Document And Entity Information
Document And Entity Information | 12 Months Ended | ||
Dec. 31, 2020employee | Feb. 26, 2021shares | Jun. 30, 2020USD ($) | |
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | GRBK | ||
Entity Incorporation, State or Country Code | DE | ||
Document Transition Report | false | ||
Document Quarterly Report | true | ||
Entity Number of Employees | employee | 440 | ||
Entity Registrant Name | Green Brick Partners, Inc. | ||
Entity Central Index Key | 0001373670 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity File Number | 001-33530 | ||
Entity Tax Identification Number | 20-5952523 | ||
City Area Code | (469) | ||
Local Phone Number | 573-6755 | ||
Entity Address, Address Line One | 2805 Dallas Pkwy | ||
Entity Address, Address Line Two | Ste 400 | ||
Entity Address, City or Town | Plano | ||
Entity Address, Postal Zip Code | 75093 | ||
Entity Address, State or Province | TX | ||
Entity Emerging Growth Company | false | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Shell Company | false | ||
Entity Public Float | $ | $ 283,118,968 | ||
Entity Common Stock, Shares Outstanding | shares | 50,661,919 | ||
Security Exchange Name | NASDAQ | ||
Entity Small Business | true | ||
ICFR Auditor Attestation Flag | true |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Redeemable Noncontrolling Interest, Equity, Carrying Amount | $ 13,543 | $ 13,611 |
Preferred Stock, Value, Issued | 0 | 0 |
ASSETS | ||
Cash and cash equivalents | 19,479 | 33,269 |
Restricted Cash | 14,156 | 4,416 |
Receivables | 5,224 | 4,720 |
Inventory | 844,635 | 753,567 |
Equity Method Investments | 46,443 | 30,294 |
Operating Lease, Right-of-Use Asset | 2,538 | 3,462 |
Property and equipment, net | 3,595 | 4,309 |
Earnest money deposits | 22,242 | 14,686 |
Deferred income tax assets, net | 15,376 | 15,262 |
Intangible Assets, Net (Excluding Goodwill) | 622 | 707 |
Goodwill | 680 | 680 |
Other assets | 13,857 | 10,167 |
Total assets | 988,847 | 875,539 |
LIABILITIES AND EQUITY | ||
Accounts payable | 24,521 | 30,044 |
Accrued expenses | 40,416 | 24,656 |
Contract with Customer, Liability, Revenue Recognized | 38,131 | 23,954 |
Operating Lease, Liability | 2,591 | 3,564 |
Borrowings on lines of credit, net | 106,687 | 164,642 |
Senior Notes | 111,056 | 73,406 |
Notes payable | 2,125 | 0 |
Business Combination, Contingent Consideration, Liability | 368 | 5,267 |
Total liabilities | 325,895 | 325,533 |
Equity: | ||
Common stock, $0.01 par value: 100,000,000 shares authorized; 51,053,858 and 50,879,949 issued and 50,661,919 and 50,488,010 outstanding as of December 31, 2020 and December 31, 2019, respectively | 511 | 509 |
Treasury Stock, Common, Value | 3,167 | 3,167 |
Additional Paid in Capital | 293,242 | 290,799 |
Retained earnings | 349,656 | 235,027 |
Total Green Brick Partners, Inc. stockholders’ equity | 640,242 | 523,168 |
Noncontrolling interests | 9,167 | 13,227 |
Total equity | 649,409 | 536,395 |
Total liabilities and equity | 988,847 | 875,539 |
Contract with Customer, Liability, Revenue Recognized | $ 38,131 | $ 23,954 |
Consolidated Balance Sheets _Pa
Consolidated Balance Sheets [Parenthetical] | Dec. 31, 2020$ / sharesshares |
Statement of Financial Position [Abstract] | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 |
Common Stock, Shares, Outstanding | 50,661,919 |
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 |
Preferred Stock, Shares Authorized | 5,000,000 |
Preferred Stock, Shares Outstanding | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Total revenues | $ 976,021 | $ 791,660 | $ 623,647 |
Total cost of revenues | 741,417 | 622,578 | 469,445 |
Total gross profit | 234,604 | 169,082 | 154,202 |
Selling, general and administrative expenses | (112,134) | (97,775) | (80,039) |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | (368) | (4,906) | (1,693) |
Income (Loss) from Equity Method Investments | 16,654 | 9,809 | 7,259 |
Other income, net | 4,057 | 8,119 | 1,942 |
Income before income taxes | 142,813 | 84,329 | 81,671 |
Income tax expense | 25,016 | 20,027 | 17,136 |
Net income | 117,797 | 64,302 | 64,535 |
Less: Net income attributable to noncontrolling interests | 4,104 | 5,646 | 12,912 |
Net income attributable to Green Brick Partners, Inc. | $ 113,693 | $ 58,656 | $ 51,623 |
Net income attributable to Green Brick Partners, Inc. per common share: | |||
Earnings Per Share, Basic | $ 2.25 | $ 1.16 | $ 1.02 |
Earnings Per Share, Diluted | $ 2.24 | $ 1.16 | $ 1.02 |
Weighted average common shares used in the calculation of net income attributable to Green Brick Partners, Inc. per common share: | |||
Weighted Average Number of Shares Outstanding, Basic | 50,568 | 50,530 | 50,652 |
Weighted Average Number of Shares Outstanding, Diluted | 50,795 | 50,636 | 50,751 |
Residential Real Estate [Member] | |||
Total revenues | $ 930,176 | $ 759,830 | $ 578,893 |
Total cost of revenues | 705,866 | 597,884 | 433,279 |
Real Estate, Other [Member] | |||
Total revenues | 45,845 | 31,830 | 44,754 |
Total cost of revenues | $ 35,551 | $ 24,694 | $ 36,166 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Noncontrolling Interest | Southgate Homes [Member] | Southgate Homes [Member]Retained Earnings | Southgate Homes [Member]Noncontrolling Interest | Centre Living [Member] | Centre Living [Member]Retained Earnings | Centre Living [Member]Noncontrolling Interest | CB JENI | CB JENIRetained Earnings | CB JENINoncontrolling Interest |
Retained Earnings (Accumulated Deficit) | $ 125,903 | ||||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 16,691 | ||||||||||||
Common Stock, Shares, Issued | 50,598,901 | ||||||||||||
Common Stock, Value, Issued | $ 506 | ||||||||||||
Treasury Stock, Shares | 0 | ||||||||||||
Treasury Stock, Common, Value | $ 0 | ||||||||||||
Stockholders' Equity Attributable to Parent | 416,347 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Additional Paid in Capital | 289,938 | ||||||||||||
Balance at Dec. 31, 2018 | 485,632 | ||||||||||||
Balance at Dec. 31, 2017 | 433,038 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Amortization of deferred share-based compensation | 404 | ||||||||||||
APIC, Share-based Payment Arrangement, Option, Increase for Cost Recognition | 288 | ||||||||||||
Contributions from noncontrolling interests | $ 5 | ||||||||||||
Stock Issued During Period, Shares, Acquisitions | 20,000 | ||||||||||||
Stock Issued During Period, Value, Acquisitions | $ 0 | $ 0 | $ 0 | ||||||||||
Temporary Equity, Accretion to Redemption Value, Adjustment | (2,145) | ||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Purchase of Interest by Parent | $ (891) | $ 891 | $ (891) | ||||||||||
Treasury Stock, Shares, Acquired | (136,756,000) | ||||||||||||
Treasury Stock, Value, Acquired, Cost Method | $ (981) | ||||||||||||
Issuance of common stock under 2014 Equity Plan (in shares) | 140,211 | ||||||||||||
Issuance of common stock under 2014 Omnibus Equity Incentive Plan | $ 1,082 | 1 | 1,081 | ||||||||||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | $ (412) | 0 | 412 | ||||||||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (39,228) | ||||||||||||
Distributions | $ (10,747) | ||||||||||||
Net Income (Loss) Attributable to Parent | 51,623 | ||||||||||||
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest | 11,332 | ||||||||||||
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | 62,955 | ||||||||||||
Retained Earnings (Accumulated Deficit) | 177,526 | ||||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 17,281 | ||||||||||||
Common Stock, Shares, Issued | 50,719,884 | ||||||||||||
Common Stock, Value, Issued | $ 507 | ||||||||||||
Treasury Stock, Shares | (136,756) | ||||||||||||
Treasury Stock, Value | $ (981) | ||||||||||||
Stockholders' Equity Attributable to Parent | 468,351 | ||||||||||||
Additional Paid in Capital | 291,299 | ||||||||||||
Balance at Dec. 31, 2019 | 536,395 | ||||||||||||
Balance at Dec. 31, 2018 | 485,632 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Amortization of deferred share-based compensation | 489 | ||||||||||||
APIC, Share-based Payment Arrangement, Option, Increase for Cost Recognition | 236 | ||||||||||||
Contributions from noncontrolling interests | $ 3,600 | ||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Purchase of Interest by Parent | $ (264) | $ (264) | $ 264 | ||||||||||
Treasury Stock, Shares, Acquired | (255,183) | ||||||||||||
Treasury Stock, Value, Acquired, Cost Method | $ (2,186) | ||||||||||||
Issuance of common stock under 2014 Equity Plan (in shares) | 219,181 | ||||||||||||
Issuance of common stock under 2014 Omnibus Equity Incentive Plan | $ 1,466 | 3 | 1,463 | ||||||||||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | $ (544) | 1 | 543 | ||||||||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (59,116) | ||||||||||||
Distributions | $ (10,993) | $ (10,993) | |||||||||||
Net Income (Loss) Attributable to Parent | 58,656 | ||||||||||||
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest | 2,184 | ||||||||||||
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | 60,840 | ||||||||||||
Retained Earnings (Accumulated Deficit) | 235,027 | ||||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 13,227 | ||||||||||||
Common Stock, Shares, Issued | 50,879,949 | ||||||||||||
Common Stock, Value, Issued | $ 509 | ||||||||||||
Treasury Stock, Shares | (391,939) | ||||||||||||
Treasury Stock, Value | $ (3,167) | ||||||||||||
Treasury Stock, Common, Value | (3,167) | ||||||||||||
Stockholders' Equity Attributable to Parent | 523,168 | ||||||||||||
Additional Paid in Capital | 290,799 | ||||||||||||
Balance at Dec. 31, 2020 | 649,409 | ||||||||||||
Balance at Dec. 31, 2019 | 536,395 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Amortization of deferred share-based compensation | 497 | ||||||||||||
Contributions from noncontrolling interests | $ 400 | ||||||||||||
Temporary Equity, Accretion to Redemption Value, Adjustment | 940 | ||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Purchase of Interest by Parent | $ (936) | $ (936) | $ (936) | ||||||||||
Issuance of common stock under 2014 Equity Plan (in shares) | 249,617 | ||||||||||||
Issuance of common stock under 2014 Omnibus Equity Incentive Plan | $ 1,600 | 3 | 1,597 | ||||||||||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | $ (592) | $ 1 | $ (591) | ||||||||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (75,708) | ||||||||||||
Distributions | $ (5,251) | ||||||||||||
Net Income (Loss) Attributable to Parent | 113,693 | ||||||||||||
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest | 1,727 | ||||||||||||
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | 115,420 | ||||||||||||
Retained Earnings (Accumulated Deficit) | $ 349,656 | ||||||||||||
Common stock, shares authorized (in shares) | 100,000,000 | ||||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 9,167 | ||||||||||||
Common Stock, Shares, Issued | 51,053,858 | ||||||||||||
Common Stock, Value, Issued | $ 511 | ||||||||||||
Treasury Stock, Shares | (391,939) | ||||||||||||
Treasury Stock, Value | $ (3,167) | ||||||||||||
Treasury Stock, Common, Value | (3,167) | ||||||||||||
Stockholders' Equity Attributable to Parent | 640,242 | ||||||||||||
Additional Paid in Capital | $ 293,242 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 117,797,000 | $ 64,302,000 | $ 64,535,000 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization expense | 3,666,000 | 3,079,000 | 2,943,000 |
Share-based compensation expense | 2,097,000 | 2,191,000 | 1,774,000 |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 368,000 | 4,906,000 | 1,693,000 |
Deferred income taxes, net | (114,000) | 1,237,000 | 14,712,000 |
Income (Loss) from Equity Method Investments | (16,654,000) | (9,809,000) | (7,259,000) |
Allowances For Option Deposits And Pre-Acquisition Costs | 1,513,000 | 884,000 | 663,000 |
Distributions of income from unconsolidated entities | 10,936,000 | 5,084,000 | 4,623,000 |
Changes in operating assets and liabilities: | |||
(Increase) decrease in receivables | (504,000) | 122,000 | (3,029,000) |
Increase in inventory | (90,345,000) | (83,970,000) | (129,291,000) |
(Increase) decrease in earnest money deposits | (9,069,000) | 2,107,000 | 2,119,000 |
Increase in other assets | (3,739,000) | (2,409,000) | (3,404,000) |
(Decrease) increase in accounts payable | (5,523,000) | 3,953,000 | (483,000) |
Increase (decrease) in accrued expenses | 15,760,000 | (4,384,000) | 9,470,000 |
Payment for Contingent Consideration Liability, Operating Activities | (5,267,000) | (1,332,000) | 0 |
Increase (Decrease) in Contract with Customer, Liability | 14,177,000 | (8,024,000) | 1,458,000 |
Net cash provided by (used in) operating activities | 35,099,000 | (22,063,000) | (39,476,000) |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | 0 | (26,861,000) |
Cash flows from investing activities: | |||
Investments in unconsolidated entities | (10,431,000) | (5,300,000) | (755,000) |
Purchase of property and equipment | (2,867,000) | (2,569,000) | (3,211,000) |
Net cash used in investing activities | (13,298,000) | (7,869,000) | (30,827,000) |
Cash flows from financing activities: | |||
Borrowings from lines of credit | 354,500,000 | 224,000,000 | 165,000,000 |
Proceeds from Issuance of Senior Long-term Debt | 37,500,000 | 75,000,000 | 0 |
Payments of Debt Issuance Costs | (527,000) | (1,974,000) | (870,000) |
Repayments of lines of credit | (412,500,000) | (260,000,000) | (70,000,000) |
Proceeds from Notes Payable | 10,714,000 | 0 | 0 |
Repayments of notes payable | (8,590,000) | 0 | (10,226,000) |
Payment for Contingent Consideration Liability, Financing Activities | 0 | (514,000) | 0 |
Payments of withholding tax on vesting of restricted stock awards | (592,000) | (544,000) | (412,000) |
Payments for Repurchase of Common Stock | 0 | (2,186,000) | (981,000) |
Contributions from noncontrolling interests | 400,000 | 3,600,000 | 5,000 |
Distributions to noncontrolling interests | (5,251,000) | (10,993,000) | (10,747,000) |
Proceeds from (Payments for) Other Financing Activities | (1,505,000) | (527,000) | 0 |
Net cash (used in) provided by financing activities | (25,851,000) | 25,862,000 | 71,769,000 |
Net (decrease) increase in cash and cash equivalents and restricted cash | (4,050,000) | (4,070,000) | 1,466,000 |
Restricted Cash | 14,156,000 | 4,416,000 | 3,440,000 |
Cash | 19,479,000 | 33,269,000 | 38,315,000 |
Cash and restricted cash | 33,635,000 | 37,685,000 | 41,755,000 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest, net of capitalized interest | 0 | 0 | 0 |
Cash paid for income taxes, net of refunds | $ 20,541,000 | $ 14,313,000 | $ 4,611,000 |
Intangible Assets, Goodwill and
Intangible Assets, Goodwill and Other - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill and Intangible Assets Disclosure [Text Block] | Intangible Assets On April 26, 2018 (the “Acquisition Date”), following a series of transactions, the Company acquired substantially all of the assets and assumed certain liabilities of GHO Homes Corporation and its affiliates (“GHO”) through a newly formed subsidiary, GRBK GHO Homes, LLC (“GRBK GHO”), in which the Company holds an 80% controlling interest. Intangible assets related to the acquired trade name were recognized in this business combination. The amortization of the acquired intangible assets of $0.2 million for the period from April 26, 2018 through December 31, 2018 was recorded in selling, general and administrative expense in the consolidated statements of income. The accumulated amortization of the acquired intangible assets was $0.2 million as of December 31, 2018. The amortization of the acquired trade name of $0.1 million for each of the years ended December 31, 2020 and 2019, respectively, was recorded in selling, general and administrative expense in the consolidated statements of income. The accumulated amortization of the acquired trade name was $0.2 million and $0.1 million as of December 31, 2020 and December 31, 2019, respectively. The estimated amortization expense related to the acquired trade name for each of the next five years as of December 31, 2020 is as follows (in thousands): 2021 $ 85 2022 85 2023 85 2024 85 2025 85 Total $ 425 Goodwill The allocation to goodwill represents the excess of the purchase price, including contingent consideration, over the estimated fair value of assets acquired and liabilities assumed. Goodwill results primarily from operational synergies expected from the business combination. The Company performed its annual goodwill impairment testing during the fourth quarter of 2020 by first completing a qualitative assessment in accordance with ASC 350. The Company determined that it was not more likely than not that the reporting unit’s estimated fair value was less than its carrying value and, therefore, a quantitative impairment test was unnecessary. The Company did not record any goodwill impairment during the years ended December 31, 2020, 2019 and 2018. Contingent Consideration In connection with this business combination, the Company may be obligated to pay contingent consideration to our partner if certain annual performance targets are met over the three-year period following the Acquisition Date. The performance targets specified in the purchase agreement were met for the period from April 26, 2018 through December 31, 2018, and contingent consideration of $1.8 million was earned by the minority partner and paid by the Company in April 2019 in addition to a $0.5 million distribution of income. The performance targets specified in the purchase agreement were met for the period from January 1, 2019 through December 31, 2019, and the contingent consideration of $5.3 million was earned by the minority partner and paid by the Company in April 2020 in addition to a $1.5 million distribution of income. The performance targets specified in the purchase agreement were met for the period from January 1, 2020 through December 31, 2020, and the contingent consideration of $0.4 million was earned by the minority partner. As of December 31, 2020, the estimate of the undiscounted contingent consideration payouts for the period from January 1, 2021 through April 26, 2021 was $0.0 million. The change in the range of estimates of the undiscounted contingent consideration compared to the range of estimates disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 was due to revision of the Company’s forecasts of GRBK GHO profits and capital requirements. Redeemable Noncontrolling Interest in Equity of Consolidated Subsidiary As part of the GRBK GHO business combination, we entered into a put/call agreement (“Put/Call Agreement”) with respect to the equity interest in the joint venture held by the minority partner. The Put/Call Agreement provided that the 20% ownership interest in GRBK GHO held by the minority partner would be subject to put and purchase options starting in April 2024. The exercise price would be based on the financial results of GRBK GHO for the three years prior to exercise of the option. If the minority partner does not exercise the put option, we have the option, but not the obligation, to buy the 20% interest in GRBK GHO from our partner. Based on the nature of the put/call structure, the noncontrolling interest attributable to the 20% minority interest owned by our Florida-based partner is included as redeemable noncontrolling interest in equity of consolidated subsidiary in the Company’s consolidated financial statements. The following table shows the changes in redeemable noncontrolling interest in equity of consolidated subsidiary during the year ended December 31, 2020 (in thousands): Years Ended December 31, 2020 2019 Redeemable noncontrolling interest, beginning of period $ 13,611 $ 8,531 Net income attributable to redeemable noncontrolling interest partner 2,377 3,462 Distributions of income to redeemable noncontrolling interest partner (1,505) (527) Change in fair value of redeemable noncontrolling interest (940) 2,145 Redeemable noncontrolling interest, end of period $ 13,543 $ 13,611 | |
Amortization of Intangible Assets | $ 100,000 | |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 200,000 | $ 0.1 |
Organization, Consolidation and
Organization, Consolidation and Presentation of Financial Statements | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entity Disclosure [Text Block] | 3. VARIABLE INTEREST ENTITIES Effective November 30, 2019, we, through our wholly owned subsidiary, SGHDAL LLC (“Southgate”), acquired the remaining membership and voting interests in our subsidiary, Southgate Homes DFW LLC. As a result, Southgate became an indirect wholly owned subsidiary of the Company, was no longer considered a VIE and was consolidated based on the majority voting interest pursuant to ASC 810. Effective December 31, 2019, we, through our wholly owned subsidiary, CLH20, LLC (“Centre Living”), acquired the remaining membership and voting interests in our subsidiary, Centre Living Homes, LLC, and we contributed certain real estate inventory assets to Centre Living. As both Centre Living, to which ownership interests were assigned and assets and liabilities were transferred, and Centre Living Homes, LLC were controlled by the Company on December 31, 2019, the acquisition of the remaining membership interest and the contribution of the real estate inventory assets were accounted for at carrying amounts on Centre Living Homes, LLC’s books on the date of the transfer, pursuant to provisions of ASC 805 that govern transactions between entities under common control. Subsequently, the prior owner of a portion of the membership and voting interests in Centre Living Homes, LLC acquired a ten percent membership and voting interest in Centre Living for $3.6 million. As a result, as of December 31, 2019, Centre Living was an indirect subsidiary in which the Company owned a ninety percent membership interest and a ninety percent voting interest, was no longer considered a VIE and was consolidated based on the majority voting interest pursuant to ASC 810. During the three months ended March 31, 2020, the minority interest owner made a $0.4 million cash contribution to Centre Living. On April 29, 2020, through a series of transactions, the Company acquired the remaining membership and voting interests in our subsidiary, CB JENI Homes DFW LLC (“CB JENI”). As a result, CB JENI became an indirect wholly owned subsidiary of the Company, was no longer considered a VIE and was consolidated based on the majority voting interest pursuant to ASC 810. As both the entity wholly owned by the Company to which CB JENI ownership interests were assigned and CB JENI were controlled by the Company on April 29, 2020, the acquisition of the remaining membership interest was accounted for at the carrying amounts on CB JENI’s books, pursuant to provisions of ASC 805 that govern transactions between entities under common control. Consolidated VIEs The Providence Group of Georgia LLC (“TPG”), the controlled builder based in Atlanta, in which the Company owns a 50% equity interest, is deemed to be a VIE for which the Company is considered the primary beneficiary. We sell finished lots and option lots from third-party developers to this controlled builder for their homebuilding operations and provide them with construction financing and strategic planning. The board of managers of this controlled builder has the power to direct the activities that significantly impact the controlled builder’s economic performance. Pursuant to the Company’s agreement with this controlled builder, the Company has the ability to appoint two of the three members to the controlled builder’s board of managers. A majority of the board of managers constitutes a quorum to transact business. No action can be approved by the board of managers without the approval from at least one individual whom the Company has appointed at the controlled builder. The Company has the ability to control the activities of the controlled builder that most significantly impact the controlled builder’s economic performance. Such activities include, but are not limited to, involvement in the day to day capital and operating decisions, the ability to determine the budget and plan, the ability to control financing decisions, and the ability to acquire additional land or dispose of land. In addition, the Company has the right to receive the expected residual returns and obligation to absorb the expected losses of the controlled builder through the pro rata profits and losses we are allocated based on our ownership interest. Therefore, the financial statements of the Atlanta-based controlled builder are consolidated in the Company’s consolidated financial statements following the variable interest model. The aggregated carrying amounts of assets and liabilities of TPG following the variable interest model were $131.9 million and $125.5 million, respectively, as of December 31, 2020 and $126.8 million and $116.8 million, respectively, as of December 31, 2019. The noncontrolling interest attributable to the 50% minority interest owned by the Atlanta-based controlled builder was included as noncontrolling interests in the Company’s consolidated financial statements. The creditors of the above controlled builder have no recourse against the Company. Unconsolidated VIEs Please refer to Note 5 for information on the Company’s VIE evaluation of its joint ventures with EJB River Holdings, LLC and GBTM Sendera, LLC. Land and lot option purchase contracts The Company evaluates all option contracts to purchase land and lots to determine whether they are VIEs and, if so, whether the Company is the primary beneficiary of counterparts of these option contracts. Although the Company does not have legal title to the optioned land or lots, if the Company is deemed to be the primary beneficiary of or makes a significant deposit for optioned land or lots, it may need to consolidate the land or lots under option at the purchase price of the optioned land or lots. |
