Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 14, 2018 | Jun. 30, 2017 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | WLH | ||
Entity Registrant Name | WILLIAM LYON HOMES | ||
Entity Central Index Key | 1,095,996 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Status | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 593 | ||
Common Class A | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 34,267,510 | ||
Common Class B | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 4,817,394 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 182,710 | $ 42,612 |
Receivables | 10,223 | 9,538 |
Escrow proceeds receivable | 3,319 | 85 |
Real estate inventories - Note 5 | 1,699,850 | 1,771,998 |
Investment in unconsolidated joint ventures - Note 3 | 7,867 | 7,282 |
Goodwill — Note 6 | 66,902 | 66,902 |
Intangibles, net of accumulated amortization of $4,640 as of December 31, 2017 and 2016 — Note 7 | 6,700 | 6,700 |
Deferred income taxes — Note 11 | 47,915 | 75,751 |
Lease right-of-use assets | 14,454 | 13,129 |
Other assets, net | 21,164 | 17,283 |
Total assets | 2,061,104 | 2,011,280 |
LIABILITIES AND EQUITY | ||
Accounts payable | 58,799 | 74,282 |
Accrued expenses | 111,491 | 92,919 |
Notes payable — Note 8: | ||
Notes payable | 94,515 | 155,768 |
Long-term debt | 1,030,184 | 1,080,650 |
Total liabilities | 1,200,474 | 1,247,851 |
Commitments and contingencies — Note 15 | ||
William Lyon Homes stockholders’ equity — Note 13 | ||
Preferred stock, par value $0.01 per share; 10,000,000 shares authorized and no shares issued and outstanding at December 31, 2017 and 2016 | 0 | 0 |
Additional paid-in capital | 454,286 | 419,099 |
Retained earnings | 325,794 | 277,659 |
Total William Lyon Homes stockholders’ equity | 780,472 | 697,086 |
Noncontrolling interests — Note 2 | 80,158 | 66,343 |
Total equity | 860,630 | 763,429 |
Total liabilities and equity | 2,061,104 | 2,011,280 |
Common Class A | ||
William Lyon Homes stockholders’ equity — Note 13 | ||
Common stock | 344 | 290 |
Common Class B | ||
William Lyon Homes stockholders’ equity — Note 13 | ||
Common stock | 48 | 38 |
Subordinated amortizing notes due December 1, 2017 | ||
Notes payable — Note 8: | ||
Long-term debt | 0 | 7,225 |
5 3/4% Senior Notes due 2019 | ||
Notes payable — Note 8: | ||
Long-term debt | 149,362 | 148,826 |
8 1/2% Senior Notes due 2020 | ||
Notes payable — Note 8: | ||
Long-term debt | 422,817 | |
7% Senior Notes due 2022 | ||
Notes payable — Note 8: | ||
Long-term debt | 346,740 | 346,014 |
5 7/8% Senior Notes due January 31, 2025 | ||
Notes payable — Note 8: | ||
Long-term debt | 439,567 | |
Revolving Credit Facility | ||
Notes payable — Note 8: | ||
Notes payable | 0 | 29,000 |
Seller Financing | ||
Notes payable — Note 8: | ||
Notes payable | 589 | 24,692 |
Joint Venture Notes Payable | ||
Notes payable — Note 8: | ||
Notes payable | 93,926 | 102,076 |
Revolving Credit Facility | Revolving Credit Facility | ||
Notes payable — Note 8: | ||
Notes payable | $ 0 | $ 29,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Intangibles, accumulated amortization | $ 4,640 | $ 4,640 |
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common Class A | ||
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 34,267,510 | 28,909,781 |
Common stock, shares outstanding (in shares) | 33,135,650 | 27,907,724 |
Common Class B | ||
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 4,817,394 | 3,813,884 |
Common stock, shares outstanding (in shares) | 4,817,394 | 3,813,884 |
5 3/4% Senior Notes due 2019 | ||
Debt instrument interest rate | 5.75% | 5.75% |
8 1/2% Senior Notes due 2020 | ||
Debt instrument interest rate | 8.50% | 8.50% |
7% Senior Notes due 2022 | ||
Debt instrument interest rate | 7.00% | 7.00% |
5 7/8% Senior Notes due January 31, 2025 | ||
Debt instrument interest rate | 5.875% | 5.875% |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating revenue | |||||||||||
Home sales | $ 1,795,074 | $ 1,402,203 | $ 1,078,928 | ||||||||
Construction services — Note 1 | 1,454 | 3,837 | 25,124 | ||||||||
Operating revenue | $ 623,283 | $ 490,304 | $ 422,633 | $ 258,854 | $ 473,221 | $ 342,628 | $ 325,059 | $ 261,295 | 1,796,528 | 1,406,040 | 1,104,052 |
Operating costs | |||||||||||
Cost of sales — homes | (1,478,549) | (1,162,337) | (878,995) | ||||||||
Construction services — Note 1 | (1,317) | (3,485) | (21,181) | ||||||||
Sales and marketing | (86,226) | (72,509) | (61,539) | ||||||||
General and administrative | (90,206) | (73,398) | (59,161) | ||||||||
Amortization of intangible assets — Note 7 | 0 | 0 | (957) | ||||||||
Other | (2,274) | (343) | (1,972) | ||||||||
Operating costs | (1,658,572) | (1,312,072) | (1,023,805) | ||||||||
Operating income | 137,956 | 93,968 | 80,247 | ||||||||
Equity in income of unconsolidated joint ventures | 3,661 | 5,606 | 3,239 | ||||||||
Other income, net | 895 | 3,243 | 3,581 | ||||||||
Income before extinguishment of debt | 142,512 | 102,817 | 87,067 | ||||||||
Loss on extinguishment of debt | (21,828) | 0 | 0 | ||||||||
Income before provision for income taxes | 120,684 | 102,817 | 87,067 | ||||||||
Provision for income taxes — Note 11 | (62,933) | (34,850) | (26,806) | ||||||||
Net income | 16,736 | 30,060 | 20,251 | (9,296) | 26,426 | 16,514 | 15,086 | 9,941 | 57,751 | 67,967 | 60,261 |
Less: Net income attributable to noncontrolling interests | (9,616) | (8,271) | (2,925) | ||||||||
Net income available to common stockholders | $ 11,763 | $ 27,418 | $ 18,954 | $ (10,000) | $ 23,052 | $ 13,069 | $ 14,561 | $ 9,014 | $ 48,135 | $ 59,696 | $ 57,336 |
Income per common share: | |||||||||||
Basic (in USD per share) | $ 0.32 | $ 0.74 | $ 0.51 | $ (0.27) | $ 0.63 | $ 0.36 | $ 0.40 | $ 0.25 | $ 1.30 | $ 1.62 | $ 1.57 |
Diluted (in USD per share) | $ 0.30 | $ 0.71 | $ 0.49 | $ (0.27) | $ 0.60 | $ 0.34 | $ 0.38 | $ 0.24 | $ 1.24 | $ 1.55 | $ 1.48 |
Weighted average common shares outstanding: | |||||||||||
Basic (in shares) | 37,040,137 | 36,764,799 | 36,546,227 | ||||||||
Diluted (in shares) | 38,663,667 | 38,474,900 | 38,767,556 |
Consolidated Statements Of Equi
Consolidated Statements Of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Non-Controlling Interest | Common Class B | Common Class BCommon Stock | Common Class BAdditional Paid-In Capital |
Balance, beginning (in shares) at Dec. 31, 2014 | 31,887,000 | |||||||
Balance, beginning at Dec. 31, 2014 | $ 597,146 | $ 319 | $ 408,969 | $ 160,627 | $ 27,231 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 60,261 | 57,336 | 2,925 | |||||
Cash contributions from members of consolidated entities | 19,850 | 19,850 | ||||||
Cash distributions to members of consolidated entities | $ (10,632) | (10,632) | ||||||
Exercise of stock options (in shares) | 47,925 | 48,000 | ||||||
Exercise of stock options | $ 106 | 106 | ||||||
Shares remitted to Company to satisfy employee personal income tax liabilities resulting from share based compensation plans (in shares) | (88,000) | |||||||
Shares remitted to Company to satisfy employee personal income tax liabilities resulting from share based compensation plans | (1,832) | $ (1) | (1,831) | |||||
Stock based compensation (in shares) | 331,000 | |||||||
Stock based compensation | 6,570 | $ 4 | 6,566 | |||||
Balance, ending (in shares) at Dec. 31, 2015 | 32,178,000 | |||||||
Balance, ending at Dec. 31, 2015 | 671,469 | $ 322 | 413,810 | 217,963 | 39,374 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 67,967 | 59,696 | 8,271 | |||||
Cash contributions from members of consolidated entities | 38,334 | 38,334 | ||||||
Cash distributions to members of consolidated entities | $ (19,636) | (19,636) | ||||||
Exercise of stock options (in shares) | 15,000 | |||||||
Shares remitted to Company to satisfy employee personal income tax liabilities resulting from share based compensation plans (in shares) | (82,000) | |||||||
Shares remitted to Company to satisfy employee personal income tax liabilities resulting from share based compensation plans | $ (942) | $ (1) | (941) | |||||
Stock based compensation (in shares) | 628,000 | |||||||
Stock based compensation | 6,419 | $ 7 | 6,412 | |||||
Reversal of excess income tax benefit from stock based awards | (182) | (182) | ||||||
Balance, ending (in shares) at Dec. 31, 2016 | 32,724,000 | |||||||
Balance, ending at Dec. 31, 2016 | 763,429 | $ 328 | 419,099 | 277,659 | 66,343 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 57,751 | 48,135 | 9,616 | |||||
Cash contributions from members of consolidated entities | 66,712 | 66,712 | ||||||
Cash distributions to members of consolidated entities | $ (62,513) | (62,513) | ||||||
Exercise of stock options (in shares) | 3,535 | |||||||
Shares remitted to Company to satisfy employee personal income tax liabilities resulting from share based compensation plans (in shares) | (79,000) | |||||||
Shares remitted to Company to satisfy employee personal income tax liabilities resulting from share based compensation plans | $ (1,544) | $ (1) | (1,543) | |||||
Stock based compensation (in shares) | 461,000 | |||||||
Stock based compensation | $ 10,062 | $ 5 | 10,057 | |||||
Repurchases of common stock (in shares) | (138,227) | (138,000) | ||||||
Repurchases of common stock | $ (3,112) | $ (1) | (3,111) | |||||
Issuance of stock (in shares) | 5,113,000 | 1,004,000 | ||||||
Issuance of stock | (63) | $ 51 | (114) | $ 29,908 | $ 10 | $ 29,898 | ||
Balance, ending (in shares) at Dec. 31, 2017 | 39,085,000 | |||||||
Balance, ending at Dec. 31, 2017 | $ 860,630 | $ 392 | $ 454,286 | $ 325,794 | $ 80,158 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities: | |||
Net income | $ 57,751 | $ 67,967 | $ 60,261 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 1,962 | 2,006 | 2,663 |
Stock based compensation expense | 10,062 | 6,419 | 6,570 |
Equity in income of unconsolidated joint ventures | (3,661) | (5,606) | (3,239) |
Distributions from unconsolidated joint ventures | 3,085 | 3,725 | 1,075 |
Net change in deferred income taxes | 27,836 | 3,975 | 8,313 |
Loss on extinguishment of debt | 21,828 | 0 | 0 |
Net changes in operating assets and liabilities: | |||
Restricted cash | 0 | 504 | 0 |
Receivables | (694) | (876) | 6,663 |
Escrow proceeds receivable | (3,234) | 2,956 | (126) |
Real estate inventories — owned | 52,913 | (69,598) | (264,868) |
Other assets, net | (2,158) | 2,367 | 758 |
Accounts payable | (15,483) | (1,599) | 24,067 |
Accrued expenses | 17,247 | 9,466 | (15,045) |
Net cash provided by (used in) operating activities | 167,454 | 21,706 | (172,908) |
Investing activities: | |||
Investment in and advances to unconsolidated joint ventures | 0 | 0 | (1,000) |
Proceeds from repayment of notes receivable | 0 | 6,188 | 0 |
Purchases of property and equipment | (4,300) | (1,029) | (4,800) |
Net cash (used in) provided by investing activities | (4,300) | 5,159 | (5,800) |
Financing activities: | |||
Proceeds from borrowings on notes payable | 134,061 | 139,783 | 119,663 |
Principal payments on notes payable | (142,211) | (147,887) | (58,217) |
Proceeds from borrowings on revolver | 346,121 | 258,000 | 229,000 |
Payments on revolver | (375,121) | (294,000) | (164,000) |
Principal payments on subordinated amortizing notes | (7,225) | (6,841) | (6,651) |
Proceeds from stock options exercised | 0 | 0 | 106 |
Proceeds from issuance of Class B Shares | 29,908 | 0 | 0 |
Costs related to settlement of TEUs | (63) | 0 | 0 |
Shares remitted to, or withheld by the Company for employee tax withholding | (1,544) | (942) | (1,832) |
Payments to repurchase common stock | (3,112) | 0 | 0 |
Excess income tax benefit from stock based awards | 0 | (182) | 0 |
Payment of deferred loan costs | (9,892) | (1,085) | (2,147) |
Cash contributions from members of consolidated entities | 66,712 | 38,334 | 19,850 |
Cash distributions to members of consolidated entities | (62,513) | (19,636) | (10,632) |
Net cash (used in) provided by financing activities | (23,056) | (34,456) | 176,140 |
Net increase (decrease) in cash and cash equivalents | 140,098 | (7,591) | (2,568) |
Cash and cash equivalents — beginning of period | 42,612 | 50,203 | 52,771 |
Cash and cash equivalents — end of period | 182,710 | 42,612 | 50,203 |
Supplemental disclosures: | |||
Cash paid for taxes | 35,761 | 16,540 | 24,955 |
Supplemental disclosures of non-cash investing and financing activities: | |||
Right-of-use assets obtained in exchange for new operating lease liabilities | 5,925 | 1,353 | 3,600 |
Notes payable issued in conjunction with land acquisitions | 0 | 24,692 | 0 |
7% Senior Notes due 2022 | |||
Financing activities: | |||
Proceeds from issuance of Senior Notes | 0 | 0 | 51,000 |
8 1/2% Senior Notes due 2020 | |||
Financing activities: | |||
Redemption Premium | (19,645) | 0 | 0 |
Principal payments of Senior Notes | (425,000) | 0 | 0 |
5 7/8% Senior Notes due January 31, 2025 | |||
Financing activities: | |||
Proceeds from issuance of Senior Notes | $ 446,468 | $ 0 | $ 0 |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows (Parenthetical) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
5 7/8% Senior Notes due January 31, 2025 | |||
Debt instrument interest rate | 5.875% | 5.875% | 5.875% |
7% Senior Notes due 2022 | |||
Debt instrument interest rate | 7.00% | 7.00% | 7.00% |
8 1/2% Senior Notes due 2020 | |||
Debt instrument interest rate | 8.50% | 8.50% | 8.50% |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Operations William Lyon Homes, a Delaware corporation (“Parent” and together with its subsidiaries, the “Company”), are primarily engaged in designing, constructing and selling single family detached and attached homes in California, Arizona, Nevada, Colorado (currently, under the Village Homes brand), Washington and Oregon (together, currently under the Polygon Northwest Homes brand). Basis of Presentation The preparation of the Company’s financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of the assets and liabilities as of December 31, 2017 and 2016 and revenues and expenses for the years ended December 31, 2017 , 2016 , and 2015 . Accordingly, actual results could differ from those estimates. The significant accounting policies using estimates include real estate inventories and cost of sales, impairment of real estate inventories, warranty reserves, loss contingencies, accounting for variable interest entities, valuation of deferred tax assets, and the fair value of assets acquired and liabilities assumed in connection with acquisition accounting. The consolidated financial statements include the accounts of the Company and all majority-owned and controlled subsidiaries and joint ventures, and certain joint ventures and other entities which have been determined to be variable interest entities in which the Company is considered the primary beneficiary (see Note 2). The accounting policies of the joint ventures are substantially the same as those of the Company. All significant intercompany accounts and transactions have been eliminated in consolidation. Real Estate Inventories Real estate inventories are carried at cost net of impairment losses, if any. Real estate inventories consist primarily of land deposits, land and land under development, homes completed and under construction, and model homes. All direct and indirect land costs, offsite and onsite improvements and applicable interest and other carrying charges are capitalized to real estate projects during periods when the project is under development. Land, offsite costs and all other common costs are allocated to land parcels benefited based upon relative fair values before construction. Onsite construction costs and related carrying charges (principally interest and property taxes) are allocated to the individual homes within a phase based upon the relative sales value of the homes. The Company relieves its accumulated real estate inventories through cost of sales for the estimated cost of homes sold. Selling expenses and other marketing costs are expensed in the period incurred. From time to time the Company sells land to third parties. The Company does not consider these sales to be core to its homebuilding business, and any gain or loss recognized on these transactions is recorded in other non-operating income. For the years ended December 31, 2017 , 2016 and 2015 , the Company had four , five , and one land parcel sales, respectively, that resulted in a $0.8 million gain, $3.6 million gain and $0.8 million gain, respectively. The Company accounts for its real estate inventories under FASB ASC 360 Property, Plant, & Equipment (“ASC 360”). ASC 360 requires impairment losses to be recorded on real estate inventories when indicators of impairment are present and the undiscounted cash flows estimated to be generated by real estate inventories are less than the carrying amount of such assets. Indicators of impairment include a decrease in demand for housing due to softening market conditions, competitive pricing pressures, which reduce the average sales price of homes including an increase in sales incentives offered to buyers, slowing sales absorption rates (calculated as net new home orders divided by average sales locations for a given period), decreases in home values in the markets in which the Company operates, significant decreases in gross margins and a decrease in project cash flows for a particular project. For land, construction in progress and completed inventory, including model homes, the Company estimates expected cash flows at the project level by maintaining current budgets using recent historical information and current market assumptions. The Company updates project budgets and cash flows of each real estate project on an as needed basis to determine whether the estimated remaining undiscounted future cash flows of the project are more or less than the carrying amount (net book value) of the asset. If the undiscounted cash flows are more than the net book value of the project, then there is no impairment. If the undiscounted cash flows are less than the net book value of the asset, then the asset is deemed to be impaired and is written-down to its fair value. Fair value represents the amount at which an asset could be bought or sold in a current transaction between willing parties (i.e., other than a forced or liquidation sale). Management determines the estimated fair value of each project by determining the present value of estimated future cash flows at discount rates that are commensurate with the risk of each project and each domain, market or sub-market or may use recent appraisals if they more accurately reflect fair value. The estimation process involved in determining if assets have been impaired and in the determination of fair value is inherently uncertain because it requires estimates of future revenues and costs, as well as future events and conditions. Estimates of revenues and costs are supported by the Company’s budgeting process, and are based on recent sales in backlog, pricing required to get the desired pace of sales, pricing of competitive projects, incentives offered by competitors and current estimates of costs of development and construction or current appraisals. The assumptions and judgments used by the Company in the estimation process to determine the future undiscounted cash flows of a project and its fair value are inherently uncertain and require a substantial degree of judgment. The realization of the Company’s real estate inventories is dependent upon future uncertain events and market conditions. Due to the subjective nature of the estimates and assumptions used in determining the future cash flows of a project, actual results could differ materially from current estimates. Management assesses land deposits for impairment when estimated land values are deemed to be less than the agreed upon contract price. The Company considers changes in market conditions, the timing of land purchases, the ability to renegotiate with land sellers, the terms of the land option contracts in question, the availability and best use of capital, and other factors. The Company records abandoned land deposits and related pre-acquisition costs in cost of sales-lots, land and other in the consolidated statements of operations in the period that it is abandoned. A provision for warranty costs relating to the Company’s limited warranty plans is included in cost of sales and accrued expenses at the time the sale of a home is recorded. The Company generally reserves a percent of the sales price of its homes, or a set amount per home closed depending on operating segment, against the possibility of future charges relating to its warranty programs and similar potential claims. Factors that affect the Company’s warranty liability include the number of homes under warranty, historical and anticipated rates of warranty claims, and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary. Changes in the Company’s warranty liability for the years ended December 31, 2017 , 2016 , and 2015 are as follows (in thousands): Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Warranty liability, beginning of period $ 14,173 $ 18,117 $ 18,155 Warranty provision during period 9,822 8,237 7,423 Warranty payments, net of insurance recoveries during period (10,497 ) (12,334 ) (8,555 ) Warranty charges related to construction services projects 145 153 1,094 Warranty liability, end of period $ 13,643 $ 14,173 $ 18,117 Interest incurred under the Company’s debt obligations, as more fully discussed in Note 8, is capitalized to qualifying real estate projects under development. Any additional interest charges related to real estate projects not under development are expensed in the period incurred. Interest activity for the years ended December 31, 2017 , 2016 , and 2015 are as follows (in thousands): Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Interest incurred $ 73,729 $ 83,218 $ 76,221 Less: Interest capitalized (73,729 ) (83,218 ) (76,221 ) Interest expense, net of amounts capitalized $ — $ — $ — Cash paid for interest $ 62,679 $ 79,734 $ 72,254 Construction Services The Company accounts for construction management agreements using the Percentage of Completion Method in accordance with FASB ASC Topic 605 Revenue Recognition (“ASC 605”). Under ASC 605, the Company records revenues and expenses as a contracted project progresses, and based on the percentage of costs incurred to date compared to the total estimated costs of the contract. The Company entered into construction management agreements to build, sell and market homes in certain communities. For such services, the Company will receive fees (generally 3 to 5 percent of the sales price, as defined) and may, under certain circumstances, receive additional compensation if certain financial thresholds are achieved. For the year ended December 31, 2017 , the Company recorded nominal compensation from such agreements. For the years ended December 31, 2016 and 2015 , the Company recorded additional compensation of $0.2 million and $1.9 million , respectively. Financial Instruments Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash investments, receivables, escrow proceeds receivable, our indebtedness, and deposits. The Company typically places its cash investments in investment grade short-term instruments. Deposits, included in other assets, are due from municipalities or utility companies and are generally collected from such entities through fees assessed to other developers. The Company is an issuer of, or subject to, financial instruments with off-balance sheet risk in the normal course of business which exposes it to credit risks. These financial instruments include letters of credit and obligations in connection with assessment district bonds. These off-balance sheet financial instruments are described in more detail in Note 15. Cash and Cash Equivalents Short-term investments with a maturity of three months or less when purchased are considered cash equivalents. The Company’s cash and cash equivalents balance exceeds federally insurable limits as of December 31, 2017 and 2016 . The Company monitors the cash balances in its operating accounts; however, these cash balances could be negatively impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. To date, the Company has experienced no loss or lack of access to cash in its operating accounts. Goodwill In accordance with the provisions of ASC 350, Intangibles, Goodwill and Other , goodwill is tested for impairment on an annual basis, or more frequently if events or circumstances indicate that goodwill may be impaired. The impairment test is performed at the reporting unit level, and an impairment loss is recognized to the extent that the carrying amount of goodwill exceeds the fair value. The Company has determined that we have six reporting segments, as discussed in Note 4, and will perform an annual goodwill impairment analysis during the fourth quarter of each fiscal year. Intangible Assets Recorded intangible assets primarily relate to brand names of acquired entities, construction management contracts, homes in backlog, and joint venture management fee contracts recorded in conjunction with FASB ASC Topic 805, Business Combinations ("ASC 805"). All intangible assets with the exception of those relating to brand names were valued based on expected cash flows related to home closings, and the asset is amortized on a per unit basis, as homes under the contracts close. Our brand name intangible assets are deemed to have an indefinite useful life. Income per common share The Company computes income per common share in accordance with FASB ASC Topic 260, Earnings per Share , which requires income per common share for each class of stock to be calculated using the two-class method. The two-class method is an allocation of income between the holders of common stock and a company’s participating security holders. Basic income per common share is computed by dividing income or loss available to common stockholders by the weighted average number of shares of common stock outstanding. For purposes of determining diluted income per common share, basic income per common share is further adjusted to include the effect of potential dilutive common shares outstanding. Income Taxes Income taxes are accounted for under the provisions of Financial Accounting Standards Board ASC 740 , Income Taxes, using an asset and liability approach. Deferred income taxes reflect the net effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and operating loss and tax credit carryforwards measured by applying currently enacted tax laws. A valuation allowance would be provided to reduce net deferred tax assets if it were determined that it is more likely than not to be realized. ASC 740 prescribes a recognition threshold and a measurement criterion for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be considered “more-likely-than-not” to be sustained upon examination by taxing authorities. In addition, the Company has elected to recognize interest and penalties related to uncertain tax positions in the income tax provision. Comprehensive Income or Loss The Company had no other transactions or activity, other than net income or loss, that would be considered as part of comprehensive income or loss. Impact of Recent Accounting Pronouncements Effective January 1, 2017, the Company adopted Accounting Standards Update ("ASU") No. 2016-09, “ Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ” (“ASU 2016-09”), which simplified several aspects for the accounting for share-based payment transactions, including the income tax consequences and classification on the statement of cash flows. The Company did not have any previously unrecognized excess tax benefits. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements or notes to its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, " Revenue from Contracts with Customers (“ASU 2014-09”), which clarifies existing accounting literature relating to how and when revenue is recognized by an entity. ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets and supersedes the revenue recognition requirements in Topic 605, Revenue Recognition , and most industry-specific guidance. ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts . The Company has evaluated the impact of adopting the new standard and determined that there will not be a significant impact to its current revenue recognition patterns. The adoption of ASU 2014-09 will primarily have an impact on our accounting policies related to the Company's accounting for certain capitalized marketing costs currently recorded in Real estate inventories. With the adoption of ASU 2014-09, the Company will no longer record certain costs related to model homes and sales offices within Real estate inventories, and will instead record them as property plant and equipment. The amortization of these costs will be the same under ASU 2014-09 as under current generally accepted accounting principles, resulting in no adjustment to the the Company's retained earnings upon adoption. ASU 2014-09 is effective for public companies for interim and annual reporting periods beginning after December 15, 2017. The Company has adopted the guidance effective January 1, 2018 using a cumulative effect transition method. As a result of the Company's analysis, it will not record an adjustment to retained earnings on January 1, 2018. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). ASU 2016-15 provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. ASU 2016-15 is effective for annual and interim periods in fiscal years beginning after December 15, 2017. Early adoption is permitted. The Company does not anticipate that the adoption of ASU 2016-15 will have a material impact on its consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force)" (“ASU 2016-18”). ASU 2016-18 requires restricted cash to be included with cash and cash equivalents when reconciling the beginning and ending amounts on the statement of cash flows. ASU 2016-18 is effective for annual and interim periods in fiscal years beginning after December 15, 2017. Early adoption is permitted. The Company does not anticipate that the adoption of ASU 2016-18 will have a material impact on its consolidated financial statements. Change in Accounting Principle During the second quarter ended June 30, 2017, the Company adopted the provisions of Accounting Standards Update ("ASU") No. 2016-02, " Leases (Topic 842) " ("ASU 2016-02"), which amends the existing standards for lease accounting, requiring lessees to recognize most leases on their balance sheets and disclose key information about leasing arrangements. The new standard establishes a right-of-use ("ROU") model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. Effective April 1, 2017, the Company adopted the new standard with a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The adoption is accounted for as a change in accounting principle in conformity with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 250, “ Accounting Changes and Error Corrections ”. As a result of the adoption, the most significant changes related to (1) the recognition of new ROU assets and lease liabilities on the balance sheet for office, real estate and equipment operating leases; and (2) the derecognition of previous assets and liabilities for a sale-leaseback transaction that did not qualify for sale accounting under the previous standards. The Company elected all of the standard's available practical expedients on adoption, including the package of practical expedients and use of hindsight expedient. Consequently, the Company: – Recognized lease related liabilities within Accrued expenses of $15.6 million as of June 30, 2017, with corresponding ROU assets of the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. The balance sheet as of December 31, 2016 was adjusted using the modified retrospective transition approach which resulted in the following adjusted balances (in thousands): December 31, Lease adoption adjustments December 31, (as adjusted) Lease right-of-use assets — $ 13,129 $ 13,129 Total assets 1,998,151 13,129 2,011,280 Accrued expenses 79,790 13,129 92,919 Total liabilities and equity 1,998,151 13,129 2,011,280 The Company's existing material leases were all considered operating leases under the new leasing standard and as a result, no adjustment to previously reported lease expense was incurred for prior periods presented. – Derecognized obligations of $19.8 million relating to cash received from a sale-leaseback transaction that was previously classified within Accrued expenses, which occurred in the first quarter of 2017. Refer to Note 15 for more details regarding leases as of December 31, 2017 and its comparative period. Reclassifications Certain balances on the financial statements and certain amounts presented in the notes have been reclassified in order to conform to current year presentation. |
