Note 7 - Other Assets

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Other Assets Disclosure [Text Block]

7.    Other Assets

Other assets consist of the following:

	December 31,
	2019		2018
	(Dollars in thousands)
Capitalized selling and marketing costs, net(1)	$	7,148	$	11,282
Deferred tax asset, net		17,503		13,937
Prepaid income taxes		1,032		514
Insurance receivable(2)		10,900		—
Warranty insurance receivable(3)		1,852		915
Prepaid expenses		2,729		6,348
Right-of-use lease asset(4)		1,988		—
Other		231		456
	$	43,383	$	33,452

(1) Capitalized selling and marketing costs includes costs incurred for tangible assets directly used in the sales process such as our sales offices, design studios and model furnishings, and also includes model landscaping costs, which were $2.6 million and $5.4 million as of December 31, 2019 and 2018, respectively.  The Company depreciated $8.7 million and $6.2 million, of capitalized selling and marketing costs to selling and marketing expenses during the years ended December 31, 2019 and 2018, respectively.

(2)	The Company recorded insurance receivables of $10.9 million in connection with $10.9 million of litigation reserves recorded as of December 31, 2019. For more information, please refer to Note 8 .
(3)	The Company adjusted its warranty insurance receivable upward by $1.4 million during 2019 to true-up the receivable to its estimate of qualifying reimbursable expenditures which resulted in pretax income of the same amount.
(4)	In conjunction with the adoption of ASC 842, the Company established a right-of-use asset of $3.1 million on January 1, 2019. For more information, please refer to Note 1 and Note 11.