Segment Information

12 Months Ended

Dec. 31, 2016

Segment Information

Segment Information

Note 13 - Segment Information

Our operating segments are defined as a component of an enterprise for which discrete financial information is available and is reviewed regularly by the chief operating decision maker to evaluate performance and make operating decisions. We have identified our chief operating decision maker as our Chief Executive Officer.

The following table summarizes our information for reportable segments for the years ended December 31, 2016,  2015 and 2014 (in thousands):

	For the Years Ended December 31,
	2016		2015		2014
Operating income:
Florida
Revenues:
Homebuilding	$	373,383	$	300,260	$	193,218
Amenity and other		11,698		12,385		10,140
Land sales		3,116		6,466		18,158
Total revenues		388,197		319,111		221,516
Expenses:
Homebuilding cost of revenues		291,372		239,001		156,439
Homebuilding selling, general and administrative		46,113		38,500		24,388
Amenity and other		11,062		10,587		10,524
Land sales		770		823		10,316
Segment operating income	$	38,880	$	30,200	$	19,849
Carolinas
Revenues:
Homebuilding	$	238,549	$	114,277	$	1,288
Land sales		265		—		—
Total revenues		238,814		114,277		1,288
Expenses:
Homebuilding cost of revenues		205,348		95,232		1,183
Homebuilding selling, general and administrative		22,807		12,205		2,230
Land sales		289		—		—
Segment operating income (loss)	$	10,370	$	6,840	$	(2,125)
Arizona
Revenues:
Homebuilding	$	152,109	$	84,378	$	48,665
Amenity and other		—		—		6
Land sales		185		—		14,438
Total revenues		152,294		84,378		63,109
Expenses:
Homebuilding cost of revenues		128,751		71,305		41,261
Homebuilding selling, general and administrative		14,994		11,981		7,747
Amenity and other		86		115		425
Land sales		171		—		11,688
Segment operating income	$	8,292	$	977	$	1,988
Operating income	$	57,542	$	38,017	$	19,712
Unallocated income (expenses):
Interest income and other		16		308		431
Corporate general and administrative expenses		(16,305)		(16,900)		(15,941)
Interest expense		(3,667)		(9,039)		(5,805)
Income (loss) before income taxes		37,586		12,386		(1,603)
Income tax expense (benefit)		(109,521)		436		—
Net income attributable to non-controlling interests		—		—		329
Net income (loss)	$	147,107	$	11,950	$	(1,932)

	December 31,
	2016		2015
Segment assets:
Florida	$	317,398	$	328,233
Carolinas		178,333		152,141
Arizona		158,783		175,929
Unallocated assets		185,719		79,836
Total assets	$	840,233	$	736,139

· Our businesses are conducted in the United States.

· Identifiable assets by segment are those assets that are used in the operations of each segment.

· No significant part of the business is dependent upon a single customer or group of customers.

· The caption “Unallocated assets” under the table depicting the segment assets represents the following as of December 31, 2016 and 2015, respectively: net deferred tax assets of $110.3 million and $0.0 million; cash, cash equivalents and restricted cash of $67.8 million and $72.9 million; property and equipment of $1.2 million and $1.8 million; investment in and notes from unconsolidated entities of $1.2 million and $1.2 million; receivables of $0.2 million and $0.0 million; and prepaid expenses and other assets of $5.1 million and $4.0 million. None of the foregoing are directly attributable to a reportable segment in accordance with ASC 280, Segment Reporting.

· There is no interest expense from the Florida,  Carolinas and Arizona segments included in segment operating income during 2016,  2015 and 2014.

· Included in segment operating income for 2016 is depreciation expense (including amortization of assets under capital leases) of $2.1 million, $0.1 million, $0.0 million and $0.7 million from Florida, the Carolinas, Arizona, and unallocated corporate general and administrative expenses, respectively. Included in segment operating income for 2015 is depreciation expense of $2.4 million, $0.1 million, $0.0 million and $0.6 million from Florida, the Carolinas, Arizona, and unallocated corporate general and administrative expenses, respectively. Included in segment operating income for 2014 is depreciation expense of $2.4 million, $0.0 million, $0.1 million and $0.6 million from Florida, the Carolinas, Arizona, and unallocated corporate general and administrative expenses, respectively.

· During the year ended December 31, 2016, there was $0.8 million of impairment losses recognized. During 2015 and 2014, there were no significant impairment losses recognized.

· Goodwill of $6.1 million and $13.2 million has been assigned to the Florida and Carolinas segments, respectively.