Segment Information

12 Months Ended

Dec. 31, 2017

14. Segment Information

The Company’s operations are organized into two reportable segments: homebuilding 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 acquisition results, and underlying demand and supply in accordance with ASC Topic 280, Segment Reporting.

Our homebuilding operations acquire and develop land and construct and sell single-family attached and detached homes. Our fee building operations build homes and manage construction 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. The assets of our fee building segment primarily consist of cash, restricted cash 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 and assets are included in our homebuilding segment.

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,
	2017		2016		2015
	(Dollars in thousands)
Revenues:
Homebuilding	$	560,842	$	507,949	$	280,209
Fee building, including management fees	190,324		186,507		149,890
Total	$	751,166	$	694,456	$	430,099

Pretax income:
Homebuilding	$	27,034	$	25,546	$	23,698
Fee building, including management fees	5,497		8,404		10,213
Total	$	32,531	$	33,950	$	33,911



	December 31,
	2017		2016
	(Dollars in thousands)
Assets:
Homebuilding	$	631,087	$	393,095
Fee building	13,425		26,041
Total	$	644,512	$	419,136