Variable Interest Entities and
Variable Interest Entities and Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2017 | |
Noncontrolling Interest [Abstract] | |
Variable Interest Entities and Noncontrolling Interests | Variable Interest Entities and Noncontrolling Interests The Company accounts for variable interest entities in accordance with ASC 810, Consolidation (“ASC 810”). Under ASC 810, a variable interest entity (“VIE”) is created when: (a) the equity investment at risk in the entity is not sufficient to permit the entity to finance its activities without additional subordinated financial support provided by other parties, including the equity holders; (b) the entity’s equity holders as a group either (i) lack the direct or indirect ability to make decisions about the entity, (ii) are not obligated to absorb expected losses of the entity or (iii) do not have the right to receive expected residual returns of the entity; or (c) the entity’s equity holders have voting rights that are not proportionate to their economic interests, and the activities of the entity involve or are conducted on behalf of the equity holder with disproportionately few voting rights. If an entity is deemed to be a VIE pursuant to ASC 810, the enterprise that has both (i) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (ii) the obligation to absorb the expected losses of the entity or right to receive benefits from the entity that could be potentially significant to the VIE is considered the primary beneficiary and must consolidate the VIE. In accordance with ASC 810, we perform ongoing reassessments of whether an enterprise is the primary beneficiary of a VIE. Joint Ventures As of December 31, 2017 and 2016 , the Company had thirteen and eleven joint ventures, respectively, which were deemed to be VIEs under ASC 810 for which the Company is considered the primary beneficiary. The Company manages the joint ventures, by using its sales, development and operations teams and has significant control over these projects and therefore the power to direct the activities that most significantly impact the joint venture’s performance, in addition to being obligated to absorb expected losses or receive benefits from the joint venture, and therefore the Company is deemed to be the primary beneficiary of these VIEs. These joint ventures are each engaged in homebuilding and land development activities. Certain of these joint ventures have not obtained construction financing from outside lenders, but are financing their activities through equity contributions from each of the joint venture partners. The Company has no rights and limited obligations with respect to the liabilities of the VIEs, and none of the Company’s assets serve as collateral for the creditors of these VIEs. The assets of the joint ventures are the sole collateral for the liabilities of the joint ventures and as such, the creditors and equity investors of these joint ventures have no recourse to assets of the Company held outside of these joint ventures. The liabilities of each VIE are restricted to the assets of each VIE. Additionally, the creditors of the Company have no access to the assets of the VIEs. Income allocations and cash distributions to the Company are based on predetermined formulas between the Company and their joint venture partners as specified in the applicable partnership or operating agreements. The Company generally receives, after partners’ priority returns and return of partners’ capital, approximately 50% of the profits and cash flows from the joint ventures. As of December 31, 2017 , the assets of the consolidated VIEs totaled $219.6 million , of which $10.7 million was cash and $230.8 million was real estate inventories. The liabilities of the consolidated VIEs totaled $99.4 million , primarily comprised of notes payable, accounts payable and accrued liabilities. As of December 31, 2016 , the assets of the consolidated VIEs totaled $204.8 million , of which $5.8 million was cash and $200.7 million was real estate inventories. The liabilities of the consolidated VIEs totaled $107.3 million , primarily comprised of notes payable, accounts payable and accrued liabilities. |
Investments in Unconsolidated J
Investments in Unconsolidated Joint Ventures | 12 Months Ended |
Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Joint Ventures | Investments in Unconsolidated Joint Ventures The table set forth below has been derived from the summarized financial information of our unconsolidated mortgage joint ventures and summarizes their combined statements of operations that we accounted for under the equity method (in thousands): Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Revenues $ 20,003 $ 21,156 $ 12,314 Cost of sales (11,913 ) (10,407 ) (5,842 ) Income of unconsolidated joint ventures $ 8,090 $ 10,749 $ 6,472 Income from unconsolidated joint ventures reflected in the accompanying consolidated statements of operations represents our share of the income of our unconsolidated mortgage joint ventures, which is allocated based on the provisions of the underlying joint venture operating agreements less any additional impairments recorded against our investments in joint ventures which we do not deem recoverable. For the years ended December 31, 2017 , 2016 and 2015 , the Company recorded income of $ 3.7 million , $ 5.6 million and $3.2 million , respectively, from its unconsolidated joint ventures. This income was primarily attributable to our share of income related to mortgages that were generated and issued to qualifying home buyers during the periods. During the years ended December 31, 2017 , 2016 , and 2015 , all of our unconsolidated joint ventures were reviewed for impairment. Based on the impairment review, no investments in joint ventures were determined to be impaired. The table set forth below has been derived from the summarized financial information of our unconsolidated mortgage joint ventures and summarizes their combined balance sheets that we accounted for under the equity method (in thousands): December 31, 2017 2016 Assets Cash $ 12,802 $ 10,208 Loans held for sale 17,106 18,791 Accounts receivable 2,791 764 Other assets 128 56 Total Assets $ 32,827 $ 29,819 Liabilities and Equity Accounts payable $ 779 $ 694 Accrued expenses 1,532 1,026 Credit lines payable 18,312 17,748 Other liabilities 31 17 Members equity 12,173 10,334 Total Liabilities and Equity $ 32,827 $ 29,819 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company operates one principal homebuilding business. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-maker in deciding how to allocate resources and in assessing performance. The Company’s President and Chief Executive Officer has been identified as the chief operating decision maker. The Company’s chief operating decision maker directs the allocation of resources to operating segments based on the profitability and cash flows of each respective segment. The Company’s homebuilding operations design, construct and sell a wide range of homes designed to meet the specific needs in each of its markets. As such, in accordance with the aggregation criteria defined by FASB ASC Topic 280, Segment Reporting (“ASC 280”), the Company’s homebuilding operating segments have been grouped into six reportable segments: California , consisting of operating divisions in i ) Southern California, consisting of operations in Orange, Los Angeles, Riverside and San Bernardino counties; ii ) Northern California, consisting of operations in Alameda, Contra Costa, San Joaquin, and Santa Clara counties. Arizona , consisting of operations in the Phoenix, Arizona metropolitan area. Nevada , consisting of operations in the Las Vegas, Nevada metropolitan area. Colorado , consisting of operations in the Denver, Colorado metropolitan area. Washington , consisting of operations in the Seattle, Washington metropolitan area. Oregon , consisting of operations in the Portland, Oregon metropolitan area. Corporate develops and implements strategic initiatives and supports the Company’s operating segments by centralizing key administrative functions such as finance and treasury, information technology, risk management and litigation and human resources. Segment financial information relating to the Company’s operations was as follows (in thousands): Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Operating revenue: California (1) $ 682,896 $ 494,189 $ 401,934 Arizona 158,534 125,951 69,510 Nevada 176,354 191,711 130,845 Colorado 124,456 128,530 107,014 Washington 333,667 154,600 181,258 Oregon 320,621 311,059 213,491 Total operating revenue $ 1,796,528 $ 1,406,040 $ 1,104,052 (1) Operating revenue in the California segment includes construction services revenue. Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Income before provision from income taxes: California $ 88,422 $ 47,692 $ 46,752 Arizona 14,832 12,004 5,743 Nevada 15,672 19,182 13,022 Colorado 7,156 6,978 3,291 Washington 30,008 9,528 18,652 Oregon 35,862 41,617 24,787 Corporate (49,440 ) (34,184 ) (25,180 ) Income before extinguishment of debt $ 142,512 $ 102,817 $ 87,067 Corporate - Loss on extinguishment of debt (21,828 ) — — Income before provision for income taxes $ 120,684 $ 102,817 $ 87,067 December 31, December 31, 2017 2016 Total assets: California $ 631,649 $ 716,955 Arizona 170,634 191,581 Nevada 211,202 189,248 Colorado 149,183 124,580 Washington 286,442 343,973 Oregon 288,981 238,766 Corporate (1) 323,013 206,177 Total assets $ 2,061,104 $ 2,011,280 (1) Comprised primarily of cash and cash equivalents, receivables, deferred income taxes, and other assets. |
Real Estate Inventories
Real Estate Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Real Estate Inventories | Real Estate Inventories Real estate inventories consist of the following (in thousands): December 31, 2017 2016 Real estate inventories: Land deposits $ 51,833 $ 50,429 Land and land under development 904,410 1,069,001 Homes completed and under construction 646,198 545,310 Model homes 97,409 107,258 Total $ 1,699,850 $ 1,771,998 The Company accounts for its real estate inventories under ASC 360, which requires impairment losses to be recorded on real estate inventories when indicators of impairment are present and the undiscounted cash flows estimated to be generated by real estate inventories are less than the carrying amount of such assets. During the years ended December 31, 2017 , 2016 , and 2015 , the Company did not record any impairments to the value of its real estate inventories. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill As of December 31, 2017 and 2016 , the Company had Goodwill of $66.9 million . Goodwill by operating segment as of December 31, 2017 and 2016 is as follows (in thousands): December 31, 2017 2016 California $ 6,801 $ 6,801 Arizona 5,951 5,951 Nevada 1,457 1,457 Colorado — — Washington 31,200 31,200 Oregon 21,493 21,493 Total $ 66,902 $ 66,902 |
Intangibles
Intangibles | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangibles | Intangibles The carrying value and accumulated amortization of intangible assets at December 31, 2017 and December 31, 2016 , by major intangible asset category, is as follows (in thousands): December 31, 2017 December 31, 2016 Carrying Value Accumulated Amortization Net Carrying Amount Carrying Value Accumulated Amortization Net Carrying Amount Brand Name - Polygon Northwest Homes $ 6,700 $ — $ 6,700 $ 6,700 $ — $ 6,700 The Company evaluates indefinite lived intangible assets at least annually, or more frequently if events or circumstances exist that may indicate that the asset is impaired or that its life is finite. As of December 31, 2017 and December 31, 2016 , the Company has fully amortized the value of all of the intangible assets it held with finite lives. |
Senior Notes, Secured, and Subo
Senior Notes, Secured, and Subordinated Indebtedness | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Senior Notes, Secured, and Subordinated Indebtedness | Senior Notes, Secured, and Subordinated Indebtedness The Company's senior notes, secured, and subordinated indebtedness consists of the following (in thousands): December 31, 2017 2016 Notes payable: Revolving credit facility $ — $ 29,000 Seller financing 589 24,692 Joint venture notes payable 93,926 102,076 Total notes payable $ 94,515 $ 155,768 Subordinated amortizing notes — 7,225 Senior notes 5 3 / 4 % Senior Notes due April 15, 2019 $ 149,362 $ 148,826 8 1 / 2 % Senior Notes due November 15, 2020 — 422,817 7% Senior Notes due August 15, 2022 346,740 346,014 5 7 / 8 % Senior Notes due January 31, 2025 439,567 — Total Debt $ 1,030,184 $ 1,080,650 The maturities of the Company's Notes payable, 5 3 / 4 % Senior Notes, 7% Senior Notes, and 5 7 / 8 % Senior Notes are as follows as of December 31, 2017 (in thousands): Year Ended December 31, 2018 $ 32,213 2019 178,866 2020 — 2021 33,436 2022 350,000 Thereafter 450,000 $ 1,044,515 Maturities above exclude premium on the 7% Senior Notes of $0.7 million , discount on the 5 7 / 8 % Senior Notes of $3.2 million , and deferred loan costs on the 5 3 / 4 %, 7%, and 5 7 / 8 % Senior Notes in aggregate of $11.8 million as of December 31, 2017 . Notes Payable Revolving Credit Facility On July 1, 2016 , California Lyon and Parent entered into an amendment and restatement agreement pursuant to which its existing credit agreement providing for a revolving credit facility, as previously amended and restated on March 27, 2015 as described below, was further amended and restated in its entirety (the "Second Amended Facility"). The Second Amended Facility amends and restates the Company’s previous $130.0 million revolving credit facility and provides for total lending commitments of $145.0 million . In addition, the Second Amended Facility has an uncommitted accordion feature under which the Company may increase the total principal amount up to a maximum aggregate of $200.0 million under certain circumstances, as well as a sublimit of $50.0 million for letters of credit. Effective as of November 28, 2017, California Lyon increased the size of the commitment under its revolving credit facility by $25.0 million to an aggregate total of $170.0 million , through exercise of the facility’s accordion feature and entry into a new lender supplement as of such date. The Second Amended Facility, among other things, also amended the maturity date of the previous facility to July 1, 2019 , provided that the Second Amended Facility will terminate on January 14, 2019 (the “Springing Termination Date”) if, on the Springing Termination Date, the aggregate outstanding principal amount of California Lyon’s 5.75% senior notes due 2019 is equal to or greater than the sum of (a) 50% of the Consolidated EBITDA (as defined in the Second Amended Facility) of California Lyon, Parent, certain of the Parent’s direct and indirect wholly owned subsidiaries (together with California Lyon and Parent, the “Loan Parties”) and their Restricted Subsidiaries (as defined in the Second Amended Facility) for the four-quarter period ending September 30, 2018 , plus (b) the Liquidity (as defined in the Second Amended Facility) of the Loan Parties and their consolidated subsidiaries on the Springing Termination Date. Further, the Second Amended Facility amended the maximum leverage ratio covenant to extend the timing of the gradual step-downs. Specifically, pursuant to the Second Amended Facility, the maximum leverage ratio remained at 65% from June 30, 2016 through and including December 30, 2016, decreased to 62.5% on the last day of the 2016 fiscal year, remained at 62.5% from December 31, 2016 through and including June 29, 2017, and was scheduled to further decrease to 60% on the last day of the second quarter of 2017 and to remain at 60% thereafter. The Second Amended Facility did not revise any of our other financial covenants thereunder. On June 16, 2017, California Lyon, Parent and the lenders party thereto entered into an amendment to the Second Amended Facility, which amended the maximum leverage ratio to further extend the timing of the gradual step-downs, such that the leverage ratio remained at 62.5% through and including December 30, 2017, and decreased to 60% on the last day of the 2017 fiscal year and will remain at 60% thereafter. The amendment did not revise any of our other financial covenants thereunder. The Second Amended Facility contains certain financial maintenance covenants, including (a) a minimum tangible net worth requirement of $451.0 million (which is subject to increase over time based on subsequent earnings and proceeds from equity offerings, as well as deferred tax assets to the extent included on the Company's financial statements), (b) a maximum leverage covenant that prohibits the leverage ratio (as defined therein) from exceeding 65% , which maximum leverage ratio decreased to 62.5% effective as of December 31, 2016, and further decreased to 60% effective as of December 31, 2017 , and (c) a covenant requiring us to maintain either (i) an interest coverage ratio (EBITDA to interest incurred, as defined therein) of at least 1.50 to 1.00 or (ii) liquidity (as defined therein) of an amount not less than the greater of our consolidated interest incurred during the trailing 12 months and $50.0 million . Our compliance with these financial covenants is measured by calculations and metrics that are specifically defined or described by the terms of the Second Amended Facility and can differ in certain respects from comparable GAAP or other commonly used terms. The Second Amended Facility contains customary events of default, subject to cure periods in certain circumstances, including: nonpayment of principal, interest and fees or other amounts; violation of covenants; inaccuracy of representations and warranties; cross default to certain other indebtedness; unpaid judgments; and certain bankruptcy and other insolvency events. The occurrence of any event of default could result in the termination of the commitments under the Second Amended Facility and permit the lenders to accelerate payment on outstanding borrowings under the Second Amended Facility and require cash collateralization of outstanding letters of credit. If a change in control (as defined in the Second Amended Facility) occurs, the lenders may terminate the commitments under the Second Amended Facility and require that the Company repay outstanding borrowings under the Second Amended Facility and cash collateralize outstanding letters of credit. Interest rates on borrowings generally will be based on either LIBOR or a base rate, plus the applicable spread. In January 2017, the Company entered into an amendment which modifies the definition of Tangible Net Worth for purposes of calculating the Leverage Ratio covenant under the Second Amended Facility, so as to exclude any reduction in Tangible Net Worth (as defined therein) that occurs as a result of the costs related to payment of any call premium or any other costs associated with the refinancing transaction and the redemption of outstanding 8.5% Notes. The Company was in compliance with all covenants under the Second Amended Facility as of December 31, 2017 . Borrowings under the Second Amended Facility, the availability of which is subject to a borrowing base formula, are required to be guaranteed by the Parent and certain of the Parent's wholly-owned subsidiaries, are secured by a pledge of all equity interests held by such guarantors, and may be used for general corporate purposes. Interest rates on borrowings generally will be based on either LIBOR or a base rate, plus the applicable spread. As of December 31, 2017 , the commitment fee on the unused portion of the Second Facility accrues at an annual rate of 0.50% . As of December 31, 2017 , the Company had a letter of credit for $7.8 million but no outstanding balance against the Second Amended Facility. As of December 31, 2016 , the Company had $29.0 million outstanding against the Second Amended Facility at an effective rate of 4.75% and a letter of credit for $8.0 million . Seller Financing At December 31, 2017 , the Company had $0.6 million of notes payable outstanding related to one land acquisition for which seller financing was provided. The note bears interest at a rate of 7% per annum, is secured by the underlying land, and matures in June 2018. During the year ended December 31, 2017 , the Company paid in full a note payable outstanding related to a land acquisition for which seller financing was provided. The note bore interest at a rate of 7% per annum, was secured by the underlying land, and was paid upon maturity in August 2017. This note was entered into with a related party, which is described in more detail in Note 10. Joint Venture Notes Payable The Company and certain of its consolidated joint ventures have entered into construction notes payable agreements. These loans will be repaid with proceeds from closings and are secured by the underlying projects. The issuance date, facility size, maturity date and interest rate are listed in the table below as of December 31, 2017 (in millions): Issuance Date Facility Size Outstanding Maturity Current Rate March, 2016 $ 33.4 $ 13.8 (4) September, 2018 4.47 % (1) January, 2016 35.0 28.9 February, 2019 4.82 % (2) November, 2015 42.5 15.7 (4) May, 2018 5.50 % (1) November, 2014 7.0 2.1 (4) February, 2018 5.00 % (3) March, 2014 26.0 — (6) April, 2018 4.53 % (1) July, 2017 66.2 33.4 February, 2021 4.51 % (5) $ 210.1 $ 93.9 (1) Loan bears interest at the Company's option of either LIBOR +3.0% or the prime rate +1.0% . (2) Loan bears interest at LIBOR +3.25% . (3) Loan bears interest at the prime rate +0.5% . (4) The Company anticipates paying the borrowings in full upon the maturity date from proceeds from homes closed in the respective project. (5) Loan bears interest at the greatest of the prime rate, federal funds effective rate +1.0% , or LIBOR +1.0% . (6) The balance on this borrowing was paid in full prior to the maturity date, along with all accrued interest to date. The joint venture notes payable contain certain financial maintenance covenants. The Company was in compliance with all such covenants as of December 31, 2017 . Subordinated Amortizing Notes On November 21, 2014, in order to pay down approximately $111.2 million borrowed under the one-year senior unsecured facility entered into in conjunction with the acquisition of Polygon, the Company completed its public offering and sale of 1,000,000 6.50% tangible equity units (“TEUs”, or "Units"), sold for a stated amount of $100 per Unit, featuring a 17.5% conversion premium. On December 3, 2014, the Company sold an additional 150,000 TEUs pursuant to an over-allotment option granted to the underwriters. Each TEU is a unit composed of two parts: • a prepaid stock purchase contract (a “purchase contract”); and • a senior subordinated amortizing note (an “amortizing note”). Each amortizing note had an initial principal amount of $18.01 , bore interest at the annual rate of 5.50% and had a final installment payment date of December 1, 2017. On each March 1, June 1, September 1 and December 1, commencing on March 1, 2015, William Lyon Homes paid equal quarterly installments of $1.6250 on each amortizing note (except for the March 1, 2015 installment payment, which was $1.8056 per amortizing note). Each installment constituted a payment of interest and a partial repayment of principal. On November 27, 2017, the Company issued 670,811 shares of Class A Common Stock to certain holders who elected for early settlement of their purchase contracts. On December 1, 2017 (the "mandatory settlement date"), the Company issued the balance to the remaining holders, for an aggregate issuance of 5,113,473 shares of Class A Common Stock, which reflected the minimum number of shares of Class A Common Stock, or 4.4465 shares per each of the previously outstanding 1,150,000 tangible equity units that were issuable by the Company under the purchase contracts (as adjusted for fractional shares). As of December 31, 2017 , the Company paid off the outstanding balance of the amortizing notes. 5 3/4% Senior Notes Due 2019 On March 31, 2014, California Lyon completed its private placement with registration rights of 5.75% Senior Notes due 2019 (the " 5.75% Notes"), in an aggregate principal amount of $150 million . The 5.75% Notes were issued at 100% of their aggregate principal amount. In August 2014, the Company exchanged 100% of the 5.75% Notes for notes that are freely transferable and registered under the Securities Act of 1933, as amended (the "Securities Act"). As of December 31, 2017 , the outstanding principal amount of the 5.75% Notes was $150 million , excluding deferred loan costs of $0.6 million . The 5.75% Notes bear interest at a rate of 5.75% per annum, payable semiannually in arrears on April 15 and October 15, and mature on April 15, 2019 . The 5.75% Notes are unconditionally guaranteed on a joint and several unsecured basis by Parent and by certain of Parent’s existing and future restricted subsidiaries. The 5.75% Notes and the related guarantees are California Lyon’s and the guarantors’ unsecured senior obligations and rank equally in right of payment with all of California Lyon’s and the guarantors’ existing and future unsecured senior debt, including California Lyon’s $350 million in aggregate principal amount of 7.00% Notes and $450 million in aggregate principal amount of 5.875% Notes, each as described below. The 5.75% Notes rank senior in right of payment to all of California Lyon’s and the guarantors’ future subordinated debt. The 5.75% Notes and the guarantees are and will be effectively junior to California Lyon’s and the guarantors’ existing and future secured debt to the extent of the value of the collateral securing such debt. On or after April 15, 2016 , California Lyon may redeem all or a portion of the 5.75% Notes upon not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed as percentages of the principal amount) set forth below plus accrued and unpaid interest to the applicable redemption date, if redeemed during the period beginning on each of the dates indicated below: Year Percentage April 15, 2016 104.313 % October 15, 2016 102.875 % April 15, 2017 101.438 % April 15, 2018 and thereafter 100.000 % 8 1/2% Senior Notes Due 2020 On November 8, 2012, William Lyon Homes, Inc., a California corporation and wholly-owned subsidiary of the Company (“California Lyon”) completed its private placement with registration rights of 8.5% Senior Notes due 2020 (the "initial 8.5% Notes"), in an aggregate principal amount of $325 million . The initial 8.5% Notes were issued at 100% of their aggregate principal amount. In July 2013, the Company exchanged 100% of the initial 8.5% Notes for notes that are freely transferable and registered under the Securities Act. On October 24, 2013 , California Lyon completed its private placement with registration rights of an additional $100.0 million in aggregate principal amount of its 8.5% Senior Notes due 2020 (the “additional 8.5% Notes”, and together with the initial 8.5% Notes, the " 8.5% Notes") at an issue price of 106.5% of their aggregate principal amount, plus accrued interest from and including May 15, 2013 , in a private placement, resulting in net proceeds of approximately $104.7 million . In February 2014, the Company exchanged 100% of the additional 8.5% Notes for notes that are freely transferable and registered under the Securities Act. On January 31, 2017, California Lyon completed the sale to certain purchasers of $450.0 million in aggregate principal amount of 5.875% Senior Notes due 2025 in a private placement with registration rights. Parent, through California Lyon, used the net proceeds from the 5.875% Notes, as further described below, to purchase $395.6 million of the outstanding aggregate principal amount of the 8.5% Notes, pursuant to a cash tender offer and consent solicitation. Subsequently, the Company used the remaining proceeds, together with cash on hand, for the retirement of the remaining outstanding 8.5% Notes, such that the entire aggregate $425 million of previously outstanding 8.5% Notes are retired and extinguished as of December 31, 2017 . The Company incurred certain costs related to the early extinguishment of debt of the 8.5% Notes during the period ended December 31, 2017 in an amount of $21.8 million , which is included in the Consolidated Statement of Operations as Loss on extinguishment of debt. 7% Senior Notes Due 2022 On August 11, 2014, WLH PNW Finance Corp. (“Escrow Issuer”), completed its private placement with registration rights of 7.00% Senior Notes due 2022 (the “initial 7.00% Notes”), in an aggregate principal amount of $300 million . The initial 7.00% Notes were issued at 100% of their aggregate principal amount. On August 12, 2014 , in connection with the consummation of the Acquisition, Escrow Issuer merged with and into California Lyon, and California Lyon assumed the obligations of the Escrow Issuer under initial 7.00% Notes and the related indenture by operation of law (the “Escrow Merger”). Following the Escrow Merger, California Lyon is the obligor under the initial 7.00% Notes. In January 2015, the Company exchanged 100% of the initial 7.00% Notes for notes that are freely transferable and registered under the Securities Act. On September 15, 2015, California Lyon completed its private placement with registration rights of an additional $50.0 million in aggregate principal amount of its 7.00% Senior Notes due 2022 (the "additional 7.00% Notes", and together with the initial 7.00% Notes, the "7.00 Notes"), at an issue price of 102.0% of their principal amount, plus accrued interest from August 15, 2015, resulting in net proceeds of approximately $50.5 million . In January 2016, the Company exchanged 100% of the additional 7.00% Notes for notes that are freely transferable and registered under the Securities Act. As of December 31, 2017 , the outstanding amount of the notes was $350 million , excluding