Note 6 - Accumulated Other Comprehensive Income

12 Months Ended

Dec. 31, 2018

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,
	2018			2017			2016
	(Dollars in thousands)
Unrealized gains (losses) on available-for-sale marketable securities (1) :
Beginning balance	$	3,992		$	7,730		$	3,657
Adoption of accounting standards (Note 2)		(3,992	)		-			-
Other comprehensive income (loss) before reclassifications		-			7,320			3,844
Amounts reclassified from AOCI (2)		-			(11,058	)		229
Ending balance	$	-		$	3,992		$	7,730
Unrealized gains on available-for-sale metropolitan district bond securities (1) :
Beginning balance	$	-		$	14,341		$	12,058
Other comprehensive income before reclassifications		-			7,884			2,283
Amounts reclassified from AOCI (2)		-			(22,225	)		-
Ending balance	$	-		$	-		$	14,341
Total ending AOCI	$	-		$	3,992		$	22,071

(

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	2018		2017			2016
	(Dollars in thousands)
Homebuilding: Net realized gains (losses) from the sales of marketable securities	$	-	$	17,775		$	979
Homebuilding: Realized gain from the sale of metropolitan district bond securities (related party)		-		35,847			-
Homebuilding: Other-than-temporary impairment of marketable securities		-		(51	)		(1,070	)
Financial services: Interest and other income		-		347			95
Financial services: Other-than-temporary impairment of marketable securities		-		(235	)		(373	)
Income before income taxes		-		53,683			(369	)
Provision for income taxes		-		(20,400	)		140
Net income	$	-	$	33,283		$	(229	)