TRI POINTE GROUP, INC., 10-Q filed on 7/24/2020
Quarterly Report
v3.20.2
Cover Page - shares
6 Months Ended
Jun. 30, 2020
Jul. 10, 2020
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2020  
Document Transition Report false  
Entity File Number 1-35796  
Entity Registrant Name TRI Pointe Group, Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 61-1763235  
Entity Address, Address Line One 19540 Jamboree Road  
Entity Address, Address Line Two Suite 300  
Entity Address, City or Town Irvine  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 92612  
City Area Code 949  
Local Phone Number 438-1400  
Title of 12(b) Security Common Stock, par value $0.01 per share  
Trading Symbol TPH  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   130,325,865
Entity Central Index Key 0001561680  
Amendment Flag false  
Document Fiscal Period Focus Q2  
Document Fiscal year Focus 2020  
Current Fiscal Year End Date --12-31  
v3.20.2
Consolidated Balance Sheets - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Assets    
Cash and cash equivalents $ 474,545 $ 329,011
Receivables 87,580 69,276
Real estate inventories 3,012,622 3,065,436
Investments in unconsolidated entities 36,040 11,745
Goodwill and other intangible assets, net 159,626 159,893
Deferred tax assets, net 39,744 49,904
Other assets 167,747 173,425
Total assets 3,977,904 3,858,690
Liabilities    
Accounts payable 71,086 66,120
Accrued expenses and other liabilities 314,818 322,043
Loans payable 250,000 250,000
Senior notes, net 1,166,189 1,033,985
Total liabilities 1,802,093 1,672,148
Commitments and contingencies (Note 13)
Stockholders’ equity:    
Preferred stock, $0.01 par value, 50,000,000 shares authorized; no shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively 0 0
Common stock, $0.01 par value, 500,000,000 shares authorized;    130,325,865 and 136,149,633 shares issued and outstanding at    June 30, 2020 and December 31, 2019, respectively 1,303 1,361
Additional paid-in capital 482,111 581,195
Retained earnings 1,692,385 1,603,974
Total stockholders’ equity 2,175,799 2,186,530
Noncontrolling interests 12 12
Total equity 2,175,811 2,186,542
Total liabilities and equity $ 3,977,904 $ 3,858,690
v3.20.2
Consolidated Balance Sheets (Parenthetical) - $ / shares
Jun. 30, 2020
Dec. 31, 2019
Statement of Financial Position [Abstract]    
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, shares authorized (shares) 50,000,000 50,000,000
Preferred stock, shares issued (shares) 0 0
Preferred stock, shares outstanding (shares) 0 0
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (shares) 500,000,000 500,000,000
Common stock, shares issued (shares) 130,325,865 136,149,633
Common stock, shares outstanding (shares) 130,325,865 136,149,633
v3.20.2
Consolidated Statements of Operations (unaudited) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Other operations revenue $ 648 $ 637 $ 1,266 $ 1,235
Total revenues 770,106 698,714 1,367,156 1,193,346
Other operations expense 624 627 1,248 1,217
Sales and marketing 45,194 47,065 87,831 86,054
General and administrative 37,554 36,854 77,391 75,451
Restructuring charges 5,549 0 5,549 0
Homebuilding income from operations 77,081 33,166 116,355 26,289
Equity in loss of unconsolidated entities (25) (26) (39) (51)
Other (expense) income, net (6,328) 153 (5,955) 6,394
Homebuilding income before income taxes 70,728 33,293 110,361 32,632
Equity in income of unconsolidated entities 2,932 1,972 4,488 2,747
Financial services income before income taxes 3,943 2,101 6,014 2,857
Income before income taxes 74,671 35,394 116,375 35,489
Provision for income taxes (18,143) (9,132) (27,964) (9,156)
Net income $ 56,528 $ 26,262 $ 88,411 $ 26,333
Earnings per share        
Basic (in dollars per share) $ 0.43 $ 0.18 $ 0.67 $ 0.19
Diluted (in dollars per share) $ 0.43 $ 0.18 $ 0.67 $ 0.18
Weighted average shares outstanding        
Basic (shares) 130,292,563 142,244,166 132,326,856 142,055,766
Diluted (shares) 130,506,567 142,471,191 132,763,775 142,431,725
Homebuilding        
Total revenues $ 767,810 $ 697,958 $ 1,363,266 $ 1,192,288
Home sales        
Home sales and Land and lot sales revenue 766,942 692,138 1,361,780 1,184,841
Cost of sales and expenses 601,434 574,684 1,074,316 996,220
Land and lots        
Home sales and Land and lot sales revenue 220 5,183 220 6,212
Cost of sales and expenses 374 5,562 576 7,057
Financial Services        
Home sales and Land and lot sales revenue 2,296 756 3,890 1,058
Total revenues 2,296 756 3,890 1,058
Cost of sales and expenses $ 1,285 $ 627 $ 2,364 $ 948
v3.20.2
Consolidated Statements of Equity (unaudited) - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-in Capital
Retained Earnings
Total Stockholders’ Equity
Noncontrolling Interests
Beginning Balance at Dec. 31, 2018 $ 2,056,937 $ 1,417 $ 658,720 $ 1,396,787 $ 2,056,924 $ 13
Beginning Balance (shares) at Dec. 31, 2018   141,661,713        
Increase (Decrease) in Stockholders' Equity            
Net income 26,333     26,333 26,333  
Shares issued under share-based awards 199 $ 6 193   199  
Shares issued under share-based awards (shares)   596,950        
Minimum tax withholding paid on behalf of employees for restricted stock units (3,612)   (3,612)   (3,612)  
Stock-based compensation expense 6,786   6,786   6,786  
Ending Balance at Jun. 30, 2019 2,086,643 $ 1,423 662,087 1,423,120 2,086,630 13
Ending Balance (shares) at Jun. 30, 2019   142,258,663        
Beginning Balance at Mar. 31, 2019 2,057,036 $ 1,422 658,743 1,396,858 2,057,023 13
Beginning Balance (shares) at Mar. 31, 2019   142,210,147        
Increase (Decrease) in Stockholders' Equity            
Net income 26,262     26,262 26,262  
Shares issued under share-based awards 1 $ 1 0   1  
Shares issued under share-based awards (shares)   48,516        
Minimum tax withholding paid on behalf of employees for restricted stock units (7)   (7)   (7)  
Stock-based compensation expense 3,351   3,351   3,351  
Ending Balance at Jun. 30, 2019 2,086,643 $ 1,423 662,087 1,423,120 2,086,630 13
Ending Balance (shares) at Jun. 30, 2019   142,258,663        
Beginning Balance at Dec. 31, 2019 $ 2,186,542 $ 1,361 581,195 1,603,974 2,186,530 12
Beginning Balance (shares) at Dec. 31, 2019 136,149,633 136,149,633        
Increase (Decrease) in Stockholders' Equity            
Net income $ 88,411     88,411 88,411  
Shares issued under share-based awards 921 $ 8 913   921  
Shares issued under share-based awards (shares)   734,555        
Minimum tax withholding paid on behalf of employees for restricted stock units (5,473)   (5,473)   (5,473)  
Stock-based compensation expense 7,411   7,411   7,411  
Share repurchases (102,001) $ (66) (101,935)   (102,001)  
Share repurchases (Shares)   (6,558,323)        
Ending Balance at Jun. 30, 2020 $ 2,175,811 $ 1,303 482,111 1,692,385 2,175,799 12
Ending Balance (shares) at Jun. 30, 2020 130,325,865 130,325,865        
Beginning Balance at Mar. 31, 2020 $ 2,115,293 $ 1,302 478,122 1,635,857 2,115,281 12
Beginning Balance (shares) at Mar. 31, 2020   130,236,981        
Increase (Decrease) in Stockholders' Equity            
Net income 56,528     56,528 56,528  
Shares issued under share-based awards 231 $ 1 230   231  
Shares issued under share-based awards (shares)   88,884        
Minimum tax withholding paid on behalf of employees for restricted stock units (27)   (27)   (27)  
Stock-based compensation expense 3,786   3,786   3,786  
Share repurchases 0 $ 0 0   0  
Share repurchases (Shares)   0        
Ending Balance at Jun. 30, 2020 $ 2,175,811 $ 1,303 $ 482,111 $ 1,692,385 $ 2,175,799 $ 12
Ending Balance (shares) at Jun. 30, 2020 130,325,865 130,325,865        
v3.20.2
Consolidated Statements of Cash Flows (unaudited) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Cash flows from operating activities:    
Net income $ 88,411 $ 26,333
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Depreciation and amortization 12,176 11,561
Equity in income of unconsolidated entities, net (4,449) (2,696)
Deferred income taxes, net 10,160 3,097
Amortization of stock-based compensation 7,411 6,786
Charges for impairments and lot option abandonments 1,729 5,490
Changes in assets and liabilities:    
Real estate inventories 53,902 (50,700)
Receivables (18,304) (6,778)
Other assets 3,677 (1,774)
Accounts payable 4,966 (18,221)
Accrued expenses and other liabilities (5,784) (80,964)
Returns on investments in unconsolidated entities, net 5,475 3,927
Loss on extinguishment of debt 6,858 0
Net cash provided by (used in) operating activities 166,228 (103,939)
Cash flows from investing activities:    
Purchases of property and equipment (12,002) (13,142)
Proceeds from sale of property and equipment 17 46
Investments in unconsolidated entities (25,715) (712)
Net cash used in investing activities (37,700) (13,808)
Cash flows from financing activities:    
Borrowings from debt 850,000 400,000
Repayment of debt (721,673) (381,895)
Debt issuance costs (4,768) (3,125)
Proceeds from issuance of common stock under share-based awards 921 199
Minimum tax withholding paid on behalf of employees for share-based awards (5,473) (3,612)
Share repurchases (102,001) 0
Net cash provided by financing activities 17,006 11,567
Net increase (decrease) in cash and cash equivalents 145,534 (106,180)
Cash and cash equivalents–beginning of period 329,011 277,696
Cash and cash equivalents–end of period $ 474,545 $ 171,516
v3.20.2
Organization, Basis of Presentation and Summary of Significant Accounting Policies
6 Months Ended
Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization, Basis of Presentation and Summary of Significant Accounting Policies Organization, Basis of Presentation and Summary of Significant Accounting Policies
Organization
TRI Pointe is engaged in the design, construction and sale of innovative single-family attached and detached homes through its portfolio of six quality brands across ten states, including Maracay in Arizona, Pardee Homes in California and Nevada, Quadrant Homes in Washington, Trendmaker Homes in Texas, TRI Pointe Homes in California, Colorado and the Carolinas and Winchester Homes in Maryland and Virginia.
Basis of Presentation
The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They should be read in conjunction with our consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019. In the opinion of management, all adjustments consisting of normal recurring adjustments, necessary for a fair presentation with respect to interim financial statements, have been included. The results for the three and six months ended June 30, 2020 are not necessarily indicative of the results to be expected for the full year ending December 31, 2020 due to seasonal variations and other factors, such as the effects of the novel coronavirus (“COVID-19”) and its influence on our future results.
The consolidated financial statements include the accounts of TRI Pointe Group and its wholly owned subsidiaries, as well as other entities in which TRI Pointe Group has a controlling interest and variable interest entities (“VIEs”) in which TRI Pointe Group is the primary beneficiary.  The noncontrolling interests as of June 30, 2020 and December 31, 2019 represent the outside owners’ interests in the Company’s consolidated entities.  All significant intercompany accounts have been eliminated upon consolidation.
Use of Estimates
Our financial statements have been prepared in accordance with GAAP. The preparation of these financial statements requires our management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from our estimates.
Revenue Recognition
We recognize revenue in accordance with Accounting Standards Topic 606 (“ASC 606”), Revenue from Contracts with Customers. Under ASC 606, we apply the following steps to determine the timing and amount of revenue to recognize: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation.
Home sales revenue
We generate the majority of our total revenues from home sales, which consists of our core business operation of building and delivering completed homes to homebuyers. Home sales revenue and related profit is generally recognized when title to and possession of the home is transferred to the homebuyer at the home closing date. Our performance obligation to deliver the agreed-upon home is generally satisfied in less than one year from the original contract date. Included in home sales revenue are forfeited deposits, which occur when homebuyers cancel home purchase contracts that include a nonrefundable deposit. Both revenue from forfeited deposits and deferred revenue resulting from uncompleted performance obligations existing at the time we deliver new homes to our homebuyers are immaterial.
Land and lot sales revenue
Historically, we have generated land and lot sales revenue from a small number of transactions, although in some years we have realized a significant amount of revenue and gross margin. We do not expect our future land and lot sales revenue to be material, but we still consider these sales to be an ordinary part of our business, thus meeting the definition of contracts with customers. Similar to our home sales, revenue from land and lot sales is typically fully recognized when the land and lot sales transactions are consummated, at which time no further performance obligations are left to be satisfied. Some of our historical land and lot sales have included future profit participation rights. We will recognize future land and lot sales revenue in the periods in which all closing conditions are met, subject to the constraint on variable consideration related to profit participation rights, if such rights exist in the sales contract.
Other operations revenue
The majority of our homebuilding other operations revenue relates to a ground lease at our Quadrant Homes reporting segment. We are responsible for making lease payments to the landowner, and we collect sublease payments from the buyers of the buildings. This ground lease is accounted for in accordance with ASC Topic 842, Leases. We do not recognize a material profit on this ground lease.
Financial services revenues
TRI Pointe Solutions is a reportable segment and is comprised of our TRI Pointe Connect mortgage financing operations, TRI Pointe Assurance title and escrow services operations, and TRI Pointe Advantage property and casualty insurance agency operations.
Mortgage financing operations
TRI Pointe Connect was formed as a joint venture with an established mortgage lender and is accounted for under the equity method of accounting.  We record a percentage of income earned by TRI Pointe Connect based on our ownership percentage in this joint venture. TRI Pointe Connect activity appears as equity in income of unconsolidated entities under the Financial Services section of our consolidated statements of operations.
Title and escrow services operations
TRI Pointe Assurance provides title examinations for our homebuyers in Austin (Texas), Colorado and Maryland and both title examinations and escrow services for our homebuyers in Arizona, Nevada, Texas and Virginia.  TRI Pointe Assurance is a wholly owned subsidiary of TRI Pointe and acts as a title agency for First American Title Insurance Company. Revenue from our title and escrow services operations is fully recognized at the time of the consummation of the home sales transaction, at which time no further performance obligations are left to be satisfied. TRI Pointe Assurance revenue is included in the Financial Services section of our consolidated statements of operations.
Property and casualty insurance agency operations
TRI Pointe Advantage is a wholly owned subsidiary of TRI Pointe and provides property and casualty insurance agency services that help facilitate the closing process in all of the markets in which we operate. The total consideration for these services, including renewal options, is estimated upon the issuance of the initial insurance policy, subject to constraint. TRI Pointe Advantage revenue is included in the Financial Services section of our consolidated statements of operations.
Restructuring Charges
In May 2020, due to the existing and anticipated future impact of the COVID-19 pandemic on our business, we implemented a workforce reduction plan. As a result of the workforce reduction plan, we incurred $5.5 million of pre-tax restructuring charges consisting of severance and related costs, substantially all of which had been paid as of June 30, 2020.
Recently Issued Accounting Standards Not Yet Adopted
In December 2019, the FASB issued Accounting Standards Update (“ASU”) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for the Company beginning after December 15, 2020. We do not expect the adoption of ASU 2019-12 to have a material impact on our consolidated financial statements.
Adoption of New Accounting Standards
In January 2017, the FASB issued ASU No. 2017-04, IntangiblesGoodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment (“ASU 2017-04”), which removes the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted, and applied prospectively. We adopted ASU 2017-04 on January 1, 2020 and our adoption did not have a material impact on our consolidated financial statements.
In June 2016, the FASB issued ASU No. 2016-13, Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to estimate credit losses for financial instruments, including receivables from community facilities districts or similar municipalities. ASU 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted. We adopted ASU 2016-13 on January 1, 2020 and our adoption did not have a material impact on our consolidated financial statements.
v3.20.2
Segment Information
6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Segment Information Segment Information
We operate two principal businesses: homebuilding and financial services.
Our homebuilding operations consist of six homebuilding brands that acquire and develop land and construct and sell single-family detached and attached homes. In accordance with ASC Topic 280, Segment Reporting, in determining the most appropriate reportable segments, we considered similar economic and other characteristics, including product types, average selling prices, gross profits, production processes, suppliers, subcontractors, regulatory environments, land acquisition results, and underlying demand and supply. Based upon these factors, our homebuilding operations are comprised of the following six reportable segments: Maracay, consisting of operations in Arizona; Pardee Homes, consisting of operations in California and Nevada; Quadrant Homes, consisting of operations in Washington; Trendmaker Homes, consisting of operations in Texas; TRI Pointe Homes, consisting of operations in California and Colorado, as well as early stage operations in the Carolinas; and Winchester Homes, consisting of operations in Maryland and Virginia.
Our TRI Pointe Solutions financial services operation is a reportable segment and is comprised of our TRI Pointe Connect mortgage financing operations, our TRI Pointe Assurance title and escrow services operations, and our TRI Pointe Advantage property and casualty insurance agency operations. For further details, see Note 1, Organization, Basis of Presentation and Summary of Significant Accounting Policies.
Corporate is a non-operating segment that develops and implements company-wide strategic initiatives and provides support to our homebuilding reporting segments by centralizing certain administrative functions, such as marketing, legal, accounting, treasury, insurance, internal audit and risk management, information technology and human resources, to benefit from economies of scale. Our Corporate non-operating segment also includes general and administrative expenses related to operating our corporate headquarters. A portion of the expenses incurred by Corporate is allocated to the homebuilding reporting segments.
The reportable segments follow the same accounting policies used for our consolidated financial statements, as described in Note 1, Organization, Basis of Presentation and Summary of Significant Accounting Policies. 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.
Total revenues and income before income taxes for each of our reportable segments were as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Revenues  
Maracay $86,674  $55,653  $158,426  $95,214  
Pardee Homes242,282  194,699  420,684  329,562  
Quadrant Homes37,298  71,066  81,372  114,937  
Trendmaker Homes121,257  121,963  217,377  192,784  
TRI Pointe Homes206,474  192,752  365,144  364,543  
Winchester Homes73,825  61,825  120,263  95,248  
Total homebuilding revenues767,810  697,958  1,363,266  1,192,288  
Financial services2,296  756  3,890  1,058  
Total$770,106  $698,714  $1,367,156  $1,193,346  
Income (loss) before income taxes
Maracay $8,042  $2,986  $12,604  $4,176  
Pardee Homes48,980  14,735  82,459  13,944  
Quadrant Homes2,246  5,193  4,943  2,554  
Trendmaker Homes10,512  6,908  15,309  5,310  
TRI Pointe Homes15,741  12,280  20,101  22,489  
Winchester Homes4,670  2,555  5,716  1,789  
Corporate(19,463) (11,364) (30,771) (17,630) 
Total homebuilding income before income taxes70,728  33,293  110,361  32,632  
Financial services3,943  2,101  6,014  2,857  
Total$74,671  $35,394  $116,375  $35,489  
 
