deposits related to sold but undelivered homes. Substantially all of our home sales are scheduled to close and be recorded to revenue within one year from the date of receiving a customer deposit. Contract liabilities expected to be recognized as revenue, excluding revenue pertaining to contracts that have an original expected duration of one year or less, is not material. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. All of our home purchase contracts have a single performance obligation as the promise to transfer the home is not separately identifiable from other promises in the contract and, therefore, not distinct. Our performance obligation, to deliver the agreed-upon home, is generally satisfied in less than one year from the original contract date. Deferred revenue resulting from uncompleted performance obligations existing at the time we deliver new homes to our homebuyers is not material. Although our third party land sale contracts may include multiple performance obligations, the revenue we expect to recognize in any future year related to remaining performance obligations, excluding revenue pertaining to contracts that have an original expected duration of one year or less, is not material. We do not disclose the value of unsatisfied performance obligations for land sale contracts with an original expected duration of one year or less. We recognize the majority of the revenue associated with our mortgage loan operations when the mortgage loans are sold and/or related servicing rights are sold to third party investors or retained and managed under a third party sub-service arrangement. The revenue recognized is reduced by the fair value of the related guarantee provided to the investor. The fair value of the guarantee is recognized in revenue when the Company is released from its obligation under the guarantee (note that guarantees are excluded from the scope of ASC 606). As of December 31, 2019 and 2018 , we retained mortgage servicing rights of 3,613 and 2,282 loans, respectively, for a total value of $9.6 million and $6.5 million , respectively. We recognize financial services revenue associated with our title operations as homes are delivered, closing services are rendered, and title policies are issued, all of which generally occur simultaneously as each home is delivered. All of the underwriting risk associated with title insurance policies is transferred to third-party insurers. The following table presents our revenues disaggregated by revenue source: Year Ended December 31, (Dollars in thousands) 2019 2018 2017 (a) Housing $ 2,420,348 $ 2,217,197 $ 1,878,572 Land sales 24,619 16,889 33,706 Financial services (b) 55,323 52,196 49,693 Total revenue $ 2,500,290 $ 2,286,282 $ 1,961,971 (a) Prior period amounts have not been adjusted under the cumulative catch-up transition method as a result of the adoption of ASU 2014-09, Revenue from Contracts with Customers , on January 1, 2018. (b) Revenues include hedging losses of $12.1 million and hedging gains of $3.6 million and $0.7 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Hedging gains (losses) do not represent revenues recognized from contracts with customers. Refer to Note 15 for presentation of our revenues disaggregated by geography. As our homebuilding operations accounted for over 97% of our total revenues for the years ended December 31, 2019, 2018 and 2017 , with most of those revenues generated from home purchase contracts with customers, we believe the disaggregation of revenues as disclosed above and in Note 15 fairly depict how the nature, amount, timing and uncertainty of cash flows are affected by economic factors. Land and Housing Cost of Sales. All associated homebuilding costs are charged to cost of sales in the period when the revenues from home deliveries are recognized. Homebuilding costs include: land and land development costs; home construction costs (including an estimate of the costs to complete construction); previously capitalized interest; real estate taxes; indirect costs; and estimated warranty costs. All other costs are expensed as incurred. Sales incentives, including pricing discounts and financing costs paid by the Company, are recorded as a reduction of revenue in the Company’s Consolidated Statements of Income. Sales incentives in the form of options or upgrades are recorded in homebuilding costs. Income Taxes. The Company records income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized based on future tax consequences attributable to (1) temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and (2) operating loss and tax credit carryforwards, if any. Deferred tax assets and liabilities are measured using enacted tax rates in effect in the years in which those temporary differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period when the change is enacted. In accordance with ASC 740-10, Income Taxes (“ASC 740”) , we evaluate the realizability of our deferred tax assets, including the benefit from net operating losses (“NOLs”) and tax credit carryforwards, if any, to determine if a valuation allowance is required based on whether it is more likely than not (a likelihood of more than 50%) that all or any portion of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is primarily dependent upon the generation of future taxable income. In determining the future tax consequences of events that have been recognized in the consolidated financial statements or tax returns, judgment is required. This assessment gives appropriate consideration to all positive and negative evidence related to the realization of the deferred tax assets and considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the length of statutory carryforward periods, our experience with operating losses and our experience of utilizing tax credit carryforwards and tax planning alternatives. See Note 14 to our Consolidated Financial Statements for more information regarding our deferred tax assets. Earnings Per Share. The Company computes earnings per share in accordance with ASC 260, Earnings per Share , (“ASC 260”). Basic earnings per share is calculated by dividing income attributable to common shareholders by the weighted average number of common shares outstanding during each year. Diluted earnings per share gives effect to the potential dilution that could occur if securities or contracts to issue our common shares that are dilutive were exercised or converted into common shares or resulted in the issuance of common shares that then shared our earnings. In periods of net losses, no dilution is computed. See Note 13 to our Consolidated Financial Statements for more information regarding our earnings per share calculation. Recently Adopted Accounting Standards. In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (“ASU 2016-02”), which requires organizations that lease assets - referred to as “lessees” - to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Under ASU 2016-02, a lessee will be required to recognize assets and liabilities for all lease agreements. Lessor accounting remains substantially similar to current GAAP. In addition, disclosures of leasing activities will be expanded to include qualitative and specific quantitative information. For publicly traded companies, ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Following the issuance of ASU 2016-02, the FASB issued ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842 (“ASU 2018-01”), ASU No. 2018-10, Codification Improvements to Topic 842, Leases (“ASU 2018-10”), ASU No. 2018-11, Leases (Topic 842): Targeted Improvements (“ASU 2018-11”), and ASU No. 2018-20, Leases (Topic 842): Narrow-Scope Improvements (“ASU 2018-20”) . In March 2019, the FASB issued ASU No. 2019-01, Leases (Topic 842): Codification Improvements (“ASU 2019-01”) which clarifies how to apply certain aspects of the new lease standard as discussed in more detail below. These ASUs do not change the core principle of the guidance stated in ASU 2016-02, but are instead intended to clarify and improve the operability of certain topics addressed by ASU 2016-02 and provide practical expedients for certain aspects of the guidance to aid companies in transition. These additional ASUs have the same effective date and transition requirements as ASU 2016-02. We adopted ASU 2016-02 and the subsequently issued ASUs identified above on January 1, 2019 using the additional modified retrospective transition method in accordance with ASU 2018-11, which includes a cumulative catch-up in retained earnings on the initial date of adoption (i.e., the initial date of adoption method). The adoption of the new lease standard did not have any impact on our retained earnings. At January 1, 2019, we recognized Operating Right-of-Use (“ROU”) Assets and Operating Lease Liabilities of $20.9 million on our Consolidated Balance Sheets. As a result of adopting the standard, we added certain internal controls to our control framework and ensured that these controls were designed and operating as part of the implementation process. See Note 9 to the Company’s Consolidated Financial Statements for the additional expanded disclosures required by the new standard. In July 2019, the FASB issued ASU No. 2019-07, Codification Updates to SEC Sections - Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization and Miscellaneous Updates (SEC Update) (“ASU 2019-07”). ASU 2019-07 clarifies or improves the disclosure and presentation requirements of a variety of codification topics by aligning them with the SEC’s regulations, thereby eliminating redundancies and making the codification easier to apply. This ASU was effective upon issuance and did not have a significant impact on the Company’s Consolidated Financial Statements and disclosures. Impact of New Accounting Standards. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to estimate credit losses. ASU 2016-13 is effective for our fiscal year beginning January 1, 2020. Subsequent to the issuance of ASU 2016-13, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses (“ASU 2018-19”) in November 2018, ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments (“ASU 2019-04”) , in April 2019, and ASU No. 2019-05, Financial Instruments-Credit Losses (Topic 326) Targeted Transition Relief (“ASU 2019-05”) in May 2019. These ASUs do not change the core principle of the guidance in ASU 2016-13. Instead these amendments are intended to clarify and improve operability of certain topics included within the credit losses standard. These ASUs will have the same effective date and transition requirements as ASU 2016-13. The adoption of this ASU will not have a material impact on the Company’s Consolidated Financial Statements and disclosures. In August 2018, the FASB issued ASU No. 2018-13, Fair |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Stock Based Compensation [Abstract] | |
Share-based Payment Arrangement [Text Block] | Stock-Based and Deferred Compensation We measure and recognize compensation expense associated with our grant of equity-based awards in accordance with ASC 718, Compensation-Stock Compensation (“ASC 718”), which generally requires that companies measure and recognize stock-based compensation expense in an amount equal to the fair value of share-based awards granted under compensation arrangements over the related vesting period. We have granted share-based awards to certain of our employees and directors in the form of stock options, director stock units and performance share units (“PSU’s”). Determining the fair value of share-based awards requires judgment to identify the appropriate valuation model and develop the assumptions. Stock Incentive Plans The Company maintains the M/I Homes, Inc. 2018 Long-Term Incentive Plan (the “2018 LTIP”), an equity compensation plan administered by the Compensation Committee of our Board of Directors. Under the 2018 LTIP, the Company is permitted to grant (1) nonqualified stock options to purchase common shares, (2) incentive stock options to purchase common shares, (3) stock appreciation rights, (4) restricted common shares, (5) other stock-based awards – awards that are valued in whole or in part by reference to, or otherwise based on, the fair market value of our common shares, and (6) cash-based awards to its officers, employees, non-employee directors and other eligible participants. Subject to certain adjustments, the 2018 LTIP authorizes awards to officers, employees, non-employee directors and other eligible participants for up to 2,250,000 common shares, of which 1,714,293 remain available for grant at December 31, 2019 . The 2018 LTIP replaced the M/I Homes, Inc. 2009 Long-Term Incentive Plan (the “2009 LTIP”), which was terminated immediately following our 2018 Annual Meeting of Shareholders. Awards outstanding under the 2009 LTIP remain in effect in accordance with their respective terms. Stock Options Stock options are granted at the market price of the Company’s common shares at the close of business on the date of grant. The grant date fair value for stock option awards is estimated using the Black-Scholes option pricing model. Options awarded generally vest 20% annually over five years and expire after ten years. We recognize stock-based compensation expense for our stock option awards over the requisite service period of the award. Under the 2018 LTIP and the 2009 LTIP, in the case of termination due to death, disability or retirement, all options will become immediately exercisable. Shares issued upon option exercise may consist of treasury shares, authorized but unissued common shares or common shares purchased by or on behalf of the Company in the open market. Following is a summary of stock option activity for the year ended December 31, 2019 , relating to the stock options awarded under the 2018 LTIP and the 2009 LTIP: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (a) (In thousands) Options outstanding at December 31, 2018 2,212,690 $ 22.82 6.58 $ 3,123 Granted 423,500 27.99 Exercised (954,370 ) 20.60 Forfeited (58,100 ) 27.37 Options outstanding at December 31, 2019 1,623,720 $ 25.30 7.22 $ 22,836 Options vested or expected to vest at December 31, 2019 1,571,685 $ 25.25 7.19 $ 22,198 Options exercisable at December 31, 2019 741,520 $ 22.90 5.97 $ 12,198 (a) Intrinsic value is defined as the amount by which the fair value of the underlying common shares exceeds the exercise price of the option. The aggregate intrinsic value of options exercised during the years ended December 31, 2019, 2018 and 2017 was $14.5 million , $0.6 million and $9.3 million , respectively. The fair value of our five-year service-based stock options granted during the years ended December 31, 2019, 2018 and 2017 was established at the date of grant using the Black-Scholes pricing model, with the weighted average assumptions as follows: Year Ended December 31, 2019 2018 2017 Risk-free interest rate 2.51 % 2.72 % 1.96 % Expected volatility 28.81 % 32.01 % 39.49 % Expected term (in years) 5.9 5.7 5.9 Weighted average grant date fair value of options granted during the period $ 9.06 $ 11.31 $ 9.45 The risk-free interest rate is based upon the U.S. Treasury constant maturity rate at the date of the grant. Expected volatility is based on an average of (1) historical volatility of the Company’s stock and (2) implied volatility from traded options on the Company’s stock. The risk-free rate for periods within the contractual life of the stock option award is based on the yield curve of a zero-coupon U.S. Treasury bond on the date the stock option award is granted, with a maturity equal to the expected term of the stock option award granted. The Company uses historical data to estimate stock option exercises and forfeitures within its valuation model. The expected life of stock option awards granted is derived from historical exercise experience under the Company’s share-based payment plans, and represents the period of time that stock option awards granted are expected to be outstanding. Total stock-based compensation expense related to stock option awards that has been charged against income was $3.6 million for the year ended December 31, 2019 relating to the 2018 LTIP and the 2009 LTIP, and $3.9 million , and $3.7 million for the years ended December 31, 2018 and 2017, respectively, relating to the 2018 LTIP, the 2009 LTIP, and the 1993 Stock Incentive Plan as Amended. As of December 31, 2019 , there was a total of $7.8 million of unrecognized compensation expense related to unvested stock option awards that will be recognized as stock-based compensation expense as the awards vest over a weighted average period of 2.1 years for the service awards. Director Stock Units The Company awarded its non-employee directors a total of 24,000 and 21,000 stock units under the 2018 LTIP during the years ended December 31, 2019 and 2018 , respectively, and a total of 18,000 stock units under the 2009 LTIP during the year ended December 31, 2017 . Each stock unit is the equivalent of one common share, vests immediately and will be converted into a common share upon termination of service as a director. The grant date fair value for the director stock units is based upon the closing price of our common shares on the date of grant. Stock-based compensation expense for our director stock units, which vest immediately, is fully recognized in the period of the award. The Company recognized the stock-based compensation expense related to the awards of $0.7 million in both 2019 and 2018 , and $0.5 million in 2017 . On May 5, 2009, the Company’s board of directors terminated the M/I Homes, Inc. 2006 Director Equity Incentive Plan (the “Director Equity Plan”). Awards outstanding under the Director Equity Plan remain in effect in accordance with their respective terms. At December 31, 2019 , there were 8,059 stock units outstanding under the Director Equity Plan with a value of $0.2 million . Performance Share Unit Awards On February 19, 2019 , February 15, 2018 and February 8, 2017 , the Company awarded its executive officers (in the aggregate) a target number of PSU’s under the 2009 LTIP equal to 53,692 , 46,444 and 57,110 PSU’s, respectively. Each PSU represents a contingent right to receive one common share of the Company if vesting is satisfied at the end of a three-year performance period (the “Performance Period”) based on the related performance conditions and markets conditions. The ultimate number of PSU’s that will vest and be earned, if any, after the completion of the Performance Period, is based on (1) (a) the Company’s cumulative annual pre-tax income from operations, excluding extraordinary items as defined in the underlying award agreements with the executive officers, over the Performance Period (weighted 80% ) (the “Performance Condition”), and (b) the Company’s relative total shareholder return over the Performance Period compared to the total shareholder return of a peer group of other publicly-traded homebuilders (weighted 20% ) (the “Market Condition”) and (2) the participant’s continued employment through the end of the Performance Period, except in the case of termination due to death, disability or retirement or involuntary termination without cause by the Company. The number of PSU’s that vest may increase by up to 50% from the target number based on levels of achievement of the above criteria as set forth in the applicable award agreements and decrease to zero if the Company fails to meet the minimum performance levels for both of the above criteria. If the Company achieves the minimum performance levels for both of the above criteria, 50% of the target number of PSU’s will vest and be earned. Any portion of PSU’s that does not vest at the end of the Performance Period will be forfeited. Additionally, the PSU’s have no dividend or voting rights during the Performance Period. The grant date fair value for PSU’s with a market condition (as defined in ASC 718) is estimated using the Monte Carlo simulation methodology, and the grant date fair value for PSU’s with a performance condition (as defined in ASC 718) is based upon the closing price of our common shares on the date of grant. The grant date fair value of the portion of the PSU’s subject to the Performance Condition and the Market Condition component was $27.62 and $32.52 , respectively, for the 2019 PSU’s, $31.93 and $33.57 , respectively, for the 2018 PSU’s, and $23.34 and $19.69 , respectively, for the 2017 PSU’s. In accordance with ASC 718, for the portion of the PSU’s subject to a Market Condition, stock-based compensation expense is derived using the Monte Carlo simulation methodology and is recognized ratably over the service period regardless of whether or not the attainment of the Market Condition is probable. Therefore, the Company recognized $0.2 million in stock-based compensation expense during 2019 related to the Market Condition portion of the 2019, 2018 and 2017 PSU awards. There was a total of $0.2 million of unrecognized stock-based compensation expense related to the Market Condition portion of the 2019 and 2018 PSU awards as of December 31, 2019 . At December 31, 2019 , the Market Condition for the 2017 PSU awards was met, and the Company recorded $0.1 million of stock-based compensation expense. Based on these results and board approval, 11,101 PSU’s vested during the first quarter of 2020 with respect to the portion of the 2017 PSU’s subject to the Market Condition. For the portion of the PSU’s subject to a Performance Condition, we recognize stock-based compensation expense on a straight-line basis over the Performance Period based on the probable outcome of the related Performance Condition. If satisfaction of the performance condition is not probable, stock-based compensation expense recognition is deferred until probability is attained and a cumulative compensation expense adjustment is recorded and recognized ratably over the remaining service period. The Company reassesses the probability of the satisfaction of the Performance Condition on a quarterly basis, and stock-based compensation expense is adjusted based on the portion of the requisite service period that has passed. If actual results differ significantly from these estimates, stock-based compensation expense could be higher and have a material impact on our consolidated financial statements. As of December 31, 2019 , the Company had not recognized any stock-based compensation expense related to the Performance Condition portion of the 2019 PSU awards. If the Company achieves the minimum performance levels for the Performance Condition to be met for the 2019 PSU awards, the Company would record unrecognized stock-based compensation expense of $0.6 million as of December 31, 2019 , for which $0.2 million would be immediately recognized as if attainment been probable at December 31, 2019 . The Company recognized $0.4 million of stock-based compensation expense related to the Performance Condition portion of the 2018 PSU awards during 2018 based on the probability of attaining the Performance Condition. The Company has $0.2 million of unrecognized stock-based compensation expense related to the Performance Condition portion of the 2018 PSU awards at December 31, 2019 . The Company recognized $0.9 million of stock-based compensation expense related to the Performance Condition portion of the 2017 PSU awards as of December 31, 2019 based on the achievement of 121% of the target performance level. Based on these results and board approval, 55,080 PSU’s vested during the first quarter of 2020 with respect to the portion of the 2017 PSU awards subject to the Performance Condition. Deferred Compensation Plans The purpose of the Company’s Amended and Restated Executives’ Deferred Compensation Plan (the “Executive Plan”), a non-qualified deferred compensation plan, is to provide an opportunity for certain eligible employees of the Company to defer a portion of their compensation and to invest in the Company’s common shares. The purpose of the Company’s Amended and Restated Director Deferred Compensation Plan (the “Director Plan”) is to provide its directors with an opportunity to defer their director compensation and to invest in the Company’s common shares. Compensation expense deferred into the Executive Plan and the Director Plan (together the “Plans”) totaled $0.2 million for both the years ended December 31, 2019 and 2018, and $0.4 million for the year ended December 31, 2017. The portion of cash compensation deferred by employees and directors under the Plans is invested in fully-vested equity units in the Plans. One equity unit is the equivalent of one common share. Equity units and the related dividends (if any) will be converted and generally distributed to the employee or director in the form of common shares at the earlier of his or her elected distribution date or termination of service as an employee or director of the Company. Distributions from the Plans totaled $0.2 million during each of the years ended December 31, 2019 , 2018 and 2017. As of December 31, 2019 , there were a total of 63,958 equity units with a value of $1.5 million outstanding under the Plans. The aggregate fair market value of these units at December 31, 2019 , based on the closing price of the underlying common shares, was approximately $2.5 million , and the associated deferred tax benefit the Company would recognize if the outstanding units were distributed was $1.1 million as of December 31, 2019 . Common shares are issued from treasury shares upon distribution of equity units from the Plans. Profit Sharing and Retirement Plan The Company has a profit-sharing and retirement plan that covers substantially all Company employees and permits participants to make contributions to the plan on a pre-tax basis in accordance with the provisions of Section 401(k) of the Internal Revenue Code of 1986, as amended. Company contributions to the plan are also made at the discretion of the Company’s board of directors based on the Company’s profitability and resulted in a $2.9 million , $2.3 million and $1.8 million expense for the years ended December 31, 2019, 2018 and 2017 , respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Measurements [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value Measurements There are three measurement input levels for determining fair value: Level 1, Level 2, and Level 3. Fair values determined by Level 1 inputs utilize quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Fair values determined by Level 2 inputs utilize inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. Assets Measured on a Recurring Basis To meet financing needs of our home-buying customers, M/I Financial is party to interest rate lock commitments (“IRLCs”), which are extended to customers who have applied for a mortgage loan and meet certain defined credit and underwriting criteria. These IRLCs are considered derivative financial instruments. M/I Financial manages interest rate risk related to its IRLCs and mortgage loans held for sale through the use of forward sales of mortgage-backed securities (“FMBSs”), the use of whole loan delivery commitments, and the occasional purchase of options on FMBSs in accordance with Company policy. These FMBSs, options on FMBSs, and IRLCs covered by FMBSs are considered non-designated derivatives. These amounts are either recorded in Other Assets or Other Liabilities on the Consolidated Balance Sheets (depending on the respective balance for that year ended December 31). The Company measures both mortgage loans held for sale and IRLCs at fair value. Fair value measurement results in a better presentation of the changes in fair values of the loans and the derivative instruments used to economically hedge them. In the normal course of business, our financial services segment enters into contractual commitments to extend credit to buyers of single-family homes with fixed expiration dates. The commitments become effective when the borrowers “lock-in” a specified interest rate within established time frames. Market risk arises if interest rates move adversely between the time of the “lock-in” of rates by the borrower and the sale date of the loan to an investor. To mitigate the effect of the interest rate risk inherent in providing rate lock commitments to borrowers, the Company enters into optional or mandatory delivery forward sale contracts to sell whole loans and mortgage-backed securities to broker/dealers. The forward sale contracts lock in an interest rate and price for the sale of loans similar to the specific rate lock commitments. The Company does not engage in speculative trading or derivative activities. Both the rate lock commitments to borrowers and the forward sale contracts to broker/dealers or investors are undesignated derivatives, and accordingly, are marked to fair value through earnings. Changes in fair value measurements are included in earnings in the accompanying Consolidated Statements of Income. The fair value of mortgage loans held for sale is estimated based primarily on