Stockholders_ equity Stockholde
Stockholders’ equity Stockholders' Equity (Notes) - USD ($) $ / shares in Units, $ in Thousands | Aug. 05, 2019 | Sep. 30, 2019 | Jul. 31, 2019 | Jun. 30, 2019 | Jan. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Equity [Abstract] | ||||||||||
Stockholders' Equity Note Disclosure [Text Block] | Common Stock Pursuant to the Company’s amended and restated certificate of incorporation (“Certificate of Incorporation”), the Company is authorized to issue up to 100,000,000 shares of common stock, par value $0.01 per share. As of December 31, 2020, there were 51,053,858 shares of common stock issued and 50,661,919 outstanding. On March 16, 2018, 20,000 shares of common stock were issued as additional consideration for the investment in Challenger upon resolution of terms for such holdback shares. Preferred Stock Pursuant to the Company’s Certificate of Incorporation, the Company is authorized to issue up to 5,000,000 shares of preferred stock, par value $0.01 per share. The Board of Directors (the “Board”) has the authority, subject to any limitations imposed by law or Nasdaq rules, without further action by the stockholders, to issue such preferred stock in one or more series and to fix the voting powers (if any), the preferences and relative, participating, optional or other special rights or privileges, if any, of such series and the qualifications, limitations or restrictions thereof. These rights, preferences and privileges may include, but are not limited to, dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences, sinking fund terms and the number of shares constituting any series or the designation of that series. As of December 31, 2020, there were no shares of preferred stock issued and outstanding. Share Repurchase Programs In October 2018, the Company’s Board authorized a share repurchase program for the period beginning on October 3, 2018 and ending on October 3, 2020 of the Company’s common stock for an aggregate price not to exceed $30.0 million (the “2018 Share Repurchase Program”). The timing, volume and nature of share repurchases are at the discretion of management and dependent on market conditions, corporate and regulatory requirements, available cash and other factors, and may be suspended or discontinued at any time. Authorized repurchases may be made from time to time in the open market, through block trades or in privately negotiated transactions. No assurance can be given that any particular amount of common stock will be repurchased. All or part of the repurchases may be implemented under a trading plan under Rule 10b5-1 or Rule 10b-18 established by the SEC, which would allow repurchases under pre-set terms at times when the Company might otherwise be prevented from doing so under insider trading laws or because of self-imposed blackout periods. This repurchase program may be modified, extended or terminated by the Board at any time. The Company intends to finance any repurchases with available cash and proceeds from borrowings under lines of credit. In December 2018, the Company repurchased 136,756 shares for approximately $1.0 million. On December 31, 2018, the Company’s Board authorized implementation of share repurchases in accordance with a trading plan under Rule 10b5-1 (the “December 2018 Trading Plan”) within the 2018 Share Repurchase Program. The trading plan was effective from January 2, 2019 until March 30, 2019. In January 2019, the Company repurchased 7,862 shares for approximately $0.1 million under the December 2018 Trading Plan. In June 2019, the Company’s Board authorized discrete repurchases under the 2018 Share Repurchase Program of 39,320 shares for approximately $0.3 million. On June 27, 2019, the Company’s Board authorized implementation of share repurchases in accordance with a trading plan under Rule 10b5-1 (the “June 2019 Trading Plan”) within the 2018 Share Repurchase Program. The trading plan was effective from July 1, 2019 until August 5, 2019. In July 2019, the Company repurchased 144,584 shares for approximately $1.2 million under the June 2019 Trading Plan. In September 2019, the Company’s Board authorized discrete repurchases under the 2018 Share Repurchase Program of 63,417 shares for approximately $0.6 million. | |||||||||
Class of Stock [Line Items] | ||||||||||
Common stock, shares authorized (in shares) | 100,000,000 | |||||||||
Stock repurchased in period (in shares) | 63,417 | 144,584 | 39,320 | 7,862 | ||||||
Stock Repurchase Program, Authorized Amount | $ 30,000 | |||||||||
Treasury Stock, Shares, Acquired | 136,756 | 255,183 | 136,756,000 | |||||||
Treasury Stock, Value, Acquired, Cost Method | $ 1,000 | $ 2,186 | $ 981 | |||||||
Preferred Stock, Shares Authorized | 5,000,000 | |||||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | |||||||||
Preferred Stock, Shares Outstanding | 0 | |||||||||
Common stock, par value (in dollars per share) | $ 0.01 | |||||||||
Document Period End Date | Dec. 31, 2020 | |||||||||
Common Stock, Shares, Issued | 50,719,884 | 51,053,858 | 50,879,949 | 50,719,884 | 50,598,901 | |||||
Common Stock, Shares, Outstanding | 50,661,919 | |||||||||
Stock Issued During Period, Shares, Acquisitions | 20,000 | |||||||||
Stock Repurchased During Period, Value | $ 600 | $ 1,200 | $ 300 | $ 100 | ||||||
Stock Repurchase Program Expiration Date | Aug. 5, 2019 |
Share-Based Compensation Disclo
Share-Based Compensation Disclosures | Oct. 27, 2014shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)non-employee$ / sharesshares | Dec. 31, 2017$ / sharesshares |
Share-based Payment Arrangement [Abstract] | |||||
Share-based Payment Arrangement [Text Block] | SHARE-BASED COMPENSATION 2014 Omnibus Equity Incentive Plan On October 17, 2014, the Company’s stockholders approved the Green Brick Partners, Inc. 2014 Omnibus Equity Incentive Plan (the “2014 Equity Plan”). The purpose of the 2014 Equity Plan is to provide a means for the Company to attract and retain key personnel and to provide a means whereby current and prospective directors, officers, employees, consultants and advisors can acquire and maintain an equity interest in the Company, or be paid incentive compensation, which may (but need not) be measured by reference to the value of the Company’s common stock, thereby strengthening their commitment to the welfare of the Company and aligning their interests with those of the Company’s stockholders. The 2014 Equity Plan will terminate automatically on the tenth anniversary of the date it became effective. No awards will be granted under the 2014 Equity Plan after that date, but awards granted prior to that date may extend beyond that date. Under the 2014 Equity Plan, awards of stock options, including both incentive stock options and nonqualified stock options, stock appreciation rights, restricted stock and restricted stock units, other share-based awards and performance compensation awards, may be granted. The maximum number of shares of the Company’s common stock that is authorized and reserved for issuance under the 2014 Equity Plan is 2,350,956 shares, subject to adjustment for certain corporate events or changes in the Company’s capital structure. In general, the Company’s employees or those reasonably expected to become the Company’s employees, consultants and directors, are eligible for awards under the 2014 Equity Plan, provided that incentive stock options may be granted only to employees. The Company has six non-employee directors and approximately 440 employees (including employees of our builders) who are eligible to receive awards under the 2014 Equity Plan. Written agreements between the Company and each participant evidence the terms of each award granted under the 2014 Equity Plan. If any award under the 2014 Equity Plan expires or otherwise terminates, in whole or in part, without having been exercised in full, the common stock withheld from issuance under that award will become available for future issuance under the plan. If shares issued under the 2014 Equity Plan are reacquired by the Company pursuant to the terms of any forfeiture provision, those shares will become available for future awards under the plan. Awards that can only be settled in cash will not be treated as shares of common stock granted for purposes of the 2014 Equity Plan. The maximum amount that can be paid to any single participant in any one calendar year pursuant to a cash bonus award under the 2014 Equity Plan is $2.0 million. As of December 31, 2020, 1,482,794 shares remain available for future grant of awards under the 2014 Equity Plan. Share-Based Award Activity During the years ended December 31, 2020, 2019 and 2018 the Company granted restricted stock awards (“RSAs”) under the 2014 Equity Plan to Executive Officers (“EOs”) and non-employee members of the Board. The RSAs granted to EOs were 100% vested and non-forfeitable on the grant date. Some members of the Board elected to defer up to 100% of their annual retainer fee in the form of common stock. The RSAs granted to the Board will become fully vested on the earlier of (i) the first anniversary of the date of grant of the shares of restricted common stock or (ii) the date of the Company’s 2020 Annual Meeting of Stockholders. The fair value of the RSAs granted to EOs and non-employee members of the Board were recorded as share-based compensation expense on the grant date and over the vesting period, respectively. During the years ended December 31, 2020, 2019 and 2018, the Company withheld 75,708; 59,116; and 39,228 shares, respectively, of common stock from EOs, at a total cost of $0.6 million, $0.5 million, and $0.4 million, for the respective periods, to satisfy statutory minimum tax requirements upon grant of the RSAs. A summary of share-based awards activity during the years ended December 31, 2020, 2019 and 2018 is as follows: Number of Shares (in thousands) Weighted Average Grant Date Fair Value per Share Nonvested, December 31, 2017 38 $ 10.25 Granted 140 $ 10.45 Vested (144) $ 10.03 Forfeited — $ — Nonvested, December 31, 2018 34 $ 12.00 Granted 219 $ 9.14 Vested (194) $ 9.67 Forfeited — $ — Nonvested, December 31, 2019 59 $ 9.05 Granted 250 $ 8.63 Vested (264) $ 8.10 Forfeited — $ — Nonvested, December 31, 2020 45 $ 12.33 Stock Options Stock options granted to date were not granted under the 2014 Equity Plan. The stock options outstanding as of December 31, 2020 vested and became exercisable in five substantially equal installments on each of the first five anniversaries of the grant date and expire 10 years after the date on which they were granted. Compensation expense related to these options was expensed on a straight-line basis over the 5 years year service period. All of the stock options outstanding as of December 31, 2020 are vested. We utilized the Black-Scholes option pricing model for estimating the grant date fair value of the stock options. There were no stock options granted during the years ended December 31, 2020, 2019 and 2018. A summary of stock option activity during the year ended December 31, 2020 is as follows: Number of Shares (in thousands) Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Options outstanding, December 31, 2019 500 $ 7.49 Granted — Exercised — — Forfeited — — Options outstanding, December 31, 2020 500 $ 7.49 3.82 $ 7,735 Options exercisable, December 31, 2020 500 $ 7.49 3.82 $ 7,735 Share-Based Compensation Expense Share-based compensation expense was $2.1 million, $2.2 million and $1.8 million for the years ended December 31, 2020, 2019 and 2018, respectively. Recognized tax benefit related to share-based compensation expense was $0.4 million, $0.5 million and $0.4 million for the years ended December 31, 2020, 2019 and 2018, respectively. As of December 31, 2020, the estimated total remaining unamortized share-based compensation expense related to unvested RSAs, net of forfeitures, was $0.3 million which is expected to be recognized over a weighted-average period of 0.5 years. The total fair value of RSAs vested during the years ended December 31, 2020, 2019 and 2018 was $2.1 million, $1.9 million and $1.4 million, respectively. As of December 31, 2020, there was no remaining unamortized share-based compensation expense related to stock options. | ||||
Summary of Stock Option Activity | A summary of stock option activity during the year ended December 31, 2020 is as follows: Number of Shares (in thousands) Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Options outstanding, December 31, 2019 500 $ 7.49 Granted — Exercised — — Forfeited — — Options outstanding, December 31, 2020 500 $ 7.49 3.82 $ 7,735 Options exercisable, December 31, 2020 500 $ 7.49 3.82 $ 7,735 | ||||
Schedule of Share-based Compensation, Activity | A summary of share-based awards activity during the years ended December 31, 2020, 2019 and 2018 is as follows: Number of Shares (in thousands) Weighted Average Grant Date Fair Value per Share Nonvested, December 31, 2017 38 $ 10.25 Granted 140 $ 10.45 Vested (144) $ 10.03 Forfeited — $ — Nonvested, December 31, 2018 34 $ 12.00 Granted 219 $ 9.14 Vested (194) $ 9.67 Forfeited — $ — Nonvested, December 31, 2019 59 $ 9.05 Granted 250 $ 8.63 Vested (264) $ 8.10 Forfeited — $ — Nonvested, December 31, 2020 45 $ 12.33 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||||
Granted (in dollars per share) | $ / shares | $ 0 | ||||
Exercised (in dollars per share) | $ / shares | 0 | ||||
Forfeited (in dollars per share) | $ / shares | $ 0 | ||||
Options exercisable, aggregate intrinsic value | $ | $ 7,735,000 | ||||
Options exercisable (in dollars per share) | $ / shares | $ 7.49 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Options outstanding, beginning balance (in shares) | 500,000 | ||||
Exercised (in shares) | 0 | ||||
Forfeited (in shares) | 0 | ||||
Options outstanding, ending balance (in shares) | 500,000 | 500,000 | |||
Options exercisable (in shares) | 500,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options outstanding, weighted average remaining life (in years) | 3 years 9 months 25 days | ||||
Options exercisable, weighted average remaining life (in years) | 3 years 9 months 25 days | ||||
Options outstanding, aggregate intrinsic value | $ | $ 7,735,000 | ||||
Share-based compensation expense | $ | 2,097,000 | $ 2,191,000 | $ 1,774,000 | ||
Share-based Payment Arrangement, Expense, Tax Benefit | $ | $ (400,000) | (500,000) | (400,000) | ||
Number of shares authorized and reserved for issuance | 2,350,956 | ||||
Maximum amount to be paid to individual pursuant to cash bonus award | $ | 2,000,000 | ||||
Document Period End Date | Dec. 31, 2020 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ | $ 2,100,000 | $ 1,900,000 | $ 1,400,000 | ||
Share-based Payment Arrangement, Expense | $ | $ 2,100,000 | ||||
Number of shares available for grant | 1,482,794 | ||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (75,708) | (59,116) | (39,228) | ||
Shares granted | |||||
Per share exercise price | $ / shares | $ 7.49 | $ 7.49 | |||
Expiration period (in years) | 10 years | ||||
Payment, Tax Withholding, Share-based Payment Arrangement | $ | $ (592,000) | $ (544,000) | $ (412,000) | ||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | $ | $ 592,000 | $ 544,000 | $ 412,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 45,000 | 59,000 | 34,000 | 38,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares | $ 12.33 | $ 9.05 | $ 12 | $ 10.25 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 8.63 | $ 9.14 | $ 10.45 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 250,000 | 219,000 | 140,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (264,000) | (194,000) | (144,000) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 8.10 | $ 9.67 | $ 10.03 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | 0 | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares | $ 0 | $ 0 | $ 0 | ||
Non-employee Directors | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number eligible for awards | non-employee | 6 | ||||
Percentage of amount of retainer fee deferred (up to) | 100.00% | ||||
Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | $ | $ (1,000) | $ (1,000) | $ 0 | ||
Share-based Payment Arrangement, Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Service period | 5 years | ||||
Stock Issued During Period, Value, Stock Options Exercised | $ | $ 0 | ||||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unamortized share-based compensation expense | $ | $ 300,000 | ||||
Unamortized share-based compensation expense, weighted average period of recognition | 6 months | ||||
Restricted Stock [Member] | Officer [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of awards vested in period | 100.00% |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION Disaggregation of Revenue The following reflects the disaggregation of revenue by primary geographic market, type of customer, product type, and timing of revenue recognition (in thousands): Years Ended December 31, 2020 2019 2018 Residential units revenue Land and lots revenue Residential units revenue Land and lots revenue Residential units revenue Land and lots revenue Primary Geographical Market Central $ 644,976 $ 43,788 $ 396,900 $ 31,080 $ 281,868 $ 40,184 Southeast 285,200 2,057 362,930 750 297,025 4,570 Total revenues $ 930,176 $ 45,845 $ 759,830 $ 31,830 $ 578,893 $ 44,754 Type of Customer Homebuyers $ 930,176 $ — $ 759,830 $ 185 $ 578,893 $ 670 Homebuilders — 45,845 — 31,645 — 44,084 Total revenues $ 930,176 $ 45,845 $ 759,830 $ 31,830 $ 578,893 $ 44,754 Product Type Residential units $ 930,176 $ — $ 759,830 $ — $ 578,893 $ — Land and lots — 45,845 — 31,830 — 44,754 Total revenues $ 930,176 $ 45,845 $ 759,830 $ 31,830 $ 578,893 $ 44,754 Timing of Revenue Recognition Transferred at a point in time $ 923,901 $ 45,845 $ 752,273 $ 31,830 $ 571,177 $ 44,754 Transferred over time 6,275 — 7,557 — 7,716 — Total revenues $ 930,176 $ 45,845 $ 759,830 $ 31,830 $ 578,893 $ 44,754 Revenue recognized over time represents revenue from mechanic’s lien contracts. Contract Balances Opening and closing contract balances included in customer and builder deposits on the consolidated balance sheets are as follows (in thousands): December 31, 2020 December 31, 2019 Customer and builder deposits $ 38,131 $ 23,954 The difference between the opening and closing balances of customer and builder deposits results from the timing difference between the customer’s payment of a deposit and the Company’s performance, impacted slightly by terminations of contracts. The amount of deposits on residential units and land and lots held as of the beginning of the period and recognized as revenue during the years ended December 31, 2020 and 2019 are as follows (in thousands): 2020 2019 Type of Customer Homebuyers $ 14,149 $ 8,981 Homebuilders 5,929 3,417 Total deposits recognized as revenue $ 20,078 $ 12,398 As a result of the GRBK GHO business combination, customer deposits from homebuyers in the amount of $9.1 million were acquired, of which $8.2 million was recognized during the period from April 26, 2018 through December 31, 2018. Performance Obligations There was no revenue recognized during the years ended December 31, 2020, 2019 and 2018 from performance obligations satisfied in prior periods. Transaction Price Allocated to Remaining Performance Obligations The aggregate amount of transaction price allocated to the remaining performance obligations on our land sale and lot option contracts is $16.7 million. The Company will recognize the remaining revenue when the lots are taken down, or upon closing for the sale of a land parcel, which is expected to occur as follows (in thousands): 2021 $ 14,825 2022 1,826 Total $ 16,651 The timing of lot takedowns is contingent upon a number of factors, including customer needs, the number of lots being purchased, receipt of acceptance of the plat by the municipality, weather-related delays, and agreed-upon lot takedown schedules. Our contracts with homebuyers have a duration of less than one year. As such, the Company uses the practical expedient as allowed under ASC 606 and has not disclosed the transaction price allocated to remaining performance obligations as of the end of the reporting period. |
Fair Value Measurements
Fair Value Measurements - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |||
Payment for Contingent Consideration Liability, Financing Activities | $ 0 | $ 514 | $ 0 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The reconciliation of the beginning and ending balances for level 3 measurements is as follows (in thousands): Carrying Value Estimated Fair Value Contingent consideration liability, balance as of December 31, 2019 $ 5,267 $ 5,267 Payment of contingent consideration in excess of acquisition date fair value (5,267) (5,267) Change in fair value of contingent consideration 368 368 Contingent consideration liability, balance as of December 31, 2020 $ 368 $ 368 | ||
Payment for Contingent Consideration Liability, Operating Activities | $ 5,267 | 1,332 | 0 |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 368 | 4,906 | 1,693 |
Business Combination, Contingent Consideration, Liability | $ 368 | 5,267 | |
Impairment of Tangible Assets, Other Descriptors | $ 100 | $ 100 | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair Value of Financial Instruments The Company’s financial instruments, none of which are held for trading purposes, include cash, restricted cash, receivables, earnest money deposits, other assets, accounts payable, accrued expenses, customer and builder deposits, borrowings on lines of credit, senior unsecured notes, and contingent consideration liability. Per the fair value hierarchy, level 1 financial instruments include: cash, restricted cash, receivables, earnest money deposits, other assets, accounts payable, accrued expenses, and customer and builder deposits due to their short-term nature. The Company estimates that, due to the short-term nature of the underlying financial instruments or the proximity of the underlying transaction to the applicable reporting date, the fair value of level 1 financial instruments does not differ materially from the aggregate carrying values recorded in the consolidated financial statements as of December 31, 2020 and 2019. Level 2 financial instruments include borrowings on lines of credit and senior unsecured notes. Due to the short-term nature and floating interest rate terms, the carrying amounts of borrowings on lines of credit are deemed to approximate fair value. The estimated fair value of the senior unsecured notes as of December 31, 2020 was $125.2 million. The fair value of the contingent consideration liability related to the GRBK GHO business combination was estimated using an internally developed discounted cash flow analysis. As the measurement of the contingent consideration is based primarily on significant inputs not observable in the market, it represents a level 3 measurement. Key inputs in measuring the fair value of the contingent consideration liability are management’s projections of GRBK GHO’s net income and debt, and the annual discount rate of 16.5% that reflects the risk associated with achieving the milestones of the contingent consideration payments. The reconciliation of the beginning and ending balances for level 3 measurements is as follows (in thousands): Carrying Value Estimated Fair Value Contingent consideration liability, balance as of December 31, 2019 $ 5,267 $ 5,267 Payment of contingent consideration in excess of acquisition date fair value (5,267) (5,267) Change in fair value of contingent consideration 368 368 Contingent consideration liability, balance as of December 31, 2020 $ 368 $ 368 There were no transfers between the levels of the fair value hierarchy for any of our financial instruments as of December 31, 2020 when compared to December 31, 2019. Fair Value of Nonfinancial Instruments |
