Note 15 - Segment Information

6 Months Ended

Jun. 30, 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 June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
	(Dollars in thousands)
Homebuilding revenues:
California home sales	$	71,597		$	132,830		$	154,877		$	216,162
California land sales		10			—			157			—
Arizona home sales		6,160			7,634			18,539			23,488
Total homebuilding revenues		77,767			140,464			173,573			239,650
Fee building revenues, including management fees		21,193			22,285			57,420			41,947
Total revenues	$	98,960		$	162,749		$	230,993		$	281,597
Homebuilding pretax income (loss):
California	$	(38,238	)	$	2,846		$	(42,689	)	$	279
Arizona		(3,192	)		(796	)		(17,884	)		(1,274	)
Total homebuilding pretax income (loss)		(41,430	)		2,050			(60,573	)		(995	)
Fee building pretax income, including management fees		208			515			938			909
Total pretax income (loss)	$	(41,222	)	$	2,565		$	(59,635	)	$	(86	)

	June 30,		December 31,
	2020		2019
	(Dollars in thousands)
Homebuilding assets:
California	$	379,199	$	416,179
Arizona		64,690		82,234
Total homebuilding assets		443,889		498,413
Fee building assets		4,492		11,193
Corporate unallocated assets		93,213		93,583
Total assets	$	541,594	$	603,189