published prices for mortgage-backed securities with similar characteristics. To calculate the effects of interest rate movements, the Company utilizes applicable published mortgage-backed security prices, and multiplies the price movement between the rate lock date and the balance sheet date by the notional loan commitment amount. The Company sells loans on a servicing released or servicing retained basis, and receives servicing compensation. Thus, the value of the servicing rights included in the fair value measurement is based upon contractual terms with investors and depends on the loan type. The Company applies a fallout rate to IRLCs when measuring the fair value of rate lock commitments. Fallout is defined as locked loan commitments for which the Company does not close a mortgage loan and is based on management’s judgment and company experience. The fair value of the Company’s forward sales contracts to broker/dealers solely considers the market price movement of the same type of security between the trade date and the balance sheet date. The market price changes are multiplied by the notional amount of the forward sales contracts to measure the fair value. Interest Rate Lock Commitments. IRLCs are extended to certain home-buying customers who have applied for a mortgage loan and meet certain defined credit and underwriting criteria. Typically, the IRLCs will have a term of less than six months; however, in certain markets, the term could extend to nine months. Some IRLCs are committed to a specific third party investor through the use of whole loan delivery commitments matching the exact terms of the IRLC loan. Uncommitted IRLCs are considered derivative instruments and are fair value adjusted, with the resulting gain or loss recorded in current earnings. Forward Sales of Mortgage-Backed Securities. FMBSs are used to protect uncommitted IRLC loans against the risk of changes in interest rates between the lock date and the funding date. FMBSs related to uncommitted IRLCs are classified and accounted for as non-designated derivative instruments and are recorded at fair value, with gains and losses recorded in current earnings. Mortgage Loans Held for Sale. Mortgage loans held for sale consists primarily of single-family residential loans collateralized by the underlying property. Generally, all of the mortgage loans and related servicing rights are sold to third-party investors shortly after origination. During the period between when a loan is closed and when it is sold to an investor, the interest rate risk is covered through the use of a whole loan contract or by FMBSs. The table below shows the notional amounts of our financial instruments at December 31, 2019 and 2018 : December 31, Description of Financial Instrument (in thousands) 2019 2018 Whole loan contracts and related committed IRLCs $ 1,445 $ 5,823 Uncommitted IRLCs 87,340 76,117 FMBSs related to uncommitted IRLCs 88,000 83,000 Whole loan contracts and related mortgage loans held for sale 6,125 14,285 FMBSs related to mortgage loans held for sale 144,000 150,000 Mortgage loans held for sale covered by FMBSs 144,411 149,980 The following table sets forth the amount of gain (loss) recognized, within our revenue in the Consolidated Statements of Income, on assets and liabilities measured on a recurring basis for the years ended December 31, 2019, 2018 and 2017 : Year Ended December 31, Description (in thousands) 2019 2018 2017 Mortgage loans held for sale $ (2,261 ) $ 3,763 $ 3,675 Forward sales of mortgage-backed securities 2,969 (3,482 ) (53 ) Interest rate lock commitments (370 ) 783 21 Whole loan contracts 173 (231 ) 102 Total gain recognized $ 511 $ 833 $ 3,745 The following tables set forth the fair value of the Company’s derivative instruments and their location within the Consolidated Balance Sheets for the periods indicated (except for mortgage loans held for sale which are disclosed as a separate line item): Asset Derivatives Liability Derivatives December 31, 2019 December 31, 2019 Description of Derivatives Balance Sheet Location Fair Value (in thousands) Balance Sheet Location Fair Value (in thousands) Forward sales of mortgage-backed securities Other assets $ — Other liabilities $ 336 Interest rate lock commitments Other assets 654 Other liabilities — Whole loan contracts Other assets — Other liabilities 16 Total fair value measurements $ 654 $ 352 Asset Derivatives Liability Derivatives December 31, 2018 December 31, 2018 Description of Derivatives Balance Sheet Location Fair Value (in thousands) Balance Sheet Location Fair Value (in thousands) Forward sales of mortgage-backed securities Other assets $ — Other liabilities $ 3,305 Interest rate lock commitments Other assets 989 Other liabilities — Whole loan contracts Other assets — Other liabilities 154 Total fair value measurements $ 989 $ 3,459 Assets Measured on a Non-Recurring Basis The Company assesses inventory for recoverability on a quarterly basis if events or changes in local or national economic conditions indicate that the carrying amount of an asset may not be recoverable. Our determination of fair value is based on projections and estimates, which are Level 3 measurement inputs. For further explanation of the Company’s policy regarding our assessment of recoverability for assets measured on a non-recurring basis, see Note 1 to our Consolidated Financial Statements. The table below shows the level and measurement of assets measured on a non-recurring basis for the years ended December 31, 2019, 2018 and 2017 : Year Ended December 31, Description (in thousands) Fair Value Hierarchy 2019 2018 (2) 2017 (2) Adjusted basis of inventory (1) Level 3 $ 12,321 $ 14,515 $ 3,823 Total losses 5,002 5,809 7,681 Initial basis of inventory (3) $ 17,323 $ 20,324 $ 11,504 (1) The fair values in the table above represent only assets whose carrying values were adjusted in the respective period. (2) The carrying values for these assets may have subsequently increased or decreased from the fair value reported due to activities that have occurred since the measurement date. (3) This amount is inclusive of our investments in joint venture arrangements. There were no losses on our investments in joint venture arrangements for 2019 , 2018 and 2017 . Asset Held For Sale. The Company measures assets held for sale at fair value on a nonrecurring basis and records impairment charges when the assets are deemed to be impaired. Assets held for sale are reported at the lower of cost or fair value. Costs to sell are accrued separately. As of September 30, 2018, our home office building in Columbus, Ohio met the held for sale classification criteria as it was being actively marketed. The carrying value of the building as of December 31, 2018 was $5.6 million . The Company estimated the fair value of the building using the market values for similar properties, and the building was considered a Level 2 asset as defined in ASC 820, “Fair Value Measurements.” On December 31, 2019, the Company sold the home office building for a gain. During the years ended December 31, 2019 and 2018 , the Company did no t record any impairment charges on its asset held for sale. Financial Instruments Counterparty Credit Risk. To reduce the risk associated with losses that would be recognized if counterparties failed to perform as contracted, the Company limits the entities with whom management can enter into commitments. This risk of accounting loss is the difference between the market rate at the time of non-performance by the counterparty and the rate to which the Company committed. The following table presents the carrying amounts and fair values of the Company’s financial instruments at December 31, 2019 and 2018 . The objective of the fair value measurement is to estimate the price at which an orderly transaction to sell the asset or transfer the liability would take place between market participants at the measurement date under current market conditions. December 31, 2019 December 31, 2018 (In thousands) Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Assets: Cash, cash equivalents and restricted cash Level 1 $ 6,083 $ 6,083 $ 21,529 $ 21,529 Mortgage loans held for sale Level 2 155,244 155,244 169,651 169,651 Interest rate lock commitments Level 2 654 654 989 989 Liabilities: Notes payable - homebuilding operations Level 2 66,000 66,000 117,400 117,400 Notes payable - financial services operations Level 2 136,904 136,904 153,168 153,168 Notes payable - other Level 2 5,828 5,286 5,938 5,112 Senior notes due 2021 (a) Level 2 300,000 299,250 300,000 298,500 Senior notes due 2025 (a) Level 2 250,000 261,563 250,000 228,750 Whole loan contracts for committed IRLCs and mortgage loans held for sale Level 2 16 16 154 154 Forward sales of mortgage-backed securities Level 2 336 336 3,305 3,305 (a) Our senior notes are stated at the principal amount outstanding which does not include the impact of premiums, discounts, and debt issuance costs that are amortized to interest cost over the respective terms of the notes. The following methods and assumptions were used by the Company in estimating its fair value disclosures of financial instruments at December 31, 2019 and 2018 : Cash, Cash Equivalents and Restricted Cash. The carrying amounts of these items approximate fair value because they are short-term by nature. Mortgage Loans Held for Sale, Forward Sales of Mortgage-Backed Securities, Interest Rate Lock Commitments, Whole loan Contracts for Committed IRLCs and Mortgage Loans Held for Sale, Senior Notes due 2021 and Senior Notes due 2025. The fair value of these financial instruments was determined based upon market quotes at December 31, 2019 and 2018 . The market quotes used were quoted prices for similar assets or liabilities along with inputs taken from observable market data by correlation. The inputs were adjusted to account for the condition of the asset or liability. Notes Payable - Homebuilding Operations. The interest rate available to the Company during 2019 under the Company’s $500 million unsecured revolving credit facility, dated July 18, 2013 , as amended (the “Credit Facility”), fluctuated daily with the one-month LIBOR rate plus a margin of 250 basis points, and thus the carrying value is a reasonable estimate of fair value. See Note 11 to our Consolidated Financial Statements for additional information regarding the Credit Facility. Notes Payable - Financial Services Operations. M/I Financial is a party to two credit agreements: (1) a $125 million secured mortgage warehousing agreement, dated June 24, 2016 , as amended (the “MIF Mortgage Warehousing Agreement”), and (2) a $65 million mortgage repurchase agreement, dated October 30, 2017 , as amended (the “MIF Mortgage Repurchase Facility”). For each of these credit facilities, the interest rate is based on a variable rate index, and thus their carrying value is a reasonable estimate of fair value. The interest rate available to M/I Financial during 2019 fluctuated with LIBOR. See Note 11 to our Consolidated Financial Statements for additional information regarding the MIF Mortgage Warehousing Agreement and the MIF Mortgage Repurchase Facility. Notes Payable - Other. The estimated fair value was determined by calculating the present value of the future cash flows using the Company’s current incremental borrowing rate. |
Inventory and Capitalized Inter
Inventory and Capitalized Interest | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | Inventory A summary of the Company’s inventory as of December 31, 2019 and 2018 is as follows: December 31, (In thousands) 2019 2018 Single-family lots, land and land development costs $ 858,065 $ 778,943 Land held for sale 5,670 12,633 Homes under construction 756,998 730,390 Model homes and furnishings - at cost (less accumulated depreciation: December 31, 2019 - $12,723; December 31, 2018 - $13,441) 98,777 87,132 Community development district infrastructure 13,531 12,392 Land purchase deposits 28,532 33,662 Consolidated inventory not owned 7,934 19,308 Total inventory $ 1,769,507 $ 1,674,460 Single-family lots, land and land development costs include raw land that the Company has purchased to develop into lots, costs incurred to develop the raw land into lots, and lots for which development has been completed, but which have not yet been used to start construction of a home. Homes under construction include homes that are in various stages of construction. As of December 31, 2019 and 2018 , we had 1,459 homes (with a carrying value of $304.0 million ) and 1,443 homes (with a carrying value of $311.0 million ), respectively, included in homes under construction that were not subject to a sales contract. Model homes and furnishings include homes that are under construction or have been completed and are being used as sales models. The amount also includes the net book value of furnishings included in our model homes. Depreciation on model home furnishings is recorded using an accelerated method over the estimated useful life of the assets, which is typically three years. The Company assesses inventory for recoverability on a quarterly basis. See Notes 1 and 3 to our Consolidated Financial Statements for additional details relating to our procedures for evaluating our inventories for impairment. Land purchase deposits include both refundable and non-refundable amounts paid to third party sellers relating to the purchase of land. On an ongoing basis, the Company evaluates the land option agreements relating to the land purchase deposits. In the period during which the Company makes the decision not to proceed with the purchase of land under an agreement, the Company expenses any deposits and accumulated pre-acquisition costs relating to such agreement. Capitalized Interest The Company capitalizes interest during land development and home construction. Capitalized interest is charged to land and housing costs and expensed as the related inventory is delivered to a third party. The summary of capitalized interest for the years ended December 31, 2019, 2018 and 2017 is as follows: Year Ended December 31, (In thousands) 2019 2018 2017 Capitalized interest, beginning of period $ 20,765 $ 17,169 $ 16,012 Interest capitalized to inventory 30,253 29,053 21,484 Capitalized interest charged to cost of sales (29,411 ) (25,457 ) (20,327 ) Capitalized interest, end of year $ 21,607 $ 20,765 $ 17,169 Interest incurred $ 51,628 $ 49,537 $ 40,358 |
Transactions with Related Parti
Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2019 | |
Transactions with Related Parties [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Transactions with Related Parties From time to time, in the ordinary course of business, we have transacted with related or affiliated companies and with certain of our officers and directors. We believe that the terms and fees negotiated for all transactions listed below are no less favorable than those that could be negotiated in arm’s length transactions. In October 2019, the Company entered into a land purchase agreement with Schottenstein Real Estate Group, LLC, a company owned by the brother of our Chairman and CEO, Robert Schottenstein, for $14.2 million to acquire 165.7 acres of land. This transaction was approved by the Company’s Board of Directors. The Company made a contribution of $0.8 million in 2019 to the M/I Homes Foundation, a charitable organization having certain officers and directors of the Company on its Board of Trustees. The Company had a receivable of $0.2 million at both December 31, 2019 and 2018 due from an executive officer, relating to amounts owed to the Company for split-dollar life insurance policy premiums. The Company will collect the receivable either directly from the executive officer, if employment terminates other than by death, or from the executive officer’s beneficiary, if employment terminates due to death of the executive officer. |
Investment in Joint Venture Arr
Investment in Joint Venture Arrangements | 12 Months Ended |
Dec. 31, 2019 | |
Investment in Joint Venture Arrangements [Abstract] | |
Equity Method Investments Disclosure [Text Block] | Investment in Joint Venture Arrangements In order to minimize our investment and risk of land exposure in a single location, we have periodically partnered with other land developers or homebuilders to share in the land investment and development of a property through joint ownership and development agreements, joint ventures, and other similar arrangements. As of December 31, 2019 and 2018 , our investment in such joint venture arrangements totaled $37.9 million and $35.9 million , respectively, and was reported as Investment in Joint Venture Arrangements on our Consolidated Balance Sheets. The increase from prior year was driven primarily by our cash contributions to our joint venture arrangements during 2019 of $30.2 million , offset, in part, by our lot distributions from our joint venture arrangements during 2019 of $27.7 million . The majority of our investment in joint venture arrangements for both 2019 and 2018 consisted of joint ownership and development agreements for which a special purpose entity was not established (“JODAs”). In these agreements, the property is owned jointly with partners which are typically other builders, and land development activities are funded jointly until the developed lots are subdivided for separate ownership by the partners in accordance with the agreement and the approved site plan. As of December 31, 2019 and 2018 , the Company had $35.5 million and $33.3 million , respectively, invested in JODAs. The remainder of our investment in joint venture arrangements was comprised of joint venture arrangements where a special purpose entity was established to own and develop the property. For these joint venture arrangements, we generally enter into limited liability company or similar arrangements (“LLCs”) with the other partners. These entities typically engage in land development activities for the purpose of distributing or selling developed lots to the Company and its partners in the LLC. As of December 31, 2019 and 2018 , the Company had $2.4 million and $2.6 million , respectively, of equity invested in LLCs. The Company’s ownership in these LLCs as of December 31, 2019 and 2018 ranged from 25% to 74% and 25% to 97% , respectively. We use the equity method of accounting for investments in LLCs and other joint venture arrangements over which we exercise significant influence but do not have a controlling interest. Under the equity method, our share of the LLCs’ earnings or loss, if any, is included in our Consolidated Statements of Income. The Company’s equity in the income relating to earnings from its LLCs was $0.3 million for each of the years ended December 31, 2019 and 2018 , and $0.5 million for the year ended December 31, 2017 . Our share of the profit relating to lots we purchase from our LLCs is deferred until homes are delivered by us and title passes to a homebuyer. We believe that the Company’s maximum exposure related to its investment in these joint venture arrangements as of December 31, 2019 is the amount invested of $37.9 million , which is reported as Investment in Joint Venture Arrangements on our Consolidated Balance Sheets, although we expect to invest further amounts in these joint venture arrangements as development of the properties progresses. The Company assesses its investments in joint venture arrangements for recoverability on a quarterly basis in accordance with ASC 323, Investments - Equity Method and Joint Ventures (“ASC 323”) as described below. If the fair value of the investment is less than the investment’s carrying value, and the Company determines that the decline in value is other than temporary, the Company will write down the value of the investment to its estimated fair value. The determination of whether an investment’s fair value is less than the carrying value requires management to make certain assumptions regarding the amount and timing of future contributions to the joint venture arrangements, the timing of distribution of lots to the Company from the joint venture arrangements, the projected fair value of the lots at the time of distribution to the Company, and the estimated proceeds from, and timing of, the sale of land or lots to third parties. In determining the fair value of investments in joint venture arrangements, the Company evaluates the projected cash flows associated with each joint venture arrangement. As of both December 31, 2019 and 2018 , the Company used a discount rate of 16% in determining the fair value of investments in joint venture arrangements. In addition to the assumptions management must make to determine if the investment’s fair value is less than the carrying value, management must also use judgment in determining whether the impairment is other than temporary. The factors management considers are: (1) the length of time and the extent to which the market value has been less than cost; (2) the financial condition and near-term prospects of the joint venture arrangement; and (3) the intent and ability of the Company to retain its investment in the joint venture arrangements for a period of time sufficient to allow for any anticipated recovery in market value. Due to uncertainties in the estimation process and the significant volatility in demand for new housing, actual results could differ significantly from such estimates. Variable Interest Entities With respect to our investments in LLCs, we are required, under ASC 810-10, Consolidation (“ASC 810”), to evaluate whether or not such entities should be consolidated into our Consolidated Financial Statements. We initially perform these evaluations when each new entity is created and upon any events that require reconsideration of the entity. In order to determine if we should consolidate an LLC, we determine (1) if the LLC is a variable interest entity (“VIE”) and (2) if we are the primary beneficiary of the entity. To determine whether we are the primary beneficiary of an entity, we consider whether we have the ability to control the activities of the VIE that most significantly impact its economic performance. This analysis considers, among other things, whether we have: the ability to determine the budget and scope of land development work, if any; the ability to control financing decisions for the VIE; the ability to acquire additional land into the VIE or dispose of land in the VIE not under contract with M/I Homes; and the ability to change or amend the existing option contract with the VIE. If we determine that we are not able to control such activities, we are not considered the primary beneficiary of the VIE. As of December 31, 2019 and 2018 , we have determined that no LLC in which we have an interest met the requirements of a VIE. |
Guarantees and Indemnifications
Guarantees and Indemnifications | 12 Months Ended |
Dec. 31, 2019 | |
Guarantees [Abstract] | |
Guarantees [Text Block] | Guarantees and Indemnifications Guarantee and indemnity liabilities are established by charging the applicable income statement or balance sheet line, depending on the nature of the guarantee or indemnity, and crediting a liability. In the ordinary course of business, M/I Financial, a 100%-owned subsidiary of M/I Homes, Inc., enters into agreements that provide a limited-life guarantee on loans sold to certain third-party purchasers of its mortgage loans that M/I Financial will repurchase a loan if certain conditions occur, primarily if the mortgagor does not meet the terms of the loan within the first six months after the sale of the loan. Loans totaling approximately $48.1 million and $63.6 million were covered under these guarantees as of December 31, 2019 and 2018 , respectively. The decrease in loans covered by these guarantees from December 31, 2018 is a result of a change in the mix of investors and their related purchase terms. A portion of the revenue paid to M/I Financial for providing the guarantees on these loans was deferred at December 31, 2019 , and will be recognized in income as M/I Financial is released from its obligation under the guarantees. The risk associated with the guarantees above is offset by the value of the underlying assets. M/I Financial estimates its actual liability related to the guarantee and any indemnities subsequently provided to the purchaser of the loans in lieu of loan repurchase based on historical loss experience. Actual future costs associated with loans guaranteed or indemnified could differ materially from our current estimated amounts. M/I Financial has received inquiries concerning underwriting matters from purchasers of its loans regarding certain loans totaling approximately $0.6 million at both December 31, 2019 and 2018 . M/I Financial has also guaranteed the collectability of certain loans to third party insurers (U.S. Department of Housing and Urban Development and U.S. Veterans Administration) of those loans for periods ranging from five to thirty years. At each of December 31, 2019 and 2018 , the total of all loans indemnified to third party insurers relating to the above agreements was $1.0 million . The maximum potential amount of future payments is equal to the outstanding loan value less the value of the underlying asset plus administrative costs incurred related to foreclosure on the loans, should this event occur. The Company recorded a liability relating to the guarantees described above totaling $0.5 million and $0.6 million at December 31, 2019 and 2018 , respectively, which is management’s best estimate of the Company’s liability with respect to such guarantees. The Company has also provided certain other guarantees and indemnities in connection with the purchase and development of land, including environmental indemnities, and guarantees of the completion of land development. The Company estimates these liabilities based on the estimated cost of insurance coverage or estimated cost of acquiring a bond in the amount of the exposure. Actual future costs associated with these guarantees and indemnities could differ materially from our current estimated amounts. At both December 31, 2019 and 2018 , guarantees and indemnities of $0.7 million are included in Other Liabilities on the Consolidated Balance Sheets. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies Warranty Our warranty reserves are included in Other Liabilities in the Company’s Consolidated Balance Sheets, as further explained in Note 1 to our Consolidated Financial Statements. A summary of warranty activity for the years ended December 31, 2019, 2018 and 2017 is as follows: Year Ended December 31, (In thousands) 2019 2018 2017 Warranty reserves, beginning of period $ 26,459 $ 26,133 $ 27,732 Warranty expense on homes delivered during the period 14,685 13,456 11,677 Changes in estimates for pre-existing warranties 2,165 4,746 2,614 Charges related to stucco-related claims — — (a) 8,500 Settlements made during the period (16,889 ) (17,876 ) (24,390 ) Warranty reserves, end of period $ 26,420 $ 26,459 $ 26,133 (a) This represents charges of $1.0 million for additional stucco-related repair costs, net of $1.0 million of recoveries for past stucco-related claims during 2018. We have received claims related to stucco installation from homeowners in certain of our communities in our Tampa and Orlando, Florida markets and have been named as a defendant in legal proceedings initiated by certain of such homeowners. These claims primarily relate to homes built prior to 2014 which have second story elevations with frame construction. During 2015 through 2018, we recorded an aggregate total of $28.4 million of warranty charges for stucco-related repair costs, net of recoveries, for (1) homes in our Florida communities that we had identified as needing repair but had not yet completed the repair and (2) estimated repair costs for homes in our Florida communities that we had not yet identified as needing repair but that may require repair in the future. Stucco-related recoveries are reflected in our financial statements in the period the reimbursement is received. During 2019, our on-going review of stucco-related data described below did not result in any additional stucco-related charges. During 2019, we received a total of $1.1 million of recoveries that were recorded directly to income as they related to past stucco-related claims and we had no current charge. The remaining reserve for both known repair costs and an estimate of future costs of stucco-related repairs at December 31, 2019 included within our warranty reserve was $4.5 million . We believe that this amount is sufficient to cover both known and estimated future repair costs as of December 31, 2019 . Our remaining stucco-related reserve is gross of any recoveries. Our review of the stucco-related issues in our Florida communities is ongoing. Our estimate of future costs of stucco-related repairs is based on our judgment, various assumptions and internal data. Due to the degree of judgment and the potential for variability in our underlying assumptions and data, as we obtain additional information, we may revise our estimate, including to reflect additional estimated future stucco-related repairs costs, which revision could be material. We continue to investigate the extent to which we may be able to further recover a portion of our stucco repair and claims handling costs from other sources, including our direct insurers, the subcontractors involved with the construction of the homes and their insurers. As of December 31, 2019 , we are unable to estimate any additional amount that we believe is probable of recovery from these sources and, as noted above, we have not recorded a receivable for recoveries nor included an estimated amount of recoveries in determining our stucco-related warranty reserve. Performance Bonds and Letters of Credit The Company provides standby letters of credit and completion bonds for development work in progress, deposits on land and lot purchase agreements and miscellaneous deposits. At December 31, 2019 , the Company had outstanding approximately $235.4 million of completion bonds and standby letters of credit, some of which were issued to various local governmental entities that expire at various times through November 2027 . Included in this total are: (1) $159.1 million of performance and maintenance bonds and $56.5 million of performance letters of credit that serve as completion bonds for land development work in progress (letters of credit represent potential commitments and generally expire within one or two years); (2) $12.7 million of financial letters of credit, of which $12.2 million represent deposits on land and lot purchase agreements; and (3) $7.1 million of financial bonds. The development agreements under which we are required to provide completion bonds or letters of credit are generally not subject to a required completion date and only require that the improvements are in place in phases as houses are built and sold. In locations where development has progressed, the amount of development work remaining to be completed is typically less than the remaining amount of bonds or letters of credit due to timing delays in obtaining release of the bonds or letters of credit. Land Option Contracts and Other Similar Contracts In the ordinary course of business, the Company enters into land option or purchase agreements for which we generally pay non-refundable deposits. Pursuant to these land option agreements, the Company provides a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. In accordance with ASC 810, we analyze our land option or purchase agreements to determine whether the corresponding land sellers are VIEs and, if so, whether we are the primary beneficiary, using an analysis similar to that described above. Although we do not have legal title to the optioned land, ASC 810 requires a company to consolidate a VIE if the company is determined to be the primary beneficiary. In cases where we are the primary beneficiary, even though we do not have title to such land, we are required to consolidate these purchase/option agreements and reflect such assets and liabilities in our Consolidated Inventory not Owned in our Consolidated Balance Sheets. At both December 31, 2019 and 2018 , we have concluded that we were not the primary beneficiary of any VIEs from which we are purchasing land under option or purchase agreements. In addition, we evaluate our land option or purchase agreements to determine for each contract if (1) a portion or all of the purchase price is a specific performance requirement, or (2) the amount of deposits and prepaid acquisition and development costs exceed certain thresholds relative to the remaining purchase price of the lots. If either is the case, then the remaining purchase price of the lots (or the specific performance amount, if applicable) is recorded as an asset and liability in Consolidated Inventory Not Owned (as further described below) on our Consolidated Balance Sheets. Other than as described below in “Consolidated Inventory Not Owned,” the Company currently believes that its maximum exposure as of December 31, 2019 related to our land option agreements is equal to the amount of the Company’s outstanding deposits and prepaid acquisition costs, which totaled $50.0 million , including cash deposits of $28.5 million , prepaid acquisition costs of $5.7 million , letters of credit of $12.2 million and $3.6 million of other non-cash deposits. At December 31, 2019 , the Company also had options and contingent purchase agreements to acquire land and developed lots with an aggregate purchase price of approximately $685.0 million . Purchase of properties under these agreements is contingent upon satisfaction of certain requirements by the Company and the sellers. Consolidated Inventory Not Owned and Related Obligation At December 31, 2019 and December 31, 2018 , Consolidated Inventory Not Owned was $7.9 million and $19.3 million , respectively. At December 31, 2019 and 2018 , the corresponding liability of $7.9 million and $19.3 million , respectively, has been classified as Obligation for Consolidated Inventory Not Owned on the Consolidated Balance Sheets. The decrease in this balance from December 31, 2018 is related primarily to a decrease in the number of land purchase agreements that had deposits and prepaid acquisition and development costs that exceeded certain thresholds resulting in the remaining purchase price of the lots to be recorded in inventory not owned, partially offset by an increase in the aggregate purchase amount of land contracts with specific performance requirements. Legal Matters In addition to the legal proceedings related to stucco, the Company and certain of its subsidiaries have been named as defendants in certain other legal proceedings which are incidental to our business. While management currently believes that the ultimate resolution of these other legal proceedings, individually and in the aggregate, will not have a material effect on the Company’s financial position, results of operations and cash flows, such legal proceedings are subject to inherent uncertainties. The Company has recorded a liability to provide for the anticipated costs, including legal defense costs, associated with the resolution of these other legal proceedings. However, the possibility exists that the costs to resolve these legal proceedings could differ from the recorded estimates and, therefore, have a material effect on the Company’s net income for the periods in which they are resolved. At December 31, 2019 and 2018 , we had $0.7 million and $0.4 million reserved for legal expenses, respectively. |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | Operating Leases On January 1, 2019, the Company adopted ASC 842, Leases (“ASC 842”) , using the initial date of adoption method, whereby the adoption does not impact any periods prior to 2019. The Company recorded an operating ROU asset and an operating lease liability of $20.9 million on its Consolidated Balance Sheets upon adoption. The Company elected to adopt the package of practical expedients and, accordingly, did not reassess any previously expired or existing arrangements and related classification under ASC 840, Leases (“ASC 840”). The Company leases certain office space and model homes under operating leases with remaining terms of one to six years. The Company sells model homes to investors with the express purpose of leasing the homes back as sales models for a specified period of time. Under ASC 842, the Company records the sale of the model home and the profit on the sale at the time of the home delivery. The Company determines if an arrangement is a lease at inception when the arrangement transfers the right to control the use of an identified asset to the Company. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make payments arising from the lease agreement. The Company has operating leases but does not have any material financing leases. Operating lease ROU assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. The lease term may include an option to extend or terminate a lease when it is reasonably certain that the option will be exercised. The exercise of these lease renewal options is generally at our discretion. The operating lease ROU assets include any lease payments made in advance and exclude any lease incentives. Lease payments include both lease and non-lease components as a single lease component. Lease expense is recognized on a straight-line basis over the lease term. The expense recognition pattern for our leases remained substantially unchanged as a result of the adoption of ASC 842. Variable lease payments consist of non-lease services related to the lease. Variable lease payments are excluded from the ROU assets and lease liabilities and are expensed as incurred. Short-term leases include leases with terms of less than one year without renewal options that are reasonably certain to be exercised and are recognized on a straight-line basis over the lease term. Due to our election of the practical expedient, leases with an initial term of twelve months or less are not recorded on the balance sheet. As the rate implicit in our leases is not readily determinable, the Company uses its estimated incremental borrowing rate at the commencement date in determining the present value of the lease payments. We give consideration to our recent debt issuances as well as to the current rate available under our Credit Facility when calculating our incremental borrowing rate. Our lease agreements do not contain any residual value guarantees or material restrictive covenants. As of December 31, 2019 , the Company has additional operating leases, which have not yet commenced, of approximately $31 million . This balance relates primarily to a ten-year renewable lease for our new corporate headquarters expected to commence in 2020 . During the twelve months ended December 31, 2019 , the Company reduced both its operating ROU asset and operating lease liability by $2.5 million as a result of $5.2 million of additional ROU asset amortization and periodic lease expense (which is recorded within its Consolidated Statement of Cash Flows in the change in Other Assets and Other Liabilities), offset partially by $2.7 million attributable to additional leases and modifications to existing leases year to date . As of December 31, 2019 , the Company’s ROU asset and operating lease liability had a balance of $18.4 million on its Consolidated Balance Sheets. The weighted-average remaining lease term was 4.0 years and the weighted-average discount rate was 5.0% . For the twelve months ended December 31, 2019 , the Company had the following operating lease expense components: (Dollars in thousands) Operating lease expense $ 6,188 Variable lease expense 1,629 Short-term lease expense 1,725 Total lease expense $ 9,542 The following table presents a maturity analysis of our annual undiscounted cash flows reconciled to the carrying value of our operating lease liabilities as of December 31, 2019 : (Dollars in thousands) 2020 $ 5,479 2021 5,159 2022 4,345 2023 3,264 2024 1,741 Thereafter 388 Total lease payments 20,376 Less: Imputed interest (1,961 ) Total operating lease liability $ 18,415 At December 31, 2018, under ASC 840, the future minimum rental commitments totaled $22.5 million under non-cancelable operating leases with initial terms in excess of one year. The Company’s total rental expense was $8.2 million , $7.1 million , and $6.3 million for 2018, 2017 and 2016, respectively. |
Community Development District
Community Development District Infrastructure and Related Obligations | 12 Months Ended |
Dec. 31, 2019 | |
Community Development District Infrastructure and Realted Obligations [Abstract] | |
Community Development District Bonds [Text Block] | Community Development District Infrastructure and Related Obligations A Community Development District and/or Community Development Authority (“CDD”) is a unit of local government created under various state and/or local statutes to encourage planned community development and to allow for the construction and maintenance of long-term infrastructure through alternative financing sources, including the tax-exempt markets. A CDD is generally created through the approval of the local city or county in which the CDD is located and is controlled by a Board of Supervisors representing the landowners within the CDD. CDDs may utilize bond financing to fund construction or acquisition of certain on-site and off-site infrastructure improvements near or within these communities. CDDs are also granted the power to levy special assessments to impose ad valorem taxes, rates, fees and other charges for the use of the CDD project. An allocated share of the principal and interest on the bonds issued by the CDD is assigned to and constitutes a lien on each parcel within the community evidenced by an assessment (the “Assessment”). The owner of each such parcel is responsible for the payment of the Assessment on that parcel. If the owner of the parcel fails to pay the Assessment, the CDD may foreclose on the lien pursuant to powers conferred to the CDD under applicable state laws and/or foreclosure procedures. In connection with the development of certain of the Company’s communities, CDDs have been established and bonds have been issued to finance a portion of the related infrastructure. Following are details relating to such CDD bond obligations issued and outstanding as of December 31, 2019 : Issue Date Maturity Date Interest Rate Principal Amount as of December 31, 2019 (in thousands) Principal Amount as of December 31, 2018 (in thousands) 12/23/2016 5/1/2047 6.20% $ 6,735 $ 6,735 12/22/2017 5/1/2048 5.13% 9,815 9,815 9/24/2018 5/1/2049 5.09% 5,205 5,205 7/18/2019 5/1/2050 4.10% 4,705 — Total CDD bond obligations issued and outstanding $ 26,460 $ 21,755 The Company records a liability for the estimated developer obligations that are probable and estimable and user fees that are required to be paid or transferred at the time the parcel or unit is sold to an end user. The Company reduces this liability by the corresponding Assessment assumed by property purchasers and the amounts paid by the Company at the time of closing and the transfer of the property. The Company recorded a $13.5 million and $12.4 million liability related to these CDD bond obligations as of December 31, 2019 and December 31, 2018 , respectively, along with the related inventory infrastructure. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt Notes Payable - Homebuilding The Credit Facility provides an aggregate commitment amount of $500 million , including a $125 million sub-facility for letters of credit. The Credit Facility expires on July 18, 2021 . Interest on amounts borrowed under the Credit Facility is payable at a rate which is adjusted daily and is equal to the sum of the one-month LIBOR rate plus a margin of 250 basis points. The margin is subject to adjustment in subsequent quarterly periods based on the Company’s leverage ratio. The available amount under the Credit Facility is computed in accordance with a borrowing base, which is calculated by applying various advance rates for different categories of inventory, and totaled $666.6 million of availability for additional senior debt at December 31, 2019 . As a result, the full $500 million commitment amount of the Credit Facility was available, less any borrowings and letters of credit outstanding. At December 31, 2019 , there were $66.0 million borrowings outstanding and $69.1 million of letters of credit outstanding, leaving net remaining borrowing availability of $364.9 million . The Company’s obligations under the Credit Facility are guaranteed by all of the Company’s subsidiaries, 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 (as defined in Note 16 to our Consolidated Financial Statements), subject to limitations on the aggregate amount invested in such Unrestricted Subsidiaries in accordance with the terms of the Credit Facility and the indentures for the Company’s $250.0 million aggregate principal amount of 5.625% Senior Notes due 2025 (the “2025 Senior Notes”) and the Company’s $300.0 million aggregate principal amount of 6.75% Senior Notes due 2021 (the “2021 Senior Notes”). The guarantors for the Credit Facility (the “Guarantor Subsidiaries”) are the same subsidiaries that guarantee the 2025 Senior Notes and the 2021 Senior Notes. The Company’s obligations under the Credit Facility are general, unsecured senior obligations of the Company and the Guarantor Subsidiaries and rank equally in right of payment with all our and the Guarantor Subsidiaries’ existing and future unsecured senior indebtedness. Our obligations under the Credit Facility are effectively subordinated to our and the Guarantor Subsidiaries’ existing and future secured indebtedness with respect to any assets comprising security or collateral for such indebtedness. The Credit Facility contains various representations, warranties and covenants which require, among other things, that the Company maintain (1) a minimum level of Consolidated Tangible Net Worth ( $586.2 million at December 31, 2019 and subject to increase over time based on earnings and proceeds from equity offerings), (2) a leverage ratio not in excess of 60% , and (3) either a minimum Interest Coverage Ratio of 1.5 to 1.0 or a minimum amount of available liquidity. In addition, the Credit Facility contains covenants that limit the Company's number of unsold housing units and model homes, as well as the amount of Investments in Unrestricted Subsidiaries and Joint Ventures. At December 31, 2019 , the Company was in compliance with all financial covenants of the Credit Facility. Notes Payable - Financial Services The MIF Mortgage Warehousing Agreement is used to finance eligible residential mortgage loans originated by M/I Financial. The MIF Mortgage Warehousing Agreement provides for a maximum borrowing availability of $125 million which may be increased to $160 million from September 25, 2019 to October 15, 2019 and from November 15, 2019 to February 4, 2020 (periods of expected increases in the volume of mortgage originations). The MIF Mortgage Warehousing Agreement expires on June 19, 2020 . Interest on amounts borrowed under the MIF Mortgage Warehousing Agreement is payable at a per annum rate equal to the floating LIBOR rate plus a spread of 200 basis points. The MIF Mortgage Warehousing Agreement also contains certain financial covenants. At December 31, 2019 , M/I Financial was in compliance with all financial covenants of the MIF Mortgage Warehousing Agreement. The MIF Mortgage Repurchase Facility is used to finance eligible residential mortgage loans originated by M/I Financial. The MIF Mortgage Repurchase Facility provides for a mortgage repurchase facility with a maximum borrowing availability of $65 million . The MIF Mortgage Repurchase Facility expires on October 26, 2020 . M/I Financial pays interest on each advance under the MIF Mortgage Repurchase Facility at a per annum rate equal to the floating LIBOR rate plus 175 or 200 basis points depending on the loan type. The MIF Mortgage Repurchase Facility also contains certain financial covenants. At December 31, 2019 , M/I Financial was in compliance with all financial covenants of the MIF Mortgage Repurchase Facility. At each of December 31, 2019 and 2018, M/I Financial’s total combined maximum borrowing availability under the two credit facilities was $225.0 million . At December 31, 2019 and December 31, 2018 , M/I Financial had $136.9 million and $153.2 million outstanding on a combined basis under its credit facilities, respectively. Senior Notes As of both December 31, 2019 and 2018 , we had $250.0 million of 2025 Senior Notes outstanding. The 2025 Senior Notes bear interest at a rate of 5.625% per year, payable semiannually in arrears on February 1 and August 1 of each year, and mature on August 1, 2025 . We may redeem all or any portion of the 2025 Senior Notes on or after August 1, 2020 at a stated redemption price, together with accrued and unpaid interest thereon. The redemption price will initially be 104.219% of the principal amount outstanding, but will decline to 102.813% of the principal amount outstanding if redeemed during the 12-month period beginning on August 1, 2021, will further decline to 101.406% of the principal amount outstanding if redeemed during the 12-month period beginning on August 1, 2022 and will further decline to 100.000% of the principal amount outstanding if redeemed on or after August 1, 2023, but prior to maturity. As of both December 31, 2019 and 2018 , we had $300.0 million of our 2021 Senior Notes outstanding. The 2021 Senior Notes bear interest at a rate of 6.75% per year, payable semiannually in arrears on January 15 and July 15 of each year, and mature on January 15, 2021 . As of January 15, 2020, we were permitted to redeem all or any portion of the 2021 Senior Notes at 100.000% of the principal amount outstanding. The 2025 Senior Notes and the 2021 Senior Notes contain certain covenants, as more fully described and defined in the indenture governing the 2025 Senior Notes and the indenture governing the 2021 Senior Notes, which limit the ability of the Company and the restricted subsidiaries to, among other things: incur additional indebtedness; make certain payments, including dividends, or repurchase any shares, in an aggregate amount exceeding our “restricted payments basket”; make certain investments; and create or incur certain liens, consolidate or merge with or into other companies, or liquidate or sell or transfer all or substantially all of our assets. These covenants are subject to a number of exceptions and qualifications as described in the indenture governing the 2025 Senior Notes and the indenture governing the 2021 Senior Notes. As of December 31, 2019 , the Company was in compliance with all terms, conditions, and covenants under the indentures. The 2025 Senior Notes and the 2021 Senior Notes are fully and unconditionally guaranteed jointly and severally on a senior unsecured basis by the Guarantor Subsidiaries. The 2025 Senior Notes and the 2021 Senior Notes are general, unsecured senior obligations of the Company and the Guarantor Subsidiaries and rank equally in right of payment with all our and the Guarantor Subsidiaries’ existing and future unsecured senior indebtedness. The 2025 Senior Notes and the 2021 Senior Notes are effectively subordinated to our and the Guarantor Subsidiaries’ existing and future secured indebtedness with respect to any assets comprising security or collateral for such indebtedness. The indenture governing the 2025 Senior Notes and the indenture governing the 2021 Senior Notes limit our ability to pay dividends on, and repurchase, our common shares and any of our preferred shares then outstanding to the amount of the positive balance in our “restricted payments basket,” as defined in the indentures. In each case, the “restricted payments basket” is equal to $125.0 million plus (1) 50% of our aggregate consolidated net income (or minus 100% of our aggregate consolidated net loss) from October 1, 2015, excluding income or loss from Unrestricted Subsidiaries, plus (2) 100% of the net cash proceeds from either contributions to the common equity of the Company after December 1, 2015 or the sale of qualified equity interests after December 1, 2015, plus other items and subject to other exceptions. The positive balance in our restricted payments basket was $264.5 million and $215.2 million at December 31, 2019 and 2018 , respectively. The determination to pay future dividends on, or make future repurchases of, our common shares will be at the discretion of our board of directors and will depend upon our results of operations, financial condition, capital requirements and compliance with debt covenants, and other factors deemed relevant by our board of directors. On January 22, 2020 , the Company issued $400.0 million aggregate principal amount of 4.95% Senior Notes due 2028 (the “2028 Senior Notes”). The 2028 Senior Notes bear interest at a rate of 4.95% per year, payable semiannually in arrears on February 1 and August 1 of each year (commencing on August 1, 2020), and mature on February 1, 2028 . We may redeem all or any portion of the 2028 Senior Notes on or after February 1, 2023 at a stated redemption price, together with accrued and unpaid interest thereon. The redemption price will initially be 103.713% of the principal amount outstanding, but will decline to 102.475% of the principal amount outstanding if redeemed during the 12 month period beginning on February 1, 2024, will further decline to 101.238% of the principal amount outstanding if redeemed during the 12-month period beginning on February 1, 2025 and will further decline to 100.000% of the principal amount outstanding if redeemed on or after February 1, 2026, but prior to maturity. The 2028 Senior Notes are fully and unconditionally guaranteed jointly and severally on a senior unsecured basis by the Guarantor Subsidiaries. The 2028 Senior Notes are general, unsecured senior obligations of the Company and the Guarantor Subsidiaries and rank equally in right of payment with all our and the Guarantor Subsidiaries’ existing and future unsecured senior indebtedness. The 2028 Senior Notes are effectively subordinated to our and the Guarantor Subsidiaries’ existing and future secured indebtedness with respect to any assets comprising security or collateral for such indebtedness.The 2028 Senior Notes contain covenants substantially similar to the covenants described above for the 2025 Senior Notes, including the limitation on our ability to pay dividends on, and repurchase, our common shares and any of our preferred shares then outstanding to the amount of the positive balance in our “restricted payments basket,” as more fully described and defined in the indenture governing the 2028 Senior Notes. The Company used a portion of the net proceeds from the issuance of the 2028 Senior Notes to redeem all of its outstanding 2021 Senior Notes at 100.000% of the principal amount outstanding on January 22, 2020. Notes Payable - Other The Company had other borrowings, which are reported in Notes Payable - Other in our Consolidated Balance Sheets, totaling $5.8 million and $5.9 million as of December 31, 2019 and 2018 , respectively, which are comprised of notes payable acquired in the normal course of business. These other borrowings are included in the debt maturities schedule below. Maturities over the next five years with respect to the Company’s debt as of December 31, 2019 are as follows: Debt Maturities (In thousands) 2020 $ 140,097 2021 367,215 (a) 2022 1,039 2023 304 2024 77 Thereafter 250,000 Total $ 758,732 (a) In January 2020 we issued $400 million of the 2028 Senior Notes for net proceeds of approximately $393.9 million and used a portion of the net proceeds from this offering to redeem, at par, all $300.0 million aggregate principal amount of our outstanding 2021 Senior Notes. |
Acquisition and Goodwill (Notes
Acquisition and Goodwill (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Acquisition and Goodwill [Abstract] | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | Acquisition and Goodwill Acquisition In March 2018, we entered the Detroit, Michigan market through the acquisition of the homebuilding assets and operations of Pinnacle Homes for a purchase price of $101.0 million . The results of Pinnacle Homes’ operations have been included in our financial statements since March 1, 2018, the effective date of the acquisition. As a result of the transaction, we recorded $16.4 million of goodwill (all of which is tax deductible) which relates to expected synergies from establishing a market presence in Detroit, the experience and knowledge of the acquired workforce and the capital-efficient operating structure of the business acquired. The remaining basis of $84.6 million is almost entirely comprised of the fair value of the acquired inventory with an insignificant amount attributable to other assets and liabilities. Goodwill Goodwill represents the excess of the purchase price paid over the fair value of the net assets acquired and liabilities assumed in business combinations. In connection with the Company’s acquisition of the homebuilding assets and operations of Pinnacle Homes in Detroit, Michigan described above, the Company recorded goodwill of $16.4 million , which is included as Goodwill in our Consolidated Balance Sheets as of both December 31, 2019 and 2018. This amount was based on the estimated fair values of the acquired assets and liabilities at the date of the acquisition in accordance with ASC 350, Intangibles, Goodwill and Other (“ASC 350”). In accordance with ASC 350, the Company analyzes goodwill for impairment on an annual basis (or more often if indicators of impairment exist). The Company performs a qualitative assessment to determine whether the existence of events or circumstances leads to a determination that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount. When performing a qualitative assessment, the Company evaluates qualitative factors such as: (1) macroeconomic conditions, such as a deterioration in general economic conditions; (2) industry and market considerations, such as deterioration in the environment in which the entity operates; (3) cost factors, such as increases in raw materials and labor costs; and (4) overall financial performance, such as negative or declining cash flows or a decline in actual or planned revenue or earnings, to determine if it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount. If the qualitative assessment indicates that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, then a quantitative assessment is performed to determine the reporting unit’s fair value. If the reporting unit’s carrying value exceeds its fair value, then an impairment loss is recognized for the amount of the excess of the carrying amount over the reporting unit’s fair value. The Company performed its annual goodwill impairment analysis during the fourth quarter of 2019, and as no indicators for impairment existed at December 31, 2019 , no impairment was recorded. In addition, no indicators for impairment existed at December 31, 2018. The evaluation of goodwill for possible impairment includes estimating fair value using one or a combination of valuation techniques, such as discounted cash flows. These valuations require the Company to make estimates and assumptions regarding future operating results, cash flows, changes in capital expenditures, selling prices, profitability, and the cost of capital. Although the Company believes its assumptions and estimates are reasonable, deviations from the assumptions and estimates could produce a materially different result. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2019 | |
