Note 15 - Segment Information

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

15.    Segment Information

The Company’s operations are organized into three reportable segments: two homebuilding segments (Arizona and California) and fee building.  In determining the most appropriate reportable segments, we considered similar economic and other characteristics, including product types, average selling prices, gross margins, production processes, suppliers, subcontractors, regulatory environments, land position, and underlying demand and supply in accordance with ASC 280.  Our California homebuilding reportable segment aggregates the Northern California and Southern California homebuilding operating segments

Our homebuilding operations acquire and develop land and construct and sell single-family attached and detached homes and may sell land. Our fee building operations build homes and manage construction and sales related activities on behalf of third-party property owners and our joint ventures. In addition, our corporate operations develop and implement strategic initiatives and support our operating segments by centralizing key administrative functions such as accounting, finance and treasury, information technology, insurance and risk management, litigation, marketing and human resources.  A portion of the expenses incurred by corporate are allocated to the fee building segment primarily based on its respective percentage of revenues and to each homebuilding segment based on its respective investment in and advances to unconsolidated joint ventures and real estate inventories balances. The assets of our fee building segment primarily consist of cash, restricted cash and contracts and accounts receivable. The majority of our corporate personnel and resources are primarily dedicated to activities relating to our homebuilding segment, and, therefore, the balance of any unallocated corporate expenses are allocated within our homebuilding reportable segments.

The reportable segments follow the same accounting policies as our consolidated financial statements described in Note 1. 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. Financial information relating to reportable segments was as follows:

	Year Ended December 31,
	2019			2018			2017
	(Dollars in thousands)
Homebuilding revenues:
California home sales	$	472,242		$	504,029		$	560,842
California land sales		41,664			—			—
Arizona home sales		60,110			—			—
Total homebuilding revenues		574,016			504,029			560,842
Fee building revenues, including management fees		95,333			163,537			190,324
Total revenues	$	669,349		$	667,566		$	751,166
Homebuilding pretax income (loss):
California	$	(5,724	)	$	(19,594	)	$	27,881
Arizona		(8,144	)		(5,112	)		(847	)
Total homebuilding pretax income (loss)		(13,868	)		(24,706	)		27,034
Fee building pretax income, including management fees		2,052			4,401			5,497
Total pretax income (loss)	$	(11,816	)	$	(20,305	)	$	32,531

	December 31,
	2019		2018
	(Dollars in thousands)
Homebuilding assets:
California	$	416,179	$	551,807
Arizona		82,234		86,205
Total homebuilding assets		498,413		638,012
Fee building assets		11,193		10,879
Corporate unallocated assets		93,583		47,206
Total assets	$	603,189	$	696,097