unamortized premium of $0.7 million and deferred loan costs of $4.0 million . The notes bear interest at a rate of 7.00% per annum, payable semiannually in arrears on February 15 and August 15, and mature on August 15, 2022 . The 7.00% Notes are unconditionally guaranteed on a joint and several unsecured basis by Parent and certain of its existing and future restricted subsidiaries. The 7.00% Notes and the related guarantees are California Lyon’s and the guarantors’ unsecured senior obligations and rank equally in right of payment with all of California Lyon’s and the guarantors’ existing and future unsecured senior debt, including California Lyon’s $150 million in aggregate principal amount of 5.75% Notes and $450 million in aggregate principal amount of 5.875% Notes, each as described above. The 7.00% Notes rank senior in right of payment to all of California Lyon’s and the guarantors’ future subordinated debt. The 7.00% Notes and the guarantees are and will be effectively junior to California Lyon’s and the guarantors’ existing and future secured debt to the extent of the value of the collateral securing such debt. On or after August 15, 2017 , California Lyon may redeem all or a portion of the 7.00% Notes upon not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed as percentages of the principal amount) set forth below plus accrued and unpaid interest to the applicable redemption date, if redeemed during the period beginning on each of the dates indicated below: Year Percentage August 15, 2017 103.500 % August 15, 2018 101.750 % August 15, 2019 and thereafter 100.000 % Prior to August 15, 2017, the 7.00% Notes may be redeemed in whole or in part at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, and accrued and unpaid interest to, the redemption date. 5 7/8% Senior Notes Due 2025 On January 31, 2017, California Lyon completed its private placement with registration rights of 5.875% Senior Notes due 2025 (the " 5.875% Notes"), in an aggregate principal amount of $450 million . The 5.875% Notes were issued at 99.215% of their aggregate principal amount. Parent, through California Lyon, used the net proceeds from the 5.875% Notes offering to purchase the outstanding aggregate principal amount of the 8.5% Notes such that the entire aggregate $425 million of previously outstanding 8.5% Notes are retired and extinguished as of December 31, 2017 . In May 2017, the Company exchanged 100% of the 5.875% Notes for notes that are freely transferable and registered under the Securities Act. As of December 31, 2017 , the outstanding principal amount of the 5.875% Notes was $450 million , excluding unamortized discount of $3.2 million and deferred loan costs of $7.2 million . The 5.875% Notes bear interest at a rate of 5.875% per annum, payable semiannually in arrears on January 31 and July 31, and mature on January 31, 2025. The 5.875% Notes are unconditionally guaranteed on a joint and several unsecured basis by Parent and certain of its existing and future restricted subsidiaries. The 5.875% Notes and the related guarantees are California Lyon’s and the guarantors’ unsecured senior obligations and rank equally in right of payment with all of California Lyon’s and the guarantors’ existing and future unsecured senior debt, including California Lyon’s $150 million in aggregate principal amount of 5.75% Senior Notes due 2019 and $350 million in aggregate principal amount of 7.00% Senior Notes due 2022, each as described above. The 5.875% Notes rank senior in right of payment to all of California Lyon’s and the guarantors’ future subordinated debt. The 5.875% Notes and the guarantees are and will be effectively junior to California Lyon’s and the guarantors’ existing and future secured debt to the extent of the value of the collateral securing such debt. On or after January 31, 2020, California Lyon may redeem all or a portion of the 5.875% Notes upon not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed as percentages of principal amount), set forth below plus accrued and unpaid interest to the redemption date, if redeemed during the 12-month period commencing on each of the dates indicated below: Year Percentage January 31, 2020 102.938 % January 31, 2021 101.469 % January 31, 2022 100.734 % January 31, 2023 and thereafter 100.000 % Prior to January 31, 2020, the 5.875% Notes may be redeemed in whole or in part at a redemption price equal to 100% of the principal amount plus a "make-whole" premium, and accrued and unpaid interest to, the redemption date. In addition, any time prior to January 31, 2020, California Lyon may, at its option on one or more occasions, redeem the 5.875% Notes in an aggregate principal amount not to exceed 35% of the aggregate principal amount of the 5.875% Notes issued prior to such date at a redemption price (expressed as a percentage of principal amount) of 105.875% , plus accrued and unpaid interest to the redemption date, with an amount equal to the net cash proceeds from one or more equity offerings. Senior Note Covenant Compliance The indentures governing the 5.75% Notes, the 7.00% Notes, and the 5.875% Notes, contain covenants that limit the ability of Parent, California Lyon, and their restricted subsidiaries to, among other things: (i) incur or guarantee certain additional indebtedness; (ii) pay dividends, distributions, or repurchase equity or make payments in respect of subordinated indebtedness; (iii) make certain investments; (iv) sell assets; (v) incur liens; (vi) enter into agreements restricting the ability of the Company’s restricted subsidiaries to pay dividends or transfer assets; (vii) enter into transactions with affiliates; (viii) create unrestricted subsidiaries; and (viii) consolidate, merge or sell all or substantially all of its assets. These covenants are subject to a number of important exceptions and qualifications as described in the indentures. The Company was in compliance with all such covenants as of December 31, 2017 . GUARANTOR AND NON-GUARANTOR FINANCIAL STATEMENTS The following consolidating financial information includes: (1) Consolidating balance sheets as of December 31, 2017 and 2016 ; consolidating statements of operations and cash flows for the years ended December 31, 2017 , 2016 and 2015 , of (a) William Lyon Homes, as the parent, or “Delaware Lyon”, (b) William Lyon Homes, Inc., as the subsidiary issuer, or “California Lyon”, (c) the guarantor subsidiaries, (d) the non-guarantor subsidiaries and (e) William Lyon Homes, Inc. on a consolidated basis; and (2) Elimination entries necessary to consolidate Delaware Lyon, with William Lyon Homes, Inc. and its guarantor and non-guarantor subsidiaries. Delaware Lyons owns 100% of all of its guarantor subsidiaries and all guarantees are full and unconditional, joint and several. As a result, in accordance with Rule 3-10 (d) of Regulation S-X promulgated by the SEC, no separate financial statements are required for these subsidiaries as of December 31, 2017 and 2016 , and for the years ended December 31, 2017 2016 , and 2015 . The consolidating balance sheet as of December 31, 2016 was adjusted to reflect the adoption of ASU 2016-02 (see Note 1). CONSOLIDATING BALANCE SHEET December 31, 2017 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company ASSETS Cash and cash equivalents $ — $ 171,434 $ 156 $ 11,120 $ — $ 182,710 Receivables — 4,647 2,252 3,324 — 10,223 Escrow proceeds receivable — 1,594 1,725 — — 3,319 Real estate inventories — 831,007 630,384 238,459 — 1,699,850 Investment in unconsolidated joint ventures — 7,717 150 — — 7,867 Goodwill — 14,209 52,693 — — 66,902 Intangibles, net — — 6,700 — — 6,700 Deferred income taxes, net — 47,915 — — — 47,915 Lease right-of-use assets — 14,454 — — — 14,454 Other assets, net — 18,167 2,504 493 — 21,164 Investments in subsidiaries 780,472 (16,544 ) (494,201 ) — (269,727 ) — Intercompany receivables — — 269,831 — (269,831 ) — Total assets $ 780,472 $ 1,094,600 $ 472,194 $ 253,396 $ (539,558 ) $ 2,061,104 LIABILITIES AND EQUITY Accounts payable $ — $ 40,075 $ 13,007 $ 5,717 $ — $ 58,799 Accrued expenses — 108,407 2,988 96 — 111,491 Notes payable — 589 — 93,926 — 94,515 5 3 / 4 % Senior Notes — 149,362 — — — 149,362 7% Senior Notes — 346,740 — — — 346,740 5 7 / 8 % Senior Notes — 439,567 — — — 439,567 Intercompany payables — 179,788 — 90,043 (269,831 ) — Total liabilities — 1,264,528 15,995 189,782 (269,831 ) 1,200,474 Equity William Lyon Homes stockholders’ equity 780,472 (169,928 ) 456,199 (16,544 ) (269,727 ) 780,472 Noncontrolling interests — — — 80,158 — 80,158 Total liabilities and equity $ 780,472 $ 1,094,600 $ 472,194 $ 253,396 $ (539,558 ) $ 2,061,104 CONSOLIDATING BALANCE SHEET December 31, 2016 (as adjusted) (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company ASSETS Cash and cash equivalents $ — $ 36,204 $ 272 $ 6,136 $ — $ 42,612 Receivables — 2,989 3,303 3,246 — 9,538 Escrow proceeds receivable — 85 — — — 85 Real estate inventories — 910,594 645,341 216,063 — 1,771,998 Investment in unconsolidated joint ventures — 7,132 150 — — 7,282 Goodwill — 14,209 52,693 — — 66,902 Intangibles, net — — 6,700 — — 6,700 Deferred income taxes, net — 75,751 — — — 75,751 Lease right-of-use assets — 13,129 — — — 13,129 Other assets, net — 15,779 1,089 415 — 17,283 Investments in subsidiaries 697,086 (23,736 ) (573,650 ) — (99,700 ) — Intercompany receivables — — 252,860 — (252,860 ) — Total assets $ 697,086 $ 1,052,136 $ 388,758 $ 225,860 $ (352,560 ) $ 2,011,280 LIABILITIES AND EQUITY Accounts payable $ — $ 52,380 $ 16,416 $ 5,486 $ — $ 74,282 Accrued expenses — 88,187 4,634 98 — 92,919 Notes payable — 50,713 2,979 102,076 — 155,768 Subordinated Amortizing Notes — 7,225 — — — 7,225 5 3 / 4 % Senior Notes — 148,826 — — — 148,826 8 1 / 2 % Senior Notes — 422,817 — — — 422,817 7% Senior Notes — 346,014 — — — 346,014 Intercompany payables — 177,267 — 75,593 (252,860 ) — Total liabilities — 1,293,429 24,029 183,253 (252,860 ) 1,247,851 Equity William Lyon Homes stockholders’ equity 697,086 (241,291 ) 364,727 (23,736 ) (99,700 ) 697,086 Noncontrolling interests — — — 66,343 — 66,343 Total liabilities and equity $ 697,086 $ 1,052,138 $ 388,756 $ 225,860 $ (352,560 ) $ 2,011,280 CONSOLIDATING STATEMENT OF OPERATIONS Year Ended December 31, 2017 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company Operating revenue Sales $ — $ 748,396 $ 844,611 $ 202,067 $ — $ 1,795,074 Construction services — 1,454 — — — 1,454 Management fees — (5,741 ) — — 5,741 — — 744,109 844,611 202,067 5,741 1,796,528 Operating costs Cost of sales — (596,970 ) (700,878 ) (174,960 ) (5,741 ) (1,478,549 ) Construction services — (1,317 ) — — — (1,317 ) Sales and marketing — (30,637 ) (44,849 ) (10,740 ) — (86,226 ) General and administrative — (73,748 ) (16,457 ) (1 ) — (90,206 ) Other — (2,560 ) 308 (22 ) — (2,274 ) — (705,232 ) (761,876 ) (185,723 ) (5,741 ) (1,658,572 ) Income (loss) from subsidiaries 48,135 20,382 — — (68,517 ) — Operating income 48,135 59,259 82,735 16,344 (68,517 ) 137,956 Equity in income of unconsolidated joint ventures — 2,135 1,526 — — 3,661 Other income (expense), net — 2,029 264 (1,398 ) — 895 Income (loss) before loss on extinguishment of debt 48,135 63,423 84,525 14,946 (68,517 ) 142,512 Loss on extinguishment of debt — (21,828 ) — — — (21,828 ) Income (loss) before provision for income taxes 48,135 41,595 84,525 14,946 (68,517 ) 120,684 Provision for income taxes (62,933 ) — — — (62,933 ) Net income (loss) 48,135 (21,338 ) 84,525 14,946 (68,517 ) 57,751 Less: Net income attributable to noncontrolling interests — — — (9,616 ) — (9,616 ) Net income (loss) available to common stockholders $ 48,135 $ (21,338 ) $ 84,525 $ 5,330 $ (68,517 ) $ 48,135 CONSOLIDATING STATEMENT OF OPERATIONS Year Ended December 31, 2016 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company Operating revenue Sales $ — $ 573,191 $ 680,138 $ 148,874 $ — $ 1,402,203 Construction services — 3,837 — — — 3,837 Management fees — (4,362 ) — — 4,362 — — 572,666 680,138 148,874 4,362 1,406,040 Operating costs Cost of sales — (462,153 ) (564,596 ) (131,226 ) (4,362 ) (1,162,337 ) Construction services — (3,485 ) — — — (3,485 ) Sales and marketing — (27,329 ) (36,170 ) (9,010 ) — (72,509 ) General and administrative — (60,141 ) (13,256 ) (1 ) — (73,398 ) Other — (442 ) 100 (1 ) — (343 ) — (553,550 ) (613,922 ) (140,238 ) (4,362 ) (1,312,072 ) Income (loss) from subsidiaries 59,696 8,331 — — (68,027 ) — Operating income 59,696 27,447 66,216 8,636 (68,027 ) 93,968 Equity in income of unconsolidated joint ventures — 4,369 1,237 — — 5,606 Other income (expense), net — 4,640 (34 ) (1,363 ) — 3,243 Income (loss) before provision for income taxes 59,696 36,456 67,419 7,273 (68,027 ) 102,817 Provision for income taxes — (34,850 ) — — — (34,850 ) Net income (loss) 59,696 1,606 67,419 7,273 (68,027 ) 67,967 Less: Net income attributable to noncontrolling interests — — — (8,271 ) — (8,271 ) Net income (loss) available to common stockholders $ 59,696 $ 1,606 $ 67,419 $ (998 ) $ (68,027 ) $ 59,696 CONSOLIDATING STATEMENT OF OPERATIONS Year Ended December 31, 2015 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company Operating revenue Sales $ — $ 459,990 $ 568,774 $ 50,164 $ — $ 1,078,928 Construction services — 25,124 — — — 25,124 Management fees — (1,506 ) — — 1,506 — — 483,608 568,774 50,164 1,506 1,104,052 Operating costs Cost of sales — (358,793 ) (475,043 ) (43,653 ) (1,506 ) (878,995 ) Construction services — (21,181 ) — — — (21,181 ) Sales and marketing — (26,626 ) (31,231 ) (3,682 ) — (61,539 ) General and administrative — (47,385 ) (11,776 ) — — (59,161 ) Amortization of intangible assets — (957 ) — — — (957 ) Other — (3,477 ) 1,505 — — (1,972 ) — (458,419 ) (516,545 ) (47,335 ) (1,506 ) (1,023,805 ) Income (loss) from subsidiaries 57,336 (2,395 ) — — (54,941 ) — Operating income 57,336 22,794 52,229 2,829 (54,941 ) 80,247 Income from unconsolidated joint ventures — 1,912 1,327 — — 3,239 Other income (expense), net — 7,911 4,793 (9,123 ) — 3,581 In |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments In accordance with FASB ASC Topic 820 Fair Value Measurements and Disclosure , (“ASC 820”) the Company is required to disclose the estimated fair value of financial instruments. As of December 31, 2017 and 2016 , the Company used the following assumptions to estimate the fair value of each type of financial instrument for which it is practicable to estimate: • Notes Payable—The carrying amount is a reasonable estimate of fair value of the notes payable because of floating interest rate terms and/or the outstanding balance is expected to be repaid within one year. • Subordinated Amortizing Notes—The Subordinated amortizing notes are traded over the counter and their fair values were based upon quotes from industry sources. • 5 3 / 4 % Senior Notes—The 5 3 / 4 % Senior Notes are traded over the counter and their fair value was based upon published quotes; • 8 1 / 2 % Senior Notes—The 8 1 / 2 % Senior Notes are traded over the counter and their fair value was based upon published quotes; • 7% Senior Notes—The 7% Senior Notes are traded over the counter and their fair value was based upon published quotes; • 5 7 / 8 % Senior Notes—The 5 7 / 8 % Senior Notes are traded over the counter and their fair value was based upon published quotes; The following table excludes cash and cash equivalents, receivables and accounts payable, which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments. The estimated fair values of financial instruments are as follows (in thousands): December 31, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Financial liabilities: Notes payable $ 94,515 $ 94,515 $ 155,768 $ 155,768 Subordinated amortizing notes — — 7,225 7,478 5 3 / 4 % Senior Notes due 2019 149,362 151,500 148,826 151,125 8 1 / 2 % Senior Notes due 2020 — — 422,817 444,125 7% Senior Notes due 2022 346,740 362,250 346,014 363,125 5 7 / 8 % Senior Notes due 2025 439,567 459,000 — — ASC 820 establishes a framework for measuring fair value, expands disclosures regarding fair value measurements and defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 requires the Company to maximize the use of observable market inputs, minimize the use of unobservable market inputs and disclose in the form of an outlined hierarchy the details of such fair value measurements. The Company utilized Level 3 inputs to determine the fair value of its Notes Payable, and Level 2 inputs to measure the fair value of its Senior Notes and Subordinated amortizing notes. ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to a fair value measurement are considered to be observable or unobservable in a marketplace. The three levels of the hierarchy are as follows: • Level 1—quoted prices for identical assets or liabilities in active markets; • Level 2—quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3—valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Pursuant to the preemptive rights granted under the Company’s Third Amended and Restated Certificate of Incorporation, upon the issuances of the shares of Class A Common Stock underlying the TEUs (see Note 8), Lyon Shareholder 2012, LLC, a Delaware limited liability company, and the sole holder (the “Class B Holder”) of the Company’s Class B Common Stock, had the right to purchase up to the number of additional shares of Class B Common Stock needed to maintain its voting power at the time of such issuances of Class A Common Stock. On December 14, 2017, in connection with the exercise of such preemptive rights by the Class B Holder, the Company entered into a stock purchase agreement (the “Purchase Agreement”) with the Class B Holder. The Purchase Agreement provided for the purchase by the Class B Holder from the Company of 1,003,510 newly issued shares of Class B Common Stock, subject to the terms and conditions specified therein, which shares were issued and sold to the Class B Holder, and are beneficially owned by William H. Lyon, the Company’s Executive Chairman and Chairman of the Board of Directors. The aggregate consideration received by the Company for the Class B Common Stock was $29.9 million . Refer to Note 13 for further details regarding the transaction. The Company has entered into a Purchase and Sale Agreement (the “PSA”) with an entity (“Seller”) managed by an affiliate of Paulson & Co., Inc. (“Paulson”), which provides for the consummation of a transaction, subject to closing conditions specified therein, pursuant to which the Company may purchase certain real property from the Seller located in Oceanside, California, for a proposed residential homebuilding development. The PSA provides for an aggregate deposit amount of $1.2 million (the “Deposit”), which Deposit was paid and became non-refundable in December 2017. WLH Recovery Acquisition LLC, which is affiliated with, and managed by affiliates of, Paulson, previously held over 5% of Parent’s outstanding Class A common stock, which stock was sold in its entirety in September 2017. One of the members of Parent’s board of directors currently serves as Portfolio Manager for the Paulson Real Estate Funds, which are affiliates of Paulson, and is a Partner in Paulson. The Company believes that the transaction is on terms no less favorable than it would have agreed to with unrelated third parties. In December 2016, the Company sold an unentitled remnant parcel of land located in Portland, Oregon for an overall purchase price of approximately $550,000 in cash to the Division President of our Oregon division. The purchase price was supported by an unaffiliated third party appraisal received by the Company, and the Company believes that the transaction was on terms no less favorable than it would have agreed to with unrelated parties. In August 2016, the Company acquired certain lots within a master planned community located in Aurora, Colorado, for an overall purchase price of approximately $9.3 million , from an entity managed by an affiliate of Paulson. At the time of the transaction, WLH Recovery Acquisition LLC, which is affiliated with, and managed by affiliates of, Paulson, held over 5% of Parent’s outstanding Class A common stock. A portion of the acquisition price for the lots was paid in the form of a seller note with a principal amount of approximately $3.0 million (see Note 8). The Company believes that the transaction, including the terms of the seller note, was on terms no less favorable than it would have agreed to with unrelated parties. On September 3, 2009, Presley CMR, Inc., a California corporation (“Presley CMR”) and wholly owned subsidiary of California Lyon, entered into an Aircraft Purchase and Sale Agreement (“PSA”) with an affiliate of General William Lyon to sell an aircraft. The PSA provided for an aggregate purchase price for the Aircraft of $8.3 million , (which value was the appraised fair market value of the Aircraft), which consisted of: (i) cash in the amount of $2.1 million to be paid at closing and (ii) a promissory note from the affiliate in the amount of $6.2 million . The note was secured by the Aircraft and required semiannual interest payments to California Lyon of approximately $132,000 . The note provided for a maturity date in September 2016 . During the year ended December 31, 2016 , the promissory note was paid in full by the borrower prior to the September 2016 maturity date, along with all accrued interest to date. In October 2015, the Company acquired certain lots within the master planned community of Lake Las Vegas in Nevada for a cash purchase price of approximately $7.3 million, from an entity managed by an affiliate of Paulson. The Company believes that the transaction was on terms no less favorable than it would have agreed to with unrelated parties. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Since inception, the Company has operated solely within the United States. The following summarizes the provision from income taxes (in thousands): Year Ended December 31, Year Ended December 31, Year Ended December 31, 2017 2016 2015 Current Federal $ (25,974 ) $ (26,978 ) $ (15,296 ) State (9,122 ) (4,077 ) (3,350 ) Deferred Federal (26,663 ) (1,395 ) (5,259 ) State (1,174 ) (2,400 ) (2,901 ) $ (62,933 ) $ (34,850 ) $ (26,806 ) Income taxes differ from the amounts computed by applying the applicable federal statutory rates due to the following (in thousands): Year Ended December 31, Year Ended December 31, Year Ended December 31, 2017 2016 2015 Provision for federal income taxes at the statutory rate $ (42,240 ) $ (35,986 ) $ (30,473 ) (Increases)/decreases in tax resulting from: Provision for state income taxes, net of federal income tax benefits (6,692 ) (4,210 ) (4,063 ) Rate adjustment - new tax reform legislation (23,126 ) — — Change in valuation allowance — — 1,626 Domestic production activities deduction 2,868 2,481 2,087 Nondeductible items-other (94 ) (58 ) (52 ) Non-controlling interests 3,366 2,895 1,024 Change in RBIL estimate — — 1,771 Tax credits (160 ) 166 1,272 Stock based compensation 281 27 — Other, net 2,864 (165 ) 2 $ (62,933 ) $ (34,850 ) $ (26,806 ) On December 22, 2017, President Donald Trump signed into law “H.R.1” (the “Tax Cuts and Jobs Act”), which among other items reduces the federal corporate tax rate from 35% to 21% effective January 1, 2018. Also on December 22, 2017, the Securities & Exchange Commission Staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance for accounting for effects of the Tax Cuts and Jobs Act for which the accounting under ASC 740, “Income Taxes” (“ASC 740”) is incomplete. Under SAB 118, to the extent that accounting for certain income tax effects of the Tax Cuts and Jobs Act is incomplete but that the Company is able to determine a reasonable estimate, it must record a provisional estimate in its consolidated financial statements. If a reasonable estimate cannot be determined, ASC 740 should continue to be applied on the basis of the tax laws that were in effect prior to the passage of the Tax Cuts and Jobs Act. The Company recognized the income tax effects of the Tax Cuts and Jobs Act in accordance with SAB 118. As such, the Company’s financial results for the year ended December 31, 2017 reflect the income tax effects for which the accounting under ASC Topic 740 is complete and provisional amounts for those specific income tax effects of the 2017 Tax Act for which the accounting under ASC Topic 740 is incomplete but a reasonable estimate could be determined. The Company has recognized the tax impact related to the revaluation of deferred tax assets and liabilities, resulting in $23.1 million of additional income tax expense for the year ended December 31, 2017 . The Company has also recorded a provisional amount in relation to the treatment of AMT credits in its consolidated financial statements for the year ended December 31, 2017 . The Company did not identify any items for which the income tax effects of the Tax Cuts and Jobs Act have not been completed and a reasonable estimate could not be determined as of December 31, 2017 . The ultimate impact of AMT credits may differ from the provisional amount, possibly materially, due to, among other things, additional analysis, additional regulatory guidance that may be issued, and actions the Company may take as a result of the Tax Cuts and Jobs Act. The Company’s effective income tax rate was 52.1% , and 33.9% for the year ended December 31, 2017 and 2016 , respectively. The significant drivers of the effective tax rate are revaluation of deferred tax assets and liabilities discussed above, allocation of income to noncontrolling interests and the domestic production activities deduction. Temporary differences giving rise to deferred income taxes consist of the following (in thousands): December 31, 2017 2016 Deferred tax assets Impairment and other reserves $ 33,883 $ 53,806 Compensation deductible for tax purposes when paid 5,093 9,161 AMT credit carryover 1,384 1,384 Unused recognized built-in loss 10,706 18,651 Net operating loss 3,488 3,172 Effect of book/tax differences for general and administrative 4,508 6,427 Other 806 694 59,868 93,295 Deferred tax liabilities Effect of book/tax differences for joint ventures (1,343 ) (2,706 ) Effect of book/tax differences for capitalized interest (6,478 ) (11,103 ) Fixed assets and intangibles (1,850 ) (1,716 ) Goodwill and other intangibles (1,998 ) (1,541 ) Other (284 ) (478 ) (11,953 ) (17,544 ) Total deferred tax assets, net $ 47,915 $ 75,751 Management assesses its deferred tax assets to determine whether all or any portion of the asset is more likely than not unrealizable under ASC 740. The Company is required to establish a valuation allowance for any portion of the asset that management concludes is more likely than not to be unrealizable. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company's assessment considers all evidence, both positive and negative, including the nature, frequency and severity of any current and cumulative losses, taxable income in carry back years, the scheduled reversal of deferred tax liabilities, tax planning strategies, and projected future taxable income in making this assessment. At December 31, 2017 the Company had no valuation allowance recorded. As of December 31, 2012, the Company had generated significant deferred tax assets through its operations, but as a result of the Company's ongoing assessments had determined that it was not more likely than not that the Company would be able to utilize these assets. As a result, the Company had recorded a full valuation allowance against the $200.0 million deferred tax asset balance. During the quarter ended December 31, 2013, the Company determined that it would be able to utilize $95.6 million of its deferred tax assets, and recognized an income tax benefit in its results of operations in this amount. This conclusion was based upon the operating results of the Company, most notably three consecutive quarters of net income, reduced interest expense as a result of the 2012 restructure, and eight consecutive quarters of period over period growth in net new home orders, home closings, and dollar value of backlog, in addition to continued improving conditions in the single family home market. Since 2013, the Company's operating results have demonstrated consistent improvement with significant growth in revenues and net income, which has allowed it to realize approximately $20.0 million in deferred tax assets through December 31, 2017. The Company's analysis demonstrated that even under the stress tested forecasts of future results which considered the potential impact of the negative evidence noted above, the Company would continue to generate sufficient taxable income in future periods to realize the majority of its deferred tax assets. This fact, coupled with other positive evidence described above, significantly outweighed the negative evidence and based on this analysis management concluded, in accordance with ASC 740, that it was more likely than not that the majority of its deferred tax assets as of December 31, 2013 would be realized. At December 31, 2017 , the Company had no remaining federal net operating loss carryforwards and $49.9 million remaining state net operating loss carryforwards. State net operating loss carryforwards begin to expire in 2031. In addition, as of December 31, 2017 , the Company had unused federal and state built-in losses of $48.5 million and $7.5 million , respectively. The 5 year testing period for built-in losses expires in 2017 and the unused built-in loss carryforwards begin to expire at the end of 2032. The Company had AMT credit carryovers of $1.4 million at December 31, 2017 , which if not previously utilized are allowable as refundable credits under the Jobs and Tax Act through 2022. However, the refundability of the credit will be determined through additional guidance to properly interpret the interaction between Internal Revenue Code Section 383 with the Jobs and Tax Act. ASC 740 prescribes a recognition threshold and a measurement criterion for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be considered more likely than not to be sustained upon examination by taxing authorities. The Company records interest and penalties related to uncertain tax positions as a component of the provision for income taxes. As of December 31, 2017 and 2016 , the Company had no significant uncertain tax positions. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. Due to the Company’s net operating losses incurred, the Company is subject to U.S. federal income tax examinations for calendar tax years ended 2012 and forward and subject to various state income tax examinations for calendar tax years ended 2008 and forward. The Company is currently under examination by the Internal Revenue Service for the 2013 and 2014 tax years and a California examination is pending for the 2014 tax year. |
Income Per Common Share