Loss per Share [Abstract] | |
Earnings Per Share [Text Block] | Earnings Per Share The table below presents a reconciliation between basic and diluted weighted average shares outstanding, net income available to common shareholders and basic and diluted income per share for the years ended December 31, 2019, 2018 and 2017 : Year Ended December 31, (In thousands, except per share amounts) 2019 2018 2017 NUMERATOR Net income $ 127,587 $ 107,663 $ 72,081 Preferred stock dividends (a) — — (3,656 ) Excess of fair value over book value of preferred shares redeemed — — (2,257 ) Net income available to common shareholders 127,587 107,663 66,168 Interest on 3.25% convertible senior subordinated notes due 2017 (b) — — 1,106 Interest on 3.00% convertible senior subordinated notes due 2018 (c) — 407 2,113 Diluted income available to common shareholders $ 127,587 $ 108,070 $ 69,387 DENOMINATOR Basic weighted average shares outstanding 27,846 28,234 25,769 Effect of dilutive securities: Stock option awards 412 295 342 Deferred compensation awards 217 219 221 3.25% convertible senior subordinated notes due 2017 (b) — — 1,687 3.00% convertible senior subordinated notes due 2018 (c) — 430 2,669 Diluted weighted average shares outstanding - adjusted for assumed conversions 28,475 29,178 30,688 Earnings per common share Basic $ 4.58 $ 3.81 $ 2.57 Diluted $ 4.48 $ 3.70 $ 2.26 Anti-dilutive equity awards not included in the calculation of diluted earnings per common share 1 381 23 (a) The Company’s Articles of Incorporation authorize the issuance of up to 2,000,000 preferred shares, par value $.01 per share. On March 15, 2007, the Company issued 4,000,000 depositary shares, each representing 1/1000th of a 9.75% Series A Preferred Share of the Company (the “Series A Preferred Shares”), or 4,000 Series A Preferred Shares in the aggregate. On April 10, 2013, the Company redeemed 2,000 of its Series A Preferred Shares (and the 2,000,000 related depositary shares) for an aggregate redemption price of approximately $50.4 million in cash. On October 16, 2017, the Company redeemed the remaining 2,000 outstanding Series A Preferred Shares (and the 2,000,000 related depositary shares) for an aggregate redemption price of approximately $50.4 million in cash. The Company declared and paid a quarterly cash dividend of $609.375 per share on its then outstanding Series A Preferred Shares in each of the first three quarters of 2017, for aggregate dividend payments on the Series A Preferred Shares of $3.7 million for the year ended December 31, 2017. (b) On September 11, 2012, the Company issued $57.5 million aggregate principal amount of 3.25% Convertible Senior Subordinated Notes due 2017 (the “2017 Convertible Senior Subordinated Notes”). The 2017 Convertible Senior Subordinated Notes were scheduled to mature on September 15, 2017 and the deadline for holders to convert the 2017 Convertible Senior Subordinated Notes was September 13, 2017. As a result of conversion elections made by holders of the 2017 Convertible Senior Subordinated Notes, all $57.5 million aggregate principal amount of the 2017 Convertible Senior Subordinated Notes were converted and settled through the issuance of our common shares. In total, we issued approximately 2.4 million common shares (at a conversion price per common share of $23.80 ). (c) On March 1, 2013, the Company issued $86.3 million aggregate principal amount of 3.0% Convertible Senior Subordinated Notes due 2018 (the “2018 Convertible Senior Subordinated Notes”). The 2018 Convertible Senior Subordinated Notes were scheduled to mature on March 1, 2018 and the deadline for holders to convert the 2018 Convertible Senior Subordinated Notes was February 27, 2018. As a result of conversion elections made by holders of the 2018 Convertible Senior Subordinated Notes, (1) approximately $20.3 million in aggregate principal amount of the 2018 Convertible Senior Subordinated Notes were converted and settled through the issuance of approximately 0.629 million of our common shares (at a conversion price per common share of $32.31 ) and (2) the Company repaid in cash approximately $65.9 million in aggregate principal amount of the 2018 Convertible Senior Subordinated Notes at maturity. For the years ended December 31, 2018 and 2017, the effect of our convertible debt outstanding was included in the diluted earnings per share calculations. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes The Company records income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized based on future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and attributable to operating loss and tax credit carryforwards, if any. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which the temporary differences are expected to be recovered or paid. During the fourth quarter of 2019, President Trump signed into law the Taxpayer Certainty and Disaster Relief Act of 2019 (“Tax Extenders Act”), which temporarily renewed approximately two dozen credits that previously expired or were set to expire at the end of 2019. Notable for the Company was the retroactive extension of the energy efficient homes credit for 2018 through 2020. As a result, the Company recognized a $3.5 million tax benefit for the year ended December 31, 2019 . In accordance with ASC 740 , we evaluate our deferred tax assets, including the benefit from NOLs and tax credit carryforwards, if any, to determine if a valuation allowance is required. Companies must assess, using significant judgments, whether a valuation allowance should be established based on the consideration of all available evidence using a “more likely than not” standard with significant weight being given to evidence that can be objectively verified. This assessment gives appropriate consideration to all positive and negative evidence related to the realization of the deferred tax assets and considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the length of statutory carryforward periods, our experience with operating losses and our experience of utilizing tax credit carryforwards and tax planning alternatives. Based upon a review of all available evidence, we believe our deferred tax assets were fully realizable in all periods presented. At December 31, 2019 , the Company’s total deferred tax assets were $20.5 million which is offset by $10.9 million of total deferred tax liabilities for a $9.6 million net deferred tax asset which is reported on the Company’s Consolidated Balance Sheets. The tax effects of the significant temporary differences that comprise the deferred tax assets and liabilities are as follows: December 31, (In thousands) 2019 2018 Deferred tax assets: Warranty, insurance and other accruals $ 8,114 $ 8,218 Equity-based compensation 2,109 4,096 Inventory 4,254 4,441 Operating lease liabilities 4,613 — State taxes 213 185 Net operating loss carryforward 754 3,240 Deferred charges 426 — Total deferred tax assets $ 20,483 $ 20,180 Deferred tax liabilities: Federal effect of state deferred taxes $ 476 $ 1,079 Depreciation 5,288 4,801 Operating lease right-of-use assets 4,613 — Prepaid expenses 475 285 Other — 533 Total deferred tax liabilities $ 10,852 $ 6,698 Net deferred tax asset $ 9,631 $ 13,482 The provision from income taxes consists of the following: Year Ended December 31, (In thousands) 2019 2018 2017 Current: Federal $ 29,602 $ 24,408 $ 33,392 State 4,985 4,261 2,414 $ 34,587 $ 28,669 $ 35,806 Year Ended December 31, (In thousands) 2019 2018 2017 Deferred: Federal $ 1,490 $ 2,333 $ 11,916 State 2,361 2,624 521 $ 3,851 $ 4,957 $ 12,437 Total $ 38,438 $ 33,626 $ 48,243 For 2019, 2018 and 2017 , the Company’s effective tax rate was 23.15% , 23.80% , and 40.09% , respectively. The decrease in 2019’s effective tax rate from 2018 was primarily attributable to an increased tax benefit from equity compensation. The decrease in the effective tax rate in 2018 from 2017 was primarily attributable to the Tax Cuts and Jobs Act of 2017 (the “2017 Tax Act”) which included the reduction of the corporate income tax rate from 35% to 21% , partially offset by the repeal of the domestic production activity deduction and other non-deductible costs. Also, as a result of the 2017 Tax Act, the Company revalued its deferred tax assets and recognized a $6.5 million non-cash tax expense in 2017. Reconciliation of the differences between income taxes computed at the federal statutory tax rate and consolidated benefit from income taxes are as follows: Year Ended December 31, (In thousands) 2019 2018 2017 Federal taxes at statutory rate $ 34,865 $ 29,671 $ 42,113 State and local taxes – net of federal tax benefit 5,981 5,636 3,420 Deferred tax asset re-measurement as a result of 2017 Tax Act — — 6,520 Equity Compensation (1,251 ) (254 ) (1,368 ) Manufacturing deduction — — (3,262 ) Federal tax credits (3,493 ) (2,817 ) — Other 2,336 1,390 820 Total $ 38,438 $ 33,626 $ 48,243 The Company files income tax returns in the U.S. federal jurisdiction, and various states. The Company is no longer subject to U.S. federal, state or local examinations by tax authorities for years before 2015. The Company is audited from time to time, and if any adjustments are made, they would be either immaterial or reserved. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in tax expense. At December 31, 2019 , 2018 and 2017 , we had no unrecognized tax benefits due to the lapse of the statute of limitations and completion of audits in prior years. We believe that our current income tax filing positions and deductions will be sustained on audit and do not anticipate any adjustments that will result in a material change. During 2016, the Company fully utilized its federal NOL carryforwards and federal credit carryforwards. The Company had $0.6 million of state NOL carryforwards, net of the federal benefit, at December 31, 2019 . Our state NOLs may be carried forward from one to 15 years, depending on the tax jurisdiction, with $0.5 million expiring between 2022 and 2027 and $0.1 million expiring between 2028 and 2032, absent sufficient state taxable income. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Business Segments The application of segment reporting requires significant judgment in determining our operating segments. Operating segments are defined as a component of an enterprise for which discrete financial information is available and is reviewed regularly by the Company’s chief operating decision makers to evaluate performance, make operating decisions and determine how to allocate resources. The Company’s chief operating decision makers evaluate the Company’s performance in various ways, including: (1) the results of our 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 because each homebuilding division engages in business activities from which it earns revenue, primarily from the sale and construction of single-family attached and detached homes, acquisition and development of land, and the occasional sale of lots to third parties. Our financial services operations generate revenue primarily from the origination, sale and servicing of mortgage loans and title services primarily for purchasers of the Company’s homes and are included in our financial services reportable segment. Corporate is a non-operating segment that develops and implements strategic initiatives and supports our operating segments by centralizing key administrative functions such as accounting, finance, treasury, information technology, insurance and risk management, legal, marketing and human resources. During 2019, we decided to wind down our Washington, D.C. operations, which was substantially complete by December 31, 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 operating segments (and our remaining Washington, D.C. operations, which was immaterial as of December 31, 2019) into our existing Southern region based on the aggregation criteria described in ASC 280. 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 Consolidated Balance Sheets, Statement of Income or Statement of Cash Flows for the periods presented. As a result of this re-evaluation and in accordance with the aggregation criteria defined in ASC 280, we have determined our reportable segments as follows: Northern homebuilding, Southern homebuilding, and financial services operations. The homebuilding operating segments included in each reportable segment have been aggregated because they share similar aggregation characteristics as 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. We may, however, be required to reclassify our reportable segments if markets that currently are being aggregated do not continue to share these aggregation characteristics. 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 The following table shows, by segment, revenue, operating income and interest expense for 2019, 2018 and 2017 , as well as the Company’s income before income taxes for such periods: Year Ended December 31, (In thousands) 2019 2018 2017 Revenue: Northern homebuilding $ 1,027,291 $ 933,119 $ 742,577 Southern homebuilding 1,417,676 1,300,967 1,169,701 Financial services (a) 55,323 52,196 49,693 Total revenue $ 2,500,290 $ 2,286,282 $ 1,961,971 Operating income: Northern homebuilding (b) $ 96,239 $ 86,131 $ 81,522 Southern homebuilding (c) 115,082 95,912 72,396 Financial services (a) 27,350 27,482 27,288 Less: Corporate selling, general and administrative expense (51,582 ) (46,364 ) (42,547 ) Total operating income (b) (c) (d) $ 187,089 $ 163,161 $ 138,659 Interest expense: Northern homebuilding $ 7,474 $ 7,142 $ 5,010 Southern homebuilding 10,250 10,073 11,107 Financial services (a) 3,651 3,269 2,757 Total interest expense $ 21,375 $ 20,484 $ 18,874 Equity in income from joint venture arrangements $ (311 ) $ (312 ) $ (539 ) Acquisition and integration costs (e) — 1,700 — Income before income taxes $ 166,025 $ 141,289 $ 120,324 Depreciation and amortization: Northern homebuilding $ 2,944 $ 2,448 $ 2,069 Southern homebuilding 4,778 4,472 4,579 Financial services 2,095 1,281 1,503 Corporate 6,133 6,330 6,023 Total depreciation and amortization $ 15,950 $ 14,531 $ 14,174 (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 $0.6 million and 5.1 million of acquisition-related charges taken during 2019 and 2018 , respectively, as a result of our acquisition of Pinnacle Homes in Detroit, Michigan on March 1, 2018. (c) Includes an $8.5 million charge for stucco-related repair costs in certain of our Florida communities (as more fully discussed in Note 8 to our Consolidated Financial Statements) taken during 2017 . (d) For the years ended December 31, 2019, 2018 and 2017 , total operating income was reduced by $5.0 million , $5.8 million and $7.7 million , respectively, related to asset impairment charges taken during the period. (e) 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 December 31, 2019 and 2018 : December 31, 2019 (In thousands) Northern Southern Corporate, Financial Services and Unallocated Total Deposits on real estate under option or contract $ 3,655 $ 24,877 $ — $ 28,532 Inventory (a) 783,972 957,003 — 1,740,975 Investments in joint venture arrangements 1,672 36,213 — 37,885 Other assets (d) 21,564 52,662 (b) 223,976 298,202 Total assets $ 810,863 $ 1,070,755 $ 223,976 $ 2,105,594 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 $18.4 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 9 |
Supplemental Guarantor Informat
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 |
Supplementary Financial Data
Supplementary Financial Data | 12 Months Ended |
Dec. 31, 2019 | |
Supplementary Financial Data [Abstract] | |
Additional Financial Information Disclosure [Text Block] | Supplementary Financial Data The following tables set forth our selected consolidated financial and operating data for the quarterly periods indicated. March 31, 2019 June 30, September 30, 2019 December 31, 2019 (In thousands, except per share amounts) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenue $ 481,109 $ 623,686 $ 653,345 $ 742,150 Gross margin (a) $ 92,642 $ 119,829 $ 134,181 $ 142,775 Net income to common shareholders (a) $ 17,723 $ 30,246 $ 37,838 $ 41,780 Earnings per common share: (c) Basic $ 0.64 $ 1.10 $ 1.35 $ 1.48 Diluted $ 0.63 $ 1.08 $ 1.32 $ 1.44 Weighted average common shares outstanding: Basic 27,498 27,599 27,981 28,297 Diluted 27,970 28,090 28,598 29,049 March 31, June 30, September 30, 2018 December 31, 2018 (In thousands, except per share amounts) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenue $ 437,857 $ 558,098 $ 567,842 $ 722,485 Gross margin (b) $ 89,155 $ 108,762 $ 115,813 $ 130,039 Net income to common shareholders (b) $ 18,063 $ 27,911 $ 29,282 $ 32,407 Earnings per common share: (c) Basic $ 0.64 $ 0.98 $ 1.03 $ 1.17 Diluted $ 0.60 $ 0.96 $ 1.01 $ 1.15 Weighted average common shares outstanding: Basic 28,124 28,571 28,469 27,774 Diluted 30,544 29,101 28,906 28,181 (a) Gross margin and net income to common shareholders include $0.4 million , $0.1 million and $0.1 million of charges related to acquisition-related charges taken during 2019 as a result of our acquisition of Pinnacle Homes in Detroit, Michigan on March 1, 2018 (as more fully discussed in Note 12 to our Consolidated Financial Statements) taken during the first, second and third quarters of 2019, respectively, and $5.0 million of impairment charges taken during the fourth quarter of 2019. (b) Gross margin and net income to common shareholders include $0.9 million , $3.0 million , $0.7 million and $0.6 million of charges related to acquisition-related charges taken during 2018 as a result of our acquisition of Pinnacle Homes on March 1, 2018 taken during the first, second, third and fourth quarters of 2018, respectively, and $5.8 million of impairment charges taken during the fourth quarter of 2018. (c) Due to rounding, the sum of quarterly results may not equal the total for the year. Additionally, quarterly and year-to-date computations of per share amounts are made independently. We typically experience significant seasonality and quarter-to-quarter variability in our operating results. In general, homes delivered increase substantially in the second half of the year compared to the first half of the year as we sell more homes during the first and second quarters which results in more homes being delivered in the third and fourth quarters. |
Share Repurchase Program (Notes
Share Repurchase Program (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Share Repurchase Program [Abstract] | |
Treasury Stock [Text Block] | Share Repurchase Program On August 14, 2018, the Company announced that its Board of Directors authorized a share repurchase program (the “2018 Share Repurchase Program”) pursuant to which the Company may purchase up to $50 million of its outstanding common shares through open market transactions, privately negotiated transactions or otherwise in accordance with all applicable laws. During the year ended December 31, 2019 , the Company repurchased 0.2 million outstanding common shares at an aggregate purchase price of $5.2 million under the 2018 Share Repurchase Program. The Company did not repurchase any shares during the second, third or fourth quarters of 2019. As of December 31, 2019 , the Company has repurchased 1.3 million outstanding common shares at an aggregate purchase price of $30.9 million under the 2018 Share Repurchase Program and $19.1 million remains available for repurchases under the 2018 Share Repurchase Program. The timing, amount and other terms and conditions of any additional repurchases under the 2018 Share Repurchase Program will be determined by the Company’s management at its discretion based on a variety of factors, including the market price of the Company’s common shares, corporate considerations, general market and economic conditions and legal requirements. The 2018 Share Repurchase Program does not have an expiration date and the Board may modify, discontinue or suspend it at any time. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Business, Policy [Policy Text Block] | Business. M/I Homes, Inc. and its subsidiaries (the “Company” or “we”) is engaged primarily in the construction and sale of single-family residential homes in Columbus and Cincinnati, Ohio; Indianapolis, Indiana; Chicago, Illinois; Minneapolis/St. Paul, Minnesota; Detroit, Michigan; Tampa, Orlando and Sarasota, Florida; Austin, Dallas/Fort Worth, Houston and San Antonio, Texas; and Charlotte and Raleigh, North Carolina. The Company designs, sells and builds single-family homes on developed lots, which it develops or purchases ready for home construction. The Company also purchases undeveloped land to develop into developed lots for future construction of single-family homes and, on a limited basis, for sale to others. Our homebuilding operations operate across two geographic regions in the United States. Within these regions, our operations have similar economic characteristics; therefore, they have been aggregated into two reportable homebuilding segments: Southern homebuilding and Northern homebuilding. The Company conducts mortgage financing activities through its 100%-owned subsidiary, M/I Financial, LLC (“M/I Financial”), which originates mortgage loans primarily for purchasers of the Company’s homes. The loans and the servicing rights are generally sold to outside mortgage lenders. The Company and M/I Financial also operate 100% and majority-owned subsidiaries that provide title services to purchasers of the Company’s homes. Our mortgage banking and title service activities have similar economic characteristics; therefore, they have been aggregated into one reportable segment, the financial services segment. |
Basis of Presentation, Policy [Policy Text Block] | Basis of Presentation. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include the accounts of M/I Homes, Inc. and those of our consolidated subsidiaries, partnerships and other entities in which we have a controlling financial interest, and of variable interest entities in which we are deemed the primary beneficiary. Intercompany balances and transactions have been eliminated in consolidation. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from these estimates and have a significant impact on the financial condition and results of operations and cash flows. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Cash, Cash Equivalents and Restricted Cash. Cash and cash equivalents are liquid investments with an initial maturity of three months or less. Amounts in transit from title companies for homes delivered are included in this balance at December 31, 2019 and 2018 , respectively. Restricted cash consists of amounts held in restricted accounts as collateral for letters of credit as well as cash held in escrow. Cash, Cash Equivalents and Restricted Cash includes restricted cash balances of $0.2 million and $0.7 million at December 31, 2019 and 2018 , respectively. |
Mortgage Banking Activity [Policy Text Block] | Mortgage Loans Held for Sale. Mortgage loans held for sale consists primarily of single-family residential loans collateralized by the underlying property. Generally, all of the mortgage loans and related servicing rights are sold to third-party investors shortly after origination. Refer to the Revenue Recognition policy described below for additional discussion. |