Total real estate inventories and total assets for each of our reportable segments, as of the date indicated, were as follows (in thousands):
June 30, 2020December 31, 2019
Real estate inventories
Maracay$352,316  $338,259  
Pardee Homes1,209,444  1,218,384  
Quadrant Homes270,446  264,437  
Trendmaker Homes240,467  268,759  
TRI Pointe Homes699,708  737,662  
Winchester Homes240,241  237,935  
Total$3,012,622  $3,065,436  
Total assets
Maracay$389,587  $382,262  
Pardee Homes1,306,846  1,300,047  
Quadrant Homes320,792  331,187  
Trendmaker Homes300,157  353,610  
TRI Pointe Homes893,417  930,348  
Winchester Homes304,466  291,456  
Corporate429,512  241,357  
Total homebuilding assets3,944,777  3,830,267  
Financial services33,127  28,423  
Total$3,977,904  $3,858,690  
v3.20.2
Earnings Per Share
6 Months Ended
Jun. 30, 2020
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
The following table sets forth the components used in the computation of basic and diluted earnings per share (in thousands, except share and per share amounts):
 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
Numerator:    
Net income$56,528  $26,262  $88,411  $26,333  
Denominator:    
Basic weighted-average shares outstanding130,292,563  142,244,166  132,326,856  142,055,766  
Effect of dilutive shares:   
Stock options and unvested restricted stock units214,004  227,025  436,919  375,959  
Diluted weighted-average shares outstanding130,506,567  142,471,191  132,763,775  142,431,725  
Earnings per share    
Basic$0.43  $0.18  $0.67  $0.19  
Diluted$0.43  $0.18  $0.67  $0.18  
Antidilutive stock options and unvested restricted stock units not included in diluted earnings per share3,090,298  2,920,708  2,992,479  3,144,445  
v3.20.2
Receivables
6 Months Ended
Jun. 30, 2020
Receivables [Abstract]  
Receivables Receivables
Receivables consisted of the following (in thousands):
June 30, 2020December 31, 2019
Escrow proceeds and other accounts receivable, net$47,836  $29,282  
Warranty insurance receivable (Note 13)39,744  39,994  
Total receivables$87,580  $69,276  
Receivables are evaluated for collectability and allowances for potential losses are established or maintained on applicable receivables when collection becomes doubtful.  Receivables were net of allowances for doubtful accounts of $419,000 and $426,000 as of June 30, 2020 and December 31, 2019, respectively.
v3.20.2
Real Estate Inventories
6 Months Ended
Jun. 30, 2020
Inventory Disclosure [Abstract]  
Real Estate Inventories Real Estate Inventories
Real estate inventories consisted of the following (in thousands):
June 30, 2020December 31, 2019
Real estate inventories owned:
Homes completed or under construction$1,039,681  $951,974  
Land under development1,452,440  1,641,354  
Land held for future development152,032  122,847  
Model homes286,760  275,204  
Total real estate inventories owned2,930,913  2,991,379  
Real estate inventories not owned:
Land purchase and land option deposits81,709  74,057  
Total real estate inventories not owned81,709  74,057  
Total real estate inventories$3,012,622  $3,065,436  
 
Homes completed or under construction is comprised of costs associated with homes in various stages of construction and includes direct construction and related land acquisition and land development costs. Land under development primarily consists of land acquisition and land development costs, which include capitalized interest and real estate taxes, associated with land undergoing improvement activity. Land held for future development principally reflects land acquisition and land development costs related to land where development activity has not yet begun or has been suspended, but is expected to occur in the future. The increase in land held for future development is attributable to two projects located in the Inland Empire in California at our Pardee Homes reporting segment that were transferred from land under development.
Real estate inventories not owned represents deposits related to land purchase and land and lot option agreements, as well as consolidated inventory held by variable interest entities. For further details, see Note 7, Variable Interest Entities.
Interest incurred, capitalized and expensed were as follows (in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
Interest incurred$21,828  $21,962  $42,607  $45,335  
Interest capitalized(21,828) (21,962) (42,607) (45,335) 
Interest expensed$—  $—  $—  $—  
Capitalized interest in beginning inventory$196,313  $193,440  $192,356  $184,400  
Interest capitalized as a cost of inventory21,828  21,962  42,607  45,335  
Interest previously capitalized as a cost of
inventory, included in cost of sales
(21,806) (18,107) (38,628) (32,440) 
Capitalized interest in ending inventory$196,335  $197,295  $196,335  $197,295  
 
Interest is capitalized to real estate inventory during development and other qualifying activities. During all periods presented, we capitalized all interest incurred to real estate inventory in accordance with ASC Topic 835, Interest, as our qualified assets exceeded our debt. Interest that is capitalized to real estate inventory is included in cost of home sales or cost of land and lot sales as related units or lots are delivered.  Interest that is expensed as incurred is included in other (expense) income, net.
Real Estate Inventory Impairments and Land Option Abandonments
Real estate inventory impairments and land and lot option abandonments and pre-acquisition charges consisted of the following (in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
Real estate inventory impairments$—  $—  $—  $—  
Land and lot option abandonments and pre-acquisition charges1,380  288  1,729  5,490  
Total$1,380  $288  $1,729  $5,490  
 
Impairments of real estate inventory relate primarily to projects or communities that include homes completed or under construction. Within a project or community, there may be individual homes or parcels of land that are currently held for sale. Impairment charges recognized as a result of adjusting individual held-for-sale assets within a community to estimated fair value less cost to sell are also included in the total impairment charges. No real estate inventory impairments were recorded for the three or six-month periods ended June 30, 2020 or 2019.
In addition to owning land and residential lots, we also have option agreements to purchase land and lots at a future date. We have option deposits and capitalized pre-acquisition costs associated with the optioned land and lots. When the economics of a project no longer support acquisition of the land or lots under option, we may elect not to move forward with the acquisition. Option deposits and capitalized pre-acquisition costs associated with the assets under option may be forfeited at that time. 
Real estate inventory impairments and land option abandonments are recorded in cost of home sales and cost of land and lot sales on the consolidated statements of operations.
v3.20.2
Investments in Unconsolidated Entities
6 Months Ended
Jun. 30, 2020
Equity Method Investments and Joint Ventures [Abstract]  
Investments in Unconsolidated Entities Investments in Unconsolidated Entities
As of June 30, 2020, we held equity investments in six active homebuilding partnerships or limited liability companies and one financial services limited liability company. Our participation in these entities may be as a developer, a builder, or an investment partner. Our ownership percentage varies from 7% to 65%, depending on the investment, with no controlling interest held in any of these investments.
Unconsolidated Financial Information
Aggregated assets, liabilities and operating results of the entities we account for as equity-method investments are provided below. Because our ownership interest in these entities varies, a direct relationship does not exist between the information presented below and the amounts that are reflected on our consolidated balance sheets as our investments in unconsolidated entities or on our consolidated statements of operations as equity in income of unconsolidated entities.
Assets and liabilities of unconsolidated entities (in thousands):
 
June 30, 2020December 31, 2019
Assets
Cash$12,005  $8,537  
Receivables2,498  7,393  
Real estate inventories198,789  116,760  
Other assets604  703  
Total assets$213,896  $133,393  
Liabilities and equity
Accounts payable and other liabilities$42,248  $11,009  
Company’s equity36,040  11,745  
Outside interests’ equity135,608  110,639  
Total liabilities and equity$213,896  $133,393  
 
Results of operations from unconsolidated entities (in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
Net sales$8,726  $6,353  $14,696  $10,464  
Other operating expense(4,400) (3,528) (8,156) (6,280) 
Other income, net(1) (7) (4)  
Net income $4,325  $2,818  $6,536  $4,185  
Company’s equity in income of unconsolidated entities$2,907  $1,946  $4,449  $2,696  
v3.20.2
Variable Interest Entities
6 Months Ended
Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Variable Interest Entities Variable Interest Entities
In the ordinary course of business, we enter into land and lot option agreements in order to procure land and residential lots for future development and the construction of homes. The use of such land and lot option agreements generally allows us to reduce the risks associated with direct land ownership and development, and reduces our capital and financial commitments. Pursuant to these land and lot option agreements, we generally provide a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. These deposits are recorded as land purchase and land option deposits under real estate inventories not owned on the accompanying consolidated balance sheets.
We analyze each of our land and lot option agreements and other similar contracts under the provisions of ASC 810, Consolidation to determine whether the land seller is a VIE and, if so, whether we are the primary beneficiary. Although we do not have legal title to the underlying land, if we are determined to be the primary beneficiary of the VIE, we will consolidate the VIE in our financial statements and reflect its assets as real estate inventory not owned included in our real estate inventories, its liabilities as debt (nonrecourse) held by VIEs in accrued expenses and other liabilities and the net equity of the VIE owners as noncontrolling interests on our consolidated balance sheets. In determining whether we are the primary beneficiary, we consider, among other things, whether we have the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance. Such activities would include, among other things, determining or limiting the scope or purpose of the VIE, selling or transferring property owned or controlled by the VIE, or arranging financing for the VIE.
Creditors of the entities with which we have land and lot option agreements have no recourse against us. The maximum exposure to loss under our land and lot option agreements is generally limited to non-refundable option deposits and any capitalized pre-acquisition costs. In some cases, we have also contracted to complete development work at a fixed cost on behalf of the landowner and budget shortfalls and savings will be borne by us. Additionally, we have entered into land banking arrangements which require us to complete development work even if we terminate the option to procure land or lots.
The following provides a summary of our interests in land and lot option agreements (in thousands):
 June 30, 2020December 31, 2019
DepositsRemaining
Purchase
Price
Consolidated
Inventory
Held by VIEs
DepositsRemaining
Purchase
Price
Consolidated
Inventory
Held by VIEs
Consolidated VIEs$—  $—  $—  $—  $—  $—  
Unconsolidated VIEs39,070  441,528  N/A42,896  440,974  N/A
Other land option agreements42,639  374,674  N/A31,161  358,345  N/A
Total$81,709  $816,202  $—  $74,057  $799,319  $—  
 
Unconsolidated VIEs represent land option agreements that were not consolidated because we were not the primary beneficiary. Other land option agreements were not considered VIEs.
In addition to the deposits presented in the table above, our exposure to loss related to our land and lot option contracts consisted of capitalized pre-acquisition costs of $7.9 million and $6.0 million as of June 30, 2020 and December 31, 2019, respectively. These pre-acquisition costs are included in real estate inventories as land under development on our consolidated balance sheets.
v3.20.2
Goodwill and Other Intangible Assets
6 Months Ended
Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets
As of June 30, 2020 and December 31, 2019, $139.3 million of goodwill is included in goodwill and other intangible assets, net on each of the consolidated balance sheets. The Company’s goodwill balance is included in the TRI Pointe Homes reporting segment in Note 2, Segment Information
We have two intangible assets as of June 30, 2020, comprised of an existing trade name from the acquisition of Maracay in 2006, which has a 20 year useful life, and a TRI Pointe Homes trade name resulting from the acquisition of Weyerhaeuser Real Estate Company in 2014, which has an indefinite useful life.
Goodwill and other intangible assets consisted of the following (in thousands):
June 30, 2020December 31, 2019
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Goodwill$139,304  $—  $139,304  $139,304  $—  $139,304  
Trade names27,979  (7,657) 20,322  27,979  (7,390) 20,589  
Total$167,283  $(7,657) $159,626  $167,283  $(7,390) $159,893  
 
The remaining useful life of our amortizing intangible asset related to the Maracay trade name was 5.7 and 6.2 years as of June 30, 2020 and December 31, 2019, respectively. The net carrying amount related to this intangible asset was $3.0 million and $3.3 million as of June 30, 2020 and December 31, 2019, respectively. Amortization expense related to this intangible asset was $134,000 for each of the three-month periods ended June 30, 2020 and 2019, respectively, and $267,000 for each of the six-month periods ended June 30, 2020 and December 31, 2019, respectively. Amortization of this intangible was charged to sales and marketing expense.  Our $17.3 million indefinite life intangible asset related to the TRI Pointe Homes trade name is not amortizing.  All trade names and goodwill are evaluated for impairment on an annual basis or more frequently if indicators of impairment exist.
Expected amortization of our intangible asset related to Maracay for the remainder of 2020, the next four years and thereafter is (in thousands):
Remainder of 2020$267  
2021534  
2022534  
2023534  
2024534  
Thereafter619  
Total$3,022  
v3.20.2
Other Assets
6 Months Ended
Jun. 30, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Other Assets Other Assets
Other assets consisted of the following (in thousands):
June 30, 2020December 31, 2019
Prepaid expenses$21,273  $24,070  
Refundable fees and other deposits29,785  30,242  
Development rights, held for future use or sale2,063  2,213  
Deferred loan costs—loans payable3,709  4,345  
Operating properties and equipment, net58,155  57,803  
Lease right-of-use assets49,506  50,947  
Other3,256  3,805  
Total$167,747  $173,425  
v3.20.2
Accrued Expenses and Other Liabilities
6 Months Ended
Jun. 30, 2020
Payables and Accruals [Abstract]  
Accrued Expenses and Other Liabilities Accrued Expenses and Other Liabilities
Accrued expenses and other liabilities consisted of the following (in thousands):
June 30, 2020December 31, 2019
Accrued payroll and related costs$25,015  $42,798  
Warranty reserves (Note 13)
79,190  76,607  
Estimated cost for completion of real estate inventories78,601  90,899  
Customer deposits29,925  20,390  
Income tax liability to Weyerhaeuser346  346  
Accrued income taxes payable18,605  1,530  
Liability for uncertain tax positions (Note 15)486  486  
Accrued interest6,886  11,952  
Other tax liability7,665  8,448  
Lease liabilities54,395  56,125  
Other13,704  12,462  
Total$314,818  $322,043  
v3.20.2
Senior Notes and Loans Payable
6 Months Ended
Jun. 30, 2020
Debt Disclosure [Abstract]  
Senior Notes and Loans Payable Senior Notes and Loans Payable
Senior Notes
The Company’s outstanding senior notes (together, the “Senior Notes”) consisted of the following (in thousands):
June 30, 2020December 31, 2019
4.875% Senior Notes due July 1, 2021
$83,734  $300,000  
5.875% Senior Notes due June 15, 2024
450,000  450,000  
5.250% Senior Notes due June 1, 2027
300,000  300,000  
5.700% Senior Notes due June 15, 2028
350,000  —  
Discount and deferred loan costs(17,545) (16,015) 
Total$1,166,189  $1,033,985  
 
In June 2020, TRI Pointe Group issued $350 million aggregate principal amount of 5.700% Senior Notes due 2028 (the “2028 Notes”) at 100.00% of their aggregate principal amount. Net proceeds of this issuance were $345.2 million, after debt issuance costs and discounts. The 2028 Notes mature on June 15, 2028 and interest is paid semiannually in arrears on June 15 and December 15.
In June 2017, TRI Pointe Group issued $300 million aggregate principal amount of 5.250% Senior Notes due 2027 (the “2027 Notes”) at 100.00% of their aggregate principal amount. Net proceeds of this issuance were $296.3 million, after debt issuance costs and discounts. The 2027 Notes mature on June 1, 2027 and interest is paid semiannually in arrears on June 1 and December 1.
In May 2016, TRI Pointe Group issued $300 million aggregate principal amount of 4.875% Senior Notes due 2021 (the “2021 Notes”) at 99.44% of their aggregate principal amount. Net proceeds of this issuance were $293.9 million, after debt issuance costs and discounts. The 2021 Notes mature on July 1, 2021 and interest is paid semiannually in arrears on January 1 and July 1. On June 3, 2020, the Company commenced a cash tender offer for any and all of the outstanding 2021 Notes at a price of $1,025 per $1,000 principal amount of 2021 Notes tendered before the expiration of the tender offer. The principal amount of 2021 Notes tendered was $216.3 million, or 72% of the outstanding principal amount, after which $83.7 million principal amount of 2021 Notes remained outstanding as of June 30, 2020. The remaining outstanding principal amount of $83.7 million was fully paid in July 2020 in connection with the redemption of the remaining 2021 Notes.
TRI Pointe Group and its wholly owned subsidiary TRI Pointe Homes, Inc. (“TRI Pointe Homes”) are co-issuers of the $450 million aggregate principal amount 5.875% Senior Notes due 2024 (the “2024 Notes”). The 2024 Notes were issued at 98.15% of their aggregate principal amount. The net proceeds from the offering of the 2024 Notes was $429.0 million, after debt issuance costs and discounts. The 2024 Notes mature on June 15, 2024, with interest payable semiannually in arrears on June 15 and December 15.
As of June 30, 2020, there were $13.6 million of capitalized debt financing costs, included in senior notes, net on our consolidated balance sheet, related to the Senior Notes that will amortize over the lives of the Senior Notes. Accrued interest related to the Senior Notes was $5.6 million and $9.8 million as of June 30, 2020 and December 31, 2019, respectively.
Loans Payable
The Company’s outstanding loans payable consisted of the following (in thousands):
June 30, 2020December 31, 2019
Term loan facility$250,000  $250,000  
Total$250,000  $250,000  

On March 29, 2019, the Company entered into a Second Amended and Restated Credit Agreement (the “Credit Agreement”), which amended and restated the Company’s Amended and Restated Credit Agreement, dated as of July 7, 2015. The Credit Facility (as defined below), which matures on March 29, 2023, consists of a $600 million revolving credit facility (the “Revolving Facility”) and a $250 million term loan facility (the “Term Facility” and together with the Revolving Facility, the “Credit Facility”). The Term Facility includes a 90-day delayed draw provision that allowed the Company to draw the full
$250 million from the Term Facility in June 2019 in connection with the maturity of the 4.375% Senior Notes that matured on June 15, 2019. The Company may increase the Credit Facility to not more than $1 billion in the aggregate, at its request, upon satisfaction of specified conditions. The Revolving Facility contains a sublimit of $75 million for letters of credit. The Company may borrow under the Revolving Facility in the ordinary course of business to repay senior notes and fund its operations, including its land acquisition, land development and homebuilding activities. Borrowings under the Revolving Facility will be governed by, among other things, a borrowing base. Interest rates on borrowings under the Revolving Facility will be based on either a daily Eurocurrency base rate or a Eurocurrency rate, in either case, plus a spread ranging from 1.25% to 2.00%, depending on the Company’s leverage ratio. Interest rates on borrowings under the Term Facility will be based on either a daily Eurocurrency base rate or a Eurocurrency rate, in either case, plus a spread ranging from 1.10% to 1.85%, depending on the Company’s leverage ratio.
As of June 30, 2020, we had no outstanding debt under the Revolving Facility and there was $559.4 million of availability after considering the borrowing base provisions and outstanding letters of credit. As of June 30, 2020, we had $250 million outstanding debt under the Term Facility with an interest rate of 1.52%. As of June 30, 2020, there were $3.7 million of capitalized debt financing costs, included in other assets on our consolidated balance sheet, related to the Credit Facility that will amortize over the remaining term of the Credit Facility.  Accrued interest, including loan commitment fees, related to the Credit Facility was $488,000 and $1.2 million as of June 30, 2020 and December 31, 2019, respectively.
At June 30, 2020 and December 31, 2019, we had outstanding letters of credit of $40.6 million and $32.6 million, respectively.  These letters of credit were issued to secure various financial obligations.  We believe it is not probable that any outstanding letters of credit will be drawn upon.
Interest Incurred
During the three months ended June 30, 2020 and 2019, the Company incurred interest of $21.8 million and $22.0 million, respectively, related to all debt during the period.  Included in interest incurred are amortization of deferred financing and Senior Note discount costs of $1.2 million and $1.9 million for the three months ended June 30, 2020 and 2019, respectively. During the six months ended June 30, 2020 and 2019, the Company incurred interest of $42.6 million and $45.3 million, respectively, related to all debt during the period.  Included in interest incurred was amortization of deferred financing and Senior Note discount costs of $2.4 million and $3.8 million for the six months ended June 30, 2020 and 2019, respectively. Accrued interest related to all outstanding debt at June 30, 2020 and December 31, 2019 was $6.9 million and $12.0 million, respectively. 
Covenant Requirements
The Senior Notes contain covenants that restrict our ability to, among other things, create liens or other encumbrances, enter into sale and leaseback transactions, or merge or sell all or substantially all of our assets. These limitations are subject to a number of qualifications and exceptions.
Under the Credit Facility, the Company is required to comply with certain financial covenants, including those relating to consolidated tangible net worth, leverage, liquidity or interest coverage, and a spec unit inventory test. The Credit Facility also requires that at least 97.0% of consolidated tangible net worth must be attributable to the Company and its guarantor subsidiaries, subject to certain grace periods.
The Company was in compliance with all applicable financial covenants as of June 30, 2020 and December 31, 2019.
v3.20.2
Fair Value Disclosures
6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
Fair Value Disclosures Fair Value Disclosures
Fair Value Measurements
ASC Topic 820, Fair Value Measurements and Disclosures, defines “fair value” as the price that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at measurement date and requires assets and liabilities carried at fair value to be classified and disclosed in the following three categories:
Level 1—Quoted prices for identical instruments in active markets
Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are inactive; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets at measurement date
Level 3—Valuations derived from techniques where one or more significant inputs or significant value drivers are unobservable in active markets at measurement date
Fair Value of Financial Instruments
A summary of assets and liabilities at June 30, 2020 and December 31, 2019, related to our financial instruments, measured at fair value on a recurring basis, is set forth below (in thousands):
June 30, 2020December 31, 2019
HierarchyBook ValueFair ValueBook ValueFair Value
Senior Notes (1)
Level 2$1,179,783  $1,195,826  $1,045,072  $1,104,750  
Term loan facility (2)
Level 2$250,000  $250,000  $250,000  $250,000  
 __________
(1)The book value of the Senior Notes is net of discounts, excluding deferred loan costs of $13.6 million and $11.1 million as of June 30, 2020 and December 31, 2019, respectively. The estimated fair value of the Senior Notes at June 30, 2020 and December 31, 2019 is based on quoted market prices.
(2)The estimated fair value of the Term Loan Facility as of June 30, 2020 approximated book value due to the variable interest rate terms of this loan.

