Segment Information

12 Months Ended

Dec. 31, 2018

The Company’s operations are organized into two reportable segments: homebuilding and fee building. The homebuilding reportable segment aggregates the Southern California, Northern California and Arizona homebuilding operating segments. 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,
	2018			2017		2016
	(Dollars in thousands)
Revenues:
Homebuilding	$	504,029		$	560,842	$	507,949
Fee building, including management fees	163,537			190,324		186,507
Total	$	667,566		$	751,166	$	694,456

Pretax income (loss):
Homebuilding	$	(24,706	)	$	27,034	$	25,546
Fee building, including management fees	4,401			5,497		8,404
Total	$	(20,305	)	$	32,531	$	33,950



	December 31,
	2018		2017
	(Dollars in thousands)
Assets:
Homebuilding	$	685,218	$	631,087
Fee building	10,879		13,425
Total	$	696,097	$	644,512