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Note 7 - Other Assets - Summary of Other Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Capitalized selling and marketing costs, net(1) [1] $ 7,148 $ 11,282
Deferred tax asset, net 17,503 13,937
Prepaid income taxes 1,032 514
Insurance receivable(2) [2] 10,900 0
Warranty insurance receivable(3) [3] 1,852 915
Prepaid expenses 2,729 6,348
Right-of-use lease asset(4) [4] 1,988 0
Other 231 456
Other assets $ 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 $2.8 million and $5.6 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.