Significant Accounting Policies
Significant Accounting Policies (Policies) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Document Period End Date | Dec. 31, 2020 | ||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets In accordance with ASC 360, our property and equipment and right-of-use assets related to operating leases are reviewed for possible impairment if there are indicators that their carrying amounts are not recoverable. The carrying amount of a long-lived asset is considered not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. An impairment loss shall be measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value. | ||
Deposit Contracts, Policy [Policy Text Block] | Earnest Money Deposits In the ordinary course of business, the Company enters into land and lot option contracts in order to procure land for the construction of homes in the future. Pursuant to these option contracts, the Company generally provides a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. Such contracts enable the Company to defer acquiring portions of properties owned by third parties or unconsolidated entities until the Company has determined whether and when to exercise its option, which reduces the Company’s financial risk associated with long-term land holdings. Option deposits and pre-acquisition costs (such as environmental testing, surveys, engineering, and entitlement costs) are capitalized if the costs are directly identifiable with the land under option and acquisition of the property is probable. Such costs are reflected in earnest money deposits and are reclassified to inventory upon taking title to the land. The Company writes off deposits and pre-acquisition costs if it becomes probable that the Company will not proceed with the project or recover the capitalized costs. Such decisions take into consideration changes in local market conditions, the timing of required land takedowns, the availability and best use of necessary incremental capital, and other factors. | ||
Net operating loss carryforward | $ 13,700,000 | ||
Deferred tax assets | $ 16,454,000 | 16,609,000 | |
Deferred income tax assets, net | 15,376,000 | 15,262,000 | |
Valuation allowance for deferred tax assets | $ 0 | 0 | $ (1,063,000) |
Advertising Expense | Advertising Expense The Company expenses advertising costs as incurred. Advertising costs are included in selling, general and administrative expense in the consolidated statements of income. Advertising expense for the years ended December 31, 2020, 2019 and 2018 totaled $2.2 million, $2.1 million and $1.5 million, respectively. | ||
Selling, general and administrative expense | $ 112,134,000 | 97,775,000 | 80,039,000 |
Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) as set forth in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) and applicable regulations of the Securities and Exchange Commission (“SEC”). Principles of Consolidation The accompanying consolidated financial statements include the accounts of Green Brick Partners, Inc., its controlled subsidiaries, and variable interest entities in which Green Brick Partners, Inc. or one of its controlled subsidiaries is deemed to be the primary beneficiary (together, the “Company”, “we”, or “Green Brick”). The Company evaluated its wholly-owned subsidiaries and controlled builder under ASC 810, Consolidation (“ASC 810”) and concluded that its controlled builder is a variable interest entity (“VIE”). The Company owns a 50% equity interest and a 51% voting interest in its controlled builder. In addition, the Company appoints two of the three board managers of its controlled builder and is able to exercise control over its operations. The Company accounts for its controlled builder under the variable interest model and is the primary beneficiary of its controlled builder in accordance with ASC 810. All intercompany balances and transactions have been eliminated in consolidation. The Company uses the equity method of accounting for its investments in unconsolidated entities over which it exercises significant influence but does not have a controlling interest. Under the equity method, the Company’s share of the unconsolidated entities’ earnings or losses is included in the consolidated statements of income. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management of the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes, including the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation with no impact to net income in any period. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. The cash balances of the Company are held with multiple financial institutions. At times, cash balances at certain banks and financial institutions may exceed insurable amounts. The Company believes it mitigates this risk by monitoring the financial stability of institutions holding material cash balances. The Company has not experienced any losses in such accounts and believes that the risk of loss is minimal. Restricted Cash Restricted cash primarily relates to cash held in escrow for sales of developed lots to third parties and customer deposits from homebuyers. Receivables Receivables consist of amounts collectible from manufacturing rebates earned by our homebuilders during the normal course of business, amounts collectible from third-party escrow agents related to closings on land, lots and homes, amounts collectible related to mechanic’s lien contracts, as well as income tax receivables. As of December 31, 2020 and 2019, all amounts are considered fully collectible and no allowance for doubtful accounts is recorded. Any allowance for doubtful accounts is estimated based on our historical losses, the existing economic conditions, and the financial stability of our customers. Receivables are written off in the period that they are deemed uncollectible. Inventory and Cost of Revenues Inventory consists of undeveloped land, raw land scheduled for development, land in the process of development, land held for sale, developed lots, homes completed and under construction, and model homes. Inventory is valued at cost unless the carrying value is determined to be not recoverable in which case the affected inventory is written down to fair value. Cost includes any related pre-acquisition costs that are directly identifiable with a specific property so long as those pre-acquisition costs are anticipated to be recoverable at the sale of the property. Residential lots held for sale and lots held for development include the initial cost of acquiring the land as well as certain costs capitalized related to developing the land into individual residential lots including direct overhead, interest and real estate taxes. Land development and other project costs, including direct overhead, interest and property taxes incurred during development and home construction, are capitalized. Land development and other common costs that benefit an entire community are allocated to individual lots or homes based on relative sales value. The costs of completed lots are transferred to work in process when home construction begins. Home construction costs and related carrying charges (principally interest and real estate taxes) are allocated to the cost of individual homes. Inventory costs for completed homes are expensed upon closing and delivery of the homes. Changes to estimated total land development costs subsequent to initial home closings in a community are generally allocated to the unclosed homes and lots in the community on a pro-rata basis. The life cycle of a community generally ranges from 24 to 72 months, commencing with the acquisition of land, continuing through the land development phase, construction, and concluding with the sale and delivery of homes. We recognize costs as incurred on our mechanic’s lien contracts. Impairment of Inventory In accordance with ASC 360, Property, Plant, and Equipment (“ASC 360”), we evaluate our inventory for indicators of impairment by individual community and development during each reporting period. For our builder operations segments, during each reporting period, community gross margins on closed homes, average margins of homes within backlog, and community outlook factors are reviewed by management. In the event that this review suggests higher potential for losses at a specific community, the Company monitors such communities by adding them to its “watchlist” communities, and, when an impairment indicator is present, further analysis is performed. For our land development segment, we perform a quarterly review for indicators of impairment for each project which involves comparing anticipated lot sale revenues to projected costs (i.e. lot gross margins). For lots designated for our builders, we review land for indicators of impairment on a consolidated level, looking at overall projected home gross margins. In determining the allocation of costs to a particular land parcel, we rely on project budgets which are based on a variety of assumptions, including assumptions about development schedules and future costs to be incurred. It is common that actual results differ from budgeted amounts for various reasons, including delays, changes in costs that have not been committed, unforeseen issues encountered during project development that fall outside the scope of existing contracts, or items that ultimately cost more or less than the budgeted amount. We apply procedures to maintain best estimates in our budgets, including assessing and revising project budgets on a periodic basis, obtaining commitments from subcontractors and vendors for future costs to be incurred and utilizing the most recent information available to estimate costs. Each reporting period, management reviews each real estate asset which has an indicator of impairment in order to determine whether the estimated remaining undiscounted future cash flows are more or less than the asset’s carrying value. The estimated cash flows are determined by projecting the remaining revenue from closings based on the contractual lot takedowns remaining or historical and projected home sales or delivery absorptions for homebuilding operations and then comparing such projections to the remaining projected expenditures for development or home construction. Remaining projected expenditures are based on the most current pricing/bids received from subcontractors for current phases or homes under development. For future phases of land development, management uses its judgment to project potential cost increases. In determining the estimated cash flows for land held for sale, management considers recent comparisons to market comparable transactions, bona fide letters of intent from outside parties, executed sales contracts, broker quotes, and similar information. When projecting revenue, management does not assume improvement in market conditions. If the estimated undiscounted cash flows are more than the asset’s carrying value, no impairment adjustment is required. However, if the estimated undiscounted cash flows are less than the asset’s carrying value, the asset is deemed impaired and will be written down to fair value less associated costs to sell. These impairment evaluations require us to make estimates and assumptions regarding future conditions, including the timing and amounts of development costs and sales prices of real estate assets, to determine if expected future cash flows will be sufficient to recover the asset’s carrying value. Fair value is determined based on estimated future cash flows discounted for inherent risks associated with real estate assets. These discounted cash flows are impacted by expected risk based on estimated land development activities, construction and delivery timelines, market risk of price erosion, uncertainty of development or construction cost increases, and other risks specific to the asset or market conditions where the asset is located when the assessment is made. These factors are specific to each community and may vary among communities. When estimating cash flows of a community, management makes various assumptions, including: (i) expected sales prices and sales incentives to be offered, including the number of homes available, pricing and incentives being offered by us or other builders, and future sales price adjustments based on market and economic trends; (ii) expected sales pace and cancellation rates based on local housing market conditions, competition and historical trends; (iii) costs expended to date and expected to be incurred including, but not limited to, land and land development costs, home construction costs, interest costs, indirect construction and overhead costs, and selling and marketing costs; (iv) alternative product offerings that may be offered that could have an impact on sales pace, sales price and/or building costs; and (v) alternative uses for the property. Many assumptions are interdependent and a change in one may require a corresponding change to other assumptions. For example, increasing or decreasing sales absorption rates has a direct impact on the estimated per unit sales price of a home, the level of time-sensitive costs (such as indirect construction, overhead and carrying costs), and selling and marketing costs (such as model home maintenance costs and advertising costs). Due to uncertainties in the estimation process, the volatility in demand for new housing and the long life cycle of many communities, actual results could differ significantly from such estimates. Capitalization of Interest The Company capitalizes interest costs incurred to inventory during development and other qualifying activities. Interest capitalized as cost of inventory is charged to cost of revenues as related homes, land and lots are closed. Interest incurred on undeveloped land is directly expensed and included in interest expense in our consolidated statements of income. Investments in Unconsolidated Entities In accordance with ASC 323, Investments - Equity Method and Joint Ventures (“ASC 323”) , the Company uses the equity method of accounting for its investments in unconsolidated entities over which it exercises significant influence but does not have a controlling interest. The equity method of accounting requires the investment to be initially recorded at cost and subsequently adjusted for the Company ’ s share of equity in the unconsolidated entity’s earnings or losses . The Company evaluates the carrying amount of the investments in unconsolidated entities for impairment in accordance with ASC 323. If the Company determines that a loss in the value of the investment is other than temporary, the Company writes down the investment to its estimated fair value. Any such losses are recorded to e quity in income of unconsolidated entities in the Company ’ s consolidated statements of income. Due to uncertainties in the estimation process and the volatility in demand for new housing, actual results could differ significantly from such estimates. The Company has made an election to classify distributions received from unconsolidated entities using the nature of the distribution approach. Distributions received are classified as cash inflows from operating activities based on the nature of the activities of the investee that generated the distribution. Variable Interest Entities The Company accounts for variable interest entities (“VIEs”) in accordance with ASC 810. In accordance with ASC 810, an entity is a VIE 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 the VIE that most significantly impacts 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, the Company performs ongoing reassessments of whether it is the primary beneficiary of a VIE. The financial statements of the VIEs for which the Company is considered to be the primary beneficiary, if any, are consolidated in the Company’s consolidated financial statements. The noncontrolling interests attributable to other beneficiaries of the VIEs are included as noncontrolling interests in the Company’s consolidated financial statements. Property and Equipment, Net Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed over the estimated useful lives of the assets using the straight-line method. The estimated useful lives of assets range from 1 to 15 years. Repairs and maintenance are expensed as incurred. Impairment of Long-Lived Assets In accordance with ASC 360, our property and equipment and right-of-use assets related to operating leases are reviewed for possible impairment if there are indicators that their carrying amounts are not recoverable. The carrying amount of a long-lived asset is considered not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. An impairment loss shall be measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value. Earnest Money Deposits In the ordinary course of business, the Company enters into land and lot option contracts in order to procure land for the construction of homes in the future. Pursuant to these option contracts, the Company generally provides a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. Such contracts enable the Company to defer acquiring portions of properties owned by third parties or unconsolidated entities until the Company has determined whether and when to exercise its option, which reduces the Company’s financial risk associated with long-term land holdings. Option deposits and pre-acquisition costs (such as environmental testing, surveys, engineering, and entitlement costs) are capitalized if the costs are directly identifiable with the land under option and acquisition of the property is probable. Such costs are reflected in earnest money deposits and are reclassified to inventory upon taking title to the land. The Company writes off deposits and pre-acquisition costs if it becomes probable that the Company will not proceed with the project or recover the capitalized costs. Such decisions take into consideration changes in local market conditions, the timing of required land takedowns, the availability and best use of necessary incremental capital, and other factors. Under ASC 810, a non-refundable deposit paid to an entity is deemed to be a variable interest that will absorb some or all of the entity’s expected losses if they occur and, as such, the Company’s land and lot option contracts are considered variable interests. The Company’s option contract deposits along with any related pre-acquisition costs represent the Company’s maximum exposure to the land seller if the Company elects not to purchase the optioned property. Therefore, whenever the Company enters into an option or purchase contract with an entity and makes a non-refundable deposit, a VIE assessment is performed. However, the Company generally has little control or power to direct the activities that most significantly impact the VIE’s economic performance due to the Company’s lack of an equity interest in them. Additionally, creditors of the VIE typically have no material recourse against the Company, and the Company does not provide financial or other support to these VIEs other than as stipulated in the option contracts. In accordance with ASC 810, the Company performs ongoing reassessments of whether the Company is the primary beneficiary of a VIE. Intangible Assets Intangible assets, net consists of the estimated fair value of the acquired trade name, net of amortization. The trade name has a definite life and is amortized over ten years. Intangible assets are tested for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss would be recognized if the carrying amount of the asset exceeds the estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. The impairment loss recorded would be the excess of the asset’s carrying value over its fair value. Fair value would be determined using a discounted cash flow analysis or other valuation technique. Goodwill The excess of the purchase price of a business acquisition over the net fair value of assets acquired and liabilities assumed is capitalized as goodwill in accordance with ASC 805, Business Combinations (“ASC 805”). Goodwill is assessed for impairment at least annually in the fourth quarter, or more frequently if certain impairment indicators are present. A goodwill impairment loss is recognized for the amount by which the carrying amount of the reporting unit, including goodwill, exceeds its fair value. The Company reviews goodwill at the reporting unit level for impairment. The Company first performs a qualitative assessment to determine whether it is more likely than not that fair value of the reporting level is less than its carrying amount. Qualitative factors include adverse macroeconomic conditions, industry and market conditions, overall financial performance, reporting unit specific events and entity specific events. If, after completing a qualitative assessment, the Company concludes that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, the Company must perform a quantitative test to evaluate goodwill for impairment. For the quantitative impairment test, the Company calculates the fair value of the reporting unit and compares that amount to the reporting unit’s carrying value. The fair value of the reporting unit is determined by using generally accepted valuation techniques, including discounted cash flow models and market multiple analysis. The Company’s valuation methodology for assessing impairment would require management to make judgments and assumptions based on historical experience and projections of future operating performance. The Company recognizes goodwill impairment, if any, as the excess of the reporting unit’s carrying value over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. Warranties The Company accrues an estimate of its exposure to warranty claims based on both current and historical home closings data and warranty costs incurred. The Company offers homeowners a comprehensive third-party warranty on each home. Homes are generally covered by a ten-year warranty for qualified and defined structural defects, one year for defects and products used, and two years for electrical, plumbing, heating, ventilation, and air conditioning parts and labor. Warranty accruals are included within accrued expenses on the consolidated balance sheets. Any legal costs associated with loss contingencies related to warranties are expensed as incurred. Debt Issuance Costs Debt issuance costs represent costs incurred related to the senior unsecured notes and revolving secured and unsecured credit facilities, including amendments thereto, and reduce the carrying amount of debt on the consolidated balance sheets. These costs are subject to capitalization to inventory over the term of the related debt facility using the straight-line method. Business Combinations Acquisitions are accounted for in accordance with ASC 805. Following the determination that control of a business and its inputs, processes and outputs were obtained in exchange for consideration, all material assets and liabilities of the business, including contingent consideration, are measured and recognized at fair value as of the date of the acquisition to reflect the purchase price. Depending on the fair value of net assets acquired, the purchase price allocation may or may not result in goodwill. Contingent consideration is subsequently remeasured to fair value at each reporting date until the contingency is resolved, with any change in fair value recognized in the consolidated statements of income. Redeemable Noncontrolling Interest in Equity of Consolidated Subsidiary Redeemable noncontrolling interest in equity of consolidated subsidiary represents equity related to a put option held by a minority shareholder of a subsidiary. Based on the put option structure, the minority shareholder’s interest in the controlled subsidiary is classified as a redeemable noncontrolling interest on the consolidated balance sheets. The accretion of the redeemable noncontrolling interest to its estimated redemption value is recorded in additional paid-in capital on the consolidated balance sheets if the estimated redemption value, net of accretion, is greater than the current value of the noncontrolling interest capital account. Revenue Recognition Contracts with Customers The Company derives revenues from two primary sources: the closing and delivery of homes through our builder operations segments and the closing of lots sold to homebuilders through our land development segment. All of our revenue is from contracts with customers. Contract Liabilities The Company requires homebuyers to submit a deposit for home purchases and requires third-party builders to submit a deposit in connection with land sale or lot option contracts. The non-refundable deposits serve as an incentive for performance under homebuilding and land sale or development