TRI POINTE GROUP, INC., 10-Q filed on 10/27/2016
Quarterly Report
Document and Entity Information
9 Months Ended
Sep. 30, 2016
Oct. 14, 2016
Document And Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Sep. 30, 2016 
 
Document Fiscal Year Focus
2016 
 
Document Fiscal Period Focus
Q3 
 
Trading Symbol
TPH 
 
Entity Registrant Name
TRI Pointe Group, Inc. 
 
Entity Central Index Key
0001561680 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
160,064,678 
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Assets
 
 
Cash and cash equivalents
$ 128,715 
$ 214,485 
Receivables
35,321 
43,710 
Real estate inventories
2,969,148 
2,519,273 
Investments in unconsolidated entities
17,205 
18,999 
Goodwill and other intangible assets, net
161,629 
162,029 
Deferred tax assets, net
111,900 
130,657 
Other assets
65,998 
48,918 
Total assets
3,489,903 
3,138,071 
Liabilities
 
 
Accounts payable
77,667 
64,840 
Accrued expenses and other liabilities
219,396 
216,263 
Unsecured revolving credit facility
200,000 
299,392 
Seller financed loans
17,758 
2,434 
Senior notes, net
1,166,724 
868,679 
Total liabilities
1,681,545 
1,451,608 
Commitments and contingencies
   
   
Stockholders’ Equity:
 
 
Preferred stock, $0.01 par value, 50,000,000 shares authorized; no shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively
0 
0 
Common stock, $0.01 par value, 500,000,000 shares authorized; 160,064,678 and 161,813,750 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively
1,601 
1,618 
Additional paid-in capital
894,681 
911,197 
Retained earnings
889,178 
751,868 
Total stockholders’ equity
1,785,460 
1,664,683 
Noncontrolling interests
22,898 
21,780 
Total equity
1,808,358 
1,686,463 
Total liabilities and equity
$ 3,489,903 
$ 3,138,071 
Consolidated Balance Sheets (Parenthetical) (USD $)
Sep. 30, 2016
Dec. 31, 2015
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)
160,064,678 
161,813,750 
Common stock, shares outstanding (shares)
160,064,678 
161,813,750 
Consolidated Statements of Operations (unaudited) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Dec. 31, 2015
Homebuilding:
 
 
 
 
 
Home sales revenue
$ 578,653 
$ 642,352 
$ 1,558,633 
$ 1,443,855 
 
Land and lot sales revenue
2,535 
4,876 
70,204 
74,366 
 
Other operations revenue
606 
613 
1,790 
2,213 
 
Total revenues
581,794 
647,841 
1,630,627 
1,520,434 
 
Cost of home sales
462,323 
507,543 
1,219,560 
1,149,191 
 
Cost of land and lot sales
1,734 
3,451 
16,973 
17,324 
 
Other operations expense
575 
570 
1,724 
1,704 
 
Sales and marketing
31,852 
30,038 
90,621 
78,958 
 
General and administrative
31,150 
26,736 
89,815 
83,150 
 
Restructuring charges
128 
2,010 
478 
2,730 
 
Homebuilding income from operations
54,032 
77,493 
211,456 
187,377 
 
Equity in (loss) income of unconsolidated entities
(20)
(150)
181 
(82)
 
Other income, net
21 
47 
287 
272 
 
Homebuilding income before income taxes
54,033 
77,390 
211,924 
187,567 
 
Financial Services:
 
 
 
 
 
Revenues
235 
300 
762 
482 
 
Expenses
72 
47 
183 
131 
 
Equity in income (loss) of unconsolidated entities
1,247 
147 
3,246 
(2)
 
Financial services income before income taxes
1,410 
400 
3,825 
349 
 
Income before income taxes
55,443 
77,790 
215,749 
187,916 
 
Provision for income taxes
(20,300)
(28,021)
(77,700)
(66,100)
 
Net income
35,145 
49,769 
138,048 
121,828 
207,181 
Net (income) loss attributable to noncontrolling interests
(311)
393 
(738)
(1,439)
 
Net income available to common stockholders
$ 34,834 
$ 50,162 
$ 137,310 
$ 120,389 
 
Earnings per share
 
 
 
 
 
Basic (in dollars per share)
$ 0.22 
$ 0.31 
$ 0.85 
$ 0.74 
 
Diluted (in dollars per share)
$ 0.22 
$ 0.31 
$ 0.85 
$ 0.74 
 
Weighted average shares outstanding
 
 
 
 
 
Basic (shares)
160,614,055 
161,772,893 
161,456,520 
161,651,177 
 
Diluted (shares)
161,267,509 
162,366,744 
161,916,352 
162,299,282 
 
Consolidated Statements of Equity (unaudited) (USD $)
In Thousands, except Share data, unless otherwise specified
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Total Stockholders' Equity [Member]
Noncontrolling Interests [Member]
Beginning Balance at Dec. 31, 2014
$ 1,472,476 
$ 1,614 
$ 906,159 
$ 546,407 
$ 1,454,180 
$ 18,296 
Beginning Balance, shares at Dec. 31, 2014
 
161,355,490 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Net income
207,181 
 
 
205,461 
205,461 
1,720 
Adjustment to capital contribution by Weyerhaeuser, net
(6,747)
 
(6,747)
 
(6,747)
 
Shares issued under share-based awards
1,616 
4 
1,612 
 
1,616 
 
Shares issued under share-based awards, shares
 
458,260 
 
 
 
 
Excess tax benefit of share-based awards, net
428 
 
428 
 
428 
 
Minimum tax withholding paid on behalf of employees for restricted stock units
(2,190)
 
(2,190)
 
(2,190)
 
Stock-based compensation expense
11,935 
 
11,935 
 
11,935 
 
Distributions to noncontrolling interests, net
(3,833)
 
 
 
 
(3,833)
Net effect of consolidations, de-consolidations and other transactions
5,597 
 
 
 
 
5,597 
Ending Balance at Dec. 31, 2015
1,686,463 
1,618 
911,197 
751,868 
1,664,683 
21,780 
Ending Balance, shares at Dec. 31, 2015
161,813,750 
161,813,750 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Net income
138,048 
 
 
137,310 
137,310 
738 
Shares issued under share-based awards
461 
4 
457 
 
461 
 
Shares issued under share-based awards, shares
 
356,449 
 
 
 
 
Excess tax deficit of share-based awards, net
(170)
 
(170)
 
(170)
 
Minimum tax withholding paid on behalf of employees for restricted stock units
(1,359)
 
(1,359)
 
(1,359)
 
Stock-based compensation expense
9,648 
 
9,648 
 
9,648 
 
Share repurchases
(25,113)
(21)
(25,092)
 
(25,113)
 
Share repurchases, shares
 
(2,105,521)
 
 
 
 
Distributions to noncontrolling interests, net
(3,104)
 
 
 
 
(3,104)
Net effect of consolidations, de-consolidations and other transactions
3,484 
 
 
 
 
3,484 
Ending Balance at Sep. 30, 2016
$ 1,808,358 
$ 1,601 
$ 894,681 
$ 889,178 
$ 1,785,460 
$ 22,898 
Ending Balance, shares at Sep. 30, 2016
160,064,678 
160,064,678 
 
 
 
 
Consolidated Statements of Cash Flows (unaudited) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Cash flows from operating activities:
 
 
Net income
$ 138,048 
$ 121,828 
Adjustments to reconcile net income to net cash used in operating activities:
 
 
Depreciation and amortization
2,322 
5,416 
Equity in (income) loss of unconsolidated entities, net
(3,427)
84 
Deferred income taxes, net
18,770 
16,342 
Amortization of stock-based compensation
9,648 
8,536 
Charges for impairments and lot option abandonments
678 
1,903 
Excess tax deficit of share-based awards
(170)
0 
Changes in assets and liabilities:
 
 
Real estate inventories
(442,671)
(305,889)
Receivables
8,549 
(12,803)
Other assets
(16,806)
25,490 
Accounts payable
12,827 
(1,113)
Accrued expenses and other liabilities
5,876 
195 
Returns on investments in unconsolidated entities, net
5,049 
0 
Net cash used in operating activities
(261,307)
(140,011)
Cash flows from investing activities:
 