Income Per Common Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Income Per Common Share | Income Per Common Share Basic and diluted income per common share for the years ended December 31, 2017 , 2016 , and 2015 were calculated as follows (in thousands, except number of shares and per share amounts): Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Basic weighted average number of shares outstanding (1) 37,040,137 36,764,799 36,546,227 Effect of dilutive securities: Preferred shares, stock options, and warrants 1,623,530 815,171 1,326,399 Tangible Equity Units — 894,930 894,930 Diluted average shares outstanding 38,663,667 38,474,900 38,767,556 Net income available to common stockholders $ 48,135 $ 59,696 $ 57,336 Basic income per common share $ 1.30 $ 1.62 $ 1.57 Dilutive income per common share $ 1.24 $ 1.55 $ 1.48 Potentially antidilutive securities not included in the calculation of diluted income per common share (weighted average): Unvested stock options 240,000 240,000 180,000 (1) For the year ended December 31, 2017 , basic weighted average number of shares outstanding includes 5,113,475 shares of the Company’s Tangible Equity Units, of which 670,811 and 4,442,664 were settled and issued on November 27, 2017 and December 1, 2017, respectively. For the years ended December 31, 2016 and December 31, 2015 , basic weighted average number of shares outstanding included the minimum number of shares that were issuable under the Company’s Tangible Equity Units. As these periods were prior to the settlement of the TEUs, these calculations assumed 5,113,475 shares included from the respective issue dates of the Company’s Tangible Equity Units. See Note 8. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Equity | Equity Common Stock Pursuant to the preemptive rights granted under the Company’s Third Amended and Restated Certificate of Incorporation, upon the issuances of the shares of Class A Common Stock underlying the TEUs (see Note 8), Lyon Shareholder 2012, LLC, a Delaware limited liability company and the sole holder of the Company’s Class B Common Stock, par value $0.01 per share, had the right to purchase up to the number of additional shares of Class B Common Stock needed to maintain its voting power at the time of such issuances of Class A Common Stock. On December 14, 2017, in connection with the exercise of such preemptive rights by the Class B Holder, the Company entered into a stock purchase agreement with the Class B Holder. The purchase agreement provided for the purchase by the Class B Holder from the Company of 1,003,510 newly issued shares of Class B Common Stock, subject to the terms and conditions specified therein, which reflects the maximum number of shares that could be purchased pursuant to such preemptive rights in connection with the settlement of the TEUs. Accordingly, the Company issued and sold to the Class B Holder 1,003,510 shares of Class B Common Stock. The aggregate consideration received by the Company for the Class B Common Stock was $29,908,028 , for an average purchase price of approximately $29.80 per share. Pursuant to the terms of the Certificate of Incorporation, each share of Class B Common Stock is convertible into a share of Class A Common Stock. Each share of Class B Common Stock will automatically convert into one share of Class A Common Stock if holders of a majority of the shares of Class B Common Stock then-outstanding vote in favor of such conversion. Further, if, at any time, any share of Class B Common Stock is not owned, beneficially or of record, by either General William Lyon or William H. Lyon, their siblings, spouses and lineal descendants (including by step-, adoptive and similar relationships), any entities wholly owned by one or more of the foregoing persons, or any trusts or other estate planning vehicles for the benefit of any of the foregoing, then such share of Class B Common Stock will automatically convert into one share of Class A Common Stock. A holder of Class B Common Stock may also elect at any time to convert any or all of their shares into Class A Common Stock at the rate of one share of Class A Common Stock for each share of Class B Common Stock. All of our outstanding shares of common stock have been validly issued and fully paid and are non-assessable. The rights of the holders of common stock will be subject to, and may be adversely affected by, the rights of the holders of preferred stock, of which there are no shares issued or outstanding as of December 31, 2017 or 2016 . Holders of our common stock have no preference, exchange, sinking fund, redemption or appraisal rights and have no preemptive rights to subscribe for any of our securities, with the exception of holders of our Class B Common Stock, which do have certain preemptive rights. The Company does not intend to declare or pay cash dividends in the foreseeable future. Any determination to pay dividends to holders of our common stock will be at the discretion of our board of directors. The payment of cash dividends is restricted under the terms of certain of the agreements governing our outstanding indebtedness, including the indentures governing our senior notes. Share Repurchase Program As announced on February 22, 2017, the Board of Directors of the Company has approved a stock repurchase program, authorizing the repurchase of up to an aggregate of $50 million of the Company's Class A common stock. The program allows the Company to repurchase shares of Class A common stock from time to time for cash in the open market or privately negotiated transactions or other transactions, as market and business conditions warrant and subject to applicable legal requirements. The stock repurchase program does not obligate the Company to repurchase any particular amount of common stock, and it could be modified, suspended or discontinued at any time. As of December 31, 2017 , the Company repurchased 138,227 shares, for an average purchase price of approximately $22.50 per share, and had $46.9 million remaining available for repurchase. Warrants The holders of Class B common stock hold warrants to purchase 1,907,551 shares of Class B common stock at an exercise price of $17.08 per share. The expiration date of the Class B Warrants is February 24, 2022 . The Warrants were assigned a value of $1.0 million in conjunction with the adoption of fresh start accounting and are recorded in additional paid-in capital. Tangible Equity Units On November 27, 2017, the Company issued 670,811 shares of Class A Common Stock to certain holders who elected for early settlement of their purchase contracts. On December 1, 2017 (the "mandatory settlement date"), the Company issued the balance to the remaining holders, for an aggregate issuance of 5,113,473 shares of Class A Common Stock, which reflected the minimum number of shares of Class A Common Stock, or 4.4465 shares per each of the previously outstanding 1,150,000 tangible equity units that were issuable by the Company under the purchase contracts (as adjusted for fractional shares). As of December 31, 2017 , the amortizing notes were settled in full. The net proceeds from the issuance of the TEUs were allocated between the purchase contract and amortizing note based on their relative fair values. As a result, $90.7 million was allocated to additional paid-in capital in connection with the issuance of the TEUs during 2014. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | Stock Based Compensation In 2012, the Company adopted the William Lyon Homes 2012 Equity Incentive Plan (the “Plan”). The Plan was approved by the Board of Directors and the Company’s stockholders, and is administered by the Compensation Committee of the Board. The provisions of the Plan allow for a variety of stock-based compensation awards, including stock options, stock appreciation rights, or SARs, restricted stock awards, restricted stock unit awards, deferred stock awards, deferred stock unit awards, dividend equivalent awards, stock payment awards and performance awards and other stock-based awards, to certain executives, directors, and non-executives of California Lyon. The Company believes that such awards provide a means of compensation to attract and retain qualified employees and better align the interests of our employees with those of our stockholders. Option awards are granted with an exercise price equal to the market price at the date of grant. During 2017, the Company amended the Plan to reflect a broad range of compensation and governance practices necessary to attract and retain the services key individuals essential to the Company’s long -term growth and success. Among other things, the amendment served to increase the aggregate number of shares of common stock available for issuance under the prior plan by 900,000 shares. Under the Plan, 4,535,363 shares of the Company’s Class A common stock have been reserved for issuance. In 2017 , the Company granted an aggregate of 813,586 restricted shares of Class A common stock, which consisted of 259,677 shares of time-based restricted stock and 553,909 shares of performance based restricted stock. In 2016 , and 2015 , the Company granted an aggregate of 857,460 restricted shares and 493,524 restricted shares, respectively, of Class A common stock. With respect to time-based restricted stock granted to employees during 2017 , 172,857 of such shares are subject to a vesting schedule pursuant to which one-third of the shares will vest on March 1st of each of 2018, 2019 and 2020, 45,111 of such shares are subject to a vesting schedule pursuant to which one-half of the shares will vest on March 1st of each of 2018 and 2019, and 6,434 of such shares have a vesting schedule pursuant to which one-half of the shares will vest on July 27th of each of 2018 and 2019, in each case subject to each grantee’s continued service through each vesting date, and 35,275 of such shares vest in equal quarterly installments on each of June 1, 2017, September 1, 2017, December 1, 2017 and March 1, 2018, subject to each grantee’s continued service on the board through each vesting date. The Company granted performance-based restricted stock awards to certain executive employees during each of 2017 , 2016 and 2015 . With respect to the performance based restricted stock awards granted during 2017 , 2016 and 2015 , the performance based restricted stock awards vests as follows: one-third of the shares of performance based restricted stock will vest on March 1 of each of the first, second, and third years following the grant date, and all but one of such grants were subject to the Company’s achievement of pre-established performance targets as of the end of the given fiscal year, and subject to each grantee's continued service through each vesting date. The remaining grant did not contain a pre-established performance target, but the earned shares for such award were determined by the exercise of the discretion of the Compensation Committee of Parent’s Board of Directors following the end of the 2014 fiscal year, which were determined to be at the target level. During 2017 , the Company achieved and recorded stock based compensation expense at 111% of its performance target. During 2016 , the Company achieved 96% of its performance target related to certain metrics, resulting in earned shares based on the term of the award agreements, but did not achieve its target level for another metric applicable to certain individuals. During 2015 , the Company achieved 92% of its performance targets. The Company uses the fair value method of accounting for stock options granted to employees which requires us to measure the cost of employee services received in exchange for the stock options, based on the grant date fair value of the award. The fair value of the awards is estimated using the Black-Scholes option-pricing model. The resulting cost is recognized on a straight line basis over the period during which an employee is required to provide service in exchange for the award, usually the vesting period. The fair value of each employee option awarded was estimated on the grant date using the Black-Scholes option-pricing model with the following weighted-average assumptions. Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Expected dividend yield N/A N/A — Risk-free interest rate N/A N/A 1.71% Expected volatility N/A N/A 44% Expected life (in years) N/A N/A 6.75 The Black-Scholes option-pricing model requires inputs such as the expected dividend yield, risk-free interest rate, expected term and expected volatility. Further, the forfeiture rate also affects the amount of aggregate compensation. These inputs are subjective and generally require significant judgment. The risk-free interest rate that we use is based on the United States Treasury yield in effect at the time of grant for zero coupon United States Treasury notes with maturities approximating each grant’s expected life. Given our limited history with employee exercise patterns, we use the “simplified” method in estimating the expected term for our employee grants. The “simplified” method is calculated as the average of the time-to-vesting and the contractual life of the options. Our expected volatility was derived from the historical volatilities of our common stock and several unrelated public companies within the homebuilding industry, because we had insufficient trading history on our common stock at the time the grants were valued. When making the selections of our peer companies within the homebuilding industry to be used in the volatility calculation, we also considered the stage of development, size and financial leverage of potential comparable companies. We estimate our forfeiture rate based on an analysis of our actual forfeitures and will continue to evaluate the appropriateness of the forfeiture rate based on actual forfeiture experience, analysis of employee turnover behavior and other factors. As of December 31, 2017 , the Company has 1,604,258 shares available for grant under the Plan. Summary of Stock Option Activity Stock option activity under the Plan for the years ended December 31, 2017 , 2016 , and 2015 was as follows: Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Options Weighted Average Exercise Price Options Weighted Average Exercise Price Options Weighted Options outstanding at beginning of year 596,313 $ 15.57 611,313 $ 15.40 419,238 $ 8.66 Granted (1) — N/A — N/A 240,000 $ 25.82 Exercised (3,535 ) $ 8.66 (15,000 ) $ 8.66 (47,925 ) $ 8.66 Canceled — N/A — N/A — N/A Options outstanding at end of year 592,778 $ 15.61 596,313 $ 15.57 611,313 $ 15.40 Options vested and expected to vest 592,778 $ 15.61 596,313 $ 15.57 611,313 $ 15.40 Options exercisable at end of year (2) 352,778 $ 8.66 356,313 $ 8.66 371,313 $ 8.66 Price range of options exercised $ 8.66 $ 8.66 $ 8.66 Price range of options outstanding $8.66-$25.82 $8.66-$25.82 $8.66-$25.82 (1) The weighted average grant date fair value of the stock options during December 31, 2015 was $12.01 . (2) No options vested during the years ended December 31, 2017 , 2016 or 2015 . The following table summarizes information about stock options granted to executives, directors, and non-executives that are outstanding and exercisable at December 31, 2017 : Outstanding Exercisable Exercise Price Number of Shares Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Number of Shares $ 8.66 352,778 4.75 $ 7,203,727 352,778 Summary of Restricted Shares Activity During the years ended December 31, 2017 , 2016 , and 2015 , the Company had the following activity relating to grants of time-based restricted common stock: Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Number of Shares Weighted Avg Grant Date Fair Value Number of Shares Weighted Avg Grant Date Fair Value Number of Weighted Avg Grant Date Fair Value Non-vested shares at beginning of year 346,924 $ 16.91 225,687 $ 23.65 79,335 $ 24.84 Granted 259,677 18.14 291,368 14.14 208,715 23.11 Vested (181,812 ) 17.62 (126,073 ) 21.81 (55,571 ) 23.24 Canceled (1) (5,494 ) 16.23 (44,058 ) 19.06 (6,792 ) 24.28 Non-vested shares at end of year 419,295 $ 17.38 346,924 $ 16.91 225,687 $ 23.65 (1) Represents shares that were canceled as result of terminations of employment. During the years ended December 31, 2017 , 2016 , and 2015 the Company had the following activity relating to grants of performance based restricted common stock: Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Number of Shares Weighted Avg Grant Date Fair Value Number of Weighted Avg Grant Date Fair Value Number of Weighted Avg Grant Date Fair Value Non-vested shares at beginning of year 655,133 $ 17.81 480,757 $ 24.18 506,846 $ 23.84 Granted 553,909 18.00 566,092 13.88 284,809 23.50 Vested (147,477 ) 21.49 (190,977 ) 20.58 (154,467 ) 19.58 Canceled (1) (349,000 ) 19.55 (200,739 ) 23.38 (156,431 ) 28.86 Non-vested shares at end of year 712,565 $ 17.01 655,133 $ 17.81 480,757 $ 24.18 (1) Represents shares that were canceled as a result of achievement of performance targets as outlined in the respective grant agreement at below the maximum levels, as well as a result of terminations of employment. In conjunction with the issuance of the equity grants in the years ended December 31, 2017 , 2016 and 2015 , the Company recorded stock based compensation expense of $10.1 million , $6.4 million , and $6.6 million , respectively, which is included in general and administrative expense in the consolidated statement of operations. As of December 31, 2017 , $8.8 million of total unrecognized stock based compensation expense is expected to be recognized as an expense by the Company in the future over a weighted average period of 1.0 years . The total value of restricted stock awards which fully vested during the years ended December 31, 2017 , 2016 and 2015 was $8.0 million , $5.1 million , and $6.0 million , respectively. For the years ended December 31, 2017 , 2016 and 2015 , the Company recognized an income tax benefit of $3.8 million , $4.1 million and $3.5 million related to stock based compensation, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company’s commitments and contingent liabilities include the usual obligations incurred by real estate developers in the normal course of business. In the opinion of management, these matters will not have a material effect on the Company’s consolidated financial position, results of operations or cash flows. The Company is a defendant in various lawsuits related to its normal business activities. We believe that the accruals we have recorded for probable and reasonably estimable losses with respect to these proceedings are adequate and that, as of December 31, 2017 , it was not reasonably possible that an additional material loss had been incurred in an amount in excess of the estimated amounts already recognized on our consolidated financial statements. We evaluate our accruals for litigation and regulatory proceedings, and as appropriate, adjust them to reflect (i) the facts and circumstances known to us at the time, including information regarding negotiations, settlements, rulings and other relevant events and developments; (ii) the advice and analyses of counsel; and (iii) the assumptions and judgment of management. Similar factors and considerations are used in establishing new accruals for proceedings as to which losses have become probable and reasonably estimable at the time an evaluation is made. The outcome of any of these proceedings, including the defense and other litigation-related costs and expenses we may incur, however, is inherently uncertain and could differ significantly from the estimate reflected in a related accrual, if made. Therefore, it is possible that the ultimate outcome of any proceeding, if in excess of a related accrual or if no accrual had been made, could be material to our consolidated financial statements. In some jurisdictions in which the Company develops and constructs property, assessment district bonds are issued by municipalities to finance major infrastructure improvements. As a land owner benefited by these improvements, the Company is responsible for the assessments on its land. When properties are sold, the assessments are either prepaid or the buyers assume the responsibility for the related assessments. Assessment district bonds are recorded as liabilities in the Company’s consolidated balance sheet, if the amounts are fixed and determinable. As of December 31, 2017 and 2016 , the Company is not obligated under any assessment district bonds. The Company also had outstanding performance and surety bonds of $234.0 million at December 31, 2017 related principally to its obligations for site improvements at various projects. The Company does not believe that draws upon these bonds, if any, will have a material effect on the Company’s financial position, results of operations or cash flows. As of December 31, 2017 , the Company had $355.5 million of project commitments relating to the construction of projects. The Company has provided unsecured environmental indemnities to certain lenders, joint venture partners and land sellers. In each case, the Company has performed due diligence on the potential environmental risks including obtaining an independent environmental review from outside environmental consultants. These indemnities obligate the Company to reimburse the guaranteed parties for damages related to environmental matters. There is no term or damage limitation on these indemnities; however, if an environmental matter arises, the Company could have recourse against other previous owners. See Note 8 for additional information relating to the Company’s guarantee arrangements. The Company has entered into various purchase option agreements with third parties to acquire land. As of December 31, 2017 , the Company has made non-refundable deposits of $51.8 million . The Company is under no obligation to purchase the land, but would forfeit remaining deposits if the land were not purchased. The total purchase price under the purchase option agreements is $539.3 million as of December 31, 2017 . Lease Obligations As described more fully in Note 1, as of April 1, 2017, the Company adopted the provisions of ASU 2016-02 and recognized lease obligations and associated ROU assets for its existing non-cancelable leases. Lease obligations, as included in Accrued expenses on the consolidated balance sheets, were $14.5 million as of December 31, 2017 and $13.1 million as of December 31, 2016 . The Company has non-cancelable operating leases primarily associated with office facilities, real estate and office equipment, in addition to one related sublease for an office facility. The determination of which discount rate to use when measuring the lease obligation was deemed a significant judgment. Lease cost, as included in general and administrative expense in our consolidated statements of operations for the respective periods, and additional information regarding lease terms are as follows (dollars in thousands): Year Ended December 31, 2017 Year Ended December 31, 2016 Lease cost Operating lease cost $ 6,835 $ 3,890 Sublease income (117 ) (117 ) Total lease cost $ 6,718 $ 3,773 Other information Cash paid for amounts included in the measurement of lease liabilities for operating leases: Operating cash flows $ 5,551 $ 3,270 Right-of-use assets obtained in exchange for new operating lease liabilities $ 5,925 $ 1,353 Weighted-average discount rate 6.6 % 6.6 % December 31, 2017 December 31, 2016 Weighted-average remaining lease term (in years) 3.58 5.16 The table below shows the future minimum payments under non-cancelable operating leases at December 31, 2017 (in thousands). Year Ending December 31, 2018 $ 6,998 2019 3,989 2020 2,635 2021 2,398 2022 1,342 Thereafter 440 Total $ 17,802 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Agreement to Acquire RSI Communities LLC On February 20, 2018, the Company announced it entered into a definitive agreement with RSI Communities LLC (“RSI Communities”), RS Equity Management LLC, the Class B Sellers of RSI Communities, and RS Equity Management LLC, as the sellers’ representative, to acquire RSI Communities, a Southern California and Texas based homebuilder, and three additional related real estate assets for an aggregate cash purchase price of approximately $460 million , subject to net asset value adjustments. The Company intends to fund the transaction with cash on hand, debt, and land banking proceeds. The transaction contains customary representations, warranties and covenants of the parties, and closing of the transaction is subject to customary closing conditions. The transaction is expected to close in the first quarter of fiscal year 2018. There can be no assurance that the proposed transaction will be completed, or if it is completed, that the expected benefits of the transaction will be realized. No other events have occurred subsequent to December 31, 2017 , that would require recognition or disclosure in the Company’s financial statements. |
Unaudited Summarized Quarterly
Unaudited Summarized Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Summarized Quarterly Financial Information | Unaudited Summarized Quarterly Financial Information Summarized unaudited quarterly financial information for the years ended December 31, 2017 and 2016 is as follows (in thousands except per share data): Three Months Ended March 31, June 30, September 30, December 31, Home sales $ 258,854 $ 422,633 $ 490,304 $ 623,283 Cost of sales (218,455 ) (353,057 ) (401,700 ) (505,337 ) Gross profit 40,399 69,576 88,604 117,946 Other income, costs and expenses, net (49,695 ) (49,325 ) (58,544 ) (101,210 ) Net (loss) income (9,296 ) 20,251 30,060 16,736 Net (loss) income available to common stockholders $ (10,000 ) $ 18,954 $ 27,418 $ 11,763 (Loss) Income per common share: Basic $ (0.27 ) $ 0.51 $ 0.74 $ 0.32 Diluted $ (0.27 ) $ 0.49 $ 0.71 $ 0.30 Three Months Ended March 31, June 30, September 30, December 31, Home sales $ 261,295 $ 325,059 $ 342,628 $ 473,221 Cost of sales (215,171 ) (268,638 ) (285,896 ) (392,632 ) Gross profit 46,124 56,421 56,732 80,589 Other income, costs and expenses, net (36,183 ) (41,335 ) (40,218 ) (54,163 ) Net income 9,941 15,086 16,514 26,426 Net income available to common stockholders $ 9,014 $ 14,561 $ 13,069 $ 23,052 Income per common share: Basic $ 0.25 $ 0.40 $ 0.36 $ 0.63 Diluted $ 0.24 $ 0.38 $ 0.34 $ 0.60 |
Basis of Presentation and Sig25
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The preparation of the Company’s financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of the assets and liabilities as of December 31, 2017 and 2016 and revenues and expenses for the years ended December 31, 2017 , 2016 , and 2015 . Accordingly, actual results could differ from those estimates. The significant accounting policies using estimates include real estate inventories and cost of sales, impairment of real estate inventories, warranty reserves, loss contingencies, accounting for variable interest entities, valuation of deferred tax assets, and the fair value of assets acquired and liabilities assumed in connection with acquisition accounting. The consolidated financial statements include the accounts of the Company and all majority-owned and controlled subsidiaries and joint ventures, and certain joint ventures and other entities which have been determined to be variable interest entities in which the Company is considered the primary beneficiary (see Note 2). The accounting policies of the joint ventures are substantially the same as those of the Company. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Real Estate Inventories | Real Estate Inventories Real estate inventories are carried at cost net of impairment losses, if any. Real estate inventories consist primarily of land deposits, land and land under development, homes completed and under construction, and model homes. All direct and indirect land costs, offsite and onsite improvements and applicable interest and other carrying charges are capitalized to real estate projects during periods when the project is under development. Land, offsite costs and all other common costs are allocated to land parcels benefited based upon relative fair values before construction. Onsite construction costs and related carrying charges (principally interest and property taxes) are allocated to the individual homes within a phase based upon the relative sales value of the homes. The Company relieves its accumulated real estate inventories through cost of sales for the estimated cost of homes sold. Selling expenses and other marketing costs are expensed in the period incurred. From time to time the Company sells land to third parties. The Company does not consider these sales to be core to its homebuilding business, and any gain or loss recognized on these transactions is recorded in other non-operating income. For the years ended December 31, 2017 , 2016 and 2015 , the Company had four , five , and one land parcel sales, respectively, that resulted in a $0.8 million gain, $3.6 million gain and $0.8 million gain, respectively. The Company accounts for its real estate inventories under FASB ASC 360 Property, Plant, & Equipment (“ASC 360”). ASC 360 requires impairment losses to be recorded on real estate inventories when indicators of impairment are present and the undiscounted cash flows estimated to be generated by real estate inventories are less than the carrying amount of such assets. Indicators of impairment include a decrease in demand for housing due to softening market conditions, competitive pricing pressures, which reduce the average sales price of homes including an increase in sales incentives offered to buyers, slowing sales absorption rates (calculated as net new home orders divided by average sales locations for a given period), decreases in home values in the markets in which the Company operates, significant decreases in gross margins and a decrease in project cash flows for a particular project. For land, construction in progress and completed inventory, including model homes, the Company estimates expected cash flows at the project level by maintaining current budgets using recent historical information and current market assumptions. The Company updates project budgets and cash flows of each real estate project on an as needed basis to determine whether the estimated remaining undiscounted future cash flows of the project are more or less than the carrying amount (net book value) of the asset. If the undiscounted cash flows are more than the net book value of the project, then there is no impairment. If the undiscounted cash flows are less than the net book value of the asset, then the asset is deemed to be impaired and is written-down to its fair value. Fair value represents the amount at which an asset could be bought or sold in a current transaction between willing parties (i.e., other than a forced or liquidation sale). Management determines the estimated fair value of each project by determining the present value of estimated future cash flows at discount rates that are commensurate with the risk of each project and each domain, market or sub-market or may use recent appraisals if they more accurately reflect fair value. The estimation process involved in determining if assets have been impaired and in the determination of fair value is inherently uncertain because it requires estimates of future revenues and costs, as well as future events and conditions. Estimates of revenues and costs are supported by the Company’s budgeting process, and are based on recent sales in backlog, pricing required to get the desired pace of sales, pricing of competitive projects, incentives offered by competitors and current estimates of costs of development and construction or current appraisals. The assumptions and judgments used by the Company in the estimation process to determine the future undiscounted cash flows of a project and its fair value are inherently uncertain and require a substantial degree of judgment. The realization of the Company’s real estate inventories is dependent upon future uncertain events and market conditions. Due to the subjective nature of the estimates and assumptions used in determining the future cash flows of a project, actual results could differ materially from current estimates. Management assesses land deposits for impairment when estimated land values are deemed to be less than the agreed upon contract price. The Company considers changes in market conditions, the timing of land purchases, the ability to renegotiate with land sellers, the terms of the land option contracts in question, the availability and best use of capital, and other factors. The Company records abandoned land deposits and related pre-acquisition costs in cost of sales-lots, land and other in the consolidated statements of operations in the period that it is abandoned. A provision for warranty costs relating to the Company’s limited warranty plans is included in cost of sales and accrued expenses at the time the sale of a home is recorded. The Company generally reserves a percent of the sales price of its homes, or a set amount per home closed depending on operating segment, against the possibility of future charges relating to its warranty programs and similar potential claims. Factors that affect the Company’s warranty liability include the number of homes under warranty, historical and anticipated rates of warranty claims, and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary. |