contracts. Cash received as customer deposits, if held in escrow, is reflected as restricted cash and as customer and builder deposits on the consolidated balance sheets. Performance Obligations The Company’s contracts with homebuyers contain a single performance obligation. The performance obligation is satisfied when homes are completed and legal title has been transferred to the buyer. The Company does not have any variable consideration associated with home sales transactions. Revenue from mechanic’s lien contracts in which the Company serves as the general contractor for custom homes where the customer, and not the Company, owns the underlying land and improvements is recognized based on the input method, where progress toward completion is measured by relating the actual cost of work performed to date to the estimated total cost of the respective contracts. Lot option contracts contain multiple performance obligations. The performance obligations are satisfied as lots are closed and legal title has been transferred to the builder. For lot option contracts, individual performance obligations are accounted for separately. The transaction price is allocated to the separate performance obligations on a relative stand-alone selling price basis. Certain lot option contracts require escalations in lot price over the option period. Any escalator is not collectible until the lot closing occurs. While we recognize lot escalators as variable consideration within the transaction price, we do not recognize escalator revenue until a builder closes on a lot subject to an escalator as the escalator relates to general inflation and holding costs. Occasionally, the Company sells developed and undeveloped land parcels. If the land parcel is developed prior to the sale of the land, the revenue is recognized at closing since we deliver a single performance obligation in the form of a developed parcel. We also recognize revenue at closing on undeveloped land parcel sales as there are no other obligations beyond delivering the undeveloped land. Homebuyers are not obligated to pay for a home until the closing and delivery of the home. The selling price of a home is based on the contract price adjusted for any change orders, which are considered modifications of the contract price. Homebuilders are not obligated to pay for developed lots prior to control of the lots and any associated improvements being transferred to them. The term of our lot option contracts is generally based upon the number of lots being purchased and an agreed upon lot takedown schedule, which can be in excess of one year. Lots cannot be taken down until development is substantially complete. There is no significant financing component related to our third-party lot sales. The Company does not sell warranties outside of the customary workmanship warranties provided on homes or developed lots at the time of sale. The warranties offered to homebuyers are short term, with the exception of ten-year warranties on structural concerns for homes. As these are assurance-type warranties, there is no separate performance obligation related to warranties provided to homebuyers or homebuilder. Significant Judgments and Estimates There are no significant judgments involved in the recognition of residential units revenue. The performance obligation of delivering a completed home is satisfied upon the sale closing when title transfers to the buyer. There are no significant judgments involved in the recognition of land and lots revenue. The performance obligation of delivering land and lots is satisfied upon the closing of the sale when title transfers to the homebuilder. Contract Costs The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if it expects to recover those costs. The Company pays sales commissions to employees and/or outside realtors related to individual home sales which are expensed as incurred at the time of closing. Commissions on the sale of land parcels are also expensed as incurred upon closing. Sales commissions on the sale of homes are included in the selling, general, and administrative expenses in the consolidated statements of income. The Company also pays builder incentives to employees which are based on the time it takes to build individual homes, as well as quality inspection completion and customer satisfaction. The builder incentives do not represent incremental costs that would require capitalization as we would incur these costs whether or not we sold the home. As such, we recognize builder incentives as expense at the time they are incurred and paid. Advertising costs, sales salaries and certain costs associated with model homes, such as signage, do not qualify for capitalization under ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers , as they are not incremental costs of obtaining a contract. As such, we expense these costs to selling, general and administrative expense as incurred. Costs incurred related to model home furnishings and sales office construction are capitalized and included in property and equipment, net on the consolidated balance sheets. Selling, General and Administrative Expense Selling, general and administrative expense represents salaries, benefits, share-based compensation, property taxes on finished homes, sales commissions, depreciation, amortization, advertising and marketing, rent, and other administrative items, and is recorded in the period incurred. Advertising Expense The Company expenses advertising costs as incurred. Advertising costs are included in selling, general and administrative expense in the consolidated statements of income. Advertising expense for the years ended December 31, 2020, 2019 and 2018 totaled $2.2 million, $2.1 million and $1.5 million, respectively. Interest Expense Interest expense consists primarily of interest costs incurred on our debt that are not capitalized, and amortization of debt issuance costs. We capitalize interest costs incurred to inventory during development and other qualifying activities. Debt issuance costs are capitalized to inventory over the term of the underlying debt using the straight-line method, in accordance with our interest capitalization policy. All interest costs were capitalized during the years ended December 31, 2020, 2019 and 2018. Net Income Attributable to Green Brick Partners, Inc. per Share The Company’s restricted stock awards have the right to receive forfeitable dividends on an equal basis with common stock and therefore are not considered participating securities that must be included in the calculation of net income per share using the two-class method. Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during each period, adjusted for non-vested shares of restricted stock awards during each period. Diluted earnings per share is calculated using the treasury stock method and includes the effect of all dilutive securities, including stock options and restricted stock awards. Cost Recognition Lot acquisition, materials, direct costs, interest and indirect costs related to the acquisition, development, and construction of lots and homes are capitalized. Direct and indirect costs of developing residential lots are allocated evenly to all applicable lots. Capitalized costs of residential lots are charged to earnings when the related revenue is recognized. Non-capitalizable costs in connection with developed lots and completed homes and other selling and administrative costs are charged to earnings when incurred. Share-Based Compensation The Company measures and accounts for share-based awards in accordance with ASC 718, Compensation - Stock Compensation . The Company expenses share-based payment awards made to employees and directors, including stock options and restricted stock awards. Share-based compensation expense associated with stock options and restricted stock awards with vesting contingent upon the achievement of service conditions is recognized on a straight-line basis, net of estimated forfeitures, over the requisite service period over wh | ||
Allowance for doubtful accounts | $ 0 | ||
Goodwill and Intangible Assets, Policy [Policy Text Block] | Intangible Assets Intangible assets, net consists of the estimated fair value of the acquired trade name, net of amortization. The trade name has a definite life and is amortized over ten years. Intangible assets are tested for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss would be recognized if the carrying amount of the asset exceeds the estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. The impairment loss recorded would be the excess of the asset’s carrying value over its fair value. Fair value would be determined using a discounted cash flow analysis or other valuation technique. Goodwill The excess of the purchase price of a business acquisition over the net fair value of assets acquired and liabilities assumed is capitalized as goodwill in accordance with ASC 805, Business Combinations (“ASC 805”). Goodwill is assessed for impairment at least annually in the fourth quarter, or more frequently if certain impairment indicators are present. A goodwill impairment loss is recognized for the amount by which the carrying amount of the reporting unit, including goodwill, exceeds its fair value. The Company reviews goodwill at the reporting unit level for impairment. The Company first performs a qualitative assessment to determine whether it is more likely than not that fair value of the reporting level is less than its carrying amount. Qualitative factors include adverse macroeconomic conditions, industry and market conditions, overall financial performance, reporting unit specific events and entity specific events. If, after completing a qualitative assessment, the Company concludes that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, the Company must perform a quantitative test to evaluate goodwill for impairment. | ||
Basis of Presentation | Basis of PresentationThe accompanying consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) as set forth in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) and applicable regulations of the Securities and Exchange Commission (“SEC”). | ||
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of Green Brick Partners, Inc., its controlled subsidiaries, and variable interest entities in which Green Brick Partners, Inc. or one of its controlled subsidiaries is deemed to be the primary beneficiary (together, the “Company”, “we”, or “Green Brick”). The Company evaluated its wholly-owned subsidiaries and controlled builder under ASC 810, Consolidation (“ASC 810”) and concluded that its controlled builder is a variable interest entity (“VIE”). The Company owns a 50% equity interest and a 51% voting interest in its controlled builder. In addition, the Company appoints two of the three board managers of its controlled builder and is able to exercise control over its operations. The Company accounts for its controlled builder under the variable interest model and is the primary beneficiary of its controlled builder in accordance with ASC 810. All intercompany balances and transactions have been eliminated in consolidation. The Company uses the equity method of accounting for its investments in unconsolidated entities over which it exercises significant influence but does not have a controlling interest. Under the equity method, the Company’s share of the unconsolidated entities’ earnings or losses is included in the consolidated statements of income. | ||
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management of the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes, including the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. | ||
Reclassification, Policy [Policy Text Block] | ReclassificationsCertain prior period amounts have been reclassified to conform to the current period presentation with no impact to net income in any period. | ||
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. The cash balances of the Company are held with multiple financial institutions. At times, cash balances at certain banks and financial institutions may exceed insurable amounts. The Company believes it mitigates this risk by monitoring the financial stability of institutions holding material cash balances. The Company has not experienced any losses in such accounts and believes that the risk of loss is minimal. | ||
Restricted Cash | Restricted CashRestricted cash primarily relates to cash held in escrow for sales of developed lots to third parties and customer deposits from homebuyers. | ||
Accounts Receivable and Allowance for Doubtful Accounts | Receivables Receivables consist of amounts collectible from manufacturing rebates earned by our homebuilders during the normal course of business, amounts collectible from third-party escrow agents related to closings on land, lots and homes, amounts collectible related to mechanic’s lien contracts, as well as income tax receivables. As of December 31, 2020 and 2019, all amounts are considered fully collectible and no allowance for doubtful accounts is recorded. Any allowance for doubtful accounts is estimated based on our historical losses, the existing economic conditions, and the financial stability of our customers. Receivables are written off in the period that they are deemed uncollectible. | ||
Inventory and Impairment of Real Estate Inventory | Inventory and Cost of Revenues Inventory consists of undeveloped land, raw land scheduled for development, land in the process of development, land held for sale, developed lots, homes completed and under construction, and model homes. Inventory is valued at cost unless the carrying value is determined to be not recoverable in which case the affected inventory is written down to fair value. Cost includes any related pre-acquisition costs that are directly identifiable with a specific property so long as those pre-acquisition costs are anticipated to be recoverable at the sale of the property. Residential lots held for sale and lots held for development include the initial cost of acquiring the land as well as certain costs capitalized related to developing the land into individual residential lots including direct overhead, interest and real estate taxes. Land development and other project costs, including direct overhead, interest and property taxes incurred during development and home construction, are capitalized. Land development and other common costs that benefit an entire community are allocated to individual lots or homes based on relative sales value. The costs of completed lots are transferred to work in process when home construction begins. Home construction costs and related carrying charges (principally interest and real estate taxes) are allocated to the cost of individual homes. Inventory costs for completed homes are expensed upon closing and delivery of the homes. Changes to estimated total land development costs subsequent to initial home closings in a community are generally allocated to the unclosed homes and lots in the community on a pro-rata basis. The life cycle of a community generally ranges from 24 to 72 months, commencing with the acquisition of land, continuing through the land development phase, construction, and concluding with the sale and delivery of homes. We recognize costs as incurred on our mechanic’s lien contracts. Impairment of Inventory In accordance with ASC 360, Property, Plant, and Equipment (“ASC 360”), we evaluate our inventory for indicators of impairment by individual community and development during each reporting period. For our builder operations segments, during each reporting period, community gross margins on closed homes, average margins of homes within backlog, and community outlook factors are reviewed by management. In the event that this review suggests higher potential for losses at a specific community, the Company monitors such communities by adding them to its “watchlist” communities, and, when an impairment indicator is present, further analysis is performed. For our land development segment, we perform a quarterly review for indicators of impairment for each project which involves comparing anticipated lot sale revenues to projected costs (i.e. lot gross margins). For lots designated for our builders, we review land for indicators of impairment on a consolidated level, looking at overall projected home gross margins. In determining the allocation of costs to a particular land parcel, we rely on project budgets which are based on a variety of assumptions, including assumptions about development schedules and future costs to be incurred. It is common that actual results differ from budgeted amounts for various reasons, including delays, changes in costs that have not been committed, unforeseen issues encountered during project development that fall outside the scope of existing contracts, or items that ultimately cost more or less than the budgeted amount. We apply procedures to maintain best estimates in our budgets, including assessing and revising project budgets on a periodic basis, obtaining commitments from subcontractors and vendors for future costs to be incurred and utilizing the most recent information available to estimate costs. Each reporting period, management reviews each real estate asset which has an indicator of impairment in order to determine whether the estimated remaining undiscounted future cash flows are more or less than the asset’s carrying value. The estimated cash flows are determined by projecting the remaining revenue from closings based on the contractual lot takedowns remaining or historical and projected home sales or delivery absorptions for homebuilding operations and then comparing such projections to the remaining projected expenditures for development or home construction. Remaining projected expenditures are based on the most current pricing/bids received from subcontractors for current phases or homes under development. For future phases of land development, management uses its judgment to project potential cost increases. In determining the estimated cash flows for land held for sale, management considers recent comparisons to market comparable transactions, bona fide letters of intent from outside parties, executed sales contracts, broker quotes, and similar information. When projecting revenue, management does not assume improvement in market conditions. If the estimated undiscounted cash flows are more than the asset’s carrying value, no impairment adjustment is required. However, if the estimated undiscounted cash flows are less than the asset’s carrying value, the asset is deemed impaired and will be written down to fair value less associated costs to sell. These impairment evaluations require us to make estimates and assumptions regarding future conditions, including the timing and amounts of development costs and sales prices of real estate assets, to determine if expected future cash flows will be sufficient to recover the asset’s carrying value. Fair value is determined based on estimated future cash flows discounted for inherent risks associated with real estate assets. These discounted cash flows are impacted by expected risk based on estimated land development activities, construction and delivery timelines, market risk of price erosion, uncertainty of development or construction cost increases, and other risks specific to the asset or market conditions where the asset is located when the assessment is made. These factors are specific to each community and may vary among communities. When estimating cash flows of a community, management makes various assumptions, including: (i) expected sales prices and sales incentives to be offered, including the number of homes available, pricing and incentives being offered by us or other builders, and future sales price adjustments based on market and economic trends; (ii) expected sales pace and cancellation rates based on local housing market conditions, competition and historical trends; (iii) costs expended to date and expected to be incurred including, but not limited to, land and land development costs, home construction costs, interest costs, indirect construction and overhead costs, and selling and marketing costs; (iv) alternative product offerings that may be offered that could have an impact on sales pace, sales price and/or building costs; and (v) alternative uses for the property. Many assumptions are interdependent and a change in one may require a corresponding change to other assumptions. For example, increasing or decreasing sales absorption rates has a direct impact on the estimated per unit sales price of a home, the level of time-sensitive costs (such as indirect construction, overhead and carrying costs), and selling and marketing costs (such as model home maintenance costs and advertising costs). Due to uncertainties in the estimation process, the volatility in demand for new housing and the long life cycle of many communities, actual results could differ significantly from such estimates. | ||
Equity Method Investments | Investments in Unconsolidated Entities In accordance with ASC 323, Investments - Equity Method and Joint Ventures (“ASC 323”) , the Company uses the equity method of accounting for its investments in unconsolidated entities over which it exercises significant influence but does not have a controlling interest. The equity method of accounting requires the investment to be initially recorded at cost and subsequently adjusted for the Company ’ s share of equity in the unconsolidated entity’s earnings or losses . The Company evaluates the carrying amount of the investments in unconsolidated entities for impairment in accordance with ASC 323. If the Company determines that a loss in the value of the investment is other than temporary, the Company writes down the investment to its estimated fair value. Any such losses are recorded to e quity in income of unconsolidated entities in the Company ’ s consolidated statements of income. Due to uncertainties in the estimation process and the volatility in demand for new housing, actual results could differ significantly from such estimates. The Company has made an election to classify distributions received from unconsolidated entities using the nature of the distribution approach. Distributions received are classified as cash inflows from operating activities based on the nature of the activities of the investee that generated the distribution. | ||
Capitalization of Interest | Capitalization of Interest The Company capitalizes interest costs incurred to inventory during development and other qualifying activities. Interest capitalized as cost of inventory is charged to cost of revenues as related homes, land and lots are closed. Interest incurred on undeveloped land is directly expensed and included in interest expense in our consolidated statements of income. | ||
Earnest Money Deposits | Variable Interest EntitiesThe Company accounts for variable interest entities (“VIEs”) in accordance with ASC 810. In accordance with ASC 810, an entity is a VIE 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 the VIE that most significantly impacts 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, the Company performs ongoing reassessments of whether it is the primary beneficiary of a VIE. The financial statements of the VIEs for which the Company is considered to be the primary beneficiary, if any, are consolidated in the Company’s consolidated financial statements. The noncontrolling interests attributable to other beneficiaries of the VIEs are included as noncontrolling interests in the Company’s consolidated financial statements. | ||
Property and Equipment, Net | Property and Equipment, NetProperty and equipment are stated at cost less accumulated depreciation. Depreciation is computed over the estimated useful lives of the assets using the straight-line method. The estimated useful lives of assets range from 1 to 15 years. Repairs and maintenance are expensed as incurred. | ||
Warranties | Warranties The Company accrues an estimate of its exposure to warranty claims based on both current and historical home closings data and warranty costs incurred. The Company offers homeowners a comprehensive third-party warranty on each home. Homes are generally covered by a ten-year warranty for qualified and defined structural defects, one year for defects and products used, and two years for electrical, plumbing, heating, ventilation, and air conditioning parts and labor. Warranty accruals are included within accrued expenses on the consolidated balance sheets. Any legal costs associated with loss contingencies related to warranties are expensed as incurred. | ||
