Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.21.2
Segment Reporting
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company is engaged in the acquisition, development, and sale of homes and lots in multiple states across the country. The Company is managed by geographic location and each of the five geographic regions targets a wide range of buyer profiles including: first time, move-up, and luxury homebuyers.

The management of the five geographic regions report to the Company's chief operating decision makers (“CODMs”), the Chief Executive Officer and Chief Operating Officer of the Company. The CODMs review the
results of operations, including total revenue and income before income tax expense, to assess profitability and to allocate resources. Accordingly, the Company has presented its operations as the following five reportable segments:

•Arizona
•California
•Florida
•Metro New York
•Texas
The Company has also identified Corporate operations as a non-operating segment, as it serves to support the homebuilding operations through functional departments such as executive, finance, treasury, human resources, accounting and legal. The majority of the corporate personnel and resources are primarily dedicated to activities relating to the homebuilding operations and are allocated based on each segment's respective percentage of assets, revenue and dedicated personnel. 

The following table summarizes total revenue and income before income tax expense by segment:
Three Months Ended September 30, Nine Months Ended September 30,
2021 2020 2021 2020
(dollars in thousands)
Revenue
Arizona $ 65,502  $ 88,031  $ 202,750  $ 194,383 
California 110,046  130,486  346,680  255,487 
Florida 31,161  —  59,519  — 
Metro New York (1)
—  —  —  — 
Texas 7,420  —  15,873  — 
Total revenue $ 214,129  $ 218,517  $ 624,822  $ 449,870 
 
Pretax income (loss)
Arizona $ 5,103  $ 3,281  $ 10,371  $ 1,141 
California 7,965  5,933  22,706  (1,364)
Florida 147  —  1,032  — 
Metro New York (1)
(622) (1,574) (1,592) (18,837)
Texas (209) —  186  — 
Corporate 1,375  (3,473) (15,197) (7,420)
Total pretax income (loss) $ 13,759  $ 4,167  $ 17,506  $ (26,480)
(1)     The Metro New York reportable segment does not currently generate any revenue. Included in income (loss) before income tax expense is income from unconsolidated joint ventures of $0.2 million and $0.8 million for the three and nine months ended September 30, 2021, respectively, and losses of $0.6 million and $16.2 million for the three and nine months ended September 30, 2020, respectively.
The Corporate non-operating segment had pretax income of $1.4 million for the three months ended September 30, 2021 primarily due to a $7.0 million gain on remeasurement of warrant liability partially offset by general and administrative expenses.

The following table summarizes total assets by segment:
September 30, 2021 December 31, 2020
(dollars in thousands)
Assets
Arizona $ 324,319  $ 268,141 
California 450,855  409,705 
Florida 91,215  — 
Metro New York 127,375  120,168 
Texas 18,718  — 
Corporate 60,629  97,750 
Total assets $ 1,073,111  $ 895,764 

As of September 30, 2021, goodwill of $20.7 million and $3.8 million were allocated to the Arizona and Florida segments, respectively. As of December 31, 2020, goodwill of $20.7 million was allocated to the Arizona segment.