At June 30, 2020 and December 31, 2019, the carrying value of cash and cash equivalents and receivables approximated fair value due to their short-term nature and variable interest rate terms.
Fair Value of Nonfinancial Assets
Nonfinancial assets include items such as real estate inventories and long-lived assets that are measured at fair value on a nonrecurring basis when events and circumstances indicating the carrying value is not recoverable. No carrying values were adjusted to fair value for the six months ended June 30, 2020 or the year ended December 31, 2019.
v3.20.2
Commitments and Contingencies
6 Months Ended
Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Legal Matters
Lawsuits, claims and proceedings have been and may be instituted or asserted against us in the normal course of business, including actions brought on behalf of various classes of claimants. We are also subject to local, state and federal laws and regulations related to land development activities, house construction standards, sales practices, employment practices, environmental protection and financial services. As a result, we are subject to periodic examinations or inquiry by agencies administering these laws and regulations.
We record a reserve for potential legal claims and regulatory matters when they are probable of occurring and a potential loss is reasonably estimable. We accrue for these matters based on facts and circumstances specific to each matter and revise these estimates when necessary.  In view of the inherent difficulty of predicting outcomes of legal claims and related contingencies, we generally cannot predict their ultimate resolution, related timing or eventual loss. Accordingly, it is possible that the ultimate outcome of any matter, if in excess of a related accrual or if no accrual was made, could be material to our financial statements.  For matters as to which the Company believes a loss is probable and reasonably estimable, we had $319,000 and $419,000 of legal reserves as of June 30, 2020 and December 31, 2019, respectively.
Warranty
Warranty reserves are accrued as home deliveries occur. Our warranty reserves on homes delivered will vary based on product type and geographic area and also depending on state and local laws. The warranty reserve is included in accrued expenses and other liabilities on our consolidated balance sheets and represents expected future costs based on our historical experience over previous years. Estimated warranty costs are charged to cost of home sales in the period in which the related home sales revenue is recognized.
We maintain general liability insurance designed to protect us against a portion of our risk of loss from warranty and construction defect-related claims. We also generally require our subcontractors and design professionals to indemnify us for liabilities arising from their work, subject to various limitations. However, such indemnity is significantly limited with respect to certain subcontractors that are added to our general liability insurance policy. 
Our warranty reserve and related estimated insurance recoveries are based on actuarial analysis that uses our historical claim and expense data, as well as industry data to estimate these overall costs and related recoveries. Key assumptions used in developing these estimates include claim frequencies, severities and resolution patterns, which can occur over an extended period of time. These estimates are subject to variability due to the length of time between the delivery of a home to a homebuyer and when a warranty or construction defect claim is made, and the ultimate resolution of such claim; uncertainties regarding such claims relative to our markets and the types of product we build; and legal or regulatory actions and/or interpretations, among other factors. Due to the degree of judgment involved and the potential for variability in these underlying assumptions, our actual future costs could differ from those estimated. There can be no assurance that the terms and limitations of the limited warranty will be effective against claims made by homebuyers, that we will be able to renew our insurance coverage or renew it at reasonable rates, that we will not be liable for damages, cost of repairs, and/or the expense of litigation surrounding possible construction defects, soil subsidence or building related claims or that claims will not arise out of uninsurable events or circumstances not covered by insurance and not subject to effective indemnification agreements with certain subcontractors.
We also record expected recoveries from insurance carriers based on actual insurance claims made and actuarially determined amounts that depend on various factors, including the above-described reserve estimates, our insurance policy coverage limits for the applicable policy years and historical recovery rates. Because of the inherent uncertainty and variability in these assumptions, our actual insurance recoveries could differ significantly from amounts currently estimated. Outstanding warranty insurance receivables were $39.7 million and $40.0 million as of June 30, 2020 and December 31, 2019, respectively. Warranty insurance receivables are recorded in receivables on the accompanying consolidated balance sheets.
Warranty reserve activity consisted of the following (in thousands):
 
 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
Warranty reserves, beginning of period$76,487  $70,947  $76,607  $71,836  
Warranty reserves accrued6,988  6,385  12,144  10,655  
Warranty expenditures(4,285) (5,861) (9,561) (11,020) 
Warranty reserves, end of period$79,190  $71,471  $79,190  $71,471  
 
Performance Bonds
We obtain surety bonds in the normal course of business to ensure completion of certain infrastructure improvements of our projects. The beneficiaries of the bonds are various municipalities. As of June 30, 2020 and December 31, 2019, the Company had outstanding surety bonds totaling $614.2 million and $611.6 million, respectively. As of June 30, 2020 and December 31, 2019, our estimated cost to complete obligations related to these surety bonds was $390.8 million and $382.3 million, respectively.
Lease Obligations
Under ASC 842 we recognize a right-of-use lease asset and a lease liability for contracts deemed to contain a lease at the inception of the contract. Our lease population is fully comprised of operating leases, which are now recorded at the net present value of future lease obligations existing at each balance sheet date. At the inception of a lease, or if a lease is subsequently modified, we determine whether the lease is an operating or financing lease. Key estimates involved with ASC 842 include the discount rate used to measure our future lease obligations and the lease term, where considerations include renewal options and intent to renew. Lease right-of-use assets are included in other assets and lease liabilities are included in accrued expenses and other liabilities on our consolidated balance sheet.
Operating Leases
We lease certain property and equipment under non-cancelable operating leases. Office leases are for terms of up to ten years and generally provide renewal options. In most cases, we expect that, in the normal course of business, leases that expire will be renewed or replaced by other leases. Equipment leases are typically for terms of three to four years.
Ground Leases
In 1987, we obtained two 55-year ground leases of commercial property that provided for three renewal options of ten years each and one 45-year renewal option.  We exercised the three ten-year extensions on one of these ground leases to extend
the lease through 2071.  The commercial buildings on these properties have been sold and the ground leases have been sublet to the buyers.
For one of these leases, we are responsible for making lease payments to the landowner, and we collect sublease payments from the buyers of the buildings. This ground lease has been subleased through 2041 to the buyers of the commercial buildings. For the second lease, the buyers of the buildings are responsible for making lease payments directly to the landowner, however, we have guaranteed the performance of the buyers/lessees. See below for additional information on leases (dollars in thousands):
Three Months Ended June 30, 2020Three Months Ended June 30, 2019Six Months Ended June 30, 2020Six Months Ended June 30, 2019
Lease Cost
Operating lease cost (included in SG&A expense)$2,456  $2,166  $4,794  $4,210  
Ground lease cost (included in other operations expense)624  627  1,248  1,217  
Sublease income, operating leases—  —  —  —  
Sublease income, ground leases (included in other operations revenue)(648) (637) (1,266) (1,235) 
Net lease cost$2,432  $2,156  $4,776  $4,192  
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating lease cash flows (included in operating cash flows)$2,220  $1,641  $4,234  $3,250  
Ground lease cash flows (included in operating cash flows)$624  $609  $1,248  $1,217  
Right-of-use assets obtained in exchange for new operating lease liabilities$1,135  $346  $1,155  $2,053  
June 30, 2020December 31, 2019
Weighted-average discount rate:
Operating leases5.9 %5.9 %
Ground leases10.2 %10.2 %
Weighted-average remaining lease term (in years):
Operating leases5.86.1
Ground leases47.548.1
The future minimum lease payments under our operating leases are as follows (in thousands):
Property, Equipment and Other Leases
Ground Leases (1)
Remaining in 2020$4,460  $1,535  
20217,855  3,070  
20225,610  3,070  
20234,503  3,070  
20242,779  3,070  
Thereafter6,410  83,515  
Total lease payments$31,617  $97,330  
Less: Interest4,762  69,790  
Present value of operating lease liabilities$26,855  $27,540  
 __________
(1)  Ground leases are fully subleased through 2041, representing $65.5 million of the $97.3 million future ground lease obligations.
v3.20.2
Stock-Based Compensation
6 Months Ended
Jun. 30, 2020
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
2013 Long-Term Incentive Plan
The Company’s stock compensation plan, the 2013 Long-Term Incentive Plan (the “2013 Incentive Plan”), was adopted by TRI Pointe in January 2013 and amended, with the approval of our stockholders, in 2014 and 2015. In addition, our board of directors amended the 2013 Incentive Plan in 2014 to prohibit repricing (other than in connection with any equity restructuring or any change in capitalization) of outstanding options or stock appreciation rights without stockholder approval. The 2013 Incentive Plan provides for the grant of equity-based awards, including options to purchase shares of common stock, stock appreciation rights, bonus stock, restricted stock, restricted stock units (“RSUs”) and performance awards. The 2013 Incentive Plan will automatically expire on the tenth anniversary of its effective date. Our board of directors may terminate or amend the 2013 Incentive Plan at any time, subject to any requirement of stockholder approval required by applicable law, rule or regulation.
As amended, the number of shares of our common stock that may be issued under the 2013 Incentive Plan is 11,727,833 shares. To the extent that shares of our common stock subject to an outstanding option, stock appreciation right, stock award or performance award granted under the 2013 Incentive Plan are not issued or delivered by reason of the expiration, termination, cancellation or forfeiture of such award or the settlement of such award in cash, then such shares of our common stock generally shall again be available under the 2013 Incentive Plan. As of June 30, 2020, there were 5,468,092 shares available for future grant under the 2013 Incentive Plan.
The following table presents compensation expense recognized related to all stock-based awards (in thousands):
 
 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
Total stock-based compensation$3,786  $3,351  $7,411  $6,786  
 
Stock-based compensation is charged to general and administrative expense on the accompanying consolidated statements of operations.  As of June 30, 2020, total unrecognized stock-based compensation related to all stock-based awards was $24.7 million and the weighted average term over which the expense was expected to be recognized was 2.1 years.
Summary of Stock Option Activity
The following table presents a summary of stock option awards for the six months ended June 30, 2020:
OptionsWeighted
Average
Exercise
Price
Per Share
Weighted
Average
Remaining
Contractual
Life
Aggregate
Intrinsic
Value
(in thousands)
Options outstanding at December 31, 2019891,343  $15.03  3.4$994  
Granted—  —  —  —  
Exercised(78,506) $11.94  —  —  
Forfeited(8,257) $14.37  —  —  
Options outstanding at June 30, 2020804,580  $15.34  3$247  
Options exercisable at June 30, 2020804,580  $15.34  3$247  
 
The intrinsic value of each stock option award outstanding or exercisable is the difference between the fair market value of the Company’s common stock at the end of the period and the exercise price of each stock option award to the extent it is considered “in-the-money”. A stock option award is considered to be “in-the-money” if the fair market value of the Company’s stock is greater than the exercise price of the stock option award. The aggregate intrinsic value of options outstanding and options exercisable represents the value that would have been received by the holders of stock option awards had they exercised their stock option award on the last trading day of the period and sold the underlying shares at the closing price on that day.

Summary of Restricted Stock Unit Activity
The following table presents a summary of RSUs for the six months ended June 30, 2020:
Restricted
Stock
Units
Weighted
Average
Grant Date
Fair Value
Per Share
Aggregate
Intrinsic
Value
(in thousands)
Nonvested RSUs at December 31, 20193,384,351  $12.39  $52,694  
Granted1,458,633  $18.45  —  
Vested(990,929) $13.36  —  
Forfeited(744,904) $10.81  —  
Nonvested RSUs at June 30, 20203,107,151  $15.30  $43,997  

RSUs that vested, as reflected in the table above, during the six months ended June 30, 2020 include previously granted time-based RSUs. RSUs that were forfeited, as reflected in the table above, during the six months ended June 30, 2020 include performance-based RSUs and time-based RSUs that were forfeited for no consideration.

On April 27, 2020, the Company granted an aggregate of 47,080 time-based RSUs to the non-employee members of its board of directors. The RSUs granted to non-employee directors vest in their entirety on the day immediately prior to the Company’s 2021 annual meeting of stockholders. The fair value of each RSU granted on April 27, 2020 was measured using a price of $10.62 per share, which was the closing stock price on the date of grant. Each award will be expensed on a straight-line basis over the vesting period.

On March 9, 2020 and February 20, 2020, the Company granted an aggregate of 17,692 and 639,395, respectively, time-based RSUs to certain employees and officers. The RSUs granted vest in equal installment annually on the anniversary of the grant date over a three-year period. The fair value of each RSU granted on March 9, 2020 and February 20, 2020 was measured using a price of $14.13 and $18.39 per share, respectively, which were the closing stock prices on the dates of grant. Each award will be expensed on a straight-line basis over the vesting period.

On February 20, 2020, the Company granted an aggregate of 547,166 performance-based RSUs to the Company’s Chief Executive Officer, Chief Operating Officer and President, Chief Financial Officer, General Counsel, Chief Marketing Officer and Chief Human Resources Officer. These performance-based RSUs are allocated to two separate performance metrics, as follows: (i) 50% to homebuilding revenue, and (ii) 50% to pre-tax earnings. The vesting, if at all, of these performance-based RSUs may range from 0% to 100% and will be based on the Company’s percentage attainment of specified threshold, target and maximum performance goals. Any award earned based on performance achieved may be increased or decreased by 25% based on the Company’s total stockholder return (“TSR'”) relative to its peer-group homebuilders. The performance period for these performance-based RSUs is January 1, 2020 to December 31, 2022. The fair value of these performance-based RSUs was determined to be $19.36 per share based on a Monte Carlo simulation. Each award will be expensed over the requisite service period.

On February 20, 2020, the Company granted an aggregate of 207,300 performance-based RSUs to the Company’s division presidents. These performance-based RSUs are allocated to two separate performance metrics, as follows: (i) 50% to homebuilding revenue of the applicable Company division, and (ii) 50% to pre-tax earnings of the applicable Company division. The vesting, if at all, of these performance-based RSUs may range from 0% to 100% and will be based on the applicable Company division’s percentage attainment of specified threshold, target and maximum performance goals. The performance period for these performance-based RSUs is January 1, 2020 to December 31, 2022. The fair value of these performance-based RSUs was measured using a price of $18.39, which was the closing stock price on the date of grant. Each award will be expensed over the requisite service period.

On May 6, 2019, the Company granted an aggregate of 61,488 time-based RSUs to the non-employee members of its board of directors and 1,098 time-based RSUs to certain employees. The RSUs granted to non-employee directors vest in their entirety on the day immediately prior to the Company’s 2020 annual meeting of stockholders and the RSUs granted to employees vest in equal installments annually on the anniversary of the grant date over a three-year period. The fair value of each RSU granted on May 6, 2019 was measured using a price of $13.66 per share which was the closing stock price on the date of grant. Each award will be expensed on a straight-line basis over the vesting period.
On March 11, 2019 and February 28, 2019, the Company granted an aggregate of 3,025 and 990,723, respectively, of time-based RSUs to certain employees and officers. The RSUs granted vest in equal installments annually on the anniversary of the grant date over a three-year period.  The fair value of each RSU granted on March 11, 2019 and February 28, 2019 was measured using a price of $13.22 and $12.60 per share, respectively, which were the closing stock prices on the dates of grant. Each award will be expensed on a straight-line basis over the vesting period.
On February 28, 2019, the Company granted 247,619, 238,095 and 114,285 performance-based RSUs to the Company’s Chief Executive Officer, President, and Chief Financial Officer, respectively. These performance-based RSUs are allocated to two separate performance metrics, as follows: (i) 30% to TSR, with vesting based on the Company’s TSR relative to its peer-group homebuilders; and (ii) 70% to earnings per share. The vesting, if at all, of these performance-based RSUs may range from 0% to 100% and will be based on the Company’s percentage attainment of specified threshold, target and maximum performance goals. The performance period for these performance-based RSUs is January 1, 2019 to December 31, 2021. The fair value of the performance-based RSUs related to the TSR metric was determined to be $8.16 per share based on a Monte Carlo simulation. The fair value of the performance-based RSUs related to the earnings per share goal was measured using a price of $12.60 per share, which was the closing stock price on the date of grant. Each award will be expensed over the requisite service period.
As RSUs vest for employees, a portion of the shares awarded is generally withheld to cover employee tax withholdings. As a result, the number of RSUs vested and the number of shares of TRI Pointe common stock issued will differ.
v3.20.2
Income Taxes
6 Months Ended
Jun. 30, 2020
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
We account for income taxes in accordance with ASC Topic 740, Income Taxes (“ASC 740”), which requires an asset and liability approach for measuring deferred taxes based on temporary differences between the financial statements and tax bases of assets and liabilities using enacted tax rates for the years in which taxes are expected to be paid or recovered.  Each quarter we assess our deferred tax asset to determine whether all or any portion of the asset is more likely than not unrealizable under ASC 740.  We are required to establish a valuation allowance for any portion of the asset we conclude is more likely than not to be unrealizable.  Our assessment considers, among other things, the nature, frequency and severity of our current and cumulative losses, forecasts of our future taxable income, the duration of statutory carryforward periods and tax planning alternatives.
We had net deferred tax assets of $39.7 million and $49.9 million as of June 30, 2020 and December 31, 2019.  We had a valuation allowance related to those net deferred tax assets of $3.5 million as of June 30, 2020 and December 31, 2019.  The Company will continue to evaluate both positive and negative evidence in determining the need for a valuation allowance against its deferred tax assets. Changes in positive and negative evidence, including differences between the Company’s future operating results and the estimates utilized in the determination of the valuation allowance, could result in changes in the Company’s estimate of the valuation allowance against its deferred tax assets. The accounting for deferred taxes is based upon estimates of future results. Differences between the anticipated and actual outcomes of these future results could have a material impact on the Company’s consolidated results of operations or financial position. Also, changes in existing federal and state tax laws and tax rates could affect future tax results and the valuation allowance against the Company’s deferred tax assets.
TRI Pointe has certain liabilities to Weyerhaeuser Company (“Weyerhaeuser”) related to a tax sharing agreement.  As of both June 30, 2020 and December 31, 2019, we had an income tax liability to Weyerhaeuser of $346,000. The income tax liability to Weyerhaeuser is recorded in accrued expenses and other liabilities on the accompanying consolidated balance sheets. During the six months ended June 30, 2019, we amended our existing tax sharing agreement with Weyerhaeuser, pursuant to which the parties agreed, among other things, that we had no further obligation to remit payment to Weyerhaeuser in connection with any potential utilization of certain deductions or losses associated with certain Weyerhaeuser entities with respect to federal and state taxes. As a result of the amendment, during the three months ended March 31, 2019, we decreased our income tax liability to Weyerhaeuser and recorded other income of $6.0 million, which is included in other income, net in the accompanying consolidated statements of operations.
Our provision for income taxes totaled $18.1 million and $9.1 million for the three months ended June 30, 2020 and 2019, respectively and $28.0 million and $9.2 million for the six months ended June 30, 2020 and 2019, respectively. The Company classifies any interest and penalties related to income taxes assessed by jurisdiction as part of income tax expense.  The Company had $486,000 of uncertain tax positions recorded as of June 30, 2020 and December 31, 2019.  The Company has not been assessed interest or penalties by any major tax jurisdictions related to prior years.
v3.20.2
Related Party Transactions
6 Months Ended
Jun. 30, 2020
Related Party Transactions [Abstract]  
Related Party Transactions Related Party TransactionsWe had no related party transactions for the six months ended June 30, 2020 and 2019.
v3.20.2
Supplemental Disclosure to Consolidated Statements of Cash Flows
6 Months Ended
Jun. 30, 2020
Supplemental Cash Flow Elements [Abstract]  
Supplemental Disclosure to Consolidated Statements of Cash Flows Supplemental Disclosure to Consolidated Statements of Cash Flows
The following are supplemental disclosures to the consolidated statements of cash flows (in thousands):
Six Months Ended June 30,
20202019
Supplemental disclosure of cash flow information:
Interest paid (capitalized), net$1,191  $(3,104) 
Income taxes paid (refunded), net$(12) $10,601  
Supplemental disclosures of noncash activities:
Amortization of senior note discount capitalized to real estate inventory$579  $981  
Amortization of deferred loan costs capitalized to real estate inventory$1,844  $2,826  
v3.20.2
Supplemental Guarantor Information
6 Months Ended
Jun. 30, 2020
Condensed Financial Information Disclosure [Abstract]  
Supplemental Guarantor Information Supplemental Guarantor Information
2021 Notes, 2027 Notes and 2028 Notes
On May 26, 2016, TRI Pointe Group issued the 2021 Notes, on June 5, 2017, TRI Pointe Group issued the 2027 Notes and on June 10, 2020, TRI Pointe Group issued the 2028 Notes. All of TRI Pointe Group’s 100% owned subsidiaries that are guarantors (each a “Guarantor” and, collectively, the “Guarantors”) of the Credit Facility, including TRI Pointe Homes, are party to supplemental indentures pursuant to which they jointly and severally guarantee TRI Pointe Group’s obligations with respect to these Notes. Each Guarantor of the 2021 Notes, the 2027 Notes and the 2028 Notes is 100% owned by TRI Pointe Group, and all guarantees are full and unconditional, subject to customary exceptions pursuant to the indentures governing the 2021 Notes, the 2027 Notes and the 2028 Notes, as described in the following paragraph. All of our non-Guarantor subsidiaries have nominal assets and operations and are considered minor, as defined in Rule 3-10(h) of Regulation S-X. In addition, TRI Pointe Group has no independent assets or operations, as defined in Rule 3-10(h) of Regulation S-X. There are no significant restrictions upon the ability of TRI Pointe Group or any Guarantor to obtain funds from any of their respective wholly owned subsidiaries by dividend or loan. None of the assets of our subsidiaries represent restricted net assets pursuant to Rule 4-08(e)(3) of Regulation S-X.
A Guarantor of the 2021 Notes, the 2027 Notes and the 2028 Notes shall be released from all of its obligations under its guarantee if (i) all of the assets of the Guarantor have been sold; (ii) all of the equity interests of the Guarantor held by TRI Pointe Group or a subsidiary thereof have been sold; (iii) the Guarantor merges with and into TRI Pointe Group or another Guarantor, with TRI Pointe Group or such other Guarantor surviving the merger; (iv) the Guarantor is designated “unrestricted” for covenant purposes; (v) the Guarantor ceases to guarantee any indebtedness of TRI Pointe Group or any other Guarantor which gave rise to such Guarantor guaranteeing the 2021 Notes, the 2027 Notes or the 2028 Notes; (vi) TRI Pointe Group exercises its legal defeasance or covenant defeasance options; or (vii) all obligations under the applicable supplemental indenture are discharged.
2024 Notes
TRI Pointe Group and TRI Pointe Homes are co-issuers of the 2024 Notes. All of the Guarantors (other than TRI Pointe Homes) have entered into supplemental indentures pursuant to which they jointly and severally guarantee the obligations of TRI Pointe Group and TRI Pointe Homes with respect to the 2024 Notes. Each Guarantor of the 2024 Notes is 100% owned by TRI Pointe Group and TRI Pointe Homes, and all guarantees are full and unconditional, subject to customary exceptions pursuant to the indentures governing the 2024 Notes, as described below.
A Guarantor of the 2024 Notes shall be released from all of its obligations under its guarantee if (i) all of the assets of the Guarantor have been sold; (ii) all of the equity interests of the Guarantor held by TRI Pointe or a subsidiary thereof have been sold; (iii) the Guarantor merges with and into TRI Pointe or another Guarantor, with TRI Pointe or such other Guarantor surviving the merger; (iv) the Guarantor is designated “unrestricted” for covenant purposes; (v) the Guarantor ceases to guarantee any indebtedness of TRI Pointe or any other Guarantor which gave rise to such Guarantor guaranteeing the 2024 Notes; (vi) TRI Pointe exercises its legal defeasance or covenant defeasance options; or (vii) all obligations under the applicable indenture are discharged.
Presented below are the condensed consolidating balance sheets at June 30, 2020 and December 31, 2019, condensed consolidating statements of operations for the three and six months ended June 30, 2020 and 2019 and condensed consolidating statement of cash flows for the six months ended June 30, 2020 and 2019.  Because TRI Pointe’s non-Guarantor subsidiaries are considered minor, as defined in Rule 3-10(h) of Regulation S-X, the non-Guarantor subsidiaries’ information is not
separately presented in the tables below, but is included with the Guarantors. Additionally, because TRI Pointe Group has no independent assets or operations, as defined in Rule 3-10(h) of Regulation S-X, the condensed consolidated financial information of TRI Pointe Group and TRI Pointe Homes, the co-issuers of the 2024 Notes, is presented together in the column titled “Issuer”.
Condensed Consolidating Balance Sheet (in thousands):
 