Construction Services | Construction Services The Company accounts for construction management agreements using the Percentage of Completion Method in accordance with FASB ASC Topic 605 Revenue Recognition (“ASC 605”). Under ASC 605, the Company records revenues and expenses as a contracted project progresses, and based on the percentage of costs incurred to date compared to the total estimated costs of the contract. The Company entered into construction management agreements to build, sell and market homes in certain communities. For such services, the Company will receive fees (generally 3 to 5 percent of the sales price, as defined) and may, under certain circumstances, receive additional compensation if certain financial thresholds are achieved. |
Financial Instruments | Financial Instruments Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash investments, receivables, escrow proceeds receivable, our indebtedness, and deposits. The Company typically places its cash investments in investment grade short-term instruments. Deposits, included in other assets, are due from municipalities or utility companies and are generally collected from such entities through fees assessed to other developers. The Company is an issuer of, or subject to, financial instruments with off-balance sheet risk in the normal course of business which exposes it to credit risks. These financial instruments include letters of credit and obligations in connection with assessment district bonds. These off-balance sheet financial instruments are described in more detail in Note 15. |
Cash and Cash Equivalents | Cash and Cash Equivalents Short-term investments with a maturity of three months or less when purchased are considered cash equivalents. The Company’s cash and cash equivalents balance exceeds federally insurable limits as of December 31, 2017 and 2016 . The Company monitors the cash balances in its operating accounts; however, these cash balances could be negatively impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. To date, the Company has experienced no loss or lack of access to cash in its operating accounts. |
Goodwill | Goodwill In accordance with the provisions of ASC 350, Intangibles, Goodwill and Other , goodwill is tested for impairment on an annual basis, or more frequently if events or circumstances indicate that goodwill may be impaired. The impairment test is performed at the reporting unit level, and an impairment loss is recognized to the extent that the carrying amount of goodwill exceeds the fair value. The Company has determined that we have six reporting segments, as discussed in Note 4, and will perform an annual goodwill impairment analysis during the fourth quarter of each fiscal year. |
Intangible Assets | Intangible Assets Recorded intangible assets primarily relate to brand names of acquired entities, construction management contracts, homes in backlog, and joint venture management fee contracts recorded in conjunction with FASB ASC Topic 805, Business Combinations ("ASC 805"). All intangible assets with the exception of those relating to brand names were valued based on expected cash flows related to home closings, and the asset is amortized on a per unit basis, as homes under the contracts close. Our brand name intangible assets are deemed to have an indefinite useful life. |
Income per common share | Income per common share The Company computes income per common share in accordance with FASB ASC Topic 260, Earnings per Share , which requires income per common share for each class of stock to be calculated using the two-class method. The two-class method is an allocation of income between the holders of common stock and a company’s participating security holders. Basic income per common share is computed by dividing income or loss available to common stockholders by the weighted average number of shares of common stock outstanding. For purposes of determining diluted income per common share, basic income per common share is further adjusted to include the effect of potential dilutive common shares outstanding. |
Income Taxes | Income Taxes Income taxes are accounted for under the provisions of Financial Accounting Standards Board ASC 740 , Income Taxes, using an asset and liability approach. Deferred income taxes reflect the net effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and operating loss and tax credit carryforwards measured by applying currently enacted tax laws. A valuation allowance would be provided to reduce net deferred tax assets if it were determined that it is more likely than not to be realized. ASC 740 prescribes a recognition threshold and a measurement criterion for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be considered “more-likely-than-not” to be sustained upon examination by taxing authorities. In addition, the Company has elected to recognize interest and penalties related to uncertain tax positions in the income tax provision. |
Comprehensive Income or Loss | Comprehensive Income or Loss The Company had no other transactions or activity, other than net income or loss, that would be considered as part of comprehensive income or loss. |
Impact of Recent Accounting Pronouncements | Impact of Recent Accounting Pronouncements Effective January 1, 2017, the Company adopted Accounting Standards Update ("ASU") No. 2016-09, “ Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ” (“ASU 2016-09”), which simplified several aspects for the accounting for share-based payment transactions, including the income tax consequences and classification on the statement of cash flows. The Company did not have any previously unrecognized excess tax benefits. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements or notes to its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, " Revenue from Contracts with Customers (“ASU 2014-09”), which clarifies existing accounting literature relating to how and when revenue is recognized by an entity. ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets and supersedes the revenue recognition requirements in Topic 605, Revenue Recognition , and most industry-specific guidance. ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts . The Company has evaluated the impact of adopting the new standard and determined that there will not be a significant impact to its current revenue recognition patterns. The adoption of ASU 2014-09 will primarily have an impact on our accounting policies related to the Company's accounting for certain capitalized marketing costs currently recorded in Real estate inventories. With the adoption of ASU 2014-09, the Company will no longer record certain costs related to model homes and sales offices within Real estate inventories, and will instead record them as property plant and equipment. The amortization of these costs will be the same under ASU 2014-09 as under current generally accepted accounting principles, resulting in no adjustment to the the Company's retained earnings upon adoption. ASU 2014-09 is effective for public companies for interim and annual reporting periods beginning after December 15, 2017. The Company has adopted the guidance effective January 1, 2018 using a cumulative effect transition method. As a result of the Company's analysis, it will not record an adjustment to retained earnings on January 1, 2018. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). ASU 2016-15 provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. ASU 2016-15 is effective for annual and interim periods in fiscal years beginning after December 15, 2017. Early adoption is permitted. The Company does not anticipate that the adoption of ASU 2016-15 will have a material impact on its consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force)" (“ASU 2016-18”). ASU 2016-18 requires restricted cash to be included with cash and cash equivalents when reconciling the beginning and ending amounts on the statement of cash flows. ASU 2016-18 is effective for annual and interim periods in fiscal years beginning after December 15, 2017. Early adoption is permitted. The Company does not anticipate that the adoption of ASU 2016-18 will have a material impact on its consolidated financial statements. Change in Accounting Principle During the second quarter ended June 30, 2017, the Company adopted the provisions of Accounting Standards Update ("ASU") No. 2016-02, " Leases (Topic 842) " ("ASU 2016-02"), which amends the existing standards for lease accounting, requiring lessees to recognize most leases on their balance sheets and disclose key information about leasing arrangements. The new standard establishes a right-of-use ("ROU") model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. Effective April 1, 2017, the Company adopted the new standard with a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The adoption is accounted for as a change in accounting principle in conformity with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 250, “ Accounting Changes and Error Corrections ”. As a result of the adoption, the most significant changes related to (1) the recognition of new ROU assets and lease liabilities on the balance sheet for office, real estate and equipment operating leases; and (2) the derecognition of previous assets and liabilities for a sale-leaseback transaction that did not qualify for sale accounting under the previous standards. The Company elected all of the standard's available practical expedients on adoption, including the package of practical expedients and use of hindsight expedient. |
Reclassifications | Reclassifications Certain balances on the financial statements and certain amounts presented in the notes have been reclassified in order to conform to current year presentation. |
Basis of Presentation and Sig26
Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Changes in Warranty Liability | Changes in the Company’s warranty liability for the years ended December 31, 2017 , 2016 , and 2015 are as follows (in thousands): Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Warranty liability, beginning of period $ 14,173 $ 18,117 $ 18,155 Warranty provision during period 9,822 8,237 7,423 Warranty payments, net of insurance recoveries during period (10,497 ) (12,334 ) (8,555 ) Warranty charges related to construction services projects 145 153 1,094 Warranty liability, end of period $ 13,643 $ 14,173 $ 18,117 |
Summary of Interest Activity | Interest activity for the years ended December 31, 2017 , 2016 , and 2015 are as follows (in thousands): Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Interest incurred $ 73,729 $ 83,218 $ 76,221 Less: Interest capitalized (73,729 ) (83,218 ) (76,221 ) Interest expense, net of amounts capitalized $ — $ — $ — Cash paid for interest $ 62,679 $ 79,734 $ 72,254 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The balance sheet as of December 31, 2016 was adjusted using the modified retrospective transition approach which resulted in the following adjusted balances (in thousands): December 31, Lease adoption adjustments December 31, (as adjusted) Lease right-of-use assets — $ 13,129 $ 13,129 Total assets 1,998,151 13,129 2,011,280 Accrued expenses 79,790 13,129 92,919 Total liabilities and equity 1,998,151 13,129 2,011,280 |
Investments in Unconsolidated27
Investments in Unconsolidated Joint Ventures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Unaudited Financials for Unconsolidated Joint Ventures | The table set forth below has been derived from the summarized financial information of our unconsolidated mortgage joint ventures and summarizes their combined statements of operations that we accounted for under the equity method (in thousands): Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Revenues $ 20,003 $ 21,156 $ 12,314 Cost of sales (11,913 ) (10,407 ) (5,842 ) Income of unconsolidated joint ventures $ 8,090 $ 10,749 $ 6,472 The table set forth below has been derived from the summarized financial information of our unconsolidated mortgage joint ventures and summarizes their combined balance sheets that we accounted for under the equity method (in thousands): December 31, 2017 2016 Assets Cash $ 12,802 $ 10,208 Loans held for sale 17,106 18,791 Accounts receivable 2,791 764 Other assets 128 56 Total Assets $ 32,827 $ 29,819 Liabilities and Equity Accounts payable $ 779 $ 694 Accrued expenses 1,532 1,026 Credit lines payable 18,312 17,748 Other liabilities 31 17 Members equity 12,173 10,334 Total Liabilities and Equity $ 32,827 $ 29,819 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Summary of Segment Financial Information Relating to Operations | Segment financial information relating to the Company’s operations was as follows (in thousands): Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Operating revenue: California (1) $ 682,896 $ 494,189 $ 401,934 Arizona 158,534 125,951 69,510 Nevada 176,354 191,711 130,845 Colorado 124,456 128,530 107,014 Washington 333,667 154,600 181,258 Oregon 320,621 311,059 213,491 Total operating revenue $ 1,796,528 $ 1,406,040 $ 1,104,052 (1) Operating revenue in the California segment includes construction services revenue. Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Income before provision from income taxes: California $ 88,422 $ 47,692 $ 46,752 Arizona 14,832 12,004 5,743 Nevada 15,672 19,182 13,022 Colorado 7,156 6,978 3,291 Washington 30,008 9,528 18,652 Oregon 35,862 41,617 24,787 Corporate (49,440 ) (34,184 ) (25,180 ) Income before extinguishment of debt $ 142,512 $ 102,817 $ 87,067 Corporate - Loss on extinguishment of debt (21,828 ) — — Income before provision for income taxes $ 120,684 $ 102,817 $ 87,067 |
Schedule of Homebuilding Assets | December 31, December 31, 2017 2016 Total assets: California $ 631,649 $ 716,955 Arizona 170,634 191,581 Nevada 211,202 189,248 Colorado 149,183 124,580 Washington 286,442 343,973 Oregon 288,981 238,766 Corporate (1) 323,013 206,177 Total assets $ 2,061,104 $ 2,011,280 (1) Comprised primarily of cash and cash equivalents, receivables, deferred income taxes, and other assets. |
Real Estate Inventories (Tables
Real Estate Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Summary of Real Estate Inventories | Real estate inventories consist of the following (in thousands): December 31, 2017 2016 Real estate inventories: Land deposits $ 51,833 $ 50,429 Land and land under development 904,410 1,069,001 Homes completed and under construction 646,198 545,310 Model homes 97,409 107,258 Total $ 1,699,850 $ 1,771,998 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill by Operating Segment | Goodwill by operating segment as of December 31, 2017 and 2016 is as follows (in thousands): December 31, 2017 2016 California $ 6,801 $ 6,801 Arizona 5,951 5,951 Nevada 1,457 1,457 Colorado — — Washington 31,200 31,200 Oregon 21,493 21,493 Total $ 66,902 $ 66,902 |
Intangibles (Tables)
Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Carrying Value and Accumulated Amortization of Intangible Assets | The carrying value and accumulated amortization of intangible assets at December 31, 2017 and December 31, 2016 , by major intangible asset category, is as follows (in thousands): December 31, 2017 December 31, 2016 Carrying Value Accumulated Amortization Net Carrying Amount Carrying Value Accumulated Amortization Net Carrying Amount Brand Name - Polygon Northwest Homes $ 6,700 $ — $ 6,700 $ 6,700 $ — $ 6,700 |
Senior Notes, Secured, and Su32
Senior Notes, Secured, and Subordinated Indebtedness (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Senior Notes, Secured, and Subordinated Indebtedness | The Company's senior notes, secured, and subordinated indebtedness consists of the following (in thousands): December 31, 2017 2016 Notes payable: Revolving credit facility $ — $ 29,000 Seller financing 589 24,692 Joint venture notes payable 93,926 102,076 Total notes payable $ 94,515 $ 155,768 Subordinated amortizing notes — 7,225 Senior notes 5 3 / 4 % Senior Notes due April 15, 2019 $ 149,362 $ 148,826 8 1 / 2 % Senior Notes due November 15, 2020 — 422,817 7% Senior Notes due August 15, 2022 346,740 346,014 5 7 / 8 % Senior Notes due January 31, 2025 439,567 — Total Debt $ 1,030,184 $ 1,080,650 |
Schedule of Maturities of Notes Payable, Senior Unsecured Credit Facility, Subordinated Amortizing Notes and Senior Notes | The maturities of the Company's Notes payable, 5 3 / 4 % Senior Notes, 7% Senior Notes, and 5 7 / 8 % Senior Notes are as follows as of December 31, 2017 (in thousands): Year Ended December 31, 2018 $ 32,213 2019 178,866 2020 — 2021 33,436 2022 350,000 Thereafter 450,000 $ 1,044,515 |
Schedule of Joint Venture Notes Payable | The issuance date, facility size, maturity date and interest rate are listed in the table below as of December 31, 2017 (in millions): Issuance Date Facility Size Outstanding Maturity Current Rate March, 2016 $ 33.4 $ 13.8 (4) September, 2018 4.47 % (1) January, 2016 35.0 28.9 February, 2019 4.82 % (2) November, 2015 42.5 15.7 (4) May, 2018 5.50 % (1) November, 2014 7.0 2.1 (4) February, 2018 5.00 % (3) March, 2014 26.0 — (6) April, 2018 4.53 % (1) July, 2017 66.2 33.4 February, 2021 4.51 % (5) $ 210.1 $ 93.9 (1) Loan bears interest at the Company's option of either LIBOR +3.0% or the prime rate +1.0% . (2) Loan bears interest at LIBOR +3.25% . (3) Loan bears interest at the prime rate +0.5% . (4) The Company anticipates paying the borrowings in full upon the maturity date from proceeds from homes closed in the respective project. (5) Loan bears interest at the greatest of the prime rate, federal funds effective rate +1.0% , or LIBOR +1.0% . (6) The balance on this borrowing was paid in full prior to the maturity date, along with all accrued interest to date. |
Summary of Senior Notes Redemption Prices Percentage | On or after August 15, 2017 , California Lyon may redeem all or a portion of the 7.00% Notes upon not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed as percentages of the principal amount) set forth below plus accrued and unpaid interest to the applicable redemption date, if redeemed during the period beginning on each of the dates indicated below: Year Percentage August 15, 2017 103.500 % August 15, 2018 101.750 % August 15, 2019 and thereafter 100.000 % On or after April 15, 2016 , California Lyon may redeem all or a portion of the 5.75% Notes upon not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed as percentages of the principal amount) set forth below plus accrued and unpaid interest to the applicable redemption date, if redeemed during the period beginning on each of the dates indicated below: Year Percentage April 15, 2016 104.313 % October 15, 2016 102.875 % April 15, 2017 101.438 % April 15, 2018 and thereafter 100.000 % On or after January 31, 2020, California Lyon may redeem all or a portion of the 5.875% Notes upon not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed as percentages of principal amount), set forth below plus accrued and unpaid interest to the redemption date, if redeemed during the 12-month period commencing on each of the dates indicated below: Year Percentage January 31, 2020 102.938 % January 31, 2021 101.469 % January 31, 2022 100.734 % January 31, 2023 and thereafter 100.000 % |
Consolidating Balance Sheet | CONSOLIDATING BALANCE SHEET December 31, 2017 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company ASSETS Cash and cash equivalents $ — $ 171,434 $ 156 $ 11,120 $ — $ 182,710 Receivables — 4,647 2,252 3,324 — 10,223 Escrow proceeds receivable — 1,594 1,725 — — 3,319 Real estate inventories — 831,007 630,384 238,459 — 1,699,850 Investment in unconsolidated joint ventures — 7,717 150 — — 7,867 Goodwill — 14,209 52,693 — — 66,902 Intangibles, net — — 6,700 — — 6,700 Deferred income taxes, net — 47,915 — — — 47,915 Lease right-of-use assets — 14,454 — — — 14,454 Other assets, net — 18,167 2,504 493 — 21,164 Investments in subsidiaries 780,472 (16,544 ) (494,201 ) — (269,727 ) — Intercompany receivables — — 269,831 — (269,831 ) — Total assets $ 780,472 $ 1,094,600 $ 472,194 $ 253,396 $ (539,558 ) $ 2,061,104 LIABILITIES AND EQUITY Accounts payable $ — $ 40,075 $ 13,007 $ 5,717 $ — $ 58,799 Accrued expenses — 108,407 2,988 96 — 111,491 Notes payable — 589 — 93,926 — 94,515 5 3 / 4 % Senior Notes — 149,362 — — — 149,362 7% Senior Notes — 346,740 — — — 346,740 5 7 / 8 % Senior Notes — 439,567 — — — 439,567 Intercompany payables — 179,788 — 90,043 (269,831 ) — Total liabilities — 1,264,528 15,995 189,782 (269,831 ) 1,200,474 Equity William Lyon Homes stockholders’ equity 780,472 (169,928 ) 456,199 (16,544 ) (269,727 ) 780,472 Noncontrolling interests — — — 80,158 — 80,158 Total liabilities and equity $ 780,472 $ 1,094,600 $ 472,194 $ 253,396 $ (539,558 ) $ 2,061,104 CONSOLIDATING BALANCE SHEET December 31, 2016 (as adjusted) (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company ASSETS Cash and cash equivalents $ — $ 36,204 $ 272 $ 6,136 $ — $ 42,612 Receivables — 2,989 3,303 3,246 — 9,538 Escrow proceeds receivable — 85 — — — 85 Real estate inventories — 910,594 645,341 216,063 — 1,771,998 Investment in unconsolidated joint ventures — 7,132 150 — — 7,282 Goodwill — 14,209 52,693 — — 66,902 Intangibles, net — — 6,700 — — 6,700 Deferred income taxes, net — 75,751 — — — 75,751 Lease right-of-use assets — 13,129 — — — 13,129 Other assets, net — 15,779 1,089 415 — 17,283 Investments in subsidiaries 697,086 (23,736 ) (573,650 ) — (99,700 ) — Intercompany receivables — — 252,860 — (252,860 ) — Total assets $ 697,086 $ 1,052,136 $ 388,758 $ 225,860 $ (352,560 ) $ 2,011,280 LIABILITIES AND EQUITY Accounts payable $ — $ 52,380 $ 16,416 $ 5,486 $ — $ 74,282 Accrued expenses — 88,187 4,634 98 — 92,919 Notes payable — 50,713 2,979 102,076 — 155,768 Subordinated Amortizing Notes — 7,225 — — — 7,225 5 3 / 4 % Senior Notes — 148,826 — — — 148,826 8 1 / 2 % Senior Notes — 422,817 — — — 422,817 7% Senior Notes — 346,014 — — — 346,014 Intercompany payables — 177,267 — 75,593 (252,860 ) — Total liabilities — 1,293,429 24,029 183,253 (252,860 ) 1,247,851 Equity William Lyon Homes stockholders’ equity 697,086 (241,291 ) 364,727 (23,736 ) (99,700 ) 697,086 Noncontrolling interests — — — 66,343 — 66,343 Total liabilities and equity $ 697,086 $ 1,052,138 $ 388,756 $ 225,860 $ (352,560 ) $ 2,011,280 |
Consolidating Statement of Operations | CONSOLIDATING STATEMENT OF OPERATIONS Year Ended December 31, 2017 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company Operating revenue Sales $ — $ 748,396 $ 844,611 $ 202,067 $ — $ 1,795,074 Construction services — 1,454 — — — 1,454 Management fees — (5,741 ) — — 5,741 — — 744,109 844,611 202,067 5,741 1,796,528 Operating costs Cost of sales — (596,970 ) (700,878 ) (174,960 ) (5,741 ) (1,478,549 ) Construction services — (1,317 ) — — — (1,317 ) Sales and marketing — (30,637 ) (44,849 ) (10,740 ) — (86,226 ) General and administrative — (73,748 ) (16,457 ) (1 ) — (90,206 ) Other — (2,560 ) 308 (22 ) — (2,274 ) — (705,232 ) (761,876 ) (185,723 ) (5,741 ) (1,658,572 ) Income (loss) from subsidiaries 48,135 20,382 — — (68,517 ) — Operating income 48,135 59,259 82,735 16,344 (68,517 ) 137,956 Equity in income of unconsolidated joint ventures — 2,135 1,526 — — 3,661 Other income (expense), net — 2,029 264 (1,398 ) — 895 Income (loss) before loss on extinguishment of debt 48,135 63,423 84,525 14,946 (68,517 ) 142,512 Loss on extinguishment of debt — (21,828 ) — — — (21,828 ) Income (loss) before provision for income taxes 48,135 41,595 84,525 14,946 (68,517 ) 120,684 Provision for income taxes (62,933 ) — — — (62,933 ) Net income (loss) 48,135 (21,338 ) 84,525 14,946 (68,517 ) 57,751 Less: Net income attributable to noncontrolling interests — — — (9,616 ) — (9,616 ) Net income (loss) available to common stockholders $ 48,135 $ (21,338 ) $ 84,525 $ 5,330 $ (68,517 ) $ 48,135 CONSOLIDATING STATEMENT OF OPERATIONS Year Ended December 31, 2016 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company Operating revenue Sales $ — $ 573,191 $ 680,138 $ 148,874 $ — $ 1,402,203 Construction services — 3,837 — — — 3,837 Management fees — (4,362 ) — — 4,362 — — 572,666 680,138 148,874 4,362 1,406,040 Operating costs Cost of sales — (462,153 ) (564,596 ) (131,226 ) (4,362 ) (1,162,337 ) Construction services — (3,485 ) — — — (3,485 ) Sales and marketing — (27,329 ) (36,170 ) (9,010 ) — (72,509 ) General and administrative — (60,141 ) (13,256 ) (1 ) — (73,398 ) Other — (442 ) 100 (1 ) — (343 ) — (553,550 ) (613,922 ) (140,238 ) (4,362 ) (1,312,072 ) Income (loss) from subsidiaries 59,696 8,331 — — (68,027 ) — Operating income 59,696 27,447 66,216 8,636 (68,027 ) 93,968 Equity in income of unconsolidated joint ventures — 4,369 1,237 — — 5,606 Other income (expense), net — 4,640 (34 ) (1,363 ) — 3,243 Income (loss) before provision for income taxes 59,696 36,456 67,419 7,273 (68,027 ) 102,817 Provision for income taxes — (34,850 ) — — — (34,850 ) Net income (loss) 59,696 1,606 67,419 7,273 (68,027 ) 67,967 Less: Net income attributable to noncontrolling interests — — — (8,271 ) — (8,271 ) Net income (loss) available to common stockholders $ 59,696 $ 1,606 $ 67,419 $ (998 ) $ (68,027 ) $ 59,696 CONSOLIDATING STATEMENT OF OPERATIONS Year Ended December 31, 2015 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company Operating revenue Sales $ — $ 459,990 $ 568,774 $ 50,164 $ — $ 1,078,928 Construction services — 25,124 — — — 25,124 Management fees — (1,506 ) — — 1,506 — — 483,608 568,774 50,164 1,506 1,104,052 Operating costs Cost of sales — (358,793 ) (475,043 ) (43,653 ) (1,506 ) (878,995 ) Construction services — (21,181 ) — — — (21,181 ) Sales and marketing — (26,626 ) (31,231 ) (3,682 ) — (61,539 ) General and administrative — (47,385 ) (11,776 ) — — (59,161 ) Amortization of intangible assets — (957 ) — — — (957 ) Other — (3,477 ) 1,505 — — (1,972 ) — (458,419 ) (516,545 ) (47,335 ) (1,506 ) (1,023,805 ) Income (loss) from subsidiaries 57,336 (2,395 ) — — (54,941 ) — Operating income 57,336 22,794 52,229 2,829 (54,941 ) 80,247 Income from unconsolidated joint ventures — 1,912 1,327 — — 3,239 Other income (expense), net — 7,911 4,793 (9,123 ) — 3,581 Income before provision for income taxes 57,336 32,617 58,349 (6,294 ) (54,941 ) 87,067 Provision for income taxes — (26,806 ) — — — (26,806 ) Net income 57,336 5,811 58,349 (6,294 ) (54,941 ) 60,261 Less: Net income attributable to noncontrolling interests — — — (2,925 ) — (2,925 ) Net income available to common stockholders $ 57,336 $ 5,811 $ 58,349 $ (9,219 ) $ (54,941 ) $ 57,336 |
Consolidating Statement of Cash Flows | Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company Operating activities Net cash (used in) provided by operating activities $ (35,251 ) $ 84,840 $ 89,914 $ (7,300 ) $ 35,251 $ 167,454 Investing activities Purchases of property and equipment — (3,668 ) (555 ) (77 ) — (4,300 ) Investments in subsidiaries — 13,190 (79,449 ) — 66,259 — Net cash provided by (used in) investing activities — 9,522 (80,004 ) (77 ) 66,259 (4,300 ) Financing activities Proceeds from borrowings on notes payable — — — 134,061 — 134,061 Principal payments on notes payable — — — (142,211 ) — (142,211 ) Redemption premium of 8.5% Senior Notes — (19,645 ) — — — (19,645 ) Principal payments of 8.5% Senior Notes — (425,000 ) — — — (425,000 ) Proceeds from issuance of 5.875% Senior Notes — 446,468 — — — 446,468 Proceeds from borrowings on revolver — 346,121 — — — 346,121 Payments on revolver — (375,121 ) — — — (375,121 ) Principal payments on subordinated amortizing notes — (7,225 ) — — — (7,225 ) Proceeds from issuance of Class B Shares — 29,908 — — — 29,908 Costs related to settlement of TEUs — (63 ) — — — (63 ) Shares remitted to, or withheld by the Company for employee tax withholding — (1,544 ) — — — (1,544 ) Payments to repurchase common stock — (3,112 ) — — — (3,112 ) Payment of deferred loan costs — (9,892 ) — — — (9,892 ) Cash contributions from members of consolidated entities — — — 66,712 — 66,712 Cash distributions to members of consolidated entities — — — (62,513 ) — (62,513 ) Advances to affiliates — — 6,947 1,862 (8,809 ) — Intercompany receivables/payables 35,251 59,973 (16,973 ) 14,450 (92,701 ) — Net cash provided by (used in) financing activities 35,251 40,868 (10,026 ) 12,361 (101,510 ) (23,056 ) Net increase (decrease) in cash and cash equivalents — 135,230 (116 ) 4,984 — 140,098 Cash and cash equivalents at beginning of period — 36,204 272 6,136 — 42,612 Cash and cash equivalents at end of period $ — $ 171,434 $ 156 $ 11,120 $ — $ 182,710 CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2016 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company Operating activities Net cash (used in) provided by operating activities $ (5,295 ) $ 64,780 $ (778 ) $ (42,296 ) $ 5,295 $ 21,706 Investing activities Proceeds from repayment of notes receivable — 6,188 — — — 6,188 Purchases of property and equipment — (1,004 ) 85 (110 ) — (1,029 ) Investments in subsidiaries — (2,455 ) 12,104 — (9,649 ) — Net cash provided by (used in) investing activities — 2,729 12,189 (110 ) (9,649 ) 5,159 Financing activities Proceeds from borrowings on notes payable — 2,211 — 137,572 — 139,783 Principal payments on notes payable — (18,125 ) — (129,762 ) — (147,887 ) Proceeds from borrowings on revolver — 258,000 — — — 258,000 Payments on revolver — (294,000 ) — — — (294,000 ) Principal payments on Subordinated amortizing notes — (6,841 ) — — — (6,841 ) Purchase of common stock — (942 ) — — — (942 ) Excess income tax benefit from stock based awards — (182 ) — — — (182 ) Payments of deferred loan costs — (1,085 ) — — — (1,085 ) Noncontrolling interest contributions — — — 38,334 — 38,334 Noncontrolling interest distributions — — — (19,636 ) — (19,636 ) Advances to affiliates — — (252 ) 11,784 (11,532 ) — Intercompany receivables/payables 5,295 (14,672 ) (13,611 ) 7,102 15,886 — Net cash provided by (used in) financing activities 5,295 (75,636 ) (13,863 ) 45,394 4,354 (34,456 ) Net (decrease) increase in cash and cash equivalents — (8,127 ) (2,452 ) 2,988 — (7,591 ) Cash and cash equivalents at beginning of period — 44,331 2,724 3,148 — 50,203 Cash and cash equivalents at end of period $ — $ 36,204 $ 272 $ 6,136 $ — $ 42,612 CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2015 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company Operating activities Net cash (used in) provided by operating activities $ (4,844 ) $ (123,099 ) $ 26,398 $ (76,207 ) $ 4,844 $ (172,908 ) Investing activities Investment in and advances to joint ventures — (1,000 ) — — — (1,000 ) Purchases of property and equipment — (4,918 ) 89 29 — (4,800 ) Investments in subsidiaries — (3,833 ) (12,584 ) — 16,417 — Net cash (used in) provided by investing activities — (9,751 ) (12,495 ) 29 16,417 (5,800 ) Financing activities Proceeds from borrowings on notes payable — 34,955 — 84,708 — 119,663 Principal payments on notes payable — (28,924 ) (162 ) (29,131 ) — (58,217 ) Proceeds from issuance of 7 % Senior Notes — 51,000 — — — 51,000 Proceeds from borrowings on revolver — 229,000 — — — 229,000 Payments on revolver — (164,000 ) — — — (164,000 ) Principal payments on Subordinated amortizing notes — (6,651 ) — — — (6,651 ) Proceeds from stock options exercised — 106 — — — 106 Purchase of common stock — (1,832 ) — — — (1,832 ) Payments of deferred loan costs — (2,147 ) — — — (2,147 ) Noncontrolling interest contributions — — — 19,850 — 19,850 Noncontrolling interest distributions — — — (10,632 ) — (10,632 ) Advances to affiliates — — (5,237 ) 10,658 (5,421 ) — Intercompany receivables/payables 4,844 17,212 (6,353 ) 137 (15,840 ) — Net cash provided by (used in) financing activities 4,844 128,719 (11,752 ) 75,590 (21,261 ) 176,140 Net (decrease) increase in cash and cash equivalents — (4,131 ) 2,151 (588 ) — (2,568 ) Cash and cash equivalents at beginning of period — 48,462 573 3,736 — 52,771 Cash and cash equivalents at end of period $ — $ 44,331 $ 2,724 $ 3,148 $ — $ 50,203 |
