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Segment Information
 6 Months Ended 12 Months Ended
Jun. 30, 2018
Dec. 31, 2018
Segment Reporting [Abstract]    
Number of Operating Segments 3  
Number of Reportable Segments 2  
Segment Information  
SEGMENT INFORMATION

Prior to the third quarter of 2018, the Company’s operations were organized into two reportable segments: builder operations and land development. Builder operations consisted of three operating segments: Texas, Georgia and Florida. The operations of the Company’s controlled builders were aggregated into these three operating segments based on similar economic characteristics, including geography; housing products; class of homebuyer; regulatory environments; and methods used to construct and sell homes.

During the third quarter of 2018, the Company re-evaluated its reportable segments under ASC 280. The Company has further aggregated the Georgia and Florida operating segments into one reportable segment - Builder operations Southeast. The Texas operating segment was redefined as a second reportable segment - Builder operations Central. Land development is a separate reportable segment.

The Company believes such aggregation is consistent with the objective and basic principles of ASC 280 and provides the most meaningful information about the types of business activities in which the Company engages and the economic environments in which it operates.

Corporate operations are reported as a non-operating segment and include activities which support the Company’s builder operations, land development, title and mortgage operations through centralization of certain administrative functions, such as finance, treasury, information technology and human resources, as well as development of strategic initiatives. Unallocated corporate expenses are reported in the corporate and other segment as these activities do not share a majority of aggregation criteria with either the builder operations or land development segments.

While the operations of Challenger meet the criteria for an operating segment, they do not meet the quantitative thresholds of ASC 280 to be separately reported and disclosed. As such, Challenger’s results are included within the corporate and other segment.

Green Brick Title, LLC (“Green Brick Title”), Providence Title and Green Brick Mortgage operations are not economically similar to either builder operations or land development and do not meet the quantitative thresholds of ASC 280 to be separately reported and disclosed. As such, these entities’ results are included within the corporate and other segment.

Segment information for the years ended December 31, 2017 and 2016 has been restated to conform with the revised segment presentation for the year ended December 31, 2018.

Financial information relating to the Company’s reportable segments is as follows. Operational results of each reportable segment are not necessarily indicative of the results that would have been achieved had the reportable segment been an independent, stand-alone entity during the periods presented.
 
Years Ended December 31,
(in thousands)
2018
 
2017
 
2016
Revenues: (1)
 
 
 
 
 
Builder operations
 
 
 
 
 
Central
$
282,218

 
$
224,670

 
$
206,831

Southeast
301,595

 
214,850

 
169,241

Total builder operations
583,813

 
439,520

 
376,072

Land development
39,834

 
18,730

 
14,913

Total revenues
$
623,647

 
$
458,250

 
$
390,985

 
 
 
 
 
 
Gross profit (loss):
 
 
 
 
 
Builder operations
 
 
 
 


Central
$
61,882

 
$
53,840

 
$
51,013

Southeast
72,187

 
49,033

 
37,808

Total builder operations
134,069

 
102,873

 
88,821

Land development
9,334

 
5,454

 
4,600

Corporate and other (2)
(13,073
)
 
(9,293
)
 
(5,659
)
Total gross profit
$
130,330

 
$
99,034

 
$
87,762

 
 
 
 
 
 
Income (loss) before taxes:
  

 
  

 
  

Builder operations
 
 
 
 
 
Central
$
37,535

 
$
36,224

 
$
34,939

Southeast
47,237

 
34,636

 
24,639

Total builder operations
84,772

 
70,860

 
59,578

Land development
6,155

 
4,320

 
3,611

Corporate and other (3)
(9,256
)
 
(10,943
)
 
(12,635
)
Total income before taxes
$
81,671

 
$
64,237

 
$
50,554

 
 
 
 
 
 
Inventory:
 
 
 
 
 
Builder operations
 
 
 
 
 
Central
$
160,980

 
$
111,271

 
$
76,878

Southeast
159,616

 
99,613

 
90,859

Total builder operations
320,596

 
210,884

 
167,737

Land development
329,105

 
272,542

 
232,726

Corporate and other (4)
19,260

 
12,628

 
9,834

Total inventory
$
668,961

 
$
496,054

 
$
410,297

 
 
 
 
 
 
Goodwill: (5)
 
 
 
 
 
Builder operations - Southeast
$
680

 
$
—

 
$
—

 

(1)
The sum of Builder operations Central and Southeast segments’ revenues does not equal residential units revenue included in the consolidated statements of income in periods when our controlled builders have revenues from land or lot closings, which for the years ended December 31, 2018 and 2016 were $4.9 million and $0.3 million, respectively.
(2)
Corporate and other gross profit is comprised of capitalized overhead and capitalized interest adjustments that are not allocated to builder operations and land development segments.
(3)
Corporate and other income (loss) before taxes includes results from Green Brick Title, Challenger, Green Brick Mortgage, and Providence Title.
(4)
Corporate and other inventory consists of capitalized overhead and interest related to work in process and land under development.
(5)
In connection with the GRBK GHO business combination, the Company recorded goodwill of $0.7 million.