June 30, 2020
IssuerGuarantor
Subsidiaries
Consolidating
Adjustments
Consolidated
TRI Pointe
Group, Inc.
Assets
Cash and cash equivalents$393,481  $81,064  $—  $474,545  
Receivables27,555  60,025  —  87,580  
Intercompany receivables421,075  —  (421,075) —  
Real estate inventories699,708  2,312,914  —  3,012,622  
Investments in unconsolidated entities—  36,040  —  36,040  
Goodwill and other intangible assets, net156,604  3,022  —  159,626  
Investments in subsidiaries1,968,697  —  (1,968,697) —  
Deferred tax assets, net9,021  30,723  —  39,744  
Other assets5,192  162,555  —  167,747  
Total assets$3,681,333  $2,686,343  $(2,389,772) $3,977,904  
Liabilities
Accounts payable$16,911  $54,175  $—  $71,086  
Intercompany payables—  421,075  (421,075) —  
Accrued expenses and other liabilities72,434  242,384  —  314,818  
Loans payable250,000  —  —  250,000  
Senior notes1,166,189  —  —  1,166,189  
Total liabilities1,505,534  717,634  (421,075) 1,802,093  
Equity
Total stockholders’ equity2,175,799  1,968,697  (1,968,697) 2,175,799  
Noncontrolling interests—  12  —  12  
Total equity2,175,799  1,968,709  (1,968,697) 2,175,811  
Total liabilities and equity$3,681,333  $2,686,343  $(2,389,772) $3,977,904  
Condensed Consolidating Balance Sheet (in thousands):
 
 December 31, 2019
IssuerGuarantor
Subsidiaries
Consolidating
Adjustments
Consolidated
TRI Pointe
Group, Inc.
Assets    
Cash and cash equivalents$186,200  $142,811  $—  $329,011  
Receivables26,016  43,260  —  69,276  
Intercompany receivables576,846  —  (576,846) —  
Real estate inventories737,662  2,327,774  —  3,065,436  
Investments in unconsolidated entities—  11,745  —  11,745  
Goodwill and other intangible assets, net156,604  3,289  —  159,893  
Investments in subsidiaries1,870,885  —  (1,870,885) —  
Deferred tax assets, net9,020  40,884  —  49,904  
Other assets14,676  158,749  —  173,425  
Total assets$3,577,909  $2,728,512  $(2,447,731) $3,858,690  
Liabilities    
Accounts payable$14,915  $51,205  $—  $66,120  
Intercompany payables—  576,846  (576,846) —  
Accrued expenses and other liabilities92,479  229,564  —  322,043  
Loans payable250,000  —  —  250,000  
Senior notes1,033,985  —  —  1,033,985  
Total liabilities1,391,379  857,615  (576,846) 1,672,148  
Equity    
Total stockholders’ equity2,186,530  1,870,885  (1,870,885) 2,186,530  
Noncontrolling interests—  12  —  12  
Total equity2,186,530  1,870,897  (1,870,885) 2,186,542  
Total liabilities and equity$3,577,909  $2,728,512  $(2,447,731) $3,858,690  
Condensed Consolidating Statement of Operations (in thousands):
 
 Three Months Ended June 30, 2020
IssuerGuarantor
Subsidiaries
Consolidating
Adjustments
Consolidated
TRI Pointe
Group, Inc.
Homebuilding:    
Home sales revenue$206,473  $560,469  $—  $766,942  
Land and lot sales revenue—  220  —  220  
Other operations revenue—  648  —  648  
Total revenues206,473  561,337  —  767,810  
Cost of home sales172,086  429,348  —  601,434  
Cost of land and lot sales—  374  —  374  
Other operations expense—  624  —  624  
Sales and marketing10,667  34,527  —  45,194  
General and administrative19,875  17,679  —  37,554  
Restructuring charges1,111  4,438  —  5,549  
Homebuilding income from operations2,734  74,347  —  77,081  
Equity in loss of unconsolidated entities—  (25) —  (25) 
Other loss, net(6,320) (8) —  (6,328) 
Homebuilding (loss) income before income taxes(3,586) 74,314  —  70,728  
Financial Services:    
Revenues—  2,296  —  2,296  
Expenses—  1,285  —  1,285  
Equity in income of unconsolidated entities—  2,932  —  2,932  
Financial services income before income taxes—  3,943  —  3,943  
(Loss) income before income taxes(3,586) 78,257  —  74,671  
Equity of net income of subsidiaries60,114  —  (60,114) —  
Provision for income taxes—  (18,143) —  (18,143) 
Net income$56,528  $60,114  $(60,114) $56,528  
Condensed Consolidating Statement of Operations (in thousands):
 
 Three Months Ended June 30, 2019
IssuerGuarantor
Subsidiaries
Consolidating
Adjustments
Consolidated
TRI Pointe
Group, Inc.
Homebuilding:    
Home sales revenue$192,752  $499,386  $—  $692,138  
Land and lot sales revenue—  5,183  —  5,183  
Other operations revenue—  637  —  637  
Total revenues192,752  505,206  —  697,958  
Cost of home sales163,356  411,328  —  574,684  
Cost of land and lot sales—  5,562  —  5,562  
Other operations expense—  627  —  627  
Sales and marketing9,961  37,104  —  47,065  
General and administrative18,391  18,463  —  36,854  
Homebuilding income from operations1,044  32,122  —  33,166  
Equity in loss of unconsolidated entities—  (26) —  (26) 
Other income, net 145  —  153  
Homebuilding income before income taxes1,052  32,241  —  33,293  
Financial Services:    
Revenues—  756  —  756  
Expenses—  627  —  627  
Equity in income of unconsolidated entities—  1,972  —  1,972  
Financial services income before income taxes—  2,101  —  2,101  
Income before income taxes1,052  34,342  —  35,394  
Equity of net income of subsidiaries25,215  —  (25,215) —  
Provision for income taxes(5) (9,127) —  (9,132) 
Net income$26,262  $25,215  $(25,215) $26,262  
Condensed Consolidating Statement of Operations (in thousands):

Six Months Ended June 30, 2020
Issuer (1)Guarantor
Subsidiaries
Consolidating
Adjustments
Consolidated
TRI Pointe
Group, Inc.
Homebuilding:
Home sales revenue$365,143  $996,637  $—  $1,361,780  
Land and lot sales revenue—  220  —  220  
Other operations revenue—  1,266  —  1,266  
Total revenues365,143  998,123  —  1,363,266  
Cost of home sales307,986  766,330  —  1,074,316  
Cost of land and lot sales—  576  —  576  
Other operations expense—  1,248  —  1,248  
Sales and marketing21,102  66,729  —  87,831  
General and administrative39,218  38,173  —  77,391  
Restructuring charges1,111  4,438  —  5,549  
Homebuilding (loss) income from operations(4,274) 120,629  —  116,355  
Equity in loss of unconsolidated entities—  (39) —  (39) 
Other (loss) income, net(6,128) 173  —  (5,955) 
Homebuilding (loss) income before income taxes(10,402) 120,763  —  110,361  
Financial Services:
Revenues—  3,890  —  3,890  
Expenses—  2,364  —  2,364  
Equity in income of unconsolidated entities—  4,488  —  4,488  
Financial services income before income taxes—  6,014  —  6,014  
(Loss) income before income taxes(10,402) 126,777  —  116,375  
Equity of net income of subsidiaries98,813  —  (98,813) —  
Provision for income taxes—  (27,964) —  (27,964) 
Net income$88,411  $98,813  $(98,813) $88,411  
Condensed Consolidating Statement of Operations (in thousands):

Six Months Ended June 30, 2019
Issuer (1)Guarantor
Subsidiaries
Consolidating
Adjustments
Consolidated
TRI Pointe
Group, Inc.
Homebuilding:
Home sales revenue$364,543  $820,298  $—  $1,184,841  
Land and lot sales revenue—  6,212  —  6,212  
Other operations revenue—  1,235  —  1,235  
Total revenues364,543  827,745  —  1,192,288  
Cost of home sales308,431  687,789  —  996,220  
Cost of land and lot sales—  7,057  —  7,057  
Other operations expense—  1,217  —  1,217  
Sales and marketing19,260  66,794  —  86,054  
General and administrative37,870  37,581  —  75,451  
Homebuilding (loss) income from operations(1,018) 27,307  —  26,289  
Equity in loss of unconsolidated entities—  (51) —  (51) 
Other income, net6,148  246  —  6,394  
Homebuilding income before taxes5,130  27,502  —  32,632  
Financial Services:
Revenues—  1,058  —  1,058  
Expenses—  948  —  948  
Equity in loss of unconsolidated entities—  2,747  —  2,747  
Financial services income from operations before taxes—  2,857  —  2,857  
Income before taxes5,130  30,359  —  35,489  
Equity of net income of subsidiaries21,208  —  (21,208) —  
Provision for income taxes(5) (9,151) —  (9,156) 
Net income $26,333  $21,208  $(21,208) $26,333  
Condensed Consolidating Statement of Cash Flows (in thousands):
 
 Six Months Ended June 30, 2020
IssuerGuarantor
Subsidiaries
Consolidating
Adjustments
Consolidated
TRI Pointe
Group, Inc.
Cash flows from operating activities:    
Net cash provided by operating activities$36,321  $129,907  $—  $166,228  
Cash flows from investing activities:    
Purchases of property and equipment(4,162) (7,840) —  (12,002) 
Proceeds from sale of property and equipment—  17  —  17  
Investments in unconsolidated entities—  (25,715) —  (25,715) 
Intercompany158,116  —  (158,116) —  
Net cash used in (provided by) investing activities153,954  (33,538) (158,116) (37,700) 
Cash flows from financing activities:    
Borrowings from debt850,000  —  —  850,000  
Repayment of debt(721,673) —  —  (721,673) 
Debt issuance costs(4,768) —  —  (4,768) 
Proceeds from issuance of common stock under
   share-based awards
921  —  —  921  
Minimum tax withholding paid on behalf of employees for
   restricted stock units
(5,473) —  —  (5,473) 
Share repurchases
(102,001) —  —  (102,001) 
Intercompany
—  (158,116) 158,116  —  
Net cash provided by (used in) financing activities17,006  (158,116) 158,116  17,006  
Net increase (decrease) in cash and cash equivalents207,281  (61,747) —  145,534  
Cash and cash equivalents–beginning of period186,200  142,811  —  329,011  
Cash and cash equivalents–end of period$393,481  $81,064  $—  $474,545  
Condensed Consolidating Statement of Cash Flows (in thousands):
 