Inventory, Policy [Policy Text Block] | Inventory. Inventory includes the costs of land acquisition, land development and home construction, capitalized interest, real estate taxes, direct overhead costs incurred during development and home construction, and common costs that benefit the entire community, less impairments, if any. Land acquisition, land development and common costs (both incurred and estimated to be incurred) are typically allocated to individual lots based on the total number of lots expected to be closed in each community or phase, or based on the relative fair value, the relative sales value or the front footage method of each lot. Any changes to the estimated total development costs of a community or phase are allocated proportionately to homes remaining in the community or phase and homes previously closed. The cost of individual lots is transferred to homes under construction when home construction begins. Home construction costs are accumulated on a specific identification basis. Costs of home deliveries include the specific construction cost of the home and the allocated lot costs. Such costs are charged to cost of sales simultaneously with revenue recognition, as discussed above. When a home is closed, we typically have not yet paid all incurred costs necessary to complete the home. As homes close, we compare the home construction budget to actual recorded costs to date to estimate the additional costs to be incurred from our subcontractors related to the home. We record a liability and a corresponding charge to cost of sales for the amount we estimate will ultimately be paid related to that home. We monitor the accuracy of such estimates by comparing actual costs incurred in subsequent months to the estimate, although actual costs to complete a home in the future could differ from our estimates. Inventory is recorded at cost, unless events and circumstances indicate that the carrying value of the inventory is impaired, at which point the inventory is written down to fair value as required by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360-10, Property, Plant and Equipment (“ASC 360”). The Company assesses inventory for recoverability on a quarterly basis to determine if events or changes in local or national economic conditions indicate that the carrying amount of an asset may not be recoverable. In conducting our quarterly review for indicators of impairment on a community level, we evaluate, among other things, margins on sales contracts in backlog, the margins on homes that have been delivered, expected changes in margins with regard to future home sales over the life of the community, expected changes in margins with regard to future land sales, the value of the land itself as well as any results from third party appraisals. We pay particular attention to communities in which inventory is moving at a slower than anticipated absorption pace, and communities whose average sales price and/or margins are trending downward and are anticipated to continue to trend downward. We also evaluate communities where management intends to lower the sales price or offer incentives in order to improve absorptions even if the community’s historical results do not indicate a potential for impairment. From the review of all of these factors, we identify communities whose carrying values may exceed their estimated undiscounted future cash flows and run a test for recoverability. For those communities whose carrying values exceed the estimated undiscounted future cash flows and which are deemed to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the communities exceeds the estimated fair value. Due to the fact that the Company’s cash flow models and estimates of fair values are based upon management estimates and assumptions, unexpected changes in market conditions and/or changes in management’s intentions with respect to the inventory may lead the Company to incur additional impairment charges in the future. Our determination of fair value is based on projections and estimates, which are Level 3 measurement inputs. Because each inventory asset is unique, there are numerous inputs and assumptions used in our valuation techniques, including estimated average selling price, construction and development costs, absorption pace (reflecting any product mix change strategies implemented or to be implemented), selling strategies, alternative land uses (including disposition of all or a portion of the land owned), or discount rates, which could materially impact future cash flow and fair value estimates. As of December 31, 2019 , our projections generally assume a gradual improvement in market conditions over time. If communities are not recoverable based on estimated future undiscounted cash flows, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. The fair value of a community is estimated by discounting management’s cash flow projections using an appropriate risk-adjusted interest rate. As of both December 31, 2019 and December 31, 2018 , we utilized discount rates ranging from 13% to 16% in our valuations. The discount rate used in determining each asset’s estimated fair value reflects the inherent risks associated with the related estimated cash flow stream, as well as current risk-free rates available in the market and estimated market risk premiums. For example, construction in progress inventory, which is closer to completion, will generally require a lower discount rate than land under development in communities consisting of multiple phases spanning several years of development. Our quarterly assessments reflect management’s best estimates. Due to the inherent uncertainties in management’s estimates and uncertainties related to our operations and our industry as a whole, we are unable to determine at this time if and to what extent continuing future impairments will occur. Additionally, due to the volume of possible outcomes that can be generated from changes in the various model inputs for each community, we do not believe it is possible to create a sensitivity analysis that can provide meaningful information for the users of our consolidated financial statements. Further details relating to our assessment of inventory for recoverability are included in Note 3 to our Consolidated Financial Statements. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment-net. The Company records property and equipment at cost and subsequently depreciates the assets using both straight-line and accelerated methods. Following are the major classes of depreciable assets and their estimated useful lives: Year Ended December 31, (In thousands) 2019 2018 Land, building and improvements $ — $ 11,824 (a) Office furnishings, leasehold improvements, computer equipment and computer software 28,207 29,920 Transportation and construction equipment 10,061 10,064 Property and equipment 38,268 51,808 Accumulated depreciation (16,150 ) (22,413 ) Property and equipment, net $ 22,118 $ 29,395 (a) Includes the Company’s home office building in Columbus, Ohio that met the sale classification criteria for the period ended September 30, 2018 as it was being actively marketed. The carrying value of the building as of December 31, 2018 was $5.6 million . The Company measures assets held for sale at fair value on a nonrecurring basis and records impairment charges when the assets are deemed to be impaired. Assets held for sale are reported at the lower of cost or fair value. Costs to sell are accrued separately. The Company estimated the fair value of the building using the market values for similar properties, and the building was considered a Level 2 asset as defined in ASC 820, “Fair Value Measurements.” During the twelve months ended December 31, 2019, the Company did not record any impairment charges on its asset held for sale. The Company sold the building on December 31, 2019. Estimated Useful Lives Building and improvements 35 years Office furnishings, leasehold improvements, computer equipment and computer software 3-7 years Transportation and construction equipment 5-25 years Depreciation expense was $5.9 million , $5.6 million and $4.1 million in 2019, 2018 and 2017 , respectively. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill. Goodwill represents the excess of the purchase price paid over the fair value of the net assets acquired and liabilities assumed in business combinations. As a result of the Company’s acquisition of the homebuilding assets and operations of Pinnacle Homes in Detroit, Michigan on March 1, 2018, the Company recorded goodwill of $16.4 million as of December 31, 2019 , which is included as Goodwill in our Consolidated Balance Sheets. This amount was based on the estimated fair values of the acquired assets and assumed liabilities at the date of the acquisition in accordance with ASC 350, Intangibles, Goodwill and Other (“ASC 350”). The Company performed its annual goodwill impairment analysis during the fourth quarter of 2019, and as no indicators for impairment existed at December 31, 2019 , no impairment was recorded. See Note 12 to the Company’s Consolidated Financial Statements for further discussion. |
Other Assets [Policy Text Block] | Other Assets. Other assets at December 31, 2019 and 2018 consisted of the following:. Year Ended December 31, (In thousands) 2019 2018 Development reimbursement receivable from local municipalities $ 16,083 $ 13,632 Mortgage servicing rights 9,614 6,477 Prepaid expenses 13,841 8,605 Prepaid acquisition costs 5,688 7,873 Other 25,085 24,207 Total other assets $ 70,311 $ 60,794 |
Extended Product Warranty, Policy [Policy Text Block] | Warranty Reserves. We use subcontractors for nearly all aspects of home construction. Although our subcontractors are generally required to repair and replace any product or labor defects, we are, during applicable warranty periods, ultimately responsible to the homeowner for making such repairs. As such, we record warranty reserves to cover our exposure to the costs for materials and labor not expected to be covered by our subcontractors to the extent they relate to warranty-type claims. Warranty reserves are established by charging cost of sales and crediting a warranty reserve for each home delivered. The amounts charged are estimated by management to be adequate to cover expected warranty-related costs under the Company’s warranty programs. Warranty reserves are recorded for warranties under our Home Builder’s Limited Warranty (“HBLW”) and our transferable structural warranty (see additional information in Note 8 to our Consolidated Financial Statements). The warranty reserves for the HBLW are established as a percentage of average sales price and adjusted based on historical payment patterns determined, generally, by geographic area and recent trends. Factors that are given consideration in determining the HBLW reserves include: (1) the historical range of amounts paid per average sales price on a home; (2) type and mix of amenity packages added to the home; (3) any warranty expenditures not considered to be normal and recurring; (4) timing of payments; (5) improvements in quality of construction expected to impact future warranty expenditures; and (6) conditions that may affect certain projects and require a different percentage of average sales price for those specific projects. Changes in estimates for warranties occur due to changes in the historical payment experience and differences between the actual payment pattern experienced during the period and the historical payment pattern used in our evaluation of the warranty reserve balance at the end of each quarter. Actual future warranty costs could differ from our current estimated amount. Our warranty reserves for our transferable structural warranty programs are established on a per-unit basis. While the structural warranty reserve is recorded as each house is delivered, the sufficiency of the structural warranty per unit charge and total reserve is re-evaluated on an annual basis, with the assistance of an actuary, using our own historical data and trends, industry-wide historical data and trends, and other project specific factors. The reserves are also evaluated quarterly and adjusted if we encounter activity that is inconsistent with the historical experience used in the annual analysis. These reserves are subject to variability due to uncertainties regarding structural defect claims for products we build, the markets in which we build, claim settlement history, insurance and legal interpretations, among other factors. Our warranty reserve amounts are based upon historical experience and geographic location. While we believe that our warranty reserves are sufficient to cover our projected costs, there can be no assurances that historical data and trends will accurately predict our actual warranty costs. At December 31, 2019 and 2018 , warranty reserves of $26.4 million and $26.5 million , respectively, are included in Other Liabilities on the Consolidated Balance Sheets. See Note 8 to our Consolidated Financial Statements for additional information related to our warranty reserves, including reserves related to stucco-related repairs in certain of our Florida communities. |
InsuranceDeductibleReservesPolicyPolicyTextBlock | Self-insurance Reserves. Self-insurance reserves are made for estimated liabilities associated with employee health care, workers’ compensation, and general liability insurance. Our workers’ compensation claims are insured by a third party. The reserves related to employee health care and workers’ compensation are based on historical experience and open case reserves. Our general liability claims are insured by a third party, subject to a self-insured retention (“SIR”). The Company records a reserve for general liability claims falling below the Company’s SIR. The reserve estimate is based on an actuarial evaluation of our past history of general liability claims, other industry specific factors and specific event analysis. At both December 31, 2019 and 2018 , self-insurance reserves of $2.7 million are included in Other Liabilities on the Consolidated Balance Sheets. The Company recorded expenses totaling $9.5 million , $9.2 million and $8.9 million for all self-insured and general liability claims during the years ended December 31, 2019, 2018 and 2017 , respectively. |
Other Liabilities [Policy Text Block] | Other Liabilities. Other liabilities at December 31, 2019 and 2018 consisted of the following: Year Ended December 31, (In thousands) 2019 2018 Accruals related to land development $ 48,694 $ 46,073 Warranty 26,420 26,459 Payroll and other benefits 35,125 31,428 Other 37,698 46,091 Total other liabilities $ 147,937 $ 150,051 |
Revenue [Policy Text Block] | Revenue Recognition. Revenue and the related profit from the sale of a home and revenue and the related profit from the sale of land to third parties are recognized in the financial statements on the date of closing if delivery has occurred, title has passed to the buyer, all performance obligations (as defined below) have been met, and control of the home or land is transferred to the buyer in an amount that reflects the consideration we expect to be entitled to in exchange for the home or land. If not received immediately upon closing, cash proceeds from home closings are held in escrow for the Company’s benefit, typically for up to three days, and are included in Cash, cash equivalents and restricted cash on the Consolidated Balance Sheets. Sales incentives vary by type of incentive and by amount on a community-by-community and home-by-home basis. The costs of any sales incentives in the form of free or discounted products and services provided to homebuyers are reflected in Land and housing costs in the Consolidated Statements of Income because such incentives are identified in our home purchase contracts with homebuyers as an intrinsic part of our single performance obligation to deliver and transfer title to their home for the transaction price stated in the contracts. Sales incentives that we may provide in the form of closing cost allowances are recorded as a reduction of housing revenue at the time the home is delivered. We record sales commissions within Selling expenses in the Consolidated Statements of Income when incurred (i.e., when the home is delivered) as the amortization period is generally one year or less and therefore capitalization is not required as part of the practical expedient for incremental costs of obtaining a contract. Contract liabilities include customer deposits related to sold but undelivered homes. Substantially all of our home sales are scheduled to close and be recorded to revenue within one year from the date of receiving a customer deposit. Contract liabilities expected to be recognized as revenue, excluding revenue pertaining to contracts that have an original expected duration of one year or less, is not material. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. All of our home purchase contracts have a single performance obligation as the promise to transfer the home is not separately identifiable from other promises in the contract and, therefore, not distinct. Our performance obligation, to deliver the agreed-upon home, is generally satisfied in less than one year from the original contract date. Deferred revenue resulting from uncompleted performance obligations existing at the time we deliver new homes to our homebuyers is not material. Although our third party land sale contracts may include multiple performance obligations, the revenue we expect to recognize in any future year related to remaining performance obligations, excluding revenue pertaining to contracts that have an original expected duration of one year or less, is not material. We do not disclose the value of unsatisfied performance obligations for land sale contracts with an original expected duration of one year or less. We recognize the majority of the revenue associated with our mortgage loan operations when the mortgage loans are sold and/or related servicing rights are sold to third party investors or retained and managed under a third party sub-service arrangement. The revenue recognized is reduced by the fair value of the related guarantee provided to the investor. The fair value of the guarantee is recognized in revenue when the Company is released from its obligation under the guarantee (note that guarantees are excluded from the scope of ASC 606). As of December 31, 2019 and 2018 , we retained mortgage servicing rights of 3,613 and 2,282 loans, respectively, for a total value of $9.6 million and $6.5 million , respectively. We recognize financial services revenue associated with our title operations as homes are delivered, closing services are rendered, and title policies are issued, all of which generally occur simultaneously as each home is delivered. All of the underwriting risk associated with title insurance policies is transferred to third-party insurers. The following table presents our revenues disaggregated by revenue source: Year Ended December 31, (Dollars in thousands) 2019 2018 2017 (a) Housing $ 2,420,348 $ 2,217,197 $ 1,878,572 Land sales 24,619 16,889 33,706 Financial services (b) 55,323 52,196 49,693 Total revenue $ 2,500,290 $ 2,286,282 $ 1,961,971 (a) Prior period amounts have not been adjusted under the cumulative catch-up transition method as a result of the adoption of ASU 2014-09, Revenue from Contracts with Customers , on January 1, 2018. (b) Revenues include hedging losses of $12.1 million and hedging gains of $3.6 million and $0.7 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Hedging gains (losses) do not represent revenues recognized from contracts with customers. Refer to Note 15 for presentation of our revenues disaggregated by geography. As our homebuilding operations accounted for over 97% of our total revenues for the years ended December 31, 2019, 2018 and 2017 , with most of those revenues generated from home purchase contracts with customers, we believe the disaggregation of revenues as disclosed above and in Note 15 fairly depict how the nature, amount, timing and uncertainty of cash flows are affected by economic factors. |
Cost of Goods and Service [Policy Text Block] | Land and Housing Cost of Sales. All associated homebuilding costs are charged to cost of sales in the period when the revenues from home deliveries are recognized. Homebuilding costs include: land and land development costs; home construction costs (including an estimate of the costs to complete construction); previously capitalized interest; real estate taxes; indirect costs; and estimated warranty costs. All other costs are expensed as incurred. Sales incentives, including pricing discounts and financing costs paid by the Company, are recorded as a reduction of revenue in the Company’s Consolidated Statements of Income. Sales incentives in the form of options or upgrades are recorded in homebuilding costs. |
Income Tax, Policy [Policy Text Block] | Income Taxes. The Company records income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized based on future tax consequences attributable to (1) temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and (2) operating loss and tax credit carryforwards, if any. Deferred tax assets and liabilities are measured using enacted tax rates in effect in the years in which those temporary differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period when the change is enacted. In accordance with ASC 740-10, Income Taxes (“ASC 740”) , we evaluate the realizability of our deferred tax assets, including the benefit from net operating losses (“NOLs”) and tax credit carryforwards, if any, to determine if a valuation allowance is required based on whether it is more likely than not (a likelihood of more than 50%) that all or any portion of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is primarily dependent upon the generation of future taxable income. In determining the future tax consequences of events that have been recognized in the consolidated financial statements or tax returns, judgment is required. This assessment gives appropriate consideration to all positive and negative evidence related to the realization of the deferred tax assets and considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the length of statutory carryforward periods, our experience with operating losses and our experience of utilizing tax credit carryforwards and tax planning alternatives. See Note 14 to our Consolidated Financial Statements for more information regarding our deferred tax assets. |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Share. The Company computes earnings per share in accordance with ASC 260, Earnings per Share , (“ASC 260”). Basic earnings per share is calculated by dividing income attributable to common shareholders by the weighted average number of common shares outstanding during each year. Diluted earnings per share gives effect to the potential dilution that could occur if securities or contracts to issue our common shares that are dilutive were exercised or converted into common shares or resulted in the issuance of common shares that then shared our earnings. In periods of net losses, no dilution is computed. See Note 13 to our Consolidated Financial Statements for more information regarding our earnings per share calculation. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Standards. In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (“ASU 2016-02”), which requires organizations that lease assets - referred to as “lessees” - to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Under ASU 2016-02, a lessee will be required to recognize assets and liabilities for all lease agreements. Lessor accounting remains substantially similar to current GAAP. In addition, disclosures of leasing activities will be expanded to include qualitative and specific quantitative information. For publicly traded companies, ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Following the issuance of ASU 2016-02, the FASB issued ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842 (“ASU 2018-01”), ASU No. 2018-10, Codification Improvements to Topic 842, Leases (“ASU 2018-10”), ASU No. 2018-11, Leases (Topic 842): Targeted Improvements (“ASU 2018-11”), and ASU No. 2018-20, Leases (Topic 842): Narrow-Scope Improvements (“ASU 2018-20”) . In March 2019, the FASB issued ASU No. 2019-01, Leases (Topic 842): Codification Improvements (“ASU 2019-01”) which clarifies how to apply certain aspects of the new lease standard as discussed in more detail below. These ASUs do not change the core principle of the guidance stated in ASU 2016-02, but are instead intended to clarify and improve the operability of certain topics addressed by ASU 2016-02 and provide practical expedients for certain aspects of the guidance to aid companies in transition. These additional ASUs have the same effective date and transition requirements as ASU 2016-02. We adopted ASU 2016-02 and the subsequently issued ASUs identified above on January 1, 2019 using the additional modified retrospective transition method in accordance with ASU 2018-11, which includes a cumulative catch-up in retained earnings on the initial date of adoption (i.e., the initial date of adoption method). The adoption of the new lease standard did not have any impact on our retained earnings. At January 1, 2019, we recognized Operating Right-of-Use (“ROU”) Assets and Operating Lease Liabilities of $20.9 million on our Consolidated Balance Sheets. As a result of adopting the standard, we added certain internal controls to our control framework and ensured that these controls were designed and operating as part of the implementation process. See Note 9 to the Company’s Consolidated Financial Statements for the additional expanded disclosures required by the new standard. In July 2019, the FASB issued ASU No. 2019-07, Codification Updates to SEC Sections - Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization and Miscellaneous Updates (SEC Update) (“ASU 2019-07”). ASU 2019-07 clarifies or improves the disclosure and presentation requirements of a variety of codification topics by aligning them with the SEC’s regulations, thereby eliminating redundancies and making the codification easier to apply. This ASU was effective upon issuance and did not have a significant impact on the Company’s Consolidated Financial Statements and disclosures. Impact of New Accounting Standards. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to estimate credit losses. ASU 2016-13 is effective for our fiscal year beginning January 1, 2020. Subsequent to the issuance of ASU 2016-13, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses (“ASU 2018-19”) in November 2018, ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments (“ASU 2019-04”) , in April 2019, and ASU No. 2019-05, Financial Instruments-Credit Losses (Topic 326) Targeted Transition Relief (“ASU 2019-05”) in May 2019. These ASUs do not change the core principle of the guidance in ASU 2016-13. Instead these amendments are intended to clarify and improve operability of certain topics included within the credit losses standard. These ASUs will have the same effective date and transition requirements as ASU 2016-13. The adoption of this ASU will not have a material impact on the Company’s Consolidated Financial Statements and disclosures. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”) . ASU 2018-13 modifies the disclosure requirements for fair value measurements and removes the requirement to disclose (1) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, (2) the policy for timing of transfers between levels, and (3) the valuation processes for Level 3 fair value measurements. ASU 2018-13 requires disclosure of changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For all entities, ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The adoption of this ASU will not have a material impact on the Company’s Consolidated Financial Statements and disclosures. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ("ASU 2019-12"), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for the Company beginning January 1, 2021. The Company is currently evaluating the impact of the adoption of ASU 2019-12 on its Consolidated Financial Statements and disclosures but does not expect a material impact to its Consolidated Financial Statements and disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table presents our revenues disaggregated by revenue source: Year Ended December 31, (Dollars in thousands) 2019 2018 2017 (a) Housing $ 2,420,348 $ 2,217,197 $ 1,878,572 Land sales 24,619 16,889 33,706 Financial services (b) 55,323 52,196 49,693 Total revenue $ 2,500,290 $ 2,286,282 $ 1,961,971 (a) Prior period amounts have not been adjusted under the cumulative catch-up transition method as a result of the adoption of ASU 2014-09, Revenue from Contracts with Customers , on January 1, 2018. (b) Revenues include hedging losses of $12.1 million and hedging gains of $3.6 million and $0.7 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Hedging gains (losses) do not represent revenues recognized from contracts with customers. |
Property, Plant and Equipment [Table Text Block] | Following are the major classes of depreciable assets and their estimated useful lives: Year Ended December 31, (In thousands) 2019 2018 Land, building and improvements $ — $ 11,824 (a) Office furnishings, leasehold improvements, computer equipment and computer software 28,207 29,920 Transportation and construction equipment 10,061 10,064 Property and equipment 38,268 51,808 Accumulated depreciation (16,150 ) (22,413 ) Property and equipment, net $ 22,118 $ 29,395 (a) Includes the Company’s home office building in Columbus, Ohio that met the sale classification criteria for the period ended September 30, 2018 as it was being actively marketed. The carrying value of the building as of December 31, 2018 was $5.6 million . The Company measures assets held for sale at fair value on a nonrecurring basis and records impairment charges when the assets are deemed to be impaired. Assets held for sale are reported at the lower of cost or fair value. Costs to sell are accrued separately. The Company estimated the fair value of the building using the market values for similar properties, and the building was considered a Level 2 asset as defined in ASC 820, “Fair Value Measurements.” During the twelve months ended December 31, 2019, the Company did not record any impairment charges on its asset held for sale. The Company sold the building on December 31, 2019. Estimated Useful Lives Building and improvements 35 years Office furnishings, leasehold improvements, computer equipment and computer software 3-7 years Transportation and construction equipment 5-25 years |
Schedule of Other Assets [Table Text Block] | Other assets at December 31, 2019 and 2018 consisted of the following:. Year Ended December 31, (In thousands) 2019 2018 Development reimbursement receivable from local municipalities $ 16,083 $ 13,632 Mortgage servicing rights 9,614 6,477 Prepaid expenses 13,841 8,605 Prepaid acquisition costs 5,688 7,873 Other 25,085 24,207 Total other assets $ 70,311 $ 60,794 |
Other Liabilities [Table Text Block] | Other liabilities at December 31, 2019 and 2018 consisted of the following: Year Ended December 31, (In thousands) 2019 2018 Accruals related to land development $ 48,694 $ 46,073 Warranty 26,420 26,459 Payroll and other benefits 35,125 31,428 Other 37,698 46,091 Total other liabilities $ 147,937 $ 150,051 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Payment Arrangement, Activity [Table Text Block] | Following is a summary of stock option activity for the year ended December 31, 2019 , relating to the stock options awarded under the 2018 LTIP and the 2009 LTIP: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (a) (In thousands) Options outstanding at December 31, 2018 2,212,690 $ 22.82 6.58 $ 3,123 Granted 423,500 27.99 Exercised (954,370 ) 20.60 Forfeited (58,100 ) 27.37 Options outstanding at December 31, 2019 1,623,720 $ 25.30 7.22 $ 22,836 Options vested or expected to vest at December 31, 2019 1,571,685 $ 25.25 7.19 $ 22,198 Options exercisable at December 31, 2019 741,520 $ 22.90 5.97 $ 12,198 (a) Intrinsic value is defined as the amount by which the fair value of the underlying common shares exceeds the exercise price of the option. |