Fair Value of Financial Instr33
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Estimated Fair Values of Financial Instruments | The estimated fair values of financial instruments are as follows (in thousands): December 31, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Financial liabilities: Notes payable $ 94,515 $ 94,515 $ 155,768 $ 155,768 Subordinated amortizing notes — — 7,225 7,478 5 3 / 4 % Senior Notes due 2019 149,362 151,500 148,826 151,125 8 1 / 2 % Senior Notes due 2020 — — 422,817 444,125 7% Senior Notes due 2022 346,740 362,250 346,014 363,125 5 7 / 8 % Senior Notes due 2025 439,567 459,000 — — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Summary of (Provision) Benefit from Income Taxes | The following summarizes the provision from income taxes (in thousands): Year Ended December 31, Year Ended December 31, Year Ended December 31, 2017 2016 2015 Current Federal $ (25,974 ) $ (26,978 ) $ (15,296 ) State (9,122 ) (4,077 ) (3,350 ) Deferred Federal (26,663 ) (1,395 ) (5,259 ) State (1,174 ) (2,400 ) (2,901 ) $ (62,933 ) $ (34,850 ) $ (26,806 ) |
Schedule of Difference in Income Taxes from Amounts Computed by Applying Federal Statutory Rates | Income taxes differ from the amounts computed by applying the applicable federal statutory rates due to the following (in thousands): Year Ended December 31, Year Ended December 31, Year Ended December 31, 2017 2016 2015 Provision for federal income taxes at the statutory rate $ (42,240 ) $ (35,986 ) $ (30,473 ) (Increases)/decreases in tax resulting from: Provision for state income taxes, net of federal income tax benefits (6,692 ) (4,210 ) (4,063 ) Rate adjustment - new tax reform legislation (23,126 ) — — Change in valuation allowance — — 1,626 Domestic production activities deduction 2,868 2,481 2,087 Nondeductible items-other (94 ) (58 ) (52 ) Non-controlling interests 3,366 2,895 1,024 Change in RBIL estimate — — 1,771 Tax credits (160 ) 166 1,272 Stock based compensation 281 27 — Other, net 2,864 (165 ) 2 $ (62,933 ) $ (34,850 ) $ (26,806 ) |
Summary of Temporary Differences Giving Rise to Deferred Income Taxes | Temporary differences giving rise to deferred income taxes consist of the following (in thousands): December 31, 2017 2016 Deferred tax assets Impairment and other reserves $ 33,883 $ 53,806 Compensation deductible for tax purposes when paid 5,093 9,161 AMT credit carryover 1,384 1,384 Unused recognized built-in loss 10,706 18,651 Net operating loss 3,488 3,172 Effect of book/tax differences for general and administrative 4,508 6,427 Other 806 694 59,868 93,295 Deferred tax liabilities Effect of book/tax differences for joint ventures (1,343 ) (2,706 ) Effect of book/tax differences for capitalized interest (6,478 ) (11,103 ) Fixed assets and intangibles (1,850 ) (1,716 ) Goodwill and other intangibles (1,998 ) (1,541 ) Other (284 ) (478 ) (11,953 ) (17,544 ) Total deferred tax assets, net $ 47,915 $ 75,751 |
Income Per Common Share (Tables
Income Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted (Loss) Income Per Common Share | Basic and diluted income per common share for the years ended December 31, 2017 , 2016 , and 2015 were calculated as follows (in thousands, except number of shares and per share amounts): Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Basic weighted average number of shares outstanding (1) 37,040,137 36,764,799 36,546,227 Effect of dilutive securities: Preferred shares, stock options, and warrants 1,623,530 815,171 1,326,399 Tangible Equity Units — 894,930 894,930 Diluted average shares outstanding 38,663,667 38,474,900 38,767,556 Net income available to common stockholders $ 48,135 $ 59,696 $ 57,336 Basic income per common share $ 1.30 $ 1.62 $ 1.57 Dilutive income per common share $ 1.24 $ 1.55 $ 1.48 Potentially antidilutive securities not included in the calculation of diluted income per common share (weighted average): Unvested stock options 240,000 240,000 180,000 (1) For the year ended December 31, 2017 , basic weighted average number of shares outstanding includes 5,113,475 shares of the Company’s Tangible Equity Units, of which 670,811 and 4,442,664 were settled and issued on November 27, 2017 and December 1, 2017, respectively. For the years ended December 31, 2016 and December 31, 2015 , basic weighted average number of shares outstanding included the minimum number of shares that were issuable under the Company’s Tangible Equity Units. As these periods were prior to the settlement of the TEUs, these calculations assumed 5,113,475 shares included from the respective issue dates of the Company’s Tangible Equity Units. See Note 8. |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Weighted-Average Assumptions for Fair Value of Employee Options Granted | The fair value of each employee option awarded was estimated on the grant date using the Black-Scholes option-pricing model with the following weighted-average assumptions. Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Expected dividend yield N/A N/A — Risk-free interest rate N/A N/A 1.71% Expected volatility N/A N/A 44% Expected life (in years) N/A N/A 6.75 |
Summary of Stock Option Activity | Stock option activity under the Plan for the years ended December 31, 2017 , 2016 , and 2015 was as follows: Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Options Weighted Average Exercise Price Options Weighted Average Exercise Price Options Weighted Options outstanding at beginning of year 596,313 $ 15.57 611,313 $ 15.40 419,238 $ 8.66 Granted (1) — N/A — N/A 240,000 $ 25.82 Exercised (3,535 ) $ 8.66 (15,000 ) $ 8.66 (47,925 ) $ 8.66 Canceled — N/A — N/A — N/A Options outstanding at end of year 592,778 $ 15.61 596,313 $ 15.57 611,313 $ 15.40 Options vested and expected to vest 592,778 $ 15.61 596,313 $ 15.57 611,313 $ 15.40 Options exercisable at end of year (2) 352,778 $ 8.66 356,313 $ 8.66 371,313 $ 8.66 Price range of options exercised $ 8.66 $ 8.66 $ 8.66 Price range of options outstanding $8.66-$25.82 $8.66-$25.82 $8.66-$25.82 (1) The weighted average grant date fair value of the stock options during December 31, 2015 was $12.01 . (2) No options vested during the years ended December 31, 2017 , 2016 or 2015 . |
Summary of Stock Options Outstanding and Exercisable | The following table summarizes information about stock options granted to executives, directors, and non-executives that are outstanding and exercisable at December 31, 2017 : Outstanding Exercisable Exercise Price Number of Shares Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Number of Shares $ 8.66 352,778 4.75 $ 7,203,727 352,778 |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Restricted Shares Activity | During the years ended December 31, 2017 , 2016 , and 2015 , the Company had the following activity relating to grants of time-based restricted common stock: Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Number of Shares Weighted Avg Grant Date Fair Value Number of Shares Weighted Avg Grant Date Fair Value Number of Weighted Avg Grant Date Fair Value Non-vested shares at beginning of year 346,924 $ 16.91 225,687 $ 23.65 79,335 $ 24.84 Granted 259,677 18.14 291,368 14.14 208,715 23.11 Vested (181,812 ) 17.62 (126,073 ) 21.81 (55,571 ) 23.24 Canceled (1) (5,494 ) 16.23 (44,058 ) 19.06 (6,792 ) 24.28 Non-vested shares at end of year 419,295 $ 17.38 346,924 $ 16.91 225,687 $ 23.65 (1) Represents shares that were canceled as result of terminations of employment. |
Performance-Based Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Restricted Shares Activity | During the years ended December 31, 2017 , 2016 , and 2015 the Company had the following activity relating to grants of performance based restricted common stock: Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Number of Shares Weighted Avg Grant Date Fair Value Number of Weighted Avg Grant Date Fair Value Number of Weighted Avg Grant Date Fair Value Non-vested shares at beginning of year 655,133 $ 17.81 480,757 $ 24.18 506,846 $ 23.84 Granted 553,909 18.00 566,092 13.88 284,809 23.50 Vested (147,477 ) 21.49 (190,977 ) 20.58 (154,467 ) 19.58 Canceled (1) (349,000 ) 19.55 (200,739 ) 23.38 (156,431 ) 28.86 Non-vested shares at end of year 712,565 $ 17.01 655,133 $ 17.81 480,757 $ 24.18 (1) Represents shares that were canceled as a result of achievement of performance targets as outlined in the respective grant agreement at below the maximum levels, as well as a result of terminations of employment. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease, Cost | Lease cost, as included in general and administrative expense in our consolidated statements of operations for the respective periods, and additional information regarding lease terms are as follows (dollars in thousands): Year Ended December 31, 2017 Year Ended December 31, 2016 Lease cost Operating lease cost $ 6,835 $ 3,890 Sublease income (117 ) (117 ) Total lease cost $ 6,718 $ 3,773 Other information Cash paid for amounts included in the measurement of lease liabilities for operating leases: Operating cash flows $ 5,551 $ 3,270 Right-of-use assets obtained in exchange for new operating lease liabilities $ 5,925 $ 1,353 Weighted-average discount rate 6.6 % 6.6 % December 31, 2017 December 31, 2016 Weighted-average remaining lease term (in years) 3.58 5.16 |
Schedule of Future Minimum Payments Under Non-Cancelable Operating Leases | The table below shows the future minimum payments under non-cancelable operating leases at December 31, 2017 (in thousands). Year Ending December 31, 2018 $ 6,998 2019 3,989 2020 2,635 2021 2,398 2022 1,342 Thereafter 440 Total $ 17,802 |
Unaudited Summarized Quarterl38
Unaudited Summarized Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summarized Unaudited Quarterly Financial Information | Summarized unaudited quarterly financial information for the years ended December 31, 2017 and 2016 is as follows (in thousands except per share data): Three Months Ended March 31, June 30, September 30, December 31, Home sales $ 258,854 $ 422,633 $ 490,304 $ 623,283 Cost of sales (218,455 ) (353,057 ) (401,700 ) (505,337 ) Gross profit 40,399 69,576 88,604 117,946 Other income, costs and expenses, net (49,695 ) (49,325 ) (58,544 ) (101,210 ) Net (loss) income (9,296 ) 20,251 30,060 16,736 Net (loss) income available to common stockholders $ (10,000 ) $ 18,954 $ 27,418 $ 11,763 (Loss) Income per common share: Basic $ (0.27 ) $ 0.51 $ 0.74 $ 0.32 Diluted $ (0.27 ) $ 0.49 $ 0.71 $ 0.30 Three Months Ended March 31, June 30, September 30, December 31, Home sales $ 261,295 $ 325,059 $ 342,628 $ 473,221 Cost of sales (215,171 ) (268,638 ) (285,896 ) (392,632 ) Gross profit 46,124 56,421 56,732 80,589 Other income, costs and expenses, net (36,183 ) (41,335 ) (40,218 ) (54,163 ) Net income 9,941 15,086 16,514 26,426 Net income available to common stockholders $ 9,014 $ 14,561 $ 13,069 $ 23,052 Income per common share: Basic $ 0.25 $ 0.40 $ 0.36 $ 0.63 Diluted $ 0.24 $ 0.38 $ 0.34 $ 0.60 |
Basis of Presentation and Sig39
Basis of Presentation and Significant Accounting Policies - Narrative (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017USD ($)lot | Dec. 31, 2016USD ($)lot | Dec. 31, 2015USD ($)lot | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | |
Class of Stock [Line Items] | |||||
Number of land parcels sold | lot | 4 | 5 | 1 | ||
Gains on sales of land parcels | $ 0.8 | $ 3.6 | $ 0.8 | ||
Percentage of home sale price reserved | 1.00% | ||||
Additional construction fee compensation | $ 0.2 | $ 1.9 | |||
Operating lease liability | $ 15.6 | ||||
Minimum | |||||
Class of Stock [Line Items] | |||||
Percentage of revenue generated by contractual services | 3.00% | ||||
Maximum | |||||
Class of Stock [Line Items] | |||||
Percentage of revenue generated by contractual services | 5.00% | ||||
Scenario, Adjustment | |||||
Class of Stock [Line Items] | |||||
Operating lease liability | $ (19.8) |
Basis of Presentation and Sig40
Basis of Presentation and Significant Accounting Policies - Summary of Changes in Warranty Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Warranty liability, beginning of period | $ 14,173 | $ 18,117 | $ 18,155 |
Warranty provision during period | 9,822 | 8,237 | 7,423 |
Warranty payments, net of insurance recoveries during period | (10,497) | (12,334) | (8,555) |
Warranty charges related to construction services projects | 145 | 153 | 1,094 |
Warranty liability, end of period | $ 13,643 | $ 14,173 | $ 18,117 |
Basis of Presentation and Sig41
Basis of Presentation and Significant Accounting Policies - Summary of Interest Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Interest incurred | $ 73,729 | $ 83,218 | $ 76,221 |
Less: Interest capitalized | (73,729) | (83,218) | (76,221) |
Interest expense, net of amounts capitalized | 0 | 0 | 0 |
Cash paid for interest | $ 62,679 | $ 79,734 | $ 72,254 |
Basis of Presentation and Sig42
Basis of Presentation and Significant Accounting Policies - Balance Sheet Adjustment (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Lease right-of-use assets | $ 14,454 | $ 13,129 |
Total assets | 2,061,104 | 2,011,280 |
Accrued expenses | 111,491 | 92,919 |
Total liabilities and equity | $ 2,061,104 | 2,011,280 |
Previously reported | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Lease right-of-use assets | 0 | |
Total assets | 1,998,151 | |
Accrued expenses | 79,790 | |
Total liabilities and equity | 1,998,151 | |
Accounting Standards Update 2016-02 | Lease adoption adjustments | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Lease right-of-use assets | 13,129 | |
Total assets | 13,129 | |
Accrued expenses | 13,129 | |
Total liabilities and equity | $ 13,129 |
Variable Interest Entities an43
Variable Interest Entities and Noncontrolling Interests - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($)joint_venture | Dec. 31, 2016USD ($)joint_venture | |
Noncontrolling Interest [Line Items] | ||
Number of joint ventures | joint_venture | 13 | 11 |
Percentage of profits and cash flows receivable from joint ventures | 50.00% | |
Consolidated variable interest entities, assets | $ 219.6 | $ 204.8 |
Consolidated variable interest entities, liabilities | 99.4 | 107.3 |
Cash | ||
Noncontrolling Interest [Line Items] | ||
Consolidated variable interest entities, assets | 10.7 | 5.8 |
Real Estate | ||
Noncontrolling Interest [Line Items] | ||
Consolidated variable interest entities, assets | $ 230.8 | $ 200.7 |
Investments in Unconsolidated44
Investments in Unconsolidated Joint Ventures Investments in Unconsolidated Joint Ventures - Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||||||||||
Total operating revenue | $ 623,283 | $ 490,304 | $ 422,633 | $ 258,854 | $ 473,221 | $ 342,628 | $ 325,059 | $ 261,295 | $ 1,796,528 | $ 1,406,040 | $ 1,104,052 |
Cost of sales | (1,658,572) | (1,312,072) | (1,023,805) | ||||||||
Operating income | 137,956 | 93,968 | 80,247 | ||||||||
Other assets, net | 21,164 | 17,283 | 21,164 | 17,283 | |||||||
Total assets | 2,061,104 | 2,011,280 | 2,061,104 | 2,011,280 | |||||||
Accounts payable | 58,799 | 74,282 | 58,799 | 74,282 | |||||||
Accrued expenses | 111,491 | 92,919 | 111,491 | 92,919 | |||||||
Total liabilities and equity | 2,061,104 | 2,011,280 | 2,061,104 | 2,011,280 | |||||||
Equity in income of unconsolidated joint ventures | 3,661 | 5,606 | 3,239 | ||||||||
Joint Ventures | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Total operating revenue | 20,003 | 21,156 | 12,314 | ||||||||
Cost of sales | (11,913) | (10,407) | (5,842) | ||||||||
Operating income | 8,090 | 10,749 | $ 6,472 | ||||||||
Cash | 12,802 | 10,208 | 12,802 | 10,208 | |||||||
Loans held for sale | 17,106 | 18,791 | 17,106 | 18,791 | |||||||
Accounts receivable | 2,791 | 764 | 2,791 | 764 | |||||||
Other assets, net | 128 | 56 | 128 | 56 | |||||||
Total assets | 32,827 | 29,819 | 32,827 | 29,819 | |||||||
Accounts payable | 779 | 694 | 779 | 694 | |||||||
Accrued expenses | 1,532 | 1,026 | 1,532 | 1,026 | |||||||
Credit lines payable | 18,312 | 17,748 | 18,312 | 17,748 | |||||||
Other liabilities | 31 | 17 | 31 | 17 | |||||||
Members equity | 12,173 | 10,334 | 12,173 | 10,334 | |||||||
Total liabilities and equity | $ 32,827 | $ 29,819 | $ 32,827 | $ 29,819 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2017businesssegment | |
Segment Reporting [Abstract] | |
Number of businesses | business | 1 |
Number of reportable segments | segment | 6 |
Segment Information - Summary o
Segment Information - Summary of Segment Financial Information Relating to Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating revenue: | |||||||||||
Total operating revenue | $ 623,283 | $ 490,304 | $ 422,633 | $ 258,854 | $ 473,221 | $ 342,628 | $ 325,059 | $ 261,295 | $ 1,796,528 | $ 1,406,040 | $ 1,104,052 |
Income before provision from income taxes: | |||||||||||
Income before extinguishment of debt | 142,512 | 102,817 | 87,067 | ||||||||
Corporate - Loss on extinguishment of debt | (21,828) | 0 | 0 | ||||||||
Income before provision for income taxes | 120,684 | 102,817 | 87,067 | ||||||||
California | |||||||||||
Operating revenue: | |||||||||||
Total operating revenue | 682,896 | 494,189 | 401,934 | ||||||||
Income before provision from income taxes: | |||||||||||
Income before extinguishment of debt | 88,422 | 47,692 | 46,752 | ||||||||
Arizona | |||||||||||
Operating revenue: | |||||||||||
Total operating revenue | 158,534 | 125,951 | 69,510 | ||||||||
Income before provision from income taxes: | |||||||||||
Income before extinguishment of debt | 14,832 | 12,004 | 5,743 | ||||||||
Nevada | |||||||||||
Operating revenue: | |||||||||||
Total operating revenue | 176,354 | 191,711 | 130,845 | ||||||||
Income before provision from income taxes: | |||||||||||
Income before extinguishment of debt | 15,672 | 19,182 | 13,022 | ||||||||
Colorado | |||||||||||
Operating revenue: | |||||||||||
Total operating revenue | 124,456 | 128,530 | 107,014 | ||||||||
Income before provision from income taxes: | |||||||||||
Income before extinguishment of debt | 7,156 | 6,978 | 3,291 | ||||||||
Washington | |||||||||||
Operating revenue: | |||||||||||
Total operating revenue | 333,667 | 154,600 | 181,258 | ||||||||
Income before provision from income taxes: | |||||||||||
Income before extinguishment of debt | 30,008 | 9,528 | 18,652 | ||||||||
Oregon | |||||||||||
Operating revenue: | |||||||||||
Total operating revenue | 320,621 | 311,059 | 213,491 | ||||||||
Income before provision from income taxes: | |||||||||||
Income before extinguishment of debt | 35,862 | 41,617 | 24,787 | ||||||||
Corporate | |||||||||||
Income before provision from income taxes: | |||||||||||
Income before extinguishment of debt | (49,440) | (34,184) | (25,180) | ||||||||
Corporate - Loss on extinguishment of debt | $ (21,828) | $ 0 | $ 0 |
Segment Information - Schedule
Segment Information - Schedule of Homebuilding Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Total assets: | |||
Total assets | $ 2,061,104 | $ 2,011,280 | |
California | |||
Total assets: | |||
Total assets | 631,649 | 716,955 | |
Arizona | |||
Total assets: | |||
Total assets | 170,634 | 191,581 | |
Nevada | |||
Total assets: | |||
Total assets | 211,202 | 189,248 | |
Colorado | |||
Total assets: | |||
Total assets | 149,183 | 124,580 | |
Washington | |||
Total assets: | |||
Total assets | 286,442 | 343,973 | |
Oregon | |||
Total assets: | |||
Total assets | 288,981 | 238,766 | |
Corporate | |||
Total assets: | |||
Total assets | [1] | $ 323,013 | $ 206,177 |
[1] | Comprised primarily of cash and cash equivalents, receivables, deferred income taxes, and other assets. |
Real Estate Inventories - Summa
Real Estate Inventories - Summary of Real Estate Inventories (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Real estate inventories: | |||
Land deposits | $ 51,833,000 | $ 50,429,000 | |
Land and land under development | 904,410,000 | 1,069,001,000 | |
Homes completed and under construction | 646,198,000 | 545,310,000 | |
Model homes | 97,409,000 | 107,258,000 | |
Total | 1,699,850,000 | 1,771,998,000 | |
Impairment loss on real estate assets | $ 0 | $ 0 | $ 0 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 66,902 | $ 66,902 |
Goodwill - Schedule of Goodwill
Goodwill - Schedule of Goodwill by Operating Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill [Line Items] | ||
Goodwill | $ 66,902 | $ 66,902 |
California | ||
Goodwill [Line Items] | ||
Goodwill | 6,801 | 6,801 |
Arizona | ||
Goodwill [Line Items] | ||
Goodwill | 5,951 | 5,951 |
Nevada | ||
Goodwill [Line Items] | ||
Goodwill | 1,457 | 1,457 |
Colorado | ||
Goodwill [Line Items] | ||
Goodwill | 0 | 0 |
Washington | ||
Goodwill [Line Items] | ||
Goodwill | 31,200 | 31,200 |
Oregon | ||
Goodwill [Line Items] | ||
Goodwill | $ 21,493 | $ 21,493 |
Intangibles - Schedule of Carry
Intangibles - Schedule of Carrying Value and Accumulated Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (4,640) | $ (4,640) |
Net Carrying Amount | 6,700 | 6,700 |
Brand Name - Polygon Northwest Homes | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Value | 6,700 | 6,700 |
Accumulated Amortization | 0 | 0 |
Net Carrying Amount | $ 6,700 | $ 6,700 |
Senior Notes, Secured, and Su52
Senior Notes, Secured, and Subordinated Indebtedness - Schedule of Senior Notes, Secured, and Subordinated Indebtedness (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||||
Dec. 31, 2017 | Jan. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 03, 2014 | Aug. 11, 2014 | Mar. 31, 2014 | Oct. 24, 2013 | Nov. 08, 2012 | |
Notes payable: | |||||||||
Total notes payable | $ 94,515 | $ 155,768 | |||||||
Long-term debt | 1,030,184 | 1,080,650 | |||||||
Subordinated amortizing notes | |||||||||
Notes payable: | |||||||||
Long-term debt | 0 | 7,225 | |||||||
Stated interest rate | 5.50% | ||||||||
5 3/4% Senior Notes due 2019 | |||||||||
Notes payable: | |||||||||
Long-term debt | $ 149,362 | $ 148,826 | |||||||
Stated interest rate | 5.75% | 5.75% | |||||||
8 1/2% Senior Notes due 2020 | |||||||||
Notes payable: | |||||||||
Long-term debt | $ 422,817 | ||||||||
Stated interest rate | 8.50% | 8.50% | 8.50% | ||||||
7% Senior Notes due 2022 | |||||||||
Notes payable: | |||||||||
Long-term debt | $ 346,740 | $ 346,014 | |||||||
Stated interest rate | 7.00% | 7.00% | 7.00% | ||||||
5 7/8% Senior Notes due January 31, 2025 | |||||||||
Notes payable: | |||||||||
Long-term debt | $ 439,567 | ||||||||
Stated interest rate | 5.875% | 5.875% | 5.875% | ||||||
Seller Financing | |||||||||
Notes payable: | |||||||||
Total notes payable | $ 589 | $ 24,692 | |||||||
Stated interest rate | 7.00% | ||||||||
Joint Venture Notes Payable | |||||||||
Notes payable: | |||||||||
Total notes payable | $ 93,926 | 102,076 | |||||||
Line of Credit | |||||||||
Notes payable: | |||||||||
Total notes payable | 0 | 29,000 | |||||||
Senior Notes | 5 3/4% Senior Notes due 2019 | |||||||||
Notes payable: | |||||||||
Long-term debt | $ 149,362 | 148,826 | |||||||
Stated interest rate | 5.75% | 5.75% | |||||||
Debt instrument, maturity date | Apr. 15, 2019 | ||||||||
Senior Notes | 8 1/2% Senior Notes due 2020 | |||||||||
Notes payable: | |||||||||
Long-term debt | $ 0 | 422,817 | |||||||
Stated interest rate | 8.50% | 8.50% | 8.50% | ||||||
Debt instrument, maturity date | Nov. 15, 2020 | ||||||||
Senior Notes | 7% Senior Notes due 2022 | |||||||||
Notes payable: | |||||||||
Long-term debt | $ 346,740 | 346,014 | |||||||
Stated interest rate | 7.00% | 7.00% | |||||||
Debt instrument, maturity date | Aug. 15, 2022 | ||||||||
Senior Notes | 5 7/8% Senior Notes due January 31, 2025 | |||||||||
Notes payable: | |||||||||
Long-term debt | $ 439,567 | $ 0 | |||||||
Stated interest rate | 5.875% | 5.875% | |||||||
Debt instrument, maturity date | Jan. 31, 2025 |
Senior Notes, Secured, and Su53
Senior Notes, Secured, and Subordinated Indebtedness - Schedule of Maturities of Notes Payable, Senior Unsecured Credit Facility, Subordinated Amortizing Notes and Senior Notes (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 32,213 |
2,019 | 178,866 |
2,020 | 0 |
2,021 | 33,436 |
2,022 | 350,000 |
Thereafter | 450,000 |
Total | $ 1,044,515 |
Senior Notes, Secured, and Su54
Senior Notes, Secured, and Subordinated Indebtedness - Narrative (Details) | Dec. 01, 2017shares | Nov. 27, 2017shares | Jan. 31, 2017USD ($) | Jul. 01, 2016USD ($) | Sep. 15, 2015USD ($) | Nov. 21, 2014USD ($)$ / sharesshares | Aug. 11, 2014USD ($) | Mar. 31, 2014USD ($) | Oct. 24, 2013USD ($) | Nov. 08, 2012USD ($) | May 31, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | Aug. 31, 2014 | Feb. 28, 2014 | Jul. 31, 2013 | Dec. 31, 2017USD ($)land_acquisition | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 30, 2017 | Nov. 28, 2017USD ($) | Aug. 31, 2017 | Jun. 30, 2017 | Jun. 29, 2017 | Dec. 30, 2016 | Dec. 03, 2014$ / noteshares |
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Letters of credit outstanding, amount | $ 7,800,000 | |||||||||||||||||||||||||
Total notes payable | $ 94,515,000 | $ 155,768,000 | ||||||||||||||||||||||||
Number of Land Acquisitions Using Seller Financing | land_acquisition | 1 | |||||||||||||||||||||||||
Number of tangible equity units issued (in units) | shares | 1,150,000 | |||||||||||||||||||||||||
Conversion ratio, common stock to tangible equity units | 4.4465 | |||||||||||||||||||||||||
Repayments of credit facility | $ 375,121,000 | $ 294,000,000 | $ 164,000,000 | |||||||||||||||||||||||
Long-term debt, gross | $ 1,044,515,000 | |||||||||||||||||||||||||
7% Senior Notes due 2022 | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Debt instrument interest rate | 7.00% | 7.00% | 7.00% | |||||||||||||||||||||||
5 7/8% Senior Notes due January 31, 2025 | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Debt instrument interest rate | 5.875% | 5.875% | 5.875% | |||||||||||||||||||||||
5 3/4% Senior Notes due 2019 | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Debt instrument interest rate | 5.75% | 5.75% | ||||||||||||||||||||||||
Note Payable With Related Party Due August 2017 | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Debt instrument interest rate | 7.00% | |||||||||||||||||||||||||
Subordinated amortizing notes | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Debt instrument interest rate | 5.50% | |||||||||||||||||||||||||
Initial principal amount of each amortizing note | $ / note | 18.01 | |||||||||||||||||||||||||
Quarterly installment on each amortizing note | $ / note | 1.6250 | |||||||||||||||||||||||||
First installment payment per amortizing note | $ / note | 1.8056 | |||||||||||||||||||||||||
Senior Unsecured Facility | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Repayments of Senior Debt | $ 111,200,000 | |||||||||||||||||||||||||
8 1/2% Senior Notes due 2020 | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Repayments of Senior Debt | $ 425,000,000 | $ 0 | $ 0 | |||||||||||||||||||||||
Debt instrument interest rate | 8.50% | 8.50% | 8.50% | |||||||||||||||||||||||
Extinguishment of debt | $ 425,000,000 | |||||||||||||||||||||||||
Revolving Credit Facility | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Maximum borrowing capacity | $ 170,000,000 | |||||||||||||||||||||||||
Line of credit facility, increase in borrowing capacity | $ 25,000,000 | |||||||||||||||||||||||||
Tangible net worth requirement | $ 451,000,000 | |||||||||||||||||||||||||
Current rate | 4.75% | |||||||||||||||||||||||||
Revolving Credit Facility | Revolving Credit Facility Agreement | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Maximum borrowing capacity | $ 130,000,000 | |||||||||||||||||||||||||
Commitment fee | 0.50% | |||||||||||||||||||||||||
Letters of credit outstanding, amount | $ 8,000,000 | |||||||||||||||||||||||||
Revolving Credit Facility | Second Amended Facility | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Maximum borrowing capacity | 145,000,000 | |||||||||||||||||||||||||
Additional capacity under accordion feature | $ 200,000,000 | |||||||||||||||||||||||||
Subjective acceleration clause, percentage of EBITDA, minimum | 50.00% | |||||||||||||||||||||||||
Leverage ratio, maximum | 60.00% | 62.50% | 62.50% | 60.00% | 65.00% | |||||||||||||||||||||
Interest coverage ratio, minimum | 1.50 | |||||||||||||||||||||||||
Interest coverage ratio, maximum liquidity used in calculation | $ 50,000,000 | |||||||||||||||||||||||||
Letter of Credit | Second Amended Facility | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Sublimit for letters of credit | $ 50,000,000 | |||||||||||||||||||||||||
Seller Financing | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Debt instrument interest rate | 7.00% | |||||||||||||||||||||||||
Total notes payable | $ 589,000 | $ 24,692,000 | ||||||||||||||||||||||||
Senior Notes | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Deferred loan costs | 11,800,000 | |||||||||||||||||||||||||
Senior Notes | 7% Senior Notes due 2022 | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Debt premium | 700,000 | |||||||||||||||||||||||||
Deferred loan costs | $ 4,000,000 | |||||||||||||||||||||||||
Debt instrument interest rate | 7.00% | 7.00% | ||||||||||||||||||||||||
Principal amount | $ 50,000,000 | $ 300,000,000 | $ 350,000,000 | |||||||||||||||||||||||
Percentage of issuance price on face value | 102.00% | 100.00% | ||||||||||||||||||||||||
Maximum redemption percentage of aggregate principal amount | 100.00% | 100.00% | ||||||||||||||||||||||||
Proceeds from issuance of debt | $ 50,500,000 | |||||||||||||||||||||||||
Senior Notes | 5 7/8% Senior Notes due January 31, 2025 | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Debt discount | $ 3,200,000 | |||||||||||||||||||||||||