 Six Months Ended June 30, 2019
IssuerGuarantor
Subsidiaries
Consolidating
Adjustments
Consolidated
TRI Pointe
Group, Inc.
Cash flows from operating activities:    
Net cash provided by (used in) operating activities$32,114  $(136,053) $—  $(103,939) 
Cash flows from investing activities:   
Purchases of property and equipment(4,532) (8,610) —  (13,142) 
Proceeds from sale of property and equipment—  46  —  46  
Investments in unconsolidated entities—  (712) —  (712) 
Intercompany(133,658) —  133,658  —  
Net cash used in investing activities(138,190) (9,276) 133,658  (13,808) 
Cash flows from financing activities:   
Borrowings from notes payable400,000  —  —  400,000  
Repayment of notes payable(381,895) —  —  (381,895) 
Debt issuance costs(3,125) —  —  (3,125) 
Proceeds from issuance of common stock under
   share-based awards
199  —  —  199  
Minimum tax withholding paid on behalf of employees for restricted stock units(3,612) —  —  (3,612) 
Intercompany—  133,658  (133,658) —  
Net cash provided by (used in) financing activities11,567  133,658  (133,658) 11,567  
Net decrease in cash and cash equivalents(94,509) (11,671) —  (106,180) 
Cash and cash equivalents–beginning of period148,129  129,567  —  277,696  
Cash and cash equivalents–end of period$53,620  $117,896  $—  $171,516  
v3.20.2
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Policies)
6 Months Ended
Jun. 30, 2020
Accounting Policies [Abstract]  
Organization and Basis of Presentation
Organization
TRI Pointe is engaged in the design, construction and sale of innovative single-family attached and detached homes through its portfolio of six quality brands across ten states, including Maracay in Arizona, Pardee Homes in California and Nevada, Quadrant Homes in Washington, Trendmaker Homes in Texas, TRI Pointe Homes in California, Colorado and the Carolinas and Winchester Homes in Maryland and Virginia.
Basis of Presentation
The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They should be read in conjunction with our consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019. In the opinion of management, all adjustments consisting of normal recurring adjustments, necessary for a fair presentation with respect to interim financial statements, have been included. The results for the three and six months ended June 30, 2020 are not necessarily indicative of the results to be expected for the full year ending December 31, 2020 due to seasonal variations and other factors, such as the effects of the novel coronavirus (“COVID-19”) and its influence on our future results.
The consolidated financial statements include the accounts of TRI Pointe Group and its wholly owned subsidiaries, as well as other entities in which TRI Pointe Group has a controlling interest and variable interest entities (“VIEs”) in which TRI Pointe Group is the primary beneficiary.  The noncontrolling interests as of June 30, 2020 and December 31, 2019 represent the outside owners’ interests in the Company’s consolidated entities.  All significant intercompany accounts have been eliminated upon consolidation.
Use of Estimates
Use of Estimates
Our financial statements have been prepared in accordance with GAAP. The preparation of these financial statements requires our management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from our estimates.
Revenue Recognition
Revenue Recognition
We recognize revenue in accordance with Accounting Standards Topic 606 (“ASC 606”), Revenue from Contracts with Customers. Under ASC 606, we apply the following steps to determine the timing and amount of revenue to recognize: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation.
Home sales revenue
We generate the majority of our total revenues from home sales, which consists of our core business operation of building and delivering completed homes to homebuyers. Home sales revenue and related profit is generally recognized when title to and possession of the home is transferred to the homebuyer at the home closing date. Our performance obligation to deliver the agreed-upon home is generally satisfied in less than one year from the original contract date. Included in home sales revenue are forfeited deposits, which occur when homebuyers cancel home purchase contracts that include a nonrefundable deposit. Both revenue from forfeited deposits and deferred revenue resulting from uncompleted performance obligations existing at the time we deliver new homes to our homebuyers are immaterial.
Land and lot sales revenue
Historically, we have generated land and lot sales revenue from a small number of transactions, although in some years we have realized a significant amount of revenue and gross margin. We do not expect our future land and lot sales revenue to be material, but we still consider these sales to be an ordinary part of our business, thus meeting the definition of contracts with customers. Similar to our home sales, revenue from land and lot sales is typically fully recognized when the land and lot sales transactions are consummated, at which time no further performance obligations are left to be satisfied. Some of our historical land and lot sales have included future profit participation rights. We will recognize future land and lot sales revenue in the periods in which all closing conditions are met, subject to the constraint on variable consideration related to profit participation rights, if such rights exist in the sales contract.
Other operations revenue
The majority of our homebuilding other operations revenue relates to a ground lease at our Quadrant Homes reporting segment. We are responsible for making lease payments to the landowner, and we collect sublease payments from the buyers of the buildings. This ground lease is accounted for in accordance with ASC Topic 842, Leases. We do not recognize a material profit on this ground lease.
Financial services revenues
TRI Pointe Solutions is a reportable segment and is comprised of our TRI Pointe Connect mortgage financing operations, TRI Pointe Assurance title and escrow services operations, and TRI Pointe Advantage property and casualty insurance agency operations.
Mortgage financing operations
TRI Pointe Connect was formed as a joint venture with an established mortgage lender and is accounted for under the equity method of accounting.  We record a percentage of income earned by TRI Pointe Connect based on our ownership percentage in this joint venture. TRI Pointe Connect activity appears as equity in income of unconsolidated entities under the Financial Services section of our consolidated statements of operations.
Title and escrow services operations
TRI Pointe Assurance provides title examinations for our homebuyers in Austin (Texas), Colorado and Maryland and both title examinations and escrow services for our homebuyers in Arizona, Nevada, Texas and Virginia.  TRI Pointe Assurance is a wholly owned subsidiary of TRI Pointe and acts as a title agency for First American Title Insurance Company. Revenue from our title and escrow services operations is fully recognized at the time of the consummation of the home sales transaction, at which time no further performance obligations are left to be satisfied. TRI Pointe Assurance revenue is included in the Financial Services section of our consolidated statements of operations.
Property and casualty insurance agency operations
TRI Pointe Advantage is a wholly owned subsidiary of TRI Pointe and provides property and casualty insurance agency services that help facilitate the closing process in all of the markets in which we operate. The total consideration for these services, including renewal options, is estimated upon the issuance of the initial insurance policy, subject to constraint. TRI Pointe Advantage revenue is included in the Financial Services section of our consolidated statements of operations.
Recently Issued Accounting Standards
Recently Issued Accounting Standards Not Yet Adopted
In December 2019, the FASB issued Accounting Standards Update (“ASU”) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for the Company beginning after December 15, 2020. We do not expect the adoption of ASU 2019-12 to have a material impact on our consolidated financial statements.
Adoption of New Accounting Standards
In January 2017, the FASB issued ASU No. 2017-04, IntangiblesGoodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment (“ASU 2017-04”), which removes the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted, and applied prospectively. We adopted ASU 2017-04 on January 1, 2020 and our adoption did not have a material impact on our consolidated financial statements.
In June 2016, the FASB issued ASU No. 2016-13, Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to estimate credit losses for financial instruments, including receivables from community facilities districts or similar municipalities. ASU 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted. We adopted ASU 2016-13 on January 1, 2020 and our adoption did not have a material impact on our consolidated financial statements.
Segment Information
We operate two principal businesses: homebuilding and financial services.
Our homebuilding operations consist of six homebuilding brands that acquire and develop land and construct and sell single-family detached and attached homes. In accordance with ASC Topic 280, Segment Reporting, in determining the most appropriate reportable segments, we considered similar economic and other characteristics, including product types, average selling prices, gross profits, production processes, suppliers, subcontractors, regulatory environments, land acquisition results, and underlying demand and supply. Based upon these factors, our homebuilding operations are comprised of the following six reportable segments: Maracay, consisting of operations in Arizona; Pardee Homes, consisting of operations in California and Nevada; Quadrant Homes, consisting of operations in Washington; Trendmaker Homes, consisting of operations in Texas; TRI Pointe Homes, consisting of operations in California and Colorado, as well as early stage operations in the Carolinas; and Winchester Homes, consisting of operations in Maryland and Virginia.
Our TRI Pointe Solutions financial services operation is a reportable segment and is comprised of our TRI Pointe Connect mortgage financing operations, our TRI Pointe Assurance title and escrow services operations, and our TRI Pointe Advantage property and casualty insurance agency operations. For further details, see Note 1, Organization, Basis of Presentation and Summary of Significant Accounting Policies.
Corporate is a non-operating segment that develops and implements company-wide strategic initiatives and provides support to our homebuilding reporting segments by centralizing certain administrative functions, such as marketing, legal, accounting, treasury, insurance, internal audit and risk management, information technology and human resources, to benefit from economies of scale. Our Corporate non-operating segment also includes general and administrative expenses related to operating our corporate headquarters. A portion of the expenses incurred by Corporate is allocated to the homebuilding reporting segments.
The reportable segments follow the same accounting policies used for our consolidated financial statements, as described in Note 1, Organization, Basis of Presentation and Summary of Significant Accounting Policies. 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.
Fair Value Measurements
Fair Value Measurements
ASC Topic 820, Fair Value Measurements and Disclosures, defines “fair value” as the price that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at measurement date and requires assets and liabilities carried at fair value to be classified and disclosed in the following three categories:
Level 1—Quoted prices for identical instruments in active markets
Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are inactive; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets at measurement date
Level 3—Valuations derived from techniques where one or more significant inputs or significant value drivers are unobservable in active markets at measurement date
v3.20.2
Segment Information (Tables)
6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Summary of Financial Information Relating to Reportable Segments
Total revenues and income before income taxes for each of our reportable segments were as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Revenues  
Maracay $86,674  $55,653  $158,426  $95,214  
Pardee Homes242,282  194,699  420,684  329,562  
Quadrant Homes37,298  71,066  81,372  114,937  
Trendmaker Homes121,257  121,963  217,377  192,784  
TRI Pointe Homes206,474  192,752  365,144  364,543  
Winchester Homes73,825  61,825  120,263  95,248  
Total homebuilding revenues767,810  697,958  1,363,266  1,192,288  
Financial services2,296  756  3,890  1,058  
Total$770,106  $698,714  $1,367,156  $1,193,346  
Income (loss) before income taxes
Maracay $8,042  $2,986  $12,604  $4,176  
Pardee Homes48,980  14,735  82,459  13,944  
Quadrant Homes2,246  5,193  4,943  2,554  
Trendmaker Homes10,512  6,908  15,309  5,310  
TRI Pointe Homes15,741  12,280  20,101  22,489  
Winchester Homes4,670  2,555  5,716  1,789  
Corporate(19,463) (11,364) (30,771) (17,630) 
Total homebuilding income before income taxes70,728  33,293  110,361  32,632  
Financial services3,943  2,101  6,014  2,857  
Total$74,671  $35,394  $116,375  $35,489  
 
Total real estate inventories and total assets for each of our reportable segments, as of the date indicated, were as follows (in thousands):
June 30, 2020December 31, 2019
Real estate inventories
Maracay$352,316  $338,259  
Pardee Homes1,209,444  1,218,384  
Quadrant Homes270,446  264,437  
Trendmaker Homes240,467  268,759  
TRI Pointe Homes699,708  737,662  
Winchester Homes240,241  237,935  
Total$3,012,622  $3,065,436  
Total assets
Maracay$389,587  $382,262  
Pardee Homes1,306,846  1,300,047  
Quadrant Homes320,792  331,187  
Trendmaker Homes300,157  353,610  
TRI Pointe Homes893,417  930,348  
Winchester Homes304,466  291,456  
Corporate429,512  241,357  
Total homebuilding assets3,944,777  3,830,267  
Financial services33,127  28,423  
Total$3,977,904  $3,858,690  
v3.20.2
Earnings Per Share (Tables)
6 Months Ended
Jun. 30, 2020
Earnings Per Share [Abstract]  
Computation of Basic and Diluted Earnings Per Share
The following table sets forth the components used in the computation of basic and diluted earnings per share (in thousands, except share and per share amounts):
 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
Numerator:    
Net income$56,528  $26,262  $88,411  $26,333  
Denominator:    
Basic weighted-average shares outstanding130,292,563  142,244,166  132,326,856  142,055,766  
Effect of dilutive shares:   
Stock options and unvested restricted stock units214,004  227,025  436,919  375,959  
Diluted weighted-average shares outstanding130,506,567  142,471,191  132,763,775  142,431,725  
Earnings per share    
Basic$0.43  $0.18  $0.67  $0.19  
Diluted$0.43  $0.18  $0.67  $0.18  
Antidilutive stock options and unvested restricted stock units not included in diluted earnings per share3,090,298  2,920,708  2,992,479  3,144,445  
v3.20.2
Receivables (Tables)
6 Months Ended
Jun. 30, 2020
Receivables [Abstract]  
Components of Receivables
Receivables consisted of the following (in thousands):
June 30, 2020December 31, 2019
Escrow proceeds and other accounts receivable, net$47,836  $29,282  
Warranty insurance receivable (Note 13)39,744  39,994  
Total receivables$87,580  $69,276  
v3.20.2
Real Estate Inventories (Tables)
6 Months Ended
Jun. 30, 2020
Inventory Disclosure [Abstract]  
Summary of Real Estate Inventories
Real estate inventories consisted of the following (in thousands):
June 30, 2020December 31, 2019
Real estate inventories owned:
Homes completed or under construction$1,039,681  $951,974  
Land under development1,452,440  1,641,354  
Land held for future development152,032  122,847  
Model homes286,760  275,204  
Total real estate inventories owned2,930,913  2,991,379  
Real estate inventories not owned:
Land purchase and land option deposits81,709  74,057  
Total real estate inventories not owned81,709  74,057  
Total real estate inventories$3,012,622  $3,065,436  
Summary of Interest Incurred, Capitalized and Expensed
Interest incurred, capitalized and expensed were as follows (in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
Interest incurred$21,828  $21,962  $42,607  $45,335  
Interest capitalized(21,828) (21,962) (42,607) (45,335) 
Interest expensed$—  $—  $—  $—  
Capitalized interest in beginning inventory$196,313  $193,440  $192,356  $184,400  
Interest capitalized as a cost of inventory21,828  21,962  42,607  45,335  
Interest previously capitalized as a cost of
inventory, included in cost of sales
(21,806) (18,107) (38,628) (32,440) 
Capitalized interest in ending inventory$196,335  $197,295  $196,335  $197,295  
Schedule of Real Estate Inventory Impairments and Land Option Abandonments
Real estate inventory impairments and land and lot option abandonments and pre-acquisition charges consisted of the following (in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
Real estate inventory impairments$—  $—  $—  $—  
Land and lot option abandonments and pre-acquisition charges1,380  288  1,729  5,490  
Total$1,380  $288  $1,729  $5,490  
v3.20.2
Investments in Unconsolidated Entities (Tables)
6 Months Ended
Jun. 30, 2020
Equity Method Investments and Joint Ventures [Abstract]  
Aggregated Assets, Liabilities and Operating Results of Entities as Equity-Method Investments
Assets and liabilities of unconsolidated entities (in thousands):
 
June 30, 2020December 31, 2019
Assets
Cash$12,005  $8,537  
Receivables2,498  7,393  
Real estate inventories198,789  116,760  
Other assets604  703  
Total assets$213,896  $133,393  
Liabilities and equity
Accounts payable and other liabilities$42,248  $11,009  
Company’s equity36,040  11,745  
Outside interests’ equity135,608  110,639  
Total liabilities and equity$213,896  $133,393  
 
Results of operations from unconsolidated entities (in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
Net sales$8,726  $6,353  $14,696  $10,464  
Other operating expense(4,400) (3,528) (8,156) (6,280) 
Other income, net(1) (7) (4)  
Net income $4,325  $2,818  $6,536  $4,185  
Company’s equity in income of unconsolidated entities$2,907  $1,946  $4,449  $2,696  
v3.20.2
Variable Interest Entities (Tables)
6 Months Ended
Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Summary of Interests in Land Option Agreements
The following provides a summary of our interests in land and lot option agreements (in thousands):
 June 30, 2020December 31, 2019
DepositsRemaining
Purchase
Price
Consolidated
Inventory
Held by VIEs
DepositsRemaining
Purchase
Price
Consolidated
Inventory
Held by VIEs
Consolidated VIEs$—  $—  $—  $—  $—  $—  
Unconsolidated VIEs39,070  441,528  N/A42,896  440,974  N/A
Other land option agreements42,639  374,674  N/A31,161  358,345  N/A
Total$81,709  $816,202  $—  $74,057  $799,319  $—  
v3.20.2
Goodwill and Other Intangible Assets (Tables)
6 Months Ended
Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill and Other Intangible Assets
Goodwill and other intangible assets consisted of the following (in thousands):
June 30, 2020December 31, 2019
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Goodwill$139,304  $—  $139,304  $139,304  $—  $139,304  
Trade names27,979  (7,657) 20,322  27,979  (7,390) 20,589  
Total$167,283  $(7,657) $159,626  $167,283  $(7,390) $159,893  
Schedule of Expected Amortization of Intangible Asset
Expected amortization of our intangible asset related to Maracay for the remainder of 2020, the next four years and thereafter is (in thousands):
Remainder of 2020$267  
2021534  
2022534  
2023534  
2024534  
Thereafter619  
Total$3,022  
v3.20.2
Other Assets (Tables)
6 Months Ended
Jun. 30, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Other Assets
Other assets consisted of the following (in thousands):
June 30, 2020December 31, 2019
Prepaid expenses$21,273  $24,070  
Refundable fees and other deposits29,785  30,242  
Development rights, held for future use or sale2,063  2,213  
Deferred loan costs—loans payable3,709  4,345  
Operating properties and equipment, net58,155  57,803  
Lease right-of-use assets49,506  50,947  
Other3,256  3,805  
Total$167,747  $173,425  
v3.20.2
Accrued Expenses and Other Liabilities (Tables)
6 Months Ended
Jun. 30, 2020
Payables and Accruals [Abstract]  
Schedule of Accrued Expenses and Other Liabilities
Accrued expenses and other liabilities consisted of the following (in thousands):
June 30, 2020December 31, 2019
Accrued payroll and related costs$25,015  $42,798  
Warranty reserves (Note 13)
79,190  76,607  
Estimated cost for completion of real estate inventories78,601  90,899  
Customer deposits29,925  20,390  
Income tax liability to Weyerhaeuser346  346  
Accrued income taxes payable18,605  1,530  
Liability for uncertain tax positions (Note 15)486  486  
Accrued interest6,886  11,952  
Other tax liability7,665  8,448  
Lease liabilities54,395  56,125  
Other13,704  12,462  
Total$314,818  $322,043  
v3.20.2
Senior Notes and Loans Payable (Tables)
6 Months Ended
Jun. 30, 2020
Debt Disclosure [Abstract]  
Schedule of Senior Notes and Loans Payable
The Company’s outstanding senior notes (together, the “Senior Notes”) consisted of the following (in thousands):
June 30, 2020December 31, 2019
4.875% Senior Notes due July 1, 2021
$83,734  $300,000  
5.875% Senior Notes due June 15, 2024
450,000  450,000  
5.250% Senior Notes due June 1, 2027
300,000  300,000  
5.700% Senior Notes due June 15, 2028
350,000  —  
Discount and deferred loan costs(17,545) (16,015) 
Total$1,166,189  $1,033,985  
The Company’s outstanding loans payable consisted of the following (in thousands):
June 30, 2020December 31, 2019
Term loan facility$250,000  $250,000  
Total$250,000  $250,000  
v3.20.2
Fair Value Disclosures (Tables)
6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
Summary of Assets and Liabilities Related to Financial Instruments, Measured at Fair Value on a Recurring Basis
A summary of assets and liabilities at June 30, 2020 and December 31, 2019, related to our financial instruments, measured at fair value on a recurring basis, is set forth below (in thousands):
June 30, 2020December 31, 2019
HierarchyBook ValueFair ValueBook ValueFair Value
Senior Notes (1)
Level 2$1,179,783  $1,195,826  $1,045,072  $1,104,750  
Term loan facility (2)
Level 2$250,000  $250,000  $250,000  $250,000  
 __________
(1)The book value of the Senior Notes is net of discounts, excluding deferred loan costs of $13.6 million and $11.1 million as of June 30, 2020 and December 31, 2019, respectively. The estimated fair value of the Senior Notes at June 30, 2020 and December 31, 2019 is based on quoted market prices.
(2)The estimated fair value of the Term Loan Facility as of June 30, 2020 approximated book value due to the variable interest rate terms of this loan.
v3.20.2
Commitments and Contingencies (Tables)
6 Months Ended
Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Warranty Reserves
Warranty reserve activity consisted of the following (in thousands):
 
 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
Warranty reserves, beginning of period$76,487  $70,947  $76,607  $71,836  
Warranty reserves accrued6,988  6,385  12,144  10,655  
Warranty expenditures(4,285) (5,861) (9,561) (11,020) 
Warranty reserves, end of period$79,190  $71,471  $79,190  $71,471  
Schedule of Lease Costs and Other Information See below for additional information on leases (dollars in thousands):
Three Months Ended June 30, 2020Three Months Ended June 30, 2019Six Months Ended June 30, 2020Six Months Ended June 30, 2019
Lease Cost
Operating lease cost (included in SG&A expense)$2,456  $2,166  $4,794  $4,210  
Ground lease cost (included in other operations expense)624  627  1,248  1,217  
Sublease income, operating leases—  —  —  —  
Sublease income, ground leases (included in other operations revenue)(648) (637) (1,266) (1,235) 
Net lease cost$2,432  $2,156  $4,776  $4,192  
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating lease cash flows (included in operating cash flows)$2,220  $1,641  $4,234  $3,250  
Ground lease cash flows (included in operating cash flows)$624  $609  $1,248  $1,217  
Right-of-use assets obtained in exchange for new operating lease liabilities$1,135  $346  $1,155  $2,053  
June 30, 2020December 31, 2019
Weighted-average discount rate:
Operating leases5.9 %5.9 %
Ground leases10.2 %10.2 %
Weighted-average remaining lease term (in years):
Operating leases5.86.1
Ground leases47.548.1
Schedule of Future Minimum Lease Payments
The future minimum lease payments under our operating leases are as follows (in thousands):
Property, Equipment and Other Leases
Ground Leases (1)
Remaining in 2020$4,460  $1,535  
20217,855  3,070  
20225,610  3,070  
20234,503  3,070  
20242,779  3,070  
Thereafter6,410  83,515  
Total lease payments$31,617  $97,330  
Less: Interest4,762  69,790  
Present value of operating lease liabilities$26,855  $27,540  
 __________
(1)  Ground leases are fully subleased through 2041, representing $65.5 million of the $97.3 million future ground lease obligations.
v3.20.2
Stock-Based Compensation (Tables)
6 Months Ended
Jun. 30, 2020
Share-based Payment Arrangement [Abstract]  
Summary of Compensation Expense Recognized Related to all Stock-Based Awards
The following table presents compensation expense recognized related to all stock-based awards (in thousands):
 
 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
Total stock-based compensation$3,786  $3,351  $7,411  $6,786  
Summary of Stock Option Awards
The following table presents a summary of stock option awards for the six months ended June 30, 2020:
OptionsWeighted
Average
Exercise
Price
Per Share
Weighted
Average
Remaining
Contractual
Life
Aggregate
Intrinsic
Value
(in thousands)
Options outstanding at December 31, 2019891,343  $15.03  3.4$994  
Granted—  —  —  —  
Exercised(78,506) $11.94  —  —  
Forfeited(8,257) $14.37  —  —  
Options outstanding at June 30, 2020804,580  $15.34  3$247  
Options exercisable at June 30, 2020804,580  $15.34  3$247  
Summary of Restricted Stock Units The following table presents a summary of RSUs for the six months ended June 30, 2020:
Restricted
Stock
Units
Weighted
Average
Grant Date
Fair Value
Per Share
Aggregate
Intrinsic
Value
(in thousands)
Nonvested RSUs at December 31, 20193,384,351  $12.39  $52,694  
Granted1,458,633  $18.45  —  
Vested(990,929) $13.36  —  
Forfeited(744,904) $10.81  —  
Nonvested RSUs at June 30, 20203,107,151  $15.30  $43,997  
v3.20.2
Supplemental Disclosure to Consolidated Statements of Cash Flows (Tables)
6 Months Ended
Jun. 30, 2020
Supplemental Cash Flow Elements [Abstract]  
Supplemental Disclosure to Consolidated Statements of Cash Flows
The following are supplemental disclosures to the consolidated statements of cash flows (in thousands):
Six Months Ended June 30,
20202019
Supplemental disclosure of cash flow information:
Interest paid (capitalized), net$1,191  $(3,104) 
Income taxes paid (refunded), net$(12) $10,601  
Supplemental disclosures of noncash activities:
Amortization of senior note discount capitalized to real estate inventory$579  $981  
Amortization of deferred loan costs capitalized to real estate inventory$1,844  $2,826  
v3.20.2
Supplemental Guarantor Information (Tables)
6 Months Ended
Jun. 30, 2020
Condensed Financial Information Disclosure [Abstract]  
Condensed Consolidating Balance Sheet
Condensed Consolidating Balance Sheet (in thousands):
 
