Note 15 - Segment Information

3 Months Ended

Mar. 31, 2020

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 Southern California and Northern 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:

	Three Months Ended March 31,
	2020			2019
	(Dollars in thousands)
Homebuilding revenues:
California home sales	$	83,280		$	83,332
California land sales		147			—
Arizona home sales		12,379			15,854
Total homebuilding revenues		95,806			99,186
Fee building revenues, including management fees		36,227			19,662
Total revenues	$	132,033		$	118,848
Homebuilding pretax loss:
California	$	(4,451	)	$	(2,567	)
Arizona		(14,692	)		(478	)
Total homebuilding loss		(19,143	)		(3,045	)
Fee building pretax income, including management fees		730			394
Total loss	$	(18,413	)	$	(2,651	)

	March 31,		December 31,
	2020		2019
	(Dollars in thousands)
Homebuilding assets:
California	$	398,714	$	416,179
Arizona		61,519		82,234
Total homebuilding assets		460,233		498,413
Fee building assets		12,636		11,193
Corporate unallocated assets		107,067		93,583
Total assets	$	579,936	$	603,189