Debt instrument interest rate | 5.875% | 5.875% | ||||||||||||||||||||||||
Principal amount | $ 450,000,000 | |||||||||||||||||||||||||
Percentage of issuance price on face value | 99.215% | |||||||||||||||||||||||||
Maximum redemption percentage of aggregate principal amount | 100.00% | |||||||||||||||||||||||||
Long-term debt, gross | $ 450,000,000 | |||||||||||||||||||||||||
Debt issuance costs | 7,200,000 | |||||||||||||||||||||||||
Senior Notes | 5 3/4% Senior Notes due 2019 | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Deferred loan costs | $ 600,000 | |||||||||||||||||||||||||
Debt instrument interest rate | 5.75% | 5.75% | ||||||||||||||||||||||||
Principal amount | $ 150,000,000 | $ 150,000,000 | ||||||||||||||||||||||||
Percentage of issuance price on face value | 100.00% | |||||||||||||||||||||||||
Maximum redemption percentage of aggregate principal amount | 100.00% | |||||||||||||||||||||||||
Long-term debt, gross | $ 150,000,000 | |||||||||||||||||||||||||
Senior Notes | 8 1/2% Senior Notes due 2020 | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Debt instrument interest rate | 8.50% | 8.50% | 8.50% | |||||||||||||||||||||||
Principal amount | $ 100,000,000 | $ 325,000,000 | ||||||||||||||||||||||||
Percentage of issuance price on face value | 106.50% | 100.00% | ||||||||||||||||||||||||
Maximum redemption percentage of aggregate principal amount | 100.00% | 100.00% | ||||||||||||||||||||||||
Proceeds from issuance of debt | $ 104,700,000 | |||||||||||||||||||||||||
Purchase of senior notes | $ 395,600,000 | |||||||||||||||||||||||||
Extinguishment of senior note 8.5% | $ 21,800,000 | |||||||||||||||||||||||||
Line of Credit | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Leverage ratio, maximum | 62.50% | 62.50% | ||||||||||||||||||||||||
Total notes payable | 0 | $ 29,000,000 | ||||||||||||||||||||||||
Line of Credit | Revolving Credit Facility | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Total notes payable | 0 | 29,000,000 | ||||||||||||||||||||||||
Seller Financing | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Total notes payable | $ 589,000 | $ 24,692,000 | ||||||||||||||||||||||||
Minimum | Senior Notes | 7% Senior Notes due 2022 | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Notice period for redemption of notes (in days) | 30 days | |||||||||||||||||||||||||
Maximum | Senior Notes | 7% Senior Notes due 2022 | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Notice period for redemption of notes (in days) | 60 days | |||||||||||||||||||||||||
William Lyon Homes | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Ownership rate | 100.00% | |||||||||||||||||||||||||
California Lyon | Senior Notes | 7% Senior Notes due 2022 | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Percentage of redemption price of principal amount | 100.00% | |||||||||||||||||||||||||
California Lyon | Senior Notes | 5 7/8% Senior Notes due January 31, 2025 | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Maximum redemption percentage of aggregate principal amount | 35.00% | |||||||||||||||||||||||||
Percent redemption price | 105.875% | |||||||||||||||||||||||||
California Lyon | Minimum | Senior Notes | 5 3/4% Senior Notes due 2019 | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Notice period for redemption of notes (in days) | 30 days | |||||||||||||||||||||||||
California Lyon | Maximum | Senior Notes | 5 3/4% Senior Notes due 2019 | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Notice period for redemption of notes (in days) | 60 days | |||||||||||||||||||||||||
Tangible Equity Units | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Number of tangible equity units issued (in units) | shares | 1,000,000 | 150,000 | ||||||||||||||||||||||||
Stated rate | 6.50% | |||||||||||||||||||||||||
Conversion premium | 17.50% | |||||||||||||||||||||||||
Price per unit (in USD per unit) | $ / shares | $ 100 | |||||||||||||||||||||||||
Issuance of stock (in shares) | shares | 4,442,664 | 670,811 | ||||||||||||||||||||||||
Common Class A | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Issuance of stock (in shares) | shares | 5,113,473 | 670,811 | ||||||||||||||||||||||||
Prior to January 31, 2020 | Senior Notes | 7% Senior Notes due 2022 | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Percent redemption price | 100.00% | |||||||||||||||||||||||||
Prior to January 31, 2020 | Senior Notes | 5 7/8% Senior Notes due January 31, 2025 | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Percent redemption price | 100.00% |
Senior Notes, Secured, and Su55
Senior Notes, Secured, and Subordinated Indebtedness - Joint Venture Notes Payable (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Debt Instrument [Line Items] | |||
Notes payable | $ 94,515 | $ 155,768 | |
Construction Loans | |||
Debt Instrument [Line Items] | |||
Notes payable | 210,100 | ||
Outstanding | 93,900 | ||
Construction Loans | March 2016 Construction Notes Payable | |||
Debt Instrument [Line Items] | |||
Notes payable | 33,400 | ||
Outstanding | [1] | $ 13,800 | |
Current rate | [2] | 4.47% | |
Construction Loans | January 2016 Construction Notes Payable | |||
Debt Instrument [Line Items] | |||
Notes payable | $ 35,000 | ||
Outstanding | $ 28,900 | ||
Current rate | [3] | 4.82% | |
Construction Loans | November 2015 Construction Notes Payable | |||
Debt Instrument [Line Items] | |||
Notes payable | $ 42,500 | ||
Outstanding | [1] | $ 15,700 | |
Current rate | [2] | 5.50% | |
Construction Loans | November 2014 Construction Notes Payable | |||
Debt Instrument [Line Items] | |||
Notes payable | $ 7,000 | ||
Outstanding | [1] | $ 2,100 | |
Current rate | [4] | 5.00% | |
Construction Loans | March 2014 Construction Notes Payable | |||
Debt Instrument [Line Items] | |||
Notes payable | $ 26,000 | ||
Outstanding | [5] | $ 0 | |
Current rate | [2] | 4.53% | |
Construction Loans | July 2017 Construction Notes Payable | |||
Debt Instrument [Line Items] | |||
Notes payable | $ 66,200 | ||
Outstanding | $ 33,400 | ||
Current rate | [6] | 4.51% | |
London Interbank Offered Rate (LIBOR) | December 2013, March 2014, August 2015, November 2015 Construction Notes Payable [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.00% | ||
London Interbank Offered Rate (LIBOR) | January 2016 Construction Notes Payable | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.25% | ||
London Interbank Offered Rate (LIBOR) | July 2017 Construction Notes Payable | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
Prime Rate | December 2013, March 2014, August 2015, November 2015 Construction Notes Payable [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
Prime Rate | November 2014, April 2015, July 2015 Construction Notes Payable [Member] [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
Prime Rate | July 2017 Construction Notes Payable | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
[1] | The Company anticipates paying the borrowings in full upon the maturity date from proceeds from homes closed in the respective project. | ||
[2] | Loan bears interest at the Company's option of either LIBOR +3.0% or the prime rate +1.0%. | ||
[3] | Loan bears interest at LIBOR +3.25%. | ||
[4] | Loan bears interest at the prime rate +0.5%. | ||
[5] | The balance on this borrowing was paid in full prior to the maturity date, along with all accrued interest to date. | ||
[6] | Loan bears interest at the greatest of the prime rate, federal funds effective rate +1.0%, or LIBOR +1.0%. |
Senior Notes, Secured, and Su56
Senior Notes, Secured, and Subordinated Indebtedness - Summary of Senior Notes Redemption Prices Percentage (Details) - Senior Notes | 12 Months Ended |
Dec. 31, 2017 | |
April 15, 2016 | 5 3/4% Senior Notes due 2019 | |
Debt Instrument [Line Items] | |
Percent redemption price | 104.313% |
October 15, 2016 | 5 3/4% Senior Notes due 2019 | |
Debt Instrument [Line Items] | |
Percent redemption price | 102.875% |
April 15, 2017 | 5 3/4% Senior Notes due 2019 | |
Debt Instrument [Line Items] | |
Percent redemption price | 101.438% |
April 15, 2018 and thereafter | 5 3/4% Senior Notes due 2019 | |
Debt Instrument [Line Items] | |
Percent redemption price | 100.00% |
August 15, 2017 | 7% Senior Notes due 2022 | |
Debt Instrument [Line Items] | |
Percent redemption price | 103.50% |
August 2018 | 7% Senior Notes due 2022 | |
Debt Instrument [Line Items] | |
Percent redemption price | 101.75% |
August 2019 and Thereafter | 7% Senior Notes due 2022 | |
Debt Instrument [Line Items] | |
Percent redemption price | 100.00% |
August 2019 and Thereafter | 5 7/8% Senior Notes due January 31, 2025 | |
Debt Instrument [Line Items] | |
Percent redemption price | 100.00% |
January 2020 | 5 7/8% Senior Notes due January 31, 2025 | |
Debt Instrument [Line Items] | |
Percent redemption price | 102.938% |
January 2021 | 5 7/8% Senior Notes due January 31, 2025 | |
Debt Instrument [Line Items] | |
Percent redemption price | 101.469% |
January 31, 2022 | 5 7/8% Senior Notes due January 31, 2025 | |
Debt Instrument [Line Items] | |
Percent redemption price | 100.734% |
January 31, 2023 and thereafter | 5 7/8% Senior Notes due January 31, 2025 | |
Debt Instrument [Line Items] | |
Percent redemption price | 100.00% |
Senior Notes, Secured, and Su57
Senior Notes, Secured, and Subordinated Indebtedness - Consolidating Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||||
Cash and cash equivalents | $ 182,710 | $ 42,612 | $ 50,203 | $ 52,771 |
Receivables | 10,223 | 9,538 | ||
Escrow proceeds receivable | 3,319 | 85 | ||
Real estate inventories | 1,699,850 | 1,771,998 | ||
Investment in unconsolidated joint ventures | 7,867 | 7,282 | ||
Goodwill | 66,902 | 66,902 | ||
Intangibles, net | 6,700 | 6,700 | ||
Deferred income taxes, net | 47,915 | 75,751 | ||
Lease right-of-use assets | 14,454 | 13,129 | ||
Other assets, net | 21,164 | 17,283 | ||
Investments in subsidiaries | 0 | 0 | ||
Intercompany receivables | 0 | 0 | ||
Total assets | 2,061,104 | 2,011,280 | ||
LIABILITIES AND EQUITY | ||||
Accounts payable | 58,799 | 74,282 | ||
Accrued expenses | 111,491 | 92,919 | ||
Notes payable | 94,515 | 155,768 | ||
Long-term debt | 1,030,184 | 1,080,650 | ||
Intercompany payables | 0 | 0 | ||
Total liabilities | 1,200,474 | 1,247,851 | ||
Equity | ||||
William Lyon Homes stockholders’ equity | 780,472 | 697,086 | ||
Noncontrolling interests | 80,158 | 66,343 | ||
Total liabilities and equity | 2,061,104 | 2,011,280 | ||
Consolidation, Eliminations | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Receivables | 0 | 0 | ||
Escrow proceeds receivable | 0 | 0 | ||
Real estate inventories | 0 | 0 | ||
Investment in unconsolidated joint ventures | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangibles, net | 0 | 0 | ||
Deferred income taxes, net | 0 | 0 | ||
Lease right-of-use assets | 0 | 0 | ||
Other assets, net | 0 | 0 | ||
Investments in subsidiaries | (269,727) | (99,700) | ||
Intercompany receivables | (269,831) | (252,860) | ||
Total assets | (539,558) | (352,560) | ||
LIABILITIES AND EQUITY | ||||
Accounts payable | 0 | 0 | ||
Accrued expenses | 0 | 0 | ||
Notes payable | 0 | 0 | ||
Intercompany payables | (269,831) | (252,860) | ||
Total liabilities | (269,831) | (252,860) | ||
Equity | ||||
William Lyon Homes stockholders’ equity | (269,727) | (99,700) | ||
Noncontrolling interests | 0 | 0 | ||
Total liabilities and equity | (539,558) | (352,560) | ||
William Lyon Homes | Reportable Legal Entities | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Receivables | 0 | 0 | ||
Escrow proceeds receivable | 0 | 0 | ||
Real estate inventories | 0 | 0 | ||
Investment in unconsolidated joint ventures | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangibles, net | 0 | 0 | ||
Deferred income taxes, net | 0 | 0 | ||
Lease right-of-use assets | 0 | 0 | ||
Other assets, net | 0 | 0 | ||
Investments in subsidiaries | 780,472 | 697,086 | ||
Intercompany receivables | 0 | 0 | ||
Total assets | 780,472 | 697,086 | ||
LIABILITIES AND EQUITY | ||||
Accounts payable | 0 | 0 | ||
Accrued expenses | 0 | 0 | ||
Notes payable | 0 | 0 | ||
Intercompany payables | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Equity | ||||
William Lyon Homes stockholders’ equity | 780,472 | 697,086 | ||
Noncontrolling interests | 0 | 0 | ||
Total liabilities and equity | 780,472 | 697,086 | ||
California Lyon | Reportable Legal Entities | ||||
ASSETS | ||||
Cash and cash equivalents | 171,434 | 36,204 | 44,331 | 48,462 |
Receivables | 4,647 | 2,989 | ||
Escrow proceeds receivable | 1,594 | 85 | ||
Real estate inventories | 831,007 | 910,594 | ||
Investment in unconsolidated joint ventures | 7,717 | 7,132 | ||
Goodwill | 14,209 | 14,209 | ||
Intangibles, net | 0 | 0 | ||
Deferred income taxes, net | 47,915 | 75,751 | ||
Lease right-of-use assets | 14,454 | 13,129 | ||
Other assets, net | 18,167 | 15,779 | ||
Investments in subsidiaries | (16,544) | (23,736) | ||
Intercompany receivables | 0 | 0 | ||
Total assets | 1,094,600 | 1,052,136 | ||
LIABILITIES AND EQUITY | ||||
Accounts payable | 40,075 | 52,380 | ||
Accrued expenses | 108,407 | 88,187 | ||
Notes payable | 589 | 50,713 | ||
Intercompany payables | 179,788 | 177,267 | ||
Total liabilities | 1,264,528 | 1,293,429 | ||
Equity | ||||
William Lyon Homes stockholders’ equity | (169,928) | (241,291) | ||
Noncontrolling interests | 0 | 0 | ||
Total liabilities and equity | 1,094,600 | 1,052,138 | ||
Guarantor Subsidiaries | Reportable Legal Entities | ||||
ASSETS | ||||
Cash and cash equivalents | 156 | 272 | 2,724 | 573 |
Receivables | 2,252 | 3,303 | ||
Escrow proceeds receivable | 1,725 | 0 | ||
Real estate inventories | 630,384 | 645,341 | ||
Investment in unconsolidated joint ventures | 150 | 150 | ||
Goodwill | 52,693 | 52,693 | ||
Intangibles, net | 6,700 | 6,700 | ||
Deferred income taxes, net | 0 | 0 | ||
Lease right-of-use assets | 0 | 0 | ||
Other assets, net | 2,504 | 1,089 | ||
Investments in subsidiaries | (494,201) | (573,650) | ||
Intercompany receivables | 269,831 | 252,860 | ||
Total assets | 472,194 | 388,758 | ||
LIABILITIES AND EQUITY | ||||
Accounts payable | 13,007 | 16,416 | ||
Accrued expenses | 2,988 | 4,634 | ||
Notes payable | 0 | 2,979 | ||
Intercompany payables | 0 | 0 | ||
Total liabilities | 15,995 | 24,029 | ||
Equity | ||||
William Lyon Homes stockholders’ equity | 456,199 | 364,727 | ||
Noncontrolling interests | 0 | 0 | ||
Total liabilities and equity | 472,194 | 388,756 | ||
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
ASSETS | ||||
Cash and cash equivalents | 11,120 | 6,136 | $ 3,148 | $ 3,736 |
Receivables | 3,324 | 3,246 | ||
Escrow proceeds receivable | 0 | 0 | ||
Real estate inventories | 238,459 | 216,063 | ||
Investment in unconsolidated joint ventures | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangibles, net | 0 | 0 | ||
Deferred income taxes, net | 0 | 0 | ||
Lease right-of-use assets | 0 | 0 | ||
Other assets, net | 493 | 415 | ||
Investments in subsidiaries | 0 | 0 | ||
Intercompany receivables | 0 | 0 | ||
Total assets | 253,396 | 225,860 | ||
LIABILITIES AND EQUITY | ||||
Accounts payable | 5,717 | 5,486 | ||
Accrued expenses | 96 | 98 | ||
Notes payable | 93,926 | 102,076 | ||
Intercompany payables | 90,043 | 75,593 | ||
Total liabilities | 189,782 | 183,253 | ||
Equity | ||||
William Lyon Homes stockholders’ equity | (16,544) | (23,736) | ||
Noncontrolling interests | 80,158 | 66,343 | ||
Total liabilities and equity | 253,396 | 225,860 | ||
Subordinated amortizing notes | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt | 0 | 7,225 | ||
Subordinated amortizing notes | Consolidation, Eliminations | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt | 0 | |||
Subordinated amortizing notes | William Lyon Homes | Reportable Legal Entities | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt | 0 | |||
Subordinated amortizing notes | California Lyon | Reportable Legal Entities | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt | 7,225 | |||
Subordinated amortizing notes | Guarantor Subsidiaries | Reportable Legal Entities | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt | 0 | |||
Subordinated amortizing notes | Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt | 0 | |||
5 3/4% Senior Notes due 2019 | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt | 149,362 | 148,826 | ||
5 3/4% Senior Notes due 2019 | Consolidation, Eliminations | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt | 0 | 0 | ||
5 3/4% Senior Notes due 2019 | William Lyon Homes | Reportable Legal Entities | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt | 0 | 0 | ||
5 3/4% Senior Notes due 2019 | California Lyon | Reportable Legal Entities | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt | 149,362 | 148,826 | ||
5 3/4% Senior Notes due 2019 | Guarantor Subsidiaries | Reportable Legal Entities | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt | 0 | 0 | ||
5 3/4% Senior Notes due 2019 | Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt | 0 | 0 | ||
8 1/2% Senior Notes due 2020 | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt | 422,817 | |||
8 1/2% Senior Notes due 2020 | Consolidation, Eliminations | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt | 0 | |||
8 1/2% Senior Notes due 2020 | William Lyon Homes | Reportable Legal Entities | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt | 0 | |||
8 1/2% Senior Notes due 2020 | California Lyon | Reportable Legal Entities | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt | 422,817 | |||
8 1/2% Senior Notes due 2020 | Guarantor Subsidiaries | Reportable Legal Entities | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt | 0 | |||
8 1/2% Senior Notes due 2020 | Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt | 0 | |||
7% Senior Notes due 2022 | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt | 346,740 | 346,014 | ||
7% Senior Notes due 2022 | Consolidation, Eliminations | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt | 0 | 0 | ||
7% Senior Notes due 2022 | William Lyon Homes | Reportable Legal Entities | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt | 0 | 0 | ||
7% Senior Notes due 2022 | California Lyon | Reportable Legal Entities | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt | 346,740 | 346,014 | ||
7% Senior Notes due 2022 | Guarantor Subsidiaries | Reportable Legal Entities | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt | 0 | 0 | ||
7% Senior Notes due 2022 | Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt | 0 | $ 0 | ||
5 7/8% Senior Notes due January 31, 2025 | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt | 439,567 | |||
5 7/8% Senior Notes due January 31, 2025 | Consolidation, Eliminations | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt | 0 | |||
5 7/8% Senior Notes due January 31, 2025 | William Lyon Homes | Reportable Legal Entities | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt | 0 | |||
5 7/8% Senior Notes due January 31, 2025 | California Lyon | Reportable Legal Entities | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt | 439,567 | |||
5 7/8% Senior Notes due January 31, 2025 | Guarantor Subsidiaries | Reportable Legal Entities | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt | 0 | |||
5 7/8% Senior Notes due January 31, 2025 | Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt | $ 0 |
Senior Notes, Secured, and Su58
Senior Notes, Secured, and Subordinated Indebtedness - Consolidating Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating revenue | |||||||||||
Sales | $ 1,795,074 | $ 1,402,203 | $ 1,078,928 | ||||||||
Construction services | 1,454 | 3,837 | 25,124 | ||||||||
Management fees | 0 | 0 | 0 | ||||||||
Operating revenue | $ 623,283 | $ 490,304 | $ 422,633 | $ 258,854 | $ 473,221 | $ 342,628 | $ 325,059 | $ 261,295 | 1,796,528 | 1,406,040 | 1,104,052 |
Operating costs | |||||||||||
Cost of sales — homes | (1,478,549) | (1,162,337) | (878,995) | ||||||||
Construction services | (1,317) | (3,485) | (21,181) | ||||||||
Sales and marketing | (86,226) | (72,509) | (61,539) | ||||||||
General and administrative | (90,206) | (73,398) | (59,161) | ||||||||
Amortization of intangible assets | 0 | 0 | (957) | ||||||||
Other | (2,274) | (343) | (1,972) | ||||||||
Operating costs | (1,658,572) | (1,312,072) | (1,023,805) | ||||||||
Income (loss) from subsidiaries | 0 | 0 | 0 | ||||||||
Operating income | 137,956 | 93,968 | 80,247 | ||||||||
Equity in income of unconsolidated joint ventures | 3,661 | 5,606 | 3,239 | ||||||||
Other income (expense), net | 895 | 3,243 | 3,581 | ||||||||
Income before extinguishment of debt | 142,512 | 102,817 | 87,067 | ||||||||
Loss on extinguishment of debt | (21,828) | 0 | 0 | ||||||||
Income before provision for income taxes | 120,684 | 102,817 | 87,067 | ||||||||
Provision for income taxes | (62,933) | (34,850) | (26,806) | ||||||||
Net income | 16,736 | 30,060 | 20,251 | (9,296) | 26,426 | 16,514 | 15,086 | 9,941 | 57,751 | 67,967 | 60,261 |
Less: Net income attributable to noncontrolling interests | (9,616) | (8,271) | (2,925) | ||||||||
Net income available to common stockholders | $ 11,763 | $ 27,418 | $ 18,954 | $ (10,000) | $ 23,052 | $ 13,069 | $ 14,561 | $ 9,014 | 48,135 | 59,696 | 57,336 |
Consolidation, Eliminations | |||||||||||
Operating revenue | |||||||||||
Sales | 0 | 0 | 0 | ||||||||
Construction services | 0 | 0 | 0 | ||||||||
Management fees | 5,741 | 4,362 | 1,506 | ||||||||
Operating revenue | 5,741 | 4,362 | 1,506 | ||||||||
Operating costs | |||||||||||
Cost of sales — homes | (5,741) | (4,362) | (1,506) | ||||||||
Construction services | 0 | 0 | 0 | ||||||||
Sales and marketing | 0 | 0 | 0 | ||||||||
General and administrative | 0 | 0 | 0 | ||||||||
Amortization of intangible assets | 0 | ||||||||||
Other | 0 | 0 | 0 | ||||||||
Operating costs | (5,741) | (4,362) | (1,506) | ||||||||
Income (loss) from subsidiaries | (68,517) | (68,027) | (54,941) | ||||||||
Operating income | (68,517) | (68,027) | (54,941) | ||||||||
Equity in income of unconsolidated joint ventures | 0 | 0 | 0 | ||||||||
Other income (expense), net | 0 | 0 | 0 | ||||||||
Income before extinguishment of debt | (68,517) | ||||||||||
Loss on extinguishment of debt | 0 | ||||||||||
Income before provision for income taxes | (68,517) | (68,027) | (54,941) | ||||||||
Provision for income taxes | 0 | 0 | 0 | ||||||||
Net income | (68,517) | (68,027) | (54,941) | ||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income available to common stockholders | (68,517) | (68,027) | (54,941) | ||||||||
William Lyon Homes | Reportable Legal Entities | |||||||||||
Operating revenue | |||||||||||
Sales | 0 | 0 | 0 | ||||||||
Construction services | 0 | 0 | 0 | ||||||||
Management fees | 0 | 0 | 0 | ||||||||
Operating revenue | 0 | 0 | 0 | ||||||||
Operating costs | |||||||||||
Cost of sales — homes | 0 | 0 | 0 | ||||||||
Construction services | 0 | 0 | 0 | ||||||||
Sales and marketing | 0 | 0 | 0 | ||||||||
General and administrative | 0 | 0 | 0 | ||||||||
Amortization of intangible assets | 0 | ||||||||||
Other | 0 | 0 | 0 | ||||||||
Operating costs | 0 | 0 | 0 | ||||||||
Income (loss) from subsidiaries | 48,135 | 59,696 | 57,336 | ||||||||
Operating income | 48,135 | 59,696 | 57,336 | ||||||||
Equity in income of unconsolidated joint ventures | 0 | 0 | 0 | ||||||||
Other income (expense), net | 0 | 0 | 0 | ||||||||
Income before extinguishment of debt | 48,135 | ||||||||||
Loss on extinguishment of debt | 0 | ||||||||||
Income before provision for income taxes | 48,135 | 59,696 | 57,336 | ||||||||
Provision for income taxes | 0 | 0 | |||||||||
Net income | 48,135 | 59,696 | 57,336 | ||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income available to common stockholders | 48,135 | 59,696 | 57,336 | ||||||||
California Lyon | Reportable Legal Entities | |||||||||||
Operating revenue | |||||||||||
Sales | 748,396 | 573,191 | 459,990 | ||||||||
Construction services | 1,454 | 3,837 | 25,124 | ||||||||
Management fees | (5,741) | (4,362) | (1,506) | ||||||||
Operating revenue | 744,109 | 572,666 | 483,608 | ||||||||
Operating costs | |||||||||||
Cost of sales — homes | (596,970) | (462,153) | (358,793) | ||||||||
Construction services | (1,317) | (3,485) | (21,181) | ||||||||
Sales and marketing | (30,637) | (27,329) | (26,626) | ||||||||
General and administrative | (73,748) | (60,141) | (47,385) | ||||||||
Amortization of intangible assets | (957) | ||||||||||
Other | (2,560) | (442) | (3,477) | ||||||||
Operating costs | (705,232) | (553,550) | (458,419) | ||||||||
Income (loss) from subsidiaries | 20,382 | 8,331 | (2,395) | ||||||||
Operating income | 59,259 | 27,447 | 22,794 | ||||||||
Equity in income of unconsolidated joint ventures | 2,135 | 4,369 | 1,912 | ||||||||
Other income (expense), net | 2,029 | 4,640 | 7,911 | ||||||||
Income before extinguishment of debt | 63,423 | ||||||||||
Loss on extinguishment of debt | (21,828) | ||||||||||
Income before provision for income taxes | 41,595 | 36,456 | 32,617 | ||||||||
Provision for income taxes | (62,933) | (34,850) | (26,806) | ||||||||
Net income | (21,338) | 1,606 | 5,811 | ||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income available to common stockholders | (21,338) | 1,606 | 5,811 | ||||||||
Guarantor Subsidiaries | Reportable Legal Entities | |||||||||||
Operating revenue | |||||||||||
Sales | 844,611 | 680,138 | 568,774 | ||||||||
Construction services | 0 | 0 | 0 | ||||||||
Management fees | 0 | 0 | 0 | ||||||||
Operating revenue | 844,611 | 680,138 | 568,774 | ||||||||
Operating costs | |||||||||||
Cost of sales — homes | (700,878) | (564,596) | (475,043) | ||||||||
Construction services | 0 | 0 | 0 | ||||||||
Sales and marketing | (44,849) | (36,170) | (31,231) | ||||||||
General and administrative | (16,457) | (13,256) | (11,776) | ||||||||
Amortization of intangible assets | 0 | ||||||||||
Other | 308 | 100 | 1,505 | ||||||||
Operating costs | (761,876) | (613,922) | (516,545) | ||||||||
Income (loss) from subsidiaries | 0 | 0 | 0 | ||||||||
Operating income | 82,735 | 66,216 | 52,229 | ||||||||
Equity in income of unconsolidated joint ventures | 1,526 | 1,237 | 1,327 | ||||||||
Other income (expense), net | 264 | (34) | 4,793 | ||||||||
Income before extinguishment of debt | 84,525 | ||||||||||
Loss on extinguishment of debt | 0 | ||||||||||
Income before provision for income taxes | 84,525 | 67,419 | 58,349 | ||||||||
Provision for income taxes | 0 | 0 | 0 | ||||||||
Net income | 84,525 | 67,419 | 58,349 | ||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income available to common stockholders | 84,525 | 67,419 | 58,349 | ||||||||
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||||||||||
Operating revenue | |||||||||||
Sales | 202,067 | 148,874 | 50,164 | ||||||||
Construction services | 0 | 0 | 0 | ||||||||
Management fees | 0 | 0 | 0 | ||||||||
Operating revenue | 202,067 | 148,874 | 50,164 | ||||||||
Operating costs | |||||||||||
Cost of sales — homes | (174,960) | (131,226) | (43,653) | ||||||||
Construction services | 0 | 0 | 0 | ||||||||
Sales and marketing | (10,740) | (9,010) | (3,682) | ||||||||
General and administrative | (1) | (1) | 0 | ||||||||
Amortization of intangible assets | 0 | ||||||||||
Other | (22) | (1) | 0 | ||||||||
Operating costs | (185,723) | (140,238) | (47,335) | ||||||||
Income (loss) from subsidiaries | 0 | 0 | 0 | ||||||||
Operating income | 16,344 | 8,636 | 2,829 | ||||||||
Equity in income of unconsolidated joint ventures | 0 | 0 | 0 | ||||||||
Other income (expense), net | (1,398) | (1,363) | (9,123) | ||||||||
Income before extinguishment of debt | 14,946 | ||||||||||
Loss on extinguishment of debt | 0 | ||||||||||
Income before provision for income taxes | 14,946 | 7,273 | (6,294) | ||||||||
Provision for income taxes | 0 | 0 | 0 | ||||||||
Net income | 14,946 | 7,273 | (6,294) | ||||||||
Less: Net income attributable to noncontrolling interests | (9,616) | (8,271) | (2,925) | ||||||||
Net income available to common stockholders | $ 5,330 | $ (998) | $ (9,219) |
Senior Notes, Secured, and Su59
Senior Notes, Secured, and Subordinated Indebtedness - Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities: | |||
Net cash (used in) provided by operating activities | $ 167,454 | $ 21,706 | $ (172,908) |
Investing activities: | |||
Investment in and advances to joint ventures | 0 | 0 | (1,000) |
Proceeds from repayment of notes receivable | 0 | 6,188 | 0 |
Purchases of property and equipment | (4,300) | (1,029) | (4,800) |
Investments in subsidiaries | 0 | 0 | 0 |
Net cash (used in) provided by investing activities | (4,300) | 5,159 | (5,800) |
Financing activities: | |||
Proceeds from borrowings on notes payable | 134,061 | 139,783 | 119,663 |
Principal payments on notes payable | (142,211) | (147,887) | (58,217) |
Proceeds from borrowings on revolver | 346,121 | 258,000 | 229,000 |
Payments on revolver | (375,121) | (294,000) | (164,000) |
Principal payments on subordinated amortizing notes | (7,225) | (6,841) | (6,651) |
Proceeds from stock options exercised | 0 | 0 | 106 |
Proceeds from issuance of Class B Shares | 29,908 | 0 | 0 |
Costs related to settlement of TEUs | (63) | 0 | 0 |
Shares remitted to, or withheld by the Company for employee tax withholding | (1,544) | (942) | (1,832) |
Excess income tax benefit from stock based awards | 0 | (182) | 0 |
Payments to repurchase common stock | (3,112) | 0 | 0 |
Payment of deferred loan costs | (9,892) | (1,085) | (2,147) |
Noncontrolling interest contributions | 66,712 | 38,334 | 19,850 |
Noncontrolling interest distributions | (62,513) | (19,636) | (10,632) |
Advances to affiliates | 0 | 0 | 0 |
Intercompany receivables/payables | 0 | 0 | 0 |
Net cash (used in) provided by financing activities | (23,056) | (34,456) | 176,140 |
Net (decrease) increase in cash and cash equivalents | 140,098 | (7,591) | (2,568) |
Cash and cash equivalents — beginning of period | 42,612 | 50,203 | 52,771 |
Cash and cash equivalents — end of period | 182,710 | 42,612 | 50,203 |
8 1/2% Senior Notes due 2020 | |||
Financing activities: | |||
Redemption Premium | (19,645) | 0 | 0 |
Principal payments of Senior Notes | (425,000) | 0 | 0 |
7% Senior Notes due 2022 | |||
Financing activities: | |||
Proceeds from issuance of Senior Notes | 0 | 0 | 51,000 |
5 7/8% Senior Notes due January 31, 2025 | |||
Financing activities: | |||
Proceeds from issuance of Senior Notes | 446,468 | 0 | 0 |
Reportable Legal Entities | William Lyon Homes | |||
Operating activities: | |||
Net cash (used in) provided by operating activities | (35,251) | (5,295) | (4,844) |
Investing activities: | |||
Investment in and advances to joint ventures | 0 | ||
Proceeds from repayment of notes receivable | 0 | ||
Purchases of property and equipment | 0 | 0 | 0 |
Investments in subsidiaries | 0 | 0 | 0 |
Net cash (used in) provided by investing activities | 0 | 0 | 0 |
Financing activities: | |||
Proceeds from borrowings on notes payable | 0 | 0 | 0 |
Principal payments on notes payable | 0 | 0 | 0 |
Proceeds from borrowings on revolver | 0 | 0 | 0 |
Payments on revolver | 0 | 0 | 0 |
Principal payments on subordinated amortizing notes | 0 | 0 | 0 |
Proceeds from stock options exercised | 0 | ||
Proceeds from issuance of Class B Shares | 0 | ||
Costs related to settlement of TEUs | 0 | ||
Shares remitted to, or withheld by the Company for employee tax withholding | 0 | 0 | 0 |
Excess income tax benefit from stock based awards | 0 | ||
Payments to repurchase common stock | 0 | ||
Payment of deferred loan costs | 0 | 0 | 0 |