June 30, 2020
IssuerGuarantor
Subsidiaries
Consolidating
Adjustments
Consolidated
TRI Pointe
Group, Inc.
Assets
Cash and cash equivalents$393,481  $81,064  $—  $474,545  
Receivables27,555  60,025  —  87,580  
Intercompany receivables421,075  —  (421,075) —  
Real estate inventories699,708  2,312,914  —  3,012,622  
Investments in unconsolidated entities—  36,040  —  36,040  
Goodwill and other intangible assets, net156,604  3,022  —  159,626  
Investments in subsidiaries1,968,697  —  (1,968,697) —  
Deferred tax assets, net9,021  30,723  —  39,744  
Other assets5,192  162,555  —  167,747  
Total assets$3,681,333  $2,686,343  $(2,389,772) $3,977,904  
Liabilities
Accounts payable$16,911  $54,175  $—  $71,086  
Intercompany payables—  421,075  (421,075) —  
Accrued expenses and other liabilities72,434  242,384  —  314,818  
Loans payable250,000  —  —  250,000  
Senior notes1,166,189  —  —  1,166,189  
Total liabilities1,505,534  717,634  (421,075) 1,802,093  
Equity
Total stockholders’ equity2,175,799  1,968,697  (1,968,697) 2,175,799  
Noncontrolling interests—  12  —  12  
Total equity2,175,799  1,968,709  (1,968,697) 2,175,811  
Total liabilities and equity$3,681,333  $2,686,343  $(2,389,772) $3,977,904  
Condensed Consolidating Balance Sheet (in thousands):
 
 December 31, 2019
IssuerGuarantor
Subsidiaries
Consolidating
Adjustments
Consolidated
TRI Pointe
Group, Inc.
Assets    
Cash and cash equivalents$186,200  $142,811  $—  $329,011  
Receivables26,016  43,260  —  69,276  
Intercompany receivables576,846  —  (576,846) —  
Real estate inventories737,662  2,327,774  —  3,065,436  
Investments in unconsolidated entities—  11,745  —  11,745  
Goodwill and other intangible assets, net156,604  3,289  —  159,893  
Investments in subsidiaries1,870,885  —  (1,870,885) —  
Deferred tax assets, net9,020  40,884  —  49,904  
Other assets14,676  158,749  —  173,425  
Total assets$3,577,909  $2,728,512  $(2,447,731) $3,858,690  
Liabilities    
Accounts payable$14,915  $51,205  $—  $66,120  
Intercompany payables—  576,846  (576,846) —  
Accrued expenses and other liabilities92,479  229,564  —  322,043  
Loans payable250,000  —  —  250,000  
Senior notes1,033,985  —  —  1,033,985  
Total liabilities1,391,379  857,615  (576,846) 1,672,148  
Equity    
Total stockholders’ equity2,186,530  1,870,885  (1,870,885) 2,186,530  
Noncontrolling interests—  12  —  12  
Total equity2,186,530  1,870,897  (1,870,885) 2,186,542  
Total liabilities and equity$3,577,909  $2,728,512  $(2,447,731) $3,858,690  
Condensed Consolidating Statement of Operations
Condensed Consolidating Statement of Operations (in thousands):
 
 Three Months Ended June 30, 2020
IssuerGuarantor
Subsidiaries
Consolidating
Adjustments
Consolidated
TRI Pointe
Group, Inc.
Homebuilding:    
Home sales revenue$206,473  $560,469  $—  $766,942  
Land and lot sales revenue—  220  —  220  
Other operations revenue—  648  —  648  
Total revenues206,473  561,337  —  767,810  
Cost of home sales172,086  429,348  —  601,434  
Cost of land and lot sales—  374  —  374  
Other operations expense—  624  —  624  
Sales and marketing10,667  34,527  —  45,194  
General and administrative19,875  17,679  —  37,554  
Restructuring charges1,111  4,438  —  5,549  
Homebuilding income from operations2,734  74,347  —  77,081  
Equity in loss of unconsolidated entities—  (25) —  (25) 
Other loss, net(6,320) (8) —  (6,328) 
Homebuilding (loss) income before income taxes(3,586) 74,314  —  70,728  
Financial Services:    
Revenues—  2,296  —  2,296  
Expenses—  1,285  —  1,285  
Equity in income of unconsolidated entities—  2,932  —  2,932  
Financial services income before income taxes—  3,943  —  3,943  
(Loss) income before income taxes(3,586) 78,257  —  74,671  
Equity of net income of subsidiaries60,114  —  (60,114) —  
Provision for income taxes—  (18,143) —  (18,143) 
Net income$56,528  $60,114  $(60,114) $56,528  
Condensed Consolidating Statement of Operations (in thousands):
 
 Three Months Ended June 30, 2019
IssuerGuarantor
Subsidiaries
Consolidating
Adjustments
Consolidated
TRI Pointe
Group, Inc.
Homebuilding:    
Home sales revenue$192,752  $499,386  $—  $692,138  
Land and lot sales revenue—  5,183  —  5,183  
Other operations revenue—  637  —  637  
Total revenues192,752  505,206  —  697,958  
Cost of home sales163,356  411,328  —  574,684  
Cost of land and lot sales—  5,562  —  5,562  
Other operations expense—  627  —  627  
Sales and marketing9,961  37,104  —  47,065  
General and administrative18,391  18,463  —  36,854  
Homebuilding income from operations1,044  32,122  —  33,166  
Equity in loss of unconsolidated entities—  (26) —  (26) 
Other income, net 145  —  153  
Homebuilding income before income taxes1,052  32,241  —  33,293  
Financial Services:    
Revenues—  756  —  756  
Expenses—  627  —  627  
Equity in income of unconsolidated entities—  1,972  —  1,972  
Financial services income before income taxes—  2,101  —  2,101  
Income before income taxes1,052  34,342  —  35,394  
Equity of net income of subsidiaries25,215  —  (25,215) —  
Provision for income taxes(5) (9,127) —  (9,132) 
Net income$26,262  $25,215  $(25,215) $26,262  
Condensed Consolidating Statement of Operations (in thousands):

Six Months Ended June 30, 2020
Issuer (1)Guarantor
Subsidiaries
Consolidating
Adjustments
Consolidated
TRI Pointe
Group, Inc.
Homebuilding:
Home sales revenue$365,143  $996,637  $—  $1,361,780  
Land and lot sales revenue—  220  —  220  
Other operations revenue—  1,266  —  1,266  
Total revenues365,143  998,123  —  1,363,266  
Cost of home sales307,986  766,330  —  1,074,316  
Cost of land and lot sales—  576  —  576  
Other operations expense—  1,248  —  1,248  
Sales and marketing21,102  66,729  —  87,831  
General and administrative39,218  38,173  —  77,391  
Restructuring charges1,111  4,438  —  5,549  
Homebuilding (loss) income from operations(4,274) 120,629  —  116,355  
Equity in loss of unconsolidated entities—  (39) —  (39) 
Other (loss) income, net(6,128) 173  —  (5,955) 
Homebuilding (loss) income before income taxes(10,402) 120,763  —  110,361  
Financial Services:
Revenues—  3,890  —  3,890  
Expenses—  2,364  —  2,364  
Equity in income of unconsolidated entities—  4,488  —  4,488  
Financial services income before income taxes—  6,014  —  6,014  
(Loss) income before income taxes(10,402) 126,777  —  116,375  
Equity of net income of subsidiaries98,813  —  (98,813) —  
Provision for income taxes—  (27,964) —  (27,964) 
Net income$88,411  $98,813  $(98,813) $88,411  
Condensed Consolidating Statement of Operations (in thousands):

Six Months Ended June 30, 2019
Issuer (1)Guarantor
Subsidiaries
Consolidating
Adjustments
Consolidated
TRI Pointe
Group, Inc.
Homebuilding:
Home sales revenue$364,543  $820,298  $—  $1,184,841  
Land and lot sales revenue—  6,212  —  6,212  
Other operations revenue—  1,235  —  1,235  
Total revenues364,543  827,745  —  1,192,288  
Cost of home sales308,431  687,789  —  996,220  
Cost of land and lot sales—  7,057  —  7,057  
Other operations expense—  1,217  —  1,217  
Sales and marketing19,260  66,794  —  86,054  
General and administrative37,870  37,581  —  75,451  
Homebuilding (loss) income from operations(1,018) 27,307  —  26,289  
Equity in loss of unconsolidated entities—  (51) —  (51) 
Other income, net6,148  246  —  6,394  
Homebuilding income before taxes5,130  27,502  —  32,632  
Financial Services:
Revenues—  1,058  —  1,058  
Expenses—  948  —  948  
Equity in loss of unconsolidated entities—  2,747  —  2,747  
Financial services income from operations before taxes—  2,857  —  2,857  
Income before taxes5,130  30,359  —  35,489  
Equity of net income of subsidiaries21,208  —  (21,208) —  
Provision for income taxes(5) (9,151) —  (9,156) 
Net income $26,333  $21,208  $(21,208) $26,333  
Condensed Consolidating Statement of Cash Flows
Condensed Consolidating Statement of Cash Flows (in thousands):
 
 Six Months Ended June 30, 2020
IssuerGuarantor
Subsidiaries
Consolidating
Adjustments
Consolidated
TRI Pointe
Group, Inc.
Cash flows from operating activities:    
Net cash provided by operating activities$36,321  $129,907  $—  $166,228  
Cash flows from investing activities:    
Purchases of property and equipment(4,162) (7,840) —  (12,002) 
Proceeds from sale of property and equipment—  17  —  17  
Investments in unconsolidated entities—  (25,715) —  (25,715) 
Intercompany158,116  —  (158,116) —  
Net cash used in (provided by) investing activities153,954  (33,538) (158,116) (37,700) 
Cash flows from financing activities:    
Borrowings from debt850,000  —  —  850,000  
Repayment of debt(721,673) —  —  (721,673) 
Debt issuance costs(4,768) —  —  (4,768) 
Proceeds from issuance of common stock under
   share-based awards
921  —  —  921  
Minimum tax withholding paid on behalf of employees for
   restricted stock units
(5,473) —  —  (5,473) 
Share repurchases
(102,001) —  —  (102,001) 
Intercompany
—  (158,116) 158,116  —  
Net cash provided by (used in) financing activities17,006  (158,116) 158,116  17,006  
Net increase (decrease) in cash and cash equivalents207,281  (61,747) —  145,534  
Cash and cash equivalents–beginning of period186,200  142,811  —  329,011  
Cash and cash equivalents–end of period$393,481  $81,064  $—  $474,545  
Condensed Consolidating Statement of Cash Flows (in thousands):
 