Net Income Attributable to Green Brick Partners, Inc. Per Share | Net Income Attributable to Green Brick Partners, Inc. per Share The Company’s restricted stock awards have the right to receive forfeitable dividends on an equal basis with common stock and therefore are not considered participating securities that must be included in the calculation of net income per share using the two-class method. Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during each period, adjusted for non-vested shares of restricted stock awards during each period. Diluted earnings per share is calculated using the treasury stock method and includes the effect of all dilutive securities, including stock options and restricted stock awards. | ||
Cost Recognition | Cost Recognition Lot acquisition, materials, direct costs, interest and indirect costs related to the acquisition, development, and construction of lots and homes are capitalized. Direct and indirect costs of developing residential lots are allocated evenly to all applicable lots. Capitalized costs of residential lots are charged to earnings when the related revenue is recognized. Non-capitalizable costs in connection with developed lots and completed homes and other selling and administrative costs are charged to earnings when incurred. | ||
Debt Issuance Costs | Debt Issuance Costs Debt issuance costs represent costs incurred related to the senior unsecured notes and revolving secured and unsecured credit facilities, including amendments thereto, and reduce the carrying amount of debt on the consolidated balance sheets. These costs are subject to capitalization to inventory over the term of the related debt facility using the straight-line method. | ||
Share-based Compensation | Share-Based Compensation The Company measures and accounts for share-based awards in accordance with ASC 718, Compensation - Stock Compensation . The Company expenses share-based payment awards made to employees and directors, including stock options and restricted stock awards. Share-based compensation expense associated with stock options and restricted stock awards with vesting contingent upon the achievement of service conditions is recognized on a straight-line basis, net of estimated forfeitures, over the requisite service period over which the awards are expected to vest. The Company estimates the value of stock options with vesting contingent upon the achievement of service conditions as of the date the award was granted using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the use of certain input variables, such as expected volatility, risk-free interest rate and expected award life. | ||
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases, operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in years in which temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company regularly reviews historical and anticipated future pre-tax results of operations to determine whether we will be able to realize the benefit of deferred tax assets. A valuation allowance is required to reduce the deferred tax asset when it is more-likely-than-not that all or some portion of the deferred tax asset will not be realized due to the lack of sufficient taxable income. The Company assesses the recoverability of deferred tax assets and the need for a valuation allowance on an ongoing basis. In making this assessment, management considers all available positive and negative evidence and available income tax planning to determine whether it is more-likely-than-not that some portion or all of the deferred tax assets will be realized in future periods. This assessment requires significant judgment and estimates involving current and deferred income taxes, tax attributes relating to the interpretation of various tax laws, historical bases of tax attributes associated with certain assets and limitations surrounding the realization of deferred tax assets. We establish accruals for uncertain tax positions that reflect our best estimate of deductions and credits that may not be sustained on a more-likely-than-not basis. We recognize interest and penalties related to uncertain tax positions in the income tax expense in the consolidated statements of income. Accrued interest and penalties, if any, are included within accrued expenses on the consolidated balance sheets. In accordance with ASC 740, Income Taxes , the Company recognizes the effect of income tax positions only if those positions have a more-likely-than-not chance of being sustained by the Company. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. | ||
Revenue from Contract with Customer [Policy Text Block] | Revenue Recognition Contracts with Customers The Company derives revenues from two primary sources: the closing and delivery of homes through our builder operations segments and the closing of lots sold to homebuilders through our land development segment. All of our revenue is from contracts with customers. Contract Liabilities The Company requires homebuyers to submit a deposit for home purchases and requires third-party builders to submit a deposit in connection with land sale or lot option contracts. The non-refundable deposits serve as an incentive for performance under homebuilding and land sale or development contracts. Cash received as customer deposits, if held in escrow, is reflected as restricted cash and as customer and builder deposits on the consolidated balance sheets. Performance Obligations The Company’s contracts with homebuyers contain a single performance obligation. The performance obligation is satisfied when homes are completed and legal title has been transferred to the buyer. The Company does not have any variable consideration associated with home sales transactions. Revenue from mechanic’s lien contracts in which the Company serves as the general contractor for custom homes where the customer, and not the Company, owns the underlying land and improvements is recognized based on the input method, where progress toward completion is measured by relating the actual cost of work performed to date to the estimated total cost of the respective contracts. Lot option contracts contain multiple performance obligations. The performance obligations are satisfied as lots are closed and legal title has been transferred to the builder. For lot option contracts, individual performance obligations are accounted for separately. The transaction price is allocated to the separate performance obligations on a relative stand-alone selling price basis. Certain lot option contracts require escalations in lot price over the option period. Any escalator is not collectible until the lot closing occurs. While we recognize lot escalators as variable consideration within the transaction price, we do not recognize escalator revenue until a builder closes on a lot subject to an escalator as the escalator relates to general inflation and holding costs. Occasionally, the Company sells developed and undeveloped land parcels. If the land parcel is developed prior to the sale of the land, the revenue is recognized at closing since we deliver a single performance obligation in the form of a developed parcel. We also recognize revenue at closing on undeveloped land parcel sales as there are no other obligations beyond delivering the undeveloped land. Homebuyers are not obligated to pay for a home until the closing and delivery of the home. The selling price of a home is based on the contract price adjusted for any change orders, which are considered modifications of the contract price. Homebuilders are not obligated to pay for developed lots prior to control of the lots and any associated improvements being transferred to them. The term of our lot option contracts is generally based upon the number of lots being purchased and an agreed upon lot takedown schedule, which can be in excess of one year. Lots cannot be taken down until development is substantially complete. There is no significant financing component related to our third-party lot sales. The Company does not sell warranties outside of the customary workmanship warranties provided on homes or developed lots at the time of sale. The warranties offered to homebuyers are short term, with the exception of ten-year warranties on structural concerns for homes. As these are assurance-type warranties, there is no separate performance obligation related to warranties provided to homebuyers or homebuilder. Significant Judgments and Estimates There are no significant judgments involved in the recognition of residential units revenue. The performance obligation of delivering a completed home is satisfied upon the sale closing when title transfers to the buyer. There are no significant judgments involved in the recognition of land and lots revenue. The performance obligation of delivering land and lots is satisfied upon the closing of the sale when title transfers to the homebuilder. Contract Costs The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if it expects to recover those costs. The Company pays sales commissions to employees and/or outside realtors related to individual home sales which are expensed as incurred at the time of closing. Commissions on the sale of land parcels are also expensed as incurred upon closing. Sales commissions on the sale of homes are included in the selling, general, and administrative expenses in the consolidated statements of income. The Company also pays builder incentives to employees which are based on the time it takes to build individual homes, as well as quality inspection completion and customer satisfaction. The builder incentives do not represent incremental costs that would require capitalization as we would incur these costs whether or not we sold the home. As such, we recognize builder incentives as expense at the time they are incurred and paid. Advertising costs, sales salaries and certain costs associated with model homes, such as signage, do not qualify for capitalization under ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers , as they are not incremental costs of obtaining a contract. As such, we expense these costs to selling, general and administrative expense as incurred. Costs incurred related to model home furnishings and sales office construction are capitalized and included in property and equipment, net on the consolidated balance sheets. | ||
Selling, General and Administrative Expenses, Policy [Policy Text Block] | Selling, General and Administrative ExpenseSelling, general and administrative expense represents salaries, benefits, share-based compensation, property taxes on finished homes, sales commissions, depreciation, amortization, advertising and marketing, rent, and other administrative items, and is recorded in the period incurred. | ||
Fair Value Measurements | Fair Value Measurements The Company has adopted and implemented the provisions of ASC 820-10, Fair Value Measurements , with respect to fair value measurements of: all elected financial assets and liabilities and any nonfinancial assets and liabilities that are recognized or disclosed in the consolidated financial statements at fair value on a recurring basis (at least annually). Under ASC 820-10, fair value is defined as an exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. These provisions establish a three-tiered fair value hierarchy that prioritizes inputs to valuation techniques used in fair value calculations. The three levels of input are defined as follows: Level 1 — unadjusted quoted prices for identical assets or liabilities in active markets accessible by the Company; Level 2 — inputs that are observable in the marketplace other than those classified as Level 1; and Level 3 — inputs that are unobservable in the marketplace and significant to the valuation. Entities are encouraged to maximize the use of observable inputs and minimize the use of unobservable inputs. If a financial instrument uses inputs that fall in different levels of the hierarchy, the instrument will be categorized based upon the lowest level of input that is significant to the fair value calculation. Our valuation methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while we believe our valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. Transfers between levels of the fair value hierarchy are deemed to have occurred on the date of the event or change in circumstances that caused the transfer. | ||
Segment Information | Segment Information In accordance with ASC 280, Segment Reporting (“ASC 280”), an operating segment is defined as a component of an enterprise for which discrete financial information is available and reviewed regularly by the chief operating decision maker (“CODM”), or decision-making group, to evaluate performance and make operating decisions. A reportable segment is an operating segment, either separately defined or aggregated from several operating segments based on similar economic and other characteristics, that exceeds certain quantitative thresholds of ASC 280. | ||
Business Combinations Policy [Policy Text Block] | Business Combinations Acquisitions are accounted for in accordance with ASC 805. Following the determination that control of a business and its inputs, processes and outputs were obtained in exchange for consideration, all material assets and liabilities of the business, including contingent consideration, are measured and recognized at fair value as of the date of the acquisition to reflect the purchase price. Depending on the fair value of net assets acquired, the purchase price allocation may or may not result in goodwill. Contingent consideration is subsequently remeasured to fair value at each reporting date until the contingency is resolved, with any change in fair value recognized in the consolidated statements of income. | ||
Temporary Equity [Policy Text Block] | Redeemable Noncontrolling Interest in Equity of Consolidated SubsidiaryRedeemable noncontrolling interest in equity of consolidated subsidiary represents equity related to a put option held by a minority shareholder of a subsidiary. Based on the put option structure, the minority shareholder’s interest in the controlled subsidiary is classified as a redeemable noncontrolling interest on the consolidated balance sheets. The accretion of the redeemable noncontrolling interest to its estimated redemption value is recorded in additional paid-in capital on the consolidated balance sheets if the estimated redemption value, net of accretion, is greater than the current value of the noncontrolling interest capital account. | ||
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which changes the impairment model for most financial assets and certain other instruments from an “incurred loss” approach to an “expected credit loss” methodology. The Company adopted the standard on January 1, 2020 using the full retrospective application. The adoption of ASU 2016-13 had no impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”), which removes Step 2 of the goodwill impairment test. A goodwill impairment will now be determined by the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The Company adopted the standard on January 1, 2020. The adoption of ASU 2017-04 had no financial impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying Accounting for Income Taxes (“ASU 2019-12”), which simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740, Income Taxes related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. ASU 2019-12 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2020, with early adoption permitted. The Company does not expect the adoption of ASU 2019-12 to have a material impact on the Company’s consolidated financial statements. | ||
Interest Expense, Policy [Policy Text Block] | Interest Expense Interest expense consists primarily of interest costs incurred on our debt that are not capitalized, and amortization of debt issuance costs. We capitalize interest costs incurred to inventory during development and other qualifying activities. Debt issuance costs are capitalized to inventory over the term of the underlying debt using the straight-line method, in accordance with our interest capitalization policy. All interest costs were capitalized during the years ended December 31, 2020, 2019 and 2018. | ||
Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 15 years | ||
Inventory, Real Estate, Community Life Cycle | 72 months | ||
Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 1 year | ||
Inventory, Real Estate, Community Life Cycle | 24 months | ||
Selling, General and Administrative Expenses [Member] | |||
Advertising Expense | $ 2,200,000 | $ 2,100,000 | $ 1,500,000 |
Intangible Assets, Goodwill a_2
Intangible Assets, Goodwill and Other (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The estimated amortization expense related to the acquired trade name for each of the next five years as of December 31, 2020 is as follows (in thousands): 2021 $ 85 2022 85 2023 85 2024 85 2025 85 Total $ 425 |
Redeemable Noncontrolling Interest [Table Text Block] | The following table shows the changes in redeemable noncontrolling interest in equity of consolidated subsidiary during the year ended December 31, 2020 (in thousands): Years Ended December 31, 2020 2019 Redeemable noncontrolling interest, beginning of period $ 13,611 $ 8,531 Net income attributable to redeemable noncontrolling interest partner 2,377 3,462 Distributions of income to redeemable noncontrolling interest partner (1,505) (527) Change in fair value of redeemable noncontrolling interest (940) 2,145 Redeemable noncontrolling interest, end of period $ 13,543 $ 13,611 |
Inventory (Tables)
Inventory (Tables) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Inventory, Real Estate [Abstract] | ||||
Inventory with potential indicators of impairment | $ 2,800 | |||
Inventory [Line Items] | ||||
Impairment of Tangible Assets, Other Descriptors | $ 100 | $ 100 | ||
Inventory Disclosure [Text Block] | INVENTORY A summary of inventory is as follows (in thousands): December 31, 2020 December 31, 2019 Homes completed or under construction $ 356,706 $ 314,966 Land and lots - developed and under development 482,371 437,553 Land held for sale 5,558 1,048 Total inventory $ 844,635 $ 753,567 A summary of interest costs incurred, capitalized and expensed is as follows (in thousands): Years Ended December 31, 2020 2019 2018 Interest capitalized at beginning of period $ 18,596 $ 14,780 $ 10,474 Interest incurred 9,823 12,140 9,003 Interest charged to cost of revenues (10,899) (8,324) (4,697) Interest capitalized at end of period $ 17,520 $ 18,596 $ 14,780 As of December 31, 2020, the Company reviewed the performance and outlook for all of its communities for indicators of potential impairment and performed detailed impairment analysis when necessary. As of December 31, 2020, the Company performed further impairment analysis of the selling communities with indicators of impairment with a combined corresponding carrying value of approximately $2.8 million. For the years ended December 31, 2020, 2019 and 2018, the Company recorded a de minimis impairment adjustment, $0.1 million, and $0.1 million, respectively, to reduce the carrying value of impaired communities to fair value. The recorded impairment adjustments related to real estate inventory in our builder operations segments and were included in cost of residential units in our consolidated statements of income. | |||
Finished Homes and Homes under Construction | $ 356,706 | 314,966 | ||
Inventory, Real Estate, Land and Land Development Costs | 482,371 | 437,553 | ||
Inventory, Land Held-for-sale | 5,558 | 1,048 | ||
Inventory, Real Estate | $ 844,635 | 753,567 | ||
Schedule of Inventory, Current [Table Text Block] | A summary of inventory is as follows (in thousands): December 31, 2020 December 31, 2019 Homes completed or under construction $ 356,706 $ 314,966 Land and lots - developed and under development 482,371 437,553 Land held for sale 5,558 1,048 Total inventory $ 844,635 $ 753,567 | |||
Real Estate Inventory, Capitalized Interest Costs [Roll Forward] | A summary of interest costs incurred, capitalized and expensed is as follows (in thousands): Years Ended December 31, 2020 2019 2018 Interest capitalized at beginning of period $ 18,596 $ 14,780 $ 10,474 Interest incurred 9,823 12,140 9,003 Interest charged to cost of revenues (10,899) (8,324) (4,697) Interest capitalized at end of period $ 17,520 $ 18,596 $ 14,780 | |||
Real Estate Inventory, Capitalized Interest Costs | $ 17,520 | 18,596 | 14,780 | $ 10,474 |
Real Estate Inventory, Capitalized Interest Costs Incurred | 9,823 | 12,140 | 9,003 | |
Real Estate Inventory, Capitalized Interest Costs, Cost of Sales | $ 10,899 | $ 8,324 | $ 4,697 |
Investment in Unconsolidated En
Investment in Unconsolidated Entities (Tables) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Oct. 31, 2019USD ($) | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)shares | Aug. 15, 2017board_seatofficer | |
Equity Method Investments and Joint Ventures [Abstract] | ||||||
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 5. INVESTMENTS IN UNCONSOLIDATED ENTITIES A summary of the Company’s investments in unconsolidated entities is as follows (in thousands): December 31, 2020 December 31, 2019 GB Challenger, LLC $ 29,488 $ 23,822 GBTM Sendera, LLC 9,846 — EJB River Holdings, LLC 5,296 5,299 Green Brick Mortgage, LLC 1,207 1,124 BHome Mortgage, LLC 606 — Providence Group Title, LLC — 49 Total investment in unconsolidated entities $ 46,443 $ 30,294 Challenger The Company holds two of the five board of managers (the “Managers”) seats of GB Challenger, LLC (“Challenger”). Challenger’s six officers, who are employees of the Challenger entities, were designated by the Managers for the purpose of managing the day to day operations. The Company does not have a controlling financial interest in Challenger as the Company has less than 50% of the voting interests in Challenger. The Company’s investment in Challenger is treated as an unconsolidated investment under the equity method of accounting and is included in investments in unconsolidated entities in the Company’s consolidated balance sheets. The Company’s investment in Challenger is carried at cost, as adjusted for the Company’s share of income or losses and distributions received, as well as for adjustments related to basis differences between the Company’s cost and the Company’s underlying equity in net assets recorded in Challenger’s financial statements as of the date of acquisition. As of December 31, 2020, the carrying value of the investment in Challenger was $29.5 million, whereas the underlying 49.9% equity in net assets of Challenger was $26.5 million. The $3.0 million difference represents the premium paid for the Company’s equity interest in excess of Challenger’s carrying value. This basis difference primarily relates to the estimated fair value of inventory, as well as the Challenger Homes trade name and capitalized acquisition costs. The amortization of the basis differences related to inventory is recorded as a reduction of equity in income of unconsolidated entities as homes are closed on and delivered to homebuyers. The basis difference related to the trade name is amortized over ten years as a reduction of equity in income of unconsolidated entities. The Company recognized $11.9 million, $8.3 million, and $7.0 million related to Challenger in equity in income of unconsolidated entities during the years ended December 31, 2020, 2019, and 2018, respectively. Providence Title In March 2018, the Company formed a joint venture with a title company in Georgia to provide title closing and settlement services to our Atlanta-based builder. The Company, through its controlled builder, The Providence Group of Georgia, L.L.C. (“TPG”), owned a 49% equity interest in Providence Group Title, LLC (“Providence Title”). The Company’s investment in Providence Title was treated as an unconsolidated investment under the equity method of accounting and included in investments in unconsolidated entities in the Company’s consolidated balance sheets. In December 2020, this joint venture was terminated and the Company incurred a de minimis loss upon dissolution. Green Brick Mortgage In June 2018, the Company formed a joint venture with PrimeLending to provide mortgage loan origination services to our builders. The Company owns a 49% equity interest in Green Brick Mortgage, LLC (“Green Brick Mortgage”) which initiated mortgage loan origination activities in September 2018. The Company determined that the investment in Green Brick Mortgage should be treated as an unconsolidated investment under the equity method of accounting and included in investments in unconsolidated entities in the Company’s consolidated balance sheets. On September 1, 2020, the Company increased its ownership interest in GRBK Mortgage, LLC from 49.00% to 49.99%. EJB River Holdings In December 2018, EJB River Holdings joint venture was formed by TPG with the purpose to acquire and develop a tract of land in Gwinnett County, Georgia to be