 
Purchases of property and equipment
(2,056)
(1,059)
Investments in unconsolidated entities
(32)
(1,458)
Distributions from unconsolidated entities
0 
319 
Net cash used in investing activities
(2,088)
(2,198)
Cash flows from financing activities:
 
 
Borrowings from debt
491,069 
140,000 
Repayment of debt
(276,826)
(57,713)
Debt issuance costs
(5,061)
(2,688)
Net repayments of debt held by variable interest entities
(2,442)
(5,927)
Contributions from noncontrolling interests
1,955 
4,281 
Distributions to noncontrolling interests
(5,059)
(9,198)
Proceeds from issuance of common stock under share-based awards
461 
1,616 
Excess tax benefit of share-based awards
0 
392 
Minimum tax withholding paid on behalf of employees for share-based awards
(1,359)
(2,190)
Share repurchases
(25,113)
0 
Net cash provided by financing activities
177,625 
68,573 
Net decrease in cash and cash equivalents
(85,770)
(73,636)
Cash and cash equivalents - beginning of period
214,485 
170,629 
Cash and cash equivalents - end of period
$ 128,715 
$ 96,993 
Organization, Basis of Presentation and Summary of Significant Accounting Policies
Organization, Basis of Presentation and Summary of Significant Accounting Policies
Organization, Basis of Presentation and Summary of Significant Accounting Policies

Organization
TRI Pointe Group is engaged in the design, construction and sale of innovative single-family attached and detached homes through its portfolio of six quality brands across eight states, including Maracay Homes in Arizona, Pardee Homes in California and Nevada, Quadrant Homes in Washington, Trendmaker Homes in Texas, TRI Pointe Homes in California and Colorado and Winchester Homes in Maryland and Virginia.
Formation of TRI Pointe Group
On July 7, 2015, TRI Pointe Homes reorganized its corporate structure (the “Reorganization”) whereby TRI Pointe Homes became a direct, wholly owned subsidiary of TRI Pointe Group.  As a result of the Reorganization, each share of common stock, par value $0.01 per share, of TRI Pointe Homes (“Homes Common Stock”) was cancelled and converted automatically into the right to receive one validly issued, fully paid and non-assessable share of common stock, par value $0.01 per share, of TRI Pointe Group (“Group Common Stock”), each share having the same designations, rights, powers and preferences, and the qualifications, limitations and restrictions thereof as the shares of Homes Common Stock being so converted.  TRI Pointe Group, as the successor issuer to TRI Pointe Homes (pursuant to Rule 12g-3(a) under the Exchange Act), began making filings under the Securities Act and the Exchange Act on July 7, 2015.
In connection with the Reorganization, TRI Pointe Group (i) became a co-issuer of TRI Pointe Homes’ 4.375% Senior Notes due 2019 (the “2019 Notes”) and TRI Pointe Homes’ 5.875% Senior Notes due 2024 (the “2024 Notes”); and (ii) replaced TRI Pointe Homes as the borrower under TRI Pointe Homes’ existing unsecured revolving credit facility.
Basis of Presentation
The accompanying financial statements have been prepared in accordance with GAAP, as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”).
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, as well as other entities in which the Company has a controlling interest and variable interest entities (“VIEs”) in which the Company is the primary beneficiary.  The noncontrolling interests as of September 30, 2016 and December 31, 2015 represent the outside owners’ interests in the Company’s consolidated entities and the net equity of the VIE owners.  All significant intercompany accounts have been eliminated upon consolidation.  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.
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.
Reclassifications
Certain amounts in our consolidated financial statements for prior years have been reclassified to conform to the current period presentation, including the Company's change in reportable segments to include the addition of our financial services operation in the fourth quarter of 2015. These reclassifications had no material impact on the Company's condensed consolidated financial statements.
Recently Issued Accounting Standards
In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: identify the contract(s) with a customer; identify the performance obligations in the contract; determine the transaction price; allocate the transaction price to the performance obligations in the contract; and recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 supersedes the revenue-recognition requirements in ASC Topic 605, Revenue Recognition, most industry-specific guidance throughout the industry topics of the accounting standards codification, and some cost guidance related to construction-type and production-type contracts. On July 9, 2015, the FASB voted to defer the effective date of ASU No. 2014-09 by one year and it is now effective for public entities for the annual periods ending after December 15, 2017, and for annual and interim periods thereafter.  Companies may use either a full retrospective or a modified retrospective approach to adopt ASU 2014-09.  Early adoption is permitted, but can be no earlier than the original public entity effective date of fiscal years, and the interim periods within those years, beginning after December 15, 2016.  We are currently evaluating the approach for implementation and the potential impact of adopting this guidance on our consolidated financial statements.
In August 2014, the FASB issued Accounting Standards Update No. 2014-15 (“ASU 2014-15”), Presentation of Financial Statements — Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which requires management to evaluate, in connection with preparing financial statements for each annual and interim reporting period, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable) and provide related disclosures. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early adoption is permitted. We believe the adoption of this guidance will not have a material effect on our consolidated financial statements.
In February 2015, the FASB issued Accounting Standards Update No. 2015-02, (“ASU 2015-02”), Consolidation (Topic 810): Amendments to the Consolidation Analysis.   ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. ASU 2015-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015.  We adopted ASU 2015-02 on January 1, 2016 and the adoption had no impact on our current or prior year financial statements.
In November 2015, the FASB issued Accounting Standards Update No. 2015-17, (“ASU 2015-17”), Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, which requires deferred tax liabilities and assets be classified as noncurrent in a classified statement of position.  ASU 2015-17 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016.  The adoption of ASU 2015-17 is not expected to have a material effect on our consolidated financial statements.
In February 2016, the FASB issued Accounting Standards Update No. 2016-02, (“ASU 2016-02”), Leases (Topic 842): Leases, which requires an entity to recognize assets and liabilities on the balance sheet for the rights and obligations created by leased assets and provide additional disclosures. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and, at that time, we will adopt the new standard using a modified retrospective approach. We are currently evaluating the impact that the adoption of ASU 2016-02 may have on our consolidated financial statements and disclosures.
In March 2016, the FASB issued Accounting Standards Update No. 2016-09, (“ASU 2016-09”), Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows.  ASU 2016-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. We are currently evaluating the impact that the adoption of ASU 2016-09 may have on our consolidated financial statements and disclosures.
In August 2016, the FASB issued Accounting Standards Update No. 2016-15, (“ASU 2016-15”), Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted. We are currently evaluating the impact that adoption of ASU 2016-15 may have on our consolidated financial statements and disclosures.
Restructuring
Restructuring
Restructuring
Restructuring charges were comprised of the following (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Employee-related charges
$
5

 
$
1,433

 
$
30

 
$
1,568

Lease termination charges
123

 
577

 
448

 
1,162

Total
$
128

 
$
2,010

 
$
478

 
$
2,730



Employee-related charges for the three and nine months ended September 30, 2016 and 2015 relate to severance-related expenses for employees terminated during the period.  Lease termination charges for the three and nine months ended September 30, 2016, and 2015 relate to contract terminations and the adjustment of restructuring reserves related to the estimate of sublease income.
Changes in employee-related restructuring reserves were as follows (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Accrued employee-related charges, beginning of period
$
100

 
$
109

 
$
220

 
$
3,844

Current year charges
5

 
1,433

 
30

 
1,568

Payments
(20
)
 
(1,087
)
 
(165
)
 
(4,957
)
Accrued employee-related charges, end of period
$
85

 
$
455

 
$
85

 
$
455


 
Changes in lease termination related restructuring reserves were as follows (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Accrued lease termination charges, beginning of period
$
447

 
$
644

 
$
767

 
$
1,394

Current year charges
123

 
577

 
448

 
1,162

Payments
(352
)
 
(705
)
 
(997
)
 