 Six Months Ended June 30, 2019
IssuerGuarantor
Subsidiaries
Consolidating
Adjustments
Consolidated
TRI Pointe
Group, Inc.
Cash flows from operating activities:    
Net cash provided by (used in) operating activities$32,114  $(136,053) $—  $(103,939) 
Cash flows from investing activities:   
Purchases of property and equipment(4,532) (8,610) —  (13,142) 
Proceeds from sale of property and equipment—  46  —  46  
Investments in unconsolidated entities—  (712) —  (712) 
Intercompany(133,658) —  133,658  —  
Net cash used in investing activities(138,190) (9,276) 133,658  (13,808) 
Cash flows from financing activities:   
Borrowings from notes payable400,000  —  —  400,000  
Repayment of notes payable(381,895) —  —  (381,895) 
Debt issuance costs(3,125) —  —  (3,125) 
Proceeds from issuance of common stock under
   share-based awards
199  —  —  199  
Minimum tax withholding paid on behalf of employees for restricted stock units(3,612) —  —  (3,612) 
Intercompany—  133,658  (133,658) —  
Net cash provided by (used in) financing activities11,567  133,658  (133,658) 11,567  
Net decrease in cash and cash equivalents(94,509) (11,671) —  (106,180) 
Cash and cash equivalents–beginning of period148,129  129,567  —  277,696  
Cash and cash equivalents–end of period$53,620  $117,896  $—  $171,516  
v3.20.2
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Details)
Jun. 30, 2020
brand
state
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of brands in portfolio (brands) | brand 6
Number of states entity operates (states) | state 10
v3.20.2
Segment Information - Additional Information (Detail)
6 Months Ended
Jun. 30, 2020
segment
business
Segment Reporting Information  
Number of principal lines of businesses | business 2
All HomeBuilding Segments  
Segment Reporting Information  
Number of homebuilding companies 6
Number of reportable segments 6
v3.20.2
Segment Information - Summary of Financial Information Relating to Reportable Segments (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Segment Reporting Information          
Total revenues $ 770,106 $ 698,714 $ 1,367,156 $ 1,193,346  
Income (loss) before income taxes 74,671 35,394 116,375 35,489  
Real estate inventories 3,012,622   3,012,622   $ 3,065,436
Total assets 3,977,904   3,977,904   3,858,690
All HomeBuilding Segments          
Segment Reporting Information          
Real estate inventories 3,012,622   3,012,622   3,065,436
Total assets 3,944,777   3,944,777   3,830,267
Homebuilding          
Segment Reporting Information          
Total revenues 767,810 697,958 1,363,266 1,192,288  
Homebuilding | All HomeBuilding Segments          
Segment Reporting Information          
Total revenues 767,810 697,958 1,363,266 1,192,288  
Income (loss) before income taxes 70,728 33,293 110,361 32,632  
Financial Services          
Segment Reporting Information          
Total revenues 2,296 756 3,890 1,058  
Operating segments | Maracay          
Segment Reporting Information          
Real estate inventories 352,316   352,316   338,259
Total assets 389,587   389,587   382,262
Operating segments | Pardee Homes          
Segment Reporting Information          
Real estate inventories 1,209,444   1,209,444   1,218,384
Total assets 1,306,846   1,306,846   1,300,047
Operating segments | Quadrant Homes          
Segment Reporting Information          
Real estate inventories 270,446   270,446   264,437
Total assets 320,792   320,792   331,187
Operating segments | Trendmaker Homes          
Segment Reporting Information          
Real estate inventories 240,467   240,467   268,759
Total assets 300,157   300,157   353,610
Operating segments | TRI Pointe Homes          
Segment Reporting Information          
Real estate inventories 699,708   699,708   737,662
Total assets 893,417   893,417   930,348
Operating segments | Winchester Homes          
Segment Reporting Information          
Real estate inventories 240,241   240,241   237,935
Total assets 304,466   304,466   291,456
Operating segments | Financial services          
Segment Reporting Information          
Total assets 33,127   33,127   28,423
Operating segments | Homebuilding | Maracay          
Segment Reporting Information          
Total revenues 86,674 55,653 158,426 95,214  
Income (loss) before income taxes 8,042 2,986 12,604 4,176  
Operating segments | Homebuilding | Pardee Homes          
Segment Reporting Information          
Total revenues 242,282 194,699 420,684 329,562  
Income (loss) before income taxes 48,980 14,735 82,459 13,944  
Operating segments | Homebuilding | Quadrant Homes          
Segment Reporting Information          
Total revenues 37,298 71,066 81,372 114,937  
Income (loss) before income taxes 2,246 5,193 4,943 2,554  
Operating segments | Homebuilding | Trendmaker Homes          
Segment Reporting Information          
Total revenues 121,257 121,963 217,377 192,784  
Income (loss) before income taxes 10,512 6,908 15,309 5,310  
Operating segments | Homebuilding | TRI Pointe Homes          
Segment Reporting Information          
Total revenues 206,474 192,752 365,144 364,543  
Income (loss) before income taxes 15,741 12,280 20,101 22,489  
Operating segments | Homebuilding | Winchester Homes          
Segment Reporting Information          
Total revenues 73,825 61,825 120,263 95,248  
Income (loss) before income taxes 4,670 2,555 5,716 1,789  
Operating segments | Financial Services | Financial services          
Segment Reporting Information          
Income (loss) before income taxes 3,943 2,101 6,014 2,857  
Corporate          
Segment Reporting Information          
Total assets 429,512   429,512   $ 241,357
Corporate | Homebuilding          
Segment Reporting Information          
Income (loss) before income taxes $ (19,463) $ (11,364) $ (30,771) $ (17,630)  
v3.20.2
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Numerator:        
Net income $ 56,528 $ 26,262 $ 88,411 $ 26,333
Denominator:        
Basic weighted-average shares outstanding (shares) 130,292,563 142,244,166 132,326,856 142,055,766
Effect of dilutive shares:        
Stock options and unvested restricted stock units (shares) 214,004 227,025 436,919 375,959
Diluted weighted-average shares outstanding (shares) 130,506,567 142,471,191 132,763,775 142,431,725
Earnings per share        
Basic (in dollars per share) $ 0.43 $ 0.18 $ 0.67 $ 0.19
Diluted (in dollars per share) $ 0.43 $ 0.18 $ 0.67 $ 0.18
Antidilutive stock options and unvested restricted stock units not included in diluted earnings per share (shares) 3,090,298 2,920,708 2,992,479 3,144,445
v3.20.2
Receivables - Components of Receivables (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Receivables [Abstract]    
Escrow proceeds and other accounts receivable, net $ 47,836 $ 29,282
Warranty insurance receivable (Note 13) 39,744 39,994
Total receivables $ 87,580 $ 69,276
v3.20.2
Receivables - Additional Information (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Receivables [Abstract]    
Allowance for doubtful accounts $ 419 $ 426
v3.20.2
Real Estate Inventories - Summary of Real Estate Inventories (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Real estate inventories owned:    
Homes completed or under construction $ 1,039,681 $ 951,974
Land under development 1,452,440 1,641,354
Land held for future development 152,032 122,847
Model homes 286,760 275,204
Total real estate inventories owned 2,930,913 2,991,379
Real estate inventories not owned:    
Land purchase and land option deposits 81,709 74,057
Total real estate inventories not owned 81,709 74,057
Total real estate inventories $ 3,012,622 $ 3,065,436
v3.20.2
Real Estate Inventories - Summary of Interest Incurred, Capitalized and Expensed (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Real Estate [Abstract]        
Interest incurred $ 21,828 $ 21,962 $ 42,607 $ 45,335
Interest capitalized (21,828) (21,962) (42,607) (45,335)
Interest expensed 0 0 0 0
Real Estate Inventory, Capitalized Interest Costs [Roll Forward]        
Capitalized interest in beginning inventory 196,313 193,440 192,356 184,400
Interest capitalized as a cost of inventory 21,828 21,962 42,607 45,335
Interest previously capitalized as a cost of inventory, included in cost of sales (21,806) (18,107) (38,628) (32,440)
Capitalized interest in ending inventory $ 196,335 $ 197,295 $ 196,335 $ 197,295
v3.20.2
Real Estate Inventories - Schedule of Land and Lot Option Abandonments and Pre-acquisition Charges (Detail) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Real Estate [Abstract]        
Real estate inventory impairments $ 0 $ 0 $ 0 $ 0
Land and lot option abandonments and pre-acquisition charges 1,380,000 288,000 1,729,000 5,490,000
Total $ 1,380,000 $ 288,000 $ 1,729,000 $ 5,490,000
v3.20.2
Investments in Unconsolidated Entities - Additional Information (Detail)
6 Months Ended
Jun. 30, 2020
investment
Minimum  
Investment Holdings  
Ownership percentage 7.00%
Maximum  
Investment Holdings  
Ownership percentage 65.00%
Homebuilding Partnerships or Limited Liability Companies  
Investment Holdings  
Number of equity investments 6
Financial Services Limited Liability Company  
Investment Holdings  
Number of equity investments 1
v3.20.2
Investments in Unconsolidated Entities - Aggregated Assets, Liabilities and Operating Results of Entities as Equity-Method Investments (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Assets          
Cash $ 474,545   $ 474,545   $ 329,011
Receivables 87,580   87,580   69,276
Real estate inventories 3,012,622   3,012,622   3,065,436
Other assets 167,747   167,747   173,425
Total assets 3,977,904   3,977,904   3,858,690
Liabilities and equity          
Company’s equity 2,175,799   2,175,799   2,186,530
Outside interests’ equity 12   12   12
Total liabilities and equity 3,977,904   3,977,904   3,858,690
Net sales 770,106 $ 698,714 1,367,156 $ 1,193,346  
Other operations expense (624) (627) (1,248) (1,217)  
Other income, net (6,328) 153 (5,955) 6,394  
Net income 56,528 26,262 88,411 26,333  
Company’s equity in income of unconsolidated entities (25) (26) (39) (51)  
Unconsolidated          
Assets          
Cash 12,005   12,005   8,537
Receivables 2,498   2,498   7,393
Real estate inventories 198,789   198,789   116,760
Other assets 604   604   703
Total assets 213,896   213,896   133,393
Liabilities and equity          
Accounts payable and other liabilities 42,248   42,248   11,009
Company’s equity 36,040   36,040   11,745
Outside interests’ equity 135,608   135,608   110,639
Total liabilities and equity 213,896   213,896   $ 133,393
Net sales 8,726 6,353 14,696 10,464  
Other operations expense (4,400) (3,528) (8,156) (6,280)  
Other income, net (1) (7) (4) 1  
Net income 4,325 2,818 6,536 4,185  
Company’s equity in income of unconsolidated entities $ 2,907 $ 1,946 $ 4,449 $ 2,696  
v3.20.2
Variable Interest Entities - Summary of Interests in Land Option Agreements (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Variable Interest Entity    
Deposits $ 81,709 $ 74,057
Remaining Purchase Price 816,202 799,319
Consolidated Inventory Held by VIEs 0 0
Consolidated VIEs    
Variable Interest Entity    
Deposits 0 0
Remaining Purchase Price 0 0
Consolidated Inventory Held by VIEs 0 0
Unconsolidated VIEs    
Variable Interest Entity    
Deposits 39,070 42,896
Remaining Purchase Price 441,528 440,974
Other land option agreements    
Variable Interest Entity    
Deposits 42,639 31,161
Remaining Purchase Price $ 374,674 $ 358,345
v3.20.2
Variable Interest Entities - Additional Information (Detail) - USD ($)
$ in Millions
Jun. 30, 2020
Dec. 31, 2019
Other land option agreements    
Variable Interest Entity    
Capitalized pre-acquisition costs $ 7.9 $ 6.0
v3.20.2
Goodwill and Other Intangible Assets - Additional Information (Detail)
$ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2020
USD ($)
asset
Jun. 30, 2019
USD ($)
Jun. 30, 2020
USD ($)
asset
Jun. 30, 2019
USD ($)
Dec. 31, 2019
USD ($)
Schedule Of Intangible Assets And Goodwill          
Goodwill $ 139,304   $ 139,304   $ 139,304
Number of intangible assets | asset 2   2    
Net carrying amount of intangible asset $ 3,022   $ 3,022   $ 3,300
Trade Names          
Schedule Of Intangible Assets And Goodwill          
Indefinite life intangible asset 17,300   $ 17,300    
Trade Names          
Schedule Of Intangible Assets And Goodwill          
Remaining useful life of amortizing asset     5 years 8 months 12 days   6 years 2 months 12 days
Amortization expense $ 134 $ 134 $ 267 $ 267  
Maracay          
Schedule Of Intangible Assets And Goodwill          
Intangible assets useful life     20 years    
v3.20.2
Goodwill and Other Intangible Assets - Schedule of Goodwill and Other Intangible Assets (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]    
Goodwill $ 139,304 $ 139,304
Trade names, Gross Carrying Amount 27,979 27,979
Gross Carrying Amount 167,283 167,283
Accumulated Amortization (7,657) (7,390)
Trade names, Net Carrying Amount 20,322 20,589
Net Carrying Amount $ 159,626 $ 159,893
v3.20.2
Goodwill and Other Intangible Assets - Schedule of Expected Amortization of Intangible Asset (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity    
Remainder of 2020 $ 267  
2021 534  
2022 534  
2023 534  
2024 534  
Thereafter 619  
Total $ 3,022 $ 3,300
v3.20.2
Other Assets - Schedule of Other Assets (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Prepaid expenses $ 21,273 $ 24,070
Refundable fees and other deposits 29,785 30,242
Development rights, held for future use or sale 2,063 2,213
Deferred loan costs—loans payable 3,709 4,345
Operating properties and equipment, net 58,155 57,803
Lease right-of-use assets 49,506 50,947
Other 3,256 3,805
Total $ 167,747 $ 173,425
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] us-gaap:OtherAssets  
v3.20.2
Accrued Expenses and Other Liabilities - Schedule of Accrued Expenses and Other Liabilities (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Payables and Accruals [Abstract]            
Accrued payroll and related costs $ 25,015   $ 42,798      
Warranty reserves (Note 13) 79,190 $ 76,487 76,607 $ 71,471 $ 70,947 $ 71,836
Estimated cost for completion of real estate inventories 78,601   90,899      
Customer deposits 29,925   20,390      
Income tax liability to Weyerhaeuser 346   346      
Accrued income taxes payable 18,605   1,530      
Liability for uncertain tax positions (Note 15) 486   486      
Accrued interest 6,886   11,952      
Other tax liability 7,665   8,448      
Lease liabilities 54,395   56,125      
Other 13,704   12,462      
Total $ 314,818   $ 322,043      
Operating Lease, Liability, Statement of Financial Position [Extensible List] us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent          
v3.20.2
Senior Notes and Loans Payable - Schedule of Senior Notes (Detail) - Senior Notes - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Jun. 30, 2017
May 31, 2016
Debt Instrument        
Discount and deferred loan costs $ (17,545) $ (16,015)    
Total 1,166,189 1,033,985    
4.875% Senior Notes due July 1, 2021        
Debt Instrument        
Senior notes (gross) $ 83,734 300,000    
Interest rate on senior note (percent) 4.875%     4.875%
5.875% Senior Notes due June 15, 2024        
Debt Instrument        
Senior notes (gross) $ 450,000 450,000    
Interest rate on senior note (percent) 5.875%      
5.250% Senior Notes due June 1, 2027        
Debt Instrument        
Senior notes (gross) $ 300,000 300,000    
Interest rate on senior note (percent) 5.25%   5.25%  
5.700% Senior Notes due June 15, 2028        
Debt Instrument        
Senior notes (gross) $ 350,000 $ 0    
Interest rate on senior note (percent) 5.70%      
v3.20.2
Senior Notes and Loans Payable - Additional Information (Detail) - USD ($)
1 Months Ended 3 Months Ended 6 Months Ended
Jun. 03, 2020
Mar. 29, 2019
Jul. 23, 2020
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2017
May 31, 2016
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Debt Instrument                        
Repayments of debt                   $ 721,673,000 $ 381,895,000  
Capitalization of deferred finance costs       $ 3,709,000       $ 3,709,000   3,709,000   $ 4,345,000
Accrued interest       6,886,000       6,886,000   6,886,000   11,952,000
Loans payable       $ 250,000,000       250,000,000   250,000,000   250,000,000
Interest incurred               21,828,000 $ 21,962,000 42,607,000 45,335,000  
Amortization of deferred financing costs               $ 1,200,000 $ 1,900,000 $ 2,400,000 $ 3,800,000  
The Facility                        
Debt Instrument                        
Maximum borrowing capacity under facility   $ 1,000,000,000                    
Consolidated tangible net worth attributed to Company required under covenants (percent)       97.00%       97.00%   97.00%    
Unsecured revolving credit facility | The Revolving Facility                        
Debt Instrument                        
Capitalization of deferred finance costs       $ 3,700,000       $ 3,700,000   $ 3,700,000    
Accrued interest       488,000       488,000   488,000   1,200,000
Borrowing capacity of credit facility   $ 600,000,000                    
Available secured revolving credit facility       559,400,000       559,400,000   559,400,000    
Unsecured revolving credit facility | The Revolving Facility | Minimum                        
Debt Instrument                        
Debt instrument variable interest rate (percent)   1.25%                    
Unsecured revolving credit facility | The Revolving Facility | Maximum                        
Debt Instrument                        
Debt instrument variable interest rate (percent)   2.00%                    
Unsecured revolving credit facility | Letters of credit                        
Debt Instrument                        
Maximum borrowing capacity under facility   $ 75,000,000                    
Outstanding letters of credit       40,600,000       40,600,000   40,600,000   32,600,000
Term Loan | Term loan facility                        
Debt Instrument                        
Borrowing capacity of credit facility   $ 250,000,000   250,000,000       250,000,000   250,000,000    
Expected draw from the Term Facility         $ 250,000,000              
Loans payable       $ 250,000,000       $ 250,000,000   $ 250,000,000   250,000,000
Interest rate of outstanding debt (percent)       1.52%       1.52%   1.52%    
Term Loan | Term loan facility | Minimum                        
Debt Instrument                        
Debt instrument variable interest rate (percent)   1.10%                    
Term Loan | Term loan facility | Maximum                        
Debt Instrument                        
Debt instrument variable interest rate (percent)   1.85%                    
Senior Notes                        
Debt Instrument                        
Capitalization of deferred finance costs       $ 13,600,000       $ 13,600,000   $ 13,600,000   11,100,000
Accrued interest       5,600,000       5,600,000   5,600,000   9,800,000
Senior Notes | 5.700% Senior Notes due June 15, 2028                        
Debt Instrument                        
Aggregate principal amount       $ 350,000,000       $ 350,000,000   $ 350,000,000    
Interest rate on debt instrument (percent)       5.70%       5.70%   5.70%    
Debt issuance, percentage of aggregate principal (percent)       100.00%                
Proceeds from issuance of senior notes, net       $ 345,200,000                
Senior notes (gross)       $ 350,000,000       $ 350,000,000   $ 350,000,000   0
Senior Notes | 5.250% Senior Notes due June 1, 2027                        
Debt Instrument                        
Aggregate principal amount           $ 300,000,000            
Interest rate on debt instrument (percent)       5.25%   5.25%   5.25%   5.25%    
Debt issuance, percentage of aggregate principal (percent)           100.00%            
Proceeds from issuance of senior notes, net           $ 296,300,000            
Senior notes (gross)       $ 300,000,000       $ 300,000,000   $ 300,000,000   300,000,000
Senior Notes | 4.875% Senior Notes due July 1, 2021                        
Debt Instrument                        
Aggregate principal amount             $ 300,000,000          
Interest rate on debt instrument (percent)       4.875%     4.875% 4.875%   4.875%    
Debt issuance, percentage of aggregate principal (percent)             99.44%          
Proceeds from issuance of senior notes, net $ 216,300,000           $ 293,900,000          
Debt instrument, tender offer price (per thousand dollars)       $ 1,025       $ 1,025   $ 1,025    
Percentage of principal outstanding (percent)       72.00%       72.00%   72.00%    
Senior notes (gross)       $ 83,734,000       $ 83,734,000   $ 83,734,000   300,000,000
Senior Notes | 4.875% Senior Notes due July 1, 2021 | Subsequent Event                        
Debt Instrument                        
Repayments of debt     $ 83,700,000                  
Senior Notes | 5.875% Senior Notes due June 15, 2024                        
Debt Instrument                        
Aggregate principal amount       $ 450,000,000       $ 450,000,000   $ 450,000,000    
Interest rate on debt instrument (percent)       5.875%       5.875%   5.875%    
Debt issuance, percentage of aggregate principal (percent)                   98.15%    
Proceeds from issuance of senior notes, net                   $ 429,000,000.0    
Senior notes (gross)       $ 450,000,000       $ 450,000,000   $ 450,000,000   $ 450,000,000
Senior Notes | 4.375% Senior notes due June 15, 2019                        
Debt Instrument                        
Interest rate on debt instrument (percent)   4.375%                    
v3.20.2
Senior Notes and Loans Payable - Schedule of Outstanding Loans Payable (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Line of Credit Facility    
Loans payable $ 250,000 $ 250,000
Term Loan | Term loan facility    
Line of Credit Facility    
Loans payable $ 250,000 $ 250,000
v3.20.2
Fair Value Disclosures - Summary of Assets and Liabilities Related to Financial Instruments, Measured at Fair Value on a Recurring Basis (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis    
Deferred loan costs—loans payable $ 3,709 $ 4,345
Senior Notes    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis    
Deferred loan costs—loans payable 13,600 11,100
Level 2 | Recurring | The Term Facility | Book Value    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis    
Financial instruments 250,000 250,000
Level 2 | Recurring | The Term Facility | Fair Value    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis    
Financial instruments 250,000 250,000
Level 2 | Recurring | Senior Notes | Book Value    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis    
Financial instruments 1,179,783 1,045,072
Level 2 | Recurring | Senior Notes | Fair Value    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis    
Financial instruments $ 1,195,826 $ 1,104,750
v3.20.2
Commitments and Contingencies - Additional Information (Detail)
$ in Thousands
12 Months Ended
Dec. 31, 1987
lease_extension
lease
lease_renewal
Jun. 30, 2020
USD ($)
Dec. 31, 2019
USD ($)
Commitment And Contingencies      
Legal reserves   $ 319 $ 419
Outstanding warranty insurance receivables   39,744 39,994
Estimated remaining liabilities related to surety bonds   $ 13,704 12,462
Office Leases      
Commitment And Contingencies      
Lease obligation original term   10 years  
Equipment Leases | Minimum      
Commitment And Contingencies      
Lease obligation original term   3 years  
Equipment Leases | Maximum      
Commitment And Contingencies      
Lease obligation original term   4 years  
Ground lease      
Commitment And Contingencies      
Lease obligation original term 55 years    
Number of properties subject to ground leases | lease 2    
Ground lease | Ten Year Renewal Option      
Commitment And Contingencies      
Number of lease extensions | lease_renewal 3    
Term of lease extension 10 years    
Ground lease | Forty-five Year Renewal Option      
Commitment And Contingencies      
Lease obligation original term 45 years    
Number of properties subject to ground leases | lease 1    
Ground lease | Extension Through 2071      
Commitment And Contingencies      
Number of ground leases extended | lease_extension 1    
Surety bonds      
Commitment And Contingencies      
Outstanding surety bonds   $ 614,200 611,600
Estimated remaining liabilities related to surety bonds   $ 390,800 $ 382,300
v3.20.2
Commitments and Contingencies - Schedule of Warranty Reserves (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Movement in Standard Product Warranty Accrual        
Warranty reserves, beginning of period $ 76,487 $ 70,947 $ 76,607 $ 71,836
Warranty reserves accrued 6,988 6,385 12,144 10,655
Warranty expenditures (4,285) (5,861) (9,561) (11,020)
Warranty reserves, end of period $ 79,190 $ 71,471 $ 79,190 $ 71,471
v3.20.2
Commitments and Contingencies - Schedule of Lease Costs and Other Information (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Lessee, Lease, Description          
Net lease cost $ 2,432 $ 2,156 $ 4,776 $ 4,192  
Right-of-use assets obtained in exchange for new operating lease liabilities 1,135 346 1,155 2,053  
Operating Leases          
Lessee, Lease, Description          
Lease cost 2,456 2,166 4,794 4,210  
Sublease income, ground leases (included in other operations revenue) 0 0 0 0  
Cash paid for amounts included in the measurement of lease liabilities $ 2,220 1,641 $ 4,234 3,250  
Weighted-average discount rate (percent) 5.90%   5.90%   5.90%
Weighted-average remaining lease term (in years): 5 years 9 months 18 days   5 years 9 months 18 days   6 years 1 month 6 days
Ground lease          
Lessee, Lease, Description          
Lease cost $ 624 627 $ 1,248 1,217  
Sublease income, ground leases (included in other operations revenue) (648) (637) (1,266) (1,235)  
Cash paid for amounts included in the measurement of lease liabilities $ 624 $ 609 $ 1,248 $ 1,217  
Weighted-average discount rate (percent) 10.20%   10.20%   10.20%
Weighted-average remaining lease term (in years): 47 years 6 months   47 years 6 months   48 years 1 month 6 days