Five Year Service Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The fair value of our five-year service-based stock options granted during the years ended December 31, 2019, 2018 and 2017 was established at the date of grant using the Black-Scholes pricing model, with the weighted average assumptions as follows: Year Ended December 31, 2019 2018 2017 Risk-free interest rate 2.51 % 2.72 % 1.96 % Expected volatility 28.81 % 32.01 % 39.49 % Expected term (in years) 5.9 5.7 5.9 Weighted average grant date fair value of options granted during the period $ 9.06 $ 11.31 $ 9.45 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The table below shows the notional amounts of our financial instruments at December 31, 2019 and 2018 : December 31, Description of Financial Instrument (in thousands) 2019 2018 Whole loan contracts and related committed IRLCs $ 1,445 $ 5,823 Uncommitted IRLCs 87,340 76,117 FMBSs related to uncommitted IRLCs 88,000 83,000 Whole loan contracts and related mortgage loans held for sale 6,125 14,285 FMBSs related to mortgage loans held for sale 144,000 150,000 Mortgage loans held for sale covered by FMBSs 144,411 149,980 |
Schedule of Derivative Instruments, (Loss) Gain in Statement of Financial Performance [Table Text Block] | The following table sets forth the amount of gain (loss) recognized, within our revenue in the Consolidated Statements of Income, on assets and liabilities measured on a recurring basis for the years ended December 31, 2019, 2018 and 2017 : Year Ended December 31, Description (in thousands) 2019 2018 2017 Mortgage loans held for sale $ (2,261 ) $ 3,763 $ 3,675 Forward sales of mortgage-backed securities 2,969 (3,482 ) (53 ) Interest rate lock commitments (370 ) 783 21 Whole loan contracts 173 (231 ) 102 Total gain recognized $ 511 $ 833 $ 3,745 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following tables set forth the fair value of the Company’s derivative instruments and their location within the Consolidated Balance Sheets for the periods indicated (except for mortgage loans held for sale which are disclosed as a separate line item): Asset Derivatives Liability Derivatives December 31, 2019 December 31, 2019 Description of Derivatives Balance Sheet Location Fair Value (in thousands) Balance Sheet Location Fair Value (in thousands) Forward sales of mortgage-backed securities Other assets $ — Other liabilities $ 336 Interest rate lock commitments Other assets 654 Other liabilities — Whole loan contracts Other assets — Other liabilities 16 Total fair value measurements $ 654 $ 352 Asset Derivatives Liability Derivatives December 31, 2018 December 31, 2018 Description of Derivatives Balance Sheet Location Fair Value (in thousands) Balance Sheet Location Fair Value (in thousands) Forward sales of mortgage-backed securities Other assets $ — Other liabilities $ 3,305 Interest rate lock commitments Other assets 989 Other liabilities — Whole loan contracts Other assets — Other liabilities 154 Total fair value measurements $ 989 $ 3,459 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Table Text Block] | The table below shows the level and measurement of assets measured on a non-recurring basis for the years ended December 31, 2019, 2018 and 2017 : Year Ended December 31, Description (in thousands) Fair Value Hierarchy 2019 2018 (2) 2017 (2) Adjusted basis of inventory (1) Level 3 $ 12,321 $ 14,515 $ 3,823 Total losses 5,002 5,809 7,681 Initial basis of inventory (3) $ 17,323 $ 20,324 $ 11,504 (1) The fair values in the table above represent only assets whose carrying values were adjusted in the respective period. (2) The carrying values for these assets may have subsequently increased or decreased from the fair value reported due to activities that have occurred since the measurement date. (3) This amount is inclusive of our investments in joint venture arrangements. There were no losses on our investments in joint venture arrangements for 2019 , 2018 and 2017 . |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following table presents the carrying amounts and fair values of the Company’s financial instruments at December 31, 2019 and 2018 . The objective of the fair value measurement is to estimate the price at which an orderly transaction to sell the asset or transfer the liability would take place between market participants at the measurement date under current market conditions. December 31, 2019 December 31, 2018 (In thousands) Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Assets: Cash, cash equivalents and restricted cash Level 1 $ 6,083 $ 6,083 $ 21,529 $ 21,529 Mortgage loans held for sale Level 2 155,244 155,244 169,651 169,651 Interest rate lock commitments Level 2 654 654 989 989 Liabilities: Notes payable - homebuilding operations Level 2 66,000 66,000 117,400 117,400 Notes payable - financial services operations Level 2 136,904 136,904 153,168 153,168 Notes payable - other Level 2 5,828 5,286 5,938 5,112 Senior notes due 2021 (a) Level 2 300,000 299,250 300,000 298,500 Senior notes due 2025 (a) Level 2 250,000 261,563 250,000 228,750 Whole loan contracts for committed IRLCs and mortgage loans held for sale Level 2 16 16 154 154 Forward sales of mortgage-backed securities Level 2 336 336 3,305 3,305 (a) Our senior notes are stated at the principal amount outstanding which does not include the impact of premiums, discounts, and debt issuance costs that are amortized to interest cost over the respective terms of the notes. |
Inventory and Capitalized Int_2
Inventory and Capitalized Interest Inventory (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Real Estate Inventory, Capitalized Interest Costs [Table Text Block] | The summary of capitalized interest for the years ended December 31, 2019, 2018 and 2017 is as follows: Year Ended December 31, (In thousands) 2019 2018 2017 Capitalized interest, beginning of period $ 20,765 $ 17,169 $ 16,012 Interest capitalized to inventory 30,253 29,053 21,484 Capitalized interest charged to cost of sales (29,411 ) (25,457 ) (20,327 ) Capitalized interest, end of year $ 21,607 $ 20,765 $ 17,169 Interest incurred $ 51,628 $ 49,537 $ 40,358 |
Schedule of Inventory, Current [Table Text Block] | A summary of the Company’s inventory as of December 31, 2019 and 2018 is as follows: December 31, (In thousands) 2019 2018 Single-family lots, land and land development costs $ 858,065 $ 778,943 Land held for sale 5,670 12,633 Homes under construction 756,998 730,390 Model homes and furnishings - at cost (less accumulated depreciation: December 31, 2019 - $12,723; December 31, 2018 - $13,441) 98,777 87,132 Community development district infrastructure 13,531 12,392 Land purchase deposits 28,532 33,662 Consolidated inventory not owned 7,934 19,308 Total inventory $ 1,769,507 $ 1,674,460 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Warranty Accrual Rollforward [Abstract] | |
Schedule of Product Warranty Liability [Table Text Block] | A summary of warranty activity for the years ended December 31, 2019, 2018 and 2017 is as follows: Year Ended December 31, (In thousands) 2019 2018 2017 Warranty reserves, beginning of period $ 26,459 $ 26,133 $ 27,732 Warranty expense on homes delivered during the period 14,685 13,456 11,677 Changes in estimates for pre-existing warranties 2,165 4,746 2,614 Charges related to stucco-related claims — — (a) 8,500 Settlements made during the period (16,889 ) (17,876 ) (24,390 ) Warranty reserves, end of period $ 26,420 $ 26,459 $ 26,133 (a) This represents charges of $1.0 million for additional stucco-related repair costs, net of $1.0 million |
Operating Leases Schedule of Fu
Operating Leases Schedule of Future Minimum Rental Payments for Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Future Minimum Lease Payments [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The following table presents a maturity analysis of our annual undiscounted cash flows reconciled to the carrying value of our operating lease liabilities as of December 31, 2019 : (Dollars in thousands) 2020 $ 5,479 2021 5,159 2022 4,345 2023 3,264 2024 1,741 Thereafter 388 Total lease payments 20,376 Less: Imputed interest (1,961 ) Total operating lease liability $ 18,415 |
Operating Leases Schedule of Le
Operating Leases Schedule of Lease Expense (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | For the twelve months ended December 31, 2019 , the Company had the following operating lease expense components: (Dollars in thousands) Operating lease expense $ 6,188 Variable lease expense 1,629 Short-term lease expense 1,725 Total lease expense $ 9,542 |
Community Development Distric_2
Community Development District Infrastructure and Related Obligations Community Development District Infrastructure and Related Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Community Development District Infrastructure and Realted Obligations [Abstract] | |
Schedule of Maturities of Long-term Debt [Table Text Block] | Following are details relating to such CDD bond obligations issued and outstanding as of December 31, 2019 : Issue Date Maturity Date Interest Rate Principal Amount as of December 31, 2019 (in thousands) Principal Amount as of December 31, 2018 (in thousands) 12/23/2016 5/1/2047 6.20% $ 6,735 $ 6,735 12/22/2017 5/1/2048 5.13% 9,815 9,815 9/24/2018 5/1/2049 5.09% 5,205 5,205 7/18/2019 5/1/2050 4.10% 4,705 — Total CDD bond obligations issued and outstanding $ 26,460 $ 21,755 |
Debt Debt (Tables)
Debt Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt [Abstract] | |
Investments Classified by Contractual Maturity Date [Table Text Block] | Maturities over the next five years with respect to the Company’s debt as of December 31, 2019 are as follows: Debt Maturities (In thousands) 2020 $ 140,097 2021 367,215 (a) 2022 1,039 2023 304 2024 77 Thereafter 250,000 Total $ 758,732 (a) In January 2020 we issued $400 million of the 2028 Senior Notes for net proceeds of approximately $393.9 million and used a portion of the net proceeds from this offering to redeem, at par, all $300.0 million aggregate principal amount of our outstanding 2021 Senior Notes. |
Earnings per Share Earnings per
Earnings per Share Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Loss per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The table below presents a reconciliation between basic and diluted weighted average shares outstanding, net income available to common shareholders and basic and diluted income per share for the years ended December 31, 2019, 2018 and 2017 : Year Ended December 31, (In thousands, except per share amounts) 2019 2018 2017 NUMERATOR Net income $ 127,587 $ 107,663 $ 72,081 Preferred stock dividends (a) — — (3,656 ) Excess of fair value over book value of preferred shares redeemed — — (2,257 ) Net income available to common shareholders 127,587 107,663 66,168 Interest on 3.25% convertible senior subordinated notes due 2017 (b) — — 1,106 Interest on 3.00% convertible senior subordinated notes due 2018 (c) — 407 2,113 Diluted income available to common shareholders $ 127,587 $ 108,070 $ 69,387 DENOMINATOR Basic weighted average shares outstanding 27,846 28,234 25,769 Effect of dilutive securities: Stock option awards 412 295 342 Deferred compensation awards 217 219 221 3.25% convertible senior subordinated notes due 2017 (b) — — 1,687 3.00% convertible senior subordinated notes due 2018 (c) — 430 2,669 Diluted weighted average shares outstanding - adjusted for assumed conversions 28,475 29,178 30,688 Earnings per common share Basic $ 4.58 $ 3.81 $ 2.57 Diluted $ 4.48 $ 3.70 $ 2.26 Anti-dilutive equity awards not included in the calculation of diluted earnings per common share 1 381 23 (a) The Company’s Articles of Incorporation authorize the issuance of up to 2,000,000 preferred shares, par value $.01 per share. On March 15, 2007, the Company issued 4,000,000 depositary shares, each representing 1/1000th of a 9.75% Series A Preferred Share of the Company (the “Series A Preferred Shares”), or 4,000 Series A Preferred Shares in the aggregate. On April 10, 2013, the Company redeemed 2,000 of its Series A Preferred Shares (and the 2,000,000 related depositary shares) for an aggregate redemption price of approximately $50.4 million in cash. On October 16, 2017, the Company redeemed the remaining 2,000 outstanding Series A Preferred Shares (and the 2,000,000 related depositary shares) for an aggregate redemption price of approximately $50.4 million in cash. The Company declared and paid a quarterly cash dividend of $609.375 per share on its then outstanding Series A Preferred Shares in each of the first three quarters of 2017, for aggregate dividend payments on the Series A Preferred Shares of $3.7 million for the year ended December 31, 2017. (b) On September 11, 2012, the Company issued $57.5 million aggregate principal amount of 3.25% Convertible Senior Subordinated Notes due 2017 (the “2017 Convertible Senior Subordinated Notes”). The 2017 Convertible Senior Subordinated Notes were scheduled to mature on September 15, 2017 and the deadline for holders to convert the 2017 Convertible Senior Subordinated Notes was September 13, 2017. As a result of conversion elections made by holders of the 2017 Convertible Senior Subordinated Notes, all $57.5 million aggregate principal amount of the 2017 Convertible Senior Subordinated Notes were converted and settled through the issuance of our common shares. In total, we issued approximately 2.4 million common shares (at a conversion price per common share of $23.80 ). (c) On March 1, 2013, the Company issued $86.3 million aggregate principal amount of 3.0% Convertible Senior Subordinated Notes due 2018 (the “2018 Convertible Senior Subordinated Notes”). The 2018 Convertible Senior Subordinated Notes were scheduled to mature on March 1, 2018 and the deadline for holders to convert the 2018 Convertible Senior Subordinated Notes was February 27, 2018. As a result of conversion elections made by holders of the 2018 Convertible Senior Subordinated Notes, (1) approximately $20.3 million in aggregate principal amount of the 2018 Convertible Senior Subordinated Notes were converted and settled through the issuance of approximately 0.629 million of our common shares (at a conversion price per common share of $32.31 ) and (2) the Company repaid in cash approximately $65.9 million in aggregate principal amount of the 2018 Convertible Senior Subordinated Notes at maturity. |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The tax effects of the significant temporary differences that comprise the deferred tax assets and liabilities are as follows: December 31, (In thousands) 2019 2018 Deferred tax assets: Warranty, insurance and other accruals $ 8,114 $ 8,218 Equity-based compensation 2,109 4,096 Inventory 4,254 4,441 Operating lease liabilities 4,613 — State taxes 213 185 Net operating loss carryforward 754 3,240 Deferred charges 426 — Total deferred tax assets $ 20,483 $ 20,180 Deferred tax liabilities: Federal effect of state deferred taxes $ 476 $ 1,079 Depreciation 5,288 4,801 Operating lease right-of-use assets 4,613 — Prepaid expenses 475 285 Other — 533 Total deferred tax liabilities $ 10,852 $ 6,698 Net deferred tax asset $ 9,631 $ 13,482 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The provision from income taxes consists of the following: Year Ended December 31, (In thousands) 2019 2018 2017 Current: Federal $ 29,602 $ 24,408 $ 33,392 State 4,985 4,261 2,414 $ 34,587 $ 28,669 $ 35,806 Year Ended December 31, (In thousands) 2019 2018 2017 Deferred: Federal $ 1,490 $ 2,333 $ 11,916 State 2,361 2,624 521 $ 3,851 $ 4,957 $ 12,437 Total $ 38,438 $ 33,626 $ 48,243 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Reconciliation of the differences between income taxes computed at the federal statutory tax rate and consolidated benefit from income taxes are as follows: Year Ended December 31, (In thousands) 2019 2018 2017 Federal taxes at statutory rate $ 34,865 $ 29,671 $ 42,113 State and local taxes – net of federal tax benefit 5,981 5,636 3,420 Deferred tax asset re-measurement as a result of 2017 Tax Act — — 6,520 Equity Compensation (1,251 ) (254 ) (1,368 ) Manufacturing deduction — — (3,262 ) Federal tax credits (3,493 ) (2,817 ) — Other 2,336 1,390 820 Total $ 38,438 $ 33,626 $ 48,243 |
Business Segments Business Segm
Business Segments Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following table shows, by segment, revenue, operating income and interest expense for 2019, 2018 and 2017 , as well as the Company’s income before income taxes for such periods: Year Ended December 31, (In thousands) 2019 2018 2017 Revenue: Northern homebuilding $ 1,027,291 $ 933,119 $ 742,577 Southern homebuilding 1,417,676 1,300,967 1,169,701 Financial services (a) 55,323 52,196 49,693 Total revenue $ 2,500,290 $ 2,286,282 $ 1,961,971 Operating income: Northern homebuilding (b) $ 96,239 $ 86,131 $ 81,522 Southern homebuilding (c) 115,082 95,912 72,396 Financial services (a) 27,350 27,482 27,288 Less: Corporate selling, general and administrative expense (51,582 ) (46,364 ) (42,547 ) Total operating income (b) (c) (d) $ 187,089 $ 163,161 $ 138,659 Interest expense: Northern homebuilding $ 7,474 $ 7,142 $ 5,010 Southern homebuilding 10,250 10,073 11,107 Financial services (a) 3,651 3,269 2,757 Total interest expense $ 21,375 $ 20,484 $ 18,874 Equity in income from joint venture arrangements $ (311 ) $ (312 ) $ (539 ) Acquisition and integration costs (e) — 1,700 — Income before income taxes $ 166,025 $ 141,289 $ 120,324 Depreciation and amortization: Northern homebuilding $ 2,944 $ 2,448 $ 2,069 Southern homebuilding 4,778 4,472 4,579 Financial services 2,095 1,281 1,503 Corporate 6,133 6,330 6,023 Total depreciation and amortization $ 15,950 $ 14,531 $ 14,174 (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 $0.6 million and 5.1 million of acquisition-related charges taken during 2019 and 2018 , respectively, as a result of our acquisition of Pinnacle Homes in Detroit, Michigan on March 1, 2018. (c) Includes an $8.5 million charge for stucco-related repair costs in certain of our Florida communities (as more fully discussed in Note 8 to our Consolidated Financial Statements) taken during 2017 . (d) For the years ended December 31, 2019, 2018 and 2017 , total operating income was reduced by $5.0 million , $5.8 million and $7.7 million , respectively, related to asset impairment charges taken during the period. (e) 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 December 31, 2019 and 2018 : December 31, 2019 (In thousands) Northern Southern Corporate, Financial Services and Unallocated Total Deposits on real estate under option or contract $ 3,655 $ 24,877 $ — $ 28,532 Inventory (a) 783,972 957,003 — 1,740,975 Investments in joint venture arrangements 1,672 36,213 — 37,885 Other assets (d) 21,564 52,662 (b) 223,976 298,202 Total assets $ 810,863 $ 1,070,755 $ 223,976 $ 2,105,594 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 $18.4 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 9 |
Supplemental Guarantor Inform_2
Supplemental Guarantor Information Supplemental Guarantor Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Guarantor Information [Abstract] | |
Schedule Of Condensed Consolidating Statement Of Operations [Table Text Block] | 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 |
Schedule Of Condensed Consolidating Balance Sheet [Table Text Block] | 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 |
Schedule Of Condensed Consolidating Statement Of Cash Flows [Table Text Block] | 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 |
Supplementary Financial Data Su
Supplementary Financial Data Supplementary Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplementary Financial Data [Abstract] | |
Supplemental Financial Data [Table Text Block] | The following tables set forth our selected consolidated financial and operating data for the quarterly periods indicated. March 31, 2019 June 30, September 30, 2019 December 31, 2019 (In thousands, except per share amounts) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenue $ 481,109 $ 623,686 $ 653,345 $ 742,150 Gross margin (a) $ 92,642 $ 119,829 $ 134,181 $ 142,775 Net income to common shareholders (a) $ 17,723 $ 30,246 $ 37,838 $ 41,780 Earnings per common share: (c) Basic $ 0.64 $ 1.10 $ 1.35 $ 1.48 Diluted $ 0.63 $ 1.08 $ 1.32 $ 1.44 Weighted average common shares outstanding: Basic 27,498 27,599 27,981 28,297 Diluted 27,970 28,090 28,598 29,049 March 31, June 30, September 30, 2018 December 31, 2018 (In thousands, except per share amounts) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenue $ 437,857 $ 558,098 $ 567,842 $ 722,485 Gross margin (b) $ 89,155 $ 108,762 $ 115,813 $ 130,039 Net income to common shareholders (b) $ 18,063 $ 27,911 $ 29,282 $ 32,407 Earnings per common share: (c) Basic $ 0.64 $ 0.98 $ 1.03 $ 1.17 Diluted $ 0.60 $ 0.96 $ 1.01 $ 1.15 Weighted average common shares outstanding: Basic 28,124 28,571 28,469 27,774 Diluted 30,544 29,101 28,906 28,181 (a) Gross margin and net income to common shareholders include $0.4 million , $0.1 million and $0.1 million of charges related to acquisition-related charges taken during 2019 as a result of our acquisition of Pinnacle Homes in Detroit, Michigan on March 1, 2018 (as more fully discussed in Note 12 to our Consolidated Financial Statements) taken during the first, second and third quarters of 2019, respectively, and $5.0 million of impairment charges taken during the fourth quarter of 2019. (b) Gross margin and net income to common shareholders include $0.9 million , $3.0 million , $0.7 million and $0.6 million of charges related to acquisition-related charges taken during 2018 as a result of our acquisition of Pinnacle Homes on March 1, 2018 taken during the first, second, third and fourth quarters of 2018, respectively, and $5.8 million of impairment charges taken during the fourth quarter of 2018. (c) Due to rounding, the sum of quarterly results may not equal the total for the year. Additionally, quarterly and year-to-date computations of per share amounts are made independently. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Assumption Duration [Line Items] | |||
Operating Lease, Right-of-Use Asset | $ 18,415 | $ 20,900 | $ 0 |
Goodwill | 16,400 | 16,400 | |
Servicing Asset | 9,614 | 6,477 | |
Operating Lease, Liability | 18,415 | $ 20,889 | 0 |
Restricted Cash and Cash Equivalents | $ 200 | $ 700 | |
Number of loans we retain mortgage servicing rights on | 3,613 | 2,282 | |
Minimum [Member] | |||
Assumption Duration [Line Items] | |||
Discount Rate Used in Determining Fair Value of land/lots | 13.00% | 13.00% | |
Maximum [Member] | |||
Assumption Duration [Line Items] | |||
Discount Rate Used in Determining Fair Value of land/lots | 16.00% | 16.00% |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 38,268 | $ 51,808 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (16,150) | (22,413) | |
Property, Plant and Equipment, Net | 22,118 | 29,395 | |
Assets Held-for-sale, Not Part of Disposal Group | 5,600 | ||
Depreciation Expense | 5,900 | 5,600 | $ 4,100 |
Land, Buildings and Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 0 | 11,824 | |
Office furnishings, leasehold improvements, computer equipment and computer software | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 28,207 | 29,920 | |
Transportation and construction equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 10,061 | $ 10,064 |
Estimated Useful Life (Details)
Estimated Useful Life (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Building and improvements | |
Property, Plant and Equipment, Estimated Useful Lives | 35 years |
Office furnishings, leasehold improvements, computer equipment and computer software | |
Property, Plant and Equipment, Estimated Useful Lives | 3-7 years |
Transportation and construction equipment | |
Property, Plant and Equipment, Estimated Useful Lives | 5-25 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Assets [Abstract] | ||
Other Receivables | $ 16,083 | $ 13,632 |
Servicing Asset | 9,614 | 6,477 |
Prepaid Expense | 13,841 | 8,605 |
Prepaid Land Acquisition Costs | 5,688 | 7,873 |
Other Assets, Miscellaneous | 25,085 | 24,207 |
Other Assets | $ 70,311 | $ 60,794 |
Self-Insurance (Details)
Self-Insurance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Self-Insurance [Abstract] | |||
Self Insurance Reserve | $ 2.7 | $ 2.7 | |
General Insurance Expense | $ 9.5 | $ 9.2 | $ 8.9 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Accruals related to land development | $ 48,694 | $ 46,073 |
Warranty | 26,420 | 26,459 |
Payroll and other benefits | 35,125 | 31,428 |
Other | 37,698 | 46,091 |
Total other liabilities | $ 147,937 | $ 150,051 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Homebuilding operations percent of total revenue | 98.00% | 98.00% | 97.00% | ||||||||
Revenue | $ 742,150 | $ 653,345 | $ 623,686 | $ 481,109 | $ 722,485 | $ 567,842 | $ 558,098 | $ 437,857 | $ 2,500,290 | $ 2,286,282 | $ 1,961,971 |
Gain (Loss) on Hedging Activity | (12,100) | 3,600 | 700 | ||||||||
Construction [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 2,420,348 | 2,217,197 | 1,878,572 | ||||||||
Land [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 24,619 | 16,889 | 33,706 | ||||||||
Financial Services Sector [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 55,323 | 52,196 | 49,693 | ||||||||
Financial Services Sector [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 55,323 | $ 52,196 | $ 49,693 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Leases [Abstract] | |||
Operating Lease, Right-of-Use Asset | $ 18,415 | $ 20,900 | $ 0 |
Operating Lease, Liability | $ 18,415 | $ 20,889 | $ 0 |
Stock Based Compensation Summar
Stock Based Compensation Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,623,720 | 2,212,690 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 423,500 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (954,370) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 58,100 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 1,571,685 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 741,520 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price [Abstract] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 25.30 | $ 22.82 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | 27.99 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | 20.60 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | 27.37 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | 25.25 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 22.90 | |
Weighted Average Remaining Contractual Term [Abstract] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 7 years 2 months 19 days | 6 years 6 months 29 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 7 years 2 months 8 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 5 years 11 months 19 days | |
Aggregate Intrinsic Value [Abstract] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 22,836 | $ 3,123 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 22,198 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 12,198 |
Stock Based Compensation Fair V
Stock Based Compensation Fair Value Assumptions for Stock Options (Details) - Five Year Service Stock Options [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Risk-free interest rate | 2.51% | 2.72% | 1.96% |
Expected volatility | 28.81% | 32.01% | 39.49% |
Expected term (in years) | 5 years 10 months 24 days | 5 years 8 months 12 days | 5 years 10 months 24 days |
Weighted average grant date fair value of options granted during the period | $ 9.06 | $ 11.31 | $ 9.45 |
Stock Based Compensation Stock
Stock Based Compensation Stock Based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 2,250,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,714,293 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | $ 14,500 | $ 600 | $ 9,300 |
Share-based Payment Arrangement, Expense | 3,600 | $ 3,900 | $ 3,700 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 7,800 | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 2 years 1 month 6 days | ||
Stock Units Awarded Under the 2009 LTIP Plan | 24,000 | 21,000 | 18,000 |
Value of Stock Units Awarded Under the 2009 LTIP Plan | $ 700 | $ 700 | $ 500 |
Total Numbner of Units Outstanding Under the 2006 Director Equity Plan | 8,059 | ||
Value of Units Outstanding Under the 2006 Director Equity Plan | $ 200 | ||
Stock or Unit Option Plan Expense | $ (200) | (210) | (217) |
Total Stock Units Outstanding Under All Stock Option Plans | 63,958 | ||
Total Value of Units Outstanding Under All Stock Option Plans | $ 1,500 | ||
Deferred Compensation Equity | 2,500 | ||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Employee Benefits | 1,100 | ||
Deferred Compensation Liability, Current and Noncurrent | $ 200 | $ 200 | $ 400 |
Stock Based Compensation Profit
Stock Based Compensation Profit Sharing Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 2.9 | $ 2.3 | $ 1.8 |
Stock Based Compensation Perfor
Stock Based Compensation Performance share units (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage weight of PSUs related to performance condition | 80.00% | ||
Percentage weight of PSUs related to market condition | 20.00% | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 7,800,000 | ||
Market Condition Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Deferred Compensation Arrangement with Individual, Allocated Share-based Compensation Expense | 200,000 | ||