(2,040
)
Accrued lease termination charges, end of period
$
218

 
$
516

 
$
218

 
$
516


 
Employee and lease termination restructuring reserves are included in accrued expenses and other liabilities on our consolidated balance sheets.
Segment Information
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 the above factors, our homebuilding operations are comprised of the following six reportable segments: Maracay Homes, 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; and Winchester Homes, consisting of operations in Maryland and Virginia.
Our financial services operation (“TRI Pointe Solutions”) is a reportable segment and is comprised of mortgage financing operations (“TRI Pointe Connect”) and title services operations (“TRI Pointe Assurance”).  While our homebuyers may obtain financing from any mortgage provider of their choice, TRI Pointe Connect, which was formed as a joint venture with an established mortgage lender, can act as a preferred mortgage broker to our homebuyers in all of the markets in which we operate, providing mortgage originations that help facilitate the sale and closing process as well as generate additional fee income for us.  TRI Pointe Assurance provides title examinations for our homebuyers in our Trendmaker Homes and Winchester Homes brands.  TRI Pointe Assurance is a wholly owned subsidiary of TRI Pointe and acts as a title agency for First American Title Insurance Company.  We commenced our financial services operation in the fourth quarter of 2014.
The term “Corporate” refers to 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 as our consolidated financial statements 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 September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Revenues
 
 
 
 
 
 
 
Maracay Homes
$
68,024

 
$
50,505

 
$
161,318

 
$
116,556

Pardee Homes
188,148

 
172,957

 
547,311

 
424,680

Quadrant Homes
48,354

 
48,173

 
153,575

 
132,698

Trendmaker Homes
64,251

 
81,044

 
172,509

 
203,235

TRI Pointe Homes
167,769

 
224,244

 
452,553

 
461,654

Winchester Homes
45,248

 
70,918

 
143,361

 
181,611

Total homebuilding revenues
581,794

 
647,841

 
1,630,627

 
1,520,434

Financial services
235

 
300

 
762

 
482

Total
$
582,029

 
$
648,141

 
$
1,631,389

 
$
1,520,916

 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
 
 
 
 
 
 
Maracay Homes
$
4,385

 
$
3,687

 
$
9,544

 
$
5,820

Pardee Homes
37,508

 
39,776

 
165,718

 
121,112

Quadrant Homes
5,497

 
3,850

 
14,808

 
6,176

Trendmaker Homes
3,516

 
7,214

 
9,439

 
17,525

TRI Pointe Homes
11,723

 
29,561

 
34,651

 
55,295

Winchester Homes
1,692

 
1,557

 
6,345

 
7,948

Corporate
(10,288
)
 
(8,255
)
 
(28,581
)
 
(26,309
)
Total homebuilding income before income taxes
54,033

 
77,390

 
211,924

 
187,567

Financial services
1,410

 
400

 
3,825

 
349

Total
$
55,443

 
$
77,790

 
$
215,749

 
$
187,916

 
Total real estate inventories and total assets for each of our reportable segments, as of the date indicated, were as follows (in thousands):
 
September 30, 2016
 
December 31, 2015
Real estate inventories
 
 
 
Maracay Homes
$
252,094

 
$
206,912

Pardee Homes
1,109,262

 
1,011,982

Quadrant Homes
217,430

 
190,038

Trendmaker Homes
221,201

 
199,398

TRI Pointe Homes
877,941

 
659,130

Winchester Homes
291,220

 
251,813

Total
$
2,969,148

 
$
2,519,273

 
 
 
 
Total assets
 
 
 
Maracay Homes
$
272,928

 
$
227,857

Pardee Homes
1,182,282

 
1,089,586

Quadrant Homes
237,959

 
202,024

Trendmaker Homes
236,618

 
213,562

TRI Pointe Homes
1,047,975

 
832,423

Winchester Homes
314,069

 
278,374

Corporate
192,654

 
292,169

Total homebuilding assets
3,484,485

 
3,135,995

Financial services
5,418

 
2,076

Total
$
3,489,903

 
$
3,138,071

Earnings Per Share
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 September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Numerator:
 

 
 

 
 

 
 

Net income available to common stockholders
$
34,834

 
$
50,162

 
$
137,310

 
$
120,389

Denominator:
 

 
 

 
 

 
 

Basic weighted-average shares outstanding
160,614,055

 
161,772,893

 
161,456,520

 
161,651,177

Effect of dilutive shares:
 

 
 
 
 

 
 

Stock options and unvested restricted stock units
653,454

 
593,851

 
459,832

 
648,105

Diluted weighted-average shares outstanding
161,267,509

 
162,366,744

 
161,916,352

 
162,299,282

Earnings per share
 

 
 

 
 

 
 

Basic
$
0.22

 
$
0.31

 
$
0.85

 
$
0.74

Diluted
$
0.22

 
$
0.31

 
$
0.85

 
$
0.74

Antidilutive stock options and unvested restricted stock not included in diluted earnings per share
3,806,396

 
2,260,532

 
4,551,337

 
2,462,268

Receivables
Receivables
Receivables
Receivables consisted of the following (in thousands):
 
September 30, 2016
 
December 31, 2015
Escrow proceeds and other accounts receivable, net
$
25,619

 
$
32,917

Warranty insurance receivable (Note 14)
9,702

 
10,493

Notes and contracts receivable
—

 
300

Total receivables
$
35,321

 
$
43,710

Real Estate Inventories
Real Estate Inventories
Real Estate Inventories
Real estate inventories consisted of the following (in thousands):
 
September 30, 2016
 
December 31, 2015
Real estate inventories owned:
 
 
 
Homes completed or under construction
$
757,707

 
$
575,076

Land under development
1,720,126

 
1,443,461

Land held for future development
298,841

 
295,241

Model homes
140,566

 
140,232

Total real estate inventories owned
2,917,240

 
2,454,010

Real estate inventories not owned:
 
 
 
Land purchase and land option deposits
29,608

 
39,055

Consolidated inventory held by VIEs
22,300

 
26,208

Total real estate inventories not owned
51,908

 
65,263

Total real estate inventories
$
2,969,148

 
$
2,519,273


 
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.
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 8, Variable Interest Entities.
In June of 2016, our Pardee Homes reporting segment sold two parcels, totaling 102 homebuilding lots, located in the Pacific Highlands Ranch community in San Diego, California. The land sold in these sales were classified as land under development and represented $61.6 million of land and lot sales revenue in the consolidated statements of operations for the nine months ended September 30, 2016.
Interest incurred, capitalized and expensed were as follows (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Interest incurred
$
18,601

 
$
15,454

 
$
50,030

 
$
45,779

Interest capitalized
(18,601
)
 
(15,454
)
 
(50,030
)
 
(45,779
)
Interest expensed
$
—

 
$
—

 
$
—

 
$
—

Capitalized interest in beginning inventory
$
151,347

 
$
140,106

 
$
140,311

 
$
124,461

Interest capitalized as a cost of inventory
18,601

 
15,454

 
50,030

 
45,779

Interest previously capitalized as a cost of inventory,
   included in cost of sales
(14,415
)
 
(13,339
)
 
(34,808
)
 
(28,019
)
Capitalized interest in ending inventory
$
155,533

 
$
142,221

 
$
155,533

 
$
142,221


 
Interest is capitalized to real estate inventory during development and other qualifying activities. 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 income, net.
Real estate inventory impairments and land and lot option abandonments
Land and lot option abandonments and pre-acquisition charges were as follows (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Real estate inventory impairments
$
—

 
$
29

 
$
—

 
$
1,073

Land and lot option abandonments and pre-acquisition charges
389

 
336

 
678

 
830

Total
$
389

 
$
365

 
$
678

 
$
1,903


 
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 above.  Charges for inventory impairments are expensed to cost of sales.
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. Charges for such forfeitures are expensed to cost of sales.
Investments in Unconsolidated Entities
Investments in Unconsolidated Entities
Investments in Unconsolidated Entities
As of September 30, 2016, we held equity investments in five 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 55%, depending on the investment, with no controlling interest held in any of these investments.
Investments Held
Our cumulative investment in entities accounted for on the equity method, including our share of earnings and losses, consisted of the following (in thousands):
 
September 30, 2016
 
December 31, 2015
Limited liability company interests
$
13,946

 
$
15,739

General partnership interests
3,259

 
3,260

Total
$
17,205

 
$
18,999


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 (loss) of unconsolidated entities.
Assets and liabilities of unconsolidated entities (in thousands):
 
