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 acquisition results, and underlying demand and supply in accordance with ASC Topic 280. Our California homebuilding reportable segment aggregates the Northern California and Southern California homebuilding operating segments.

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 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 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,
	2019			2018
	(Dollars in thousands)
Homebuilding revenues:
Arizona	$	15,854		$	—
California	83,332			79,437
Total homebuilding revenues	99,186			79,437
Fee building revenues, including management fees	19,662			43,794
Consolidated total revenues	$	118,848		$	123,231

Homebuilding pretax loss:
Arizona	$	(478	)	$	(705	)
California	(2,567		)	(1,901		)
Total homebuilding pretax loss	(3,045		)	(2,606		)
Fee building pretax income, including management fees	394			1,095
Total pretax loss	$	(2,651	)	$	(1,511	)



	March 31,		December 31,
	2019		2018
	(Dollars in thousands)
Homebuilding assets:
Arizona	$	92,343	$	86,205
California	552,660		551,807
Total homebuilding assets	645,003		638,012
Fee building assets	6,725		10,879
Corporate unallocated assets	38,912		47,206
Total assets	$	690,640	$	696,097