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 200,000 | ||
2019 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 53,692 | ||
2019 [Member] | Performance Condition Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 27.62 | ||
Compensation expense to be recognized over 3-year period at Minimum level | 600,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | 200,000 | ||
2019 [Member] | Market Condition Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | 32.52 | ||
2018 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 46,444 | ||
2018 [Member] | Performance Condition Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 31.93 | ||
Deferred Compensation Arrangement with Individual, Allocated Share-based Compensation Expense | 400,000 | ||
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 200,000 | ||
2018 [Member] | Market Condition Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 33.57 | ||
2017 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 57,110 | ||
2017 [Member] | Performance Condition Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 55,080 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 23.34 | ||
Deferred Compensation Arrangement with Individual, Allocated Share-based Compensation Expense | $ 900,000 | ||
2017 [Member] | Market Condition Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 11,101 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 19.69 | ||
Deferred Compensation Arrangement with Individual, Allocated Share-based Compensation Expense | $ 100,000 |
Fair Value Measurements Notiona
Fair Value Measurements Notional Amount of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Notional Disclosures [Abstract] | ||
Best efforts contracts and related committed IRLCs | $ 1,445 | $ 5,823 |
Uncommitted IRLCs | 87,340 | 76,117 |
FMBSs related to uncommitted IRLCs | 88,000 | 83,000 |
Best efforts contracts and related mortgage loans held for sale | 6,125 | 14,285 |
FMBSs related to mortgage loans held for sale | 144,000 | 150,000 |
Mortgage loans held for sale covered by FMBSs | $ 144,411 | $ 149,980 |
Fair Value Measurements (Loss)
Fair Value Measurements (Loss) Gain On Assets and Liabilities Measured On A Recurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial Instrument [Line Items] | |||
(Loss) Gain On Assets and Liabilities Measured On A Recurring Basis | $ 511 | $ 833 | $ 3,745 |
Mortgage Loans Held for Sale [Member] | |||
Financial Instrument [Line Items] | |||
(Loss) Gain On Assets and Liabilities Measured On A Recurring Basis | (2,261) | 3,763 | 3,675 |
Forward Sales or Mortgage Backed Securities [Member] | |||
Financial Instrument [Line Items] | |||
(Loss) Gain On Assets and Liabilities Measured On A Recurring Basis | 2,969 | (3,482) | (53) |
Interest Rate Lock Commitments [Member] | |||
Financial Instrument [Line Items] | |||
(Loss) Gain On Assets and Liabilities Measured On A Recurring Basis | (370) | 783 | 21 |
Best Efforts Contracts [Member] | |||
Financial Instrument [Line Items] | |||
(Loss) Gain On Assets and Liabilities Measured On A Recurring Basis | $ 173 | $ (231) | $ 102 |
Fair Value Measurements Balance
Fair Value Measurements Balance Sheet Location of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Assets [Member] | ||
Financial Insturments, Fair Value [Line Items] | ||
Financial Instrument, Fair Value | $ 654 | $ 989 |
Other Liabilities [Member] | ||
Financial Insturments, Fair Value [Line Items] | ||
Fair Value Disclosure, Recurring | 352 | 3,459 |
Forward Sales or Mortgage Backed Securities [Member] | Other Assets [Member] | ||
Financial Insturments, Fair Value [Line Items] | ||
Financial Instrument, Fair Value | 0 | 0 |
Forward Sales or Mortgage Backed Securities [Member] | Other Liabilities [Member] | ||
Financial Insturments, Fair Value [Line Items] | ||
Fair Value Disclosure, Recurring | 336 | 3,305 |
Interest Rate Lock Commitments [Member] | Other Assets [Member] | ||
Financial Insturments, Fair Value [Line Items] | ||
Financial Instrument, Fair Value | 654 | 989 |
Interest Rate Lock Commitments [Member] | Other Liabilities [Member] | ||
Financial Insturments, Fair Value [Line Items] | ||
Fair Value Disclosure, Recurring | 0 | 0 |
Best Efforts Contracts [Member] | Other Assets [Member] | ||
Financial Insturments, Fair Value [Line Items] | ||
Financial Instrument, Fair Value | 0 | 0 |
Best Efforts Contracts [Member] | Other Liabilities [Member] | ||
Financial Insturments, Fair Value [Line Items] | ||
Fair Value Disclosure, Recurring | $ 16 | $ 154 |
Fair Value Measurements Assets
Fair Value Measurements Assets and Liabilities Measured on a Non-Recurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Valuation adjustments to investments in joint venture arrangements | $ 0 | $ 0 | $ 0 |
Fair Value, Significant Unobservable Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Adjusted basis of inventory | 12,321 | 14,515 | 3,823 |
Total losses | 5,002 | 5,809 | 7,681 |
Initial basis of inventory | $ 17,323 | $ 20,324 | $ 11,504 |
Fair Value Measurements Financi
Fair Value Measurements Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
ASSETS: | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 6,083 | $ 21,529 |
Mortgages Held-for-sale, Fair Value Disclosure | 155,244 | 169,651 |
Commitments to extend real estate loans | 654 | 989 |
LIABILITIES: | ||
Notes Payable Homebuilding-Fair Value Disclosure | 66,000 | 117,400 |
Notes Payable Financial Services- Fair Value Disclosure | 136,904 | 153,168 |
Notes Payable Other- Fair Value Disclosure | 5,828 | 5,938 |
Senior notes due 2021 Fair Value Disclosure | 300,000 | 300,000 |
Senior Notes due 2025 Fair Value Disclosure | 250,000 | 250,000 |
Best-efforts contracts for committed IRLCs and mortgage loans held for sale | 16 | 154 |
Forward sales of mortgage-backed securities | 336 | 3,305 |
Estimate of Fair Value, Fair Value Disclosure [Member] | ||
ASSETS: | ||
Cash and Cash Equivalents, Fair Value Disclosure | 6,083 | 21,529 |
Mortgages Held-for-sale, Fair Value Disclosure | 155,244 | 169,651 |
Commitments to extend real estate loans | 654 | 989 |
LIABILITIES: | ||
Notes Payable Homebuilding-Fair Value Disclosure | 66,000 | 117,400 |
Notes Payable Financial Services- Fair Value Disclosure | 136,904 | 153,168 |
Notes Payable Other- Fair Value Disclosure | 5,286 | 5,112 |
Senior notes due 2021 Fair Value Disclosure | 299,250 | 298,500 |
Senior Notes due 2025 Fair Value Disclosure | 261,563 | 228,750 |
Best-efforts contracts for committed IRLCs and mortgage loans held for sale | 16 | 154 |
Forward sales of mortgage-backed securities | $ 336 | $ 3,305 |
Fair Value Measurements Fair _2
Fair Value Measurements Fair Value of Financial Instrument Assumptions (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value of Financial Instrument Assumptions [Line Items] | ||
Assets Held-for-sale, Not Part of Disposal Group | $ 5,600,000 | |
Impairment Charge on Reclassified Assets | $ 0 | $ 0 |
Revolving Credit Facility [Member] | ||
Fair Value of Financial Instrument Assumptions [Line Items] | ||
Basis Point Spread on Variable Rate | 2.50% | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 500,000,000 | |
Line of Credit Facility, Initiation Date | Jul. 18, 2013 | |
Warehousing Agreement - Third Amendment to Second Amended and Restated [Member] | ||
Fair Value of Financial Instrument Assumptions [Line Items] | ||
Basis Point Spread on Variable Rate | 2.00% | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 125,000,000 | |
Line of Credit Facility, Initiation Date | Jun. 24, 2016 | |
Repurchase Agreement -Second Amendment to Second Amended and Restated [Member] | ||
Fair Value of Financial Instrument Assumptions [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 65,000,000 | |
Line of Credit Facility, Initiation Date | Oct. 30, 2017 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Single-family lots, land and land development costs | $ 858,065 | $ 778,943 |
Land held for sale | 5,670 | 12,633 |
Homes under construction | 756,998 | 730,390 |
Model homes and furnishings - at cost (less accumulated depreciation: December 31, 2019 - $12,723; December 31, 2018 - $13,441) | 98,777 | 87,132 |
Community development district infrastructure | 13,531 | 12,392 |
Land Purchase Deposits | 28,532 | 33,662 |
Consolidated Inventory Not Owned | 7,934 | 19,308 |
Total inventory | $ 1,769,507 | $ 1,674,460 |
Inventory and Capitalized Int_3
Inventory and Capitalized Interest Model Home Accumulated Depreciation (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Parantheticals - Inventory [Abstract] | ||
Model Home Accumulated Depreciation | $ 12,723 | $ 13,441 |
Inventory and Capitalized Int_4
Inventory and Capitalized Interest Other Inventory Items - Homes under construction not subject to a sale contract (Details) $ in Millions | Dec. 31, 2019USD ($)homes | Dec. 31, 2018USD ($)homes |
Other Inventory, Gross [Abstract] | ||
Number of Speculative Homes | homes | 1,459 | 1,443 |
Speculative Homes Carrying Value | $ | $ 304 | $ 311 |
Inventory and Capitalized Int_5
Inventory and Capitalized Interest Capitalized Interest Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Real Estate Inventory, Capitalized Interest Costs [Roll Forward] | |||
Capitalized interest, beginning of period | $ 20,765 | $ 17,169 | $ 16,012 |
Interest capitalized to inventory | 30,253 | 29,053 | 21,484 |
Capitalized interest charged to cost of sales | (29,411) | (25,457) | (20,327) |
Capitalized interest, end of year | 21,607 | 20,765 | 17,169 |
Interest incurred | $ 51,628 | $ 49,537 | $ 40,358 |
Transactions with Related Par_2
Transactions with Related Parties Transactions with Related Parties (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | $ 800 | ||
Related Party Transaction, Purchases from Related Party | $ 14,200 | ||
Split dollar life insurance policies | $ 200 | $ 200 | $ 206 |
Investment in Joint Venture A_2
Investment in Joint Venture Arrangements Investment in Joint Venture Arrangements Balance Sheet Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Investment in joint venture arrangements | $ 37,885 | $ 35,870 | |
Investment in and advances to joint venture arrangements | 30,188 | 31,867 | $ 12,088 |
Distribution of single-family lots from unconsolidated LLC's | 27,672 | 16,158 | $ 16,600 |
Company's investment in joint development or similar agreements | $ 35,500 | $ 33,300 |
Investment in Joint Venture A_3
Investment in Joint Venture Arrangements Investment in Joint Venture Arrangements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Summarized Financial Information, Equity Excluding Noncontrolling Interests | $ 2,400 | $ 2,600 |
Minimum [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Discount Rate Used in Determining Fair Value of land and lots | 13.00% | 13.00% |
Equity Method Investment, Ownership Percentage | 25.00% | 25.00% |
Maximum [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Discount Rate Used in Determining Fair Value of land and lots | 16.00% | 16.00% |
Equity Method Investment, Ownership Percentage | 74.00% | 97.00% |
Investment in Joint Venture A_4
Investment in Joint Venture Arrangements Investment in Joint Venture Arrangements Income Statement Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Equity in Income (loss) from joint venture arrangements | $ 300 | $ 312 | $ 500 |
Guarantees and Indemnificatio_2
Guarantees and Indemnifications Guarantees (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Guarantees [Abstract] | ||
Total of Loans Covered by Guarantees | $ 48,100 | $ 63,600 |
Total of Guaranteed Loans Inquired About | 600 | 550 |
Total Loans Indemnified to third parties | 1,000 | 1,000 |
Loan Repurchase Guarantee Liability | 500 | 600 |
Guarantor Obligations, Current Carrying Value | $ 700 | $ 700 |
Commitments and Contingencies W
Commitments and Contingencies Warranty Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | 48 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | |
Warranty Accrual Rollforward [Abstract] | |||||
Warranty reserves, beginning of period | $ 26,459 | $ 26,133 | $ 27,732 | ||
Warranty expense on homes delivered during the period | 14,685 | 13,456 | 11,677 | ||
Changes in estimates for pre-existing warranties | 2,165 | 4,746 | 2,614 | ||
Charges related to stucco-related claims | $ 1,000 | 0 | 0 | 8,500 | $ 28,400 |
Settlements made during the period | (16,889) | (17,876) | (24,390) | ||
Warranty reserves, end of period | $ 26,459 | $ 26,420 | $ 26,459 | $ 26,133 | $ 26,459 |
Commitments and Contingencies L
Commitments and Contingencies Legal (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | 48 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | |
Legal Liabilities Disclosure [Abstract] | |||||
Charges related to stucco-related claims | $ 1,000 | $ 0 | $ 0 | $ 8,500 | $ 28,400 |
Insurance Recoveries | 1,000 | 1,100 | |||
Estimated Repair Costs for Affected Homes | 4,500 | ||||
Amount Reserved for Legal Expenses | $ 400 | $ 700 | $ 400 | $ 400 |
Commitments and Contingencies_2
Commitments and Contingencies Commitments and Contingencies (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments and Contingencies [Abstract] | ||
Letters of Credit and Completion Bonds | $ 235,400 | |
Outstanding Performance and Maintenance Bonds | 159,100 | |
Performance letters of credit outstanding | 56,500 | |
Financial Letters of Credit | 12,700 | |
Financial Letters of Credit representing deposits on land and lot purchase agreements | 12,200 | |
Financial Bonds | 7,100 | |
Outstanding Deposits On Land and Lots | 50,000 | |
Land Purchase Deposits | 28,532 | $ 33,662 |
Prepaid Land Acquisition Costs | 5,688 | 7,873 |
Short-term Non-bank Loans and Notes Payable | 3,600 | |
Unrecorded Conditional Purchase Obligation | 685,000 | |
Consolidated Inventory Not Owned | 7,934 | 19,308 |
Obligation for consolidated inventory not owned | $ 7,934 | $ 19,308 |
Operating Leases Operating Leas
Operating Leases Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Operating Lease, Right-of-Use Asset | $ 18,415 | $ 20,900 | $ 0 |
Operating Lease, Liability | 18,415 | $ 20,889 | $ 0 |
Leases not yet commenced | 31,000 | ||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 2,500 | ||
Operating Lease, Cost | 5,200 | ||
Increase in Operating leases due to new leases | $ 2,700 |
Operating Leases Lease Expense
Operating Leases Lease Expense Detail (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)Rate | |
Schedule of Operating Lease Payments Due [Abstract] | |
Operating Lease, Payments | $ 6,188 |
Variable Lease, Payment | 1,629 |
Short-term Lease Payments | 1,725 |
Operating Lease, Expense | $ 9,542 |
Operating Lease, Weighted Average Remaining Lease Term | 4 years |
Operating Lease, Weighted Average Discount Rate, Percent | Rate | 5.00% |
Operating Leases Schedule of Op
Operating Leases Schedule of Operating Lease Payments Due (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Schedule of Operating Lease Payments Due [Abstract] | |||
Lessee, Operating Lease, Liability, Payments, Due Year One | $ 5,479 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 5,159 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 4,345 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 3,264 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 1,741 | ||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 388 | ||
Lessee, Operating Lease, Liability, Payments, Due | 20,376 | ||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (1,961) | ||
Operating Lease, Liability | $ 18,415 | $ 20,889 | $ 0 |
Operating Leases Future Minimum
Operating Leases Future Minimum Payments Due under ASC 840 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Lease Commitments [Abstract] | |||
Operating Leases, Future Minimum Payments Due | $ 22.5 | ||
Operating Leases, Rent Expense, Net | $ 8.2 | $ 7.1 | $ 6.3 |
Community Development Distric_3
Community Development District Infrastructure and Related Obligations Community Development District Infrastructure and Related Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Long Term CDDs issued and outstanding [Line Items] | ||
CDDs Principal Amount | $ 26,460 | $ 21,755 |
Community development district obligations | $ 13,500 | 12,400 |
CDD due 5/1/2047 [Member] | ||
Long Term CDDs issued and outstanding [Line Items] | ||
CDDs, Issuance Date | Dec. 23, 2016 | |
CDDs, Maturity Date | May 1, 2047 | |
CDDs, Percentage Interest | 6.20% | |
CDDs Principal Amount | $ 6,735 | 6,735 |
CDD due 5/1/2048 [Member] | ||
Long Term CDDs issued and outstanding [Line Items] | ||
CDDs, Issuance Date | Dec. 22, 2017 | |
CDDs, Maturity Date | May 1, 2048 | |
CDDs, Percentage Interest | 5.13% | |
CDDs Principal Amount | $ 9,815 | 9,815 |
CDD due 5/1/2049 [Member] | ||
Long Term CDDs issued and outstanding [Line Items] | ||
CDDs, Issuance Date | Sep. 24, 2018 | |
CDDs, Maturity Date | May 1, 2049 | |
CDDs, Percentage Interest | 5.09% | |
CDDs Principal Amount | $ 5,205 | 5,205 |
CDD Due 5/1/2050 [Member] | ||
Long Term CDDs issued and outstanding [Line Items] | ||
CDDs, Issuance Date | Jul. 18, 2019 | |
CDDs, Maturity Date | May 1, 2050 | |
CDDs, Percentage Interest | 4.10% | |
CDDs Principal Amount | $ 4,705 | $ 0 |
Debt Debt (Details)
Debt Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Expiration Date | Jul. 18, 2021 | |
Debt Instrument, Unused Borrowing Capacity, Amount | $ 666,600 | |
Notes payable bank - homebuilding operations | 66,000 | $ 117,400 |
letters of credit outstanding under credit facility | 69,100 | |
Maximum borrowing availability subject to limit | 364,900 | |
Minimum Tangible Net Worth | $ 586,200 | |
Leverage ratio | 60.00% | |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500,000 | |
Sub-limit for letters of credit | $ 125,000 | |
Basis Point Spread on Variable Rate | 2.50% | |
Consolidated EBITDA [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest Coverage Ratio | 1.5 | |
Consolidated Interest Incurred [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest Coverage Ratio | 1 | |
2025 Senior Notes [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Face Amount | $ 250,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | |
2021 Senior Notes [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Face Amount | $ 300,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.75% |
Debt MIF Warehousing Agreement
Debt MIF Warehousing Agreement (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Expiration Date | Jul. 18, 2021 | |
Maximum Borrowing Availability under all Credit Lines | $ 225,000 | $ 225,000 |
Notes payable bank - financial services operations | $ 136,904 | $ 153,168 |
Warehousing Agreement - Third Amendment to Second Amended and Restated [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis Point Spread on Variable Rate | 2.00% | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 125,000 | |
M/I Financial Temporary Increase Maximum Borrowing Capacity | $ 160,000 | |
Line of Credit Facility, Expiration Date | Jun. 19, 2020 | |
Repurchase Agreement -Second Amendment to Second Amended and Restated [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 65,000 | |
Line of Credit Facility, Expiration Date | Oct. 26, 2020 | |
Minimum [Member] | Repurchase Agreement -Second Amendment to Second Amended and Restated [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis Point Spread on Variable Rate | 1.75% | |
Maximum [Member] | Repurchase Agreement -Second Amendment to Second Amended and Restated [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis Point Spread on Variable Rate | 2.00% |
Debt Senior Notes (Details)
Debt Senior Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | 24 Months Ended | 48 Months Ended | ||||||||
Jan. 31, 2026 | Jan. 31, 2025 | Jul. 31, 2023 | Jul. 31, 2022 | Jan. 15, 2021 | Dec. 31, 2019 | Jan. 31, 2028 | Jul. 31, 2025 | Jan. 31, 2024 | Jul. 31, 2021 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||||||||||
Restricted Payments Basket | $ 264,500 | $ 215,200 | |||||||||
2025 Senior Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes | $ 250,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | ||||||||||
Debt Instrument, Maturity Date | Aug. 1, 2025 | ||||||||||
Debt Instrument, Redemption Price, Percentage | 101.406% | 102.813% | 100.00% | 104.219% | |||||||
2021 Senior Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes | $ 300,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | ||||||||||
Debt Instrument, Maturity Date | Jan. 15, 2021 | ||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 100.00% | ||||||||||
2028 Senior Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes | $ 400,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.95% | ||||||||||
Debt Instrument, Maturity Date | Feb. 1, 2028 | ||||||||||
Debt Instrument, Redemption Price, Percentage | 101.238% | 102.475% | 103.713% | ||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 100.00% | ||||||||||
Percentage of our aggregate consolidated net income added to base amount of calculation [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Percent restrictions on payment of dividends | 50.00% | ||||||||||
Percentage of net cash proceeds from sale of qualified equity interests added to base and income/loss amount in calculation [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Percent restrictions on payment of dividends | 100.00% | ||||||||||
Percentage of our aggregate consolidated net income subtracted from base amount of calculation [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Percent restrictions on payment of dividends | 100.00% | ||||||||||
Base of restricted payments basket income calculation [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Restrictions on payment of dividends | $ 125,000 |
Debt Notes Payable - Other (Det
Debt Notes Payable - Other (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Short-term Debt [Line Items] | ||
Proceeds from Debt, Net of Issuance Costs | $ 393,900 | |
Notes payable - other | $ 5,828 | $ 5,938 |
Debt Debt Maturities (Details)
Debt Debt Maturities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Debt Maturities [Abstract] | |
2020 | $ 140,097 |
2021 | 367,215 |
2022 | 1,039 |
2023 | 304 |
2024 | 77 |
Thereafter | 250,000 |
Total | $ 758,732 |
Acquisition and Goodwill (Detai
Acquisition and Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Acquisition and Goodwill [Abstract] | ||||
Acquisition | $ 101,000 | $ 0 | $ 100,960 | $ 0 |
Goodwill | 16,400 | $ 16,400 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | $ 84,600 |
Earnings per Share Earnings p_2
Earnings per Share Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net income | $ 127,587 | $ 107,663 | $ 72,081 | ||||||||
Preferred dividends | 0 | 0 | (3,656) | ||||||||
Excess of fair value over book value of preferred shares redeemed | 0 | 0 | (2,257) | ||||||||
Net Income Available to Common Stockholders | $ 41,780 | $ 37,838 | $ 30,246 | $ 17,723 | $ 32,407 | $ 29,282 | $ 27,911 | $ 18,063 | 127,587 | 107,663 | 66,168 |
Diluted income available to common shareholders | $ 127,587 | $ 108,070 | $ 69,387 | ||||||||
Basic Weighted Average Shares Outstanding | 28,297 | 27,981 | 27,599 | 27,498 | 27,774 | 28,469 | 28,571 | 28,124 | 27,846 | 28,234 | 25,769 |
Stock option awards | 412 | 295 | 342 | ||||||||
Deferred Compensation Awards | 217 | 219 | 221 | ||||||||
Diluted Weighted Average Shares Outstanding | 29,049 | 28,598 | 28,090 | 27,970 | 28,181 | 28,906 | 29,101 | 30,544 | 28,475 | 29,178 | 30,688 |
Earnings Per Share, Basic | $ 1.48 | $ 1.35 | $ 1.10 | $ 0.64 | $ 1.17 | $ 1.03 | $ 0.98 | $ 0.64 | $ 4.58 | $ 3.81 | $ 2.57 |
Earnings Per Share, Diluted | $ 1.44 | $ 1.32 | $ 1.08 | $ 0.63 | $ 1.15 | $ 1.01 | $ 0.96 | $ 0.60 | $ 4.48 | $ 3.70 | $ 2.26 |
Anti-dilutive stock equivalent awards not included in the calculation of diluted loss per share | 1 | 381 | 23 | ||||||||
2018 Convertible Senior Notes [Member] | |||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Interest on convertible senior subordinated notes | $ 0 | $ 407 | $ 2,113 | ||||||||
Convertible senior subordinated notes potential shares | 0 | 430 | 2,669 | ||||||||
2017 Convertible Senior Notes [Member] | |||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Interest on convertible senior subordinated notes | $ 0 | $ 0 | $ 1,106 | ||||||||
Convertible senior subordinated notes potential shares | 0 | 0 | 1,687 |
Earnings per Share Earnings p_3
Earnings per Share Earnings per Share (Textuals) (Details) - USD ($) $ / shares in Units, $ in Thousands | 2 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Mar. 01, 2018 | Jun. 30, 2013 | Sep. 15, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 16, 2017 | Apr. 10, 2013 | Mar. 15, 2007 | |
Debt Conversion [Line Items] | |||||||||
Preferred Stock, Shares Authorized | 2,000,000 | 2,000,000 | |||||||
Preferred shares redeemed | 2,000 | 2,000 | |||||||
Depositary shares redeemed | 2,000,000 | ||||||||
Preferred Stock, Redemption Price Per Share | $ 609.375 | ||||||||
Preferred dividends | $ 0 | $ 0 | $ 3,656 | ||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | ||||||||
Depositary shares issued | 4,000,000 | ||||||||
Redemption of preferred shares | $ 50,400 | $ 50,420 | |||||||
Preferred Stock, Dividend Rate, Percentage | 9.75% | ||||||||
Preferred Stock, Shares Issued | 4,000 | ||||||||
2017 Convertible Senior Notes [Member] | |||||||||
Debt Conversion [Line Items] | |||||||||
Convertible Subordinated Debt | $ 57,500 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | ||||||||
Stock Issued During Period, Shares, Other | 2,400,000 | ||||||||
Debt Instrument, Convertible, Conversion Price | $ 23.80 | ||||||||
2018 Convertible Senior Notes [Member] | |||||||||
Debt Conversion [Line Items] | |||||||||
Convertible Subordinated Debt | $ 86,300 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | ||||||||
Debt Instrument, Convertible, Conversion Price | $ 32.31 | ||||||||
Debt Conversion, Converted Instrument, Amount | $ 20,300 | ||||||||
Debt Conversion, Converted Instrument, Shares Issued | 629,000 | ||||||||
Repayments of Convertible Debt | $ 65,900 |
Income Taxes Deferred Tax Asset
Income Taxes Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Tax Assets, Gross [Abstract] | ||
Warranty, insurance and other accruals | $ 8,114 | $ 8,218 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | 2,109 | 4,096 |
Inventory | 4,254 | 4,441 |
Deferred Tax Asset, Operating Lease Liabilities | 4,613 | 0 |
State taxes | 213 | 185 |
Net operating loss carryforward | 754 | 3,240 |
Deferred charges | 426 | 0 |
Total deferred tax assets | 20,483 | 20,180 |
Deferred Tax Liabilities, Gross [Abstract] | ||
Federal effect of state deferred taxes | 476 | 1,079 |
Depreciation | 5,288 | 4,801 |
Deferred Tax Liability, Operating Lease Right-of-Use Assets | 4,613 | 0 |
Prepaid expenses | 475 | 285 |
Deferred Tax Liabilities, Other | 0 | 533 |
Total deferred tax liabilities | 10,852 | 6,698 |
Deferred Tax Assets, Net of Valuation Allowance | $ 9,631 | $ 13,482 |
Income Taxes Benefit From Incom
Income Taxes Benefit From Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Current Federal Tax Expense (Benefit) | $ 29,602 | $ 24,408 | $ 33,392 |
Current State and Local Tax Expense (Benefit) | 4,985 | 4,261 | 2,414 |
Current Income Tax Expense (Benefit) | 34,587 | 28,669 | 35,806 |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Deferred Federal Income Tax Expense (Benefit) | 1,490 | 2,333 | 11,916 |
Deferred State and Local Income Tax Expense (Benefit) | 2,361 | 2,624 | 521 |
Deferred Income Tax Expense (Benefit) | 3,851 | 4,957 | 12,437 |
Provision (benefit) from income taxes | $ 38,438 | $ 33,626 | $ 48,243 |
Income Taxes Income Tax Disclos
Income Taxes Income Tax Disclosure (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Other Tax Expense (Benefit) | $ 3,500 | |||
Deferred Tax Assets, Gross | 20,483 | $ 20,180 | ||
Deferred Tax Liabilities, Gross | 10,852 | 6,698 | ||
Deferred Tax Assets, Net of Valuation Allowance | $ 9,631 | $ 13,482 | ||
Effective Income Tax Rate, Continuing Operations | 23.15% | 23.80% | 40.09% | |
Effective Income Tax Rate Reconciliation, Deferred asset re-measurement as a result of Tax Act | $ 6,500 | $ 0 | $ 0 | $ 6,520 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 0 | $ 0 | $ 0 | $ 0 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% |
Income Taxes Income Tax Reconci
Income Taxes Income Tax Reconciliation of Effective Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Effective Tax Rate [Abstract] | ||||
Effective Income Tax Rate Reconciliation, Federal taxes at statutory rate | $ 34,865 | $ 29,671 | $ 42,113 | |
Effective Income Tax Rate Reconciliation, State and local taxes – net of federal tax benefit | 5,981 | 5,636 | 3,420 | |
Effective Income Tax Rate Reconciliation, Deferred asset re-measurement as a result of Tax Act | $ 6,500 | 0 | 0 | 6,520 |
Effective Income Tax Rate Reconciliation, Equity Compensation | (1,251) | (254) | (1,368) | |
Effective Income Tax Rate Reconciliation, Manufacturing deduction | 0 | 0 | (3,262) | |