 
September 30, 2016
 
December 31, 2015
Assets
 
 
 
Cash
$
11,945

 
$
18,641

Receivables
10,038

 
13,108

Real estate inventories
96,654

 
92,881

Other assets
1,065

 
1,180

Total assets
$
119,702

 
$
125,810

Liabilities and equity
 
 
 
Accounts payable and other liabilities
$
12,932

 
$
14,443

Company’s equity
17,205

 
18,999

Outside interests' equity
89,565

 
92,368

Total liabilities and equity
$
119,702

 
$
125,810

 
Results of operations from unconsolidated entities (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Net sales
$
4,619

 
$
1,217

 
$
12,516

 
$
2,670

Other operating expense
(2,913
)
 
(1,479
)
 
(8,067
)
 
(4,020
)
Other income (loss)
1

 
(263
)
 
3

 
(256
)
Net income (loss)
$
1,707

 
$
(525
)
 
$
4,452

 
$
(1,606
)
Company’s equity in income (loss) of unconsolidated entities
$
1,227

 
$
(3
)
 
$
3,427

 
$
(84
)
Variable Interest Entities
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. Such deposits are recorded as land purchase and land option deposits under real estate inventories not owned in 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 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 land owner and budget shortfalls and savings will be borne by us.
The following provides a summary of our interests in land and lot option agreements (in thousands):
 
September 30, 2016
 
December 31, 2015
 
Deposits
 
Remaining
Purchase
Price
 
Consolidated
Inventory
Held by VIEs
 
Deposits
 
Remaining
Purchase
Price
 
Consolidated
Inventory
Held by VIEs
Consolidated VIEs
$
600

 
$
21,700

 
$
22,300

 
$
3,003

 
$
23,239

 
$
26,208

Unconsolidated VIEs
2,170

 
58,135

 
N/A

 
11,615

 
74,590

 
N/A

Other land option agreements
27,438

 
365,224

 
N/A

 
27,440

 
279,612

 
N/A

Total
$
30,208

 
$
445,059

 
$
22,300

 
$
42,058

 
$
377,441

 
$
26,208


 
Unconsolidated VIEs represent land option agreements that were not consolidated because we were not the primary beneficiary. Other land and lot 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 $4.7 million and $5.0 million as of September 30, 2016 and December 31, 2015, respectively. These pre-acquisition costs were included in real estate inventories as land under development on our consolidated balance sheets.
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
As of September 30, 2016 and December 31, 2015, $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 3, Segment Information. 
We have two intangible assets recorded as of September 30, 2016, comprised of an existing trade name from the acquisition of Maracay Homes in 2006, which has a 20 year useful life, and a TRI Pointe Homes trade name resulting from the acquisition of WRECO in 2014, which has an indefinite useful life.
Goodwill and other intangible assets consisted of the following (in thousands):
 
September 30, 2016
 
December 31, 2015
 
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 names
27,979

 
(5,654
)
 
22,325

 
27,979

 
(5,254
)
 
22,725

Total
$
167,283

 
$
(5,654
)
 
$
161,629

 
$
167,283

 
$
(5,254
)
 
$
162,029


 
The remaining useful life of our amortizing intangible asset related to the Maracay Homes trade name was 9.4 and 10.2 years as of September 30, 2016 and December 31, 2015, respectively. Amortization expense related to this intangible asset was $133,000 for each of the three month periods ended September 30, 2016 and 2015, respectively and was $400,000 for each of the nine month periods ended September 30, 2016 and 2015, respectively.  Amortization of this intangible asset 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 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 Homes for the remainder of 2016, the next four years and thereafter is (in thousands):
Remainder of 2016
$
134

2017
534

2018
534

2019
534

2020
534

Thereafter
2,755

Total
$
5,025

Other Assets
Other Assets
Other Assets
Other assets consisted of the following (in thousands):
 
September 30, 2016
 
December 31, 2015
Prepaid expenses
$
14,899

 
$
14,523

Refundable fees and other deposits
21,695

 
17,056

Development rights, held for future use or sale
4,227

 
4,360

Deferred loan costs - unsecured revolving credit facility
2,319

 
2,179

Operating properties and equipment, net
9,525

 
7,643

Income tax receivable
10,633

 
—

Other
2,700

 
3,157

Total
$
65,998

 
$
48,918

Accrued Expenses and Other Liabilities
Accrued Expenses and Other Liabilities
Accrued Expenses and Other Liabilities
Accrued expenses and other liabilities consisted of the following (in thousands):
 
September 30, 2016
 
December 31, 2015
Accrued payroll and related costs
$
23,126

 
$
28,264

Warranty reserves (Note 14)
45,665

 
45,948

Estimated cost for completion of real estate inventories
53,218

 
52,818

Customer deposits
19,428

 
12,132

Debt (nonrecourse) held by VIEs
—

 
2,442

Income tax liability to Weyerhaeuser (Note 17)
8,999

 
8,900

Accrued income taxes payable
—

 
19,279

Liability for uncertain tax positions (Note 17)
—

 
307

Accrued interest
19,240

 
2,417

Accrued insurance expense
2,529

 
1,402

Other tax liability
30,459

 
21,764

Other
16,732

 
20,590

Total
$
219,396

 
$
216,263

Senior Notes, Unsecured Revolving Credit Facility and Seller Financed Loans
Senior Notes, Unsecured Revolving Credit Facility and Seller Financed Loans
Senior Notes, Unsecured Revolving Credit Facility and Seller Financed Loans
Senior Notes
The Senior Notes consisted of the following (in thousands):
 
 
September 30, 2016
 
December 31, 2015
4.375% Senior Notes due June 15, 2019
$
450,000

 
$
450,000

4.875% Senior Notes due July 1, 2021
300,000

 
—

5.875% Senior Notes due June 15, 2024
450,000

 
450,000

Discount and deferred loan costs
(33,276
)
 
(31,321
)
Total
$
1,166,724

 
$
868,679


 
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.
TRI Pointe Group and TRI Pointe Homes are co-issuers of the 2019 Notes and the 2024 Notes. The 2019 Notes were issued at 98.89% of their aggregate principal amount and the 2024 Notes were issued at 98.15% of their aggregate principal amount. The net proceeds from the offering were $861.3 million, after debt issuance costs and discounts. The 2019 Notes and 2024 Notes mature on June 15, 2019 and June 15, 2024, respectively. Interest is payable semiannually in arrears on June 15 and December 15.
As of September 30, 2016, no principal has been paid on the 2019 Notes, 2021 Notes and 2024 Notes (together, the "Senior Notes"), and there was $22.0 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 $18.6 million and $1.9 million as of September 30, 2016 and December 31, 2015, respectively.
Unsecured Revolving Credit Facility
Unsecured revolving credit facility consisted of the following (in thousands):
 
September 30, 2016
 
December 31, 2015
Unsecured revolving credit facility
$
200,000

 
$
299,392


 
On April 28, 2016, the Company partially exercised the accordion feature under its existing unsecured revolving credit facility (the “Credit Facility”) to increase the total commitments under the Credit Facility to $625 million from $550 million.  The Credit Facility matures on May 18, 2019, and contains a sublimit of $75 million for letters of credit. The Company may borrow under the Credit Facility in the ordinary course of business to fund its operations, including its land acquisition, land development and homebuilding activities. Borrowings under the Credit Facility will be governed by, among other things, a borrowing base. Interest rates on borrowings under the Credit Facility will be based on either a daily Eurocurrency base rate or a Eurocurrency rate, in either case, plus a spread ranging from 1.45% to 2.20%, depending on the Company’s leverage ratio. As of September 30, 2016, the outstanding balance under the Credit Facility was $200.0 million with an interest rate of 2.28% per annum and $420.7 million of availability after considering the borrowing base provisions and outstanding letters of credit.  As of September 30, 2016 there was $2.3 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 life of the Credit Facility, maturing on May 18, 2019.  Accrued interest related to the Credit Facility was $645,000 and $407,000 as of September 30, 2016 and December 31, 2015, respectively.
At September 30, 2016 we had outstanding letters of credit of $4.3 million.  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.
Seller Financed Loans
Seller financed loans consisted of the following (in thousands):
 