called Waterside. In May 2019, East Jones Bridge, LLC, a Georgia limited liability company (“EJB”) was admitted as a member of EJB River Holdings, which resulted in TPG and EJB each having a 50% ownership interest in EJB River Holdings. EJB River Holdings had no activity in the period from its formation until October 2019. In October 2019, EJB River Holdings received two $5.0 million initial contributions from its two members, TPG and EJB. In December 2019, two additional contributions of $0.3 million were made by TPG and EJB to EJB River Holdings. Per EJB River Holdings’ operating agreement, TPG and EJB share equally in the profits and losses of EJB River Holdings, with the exception of certain customary fees. In October 2019, EJB River Holdings issued two loans with the total maximum amount of borrowings of $21.9 million to finance its land acquisition and development in Gwinnett County, Georgia. One of the investors in EJB issued a personal guarantee on one of the loans in the amount of $9.4 million. Subsequently, in October 2019, a wholly owned subsidiary of the Company provided a limited $2.0 million guarantee to the investor in EJB. The approximate term of the guarantee is 35 months. In the event EJB River Holdings defaults on its $9.4 million loan and the investor in EJB makes the $9.4 million payment under his personal guarantee, the maximum potential amount of future payments that the Company could be required to make under its limited guarantee is $2.0 million. As of December 31, 2020, the Company has no current liability related to the guarantee obligation as the payment risk of the guarantee has been assessed to be very low. Following the analysis of the above facts and provisions of EJB River Holdings’ operating agreement, the Company has determined that EJB River Holdings is a VIE in which the Company is not the primary beneficiary. Therefore, the investment in EJB River Holdings was treated as an unconsolidated investment under the equity method of accounting and was included in investments in unconsolidated entities in the Company’s consolidated balance sheets. As of December 31, 2020, the carrying amounts of assets and liabilities of EJB River Holdings were $29.2 million and $18.6 million, respectively. Assets were comprised of real estate inventory and cash, whereas the liabilities were comprised of loans and interest payable. As of December 31, 2020, the Company’s maximum exposure to loss as a result of its involvement with EJB River Holdings was $7.3 million, represented by the sum of the Company’s investment in EJB River Holdings of $5.3 million and the $2.0 million limited guarantee described above. BHome Mortgage In May 2020, we established a joint venture, BHome Mortgage, LLC (“BHome Mortgage”) with First Continental Mortgage, Ltd., to provide mortgage related services to homebuyers. The Company owns 49.0% in BHome Mortgage. In May 2020, BHome Mortgage received initial capital contributions of approximately $0.5 million from its two members in accordance with their membership interest. The Company determined that the investment in BHome Mortgage should be treated as an unconsolidated investment under the equity method of accounting and included in investments in unconsolidated entities in the Company’s consolidated balance sheets. GBTM Sendera, LLC In August 2020, GBTM Sendera, LLC joint venture (“GBTM Sendera”) was formed by GRBK Edgewood, LLC (“GRBK Edgewood”) and TM Sendera, LLC (“TM Sendera”) with the purpose to acquire and develop a tract of land in Fort Worth,Texas. Each party holds a 50% ownership interest in GBTM Sendera. GBTM Sendera had no activity in the period but it is expected to begin its operations in the first quarter of 2021. In August 2020, GBTM Sendera received two $9.0 million initial contributions from each of its two members, GBRK Edgewood and TM Sendera. Per the GBTM Sendera company agreement, GRBK Edgewood and TM Sendera share equally in the profits and losses of GBTM Sendera, with the exception of certain customary fees. Following the analysis of the above facts and provisions of the GBTM Sendera company agreement, the Company has determined that GBTM Sendera is a joint venture to be evaluated under the voting interest model. Therefore, the investment in GBTM Sendera is treated as an unconsolidated investment under the equity method of accounting and is included in investments in unconsolidated entities in the Company’s consolidated balance sheets. As of December 31, 2020, the carrying amount of GBTM Sendera net assets was $19.7 million. Assets were comprised of real estate inventory and cash, whereas the liabilities were comprised of accounts payable. As of December 31, 2020, the Company’s maximum exposure to loss as a result of its involvement with GBTM Sendera was $9.8 million, represented by the sum of the Company’s investment in GBTM Sendera of $9.0 million and an additional $0.8 million contribution made each by GBRK Edgewood and TM Sendera. A summary of the financial information of the unconsolidated entities that are accounted for by the equity method, as described above, is as follows (in thousands): December 31, 2020 December 31, 2019 Assets: Cash $ 12,765 $ 11,699 Accounts receivable 1,815 3,252 Bonds and notes receivable 5,942 5,864 Loans held for sale, at fair value 14,530 23,143 Inventory 122,819 73,704 Other assets 8,377 4,012 Total assets $ 166,248 $ 121,674 Liabilities: Accounts payable $ 7,171 $ 1,726 Accrued expenses and other liabilities 11,148 7,784 Notes payable 60,642 58,223 Total liabilities $ 78,961 $ 67,733 Owners’ equity: Green Brick $ 43,451 $ 25,910 Others 43,836 28,031 Total owners’ equity $ 87,287 $ 53,941 Total liabilities and owners’ equity $ 166,248 $ 121,674 Years Ended December 31, 2020 2019 2018 Revenues $ 181,724 $ 166,368 $ 166,102 Costs and expenses 145,525 144,097 148,222 Net earnings of unconsolidated entities $ 36,199 $ 22,271 $ 17,880 Company’s share in net earnings of unconsolidated entities $ 16,654 $ 9,809 $ 7,259 A summary of the Company’s share in net (losses) earnings by unconsolidated entity is as follows (in thousands): Years Ended December 31, 2020 2019 GB Challenger, LLC $ 11,899 $ 8,309 Green Brick Mortgage, LLC 4,727 1,053 Providence Group Title, LLC 12 448 EJB River Holdings, LLC (2) (1) BHome Mortgage, LLC 18 — GBTM Sendera, LLC — — Total net earnings from unconsolidated entities $ 16,654 $ 9,809 During the years ended December 31, 2020 , 2019, and 2018, the Company did not identify indicators of impairment for its investments in unconsolidated entities. | |||||
Equity Method Investments [Table Text Block] | A summary of the financial information of the unconsolidated entities that are accounted for by the equity method, as described above, is as follows (in thousands): December 31, 2020 December 31, 2019 Assets: Cash $ 12,765 $ 11,699 Accounts receivable 1,815 3,252 Bonds and notes receivable 5,942 5,864 Loans held for sale, at fair value 14,530 23,143 Inventory 122,819 73,704 Other assets 8,377 4,012 Total assets $ 166,248 $ 121,674 Liabilities: Accounts payable $ 7,171 $ 1,726 Accrued expenses and other liabilities 11,148 7,784 Notes payable 60,642 58,223 Total liabilities $ 78,961 $ 67,733 Owners’ equity: Green Brick $ 43,451 $ 25,910 Others 43,836 28,031 Total owners’ equity $ 87,287 $ 53,941 Total liabilities and owners’ equity $ 166,248 $ 121,674 Years Ended December 31, 2020 2019 2018 Revenues $ 181,724 $ 166,368 $ 166,102 Costs and expenses 145,525 144,097 148,222 Net earnings of unconsolidated entities $ 36,199 $ 22,271 $ 17,880 Company’s share in net earnings of unconsolidated entities $ 16,654 $ 9,809 $ 7,259 | |||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investment Board Seats | 3 | |||||
Stock Issued During Period, Shares, Acquisitions | shares | 20,000 | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||
Equity Method Investments | $ 30,294 | $ 46,443 | $ 30,294 | |||
Goodwill | 680 | 680 | 680 | |||
Income (Loss) from Equity Method Investments | 16,654 | 9,809 | $ 7,259 | |||
Stock Issued During Period, Value, Acquisitions | 0 | |||||
Challenger [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investments | 23,822 | 29,488 | 23,822 | |||
GBTM Sendera [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investments | 0 | 9,846 | 0 | |||
EJB River Holdings, LLC [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investments | 5,299 | 5,296 | 5,299 | |||
Providence Group Title, LLC [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investments | 49 | 0 | 49 | |||
Green Brick Mortgage, LLC [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investments | 1,124 | 1,207 | 1,124 | |||
BHome Mortgage [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investments | 0 | 606 | 0 | |||
Challenger [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investment, Underlying Equity in Net Assets | 26,500 | |||||
Equity Method Investment Board Seats | board_seat | 5 | |||||
Equity Method Investment Number of Officers | officer | 6 | |||||
Equity Method Investment, Ownership Percentage | 49.90% | |||||
Ownership Interest by Third Party | 50.00% | |||||
Equity Method Investments | 29,500 | |||||
Equity Method Investment Board Seats Held | board_seat | 2 | |||||
Income (Loss) from Equity Method Investments | 11,899 | 8,309 | $ 7,000 | |||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | $ 3,000 | |||||
Providence Group Title, LLC [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 49.00% | |||||
Income (Loss) from Equity Method Investments | $ 12 | 448 | ||||
Green Brick Mortgage, LLC [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 49.00% | |||||
Income (Loss) from Equity Method Investments | $ 4,727 | 1,053 | ||||
EJB River Holdings, LLC [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | |||||
Income (Loss) from Equity Method Investments | $ (2) | (1) | ||||
Contributions of LLC Members | $ 300 | $ 5,000 | ||||
GBTM Sendera [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Income (Loss) from Equity Method Investments | $ 0 | $ 0 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregation of Revenue The following reflects the disaggregation of revenue by primary geographic market, type of customer, product type, and timing of revenue recognition (in thousands): Years Ended December 31, 2020 2019 2018 Residential units revenue Land and lots revenue Residential units revenue Land and lots revenue Residential units revenue Land and lots revenue Primary Geographical Market Central $ 644,976 $ 43,788 $ 396,900 $ 31,080 $ 281,868 $ 40,184 Southeast 285,200 2,057 362,930 750 297,025 4,570 Total revenues $ 930,176 $ 45,845 $ 759,830 $ 31,830 $ 578,893 $ 44,754 Type of Customer Homebuyers $ 930,176 $ — $ 759,830 $ 185 $ 578,893 $ 670 Homebuilders — 45,845 — 31,645 — 44,084 Total revenues $ 930,176 $ 45,845 $ 759,830 $ 31,830 $ 578,893 $ 44,754 Product Type Residential units $ 930,176 $ — $ 759,830 $ — $ 578,893 $ — Land and lots — 45,845 — 31,830 — 44,754 Total revenues $ 930,176 $ 45,845 $ 759,830 $ 31,830 $ 578,893 $ 44,754 Timing of Revenue Recognition Transferred at a point in time $ 923,901 $ 45,845 $ 752,273 $ 31,830 $ 571,177 $ 44,754 Transferred over time 6,275 — 7,557 — 7,716 — Total revenues $ 930,176 $ 45,845 $ 759,830 $ 31,830 $ 578,893 $ 44,754 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | The aggregate amount of transaction price allocated to the remaining performance obligations on our land sale and lot option contracts is $16.7 million. The Company will recognize the remaining revenue when the lots are taken down, or upon closing for the sale of a land parcel, which is expected to occur as follows (in thousands): 2021 $ 14,825 2022 1,826 Total $ 16,651 |
Contract with Customer, Asset and Liability [Table Text Block] | Contract Balances Opening and closing contract balances included in customer and builder deposits on the consolidated balance sheets are as follows (in thousands): December 31, 2020 December 31, 2019 Customer and builder deposits $ 38,131 $ 23,954 The difference between the opening and closing balances of customer and builder deposits results from the timing difference between the customer’s payment of a deposit and the Company’s performance, impacted slightly by terminations of contracts. The amount of deposits on residential units and land and lots held as of the beginning of the period and recognized as revenue during the years ended December 31, 2020 and 2019 are as follows (in thousands): 2020 2019 Type of Customer Homebuyers $ 14,149 $ 8,981 Homebuilders 5,929 3,417 Total deposits recognized as revenue $ 20,078 $ 12,398 |
Redeemable noncontrolling inter
Redeemable noncontrolling interest (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Redeemable Noncontrolling Interest, Equity, Common, Carrying Amount | $ 13,543 | $ 13,611 | $ 8,531 |
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | 2,377 | 3,462 | |
Temporary Equity, Interest in Subsidiary Earnings | (1,505) | (527) | |
Temporary Equity, Accretion to Redemption Value | (940) | $ (2,145) | |
2020 | 85 | ||
2021 | 85 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 85 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 85 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 85 |
Contingent Consideration (Detai
Contingent Consideration (Details) - USD ($) | 8 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Contingent Consideration Earned | $ 1,800,000 | $ 5,300,000 |
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | $ 500,000 | $ 1,500,000 |
Document Period End Date | Dec. 31, 2020 | |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 0 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Variable Interest Entity [Line Items] | |||
Document Period End Date | Dec. 31, 2020 | ||
Equity Method Investment Board Seats | 3 | ||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 7,300 | ||
Contributions from noncontrolling interests | 400 | $ 3,600 | $ 5 |
Liabilities | 325,895 | 325,533 | |
Assets | $ 988,847 | 875,539 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Variable Interest Entity [Line Items] | |||
Percentage of Voting Interest | 50.00% | ||
Percentage of Voting Interest | 51.00% | ||
Equity Method Investment Board Seats | 2 | ||
TPG | |||
Variable Interest Entity [Line Items] | |||
Liabilities | $ 125,500 | 116,800 | |
Assets | $ 131,900 | $ 126,800 |
Investment in Unconsolidated _2
Investment in Unconsolidated Entities (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | ||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 7,300 | |||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investments | 46,443 | $ 30,294 | ||
Revenues | 976,021 | 791,660 | $ 623,647 | |
Net income | 117,797 | 64,302 | 64,535 | |
Cash | 19,479 | 33,269 | 38,315 | $ 36,684 |
Assets | 988,847 | 875,539 | ||
Liabilities | 325,895 | 325,533 | ||
Stockholders' Equity Attributable to Parent | 640,242 | 523,168 | 468,351 | 416,347 |
Stockholders' Equity Attributable to Noncontrolling Interest | 9,167 | 13,227 | 17,281 | 16,691 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 649,409 | 536,395 | 485,632 | $ 433,038 |
Liabilities and Equity | 988,847 | 875,539 | ||
Income (Loss) from Equity Method Investments | 16,654 | 9,809 | 7,259 | |
Guarantor Obligations, Maximum Exposure, Undiscounted | 2,000 | |||
Challenger [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investments | 29,500 | |||
Income (Loss) from Equity Method Investments | 11,899 | 8,309 | 7,000 | |
Green Brick Mortgage, LLC [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Income (Loss) from Equity Method Investments | 4,727 | 1,053 | ||
Providence Group Title, LLC [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Income (Loss) from Equity Method Investments | 12 | 448 | ||
EJB River Holdings, LLC [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Income (Loss) from Equity Method Investments | (2) | (1) | ||
BHome Mortgage [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Income (Loss) from Equity Method Investments | 18 | 0 | ||
GBTM Sendera [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Income (Loss) from Equity Method Investments | 0 | 0 | ||
Equity Method Investment, Nonconsolidated Investee, Other | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenues | 181,724 | 166,368 | 166,102 | |
Costs and Expenses | 145,525 | 144,097 | 148,222 | |
Net income | 36,199 | 22,271 | $ 17,880 | |
Cash | 12,765 | 11,699 | ||
Accounts and Other Receivables, Net, Current | 1,815 | 3,252 | ||
Financing Receivable, after Allowance for Credit Loss | 5,942 | 5,864 | ||
Financing Receivable, Held-for-Sale | 14,530 | 23,143 | ||
Inventory, Net | 122,819 | 73,704 | ||
Other Assets, Current | 8,377 | 4,012 | ||
Assets | 166,248 | 121,674 | ||
Accounts Payable, Current | 7,171 | 1,726 | ||
Accrued Liabilities, Current | 11,148 | 7,784 | ||
Notes Payable, Current | 60,642 | 58,223 | ||
Liabilities | 78,961 | 67,733 | ||
Stockholders' Equity Attributable to Parent | 43,451 | 25,910 | ||
Stockholders' Equity Attributable to Noncontrolling Interest | 43,836 | 28,031 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 87,287 | 53,941 | ||
Liabilities and Equity | 166,248 | 121,674 | ||
Equity Method Investments | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Income (Loss) from Equity Method Investments | 16,654 | 9,809 | ||
EJB River Holdings, LLC [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investments | 5,296 | $ 5,299 | ||
Assets | 29,200 | |||
Liabilities | $ 18,600 |
Property and Equipment (Summary
Property and Equipment (Summary of Property and Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Summary of Property and Equipment | The following is a summary of property and equipment by major classification and related accumulated depreciation as of December 31, 2020 and 2019 (in thousands): December 31, 2020 December 31, 2019 Land $ — $ 763 Building — 180 Model home furnishings and capitalized sales office costs 7,362 6,090 Office furniture and equipment 486 424 Leasehold improvements 1,996 1,824 Computers and equipment 724 912 Vehicles and field trailers 561 357 11,129 10,550 Less: accumulated depreciation (7,534) (6,241) Total property and equipment, net $ 3,595 $ 4,309 | ||
Property and Equipment | PROPERTY AND EQUIPMENT The following is a summary of property and equipment by major classification and related accumulated depreciation as of December 31, 2020 and 2019 (in thousands): December 31, 2020 December 31, 2019 Land $ — $ 763 Building — 180 Model home furnishings and capitalized sales office costs 7,362 6,090 Office furniture and equipment 486 424 Leasehold improvements 1,996 1,824 Computers and equipment 724 912 Vehicles and field trailers 561 357 11,129 10,550 Less: accumulated depreciation (7,534) (6,241) Total property and equipment, net $ 3,595 $ 4,309 Depreciation expense for the years ended December 31, 2020, 2019 and 2018 totaled $3.6 million, $2.9 million, and $2.7 million, respectively, and is included in selling, general and administrative expense in our consolidated statements of income. | ||
Depreciation and amortization expense | $ 3,600 | $ 2,900 | $ 2,700 |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 11,129 | 10,550 | |
Less: accumulated depreciation | (7,534) | (6,241) | |
Total property and equipment, net | 3,595 | 4,309 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 0 | 763 | |
Building | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 0 | 180 | |
Model home furnishings and capitalized sales office costs | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 7,362 | 6,090 | |
Office furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 486 | 424 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 1,996 | 1,824 | |
Computers and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 724 | 912 | |
Vehicles and field trailers | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 561 | $ 357 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current income tax expense (benefit): | |||
Federal | $ 20,968 | $ 15,980 | $ (569) |
State | 4,162 | 2,810 | 2,993 |
Total current income tax expense | 25,130 | 18,790 | 2,424 |
Deferred income tax expense (benefit): | |||
Federal | (354) | 774 | 15,023 |
State | 240 | 463 | (311) |
Total deferred income tax expense | (114) | 1,237 | 14,712 |
Total income tax expense | $ 25,016 | $ 20,027 | $ 17,136 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income Taxes | INCOME TAXES On March 27, 2020, the United States enacted the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act, as a response to the economic uncertainty resulting from the COVID-19 pandemic, which, among other things, included several temporary changes to corporate income tax provisions. The CARES Act did not have a significant impact on our expense for income taxes for the year ended December 31, 2020. We will continue to assess the effect, if any, the CARES Act will have on our income taxes On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act made major changes to the Internal Revenue Code. The Company recognized the income tax effects of the Tax Act in its financial statements in accordance with Staff Accounting Bulletin 118 which provides SEC staff guidance for the application of ASC 740, Income Taxes . The Company finalized its accounting for the income tax effects of the Tax Act in the fourth quarter of 2018 with no adjustments recorded during the measurement period. Income Tax Expense The components of current and deferred income tax expense are as follows (in thousands): Years Ended December 31, 2020 2019 2018 Current income tax expense (benefit): Federal $ 20,968 $ 15,980 $ (569) State 4,162 2,810 2,993 Total current income tax expense 25,130 18,790 2,424 Deferred income tax expense (benefit): Federal (354) 774 15,023 State 240 463 (311) Total deferred income tax expense (114) 1,237 14,712 Total income tax expense $ 25,016 $ 20,027 $ 17,136 Effective Income Tax Rate Reconciliation The income tax expense differs from the amount that would be computed by applying the statutory federal income tax rates of 21% for each of the years ended December 31, 2020, 2019 and 2018, respectively, to income before income taxes as a result of the following (amounts in thousands): Years Ended December 31, 2020 2019 2018 Tax on pre-tax book income (before reduction of noncontrolling interests) $ 29,991 $ 17,709 $ 17,151 Tax effect of non-controlled earnings (862) (1,252) (2,743) State income tax expense, net of federal benefit 3,606 2,706 1,940 Adjustments to deferred tax assets related to state net operating losses — 1,063 283 Change in valuation allowance — (1,063) (283) Tax credits (8,088) — — Other 369 864 788 Total income tax expense $ 25,016 $ 20,027 $ 17,136 Effective income tax rate 17.5 % 23.7 % 21.0 % The change in the effective tax rate for the year ended December 31, 2020 relates primarily to the tax benefit of $8.1 million, net of the required basis adjustment, from the enactment of the Taxpayer Certainty and Disaster Tax Relief Act of 2019 (“the Ac t”). The Act retroactively reinstated the federal energy efficient homes tax credit that expired on December 31, 2017 to homes closed from January 1, 2018 to December 31, 2020. Deferred Income Taxes The primary differences between the financial statement and tax bases of assets and liabilities are as follows (in thousands): December 31, 2020 December 31, 2019 Deferred tax assets: Basis in partnerships $ 8,163 $ 9,212 Accrued expenses 2,979 2,206 Inventory 2,585 2,316 Change in fair value of contingent consideration 1,385 1,444 Lease liabilities - operating leases 601 832 Stock-based compensation 392 408 Other 349 191 Deferred tax assets, gross 16,454 16,609 Valuation allowance — — Deferred tax assets, net $ 16,454 $ 16,609 Deferred tax liabilities: Right-of-use assets - operating leases $ (581) $ (818) Prepaid insurance (372) (419) Other (125) (110) Deferred tax liabilities $ (1,078) $ (1,347) Total deferred income tax assets, net $ 15,376 $ 15,262 Net Operating Losses and Valuation Allowances As of December 31, 2020, all federal net operating loss carryforwards were fully utilized. During the year ended December 31, 2019, the Company decided to write off its gross state net operating loss carryforwards in Minnesota of $13.7 million, as well as the related deferred tax asset and valuation allowance. Management believes on a more-likely-than-not basis that the Minnesota net operating loss carryforwards would not have been utilized. The rollforward of valuation allowance is as follows (amounts in thousands): December 31, 2020 December 31, 2019 Valuation allowance at beginning of the year $ — $ 1,063 Write-off of state net operating losses — (1,063) Expiration of state net operating losses — — Valuation allowance at end of the year $ — $ — Uncertain Tax Positions The Company establishes accruals for uncertain tax positions that reflect management’s best estimate of deductions and credits that may not be sustained on a more-likely-than-not basis. In accordance with ASC 740, Income Taxes , the Company recognizes the effect of income tax positions only if those positions have a more-likely-than-not chance of being sustained by the Company. Recognized income tax positions are measured at the largest amount that is considered greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. There were no uncertain tax positions as of December 31, 2020. There were no expenses for interest and penalties related to uncertain tax positions for the years ended December 31, 2020, 2019, and 2018. There were no accrued liabilities related to uncertain tax positions as of December 31, 2020 and 2019, respectively. Statutes of Limitations The U.S. federal statute of limitations remains open for our 2017 and subsequent tax years. Due to the carryover of the federal net operating losses for years 2009 and forward, income tax returns going back to the 2009 tax year are subject to adjustment. The Colorado and Minnesota statutes of limitations remain open for our 2016 and subsequent tax years. The Nebraska statute of limitations remains open for our 2017 and subsequent tax years. The Company’s subsidiaries file returns in Texas, Georgia and Florida and Colorado. The Texas statute of limitations remains open for the 2016 and subsequent tax years. Any Texas adjustments relating to returns filed by the subsidiary partnerships would be borne by the subsidiary partnership entities. The Georgia statute of limitations remains open for the 2017 and subsequent tax years. Any Georgia adjustments relating to returns filed by the subsidiary partnerships would be borne by the partner. The Florida statute of limitations will remain open for the 2018 and subsequent tax years. Any Florida adjustments relating to returns filed by the subsidiary partnerships would be borne by the partner. The Company is not presently under examination by the Internal Revenue Service or state tax authority. | ||