Effective Income Tax Rate Reconciliation, Tax Credit, Amount | (3,493) | (2,817) | 0 | |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | 2,336 | 1,390 | 820 | |
Provision (benefit) from income taxes | $ 38,438 | $ 33,626 | $ 48,243 |
Income Taxes Net Operating Loss
Income Taxes Net Operating Loss Carryforwards (Details) - State and Local Jurisdiction [Member] $ in Millions | Dec. 31, 2019USD ($) |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 0.6 |
Expiring between 2022 and 2027 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 0.5 |
Expiring between 2028 and 2032 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 0.1 |
Business Segments Business Se_2
Business Segments Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 742,150 | $ 653,345 | $ 623,686 | $ 481,109 | $ 722,485 | $ 567,842 | $ 558,098 | $ 437,857 | $ 2,500,290 | $ 2,286,282 | $ 1,961,971 |
Operating income (loss): | 187,089 | 163,161 | 138,659 | ||||||||
Interest | 21,375 | 20,484 | 18,874 | ||||||||
Equity in income from joint venture arrangements | (311) | (312) | (539) | ||||||||
Acquisition and integration costs | 0 | 1,700 | 0 | ||||||||
Income before income taxes | 166,025 | 141,289 | 120,324 | ||||||||
Depreciation and amortization: | 15,950 | 14,531 | 14,174 | ||||||||
Northern Homebuilding [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 1,027,291 | 933,119 | 742,577 | ||||||||
Operating income (loss): | 96,239 | 86,131 | 81,522 | ||||||||
Interest | 7,474 | 7,142 | 5,010 | ||||||||
Depreciation and amortization: | 2,944 | 2,448 | 2,069 | ||||||||
Southern Homebuilding [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 1,417,676 | 1,300,967 | 1,169,701 | ||||||||
Operating income (loss): | 115,082 | 95,912 | 72,396 | ||||||||
Interest | 10,250 | 10,073 | 11,107 | ||||||||
Depreciation and amortization: | 4,778 | 4,472 | 4,579 | ||||||||
Financial Services Sector [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 55,323 | 52,196 | 49,693 | ||||||||
Operating income (loss): | 27,350 | 27,482 | 27,288 | ||||||||
Interest | 3,651 | 3,269 | 2,757 | ||||||||
Depreciation and amortization: | 2,095 | 1,281 | 1,503 | ||||||||
Corporate and Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Less: Corporate selling, general and administrative expenses | (51,582) | (46,364) | (42,547) | ||||||||
Depreciation and amortization: | $ 6,133 | $ 6,330 | $ 6,023 |
Business Segments Business Se_3
Business Segments Business Segments - Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Deposits on real estate under option or contract | $ 28,532 | $ 33,662 |
Inventory | 1,740,975 | 1,640,798 |
Investment in joint venture arrangements | 37,885 | 35,870 |
Other Combined Assets | 298,202 | 311,251 |
TOTAL ASSETS | 2,105,594 | 2,021,581 |
Northern Homebuilding [Member] | ||
Segment Reporting Information [Line Items] | ||
Deposits on real estate under option or contract | 3,655 | 5,725 |
Inventory | 783,972 | 696,057 |
Investment in joint venture arrangements | 1,672 | 1,562 |
Other Combined Assets | 21,564 | 19,524 |
TOTAL ASSETS | 810,863 | 722,868 |
Southern Homebuilding [Member] | ||
Segment Reporting Information [Line Items] | ||
Deposits on real estate under option or contract | 24,877 | 27,937 |
Inventory | 957,003 | 944,741 |
Investment in joint venture arrangements | 36,213 | 34,308 |
Other Combined Assets | 52,662 | 43,086 |
TOTAL ASSETS | 1,070,755 | 1,050,072 |
Corporate, Financial Services and Unallocated [Member] | ||
Segment Reporting Information [Line Items] | ||
Deposits on real estate under option or contract | 0 | 0 |
Inventory | 0 | 0 |
Investment in joint venture arrangements | 0 | 0 |
Other Combined Assets | 223,976 | 248,641 |
TOTAL ASSETS | $ 223,976 | $ 248,641 |
Business Segments Business Se_4
Business Segments Business Segments - Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | 48 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Jan. 01, 2019 | |
Segment Reporting Information [Line Items] | |||||||||||||
Purchase Accounting Adjustments | $ 100 | $ 100 | $ 400 | $ 600 | $ 700 | $ 3,000 | $ 900 | ||||||
Charges related to stucco-related claims | 1,000 | $ 0 | $ 0 | $ 8,500 | $ 28,400 | ||||||||
Total valuation adjustments and write-offs | $ 5,000 | 5,800 | 5,000 | 5,800 | 7,700 | ||||||||
Assets Held-for-sale, Not Part of Disposal Group | 5,600 | 5,600 | 5,600 | ||||||||||
Operating Lease, Right-of-Use Asset | $ 18,415 | $ 0 | 18,415 | 0 | $ 0 | $ 20,900 | |||||||
Northern Homebuilding [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Purchase Accounting Adjustments | $ 600 | $ 5,100 | |||||||||||
Southern Homebuilding [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Charges related to stucco-related claims | $ 8,500 |
Supplemental Guarantor Inform_3
Supplemental Guarantor Information Supplemental Guarantor Information - Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | $ 742,150 | $ 653,345 | $ 623,686 | $ 481,109 | $ 722,485 | $ 567,842 | $ 558,098 | $ 437,857 | $ 2,500,290 | $ 2,286,282 | $ 1,961,971 |
Land and Housing | 2,005,861 | 1,836,704 | 1,561,022 | ||||||||
Impairment of inventory and investment in joint venture arrangements | 5,002 | 5,809 | 7,681 | ||||||||
Acquisition and integration costs | 0 | 1,700 | 0 | ||||||||
General and administrative | 147,954 | 137,779 | 126,282 | ||||||||
Selling | 154,384 | 142,829 | 128,327 | ||||||||
Equity in income from joint venture arrangements | (311) | (312) | (539) | ||||||||
Interest | 21,375 | 20,484 | 18,874 | ||||||||
Total costs and expenses | 2,334,265 | 2,144,993 | 1,841,647 | ||||||||
Income before income taxes | 166,025 | 141,289 | 120,324 | ||||||||
Provision (benefit) from income taxes | 38,438 | 33,626 | 48,243 | ||||||||
Equity in Subsidiaries | 0 | 0 | 0 | ||||||||
Net income | 127,587 | 107,663 | 72,081 | ||||||||
Preferred dividends | 0 | 0 | 3,656 | ||||||||
Excess of fair value over book value of preferred shares redeemed | 0 | 0 | 2,257 | ||||||||
Net Income Available to Common Stockholders | $ 41,780 | $ 37,838 | $ 30,246 | $ 17,723 | $ 32,407 | $ 29,282 | $ 27,911 | $ 18,063 | 127,587 | 107,663 | 66,168 |
Consolidation, Eliminations [Member] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Land and Housing | 0 | 0 | 0 | ||||||||
Impairment of inventory and investment in joint venture arrangements | 0 | 0 | 0 | ||||||||
Acquisition and integration costs | 0 | ||||||||||
General and administrative | 0 | 0 | 0 | ||||||||
Selling | 0 | 0 | 0 | ||||||||
Equity in income from joint venture arrangements | 0 | 0 | 0 | ||||||||
Interest | 0 | 0 | 0 | ||||||||
Total costs and expenses | 0 | 0 | 0 | ||||||||
Income before income taxes | 0 | 0 | 0 | ||||||||
Provision (benefit) from income taxes | 0 | 0 | 0 | ||||||||
Equity in Subsidiaries | (127,587) | (107,663) | (72,081) | ||||||||
Net income | (127,587) | (107,663) | (72,081) | ||||||||
Preferred dividends | 0 | ||||||||||
Excess of fair value over book value of preferred shares redeemed | 0 | ||||||||||
Net Income Available to Common Stockholders | (72,081) | ||||||||||
Parent Company [Member] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Land and Housing | 0 | 0 | 0 | ||||||||
Impairment of inventory and investment in joint venture arrangements | 0 | 0 | 0 | ||||||||
Acquisition and integration costs | 0 | ||||||||||
General and administrative | 0 | 0 | 0 | ||||||||
Selling | 0 | 0 | 0 | ||||||||
Equity in income from joint venture arrangements | 0 | 0 | 0 | ||||||||
Interest | 0 | 0 | 0 | ||||||||
Total costs and expenses | 0 | 0 | 0 | ||||||||
Income before income taxes | 0 | 0 | 0 | ||||||||
Provision (benefit) from income taxes | 0 | 0 | 0 | ||||||||
Equity in Subsidiaries | 127,587 | 107,663 | 72,081 | ||||||||
Net income | 127,587 | 107,663 | 72,081 | ||||||||
Preferred dividends | 3,656 | ||||||||||
Excess of fair value over book value of preferred shares redeemed | 2,257 | ||||||||||
Net Income Available to Common Stockholders | 66,168 | ||||||||||
Guarantor Subsidiaries [Member] | |||||||||||
Revenue | 2,444,967 | 2,234,086 | 1,912,278 | ||||||||
Land and Housing | 2,005,861 | 1,836,704 | 1,561,022 | ||||||||
Impairment of inventory and investment in joint venture arrangements | 5,002 | 5,809 | 7,681 | ||||||||
Acquisition and integration costs | 1,700 | ||||||||||
General and administrative | 119,153 | 112,225 | 103,094 | ||||||||
Selling | 154,384 | 142,829 | 128,327 | ||||||||
Equity in income from joint venture arrangements | 0 | 0 | 0 | ||||||||
Interest | 17,724 | 17,215 | 16,117 | ||||||||
Total costs and expenses | 2,302,124 | 2,116,482 | 1,816,241 | ||||||||
Income before income taxes | 142,843 | 117,604 | 96,037 | ||||||||
Provision (benefit) from income taxes | 33,919 | 28,545 | 40,570 | ||||||||
Equity in Subsidiaries | 0 | 0 | 0 | ||||||||
Net income | 108,924 | 89,059 | 55,467 | ||||||||
Preferred dividends | 0 | ||||||||||
Excess of fair value over book value of preferred shares redeemed | 0 | ||||||||||
Net Income Available to Common Stockholders | 55,467 | ||||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||
Revenue | 55,323 | 52,196 | 49,693 | ||||||||
Land and Housing | 0 | 0 | 0 | ||||||||
Impairment of inventory and investment in joint venture arrangements | 0 | 0 | 0 | ||||||||
Acquisition and integration costs | 0 | ||||||||||
General and administrative | 28,801 | 25,554 | 23,188 | ||||||||
Selling | 0 | 0 | 0 | ||||||||
Equity in income from joint venture arrangements | (311) | (312) | (539) | ||||||||
Interest | 3,651 | 3,269 | 2,757 | ||||||||
Total costs and expenses | 32,141 | 28,511 | 25,406 | ||||||||
Income before income taxes | 23,182 | 23,685 | 24,287 | ||||||||
Provision (benefit) from income taxes | 4,519 | 5,081 | 7,673 | ||||||||
Equity in Subsidiaries | 0 | 0 | 0 | ||||||||
Net income | $ 18,663 | $ 18,604 | 16,614 | ||||||||
Preferred dividends | 0 | ||||||||||
Excess of fair value over book value of preferred shares redeemed | 0 | ||||||||||
Net Income Available to Common Stockholders | $ 16,614 |
Supplemental Guarantor Inform_4
Supplemental Guarantor Information Supplemental Guarantor Information - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS: | |||||
Cash, Cash Equivalents, and Restricted Cash | $ 6,083 | $ 21,529 | $ 151,703 | $ 34,441 | |
Mortgage loans Held-for-sale | 155,244 | 169,651 | |||
Inventory | 1,769,507 | 1,674,460 | |||
Property and equipment - net | 22,118 | 29,395 | |||
Investment in joint venture arrangements | 37,885 | 35,870 | |||
Operating Lease, Right-of-Use Asset | 18,415 | $ 20,900 | 0 | ||
Investment in subsidiaries | 0 | 0 | |||
Deferred income taxes, net of valuation allowance | 9,631 | 13,482 | |||
Intercompany Assets | 0 | 0 | |||
Goodwill | 16,400 | 16,400 | |||
Other assets | 70,311 | 60,794 | |||
TOTAL ASSETS | 2,105,594 | 2,021,581 | |||
LIABILITIES: | |||||
Accounts payable | 125,026 | 131,511 | |||
Customer deposits | 34,462 | 32,055 | |||
Intercompany Liabilities | 0 | 0 | |||
Operating Lease, Liability | 18,415 | $ 20,889 | 0 | ||
Other liabilities | 147,937 | 150,051 | |||
Community Development District Obligation | 13,531 | 12,392 | |||
Obligation for consolidated inventory not owned | 7,934 | 19,308 | |||
Notes payable bank - homebuilding operations | 66,000 | 117,400 | |||
Notes payable bank - financial services operations | 136,904 | 153,168 | |||
Notes payable - other | 5,828 | 5,938 | |||
Senior notes due 2021 - net | 298,988 | 297,884 | |||
Senior notes due 2025 - net | 247,092 | 246,571 | |||
TOTAL LIABILITIES | 1,102,117 | 1,166,278 | |||
TOTAL SHAREHOLDERS' EQUITY | 1,003,477 | 855,303 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 2,105,594 | 2,021,581 | |||
Consolidation, Eliminations [Member] | |||||
ASSETS: | |||||
Cash, Cash Equivalents, and Restricted Cash | (5,725) | 0 | 0 | 0 | |
Mortgage loans Held-for-sale | 0 | 0 | |||
Inventory | 0 | 0 | |||
Property and equipment - net | 0 | 0 | |||
Investment in joint venture arrangements | 0 | 0 | |||
Operating Lease, Right-of-Use Asset | 0 | ||||
Investment in subsidiaries | (928,942) | (817,986) | |||
Deferred income taxes, net of valuation allowance | 0 | 0 | |||
Intercompany Assets | (619,204) | (579,447) | |||
Goodwill | 0 | 0 | |||
Other assets | 0 | 0 | |||
TOTAL ASSETS | (1,553,871) | (1,397,433) | |||
LIABILITIES: | |||||
Accounts payable | (5,725) | 0 | |||
Customer deposits | 0 | 0 | |||
Intercompany Liabilities | (619,204) | (579,447) | |||
Operating Lease, Liability | 0 | ||||
Other liabilities | 0 | 0 | |||
Community Development District Obligation | 0 | 0 | |||
Obligation for consolidated inventory not owned | 0 | 0 | |||
Notes payable bank - homebuilding operations | 0 | 0 | |||
Notes payable bank - financial services operations | 0 | 0 | |||
Notes payable - other | 0 | 0 | |||
Senior notes due 2021 - net | 0 | 0 | |||
Senior notes due 2025 - net | 0 | 0 | |||
TOTAL LIABILITIES | (624,929) | (579,447) | |||
TOTAL SHAREHOLDERS' EQUITY | (928,942) | (817,986) | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | (1,553,871) | (1,397,433) | |||
Parent Company [Member] | |||||
ASSETS: | |||||
Cash, Cash Equivalents, and Restricted Cash | 0 | 0 | 0 | 0 | |
Mortgage loans Held-for-sale | 0 | 0 | |||
Inventory | 0 | 0 | |||
Property and equipment - net | 0 | 0 | |||
Investment in joint venture arrangements | 0 | 0 | |||
Operating Lease, Right-of-Use Asset | 0 | ||||
Investment in subsidiaries | 928,942 | 817,986 | |||
Deferred income taxes, net of valuation allowance | 0 | 0 | |||
Intercompany Assets | 619,204 | 579,447 | |||
Goodwill | 0 | 0 | |||
Other assets | 1,411 | 2,325 | |||
TOTAL ASSETS | 1,549,557 | 1,399,758 | |||
LIABILITIES: | |||||
Accounts payable | 0 | 0 | |||
Customer deposits | 0 | 0 | |||
Intercompany Liabilities | 0 | 0 | |||
Operating Lease, Liability | 0 | ||||
Other liabilities | 0 | 0 | |||
Community Development District Obligation | 0 | 0 | |||
Obligation for consolidated inventory not owned | 0 | 0 | |||
Notes payable bank - homebuilding operations | 0 | 0 | |||
Notes payable bank - financial services operations | 0 | 0 | |||
Notes payable - other | 0 | 0 | |||
Senior notes due 2021 - net | 298,988 | 297,884 | |||
Senior notes due 2025 - net | 247,092 | 246,571 | |||
TOTAL LIABILITIES | 546,080 | 544,455 | |||
TOTAL SHAREHOLDERS' EQUITY | 1,003,477 | 855,303 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 1,549,557 | 1,399,758 | |||
Non-Guarantor Subsidiaries [Member] | |||||
ASSETS: | |||||
Cash, Cash Equivalents, and Restricted Cash | 11,589 | 15,975 | 20,181 | 13,514 | |
Mortgage loans Held-for-sale | 155,244 | 169,651 | |||
Inventory | 0 | 0 | |||
Property and equipment - net | 746 | 910 | |||
Investment in joint venture arrangements | 2,494 | 2,573 | |||
Operating Lease, Right-of-Use Asset | 2,726 | ||||
Investment in subsidiaries | 0 | 0 | |||
Deferred income taxes, net of valuation allowance | 0 | 0 | |||
Intercompany Assets | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Other assets | 12,766 | 10,731 | |||
TOTAL ASSETS | 185,565 | 199,840 | |||
LIABILITIES: | |||||
Accounts payable | 615 | 422 | |||
Customer deposits | 0 | 0 | |||
Intercompany Liabilities | 258 | 949 | |||
Operating Lease, Liability | 2,724 | ||||
Other liabilities | 6,922 | 9,191 | |||
Community Development District Obligation | 0 | 0 | |||
Obligation for consolidated inventory not owned | 0 | 0 | |||
Notes payable bank - homebuilding operations | 0 | 0 | |||
Notes payable bank - financial services operations | 136,904 | 153,168 | |||
Notes payable - other | 0 | 0 | |||
Senior notes due 2021 - net | 0 | 0 | |||
Senior notes due 2025 - net | 0 | 0 | |||
TOTAL LIABILITIES | 147,423 | 163,730 | |||
TOTAL SHAREHOLDERS' EQUITY | 38,142 | 36,110 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 185,565 | 199,840 | |||
Guarantor Subsidiaries [Member] | |||||
ASSETS: | |||||
Cash, Cash Equivalents, and Restricted Cash | 219 | 5,554 | $ 131,522 | $ 20,927 | |
Mortgage loans Held-for-sale | 0 | 0 | |||
Inventory | 1,769,507 | 1,674,460 | |||
Property and equipment - net | 21,372 | 28,485 | |||
Investment in joint venture arrangements | 35,391 | 33,297 | |||
Operating Lease, Right-of-Use Asset | 15,689 | ||||
Investment in subsidiaries | 0 | 0 | |||
Deferred income taxes, net of valuation allowance | 9,631 | 13,482 | |||
Intercompany Assets | 0 | 0 | |||
Goodwill | 16,400 | 16,400 | |||
Other assets | 56,134 | 47,738 | |||
TOTAL ASSETS | 1,924,343 | 1,819,416 | |||
LIABILITIES: | |||||
Accounts payable | 130,136 | 131,089 | |||
Customer deposits | 34,462 | 32,055 | |||
Intercompany Liabilities | 618,946 | 578,498 | |||
Operating Lease, Liability | 15,691 | ||||
Other liabilities | 141,015 | 140,860 | |||
Community Development District Obligation | 13,531 | 12,392 | |||
Obligation for consolidated inventory not owned | 7,934 | 19,308 | |||
Notes payable bank - homebuilding operations | 66,000 | 117,400 | |||
Notes payable bank - financial services operations | 0 | 0 | |||
Notes payable - other | 5,828 | 5,938 | |||
Senior notes due 2021 - net | 0 | 0 | |||
Senior notes due 2025 - net | 0 | 0 | |||
TOTAL LIABILITIES | 1,033,543 | 1,037,540 | |||
TOTAL SHAREHOLDERS' EQUITY | 890,800 | 781,876 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,924,343 | $ 1,819,416 |
Supplemental Guarantor Inform_5
Supplemental Guarantor Information Supplemental Guarantor Information - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Jun. 30, 2013 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | |||||
Net cash (used in) provided by operating activities | $ 65,631 | $ (2,592) | $ (53,184) | ||
Net Cash Provided by (Used in) Investing Activities [Abstract] | |||||
Purchase of property and equipment | (4,526) | (8,141) | (8,799) | ||
Acquisition | $ (101,000) | 0 | (100,960) | 0 | |
Proceeds from the sale of mortgage servicing rights | 0 | 6,335 | 8,212 | ||
Intercompany Investing | 0 | 0 | 0 | ||
Investment in and advances to joint venture arrangements | (30,188) | (31,867) | (12,088) | ||
Proceeds from sale of property | 6,308 | 0 | 0 | ||
Return of Capital from Joint Venture Arrangements | 812 | 676 | 3,518 | ||
Net cash provided by (used in) investing activities | (27,594) | (133,957) | (9,157) | ||
Net Cash Provided by (Used in) Financing Activities [Abstract] | |||||
Redemption of preferred shares | $ (50,400) | (50,420) | |||
Proceeds from issuance of senior notes | 250,000 | ||||
Proceeds from issuance of convertible senior subordinated notes | 0 | (65,941) | 0 | ||
Proceeds from bank borrowings - homebuilding operations | 696,500 | 666,600 | 398,300 | ||
Repayments of bank borrowings - homebuilding operations | (747,900) | (549,200) | (438,600) | ||
(Net repayment of) net proceeds from bank borrowings - financial services operations | (16,264) | (15,027) | 15,300 | ||
Proceeds from (principal repayment of) notes payable-other and community development district bond obligations | (110) | (4,638) | 4,161 | ||
Dividends paid on preferred shares | 0 | 0 | (3,656) | ||
Repurchase of common shares | (5,150) | (25,709) | 0 | ||
Intercompany financing | 0 | 0 | 0 | ||
Debt issue costs | (203) | (248) | (6,707) | ||
Proceeds from exercise of stock options | 19,644 | 538 | 11,225 | ||
Net cash provided (used in) by financing activities | (53,483) | 6,375 | 179,603 | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | (15,446) | (130,174) | 117,262 | ||
Cash, Cash Equivalents, and Restricted Cash-Period Start | 151,703 | 21,529 | 151,703 | 34,441 | |
Cash, Cash Equivalents, and Restricted Cash-Period End | 6,083 | 21,529 | 151,703 | ||
Consolidation, Eliminations [Member] | |||||
Net Cash Provided by (Used in) Operating Activities [Abstract] | |||||
Net cash (used in) provided by operating activities | (16,630) | (12,185) | (15,581) | ||
Net Cash Provided by (Used in) Investing Activities [Abstract] | |||||
Purchase of property and equipment | 0 | 0 | 0 | ||
Acquisition | 0 | ||||
Proceeds from the sale of mortgage servicing rights | 0 | ||||
Intercompany Investing | 31,124 | (12,986) | (27,270) | ||
Investment in and advances to joint venture arrangements | 0 | 0 | 0 | ||
Proceeds from sale of property | 0 | ||||
Return of Capital from Joint Venture Arrangements | 0 | 0 | 0 | ||
Net cash provided by (used in) investing activities | 31,124 | (12,986) | (27,270) | ||
Net Cash Provided by (Used in) Financing Activities [Abstract] | |||||
Redemption of preferred shares | 0 | ||||
Proceeds from issuance of senior notes | 0 | ||||
Proceeds from issuance of convertible senior subordinated notes | 0 | ||||
Proceeds from bank borrowings - homebuilding operations | 0 | 0 | 0 | ||
Repayments of bank borrowings - homebuilding operations | 0 | 0 | 0 | ||
(Net repayment of) net proceeds from bank borrowings - financial services operations | 0 | 0 | 0 | ||
Proceeds from (principal repayment of) notes payable-other and community development district bond obligations | 0 | 0 | 0 | ||
Dividends paid on preferred shares | 16,630 | 12,185 | 15,581 | ||
Repurchase of common shares | 0 | 0 | |||
Intercompany financing | (36,849) | 12,986 | 27,270 | ||
Debt issue costs | 0 | 0 | 0 | ||
Proceeds from exercise of stock options | 0 | 0 | 0 | ||
Net cash provided (used in) by financing activities | (20,219) | 25,171 | 42,851 | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | (5,725) | 0 | 0 | ||
Cash, Cash Equivalents, and Restricted Cash-Period Start | 0 | 0 | 0 | 0 | |
Cash, Cash Equivalents, and Restricted Cash-Period End | (5,725) | 0 | 0 | ||
Parent Company [Member] | |||||
Net Cash Provided by (Used in) Operating Activities [Abstract] | |||||
Net cash (used in) provided by operating activities | 16,630 | 12,185 | 15,581 | ||
Net Cash Provided by (Used in) Investing Activities [Abstract] | |||||
Purchase of property and equipment | 0 | 0 | 0 | ||
Acquisition | 0 | ||||
Proceeds from the sale of mortgage servicing rights | 0 | ||||
Intercompany Investing | (31,124) | 12,986 | 27,270 | ||
Investment in and advances to joint venture arrangements | 0 | 0 | 0 | ||
Proceeds from sale of property | 0 | ||||
Return of Capital from Joint Venture Arrangements | 0 | 0 | 0 | ||
Net cash provided by (used in) investing activities | (31,124) | 12,986 | 27,270 | ||
Net Cash Provided by (Used in) Financing Activities [Abstract] | |||||
Redemption of preferred shares | (50,420) | ||||
Proceeds from issuance of senior notes | 0 | ||||
Proceeds from issuance of convertible senior subordinated notes | 0 | ||||
Proceeds from bank borrowings - homebuilding operations | 0 | 0 | 0 | ||
Repayments of bank borrowings - homebuilding operations | 0 | 0 | 0 | ||
(Net repayment of) net proceeds from bank borrowings - financial services operations | 0 | 0 | 0 | ||
Proceeds from (principal repayment of) notes payable-other and community development district bond obligations | 0 | 0 | 0 | ||
Dividends paid on preferred shares | 0 | 0 | (3,656) | ||
Repurchase of common shares | (5,150) | (25,709) | |||
Intercompany financing | 0 | 0 | 0 | ||
Debt issue costs | 0 | 0 | 0 | ||
Proceeds from exercise of stock options | 19,644 | 538 | 11,225 | ||
Net cash provided (used in) by financing activities | 14,494 | (25,171) | (42,851) | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | 0 | 0 | 0 | ||
Cash, Cash Equivalents, and Restricted Cash-Period Start | 0 | 0 | 0 | 0 | |
Cash, Cash Equivalents, and Restricted Cash-Period End | 0 | 0 | 0 | ||
Guarantor Subsidiaries [Member] | |||||
Net Cash Provided by (Used in) Operating Activities [Abstract] | |||||
Net cash (used in) provided by operating activities | 36,830 | (25,882) | (63,922) | ||
Net Cash Provided by (Used in) Investing Activities [Abstract] | |||||
Purchase of property and equipment | (4,264) | (7,896) | (8,535) | ||
Acquisition | (100,960) | ||||
Proceeds from the sale of mortgage servicing rights | 0 | ||||
Intercompany Investing | 0 | 0 | 0 | ||
Investment in and advances to joint venture arrangements | (30,036) | (30,588) | (6,117) | ||
Proceeds from sale of property | 6,308 | ||||
Return of Capital from Joint Venture Arrangements | 0 | 0 | 0 | ||
Net cash provided by (used in) investing activities | (27,992) | (139,444) | (14,652) | ||
Net Cash Provided by (Used in) Financing Activities [Abstract] | |||||
Redemption of preferred shares | 0 | ||||
Proceeds from issuance of senior notes | 250,000 | ||||
Proceeds from issuance of convertible senior subordinated notes | (65,941) | ||||
Proceeds from bank borrowings - homebuilding operations | 696,500 | 666,600 | 398,300 | ||
Repayments of bank borrowings - homebuilding operations | (747,900) | (549,200) | (438,600) | ||
(Net repayment of) net proceeds from bank borrowings - financial services operations | 0 | 0 | 0 | ||
Proceeds from (principal repayment of) notes payable-other and community development district bond obligations | (110) | (4,638) | 4,161 | ||
Dividends paid on preferred shares | 0 | 0 | 0 | ||
Repurchase of common shares | 0 | 0 | |||
Intercompany financing | 37,337 | (7,388) | (18,143) | ||
Debt issue costs | 0 | (75) | (6,549) | ||
Proceeds from exercise of stock options | 0 | 0 | 0 | ||
Net cash provided (used in) by financing activities | (14,173) | 39,358 | 189,169 | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | (5,335) | (125,968) | 110,595 | ||
Cash, Cash Equivalents, and Restricted Cash-Period Start | 131,522 | 5,554 | 131,522 | 20,927 | |
Cash, Cash Equivalents, and Restricted Cash-Period End | 219 | 5,554 | 131,522 | ||
Non-Guarantor Subsidiaries [Member] | |||||
Net Cash Provided by (Used in) Operating Activities [Abstract] | |||||
Net cash (used in) provided by operating activities | 28,801 | 23,290 | 10,738 | ||
Net Cash Provided by (Used in) Investing Activities [Abstract] | |||||
Purchase of property and equipment | (262) | (245) | (264) | ||
Acquisition | 0 | ||||
Proceeds from the sale of mortgage servicing rights | 6,335 | 8,212 | |||
Intercompany Investing | 0 | 0 | 0 | ||
Investment in and advances to joint venture arrangements | (152) | (1,279) | (5,971) | ||
Proceeds from sale of property | 0 | ||||
Return of Capital from Joint Venture Arrangements | 812 | 676 | 3,518 | ||
Net cash provided by (used in) investing activities | 398 | 5,487 | 5,495 | ||
Net Cash Provided by (Used in) Financing Activities [Abstract] | |||||
Redemption of preferred shares | 0 | ||||
Proceeds from issuance of senior notes | 0 | ||||
Proceeds from issuance of convertible senior subordinated notes | 0 | ||||
Proceeds from bank borrowings - homebuilding operations | 0 | 0 | 0 | ||
Repayments of bank borrowings - homebuilding operations | 0 | 0 | 0 | ||
(Net repayment of) net proceeds from bank borrowings - financial services operations | (16,264) | (15,027) | 15,300 | ||
Proceeds from (principal repayment of) notes payable-other and community development district bond obligations | 0 | 0 | 0 | ||
Dividends paid on preferred shares | (16,630) | (12,185) | (15,581) | ||
Repurchase of common shares | 0 | 0 | |||
Intercompany financing | (488) | (5,598) | (9,127) | ||
Debt issue costs | (203) | (173) | (158) | ||
Proceeds from exercise of stock options | 0 | 0 | 0 | ||
Net cash provided (used in) by financing activities | (33,585) | (32,983) | (9,566) | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | (4,386) | (4,206) | 6,667 | ||
Cash, Cash Equivalents, and Restricted Cash-Period Start | $ 20,181 | 15,975 | 20,181 | 13,514 | |
Cash, Cash Equivalents, and Restricted Cash-Period End | $ 11,589 | $ 15,975 | $ 20,181 |
Supplementary Financial Data _2
Supplementary Financial Data Supplementary Financial Data (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplementary Financial Data [Abstract] | |||||||||||
Revenue | $ 742,150 | $ 653,345 | $ 623,686 | $ 481,109 | $ 722,485 | $ 567,842 | $ 558,098 | $ 437,857 | $ 2,500,290 | $ 2,286,282 | $ 1,961,971 |
Gross margin | 142,775 | 134,181 | 119,829 | 92,642 | 130,039 | 115,813 | 108,762 | 89,155 | |||
Net Income Available to Common Stockholders | $ 41,780 | $ 37,838 | $ 30,246 | $ 17,723 | $ 32,407 | $ 29,282 | $ 27,911 | $ 18,063 | $ 127,587 | $ 107,663 | $ 66,168 |
Earnings Per Share, Basic | $ 1.48 | $ 1.35 | $ 1.10 | $ 0.64 | $ 1.17 | $ 1.03 | $ 0.98 | $ 0.64 | $ 4.58 | $ 3.81 | $ 2.57 |
Earnings Per Share, Diluted | $ 1.44 | $ 1.32 | $ 1.08 | $ 0.63 | $ 1.15 | $ 1.01 | $ 0.96 | $ 0.60 | $ 4.48 | $ 3.70 | $ 2.26 |
Basic Weighted Average Shares Outstanding | 28,297 | 27,981 | 27,599 | 27,498 | 27,774 | 28,469 | 28,571 | 28,124 | 27,846 | 28,234 | 25,769 |
Diluted Weighted Average Shares Outstanding | 29,049 | 28,598 | 28,090 | 27,970 | 28,181 | 28,906 | 29,101 | 30,544 | 28,475 | 29,178 | 30,688 |
Purchase Accounting Adjustments | $ 100 | $ 100 | $ 400 | $ 600 | $ 700 | $ 3,000 | $ 900 | ||||
Total valuation adjustments and write-offs | $ 5,000 | $ 5,800 | $ 5,000 | $ 5,800 | $ 7,700 |
Share Repurchase Program (Detai
Share Repurchase Program (Details) - USD ($) $ in Thousands | 12 Months Ended | 17 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | |
Share Repurchase Program [Abstract] | |||
Stock Repurchase Program, Authorized Amount | $ 50,000 | $ 50,000 | |
Treasury Stock, Shares, Acquired | 200,000 | 1,300,000 | |
Treasury Stock, Value, Acquired, Cost Method | $ 5,150 | $ 25,709 | $ 30,900 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 19,100 | $ 19,100 |