Note 6 - Accumulated Other Comprehensive Income

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Comprehensive Income (Loss) Note [Text Block]

6. Accumulated Other Comprehensive Income

The following table sets forth our changes in accumulated other comprehensive income:

	Year Ended December 31,
	2019		2018			2017
	(Dollars in thousands)
Unrealized gains (losses) on available-for-sale marketable securities (1) :
Beginning balance	$	-	$	3,992		$	7,730
Adoption of accounting standards (Note 2)		-		(3,992	)		-
Other comprehensive income (loss) before reclassifications		-		-			7,320
Amounts reclassified from AOCI (2)		-		-			(11,058	)
Ending balance	$	-	$	-		$	3,992
Unrealized gains on available-for-sale metropolitan district bond securities (1) :
Beginning balance	$	-	$	-		$	14,341
Other comprehensive income before reclassifications		-		-			7,884
Amounts reclassified from AOCI		-		-			(22,225	)
Ending balance	$	-	$	-		$	-
Total ending AOCI	$	-	$	-		$	3,992

(1) All amounts net-of-tax.

(2) See separate table below for details about these reclassifications.

During the first quarter of 2018, an election was made to reclassify the income tax effects of the Tax Cuts and Jobs Act related to net unrealized gains on equity investments from accumulated other comprehensive income to retained earnings. See Note 2 for further discussion of adoption of new accounting standards.

The Metropolitan District Limited Tax General Obligation Capital Appreciation Bonds Series 2007 (the “Metro Bonds”) were acquired from a quasi-municipal corporation in the state of Colorado, which was formed to help fund and maintain the infrastructure associated with a master-planned community developed by our Company. During the 2017 third quarter, we sold the Metro Bonds for net proceeds of $44.3 million. With a cost basis of $8.5 million, we recorded a realized gain of $35.8 million, which is included in interest and other income in the homebuilding section of our consolidated statements of operations and comprehensive income for the year ended December 31, 2017.

The following table sets forth the activity related to reclassifications out of accumulated other comprehensive income (loss) related to available for sale securities:

	Year Ended December 31,
Affected Line Item in the Statements of Operations	2019		2018		2017
	(Dollars in thousands)
Homebuilding: Net realized gains (losses) from the sales of marketable securities	$	-	$	-	$	17,775
Homebuilding: Realized gain from the sale of metropolitan district bond securities (related party)		-		-		35,847
Homebuilding: Other-than-temporary impairment of marketable securities		-		-		(51	)
Financial services: Interest and other income		-		-		347
Financial services: Other-than-temporary impairment of marketable securities		-		-		(235	)
Income before income taxes		-		-		53,683
Provision for income taxes		-		-		(20,400	)
Net income	$	-	$	-	$	33,283