Schedule of Components of Income Tax Expense (Benefit) | Income Tax Expense The components of current and deferred income tax expense are as follows (in thousands): Years Ended December 31, 2020 2019 2018 Current income tax expense (benefit): Federal $ 20,968 $ 15,980 $ (569) State 4,162 2,810 2,993 Total current income tax expense 25,130 18,790 2,424 Deferred income tax expense (benefit): Federal (354) 774 15,023 State 240 463 (311) Total deferred income tax expense (114) 1,237 14,712 Total income tax expense $ 25,016 $ 20,027 $ 17,136 | ||
Schedule of Deferred Tax Assets and Liabilities | The primary differences between the financial statement and tax bases of assets and liabilities are as follows (in thousands): December 31, 2020 December 31, 2019 Deferred tax assets: Basis in partnerships $ 8,163 $ 9,212 Accrued expenses 2,979 2,206 Inventory 2,585 2,316 Change in fair value of contingent consideration 1,385 1,444 Lease liabilities - operating leases 601 832 Stock-based compensation 392 408 Other 349 191 Deferred tax assets, gross 16,454 16,609 Valuation allowance — — Deferred tax assets, net $ 16,454 $ 16,609 Deferred tax liabilities: Right-of-use assets - operating leases $ (581) $ (818) Prepaid insurance (372) (419) Other (125) (110) Deferred tax liabilities $ (1,078) $ (1,347) Total deferred income tax assets, net $ 15,376 $ 15,262 | ||
Schedule of Effective Tax Rate Reconciliation | Effective Income Tax Rate Reconciliation The income tax expense differs from the amount that would be computed by applying the statutory federal income tax rates of 21% for each of the years ended December 31, 2020, 2019 and 2018, respectively, to income before income taxes as a result of the following (amounts in thousands): Years Ended December 31, 2020 2019 2018 Tax on pre-tax book income (before reduction of noncontrolling interests) $ 29,991 $ 17,709 $ 17,151 Tax effect of non-controlled earnings (862) (1,252) (2,743) State income tax expense, net of federal benefit 3,606 2,706 1,940 Adjustments to deferred tax assets related to state net operating losses — 1,063 283 Change in valuation allowance — (1,063) (283) Tax credits (8,088) — — Other 369 864 788 Total income tax expense $ 25,016 $ 20,027 $ 17,136 Effective income tax rate 17.5 % 23.7 % 21.0 % | ||
Rollforward of Valuation Allowances | The rollforward of valuation allowance is as follows (amounts in thousands): December 31, 2020 December 31, 2019 Valuation allowance at beginning of the year $ — $ 1,063 Write-off of state net operating losses — (1,063) Expiration of state net operating losses — — Valuation allowance at end of the year $ — $ — | ||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforward | $ 13,700 | ||
Basis in partnerships | $ 8,163 | 9,212 | |
Deferred tax assets | 16,454 | 16,609 | |
Deferred Tax Assets, Valuation Allowance | 0 | 0 | $ 1,063 |
Effective Income Tax Rate Reconciliation, Tax Credit, Amount | $ (8,088) | $ 0 | $ 0 |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | |||
Stock-based compensation | $ 392 | $ 408 | |
Basis in partnerships | 8,163 | 9,212 | |
Inventory | 2,585 | 2,316 | |
Accrued expenses | 2,979 | 2,206 | |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Contingencies | 1,385 | 1,444 | |
Deferred Tax Assets, Operating Leases Liabilities | 601 | 832 | |
Other | 349 | 191 | |
Deferred tax assets, gross | 16,454 | 16,609 | |
Deferred tax assets, net | 16,454 | 16,609 | |
Deferred Tax Liabilities, Leasing Arrangements | (581) | (818) | |
Deferred tax liabilities: | |||
Prepaid insurance | (372) | (419) | |
Other | (125) | (110) | |
Deferred tax liabilities | (1,078) | (1,347) | |
Deferred Tax Assets, Valuation Allowance | $ 0 | $ 0 | $ 1,063 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | $ 29,991 | $ 17,709 | $ 17,151 |
Effective Income Tax Rate Reconciliation, Equity in Earnings (Losses) of Unconsolidated Subsidiary, Amount | (862) | (1,252) | (2,743) |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | 3,606 | 2,706 | 1,940 |
Write-off of state net operating losses | 0 | 1,063 | 283 |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 0 | (1,063) | (283) |
Effective Income Tax Rate Reconciliation, Tax Credit, Amount | (8,088) | 0 | 0 |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | 369 | 864 | 788 |
Total income tax expense | $ 25,016 | $ 20,027 | $ 17,136 |
Effective Income Tax Rate Reconciliation, Percent | 17.50% | 23.70% | 21.00% |
Income Taxes (Rollforward of Va
Income Taxes (Rollforward of Valuation Allowances) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Operating Loss Carryforwards | $ 13,700 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Valuation allowance at beginning of the year | $ 0 | 1,063 |
Expiration of state net operating losses | 0 | (1,063) |
Valuation allowance at end of the year | $ 0 | $ 0 |
Debt Disclosure (Details)
Debt Disclosure (Details) - USD ($) $ in Thousands | Aug. 08, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Aug. 08, 2026 | Aug. 08, 2025 | Aug. 08, 2024 | Dec. 15, 2015 |
Debt Disclosure [Abstract] | ||||||||
Debt | DEBT The aggregated annual principal payments under the borrowings on lines of credit and senior unsecured notes over the next five years as of December 31, 2020 are (in thousands): 2021 $ 11,434 2022 35,585 2023 60,981 2024 12,500 2025 12,500 Thereafter 87,500 Total $ 220,500 Lines of Credit Borrowings on lines of credit outstanding, net of debt issuance costs, as of December 31, 2020 and 2019 consist of the following (in thousands): December 31, 2020 December 31, 2019 Secured Revolving Credit Facility $ 7,000 $ 38,000 Unsecured Revolving Credit Facility 101,000 128,000 Debt issuance costs, net of amortization (1,313) (1,358) Total borrowings on lines of credit, net $ 106,687 $ 164,642 Secured Revolving Credit Facility On July 30, 2015, the Company entered into a secured revolving credit facility (the “Secured Revolving Credit Facility”) with Inwood National Bank, which initially provided for up to $50.0 million. Amounts outstanding under the Secured Revolving Credit Facility are secured by mortgages on real property and security interests in certain personal property (to the extent that such personal property is connected with the use and enjoyment of the real property) that is owned by certain of the Company’s subsidiaries. On May 22, 2020, the Company amended the Secured Credit Facility to reduce the aggregate commitment amount of $75.0 million to $35.0 million. Amounts outstanding under the Secured Revolving Credit Facility are secured by mortgages on real property and security interests in certain personal property (to the extent that such personal property is connected with the use and enjoyment of the real property) that is owned by certain of the Company’s subsidiaries. The entire unpaid principal balance and any accrued but unpaid interest is due and payable on the maturity date. As of December 31, 2020, the the maturity date of the Secured Revolving Credit Facility was May 1, 2022. As of December 31, 2020, letters of credit outstanding totaling $1.5 million reduced the aggregate maximum commitment amount to $33.5 million. As of December 31, 2020, outstanding borrowings under the amended Secured Revolving Credit Facility bear interest payable monthly at a floating rate per annum equal to the rate announced by Bank of America, N.A., from time to time, as its “Prime Rate” (the “Index”) with such adjustments to the interest rate being made on the effective date of any change in the Index, less 0.25%. Notwithstanding the foregoing, the interest may not, at any time, be less than 4% per annum or more than the lesser amount of 18% and the highest maximum rate allowed by applicable law. As of December 31, 2020, the interest rate on outstanding borrowings under the Secured Revolving Credit Facility was 4.00% per annum. As of December 31, 2020, the amended Secured Revolving Credit Facility was subject to a borrowing base limitation equal to the sum of 50% of the total value of land and 65% of the total value of lots owned by certain of the Company’s subsidiaries, each as determined by an independent appraiser, with the value of land being restricted from being more than 65% of the borrowing base. As of December 31, 2020, the amended Secured Revolving Credit Facility was also subject to a non-usage fee equal to 0.25% of the average unfunded amount of the commitment amount over a trailing 12 month period. Under the terms of the amended Secured Revolving Credit Facility, the Company is required, among other things, to maintain minimum multiples of tangible net worth in excess of the outstanding Secured Revolving Credit Facility balance, minimum interest coverage and maximum leverage. The Company was in compliance with these financial covenants under the Secured Revolving Credit Facility as of December 31, 2020. De minimis fees and other debt issuance costs were incurred during each of the years ended December 31, 2020, 2019 and 2018, associated with the Secured Revolving Credit Facility amendments. These costs are deferred and reduce the carrying amount of debt in our consolidated balance sheets. The Company capitalizes these costs to inventory over the term of the Secured Revolving Credit Facility using the straight-line method. Unsecured Revolving Credit Facility On December 15, 2015, the Company entered into a credit agreement (the “Credit Agreement”) with Citibank, N.A. and Credit Suisse AG, Cayman Islands Branch (“Credit Suisse”) as lenders, and Citibank, N.A. as administrative agent, providing for a senior, unsecured revolving credit facility with initial aggregate lending commitments of up to $40.0 million (the “Unsecured Revolving Credit Facility”). The Unsecured Revolving Credit Facility provides for interest rate options on advances at rates equal to either: (a) in the case of base rate advances, the highest of (1) Citibank’s base rate, (2) the federal funds rate plus 0.5%, and (3) the one-month LIBOR plus 1.0%, in each case plus 1.5%; or (b) in the case of Eurodollar rate advances, the reserve adjusted LIBOR plus 2.5%. Interest on amounts borrowed under the Unsecured Revolving Credit Facility is payable in arrears on a monthly basis. As of December 31, 2020, the interest rates on outstanding borrowings under the Unsecured Revolving Credit Facility ranged from 2.64% to 2.65% per annum. The Company pays the lenders a commitment fee on the amount of the unused commitments on a quarterly basis at a rate per annum equal to 0.45%. Outstanding borrowings under the Unsecured Revolving Credit Facility are subject to, among other things, a borrowing base. The borrowing base limitation is equal to the sum of: 100% of unrestricted cash in excess of $15.0 million; 85% of the book value of model homes, construction in progress homes, completed sold and speculative homes (subject to certain limitations on the age and number of speculative homes and model homes); 65% of the book value of finished lots and land under development; and 50% of the book value of entitled land (subject to certain limitations on the value of entitled land and land under development as a percentage of the borrowing base). Following amendments to the Credit Agreement and the addition of Flagstar Bank, FSB (“Flagstar Bank”), JPMorgan Chase Bank, N.A. (“JPMorgan”) and Chemical Financial Corporation (“Chemical”) as lenders, the aggregate lending commitment available under the Unsecured Revolving Credit Facility as of December 31, 2020 was $265.0 million, the maximum aggregate amount of the Unsecured Revolving Credit Facility was $275.0 million, and the termination date with respect to commitments under the Unsecured Revolving Credit Facility was December 14, 2021 for $30.0 million, December 14, 2022 for $75.0 million and December 14, 2023 for $160.0 million out of the aggregate lending commitment of $265.0 million. Fees and other debt issuance costs of $0.5 million, $0.3 million and $0.9 million were incurred during the years ended December 31, 2020, 2019 and 2018, respectively, associated with the amendments, term extensions and increases in lenders’ commitments. These costs are deferred and reduce the carrying amount of debt in our consolidated balance sheets. The Company capitalizes these costs to inventory over the term of the Unsecured Revolving Credit Facility using the straight-line method. Based on the unprecedented disruptions to the credit and economic markets arising from the COVID-19 pandemic, we drew the full amount of our Unsecured Revolving Credit Facility during the three months ended March 31, 2020. During the three months ended June 30, 2020, we paid our Unsecured Revolving Credit Facility down to prior levels once it was apparent that the Company’s access to liquidity in the financial markets was not compromised. Under the terms of the Unsecured Revolving Credit Facility, the Company is required to maintain compliance with various financial covenants, including a maximum leverage ratio, a minimum interest coverage ratio, and a minimum consolidated tangible net worth. The Company was in compliance with these financial covenants under the Unsecured Revolving Credit Facility as of December 31, 2020. Senior Unsecured Notes On August 8, 2019, the Company issued $75.0 million aggregate principal amount of senior unsecured notes due on August 8, 2026 at a fixed rate of 4.00% per annum to Prudential Private Capital in a Section 4(a)(2) private placement transaction and received net proceeds of $73.3 million. A brokerage fee of approximately $1.5 million associated with the issuance was paid at closing. The brokerage fee, and other debt issuance costs of approximately $0.2 million, were deferred and reduced the amount of debt on our consolidated balance sheet. The Company used the net proceeds from the issuance of the senior unsecured notes to repay borrowings under the Company’s existing revolving credit facilities. Principal on the senior unsecured notes is required to be paid in increments of $12.5 million on August 8, 2024 and $12.5 million on August 8, 2025. The final principal payment of $50.0 million is due on August 8, 2026. Optional prepayment is allowed with payment of a “make-whole” premium which fluctuates depending on market interest rates. Interest is payable quarterly in arrears commencing November 8, 2019. On August 26, 2020, the Company entered into a Note Purchase Agreement with The Prudential Insurance Company of America and Prudential Universal Reinsurance Company to issue a $37.5 million aggregate principal amount of senior unsecured notes due on August 26, 2027 at a fixed rate of 3.35% per annum in a Section 4(a)(2) private placement transaction. The Company received net proceeds of $37.4 million and incurred debt issuance costs of approximately $0.1 million that were deferred and reduced the amount of debt on our consolidated balance sheet. The Company used the net proceeds from the issuance of the Notes to repay borrowings under the Company’s existing revolving credit facilities and for general corporate purposes. Interest is payable quarterly in arrears and commenced on November 26, 2020. Under the terms of the senior unsecured notes, the Company is required, among other things, to maintain compliance with various financial covenants, including maximum leverage ratios, a minimum interest coverage ratio, and a minimum consolidated tangible net worth. The Company was in compliance with these financial covenants under the Senior Unsecured Notes as of December 31, 2020. The senior unsecured notes are guaranteed on an unsecured senior basis by the Company’s significant subsidiaries and certain other subsidiaries. The senior unsecured notes will rank equally in right of payment with all of the Company’s existing and future senior unsecured and unsubordinated indebtedness. | |||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | The aggregated annual principal payments under the borrowings on lines of credit and senior unsecured notes over the next five years as of December 31, 2020 are (in thousands): 2021 $ 11,434 2022 35,585 2023 60,981 2024 12,500 2025 12,500 Thereafter 87,500 Total $ 220,500 | |||||||
Schedule of Line of Credit Facilities [Table Text Block] | Borrowings on lines of credit outstanding, net of debt issuance costs, as of December 31, 2020 and 2019 consist of the following (in thousands): December 31, 2020 December 31, 2019 Secured Revolving Credit Facility $ 7,000 $ 38,000 Unsecured Revolving Credit Facility 101,000 128,000 Debt issuance costs, net of amortization (1,313) (1,358) Total borrowings on lines of credit, net $ 106,687 $ 164,642 | |||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 11,434 | |||||||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 87,500 | |||||||
Senior Notes | $ 75,000 | |||||||
Stated interest rate | 4.00% | |||||||
Long-term Line of Credit | 106,687 | $ 164,642 | ||||||
Letters of Credit Outstanding, Amount | 9,800 | 14,400 | ||||||
Debt Issuance Costs, Net | 1,313 | 1,358 | ||||||
Proceeds from Issuance of Senior Long-term Debt | $ 73,300 | 37,500 | 75,000 | $ 0 | ||||
Debt Instrument, Fee Amount | 1,500 | |||||||
Payments of Debt Issuance Costs | $ 200 | 527 | 1,974 | 870 | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 12,500 | |||||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 35,585 | |||||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 60,981 | |||||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 12,500 | |||||||
Long-term Debt | 220,500 | |||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 33,500 | |||||||
Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Interest Rate at Period End | 4.00% | |||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | |||||||
MaximumValueOfLandUsedWhenCalculatingBorrowingBase | 65.00% | |||||||
BorrowingBaseLimitationTotalValueOfland | 50.00% | |||||||
Borrowing Base Limitation Total Value Of Lots Owned | 65.00% | |||||||
Long-term Line of Credit | $ 7,000 | 38,000 | ||||||
Letters of Credit Outstanding, Amount | 1,500 | |||||||
Debt Related Commitment Fees and Debt Issuance Costs | $ 100 | |||||||
Line of Credit Facility, Expiration Date | May 1, 2022 | |||||||
Unsecured Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Line of Credit | $ 101,000 | 128,000 | ||||||
Subsidiary Issuer [Member] | Minimum [Member] | Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 4.00% | |||||||
Subsidiary Issuer [Member] | Maximum [Member] | Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 18.00% | |||||||
Forecast [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Maturities, Repayments of Principal after Year Five | $ 50,000 | $ 12,500 | ||||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | $ 12,500 | |||||||
Unsecured Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Book Value of Finished Lots and Land Under Development | 65.00% | |||||||
Book Value of Entitled Land | 50.00% | |||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.45% | |||||||
Unrestricted Cash Borrowing Base Limitation | 100.00% | |||||||
Long-term Line of Credit | $ 265,000 | $ 40,000 | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 275,000 | |||||||
Debt Related Commitment Fees and Debt Issuance Costs | $ 500 | $ 300 | $ 900 | |||||
Borrowing Base Limitation for Unrestricted Cash | $ 15,000 | |||||||
Book Value of Model Homes Borrowing Base | 85.00% | |||||||
Unsecured Debt [Member] | Base rate advances [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Addition to the Federal Funds Rate | 0.50% | |||||||
Addition to the LIBOR Rate | 1.00% | |||||||
Extra Addition to the Interest Rate | 1.50% | |||||||
Unsecured Debt [Member] | Eurodollar Rate Advances [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Addition to the reserve adjusted LIBOR rate | 2.50% | |||||||
Unsecured Debt [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Interest Rate at Period End | 2.64% | |||||||
Unsecured Debt [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Interest Rate at Period End | 2.65% | |||||||
Debt Instrument, Redemption, Period One [Member] | Unsecured Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Line of Credit | $ 30,000 | |||||||
Debt Instrument, Redemption, Period Two [Member] | Unsecured Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Line of Credit | $ 75,000 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 26, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 976,021,000 | $ 791,660,000 | $ 623,647,000 | |
Document Period End Date | Dec. 31, 2020 | |||
Contract with Customer, Performance Obligation Satisfied in Previous Period | $ 0 | |||
Revenue, Practical Expedient, Remaining Performance Obligation, Description | Our contracts with homebuyers have a duration of less than one year. As such, the Company uses the practical expedient as allowed under ASC 606 and has not disclosed the transaction price allocated to remaining performance obligations as of the end of the reporting period. | |||
Residential Real Estate [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 930,176,000 | 759,830,000 | 578,893,000 | |
Residential Real Estate [Member] | Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 923,901,000 | 752,273,000 | 571,177,000 | |
Residential Real Estate [Member] | Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,275,000 | 7,557,000 | 7,716,000 | |
Real Estate, Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 45,845,000 | 31,830,000 | 44,754,000 | |
Real Estate, Other [Member] | Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 45,845,000 | 31,830,000 | 44,754,000 | |
Real Estate, Other [Member] | Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Homebuyers [Member] | Residential Real Estate [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 930,176,000 | 759,830,000 | 578,893,000 | |
Homebuyers [Member] | Real Estate, Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 185,000 | 670,000 | |
Homebuilders [Member] | Residential Real Estate [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Homebuilders [Member] | Real Estate, Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 45,845,000 | 31,645,000 | 44,084,000 | |
Central | Residential Real Estate [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 644,976,000 | 396,900,000 | 281,868,000 | |
Central | Real Estate, Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 43,788,000 | 31,080,000 | 40,184,000 | |
Southeast | Residential Real Estate [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 285,200,000 | 362,930,000 | 297,025,000 | |
Southeast | Real Estate, Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,057,000 | 750,000 | 4,570,000 | |
sic_Z6552 Land Subdividers and Developers (No Cemeteries) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 43,289,000 | 31,080,000 | 39,834,000 | |
sic_Z6552 Land Subdividers and Developers (No Cemeteries) | Residential Real Estate [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
us-gaap_HomeBuildingMember | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 932,732,000 | 760,580,000 | 583,813,000 | |