v3.20.2
Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Lessee, Lease, Description    
Present value of operating lease liabilities $ 54,395 $ 56,125
Operating Leases    
Lessee, Lease, Description    
Remaining in 2020 4,460  
2021 7,855  
2022 5,610  
2023 4,503  
2024 2,779  
Thereafter 6,410  
Total lease payments 31,617  
Less: Interest 4,762  
Present value of operating lease liabilities 26,855  
Ground lease    
Lessee, Lease, Description    
Remaining in 2020 1,535  
2021 3,070  
2022 3,070  
2023 3,070  
2024 3,070  
Thereafter 83,515  
Total lease payments 97,330  
Less: Interest 69,790  
Present value of operating lease liabilities 27,540  
Future expected payments to be received under sublease $ 65,500  
v3.20.2
Stock-Based Compensation - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
6 Months Ended
Apr. 27, 2020
Mar. 09, 2020
Feb. 20, 2020
May 06, 2019
Mar. 11, 2019
Mar. 11, 2019
Feb. 28, 2019
Jun. 30, 2020
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award                  
Unrecognized stock based compensation related to all stock-based awards               $ 24.7  
Weighted average period, expense to recognize               2 years 1 month 6 days  
Restricted Stock Units (RSUs)                  
Share-based Compensation Arrangement by Share-based Payment Award                  
Restricted stock units, granted (shares)               1,458,633  
Granted (in dollars per share)               $ 18.45  
Fair value of RSUs (in dollars per share)               $ 15.30 $ 12.39
Restricted Stock Units (RSUs) | Time-vested RSUs                  
Share-based Compensation Arrangement by Share-based Payment Award                  
Vesting rights (percent)             30.00%    
Restricted Stock Units (RSUs) | Performance-based RSUs                  
Share-based Compensation Arrangement by Share-based Payment Award                  
Vesting rights (percent)             70.00%    
Restricted Stock Units (RSUs) | Performance-based RSUs | Minimum                  
Share-based Compensation Arrangement by Share-based Payment Award                  
Vesting rights (percent)             0.00%    
Restricted Stock Units (RSUs) | Performance-based RSUs | Maximum                  
Share-based Compensation Arrangement by Share-based Payment Award                  
Vesting rights (percent)             100.00%    
Restricted Stock Units (RSUs) | Officers                  
Share-based Compensation Arrangement by Share-based Payment Award                  
Restricted stock units, granted (shares)     547,166            
Potential change in TSR (percent)     25.00%            
Granted (in dollars per share)     $ 19.36            
Restricted Stock Units (RSUs) | Officers | Minimum                  
Share-based Compensation Arrangement by Share-based Payment Award                  
Vesting rights (percent)     0.00%            
Restricted Stock Units (RSUs) | Officers | Maximum                  
Share-based Compensation Arrangement by Share-based Payment Award                  
Vesting rights (percent)     100.00%            
Restricted Stock Units (RSUs) | Officers | Homebuilding revenue                  
Share-based Compensation Arrangement by Share-based Payment Award                  
Performance percentage (percent)     50.00%            
Restricted Stock Units (RSUs) | Officers | Pre-tax earnings                  
Share-based Compensation Arrangement by Share-based Payment Award                  
Performance percentage (percent)     50.00%            
Restricted Stock Units (RSUs) | President                  
Share-based Compensation Arrangement by Share-based Payment Award                  
Restricted stock units, granted (shares)     207,300       238,095    
Granted (in dollars per share)     $ 18.39            
Restricted Stock Units (RSUs) | President | Minimum                  
Share-based Compensation Arrangement by Share-based Payment Award                  
Vesting rights (percent)     0.00%            
Restricted Stock Units (RSUs) | President | Maximum                  
Share-based Compensation Arrangement by Share-based Payment Award                  
Vesting rights (percent)     100.00%            
Restricted Stock Units (RSUs) | President | Homebuilding revenue                  
Share-based Compensation Arrangement by Share-based Payment Award                  
Performance percentage (percent)     50.00%            
Restricted Stock Units (RSUs) | President | Pre-tax earnings                  
Share-based Compensation Arrangement by Share-based Payment Award                  
Performance percentage (percent)     50.00%            
Restricted Stock Units (RSUs) | Employees and Officers                  
Share-based Compensation Arrangement by Share-based Payment Award                  
Restricted stock units, granted (shares)   17,692 639,395            
Closing stock price on date of grant (in dollars per share)   $ 14.13 $ 18.39            
Restricted Stock Units (RSUs) | Employees and Officers | Time-vested RSUs                  
Share-based Compensation Arrangement by Share-based Payment Award                  
Restricted stock units, granted (shares)         3,025   990,723    
Closing stock price on date of grant (in dollars per share)         $ 13.22 $ 13.22 $ 12.60    
Share-based compensation arrangement by share-based payment award, award vesting period           3 years      
Restricted Stock Units (RSUs) | Non-employee Members on Board of Directors                  
Share-based Compensation Arrangement by Share-based Payment Award                  
Restricted stock units, granted (shares) 47,080     61,488          
Granted (in dollars per share) $ 10.62                
Restricted Stock Units (RSUs) | Certain employees                  
Share-based Compensation Arrangement by Share-based Payment Award                  
Restricted stock units, granted (shares)       1,098          
Restricted Stock Units (RSUs) | Certain Employees and Directors                  
Share-based Compensation Arrangement by Share-based Payment Award                  
Closing stock price on date of grant (in dollars per share)       $ 13.66          
Share-based compensation arrangement by share-based payment award, award vesting period       3 years          
Restricted Stock Units (RSUs) | Chief Executive Officer                  
Share-based Compensation Arrangement by Share-based Payment Award                  
Restricted stock units, granted (shares)             247,619    
Restricted Stock Units (RSUs) | Chief Financial Officer                  
Share-based Compensation Arrangement by Share-based Payment Award                  
Restricted stock units, granted (shares)             114,285    
Restricted Stock Units (RSUs) | Employees Officers And Directors | Performance-based RSUs                  
Share-based Compensation Arrangement by Share-based Payment Award                  
Closing stock price on date of grant (in dollars per share)             $ 12.60    
Fair value of RSUs (in dollars per share)             $ 8.16    
2013 Incentive Plan                  
Share-based Compensation Arrangement by Share-based Payment Award                  
Common stock (shares)               11,727,833  
Shares available for future grant (shares)               5,468,092  
v3.20.2
Stock-Based Compensation - Summary of Compensation Expense Recognized Related to all Stock-Based Awards (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Share-based Payment Arrangement [Abstract]        
Total stock-based compensation $ 3,786 $ 3,351 $ 7,411 $ 6,786
v3.20.2
Stock-Based Compensation - Summary of Stock Option Awards (Detail) - Employee Stock Option - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 6 Months Ended
Mar. 31, 2020
Jun. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding    
Beginning balance (shares) 891,343 891,343
Granted (shares)   0
Exercised (shares)   (78,506)
Forfeited (shares)   (8,257)
Ending balance (shares)   804,580
Options exercisable at end of period (shares)   804,580
Weighted Average Exercise Price Per Share    
Beginning balance (in dollars per share) $ 15.03 $ 15.03
Granted (in dollars per share)   0
Exercised (in dollars per share)   11.94
Forfeited (in dollars per share)   14.37
Ending balance (in dollars per share)   15.34
Exercisable at end of period (in dollars per share)   $ 15.34
Weighted average contractual life 3 years 4 months 24 days 3 years
Weighted average options exercisable   3 years
Aggregate intrinsic value, Beginning balance $ 994 $ 994
Aggregate intrinsic value, Ending balance   247
Aggregate intrinsic value, Exercisable at end of period   $ 247
v3.20.2
Stock-Based Compensation - Summary of Restricted Stock Units (Detail) - Restricted Stock Units (RSUs)
$ / shares in Units, $ in Thousands
6 Months Ended
Jun. 30, 2020
USD ($)
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares  
Nonvested RSU's beginning balance (shares) | shares 3,384,351
Granted (shares) | shares 1,458,633
Vested (shares) | shares (990,929)
Forfeited (shares) | shares (744,904)
Nonvested RSU's ending balance (shares) | shares 3,107,151
Weighted Average Grant Date Fair Value Per Share  
Beginning balance (in dollars per share) | $ / shares $ 12.39
Granted (in dollars per share) | $ / shares 18.45
Vested (in dollars per share) | $ / shares 13.36
Forfeited (in dollars per share) | $ / shares 10.81
Ending balance (in dollars per share) | $ / shares $ 15.30
Aggregate intrinsic value, Beginning balance | $ $ 52,694
Aggregate intrinsic value, Granted | $ 0
Aggregate intrinsic value, Ending balance | $ $ 43,997
v3.20.2
Income Taxes - Additional Information (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Mar. 31, 2019
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Income Tax Contingency            
Deferred tax assets, net $ 39,744     $ 39,744   $ 49,904
Valuation allowance related to net deferred tax assets 3,500     3,500   3,500
Other (expense) income, net (6,328) $ 153   (5,955) $ 6,394  
Provision for income taxes 18,143 $ 9,132   27,964 $ 9,156  
Liability for uncertain tax positions 486     486   486
Weyerhaeuser            
Income Tax Contingency            
Other (expense) income, net     $ 6,000      
Accrued Expenses And Other Liabilities | Weyerhaeuser            
Income Tax Contingency            
Income tax liability $ 346     $ 346   $ 346
v3.20.2
Related Party Transactions - Additional Information (Detail) - USD ($)
6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Related Party Transactions [Abstract]    
Related party transactions $ 0 $ 0
v3.20.2
Supplemental Disclosure to Consolidated Statements of Cash Flows (Detail) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Supplemental disclosure of cash flow information:    
Interest paid (capitalized), net $ (1,191) $ 3,104
Income taxes paid (refunded), net (12) 10,601
Supplemental disclosures of noncash activities:    
Amortization of senior note discount capitalized to real estate inventory 579 981
Amortization of deferred loan costs capitalized to real estate inventory $ 1,844 $ 2,826
v3.20.2
Supplemental Guarantor Information - Condensed Consolidating Balance Sheet (Detail) - USD ($)
$ in Thousands
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Assets            
Cash and cash equivalents $ 474,545   $ 329,011      
Receivables 87,580   69,276      
Intercompany receivables 0   0      
Real estate inventories 3,012,622   3,065,436      
Investments in unconsolidated entities 36,040   11,745      
Goodwill and other intangible assets, net 159,626   159,893      
Investments in subsidiaries 0   0      
Deferred tax assets, net 39,744   49,904      
Other assets 167,747   173,425      
Total assets 3,977,904   3,858,690      
Liabilities            
Accounts payable 71,086   66,120      
Intercompany payables 0   0      
Accrued expenses and other liabilities 314,818   322,043      
Loans payable 250,000   250,000      
Senior notes 1,166,189   1,033,985      
Total liabilities 1,802,093   1,672,148      
Equity            
Total stockholders’ equity 2,175,799   2,186,530      
Noncontrolling interests 12   12      
Total equity 2,175,811 $ 2,115,293 2,186,542 $ 2,086,643 $ 2,057,036 $ 2,056,937
Total liabilities and equity 3,977,904   3,858,690      
Reporting Entity | Issuer            
Assets            
Cash and cash equivalents 393,481   186,200      
Receivables 27,555   26,016      
Intercompany receivables 421,075   576,846      
Real estate inventories 699,708   737,662      
Investments in unconsolidated entities 0   0      
Goodwill and other intangible assets, net 156,604   156,604      
Investments in subsidiaries 1,968,697   1,870,885      
Deferred tax assets, net 9,021   9,020      
Other assets 5,192   14,676      
Total assets 3,681,333   3,577,909      
Liabilities            
Accounts payable 16,911   14,915      
Intercompany payables 0   0      
Accrued expenses and other liabilities 72,434   92,479      
Loans payable 250,000   250,000      
Senior notes 1,166,189   1,033,985      
Total liabilities 1,505,534   1,391,379      
Equity            
Total stockholders’ equity 2,175,799   2,186,530      
Noncontrolling interests 0   0      
Total equity 2,175,799   2,186,530      
Total liabilities and equity 3,681,333   3,577,909      
Reporting Entity | Guarantor Subsidiaries            
Assets            
Cash and cash equivalents 81,064   142,811      
Receivables 60,025   43,260      
Intercompany receivables 0   0      
Real estate inventories 2,312,914   2,327,774      
Investments in unconsolidated entities 36,040   11,745      
Goodwill and other intangible assets, net 3,022   3,289      
Investments in subsidiaries 0   0      
Deferred tax assets, net 30,723   40,884      
Other assets 162,555   158,749      
Total assets 2,686,343   2,728,512      
Liabilities            
Accounts payable 54,175   51,205      
Intercompany payables 421,075   576,846      
Accrued expenses and other liabilities 242,384   229,564      
Loans payable 0   0      
Senior notes 0   0      
Total liabilities 717,634   857,615      
Equity            
Total stockholders’ equity 1,968,697   1,870,885      
Noncontrolling interests 12   12      
Total equity 1,968,709   1,870,897      
Total liabilities and equity 2,686,343   2,728,512      
Consolidating Adjustments            
Assets            
Cash and cash equivalents 0   0      
Receivables 0   0      
Intercompany receivables (421,075)   (576,846)      
Real estate inventories 0   0      
Investments in unconsolidated entities 0   0      
Goodwill and other intangible assets, net 0   0      
Investments in subsidiaries (1,968,697)   (1,870,885)      
Deferred tax assets, net 0   0      
Other assets 0   0      
Total assets (2,389,772)   (2,447,731)      
Liabilities            
Accounts payable 0   0      
Intercompany payables (421,075)   (576,846)      
Accrued expenses and other liabilities 0   0      
Loans payable 0   0      
Senior notes 0   0      
Total liabilities (421,075)   (576,846)      
Equity            
Total stockholders’ equity (1,968,697)   (1,870,885)      
Noncontrolling interests 0   0      
Total equity (1,968,697)   (1,870,885)      
Total liabilities and equity $ (2,389,772)   $ (2,447,731)      
v3.20.2
Supplemental Guarantor Information - Condensed Consolidating Statement of Operations (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Condensed Financial Statements, Captions        
Other operations revenue $ 648 $ 637 $ 1,266 $ 1,235
Total revenues 770,106 698,714 1,367,156 1,193,346
Other operations expense 624 627 1,248 1,217
Sales and marketing 45,194 47,065 87,831 86,054
General and administrative 37,554 36,854 77,391 75,451
Restructuring charges 5,549 0 5,549 0
Homebuilding income from operations 77,081 33,166 116,355 26,289
Equity in loss of unconsolidated entities (25) (26) (39) (51)
Other income, net (6,328) 153 (5,955) 6,394
Homebuilding income before income taxes 70,728 33,293 110,361 32,632
Equity in income of unconsolidated entities 2,932 1,972 4,488 2,747
Financial services income before income taxes 3,943 2,101 6,014 2,857
Income before income taxes 74,671 35,394 116,375 35,489
Equity of net income of subsidiaries 0 0 0 0
Provision for income taxes (18,143) (9,132) (27,964) (9,156)
Net income 56,528 26,262 88,411 26,333
Reporting Entity | Issuer        
Condensed Financial Statements, Captions        
Other operations expense 0 0 0 0
Sales and marketing 10,667 9,961 21,102 19,260
General and administrative 19,875 18,391 39,218 37,870
Restructuring charges 1,111   1,111  
Homebuilding income from operations 2,734 1,044 (4,274) (1,018)
Equity in loss of unconsolidated entities 0 0 0 0
Other income, net (6,320) 8 (6,128) 6,148
Homebuilding income before income taxes (3,586) 1,052 (10,402) 5,130
Equity in income of unconsolidated entities 0 0 0 0
Financial services income before income taxes 0 0 0 0
Income before income taxes (3,586) 1,052 (10,402) 5,130
Equity of net income of subsidiaries 60,114 25,215 98,813 21,208
Provision for income taxes 0 (5) 0 (5)
Net income 56,528 26,262 88,411 26,333
Reporting Entity | Guarantor Subsidiaries        
Condensed Financial Statements, Captions        
Other operations expense 624 627 1,248 1,217
Sales and marketing 34,527 37,104 66,729 66,794
General and administrative 17,679 18,463 38,173 37,581
Restructuring charges 4,438   4,438  
Homebuilding income from operations 74,347 32,122 120,629 27,307
Equity in loss of unconsolidated entities (25) (26) (39) (51)
Other income, net (8) 145 173 246
Homebuilding income before income taxes 74,314 32,241 120,763 27,502
Equity in income of unconsolidated entities 2,932 1,972 4,488 2,747
Financial services income before income taxes 3,943 2,101 6,014 2,857
Income before income taxes 78,257 34,342 126,777 30,359
Equity of net income of subsidiaries 0 0 0 0
Provision for income taxes (18,143) (9,127) (27,964) (9,151)
Net income 60,114 25,215 98,813 21,208
Consolidating Adjustments        
Condensed Financial Statements, Captions        
Other operations expense 0 0 0 0
Sales and marketing 0 0 0 0
General and administrative 0 0 0 0
Restructuring charges 0   0  
Homebuilding income from operations 0 0 0 0
Equity in loss of unconsolidated entities 0 0 0 0
Other income, net 0 0 0 0
Homebuilding income before income taxes 0 0 0 0
Equity in income of unconsolidated entities 0 0 0 0
Financial services income before income taxes 0 0 0 0
Income before income taxes 0 0 0 0
Equity of net income of subsidiaries (60,114) (25,215) (98,813) (21,208)
Provision for income taxes 0 0 0 0
Net income (60,114) (25,215) (98,813) (21,208)
Homebuilding        
Condensed Financial Statements, Captions        
Total revenues 767,810 697,958 1,363,266 1,192,288
Homebuilding | Reporting Entity | Issuer        
Condensed Financial Statements, Captions        
Total revenues 206,473 192,752 365,143 364,543
Homebuilding | Reporting Entity | Guarantor Subsidiaries        
Condensed Financial Statements, Captions        
Total revenues 561,337 505,206 998,123 827,745
Homebuilding | Consolidating Adjustments        
Condensed Financial Statements, Captions        
Total revenues 0 0 0 0
Home sales        
Condensed Financial Statements, Captions        
Home sales and Land and lot sales revenue 766,942 692,138 1,361,780 1,184,841
Cost of sales and expenses 601,434 574,684 1,074,316 996,220
Home sales | Reporting Entity | Issuer        
Condensed Financial Statements, Captions        
Home sales and Land and lot sales revenue 206,473 192,752 365,143 364,543
Cost of sales and expenses 172,086 163,356 307,986 308,431
Home sales | Reporting Entity | Guarantor Subsidiaries        
Condensed Financial Statements, Captions        
Home sales and Land and lot sales revenue 560,469 499,386 996,637 820,298
Cost of sales and expenses 429,348 411,328 766,330 687,789
Home sales | Consolidating Adjustments        
Condensed Financial Statements, Captions        
Home sales and Land and lot sales revenue 0 0 0 0
Cost of sales and expenses 0 0 0 0
Land and lots        
Condensed Financial Statements, Captions        
Home sales and Land and lot sales revenue 220 5,183 220 6,212
Cost of sales and expenses 374 5,562 576 7,057
Land and lots | Reporting Entity | Issuer        
Condensed Financial Statements, Captions        
Home sales and Land and lot sales revenue 0 0 0 0
Cost of sales and expenses 0 0 0 0
Land and lots | Reporting Entity | Guarantor Subsidiaries        
Condensed Financial Statements, Captions        
Home sales and Land and lot sales revenue 220 5,183 220 6,212
Cost of sales and expenses 374 5,562 576 7,057
Land and lots | Consolidating Adjustments        
Condensed Financial Statements, Captions        
Home sales and Land and lot sales revenue 0 0 0 0
Cost of sales and expenses 0 0 0 0
Other operations        
Condensed Financial Statements, Captions        
Other operations revenue 648 637 1,266 1,235
Other operations | Reporting Entity | Issuer        
Condensed Financial Statements, Captions        
Other operations revenue 0 0 0 0
Other operations | Reporting Entity | Guarantor Subsidiaries        
Condensed Financial Statements, Captions        
Other operations revenue 648 637 1,266 1,235
Other operations | Consolidating Adjustments        
Condensed Financial Statements, Captions        
Other operations revenue 0 0 0 0
Financial Services        
Condensed Financial Statements, Captions        
Home sales and Land and lot sales revenue 2,296 756 3,890 1,058
Total revenues 2,296 756 3,890 1,058
Cost of sales and expenses 1,285 627 2,364 948
Financial Services | Reporting Entity | Issuer        
Condensed Financial Statements, Captions        
Home sales and Land and lot sales revenue 0 0 0 0
Cost of sales and expenses 0 0 0 0
Financial Services | Reporting Entity | Guarantor Subsidiaries        
Condensed Financial Statements, Captions        
Home sales and Land and lot sales revenue 2,296 756 3,890 1,058
Cost of sales and expenses 1,285 627 2,364 948
Financial Services | Consolidating Adjustments        
Condensed Financial Statements, Captions        
Home sales and Land and lot sales revenue 0 0 0 0
Cost of sales and expenses $ 0 $ 0 $ 0 $ 0
v3.20.2
Supplemental Guarantor Information - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Cash flows from operating activities:    
Net cash provided by operating activities $ 166,228 $ (103,939)
Cash flows from investing activities:    
Purchases of property and equipment (12,002) (13,142)
Proceeds from sale of property and equipment 17 46
Investments in unconsolidated entities (25,715) (712)
Intercompany 0 0
Net cash used in investing activities (37,700) (13,808)
Cash flows from financing activities:    
Borrowings from debt 850,000 400,000
Repayment of debt (721,673) (381,895)
Debt issuance costs (4,768) (3,125)
Proceeds from issuance of common stock under share-based awards 921 199
Minimum tax withholding paid on behalf of employees for share-based awards (5,473) (3,612)
Share repurchases (102,001) 0
Intercompany 0 0
Net cash provided by financing activities 17,006 11,567
Net increase (decrease) in cash and cash equivalents 145,534 (106,180)
Cash and cash equivalents–beginning of period 329,011 277,696
Cash and cash equivalents–end of period 474,545 171,516
Reporting Entity | Issuer    
Cash flows from operating activities:    
Net cash provided by operating activities 36,321 32,114
Cash flows from investing activities:    
Purchases of property and equipment (4,162) (4,532)
Proceeds from sale of property and equipment 0 0
Investments in unconsolidated entities 0 0
Intercompany 158,116 (133,658)
Net cash used in investing activities 153,954 (138,190)
Cash flows from financing activities:    
Borrowings from debt 850,000 400,000
Repayment of debt (721,673) (381,895)
Debt issuance costs (4,768) (3,125)
Proceeds from issuance of common stock under share-based awards 921 199
Minimum tax withholding paid on behalf of employees for share-based awards (5,473) (3,612)
Share repurchases (102,001)  
Intercompany 0 0
Net cash provided by financing activities 17,006 11,567
Net increase (decrease) in cash and cash equivalents 207,281 (94,509)
Cash and cash equivalents–beginning of period 186,200 148,129
Cash and cash equivalents–end of period 393,481 53,620
Reporting Entity | Guarantor Subsidiaries    
Cash flows from operating activities:    
Net cash provided by operating activities 129,907 (136,053)
Cash flows from investing activities:    
Purchases of property and equipment (7,840) (8,610)
Proceeds from sale of property and equipment 17 46
Investments in unconsolidated entities (25,715) (712)
Intercompany 0 0
Net cash used in investing activities (33,538) (9,276)
Cash flows from financing activities:    
Borrowings from debt 0 0
Repayment of debt 0 0
Debt issuance costs 0 0
Proceeds from issuance of common stock under share-based awards 0 0
Minimum tax withholding paid on behalf of employees for share-based awards 0 0
Share repurchases 0  
Intercompany (158,116) 133,658
Net cash provided by financing activities (158,116) 133,658
Net increase (decrease) in cash and cash equivalents (61,747) (11,671)
Cash and cash equivalents–beginning of period 142,811 129,567
Cash and cash equivalents–end of period 81,064 117,896
Consolidating Adjustments    
Cash flows from operating activities:    
Net cash provided by operating activities 0 0
Cash flows from investing activities:    
Purchases of property and equipment 0 0
Proceeds from sale of property and equipment 0 0
Investments in unconsolidated entities 0 0
Intercompany (158,116) 133,658
Net cash used in investing activities (158,116) 133,658
Cash flows from financing activities:    
Borrowings from debt 0 0
Repayment of debt 0 0
Debt issuance costs 0 0
Proceeds from issuance of common stock under share-based awards 0 0
Minimum tax withholding paid on behalf of employees for share-based awards 0 0
Share repurchases 0  
Intercompany 158,116 (133,658)
Net cash provided by financing activities 158,116 (133,658)
Net increase (decrease) in cash and cash equivalents 0 0
Cash and cash equivalents–beginning of period 0 0
Cash and cash equivalents–end of period $ 0 $ 0