September 30, 2016
 
December 31, 2015
Seller financed loans
$
17,758

 
$
2,434


 
As of September 30, 2016, the Company had $17.8 million outstanding related to a seller financed loan to acquire land and lots for the construction of homes. Principal and interest payments on this loan are due at various maturity dates, including at the time individual homes associated with the acquired land are delivered. As of September 30, 2016, the seller financed loan accrues interest at a rate of 7.0% per annum, with interest calculated on a daily basis. A minimum principal payment of $12.1 million is due in June 2017 with any remaining unpaid balance due in June 2018. Accrued interest on seller financed loans was $359,000 and $89,000 as of September 30, 2016 and December 31, 2015, respectively.
Interest Incurred
During the three month periods ended September 30, 2016 and 2015, the Company incurred interest of $18.6 million and $15.5 million, respectively, related to all debt during the period. All interest incurred was capitalized to inventory for the three month periods ended September 30, 2016 and 2015, respectively. Included in interest incurred was amortization of deferred financing and Senior Notes discount costs of $1.8 million and $1.5 million for the three months ended September 30, 2016 and 2015, respectively.  During the nine month periods ended September 30, 2016 and 2015, the Company incurred interest of $50.0 million and $45.8 million, respectively, related to all debt during the period. All interest incurred was capitalized to inventory for the nine month periods ended September 30, 2016 and 2015, respectively. Included in interest incurred was amortization of deferred financing and Senior Notes discount costs of $4.7 million and $3.9 million for the nine months ended September 30, 2016 and 2015, respectively.  Accrued interest related to all outstanding debt at September 30, 2016 and December 31, 2015 was $19.2 million and $2.4 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 but not limited to (i) a minimum consolidated tangible net worth; (ii) a maximum total leverage ratio; and (iii) a minimum interest coverage ratio.
The Company was in compliance with all applicable financial covenants as of September 30, 2016 and December 31, 2015.
Fair Value Disclosures
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 September 30, 2016 and December 31, 2015, related to our financial instruments, measured at fair value on a recurring basis, is set forth below (in thousands):
 
 
 
September 30, 2016
 
December 31, 2015
 
Hierarchy
 
Book Value
 
Fair Value
 
Book Value
 
Fair Value
Senior Notes (1)
Level 2
 
$
1,188,686

 
$
1,235,250

 
$
889,054

 
$
881,460

Unsecured revolving credit facility (2)
Level 2
 
$
200,000

 
$
192,772

 
$
299,392

 
$
299,392

Seller financed loans (3)
Level 2
 
$
17,758

 
$
17,758

 
$
2,434

 
$
2,368

 __________
(1) 
The book value of the Senior Notes is net of discounts, excluding deferred loan costs of $22.0 million and $20.4 million as of September 30, 2016 and December 31, 2015, respectively. The estimated fair value of the Senior Notes at September 30, 2016 and December 31, 2015 is based on quoted market prices.
(2) 
The estimated fair value of the Credit Facility at September 30, 2016 is based on a treasury curve analysis. We believe that the carrying value of the Credit Facility approximated fair value at December 31, 2015 due to the short term nature of the current rate amended on May 18, 2015.
(3) 
The estimated fair value of the seller financed loans at September 30, 2016 and December 31, 2015 is based on a treasury curve analysis.

At September 30, 2016 and December 31, 2015, the carrying value of cash and cash equivalents and receivables approximated fair value.
 
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 indicate the carrying value is not recoverable. The following table presents impairment charges and the remaining net fair value for nonfinancial assets that were measured during the periods presented (in thousands):
 
Nine Months Ended September 30, 2016
 
Year Ended December 31, 2015
 
Impairment
Charge
 
Fair Value
Net of
Impairment
 
Impairment
Charge
 
Fair Value
Net of
Impairment
Real estate inventories (1)
$
—

 
$
—

 
$
1,167

 
$
28,540

_______________
(1) 
Fair value of real estate inventories, net of impairment charges represents only those assets whose carrying values were adjusted to fair value in the respective periods presented. The fair value of these real estate inventories impaired was determined based on recent offers received from outside third parties or actual contracts.
Commitments and Contingencies
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 legal reserves of $225,000 and $450,000 as of September 30, 2016 and December 31, 2015, 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 construction-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 a significant majority of our subcontractors, which are enrolled in our general liability insurance policy. Included in our warranty reserve accrual are allowances to cover our estimated costs of self-insured retentions and deductible amounts under these policies and estimated costs for claims that may not be covered by applicable insurance or indemnities. Estimation of these accruals include consideration of our claims history, including current claims and estimates of claims incurred but not yet reported.  In addition, management estimates warranty reserves and allowances necessary to cover any current or future construction-related claims based on actuarial analysis. Under this analysis, reserve amounts are estimated using our historical expense and claim data, as well as industry data. In addition, we record expected recoveries from insurance carriers when proceeds are probable and estimable.  Outstanding warranty insurance receivables were $9.7 million and $10.5 million as of September 30, 2016 and December 31, 2015, respectively. Warranty insurance receivables are recorded in receivables on the accompanying consolidated balance sheets.
There can be no assurance that our warranty reserves will sufficiently cover the costs of future warranty 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.
Warranty reserves consisted of the following (in thousands):
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Warranty reserves, beginning of period
$
45,272

 
$
35,375

 
$
45,948

 
$
33,270

Warranty reserves accrued
3,329

 
4,201

 
8,373

 
10,427

Adjustments to pre-existing reserves
200

 
(14
)
 
460

 
1,286

Warranty expenditures
(3,136
)
 
(2,819
)
 
(9,116
)
 
(8,240
)
Warranty reserves, end of period
$
45,665

 
$
36,743

 
$
45,665

 
$
36,743


Performance Bonds
We obtain surety bonds in the normal course of business to ensure completion of certain infrastructure improvements of our projects. As of September 30, 2016 and December 31, 2015, the Company had outstanding surety bonds totaling $433.6 million and $414.1 million, respectively. The beneficiaries of the bonds are various municipalities.
Stock-Based Compensation
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 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 September 30, 2016 there were 7,604,642 shares available for future grant under the 2013 Incentive Plan.
Converted Awards
On July 16, 2014, the Company filed a registration statement on Form S-8 (Registration No. 333-197461) to register 4,105,953 shares of common stock related to converted equity awards issued in connection with the Company's acquisition of WRECO. The converted awards have the same terms and conditions as the prior equity awards except that all performance share units were surrendered in exchange for time-vesting restricted stock units without any performance-based vesting conditions or requirements and the exercise price of each converted stock option is equal to the original exercise price divided by an exchange ratio of 2.1107, rounded down to the nearest whole number of shares of common stock. There will be no future grants under the WRECO equity incentive plans.  
The following table presents compensation expense recognized related to all stock-based awards (in thousands):
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Total stock-based compensation
$
3,285

 
$
2,994

 
$
9,648

 
$
8,536


 
Stock-based compensation is charged to general and administrative expense on the accompanying consolidated statements of operations.  As of September 30, 2016, total unrecognized stock-based compensation related to all stock-based awards was $20.3 million and the weighted average term over which the expense was expected to be recognized was 1.9 years.
Summary of Stock Option Activity
The following table presents a summary of stock option awards for the nine months ended September 30, 2016:
 
Options
 
Weighted
Average
Exercise
Price
Per Share
 
Weighted
Average
Remaining
Contractual
Life
 
Aggregate
Intrinsic
Value
(in thousands)
Options outstanding at December 31, 2015
3,220,147

 
$
13.12

 
5.2

 
$
3,081

Granted
—

 
—

 
—

 
—

Exercised
(79,689
)
 
9.89

 
—

 
—

Forfeited
(155,380
)
 
12.39

 
—

 
—

Options outstanding at September 30, 2016
2,985,078

 
13.24

 
4.6

 
3,282

Options exercisable at September 30, 2016
2,616,544

 
13.05

 
4.3

 
3,282


 
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 restricted stock units (“RSUs”) for the nine months ended September 30, 2016:
 