us-gaap_HomeBuildingMember | Real Estate, Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,600,000 | 800,000 | 4,900,000 | |
us-gaap_HomeBuildingMember | Land and Lots [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
us-gaap_HomeBuildingMember | Central | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 645,475,000 | 396,900,000 | 282,218,000 | |
us-gaap_HomeBuildingMember | Southeast | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 287,257,000 | $ 363,680,000 | $ 301,595,000 | |
GHO Homes [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contract With Customer, Refund Liability | $ 9,100,000 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligation (Details) - USD ($) $ in Thousands | 8 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | $ 16,651 | ||
Contract with Customer, Liability, Revenue Recognized | 20,078 | $ 12,398 | |
Contract with Customer, Liability, Revenue Recognized | 38,131 | 23,954 | |
Homebuyers [Member] | Residential Real Estate [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Contract with Customer, Liability, Revenue Recognized | $ 8,200 | 14,149 | 8,981 |
Homebuilders [Member] | Residential Real Estate [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Contract with Customer, Liability, Revenue Recognized | 5,929 | $ 3,417 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | $ 14,825 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | $ 1,826 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting [Abstract] | |||
Segment Information | SEGMENT INFORMATION The Company has three reportable segments - Builder operations Central, Builder operations Southeast, and Land development. Builder operations Central represents operations of our builders in Texas, whereas Builder operations Southeast represents operations of our builders in Georgia and Florida. The operations of the Company’s builders were aggregated in these three reportable segments based on similar economic characteristics, including geography, housing products, class of homebuyer, regulatory environments, and methods used to construct and sell homes. The Company believes such presentation is consistent with the objective and basic principles of ASC 280 and provides the most meaningful information about the types of business activities in which the Company engages and the economic environments in which it operates. Corporate operations are reported as a non-operating segment and include activities which support the Company’s builder operations, land development, title and mortgage operations through centralization of certain administrative functions, such as finance, treasury, information technology and human resources, as well as development of strategic initiatives. Unallocated corporate expenses are reported in the corporate, other and unallocated segment as these activities do not share a majority of aggregation criteria with either the builder operations or land development segments. While the operations of Challenger meet the criteria for an operating segment, they do not meet the quantitative thresholds of ASC 280 to be separately reported and disclosed. As such, Challenger’s results are included within the corporate, other and unallocated segment. Green Brick Title, LLC (“Green Brick Title”), Providence Group Title, and Green Brick Mortgage operations are not economically similar to either builder operations or land development and do not meet the quantitative thresholds of ASC 280 to be separately reported and disclosed. As such, these entities’ results are included within the corporate, other and unallocated segment. Operations of EJB River Holdings and GBTM Sendera do not meet the criteria for an operating segment, and they do not meet the quantitative thresholds of ASC 280 to be separately reported and disclosed. As such, these results are included within the corporate, other and unallocated segment. Segment information for the year ended December 31, 2018 has been restated to conform with the revised segment presentation for the years ended December 31, 2020 and 2019. Financial information relating to the Company’s reportable segments is as follows. Operational results of each reportable segment are not necessarily indicative of the results that would have been achieved had the reportable segment been an independent, stand-alone entity during the periods presented. Years Ended December 31, (in thousands) 2020 2019 2018 Revenues: (1) Builder operations Central $ 645,475 $ 396,900 $ 282,218 Southeast 287,257 363,680 301,595 Total builder operations 932,732 760,580 583,813 Land development 43,289 31,080 39,834 Total revenues $ 976,021 $ 791,660 $ 623,647 Gross profit: Builder operations Central $ 172,341 $ 88,480 $ 75,006 Southeast 77,121 92,088 82,935 Total builder operations 249,462 180,568 157,941 Land development 10,877 8,050 9,334 Corporate, other and unallocated (2) (25,735) (19,536) (13,073) Total gross profit $ 234,604 $ 169,082 $ 154,202 Interest expense: (3) Builder operations Central $ — $ 24,072 $ 18,207 Southeast 15,635 15,686 12,795 Total builder operations 15,635 39,758 31,002 Corporate, other and unallocated (15,635) (39,758) (31,002) Total interest expense $ — $ — $ — Income before income taxes: Builder operations Central $ 99,624 $ 34,801 $ 36,191 Southeast 41,061 46,268 46,297 Total builder operations 140,685 81,069 82,488 Land development 9,512 13,469 8,439 Corporate, other and unallocated (4) (7,384) (10,209) (9,256) Income before income taxes $ 142,813 $ 84,329 $ 81,671 (in thousands) December 31, 2020 December 31, 2019 Inventory: Builder operations Central $ 421,477 $ 251,677 Southeast 183,623 168,140 Total builder operations 605,100 419,817 Land development 213,555 308,071 Corporate, other and unallocated (5) 25,980 25,679 Total inventory $ 844,635 $ 753,567 Goodwill: Builder operations - Southeast $ 680 $ 680 (1) The sum of Builder operations Central and Southeast segments’ revenues does not equal residential units revenue included in the consolidated statements of income in periods when our builders have revenues from land or lot closings, which for the years ended December 31, 2020, 2019 and 2018 were $2.6 million, $0.8 million and $4.9 million, respectively. (2) Corporate, other and unallocated gross loss is comprised of capitalized overhead and capitalized interest adjustments that are not allocated to builder operations and land development segments. (3) Interest expense of Builder operations Central and Southeast segments represents an interest expense charged by Corporate, other and unallocated segment in relation to financing purchases of land and construction of some of the Company’s Dallas and Atlanta builders. Intercompany interest revenue of the Corporate, other and unallocated segment is eliminated in consolidation. (4) Corporate, other and unallocated loss before income taxes includes results from Green Brick Title, LLC and investments in unconsolidated subsidiaries. | ||
Schedule of Segment Reporting Information | Financial information relating to the Company’s reportable segments is as follows. Operational results of each reportable segment are not necessarily indicative of the results that would have been achieved had the reportable segment been an independent, stand-alone entity during the periods presented. Years Ended December 31, (in thousands) 2020 2019 2018 Revenues: (1) Builder operations Central $ 645,475 $ 396,900 $ 282,218 Southeast 287,257 363,680 301,595 Total builder operations 932,732 760,580 583,813 Land development 43,289 31,080 39,834 Total revenues $ 976,021 $ 791,660 $ 623,647 Gross profit: Builder operations Central $ 172,341 $ 88,480 $ 75,006 Southeast 77,121 92,088 82,935 Total builder operations 249,462 180,568 157,941 Land development 10,877 8,050 9,334 Corporate, other and unallocated (2) (25,735) (19,536) (13,073) Total gross profit $ 234,604 $ 169,082 $ 154,202 Interest expense: (3) Builder operations Central $ — $ 24,072 $ 18,207 Southeast 15,635 15,686 12,795 Total builder operations 15,635 39,758 31,002 Corporate, other and unallocated (15,635) (39,758) (31,002) Total interest expense $ — $ — $ — Income before income taxes: Builder operations Central $ 99,624 $ 34,801 $ 36,191 Southeast 41,061 46,268 46,297 Total builder operations 140,685 81,069 82,488 Land development 9,512 13,469 8,439 Corporate, other and unallocated (4) (7,384) (10,209) (9,256) Income before income taxes $ 142,813 $ 84,329 $ 81,671 (in thousands) December 31, 2020 December 31, 2019 Inventory: Builder operations Central $ 421,477 $ 251,677 Southeast 183,623 168,140 Total builder operations 605,100 419,817 Land development 213,555 308,071 Corporate, other and unallocated (5) 25,980 25,679 Total inventory $ 844,635 $ 753,567 Goodwill: Builder operations - Southeast $ 680 $ 680 | ||
Segment Reporting Information [Line Items] | |||
Document Period End Date | Dec. 31, 2020 | ||
Inventory | $ 844,635 | $ 753,567 | |
Results of Operations, Income before Income Taxes | (142,813) | (84,329) | $ (81,671) |
Revenues | 976,021 | 791,660 | 623,647 |
Gross profit | 234,604 | 169,082 | 154,202 |
Interest Expense | 0 | 0 | 0 |
Inventory, Real Estate | 844,635 | 753,567 | |
Goodwill | 680 | 680 | |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Inventory | 25,980 | 25,679 | |
Results of Operations, Income before Income Taxes | 7,384 | 10,209 | (9,256) |
Other General Expense | (25,735) | (19,536) | (13,073) |
Interest Expense | (15,635) | (39,758) | 31,002 |
us-gaap_HomeBuildingMember | |||
Segment Reporting Information [Line Items] | |||
Inventory | 605,100 | 419,817 | |
Results of Operations, Income before Income Taxes | (140,685) | (81,069) | (82,488) |
Revenues | 932,732 | 760,580 | 583,813 |
Gross profit | 249,462 | 180,568 | 157,941 |
Interest Expense | 15,635 | 39,758 | 31,002 |
sic_Z6552 Land Subdividers and Developers (No Cemeteries) | |||
Segment Reporting Information [Line Items] | |||
Inventory | 213,555 | 308,071 | |
Results of Operations, Income before Income Taxes | (9,512) | (13,469) | (8,439) |
Revenues | 43,289 | 31,080 | 39,834 |
Gross profit | 10,877 | 8,050 | 9,334 |
Central | us-gaap_HomeBuildingMember | |||
Segment Reporting Information [Line Items] | |||
Inventory | 421,477 | 251,677 | |
Results of Operations, Income before Income Taxes | (99,624) | (34,801) | (36,191) |
Revenues | 645,475 | 396,900 | 282,218 |
Gross profit | 172,341 | 88,480 | 75,006 |
Interest Expense | 0 | 24,072 | 18,207 |
Southeast | us-gaap_HomeBuildingMember | |||
Segment Reporting Information [Line Items] | |||
Inventory | 183,623 | 168,140 | |
Results of Operations, Income before Income Taxes | (41,061) | (46,268) | (46,297) |
Revenues | 287,257 | 363,680 | 301,595 |
Gross profit | 77,121 | 92,088 | 82,935 |
Interest Expense | 15,635 | 15,686 | 12,795 |
Real Estate, Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 45,845 | 31,830 | 44,754 |
Real Estate, Other [Member] | us-gaap_HomeBuildingMember | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,600 | 800 | 4,900 |
Real Estate, Other [Member] | Central | |||
Segment Reporting Information [Line Items] | |||
Revenues | 43,788 | 31,080 | 40,184 |
Real Estate, Other [Member] | Southeast | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 2,057 | $ 750 | $ 4,570 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Employee Benefits | EMPLOYEE BENEFITSWe have a qualifying 401(k) defined contribution plan that covers all employees of the Company. Each year, we may make discretionary matching contributions equal to a percentage of the employees’ contributions. The Company contributed $0.9 million, $0.8 million and $0.6 million of matching contributions to the 401(k) plan during the years ended December 31, 2020, 2019 and 2018. | ||
Company match contribution to 401(k) plan | $ 0.9 | $ 0.8 | $ 0.6 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Earnings Per Share [Text Block] | EARNINGS PER SHARE The Company’s restricted stock awards have the right to receive forfeitable dividends on an equal basis with common stock and therefore are not considered participating securities that must be included in the calculation of net income per share using the two-class method. Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during each period, adjusted for non-vested shares of restricted stock awards during each period. Diluted earnings per share is calculated using the treasury stock method and includes the effect of all dilutive securities, including stock options and restricted stock awards. The computation of basic and diluted net income attributable to Green Brick Partners, Inc. per share is as follows (in thousands, except per share amounts): Years Ended December 31, 2020 2019 2018 Net income attributable to Green Brick Partners, Inc. $ 113,693 $ 58,656 $ 51,623 Weighted-average number of shares outstanding - basic 50,568 50,530 50,652 Basic net income attributable to Green Brick Partners, Inc. per share $ 2.25 $ 1.16 $ 1.02 Weighted-average number of shares outstanding - basic 50,568 50,530 50,652 Dilutive effect of stock options and restricted stock awards 227 106 99 Weighted-average number of shares outstanding - diluted 50,795 50,636 50,751 Diluted net income attributable to Green Brick Partners, Inc. per share $ 2.24 $ 1.16 $ 1.02 The following shares that could potentially dilute earnings per share in the future are not included in the determination of diluted net income attributable to Green Brick Partners, Inc. per common share (in thousands): Years Ended December 31, 2020 2019 2018 Antidilutive options to purchase common stock and restricted stock awards 10 14 8 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 10 | 14 | 8 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The computation of basic and diluted net income attributable to Green Brick Partners, Inc. per share is as follows (in thousands, except per share amounts): Years Ended December 31, 2020 2019 2018 Net income attributable to Green Brick Partners, Inc. $ 113,693 $ 58,656 $ 51,623 Weighted-average number of shares outstanding - basic 50,568 50,530 50,652 Basic net income attributable to Green Brick Partners, Inc. per share $ 2.25 $ 1.16 $ 1.02 Weighted-average number of shares outstanding - basic 50,568 50,530 50,652 Dilutive effect of stock options and restricted stock awards 227 106 99 Weighted-average number of shares outstanding - diluted 50,795 50,636 50,751 Diluted net income attributable to Green Brick Partners, Inc. per share $ 2.24 $ 1.16 $ 1.02 | ||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The following shares that could potentially dilute earnings per share in the future are not included in the determination of diluted net income attributable to Green Brick Partners, Inc. per common share (in thousands): Years Ended December 31, 2020 2019 2018 Antidilutive options to purchase common stock and restricted stock awards 10 14 8 | ||
Net Income (Loss) Attributable to Parent | $ 113,693 | $ 58,656 | $ 51,623 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 227 | 106 | 99 |
Weighted Average Number of Shares Outstanding, Basic | 50,568 | 50,530 | 50,652 |
Earnings Per Share, Basic | $ 2.25 | $ 1.16 | $ 1.02 |
Weighted Average Number of Shares Outstanding, Diluted | 50,795 | 50,636 | 50,751 |
Earnings Per Share, Diluted | $ 2.24 | $ 1.16 | $ 1.02 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Millions | Dec. 31, 2020USD ($) |
Fair Value Disclosures [Abstract] | |
Business Combination, Contingent Consideration, Liability, Measurement Input [Extensible List] | 0.165 |
Lines of Credit, Fair Value Disclosure | $ 125.2 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 8 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | |
Related Party Transactions [Abstract] | ||||
Related Party Transactions | RELATED PARTY TRANSACTIONS During 2020, 2019 and 2018, the Company had the following related party transactions through the normal course of business. Corporate Officers Trevor Brickman, the son of Green Brick’s Chief Executive Officer, is the President of Centre Living. Following a series of transactions described in Note 3, effective December 31, 2019, Green Brick’s ownership interest in Centre Living is 90% and Trevor Brickman’s ownership interest is 10%. Green Brick has 90% voting control over the operations of Centre Living. As such, 100% of Centre Living’s operations are included within our consolidated financial statements. During the year ended December 31, 2020, Trevor Brickman made cash contributions to Centre Living of $0.4 million. GRBK GHO GRBK GHO leases office space from entities affiliated with the president of GRBK GHO. During the years ended December 31, 2020 and 2019, and during the period from April 26, 2018 through December 31, 2018, GRBK GHO incurred lease costs of $0.1 million in each period, under such lease agreements. As of December 31, 2020, there were no amounts due to the affiliated entities related to such lease agreements. GRBK GHO receives title closing services on the purchase of land and third-party lots from an entity affiliated with the president of GRBK GHO. During the years ended December 31, 2020 and 2019, and during the period from April 26, 2018 through December 2018, GRBK GHO incurred de minimis fees related to such title closing services. As of December 31, 2020, no amounts were due to the title company affiliate. | |||
Related Party Transaction [Line Items] | ||||
Document Period End Date | Dec. 31, 2020 | |||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 17,281,000 | $ 9,167,000 | $ 13,227,000 | $ 16,691,000 |
Centre Living [Member] | Green Brick Partners, Inc. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 90.00% | 90.00% | ||
Centre Living [Member] | Trevor Brickman | ||||
Related Party Transaction [Line Items] | ||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 10.00% | |||
GHO Homes [Member] | Office Space Lease Agreements [Member] | Affiliated Entity [Member] | ||||
Related Party Transaction [Line Items] | ||||
Lease, Cost | $ 100,000 | |||
Due to Related Parties | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Letters of Credit and Performance Bonds During the ordinary course of business, certain regulatory agencies and municipalities require the Company to post letters of credit or performance bonds related to development projects. As of December 31, 2020 and 2019, letters of credit and performance bonds outstanding were $9.8 million and $14.4 million, respectively. The Company does not believe that it is likely that any material claims will be made under a letter of credit or performance bond in the foreseeable future. Warranties Warranty activity, included in accrued expenses in our consolidated balance sheets, consists of the following (in thousands): December 31, 2020 December 31, 2019 Warranty accrual, beginning of period $ 3,840 $ 2,980 Warranties issued 4,553 3,358 Changes in liability for existing warranties (26) 37 Settlements (1,960) (2,535) Warranty accrual, end of period $ 6,407 $ 3,840 Operating Leases The Company has leases associated with office and design center space in Georgia, Texas, and Florida that, at the commencement date, have a lease term of more than 12 months and are classified as operating leases. The exercise of any extension options available in such operating lease contracts is not reasonably certain. Operating lease cost of $1.3 million and $1.3 million for these leases for the years ended December 31, 2020 and 2019, respectively, is included in selling, general and administrative expense in the consolidated statements of income. For the years ended December 31, 2020 and 2019, cash paid for amounts included in the measurement of operating lease liabilities was $1.3 million and $1.2 million, respectively. Rental expense for these leases totaled $1.2 million for the year ended December 31, 2018 and was included in selling, general and administrative expense in the consolidated statements of income. As of December 31, 2020, the weighted-average remaining lease term and the weighted-average discount rate used in calculating our lease liabilities were 3.0 years and 4.85%, respectively. The future annual undiscounted cash flows in relation to the operating leases and a reconciliation of such undiscounted cash flows to the operating lease liabilities recognized in the consolidated balance sheet as of December 31, 2020 are presented below (in thousands): 2021 $ 1,093 2022 816 2023 1,216 2024 86 2025 87 Thereafter $ 66 Total future lease payments $ 3,364 Less: Interest $ 773 Present value of lease liabilities $ 2,591 The Company elected the short-term lease recognition exemption for all leases that, at the commencement date, have a lease term of 12 months or less and do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise. For such leases, the Company does not recognize right-of-use assets or lease liabilities and instead recognizes lease payments in the consolidated income statements on a straight-line basis. Short-term lease costs of $0.4 million for each of the years ended December 31, 2020 and 2019, related to such lease contracts are included in selling, general and administrative expense in the consolidated statements of income. Legal Matters Lawsuits, claims and proceedings may be instituted or asserted against us in the normal course of business. The Company is also subject to local, state and federal laws and regulations related to land development activities, house construction standards, sales practices, title company regulations, employment practices and environmental protection. As a result, the Company may be subject to periodic examinations or inquiry by agencies administering these laws and regulations. The Company records an accrual for legal claims and regulatory matters when they are probable of occurring and a potential loss is reasonably estimable. The Company accrues for these matters based on facts and circumstances specific to each matter and revises these estimates when necessary. In view of the inherent difficulty of predicting outcomes of legal claims and related contingencies, the Company generally cannot predict their ultimate resolution, related timing or eventual loss. If evaluations indicate loss contingencies that could be material are not probable, but are reasonably possible, the Company will disclose their nature with an estimate of the possible range of losses or a statement that such loss is not reasonably estimable. We believe that the disposition of legal claims and related contingencies will not have a material adverse effect on our results of operations and liquidity or on our financial condition. | |
Schedule of Warranty Activity | Warranties Warranty activity, included in accrued expenses in our consolidated balance sheets, consists of the following (in thousands): December 31, 2020 December 31, 2019 Warranty accrual, beginning of period $ 3,840 $ 2,980 Warranties issued 4,553 3,358 Changes in liability for existing warranties (26) 37 Settlements (1,960) (2,535) Warranty accrual, end of period $ 6,407 $ 3,840 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Standard Product Warranty Accrual, Increase (Decrease) for Preexisting Warranties | $ (26) | $ 37 |
Document Period End Date | Dec. 31, 2020 | |
Letters of Credit Outstanding, Amount | $ 9,800 | 14,400 |
Schedule of Annual Minimum Operating Lease Payments | The future annual undiscounted cash flows in relation to the operating leases and a reconciliation of such undiscounted cash flows to the operating lease liabilities recognized in the consolidated balance sheet as of December 31, 2020 are presented below (in thousands): 2021 $ 1,093 2022 816 2023 1,216 2024 86 2025 87 Thereafter $ 66 Total future lease payments $ 3,364 Less: Interest $ 773 Present value of lease liabilities $ 2,591 | |
Operating Leased Assets [Line Items] | ||
2021 | $ 86 | |
2025 | 87 | |
Lessee, Operating Lease, Liability, to be Paid, after Year Five | 66 | |
Operating Lease, Liability | 2,591 | 3,564 |
2020 | $ 1,216 | |
Operating Lease, Weighted Average Discount Rate, Percent | 4.85% | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | $ 773 | |
2018 | 1,093 | |
Total | 3,364 | |
2019 | 816 | |
Short-term Lease, Cost | $ 400 | |
Operating Lease, Weighted Average Remaining Lease Term | 3 years | |
Operating Lease, Payments | $ 1,300 | |
Operating Lease, Expense | 1,300 | |
Operating Leases, Rent Expense | 1,200 | |
Accrued Expenses | ||
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Warranty accrual, beginning of period | 3,840 | 2,980 |
Warranties issued | 4,553 | 3,358 |
Settlements | (1,960) | (2,535) |
Warranty accrual, end of period | $ 6,407 | $ 3,840 |
Intangible Assets, Goodwill a_3
Intangible Assets, Goodwill and Other (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 200,000 | $ 0.1 |
Uncategorized Items - grbk-2020
Label | Element | Value |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 40,289,000 |