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, 2017, 2016 and 2015 (in thousands):


	For the Years Ended December 31,
	2017		2016		2015
Operating income:
Florida
Revenues:
Homebuilding	$	363,477	$	373,383	$	300,260
Amenity and other		17,061		11,698		12,385
Land sales		3,349		3,116		6,466
Total revenues		383,887		388,197		319,111
Expenses:
Homebuilding cost of revenue		287,415		291,372		239,001
Homebuilding selling, general and administrative		40,478		46,113		38,500
Amenity and other		14,749		11,062		10,587
Land sales		579		770		823
Segment operating income	$	40,666	$	38,880	$	30,200

Carolinas
Revenues:
Homebuilding	$	306,068	$	238,549	$	114,277
Land sales		1,042		265		—
Total revenues		307,110		238,814		114,277
Expenses:
Homebuilding cost of revenue		266,642		205,348		95,232
Homebuilding selling, general and administrative		32,444		22,807		12,205
Land sales		1,026		289		—
Segment operating income	$	6,998	$	10,370	$	6,840

Arizona
Revenues:
Homebuilding	$	152,071	$	152,109	$	84,378
Land sales		185		185		—
Total revenues		152,256		152,294		84,378
Expenses:
Homebuilding cost of revenue		128,447		128,751		71,305
Homebuilding selling, general and administrative		15,198		14,994		11,981
Amenity and other		89		86		115
Land sales		180		171		—
Segment operating income	$	8,342	$	8,292	$	977

Operating income	$	56,006	$	57,542	$	38,017

Unallocated income (expenses):
Interest income and other		1,063		16		308
Corporate general and administrative expenses		(18,271)		(16,305)		(16,900)
Loss on extinguishment of debt		(9,848)		—		—
Interest expense		(10,618)		(3,667)		(9,039)
Income before income taxes		18,332		37,586		12,386
Income tax expense (benefit)		40,268		(109,521)		436
Net income (loss)	$	(21,936)	$	147,107	$	11,950


	2017		2016
Segment assets:
Florida	$	312,383	$	317,398
Carolinas		238,941		178,333
Arizona		141,566		158,783
Unallocated assets		317,254		185,719
Total assets	$	1,010,144	$	840,233

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, 2017 and 2016, respectively: net deferred tax assets of $70.4 million and $110.3 million; cash, cash equivalents and restricted cash of $241.0 million and $67.8 million; property and equipment of $0.8 million and $1.2 million; receivables of $0.2 million and $0.2 million; and prepaid expenses and other assets of $4.8 million and $5.1 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 2017, 2016 and 2015.

Included in segment operating income for 2017 is depreciation expense (including amortization of capital leases) of $2.2 million, $0.4 million, less than $0.1 million and $0.7 million from Florida, the Carolinas, Arizona and unallocated corporate general and administrative expenses, respectively. 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.

During the years ended December 31, 2017 and 2016, there was $0.9 million and $0.8 million of impairment losses recognized, respectively. During 2015, there were no significant impairment losses recognized.

Goodwill of $6.1 million and $24.2 million has been assigned to the Florida and Carolinas segments, respectively.