Restricted
Stock
Units
 
Weighted
Average
Grant Date
Fair Value
Per Share
 
Aggregate
Intrinsic
Value
(in thousands)
Nonvested RSUs at December 31, 2015
1,958,033

 
$
12.21

 
$
24,808

Granted
1,904,389

 
8.41

 
25,100

Vested
(431,758
)
 
14.53

 
—

Forfeited
(19,781
)
 
12.17

 
—

Nonvested RSUs at September 30, 2016
3,410,883

 
9.77

 
44,993


 
On March 5, 2015, the Company granted an aggregate of 440,800 time-vested RSUs to employees and officers. The RSUs granted vest in equal installments annually on the anniversary of the grant date over a three years period.  The fair value of each RSU granted on March 5, 2015 was measured using a price of $14.97 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, 2015, the Company granted 411,804, 384,351, and 274,536 performance-based RSUs to the Company’s Chief Executive Officer, President, and Chief Financial Officer, respectively, with 1/3 of the performance-based RSU amounts being allocated to each of the three following separate performance goals: total shareholder return (compared to a group of peer homebuilding companies); earnings per share; and stock price. The performance-based RSUs granted will vest in each case, if at all, based on the percentage of attainment of the applicable performance goal. The performance periods for the performance-based RSUs with vesting based on total shareholder return and earnings per share are January 1, 2015 to December 31, 2017. The performance period for the performance-based RSUs with vesting based on stock price is January 1, 2016 to December 31, 2017. The fair value of the performance-based RSUs related to the total shareholder return and stock price performance goals was determined to be $7.55 and $7.90 per share, respectively, 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 $14.57 per share, which was the closing stock price on the date of grant. Each grant will be expensed over the requisite service period.
 
On August 12, 2015, the Company granted an aggregate of 69,008 RSUs to the non-employee members of its board of directors. These RSUs vested in their entirety on June 6, 2016. The fair value of each RSU granted on August 12, 2015 was measured using $14.49 per share, which was the closing price on the date of grant. Each award was expensed on a straight-line basis over the vesting period.
On March 1, 2016, the Company granted an aggregate of 1,120,677 time-vested RSUs to 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 1, 2016 was measured using a price of $10.49 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 1, 2016, the Company granted 297,426, 285,986 and 125,834 performance-based RSUs to the Company’s Chief Executive Officer, President, and Chief Financial Officer, respectively. 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 percentage of these performance-based RSUs that vest will be determined by comparing the Company’s total stockholder return to the total stockholder returns of a group of peer homebuilding companies. The performance period for these performance-based RSUs is January 1, 2016 to December 31, 2018. These performance-based RSUs will not vest if the Company’s total stockholder return from January 1, 2016 to December 31, 2018 is not a positive number, provided that the executive will thereafter become vested in the award units, or portion thereof, that would have otherwise vested on December 31, 2018 if on any day after December 31, 2018 and on or before December 31, 2020, the Company’s total stockholder return is greater than zero and the executive is employed by the Company on that date. If the performance-based RSUs have not vested on or before December 31, 2020, such performance-based RSUs shall be cancelled and forfeited for no consideration. The fair value of these performance-based RSUs was determined to be $4.76 per share based on a Monte Carlo simulation. Each award will be expensed over the requisite service period.
On June 6, 2016, the Company granted an aggregate of 74,466 RSUs to the non-employee members of its board of directors. These RSUs vest in their entirety on the day immediately prior to the Company's 2017 Annual Meeting of Stockholders. The fair value of each RSU granted on June 6, 2016 was measured using a price of $11.75 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.
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.
Stock Repurchase Program
Stock Repurchase Program
Stock Repurchase Program
On January 27, 2016, the Company announced that the board of directors approved a stock repurchase program, authorizing the repurchase of the Company’s common stock with an aggregate value of up to $100 million through January 25, 2017.  Purchases of common stock may be made in open market transactions effected through a broker-dealer at prevailing market prices, in block trades, or by other means in accordance with federal securities laws, including pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Exchange Act.  We are not obligated under the program to repurchase any specific number or amount of shares of common stock, and we may modify, suspend or discontinue the program at any time.  Our management will determine the timing and amount of repurchase in its discretion based on a variety of factors, such as the market price of our common stock, corporate requirements, general market economic conditions and legal requirements. For the three months ended September 30, 2016, 852,500 shares of our common stock were repurchased and retired under this program at an average price of $12.22 per share for a total cost of $10.4 million. For the nine months ended September 30, 2016, 2,105,521 shares of our common stock were repurchased and retired under this program at an average price of $11.93 per share for a total of cost of $25.1 million. Subsequent to September 30, 2016 and through the date of this filing, the Company repurchased and retired an additional 618,532 shares of our common stock under this program at an average price of $12.43 per share for a total cost of $7.7 million.
Income Taxes
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 $111.9 million and $130.7 million as of September 30, 2016 and December 31, 2015, respectively.  We had a valuation allowance related to those net deferred tax assets of $3.5 million and $4.4 million as of September 30, 2016 and December 31, 2015, respectively.  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 with Weyerhaeuser related to a tax sharing agreement.   As of September 30, 2016 and December 31, 2015, we had an income tax liability to Weyerhaeuser of $9.0 million and $8.9 million, respectively, which is recorded in accrued expenses and other liabilities on the accompanying consolidated balance sheets.
Our provision for income taxes totaled $20.3 million and $28.0 million for the three months ended September 30, 2016 and 2015, respectively.  Our provision for income taxes totaled $77.7 million and $66.1 million for the nine months ended September 30, 2016 and 2015, respectively.  The Company classifies any interest and penalties related to income taxes assessed by jurisdiction as part of income tax expense.  The Company had zero and $307,000 of liabilities for uncertain tax positions recorded as of September 30, 2016 and December 31, 2015, respectively.  The Company has not been assessed interest or penalties by any major tax jurisdictions related to prior years.
Related Party Transactions
Related Party Transactions
Related Party Transactions
In January of 2015, TRI Pointe acquired 46 lots located in Castle Rock, Colorado, for a purchase price of approximately $2.8 million, from an entity managed by an affiliate of Starwood Capital Group, a greater than 5% holder of our common stock. TRI Pointe’s Chairman of the Board is also the Chairman and Chief Executive Officer of Starwood Capital Group. This acquisition was approved by the TRI Pointe independent directors. In August of 2016, TRI Pointe entered into an agreement to purchase an additional 257 lots located in Castle Rock, Colorado, for a purchase price of approximately $8.6 million from an entity managed by an affiliate of Starwood Capital Group. This acquisition was approved by the TRI Pointe independent directors.
In October of 2015, TRI Pointe entered into an agreement with an affiliate of BlackRock, Inc. to acquire 161 lots located in Dublin, California, for a purchase price of approximately $60 million.  BlackRock, Inc. is a greater than five percent holder of our common stock. This acquisition was approved by the executive land committee, which was comprised of independent directors. In September of 2016, we acquired an additional 45 lots located in Dublin, California, for a purchase price of approximately $10.0 million from an affiliate of BlackRock, Inc. This acquisition was approved by a majority of the TRI Pointe independent directors.
Supplemental Disclosure to Consolidated Statements of Cash Flows
Supplemental Disclosure to Consolidated Statements of Cash Flow
Supplemental Disclosure to Consolidated Statements of Cash Flows
The following are supplemental disclosures to the consolidated statements of cash flows (in thousands):
 
Nine Months Ended September 30,
 
2016
 
2015
Supplemental disclosure of cash flow information:
 
 
 
Cash paid during the period for:
 
 
 
Interest, net of amounts capitalized of $50,030 and $45,779 (Note 6)
$
—

 
$
—

Income taxes
$
89,269

 
$
44,394

Supplemental disclosures of noncash activities:
 
 
 
Amortization of senior note discount capitalized to real estate inventory
$
1,321

 
$
1,155

Amortization of deferred loan costs capitalized to real estate inventory
$
2,865

 
$
2,690

Effect of net consolidation and de-consolidation of variable interest entities:
 
 
 
Increase (decrease) in consolidated real estate inventory not owned
$
3,484

 
$
(3,556
)
Increase in deposits on real estate under option or contract and other assets
$
—

