Note 8 - Inventories

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Inventory Disclosure [Text Block]

8. Inventories

The table below sets forth, by reportable segment, information relating to our homebuilding inventories.

	December 31,		December 31,
	2019		2018
	(Dollars in thousands)
Housing Completed or Under Construction:
West	$	589,040	$	521,960
Mountain		358,370		347,738
East		88,781		82,738
Subtotal		1,036,191		952,436
Land and Land Under Development:
West		772,189		705,591
Mountain		468,718		402,657
East		89,477		72,310
Subtotal		1,330,384		1,180,558
Total Inventories	$	2,366,575	$	2,132,994

Inventory impairments recognized by segment for the years ended December 31, 2019, 2018 and 2017 are shown in the table below.

	Year Ended December 31,
	2019		2018		2017
	(Dollars in thousands)
Housing Completed or Under Construction:
West	$	100	$	2,860	$	4,733
Mountain		-		417		390
East		435		1,227		2,720
Subtotal		535		4,504		7,843
Land and Land Under Development:
West		-		16,198		1,252
Mountain		400		958		380
East		-		190		535
Subtotal		400		17,346		2,167
Total Inventory Impairments	$	935	$	21,850	$	10,010

During the year ended December 31, 2019, we recorded $0.9 million of inventory impairments, of which $0.4 million related to two projects in our East segment, $0.4 million related to one project in our Mountain segment, and $0.1 million related to one project in our West segment.

During the year ended December 31, 2018, we recorded $21.9 million of inventory impairments, of which $19.1 million related to seven projects in our West segment, $1.4 million related to five projects in our East segment and $1.4 million related to three projects in our Mountain segment.

The table below provides quantitative data, for the periods presented, used in determining the fair value of the impaired inventory.

	Impairment Data								Quantitative Data
Three Months Ended	Total Subdivisions Tested		Inventory Impairments		Fair Value of Inventory After Impairments		Number of Subdivisions Impaired		Discount Rate
	(Dollars in thousands)
March 31, 2019		16	$	610	$	10,476		2			N/A
June 30, 2019		12		-		-		0			N/A
September 30, 2019		16		-		-		0			N/A
December 31, 2019		14		325		3,948		2			N/A
Total			$	935
March 31, 2018		24	$	550	$	5,223		2			12%
June 30, 2018		17		200		767		1			12%
September 30, 2018		17		11,098		29,874		2		12%	-	18%
December 31, 2018		20		10,002		32,248		10		12%	-	18%
Total			$	21,850
March 31, 2017		33	$	4,850	$	19,952		2		12%	-	18%
June 30, 2017		35		-		-		0			N/A
September 30, 2017		33		4,540		52,190		9		10%	-	15%
December 31, 2017		23		620		14,245		2		10%	-	12%
Total			$	10,010