| 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):
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For the Years Ended December 31,
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2016
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2015
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2014
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Operating income:
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Florida
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Revenues:
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Homebuilding
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$
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373,383
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$
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300,260
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$
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193,218
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Amenity and other
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11,698
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12,385
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10,140
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Land sales
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3,116
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6,466
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18,158
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Total revenues
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388,197
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319,111
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221,516
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Expenses:
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Homebuilding cost of revenues
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291,372
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239,001
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156,439
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Homebuilding selling, general and administrative
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46,113
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38,500
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24,388
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Amenity and other
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11,062
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10,587
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10,524
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Land sales
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770
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823
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10,316
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Segment operating income
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$
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38,880
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$
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30,200
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$
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19,849
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Carolinas
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Revenues:
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Homebuilding
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$
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238,549
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$
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114,277
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$
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1,288
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Land sales
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265
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—
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—
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Total revenues
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238,814
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114,277
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1,288
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Expenses:
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Homebuilding cost of revenues
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205,348
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95,232
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1,183
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Homebuilding selling, general and administrative
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22,807
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12,205
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2,230
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Land sales
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289
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—
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—
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Segment operating income (loss)
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$
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10,370
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$
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6,840
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$
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(2,125)
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Arizona
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Revenues:
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Homebuilding
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$
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152,109
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$
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84,378
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$
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48,665
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Amenity and other
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—
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—
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6
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Land sales
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185
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—
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14,438
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Total revenues
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152,294
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84,378
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63,109
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Expenses:
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Homebuilding cost of revenues
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128,751
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71,305
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41,261
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Homebuilding selling, general and administrative
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14,994
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11,981
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7,747
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Amenity and other
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86
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115
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425
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Land sales
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171
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—
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11,688
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Segment operating income
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$
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8,292
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$
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977
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$
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1,988
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Operating income
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$
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57,542
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$
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38,017
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$
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19,712
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Unallocated income (expenses):
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Interest income and other
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16
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308
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431
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Corporate general and administrative expenses
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(16,305)
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(16,900)
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(15,941)
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Interest expense
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(3,667)
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(9,039)
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(5,805)
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Income (loss) before income taxes
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37,586
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12,386
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(1,603)
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Income tax expense (benefit)
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(109,521)
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436
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—
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Net income attributable to non-controlling interests
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—
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—
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329
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Net income (loss)
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$
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147,107
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$
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11,950
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$
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(1,932)
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December 31,
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2016
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2015
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Segment assets:
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Florida
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$
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317,398
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$
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328,233
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Carolinas
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178,333
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152,141
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Arizona
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158,783
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175,929
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Unallocated assets
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185,719
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79,836
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Total assets
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$
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840,233
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$
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736,139
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Our businesses are conducted in the United States. |
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Identifiable assets by segment are those assets that are used in the operations of each segment. |
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No significant part of the business is dependent upon a single customer or group of customers. |
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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. |
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There is no interest expense from the Florida, Carolinas and Arizona segments included in segment operating income during 2016, 2015 and 2014. |
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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. |
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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. |
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Goodwill of $6.1 million and $13.2 million has been assigned to the Florida and Carolinas segments, respectively. |
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