Noncontrolling interest contributions | 0 | 0 | 0 |
Noncontrolling interest distributions | 0 | 0 | 0 |
Advances to affiliates | 0 | 0 | 0 |
Intercompany receivables/payables | 35,251 | 5,295 | 4,844 |
Net cash (used in) provided by financing activities | 35,251 | 5,295 | 4,844 |
Net (decrease) increase in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents — beginning of period | 0 | 0 | 0 |
Cash and cash equivalents — end of period | 0 | 0 | 0 |
Reportable Legal Entities | California Lyon | |||
Operating activities: | |||
Net cash (used in) provided by operating activities | 84,840 | 64,780 | (123,099) |
Investing activities: | |||
Investment in and advances to joint ventures | (1,000) | ||
Proceeds from repayment of notes receivable | 6,188 | ||
Purchases of property and equipment | (3,668) | (1,004) | (4,918) |
Investments in subsidiaries | 13,190 | (2,455) | (3,833) |
Net cash (used in) provided by investing activities | 9,522 | 2,729 | (9,751) |
Financing activities: | |||
Proceeds from borrowings on notes payable | 0 | 2,211 | 34,955 |
Principal payments on notes payable | 0 | (18,125) | (28,924) |
Proceeds from borrowings on revolver | 346,121 | 258,000 | 229,000 |
Payments on revolver | (375,121) | (294,000) | (164,000) |
Principal payments on subordinated amortizing notes | (7,225) | (6,841) | (6,651) |
Proceeds from stock options exercised | 106 | ||
Proceeds from issuance of Class B Shares | 29,908 | ||
Costs related to settlement of TEUs | (63) | ||
Shares remitted to, or withheld by the Company for employee tax withholding | (1,544) | (942) | (1,832) |
Excess income tax benefit from stock based awards | (182) | ||
Payments to repurchase common stock | (3,112) | ||
Payment of deferred loan costs | (9,892) | (1,085) | (2,147) |
Noncontrolling interest contributions | 0 | 0 | 0 |
Noncontrolling interest distributions | 0 | 0 | 0 |
Advances to affiliates | 0 | 0 | 0 |
Intercompany receivables/payables | 59,973 | (14,672) | 17,212 |
Net cash (used in) provided by financing activities | 40,868 | (75,636) | 128,719 |
Net (decrease) increase in cash and cash equivalents | 135,230 | (8,127) | (4,131) |
Cash and cash equivalents — beginning of period | 36,204 | 44,331 | 48,462 |
Cash and cash equivalents — end of period | 171,434 | 36,204 | 44,331 |
Reportable Legal Entities | Guarantor Subsidiaries | |||
Operating activities: | |||
Net cash (used in) provided by operating activities | 89,914 | (778) | 26,398 |
Investing activities: | |||
Investment in and advances to joint ventures | 0 | ||
Proceeds from repayment of notes receivable | 0 | ||
Purchases of property and equipment | (555) | 85 | 89 |
Investments in subsidiaries | (79,449) | 12,104 | (12,584) |
Net cash (used in) provided by investing activities | (80,004) | 12,189 | (12,495) |
Financing activities: | |||
Proceeds from borrowings on notes payable | 0 | 0 | 0 |
Principal payments on notes payable | 0 | 0 | (162) |
Proceeds from borrowings on revolver | 0 | 0 | 0 |
Payments on revolver | 0 | 0 | 0 |
Principal payments on subordinated amortizing notes | 0 | 0 | 0 |
Proceeds from stock options exercised | 0 | ||
Proceeds from issuance of Class B Shares | 0 | ||
Costs related to settlement of TEUs | 0 | ||
Shares remitted to, or withheld by the Company for employee tax withholding | 0 | 0 | 0 |
Excess income tax benefit from stock based awards | 0 | ||
Payments to repurchase common stock | 0 | ||
Payment of deferred loan costs | 0 | 0 | 0 |
Noncontrolling interest contributions | 0 | 0 | 0 |
Noncontrolling interest distributions | 0 | 0 | 0 |
Advances to affiliates | 6,947 | (252) | (5,237) |
Intercompany receivables/payables | (16,973) | (13,611) | (6,353) |
Net cash (used in) provided by financing activities | (10,026) | (13,863) | (11,752) |
Net (decrease) increase in cash and cash equivalents | (116) | (2,452) | 2,151 |
Cash and cash equivalents — beginning of period | 272 | 2,724 | 573 |
Cash and cash equivalents — end of period | 156 | 272 | 2,724 |
Reportable Legal Entities | Non-Guarantor Subsidiaries | |||
Operating activities: | |||
Net cash (used in) provided by operating activities | (7,300) | (42,296) | (76,207) |
Investing activities: | |||
Investment in and advances to joint ventures | 0 | ||
Proceeds from repayment of notes receivable | 0 | ||
Purchases of property and equipment | (77) | (110) | 29 |
Investments in subsidiaries | 0 | 0 | 0 |
Net cash (used in) provided by investing activities | (77) | (110) | 29 |
Financing activities: | |||
Proceeds from borrowings on notes payable | 134,061 | 137,572 | 84,708 |
Principal payments on notes payable | (142,211) | (129,762) | (29,131) |
Proceeds from borrowings on revolver | 0 | 0 | 0 |
Payments on revolver | 0 | 0 | 0 |
Principal payments on subordinated amortizing notes | 0 | 0 | 0 |
Proceeds from stock options exercised | 0 | ||
Proceeds from issuance of Class B Shares | 0 | ||
Costs related to settlement of TEUs | 0 | ||
Shares remitted to, or withheld by the Company for employee tax withholding | 0 | 0 | 0 |
Excess income tax benefit from stock based awards | 0 | ||
Payments to repurchase common stock | 0 | ||
Payment of deferred loan costs | 0 | 0 | 0 |
Noncontrolling interest contributions | 66,712 | 38,334 | 19,850 |
Noncontrolling interest distributions | (62,513) | (19,636) | (10,632) |
Advances to affiliates | 1,862 | 11,784 | 10,658 |
Intercompany receivables/payables | 14,450 | 7,102 | 137 |
Net cash (used in) provided by financing activities | 12,361 | 45,394 | 75,590 |
Net (decrease) increase in cash and cash equivalents | 4,984 | 2,988 | (588) |
Cash and cash equivalents — beginning of period | 6,136 | 3,148 | 3,736 |
Cash and cash equivalents — end of period | 11,120 | 6,136 | 3,148 |
Reportable Legal Entities | 8 1/2% Senior Notes due 2020 | William Lyon Homes | |||
Financing activities: | |||
Redemption Premium | 0 | ||
Principal payments of Senior Notes | 0 | ||
Reportable Legal Entities | 8 1/2% Senior Notes due 2020 | California Lyon | |||
Financing activities: | |||
Redemption Premium | (19,645) | ||
Principal payments of Senior Notes | (425,000) | ||
Reportable Legal Entities | 8 1/2% Senior Notes due 2020 | Guarantor Subsidiaries | |||
Financing activities: | |||
Redemption Premium | 0 | ||
Principal payments of Senior Notes | 0 | ||
Reportable Legal Entities | 8 1/2% Senior Notes due 2020 | Non-Guarantor Subsidiaries | |||
Financing activities: | |||
Redemption Premium | 0 | ||
Principal payments of Senior Notes | 0 | ||
Reportable Legal Entities | 7% Senior Notes due 2022 | William Lyon Homes | |||
Financing activities: | |||
Proceeds from issuance of Senior Notes | 0 | ||
Reportable Legal Entities | 7% Senior Notes due 2022 | California Lyon | |||
Financing activities: | |||
Proceeds from issuance of Senior Notes | 51,000 | ||
Reportable Legal Entities | 7% Senior Notes due 2022 | Guarantor Subsidiaries | |||
Financing activities: | |||
Proceeds from issuance of Senior Notes | 0 | ||
Reportable Legal Entities | 7% Senior Notes due 2022 | Non-Guarantor Subsidiaries | |||
Financing activities: | |||
Proceeds from issuance of Senior Notes | 0 | ||
Reportable Legal Entities | 5 7/8% Senior Notes due January 31, 2025 | William Lyon Homes | |||
Financing activities: | |||
Proceeds from issuance of Senior Notes | 0 | ||
Reportable Legal Entities | 5 7/8% Senior Notes due January 31, 2025 | California Lyon | |||
Financing activities: | |||
Proceeds from issuance of Senior Notes | 446,468 | ||
Reportable Legal Entities | 5 7/8% Senior Notes due January 31, 2025 | Guarantor Subsidiaries | |||
Financing activities: | |||
Proceeds from issuance of Senior Notes | 0 | ||
Reportable Legal Entities | 5 7/8% Senior Notes due January 31, 2025 | Non-Guarantor Subsidiaries | |||
Financing activities: | |||
Proceeds from issuance of Senior Notes | 0 | ||
Consolidation, Eliminations | |||
Operating activities: | |||
Net cash (used in) provided by operating activities | 35,251 | 5,295 | 4,844 |
Investing activities: | |||
Investment in and advances to joint ventures | 0 | ||
Proceeds from repayment of notes receivable | 0 | ||
Purchases of property and equipment | 0 | 0 | 0 |
Investments in subsidiaries | 66,259 | (9,649) | 16,417 |
Net cash (used in) provided by investing activities | 66,259 | (9,649) | 16,417 |
Financing activities: | |||
Proceeds from borrowings on notes payable | 0 | 0 | 0 |
Principal payments on notes payable | 0 | 0 | 0 |
Proceeds from borrowings on revolver | 0 | 0 | 0 |
Payments on revolver | 0 | 0 | 0 |
Principal payments on subordinated amortizing notes | 0 | 0 | 0 |
Proceeds from stock options exercised | 0 | ||
Proceeds from issuance of Class B Shares | 0 | ||
Costs related to settlement of TEUs | 0 | ||
Shares remitted to, or withheld by the Company for employee tax withholding | 0 | 0 | 0 |
Excess income tax benefit from stock based awards | 0 | ||
Payments to repurchase common stock | 0 | ||
Payment of deferred loan costs | 0 | 0 | 0 |
Noncontrolling interest contributions | 0 | 0 | 0 |
Noncontrolling interest distributions | 0 | 0 | 0 |
Advances to affiliates | (8,809) | (11,532) | (5,421) |
Intercompany receivables/payables | (92,701) | 15,886 | (15,840) |
Net cash (used in) provided by financing activities | (101,510) | 4,354 | (21,261) |
Net (decrease) increase in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents — beginning of period | 0 | 0 | 0 |
Cash and cash equivalents — end of period | 0 | $ 0 | 0 |
Consolidation, Eliminations | 8 1/2% Senior Notes due 2020 | |||
Financing activities: | |||
Redemption Premium | 0 | ||
Principal payments of Senior Notes | 0 | ||
Consolidation, Eliminations | 7% Senior Notes due 2022 | |||
Financing activities: | |||
Proceeds from issuance of Senior Notes | $ 0 | ||
Consolidation, Eliminations | 5 7/8% Senior Notes due January 31, 2025 | |||
Financing activities: | |||
Proceeds from issuance of Senior Notes | $ 0 |
Fair Value of Financial Instr60
Fair Value of Financial Instruments - Schedule of Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 03, 2014 | Aug. 11, 2014 | Mar. 31, 2014 | Oct. 24, 2013 | Nov. 08, 2012 |
Financial liabilities: | |||||||||
Notes payable | $ 94,515 | $ 155,768 | |||||||
Long-term debt | 1,030,184 | 1,080,650 | |||||||
Notes payable, fair value | 94,515 | 155,768 | |||||||
Subordinated amortizing notes | |||||||||
Financial liabilities: | |||||||||
Long-term debt | 0 | 7,225 | |||||||
Long-term debt, fair value | 0 | 7,478 | |||||||
Stated interest rate | 5.50% | ||||||||
5 3/4% Senior Notes due 2019 | |||||||||
Financial liabilities: | |||||||||
Long-term debt | $ 149,362 | $ 148,826 | |||||||
Stated interest rate | 5.75% | 5.75% | |||||||
8 1/2% Senior Notes due 2020 | |||||||||
Financial liabilities: | |||||||||
Long-term debt | $ 422,817 | ||||||||
Stated interest rate | 8.50% | 8.50% | 8.50% | ||||||
7% Senior Notes due 2022 | |||||||||
Financial liabilities: | |||||||||
Long-term debt | $ 346,740 | $ 346,014 | |||||||
Stated interest rate | 7.00% | 7.00% | 7.00% | ||||||
5 7/8% Senior Notes due January 31, 2025 | |||||||||
Financial liabilities: | |||||||||
Long-term debt | $ 439,567 | ||||||||
Stated interest rate | 5.875% | 5.875% | 5.875% | ||||||
Senior Notes | 5 3/4% Senior Notes due 2019 | |||||||||
Financial liabilities: | |||||||||
Long-term debt | $ 149,362 | $ 148,826 | |||||||
Long-term debt, fair value | $ 151,500 | 151,125 | |||||||
Stated interest rate | 5.75% | 5.75% | |||||||
Senior Notes | 8 1/2% Senior Notes due 2020 | |||||||||
Financial liabilities: | |||||||||
Long-term debt | $ 0 | 422,817 | |||||||
Long-term debt, fair value | $ 0 | 444,125 | |||||||
Stated interest rate | 8.50% | 8.50% | 8.50% | ||||||
Senior Notes | 7% Senior Notes due 2022 | |||||||||
Financial liabilities: | |||||||||
Long-term debt | $ 346,740 | 346,014 | |||||||
Long-term debt, fair value | $ 362,250 | 363,125 | |||||||
Stated interest rate | 7.00% | 7.00% | |||||||
Senior Notes | 5 7/8% Senior Notes due January 31, 2025 | |||||||||
Financial liabilities: | |||||||||
Long-term debt | $ 439,567 | 0 | |||||||
Long-term debt, fair value | $ 459,000 | $ 0 | |||||||
Stated interest rate | 5.875% | 5.875% |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) | Dec. 14, 2017 | Aug. 31, 2017 | Sep. 03, 2009 | Aug. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||||||
Issuance of stock | $ (63,000) | |||||
Related party land sale to employee | $ 550,000 | |||||
Aggregate purchase price of aircraft | $ 8,300,000 | |||||
Cash paid on sale of aircraft | 2,100,000 | |||||
Promissory note from the affiliate | 6,200,000 | |||||
Semiannual interest payments receivable | $ 132,000 | |||||
Affiliated Entity | ||||||
Related Party Transaction [Line Items] | ||||||
Non refundable deposit for PSA | 1,200,000 | |||||
Cash purchase price of certain lots at a master planned community | $ 9,300,000 | |||||
Paulson & Co. Inc. | Investor | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership percentage in company, related party | 5.00% | 5.00% | ||||
Seller Financing | ||||||
Related Party Transaction [Line Items] | ||||||
Notes payable, related parties | $ 3,000,000 | |||||
Common Class B | ||||||
Related Party Transaction [Line Items] | ||||||
Issuance of stock (in shares) | 1,003,510 | |||||
Issuance of stock | $ 29,908,028 | $ 29,908,000 |
Income Taxes - Summary of (Prov
Income Taxes - Summary of (Provision) Benefit from Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current | |||
Federal | $ (25,974) | $ (26,978) | $ (15,296) |
State | (9,122) | (4,077) | (3,350) |
Deferred | |||
Federal | (26,663) | (1,395) | (5,259) |
State | (1,174) | (2,400) | (2,901) |
(Provision) benefit from income taxes | $ (62,933) | $ (34,850) | $ (26,806) |
Income Taxes - Schedule of Diff
Income Taxes - Schedule of Difference in Income Taxes from Amounts Computed by Applying Federal Statutory Rates (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Provision for federal income taxes at the statutory rate | $ (42,240) | $ (35,986) | $ (30,473) |
(Increases)/decreases in tax resulting from: | |||
Provision for state income taxes, net of federal income tax benefits | (6,692) | (4,210) | (4,063) |
Rate adjustment - new tax reform legislation | (23,126) | 0 | 0 |
Change in valuation allowance | 0 | 0 | 1,626 |
Domestic production activities deduction | 2,868 | 2,481 | 2,087 |
Nondeductible items-other | (94) | (58) | (52) |
Non-controlling interests | 3,366 | 2,895 | 1,024 |
Change in RBIL estimate | 0 | 0 | 1,771 |
Tax credits | (160) | 166 | 1,272 |
Stock based compensation | 281 | 27 | 0 |
Other, net | 2,864 | (165) | 2 |
(Provision) benefit from income taxes | $ (62,933) | $ (34,850) | $ (26,806) |
Income Taxes - Summary of Tempo
Income Taxes - Summary of Temporary Differences Giving Rise to Deferred Income Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets | ||
Impairment and other reserves | $ 33,883 | $ 53,806 |
Compensation deductible for tax purposes when paid | 5,093 | 9,161 |
AMT credit carryover | 1,384 | 1,384 |
Unused recognized built-in loss | 10,706 | 18,651 |
Net operating loss | 3,488 | 3,172 |
Effect of book/tax differences for general and administrative | 4,508 | 6,427 |
Other | 806 | 694 |
Deferred tax assets | 59,868 | 93,295 |
Deferred tax liabilities | ||
Effect of book/tax differences for joint ventures | (1,343) | (2,706) |
Effect of book/tax differences for capitalized interest | (6,478) | (11,103) |
Fixed assets and intangibles | (1,850) | (1,716) |
Goodwill and other intangibles | (1,998) | (1,541) |
Other | (284) | (478) |
Deferred tax liabilities | (11,953) | (17,544) |
Total deferred tax assets, net | $ 47,915 | $ 75,751 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | 48 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2012 | |
Income Tax Disclosure [Line Items] | |||||
Tax Cuts and Jobs Act of 2017, income tax expense | $ 23,100,000 | ||||
Effective income tax rate | 52.10% | 33.90% | |||
Valuation allowance | $ 0 | $ 0 | |||
Deferred tax asset balance | $ 200,000,000 | ||||
Deferred tax benefit | $ 95,600,000 | 20,000,000 | |||
AMT credit carryover | 1,384,000 | $ 1,384,000 | 1,384,000 | ||
Federal | |||||
Income Tax Disclosure [Line Items] | |||||
Net operating loss carryforwards | 0 | 0 | |||
Unused built-in losses | 48,500,000 | 48,500,000 | |||
State | |||||
Income Tax Disclosure [Line Items] | |||||
Net operating loss carryforwards | 49,900,000 | 49,900,000 | |||
Unused built-in losses | $ 7,500,000 | $ 7,500,000 |
Income Per Common Share - Summa
Income Per Common Share - Summary of Basic and Diluted (Loss) Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 01, 2017 | Nov. 27, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||||
Basic weighted average number of shares outstanding (in shares) | 37,040,137 | 36,764,799 | 36,546,227 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Diluted average shares outstanding (in shares) | 38,663,667 | 38,474,900 | 38,767,556 | ||||||||||
Net income available to common stockholders | $ 11,763 | $ 27,418 | $ 18,954 | $ (10,000) | $ 23,052 | $ 13,069 | $ 14,561 | $ 9,014 | $ 48,135 | $ 59,696 | $ 57,336 | ||
Basic income per common share (in USD per share) | $ 0.32 | $ 0.74 | $ 0.51 | $ (0.27) | $ 0.63 | $ 0.36 | $ 0.40 | $ 0.25 | $ 1.30 | $ 1.62 | $ 1.57 | ||
Diluted income per common share (in USD per share) | $ 0.30 | $ 0.71 | $ 0.49 | $ (0.27) | $ 0.60 | $ 0.34 | $ 0.38 | $ 0.24 | $ 1.24 | $ 1.55 | $ 1.48 | ||
Potentially antidilutive securities not included in the calculation of diluted income per common share (weighted average): | |||||||||||||
Number of equity units | 5,113,475 | 5,113,475 | 5,113,475 | ||||||||||
Unvested stock options | |||||||||||||
Potentially antidilutive securities not included in the calculation of diluted income per common share (weighted average): | |||||||||||||
Potentially antidilutive securities note included in the calculation of diluted loss per common share (in shares) | 240,000 | 240,000 | 180,000 | ||||||||||
Preferred shares, stock options, and warrants | |||||||||||||
Effect of dilutive securities: | |||||||||||||
Dilutive securities (in shares) | 1,623,530 | 815,171 | 1,326,399 | ||||||||||
Tangible Equity Units | |||||||||||||
Effect of dilutive securities: | |||||||||||||
Dilutive securities (in shares) | 0 | 894,930 | 894,930 | ||||||||||
Potentially antidilutive securities not included in the calculation of diluted income per common share (weighted average): | |||||||||||||
Issuance of stock (in shares) | 4,442,664 | 670,811 |
Equity - Narrative (Details)
Equity - Narrative (Details) | Dec. 14, 2017USD ($)$ / sharesshares | Dec. 01, 2017shares | Nov. 27, 2017shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2014USD ($) | Feb. 22, 2017USD ($) | Dec. 31, 2016$ / shares |
Class of Stock [Line Items] | |||||||
Issuance of stock | $ | $ (63,000) | ||||||
Stock repurchase program, authorized amount | $ | $ 50,000,000 | ||||||
Repurchases of common stock (in shares) | shares | 138,227 | ||||||
Average cost of repurchased share (in dollars per share) | $ / shares | $ 22.50 | ||||||
Stock repurchase program, remaining number of shares authorized to be repurchased (in shares) | shares | 46,900,000 | ||||||
Conversion ratio, common stock to tangible equity units | 4.4465 | ||||||
Number of tangible equity units issued (in units) | shares | 1,150,000 | ||||||
Number of equity units | shares | 5,113,475 | 5,113,475 | |||||
Common Class B | |||||||
Class of Stock [Line Items] | |||||||
Common stock, par value (in USD per share) | $ / shares | $ 0.01 | $ 0.01 | |||||
Issuance of stock (in shares) | shares | 1,003,510 | ||||||
Issuance of stock | $ | $ 29,908,028 | $ 29,908,000 | |||||
Price per share (in USD per share) | $ / shares | $ 29.80 | ||||||
Common stock, shares issued to purchase warrants (in shares) | shares | 1,907,551 | ||||||
Warrants to purchase common stock price per share (in USD per share) | $ / shares | $ 17.08 | ||||||
Warrants | |||||||
Class of Stock [Line Items] | |||||||
Adoption of fresh start accounting | $ | $ 1,000,000 | ||||||
Common Class A | |||||||
Class of Stock [Line Items] | |||||||
Common stock, par value (in USD per share) | $ / shares | $ 0.01 | $ 0.01 | |||||
Issuance of stock (in shares) | shares | 5,113,473 | 670,811 | |||||
Additional Paid-In Capital | |||||||
Class of Stock [Line Items] | |||||||
Issuance of stock | $ | $ (114,000) | ||||||
Issuance of TEUs net of offering costs | $ | $ 90,700,000 | ||||||
Additional Paid-In Capital | Common Class B | |||||||
Class of Stock [Line Items] | |||||||
Issuance of stock | $ | $ 29,898,000 |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Additional shares authorized (in shares) | 900,000 | ||
Performance target, percent achieved | 111.00% | 96.00% | 92.00% |
Shares available for grant (in shares) | 1,604,258 | ||
Stock based compensation expense | $ 10,062 | $ 6,419 | $ 6,570 |
Total unrecognized stock based compensation expense | $ 8,800 | ||
Unrecognized stock based compensation expense, weighted average recognition period | 1 year 14 days | ||
Total value of restricted stock awards vested | $ 8,000 | 5,100 | 6,000 |
Recognized tax benefit | $ 3,800 | $ 4,100 | $ 3,500 |
Common Class A | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares reserved for issuance (in shares) | 4,535,363 | ||
Restricted shares granted (in shares) | 813,586 | 857,460 | 493,524 |
Time Based Restricted Stock | Common Class A | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted shares granted (in shares) | 259,677 | ||
Performance-Based Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted shares granted (in shares) | 553,909 | 566,092 | 284,809 |
Vesting percentage | 33.33% | ||
Performance-Based Restricted Stock | Common Class A | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted shares granted (in shares) | 553,909 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted shares granted (in shares) | 259,677 | 291,368 | 208,715 |
Other Employee | Three Year Vesting Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted shares granted (in shares) | 172,857 | ||
Other Employee | Two Year Vesting Restricted Stock, March Schedule | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted shares granted (in shares) | 45,111 | ||
Other Employee | Two Year Vesting Restricted Stock, July Schedule | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted shares granted (in shares) | 6,434 | ||
Non Employee Director | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted shares granted (in shares) | 35,275 | ||
Tranche One | Other Employee | Three Year Vesting Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 33.33% | ||
Tranche One | Other Employee | Two Year Vesting Restricted Stock, March Schedule | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 50.00% | ||
Tranche One | Other Employee | Two Year Vesting Restricted Stock, July Schedule | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 50.00% | ||
Tranche Two | Other Employee | Three Year Vesting Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 33.33% | ||
Tranche Two | Other Employee | Two Year Vesting Restricted Stock, March Schedule | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 50.00% | ||
Tranche Two | Other Employee | Two Year Vesting Restricted Stock, July Schedule | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 50.00% | ||
Tranche Three | Other Employee | Three Year Vesting Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 33.33% |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Weighted-Average Assumptions for Fair Value of Employee Options Granted (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Expected dividend yield | 0.00% |
Risk-free interest rate | 1.71% |
Expected volatility | 44.00% |
Expected life (in years) | 6 years 9 months |
Stock Based Compensation - Su70
Stock Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Options | ||||
Options outstanding at beginning of year (in shares) | 596,313 | 611,313 | 419,238 | |
Granted (in shares) | [1] | 0 | 0 | 240,000 |
Exercised (in shares) | (3,535) | (15,000) | (47,925) | |
Canceled (in shares) | 0 | 0 | 0 | |
Options outstanding at end of year (in shares) | 592,778 | 596,313 | 611,313 | |
Options vested and expected to vest (in shares) | 592,778 | 596,313 | 611,313 | |
Options exercisable at end of year (in shares) | [2] | 352,778 | 356,313 | 371,313 |
Price range of options exercised (in USD per share) | $ 8.66 | $ 8.66 | $ 8.66 | |
Weighted Average Exercise Price | ||||
Weighted Average Exercise Price, Options outstanding at beginning of year (in USD per share) | 15.57 | 15.40 | 8.66 | |
Weighted Average Exercise Prices, Granted (in USD per share) | 25.82 | |||
Weighted Average Exercise Price, Exercised (in USD per share) | 8.66 | 8.66 | 8.66 | |
Weighted Average Exercise Price, Options outstanding at end of year (in USD per share) | 15.61 | 15.57 | 15.40 | |
Weighted Average Exercise Price, Options vested and expected to vest (in USD per share) | 15.61 | 15.57 | 15.40 | |
Weighted Average Exercise Price, Options exercisable at end of year (in USD per share) | [2] | $ 8.66 | $ 8.66 | 8.66 |
Weighted average grant date fair value of stock options (in USD per share) | $ 12.01 | |||
Options vested | $ 0 | $ 0 | $ 0 | |
Minimum | ||||
Options | ||||
Price range of options outstanding (in USD per share) | $ 8.66 | $ 8.66 | $ 8.66 | |
Maximum | ||||
Options | ||||
Price range of options outstanding (in USD per share) | $ 25.82 | $ 25.82 | $ 25.82 | |
[1] | The weighted average grant date fair value of the stock options during December 31, 2015 was $12.01 | |||
[2] | No options vested during the years ended December 31, 2017, 2016 or 2015. |
Stock Based Compensation - Su71
Stock Based Compensation - Summary of Stock Options Outstanding and Exercisable (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of Shares (in shares) | 592,778 | 596,313 | 611,313 | 419,238 | |
Options exercisable at end of year (in shares) | [1] | 352,778 | 356,313 | 371,313 | |
Granted in Prior Years | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Exercise Price (in USD per share) | $ 8.66 | ||||
Number of Shares (in shares) | 352,778 | ||||
Weighted Average Remaining Contractual Term (in years) | 4 years 9 months | ||||
Aggregate Intrinsic Value | $ 7,203,727 | ||||
Options exercisable at end of year (in shares) | 352,778 | ||||
[1] | No options vested during the years ended December 31, 2017, 2016 or 2015. |
Stock Based Compensation - Su72
Stock Based Compensation - Summary of Restricted Shares Activity (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Restricted Stock | ||||
Number of Shares | ||||
Non-vested shares at beginning of year (in shares) | 346,924 | 225,687 | 79,335 | |
Granted (in shares) | 259,677 | 291,368 | 208,715 | |
Vested (in shares) | (181,812) | (126,073) | (55,571) | |
Canceled (in shares) | [1] | (5,494) | (44,058) | (6,792) |
Non-vested shares at end of year (in shares) | 419,295 | 346,924 | 225,687 | |
Weighted Avg Grant Date Fair Value | ||||
Weighted Average Grant Date Fair Value, Non-vested shares at beginning of year (in USD per share) | $ 16.91 | $ 23.65 | $ 24.84 | |
Weighted Average Grant Date Fair Value, Granted (in USD per share) | 18.14 | 14.14 | 23.11 | |
Weighted Average Grant Date Fair Value, Vested (in USD per share) | 17.62 | 21.81 | 23.24 | |
Weighted Average Grant Date Fair Value, Canceled (in USD per share) | [1] | 16.23 | 19.06 | 24.28 |
Weighted Average Grant Date Fair Value, Non-vested shares at end of year (in USD per share) | $ 17.38 | $ 16.91 | $ 23.65 | |
Performance-Based Restricted Stock | ||||
Number of Shares | ||||
Non-vested shares at beginning of year (in shares) | 655,133 | 480,757 | 506,846 | |
Granted (in shares) | 553,909 | 566,092 | 284,809 | |
Vested (in shares) | (147,477) | (190,977) | (154,467) | |
Canceled (in shares) | [2] | (349,000) | (200,739) | (156,431) |
Non-vested shares at end of year (in shares) | 712,565 | 655,133 | 480,757 | |
Weighted Avg Grant Date Fair Value | ||||
Weighted Average Grant Date Fair Value, Non-vested shares at beginning of year (in USD per share) | $ 17.81 | $ 24.18 | $ 23.84 | |
Weighted Average Grant Date Fair Value, Granted (in USD per share) | 18 | 13.88 | 23.50 | |
Weighted Average Grant Date Fair Value, Vested (in USD per share) | 21.49 | 20.58 | 19.58 | |
Weighted Average Grant Date Fair Value, Canceled (in USD per share) | [2] | 19.55 | 23.38 | 28.86 |
Weighted Average Grant Date Fair Value, Non-vested shares at end of year (in USD per share) | $ 17.01 | $ 17.81 | $ 24.18 | |
[1] | (1) Represents shares that were canceled as result of terminations of employment. | |||
[2] | (1) Represents shares that were canceled as a result of achievement of performance targets as outlined in the respective grant agreement at below the maximum levels, as well as a result of terminations of employment. |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Loss Contingencies [Line Items] | ||
Outstanding performance and surety bonds | $ 234,000 | |
Non-refundable deposits | 51,800 | |
Remaining purchase price of land | 539,300 | |
Lease right-of-use assets | 14,454 | $ 13,129 |
Project Construction Commitment | ||
Loss Contingencies [Line Items] | ||
Construction project commitments | $ 355,500 |
Commitments and Contingencies74
Commitments and Contingencies - Lease Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Lease, Cost [Abstract] | |||
Operating lease cost | $ 6,835 | $ 3,890 | |
Sublease income | (117) | (117) | |
Total lease cost | 6,718 | 3,773 | |
Operating cash flows | 5,551 | 3,270 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 5,925 | $ 1,353 | $ 3,600 |
Weighted-average discount rate | 6.60% | 6.60% | |
Weighted-average remaining lease term (in years) | 3 years 6 months 29 days | 5 years 1 month 28 days |
Commitments and Contingencies75
Commitments and Contingencies - Schedule of Future Minimum Payments Under Non-Cancelable Operating Leases (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 6,998 |
2,019 | 3,989 |
2,020 | 2,635 |
2,021 | 2,398 |
2,022 | 1,342 |
Thereafter | 440 |
Total | $ 17,802 |
Subsequent Events Senior Notes
Subsequent Events Senior Notes Refinancing Transaction (Details) $ in Millions | Feb. 20, 2018USD ($) |
RSI Communities | Subsequent Event | |
Subsequent Event [Line Items] | |
Purchase price | $ 460 |
Unaudited Summarized Quarterl77
Unaudited Summarized Quarterly Financial Information - Summarized Unaudited Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Home sales | $ 623,283 | $ 490,304 | $ 422,633 | $ 258,854 | $ 473,221 | $ 342,628 | $ 325,059 | $ 261,295 | $ 1,796,528 | $ 1,406,040 | $ 1,104,052 |
Cost of sales | (505,337) | (401,700) | (353,057) | (218,455) | (392,632) | (285,896) | (268,638) | (215,171) | |||
Gross profit | 117,946 | 88,604 | 69,576 | 40,399 | 80,589 | 56,732 | 56,421 | 46,124 | |||
Other income, costs and expenses, net | (101,210) | (58,544) | (49,325) | (49,695) | (54,163) | (40,218) | (41,335) | (36,183) | |||
Net income | 16,736 | 30,060 | 20,251 | (9,296) | 26,426 | 16,514 | 15,086 | 9,941 | 57,751 | 67,967 | 60,261 |
Net income available to common stockholders | $ 11,763 | $ 27,418 | $ 18,954 | $ (10,000) | $ 23,052 | $ 13,069 | $ 14,561 | $ 9,014 | $ 48,135 | $ 59,696 | $ 57,336 |
(Loss) Income per common share: | |||||||||||
Basic (in USD per share) | $ 0.32 | $ 0.74 | $ 0.51 | $ (0.27) | $ 0.63 | $ 0.36 | $ 0.40 | $ 0.25 | $ 1.30 | $ 1.62 | $ 1.57 |
Diluted (in USD per share) | $ 0.30 | $ 0.71 | $ 0.49 | $ (0.27) | $ 0.60 | $ 0.34 | $ 0.38 | $ 0.24 | $ 1.24 | $ 1.55 | $ 1.48 |