 
$
300

(Increase) decrease in noncontrolling interests
$
(3,484
)
 
$
3,256

Supplemental Guarantor Information
Supplemental Guarantor Information
Supplemental Guarantor Information
2021 Notes
On May 26, 2016, TRI Pointe Group issued the 2021 Notes. All of TRI Pointe Group’s 100% owned subsidiaries that are guarantors (each a “Guarantor” and, collectively, the “Guarantors”) of the Company’s Credit Facility, including TRI Pointe Homes and certain other of its 100% owned subsidiaries, are party to a supplemental indenture pursuant to which they jointly and severally guarantee TRI Pointe Group’s obligations with respect to the 2021 Notes. Each Guarantor of the 2021 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, 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 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; (vi) TRI Pointe Group exercises its legal defeasance or covenant defeasance options; or (vii) all obligations under the applicable supplemental indenture are discharged.
2019 Notes and 2024 Notes
TRI Pointe Group and TRI Pointe Homes are co-issuers of the 2019 Notes and 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 2019 Notes and the 2024 Notes. Each Guarantor of the 2019 Notes and 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 2019 Notes and the 2024 Notes, as described below.
A Guarantor of the 2019 Notes and 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 2019 Notes and 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 September 30, 2016 and December 31, 2015, condensed consolidating statements of operations for the three and nine months ended September 30, 2016 and 2015 and condensed consolidating statement of cash flows for the nine month periods ended September 30, 2016 and 2015.  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 2019 Notes and 2024 Notes, is presented together in the column titled “Issuer” for all periods presented after July 7, 2015, the date of the Reorganization.
Condensed Consolidating Balance Sheet (in thousands):
 
 
September 30, 2016
 
Issuer (1)
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
61,073

 
$
67,642

 
$
—

 
$
128,715

Receivables
12,496

 
22,825

 
—

 
35,321

Intercompany receivables
856,866

 
—

 
(856,866
)
 
—

Real estate inventories
877,940

 
2,091,208

 
—

 
2,969,148

Investments in unconsolidated entities
—

 
17,205

 
—

 
17,205

Goodwill and other intangible assets, net
156,604

 
5,025

 
—

 
161,629

Investments in subsidiaries
1,241,559

 
—

 
(1,241,559
)
 
—

Deferred tax assets, net
18,958

 
92,929

 
—

 
111,887

Other assets
9,266

 
56,732

 
—

 
65,998

Total Assets
$
3,234,762

 
$
2,353,566

 
$
(2,098,425
)
 
$
3,489,903

 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
Accounts payable
$
21,099

 
$
56,568

 
$
—

 
$
77,667

Intercompany payables
—

 
856,866

 
(856,866
)
 
—

Accrued expenses and other liabilities
43,721

 
175,675

 
—

 
219,396

Unsecured revolving credit facility
200,000

 
—

 
—

 
200,000

Seller financed loans
17,758

 
—

 
—

 
17,758

Senior notes
1,166,724

 
—

 
—

 
1,166,724

Total Liabilities
1,449,302

 
1,089,109

 
(856,866
)
 
1,681,545

 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
Total stockholders’ equity
1,785,460

 
1,241,559

 
(1,241,559
)
 
1,785,460

Noncontrolling interests
—

 
22,898

 
—

 
22,898

Total Equity
1,785,460

 
1,264,457

 
(1,241,559
)
 
1,808,358

Total Liabilities and Equity
$
3,234,762

 
$
2,353,566

 
$
(2,098,425
)
 
$
3,489,903

__________
(1) 
References to “Issuer” in this Note 20, Supplemental Guarantor Information have the following meanings:
a. 
for periods prior to July 7, 2015: TRI Pointe Homes only
b. 
for periods from and after July 7, 2015:  TRI Pointe Homes and TRI Pointe Group as co-issuers of the 2019 Notes and 2024 Notes


Condensed Consolidating Balance Sheet (in thousands):
 
 
December 31, 2015
 
Issuer (1)
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
147,771

 
$
66,714

 
$
—

 
$
214,485

Receivables
17,358

 
26,352

 
—

 
43,710

Intercompany receivables
783,956

 
—

 
(783,956
)
 
—

Real estate inventories
657,221

 
1,862,052

 
—

 
2,519,273

Investments in unconsolidated entities
—

 
18,999

 
—

 
18,999

Goodwill and other intangible assets, net
156,604

 
5,425

 
—

 
162,029

Investments in subsidiaries
1,093,261

 
—

 
(1,093,261
)
 
—

Deferred tax assets, net
19,061

 
111,596

 
—

 
130,657

Other assets
12,219

 
36,699

 
—

 
48,918

Total Assets
$
2,887,451

 
$
2,127,837

 
$
(1,877,217
)
 
$
3,138,071

 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
Accounts payable
$
20,444

 
$
44,396

 
$
—

 
$
64,840

Intercompany payables
—

 
783,956

 
(783,956
)
 
—

Accrued expenses and other liabilities
32,219

 
184,044

 
—

 
216,263

Unsecured revolving credit facility
299,392

 
—

 
—

 
299,392

Seller financed loans
2,034

 
400

 
—

 
2,434

Senior notes
868,679

 
—

 
—

 
868,679

Total Liabilities
1,222,768

 
1,012,796

 
(783,956
)
 
1,451,608

 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
Total stockholders’ equity
1,664,683

 
1,093,261

 
(1,093,261
)
 
1,664,683

Noncontrolling interests
—

 
21,780

 
—

 
21,780

Total Equity
1,664,683

 
1,115,041

 
(1,093,261
)
 
1,686,463

Total Liabilities and Equity
$
2,887,451

 
$
2,127,837

 
$
(1,877,217
)
 
$
3,138,071

__________
(1) 
References to “Issuer” in this Note 20, Supplemental Guarantor Information have the following meanings:
a. 
for periods prior to July 7, 2015: TRI Pointe Homes only
b. 
for periods from and after July 7, 2015:  TRI Pointe Homes and TRI Pointe Group as co-issuers of the 2019 Notes and 2024 Notes




Condensed Consolidating Statement of Operations (in thousands):
 
 
Three Months Ended September 30, 2016
 
Issuer (1)
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Homebuilding:
 
 
 
 
 
 
 
Home sales revenue
$
167,769

 
$
410,884

 
$
—

 
$
578,653

Land and lot sales revenue
—

 
2,535

 
—

 
2,535

Other operations revenue
—

 
606

 
—

 
606

Total revenues
167,769

 
414,025

 
—

 
581,794

Cost of home sales
144,217

 
318,106

 
—

 
462,323

Cost of land and lot sales
—

 
1,734

 
—

 
1,734

Other operations expense
—

 
575

 
—

 
575

Sales and marketing
6,598

 
25,254

 
—

 
31,852

General and administrative
15,192

 
15,958

 
—

 
31,150

Restructuring charges
—

 
128

 
—

 
128

Homebuilding income from operations
1,762

 
52,270

 
—

 
54,032

Equity in loss of unconsolidated entities
—

 
(20
)
 
—

 
(20
)
Other (loss) income, net
(345
)
 
366

 
—

 
21

Homebuilding income before income taxes
1,417

 
52,616

 
—

 
54,033

Financial Services:
 
 
 
 
 
 
 
Revenues
—

 
235

 
—

 
235

Expenses
—

 
72

 
—

 
72

Equity in income of unconsolidated entities
—

 
1,247

 
—

 
1,247

Financial services income before income taxes
—

 
1,410

 
—

 
1,410

Income before income taxes
1,417

 
54,026

 
—

 
55,443

Equity of net income of subsidiaries
34,639

 
—

 
(34,639
)
 
—

Provision for income taxes
(1,222
)
 
(19,076
)
 
—

 
(20,298
)
Net income
34,834

 
34,950

 
(34,639
)
 
35,145

Net income attributable to noncontrolling interests
—

 
(311
)
 
—

 
(311
)
Net income available to common stockholders
$
34,834

 
$
34,639

 
$
(34,639
)
 
$
34,834

__________
(1) 
References to “Issuer” in this Note 20, Supplemental Guarantor Information have the following meanings:
a. 
for periods prior to July 7, 2015: TRI Pointe Homes only
b. 
for periods from and after July 7, 2015:  TRI Pointe Homes and TRI Pointe Group as co-issuers of the 2019 Notes and 2024 Notes


 
Condensed Consolidating Statement of Operations (in thousands):
 
 
Three Months Ended September 30, 2015
 
Issuer (1)
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Homebuilding:
 
 
 
 
 
 
 
Home sales revenue
$
224,244

 
$
418,108

 
$
—

 
$
642,352

Land and lot sales revenue
—

 
4,876

 
—

 
4,876

Other operations revenue
—

 
613

 
—

 
613

Total revenues
224,244

 
423,597

 
—

 
647,841

Cost of home sales
182,754

 
324,789

 
—

 
507,543

Cost of land and lot sales
—

 
3,451

 
—

 
3,451

Other operations expense
—

 
570

 
—

 
570

Sales and marketing
7,286

 
22,752

 
—

 
30,038

General and administrative
12,942

 
13,794

 
—

 
26,736

Restructuring charges
(83
)
 
2,093

 
—

 
2,010

Homebuilding income from operations
21,345

 
56,148

 
—

 
77,493

Equity in loss of unconsolidated entities
—

 
(150
)
 
—

 
(150
)
Other (loss) income, net
(37
)
 
84

 
—

 
47

Homebuilding income before income taxes
21,308

 
56,082

 
—

 
77,390

Financial Services:
 
 
 
 
 
 
 
Revenues
—

 
300

 
—

 
300

Expenses
—

 
47

 
—

 
47

Equity in income of unconsolidated entities
—

 
147

 
—

 
147

Financial services income before income taxes
—

 
400

 
—

 
400

Income before income taxes
21,308

 
56,482

 
—

 
77,790

Equity of net income of subsidiaries
37,924

 
—

 
(37,924
)
 
—

Provision for income taxes
(9,070
)
 
(18,951
)
 
—

 
(28,021
)
Net income
50,162

 
37,531

 
(37,924
)
 
49,769

Net income attributable to noncontrolling interests
—

 
393

 
—

 
393

Net income available to common stockholders
$
50,162

 
$
37,924

 
$
(37,924
)
 
$
50,162

__________
(1) 
References to “Issuer” in this Note 20, Supplemental Guarantor Information have the following meanings:
a. 
for periods prior to July 7, 2015: TRI Pointe Homes only
b. 
for periods from and after July 7, 2015:  TRI Pointe Homes and TRI Pointe Group as co-issuers of the 2019 Notes and 2024 Notes







Condensed Consolidating Statement of Operations (in thousands):
 
Nine Months Ended September 30, 2016
 
Issuer (1)
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Homebuilding:
 
 
 
 
 
 
 
Home sales revenue
$
452,553

 
$
1,106,080

 
$
—

 
$
1,558,633

Land and lot sales revenue
—

 
70,204

 
—

 
70,204

Other operations revenue
—

 
1,790

 
—

 
1,790

Total revenues
452,553

 
1,178,074

 
—

 
1,630,627

Cost of home sales
383,574

 
835,986

 
—

 
1,219,560

Cost of land and lot sales
—

 
16,973

 
—

 
16,973

Other operations expense
—

 
1,724

 
—

 
1,724

Sales and marketing
19,683

 
70,938

 
—

 
90,621

General and administrative
42,984

 
46,831

 
—

 
89,815

Restructuring charges
—

 
478

 
—

 
478

Homebuilding income from operations
6,312

 
205,144

 
—

 
211,456

Equity in income of unconsolidated entities
—

 
181

 
—

 
181

Other income, net
157

 
130

 
—

 
287

Homebuilding income before income taxes
6,469

 
205,455

 
—

 
211,924

Financial Services:
 
 
 
 
 
 
 
Revenues
—

 
762

 
—

 
762

Expenses
—

 
183

 
—

 
183

Equity in income of unconsolidated entities
—

 
3,246

 
—

 
3,246

Financial services income before income taxes
—

 
3,825

 
—

 
3,825

Income before income taxes
6,469

 
209,280

 
—

 
215,749

Equity of net income of subsidiaries
135,024

 
—

 
(135,024
)
 
—

Provision for income taxes
(4,183
)
 
(73,518
)
 


 
(77,701
)
Net income
137,310

 
135,762

 
(135,024
)
 
138,048

Net income attributable to noncontrolling interests
—

 
(738
)
 
—

 
(738
)
Net income available to common stockholders
$
137,310

 
$
135,024

 
$
(135,024
)
 
$
137,310

__________
(1) 
References to “Issuer” in this Note 20, Supplemental Guarantor Information have the following meanings:
a. 
for periods prior to July 7, 2015: TRI Pointe Homes only
b. 
for periods from and after July 7, 2015:  TRI Pointe Homes and TRI Pointe Group as co-issuers of the 2019 Notes and 2024 Notes



Condensed Consolidating Statement of Operations (in thousands):
 
Nine Months Ended September 30, 2015
 
Issuer (1)
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Homebuilding:
 
 
 
 
 
 
 
Home sales revenue
$
461,654

 
$
982,201

 
$
—

 
$
1,443,855

Land and lot sales revenue
—

 
74,366

 
—

 
74,366

Other operations revenue
—

 
2,213

 
—

 
2,213

Total revenues
461,654

 
1,058,780

 
—

 
1,520,434

Cost of home sales
376,100

 
773,091

 
—

 
1,149,191

Cost of land and lot sales
—

 
17,324

 
—

 
17,324

Other operations expense
—

 
1,704

 
—

 
1,704

Sales and marketing
17,714

 
61,244

 
—

 
78,958

General and administrative
38,874

 
44,276

 
—

 
83,150

Restructuring charges
(169
)
 
2,899

 
—

 
2,730

Homebuilding income from operations
29,135

 
158,242

 
—

 
187,377

Equity in loss of unconsolidated entities
—

 
(82
)
 
—

 
(82
)
Other (loss) income, net
(149
)
 
421

 
—

 
272

Homebuilding income before income taxes
28,986

 
158,581

 
—

 
187,567

Financial Services:
 
 
 
 
 
 
 
Revenues
—

 
482

 
—

 
482

Expenses
—

 
131

 
—

 
131

Equity in loss of unconsolidated entities
—

 
(2
)
 
—

 
(2
)
Financial services loss before income taxes
—

 
349

 
—

 
349

Income before income taxes
28,986

 
158,930

 
—

 
187,916

Equity of net income of subsidiaries
103,688

 
—

 
(103,688
)
 
—

Provision for income taxes
(12,285
)
 
(53,803
)
 
—

 
(66,088
)
Net income
120,389

 
105,127

 
(103,688
)
 
121,828

Net income attributable to noncontrolling interests
—

 
(1,439
)
 
—

 
(1,439
)
Net income available to common stockholders
$
120,389

 
$
103,688

 
$
(103,688
)
 
$
120,389

__________
(1) 
References to “Issuer” in this Note 20, Supplemental Guarantor Information have the following meanings:
a. 
for periods prior to July 7, 2015: TRI Pointe Homes only
b. 
for periods from and after July 7, 2015:  TRI Pointe Homes and TRI Pointe Group as co-issuers of the 2019 Notes and 2024 Notes


Condensed Consolidating Statement of Cash Flows (in thousands):
 
 
Nine Months Ended September 30, 2016
 
Issuer (1)
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Cash flows from operating activities
 
 
 
 
 
 
 
Net cash used in operating activities
$
(186,487
)
 
$
(74,820
)
 
$
—

 
$
(261,307
)
Cash flows from investing activities:
 
 
 
 
 
 
 
Purchases of property and equipment
(831
)
 
(1,225
)
 
—

 
(2,056
)
Investments in unconsolidated entities
—

 
(32
)
 
—

 
(32
)
Intercompany
(82,951
)
 
—

 
82,951

 
—

Net cash (used in) provided by investing activities
(83,782
)
 
(1,257
)
 
82,951

 
(2,088
)
Cash flows from financing activities:
 
 
 
 
 
 
 
Borrowings from debt
491,069

 
—

 
—

 
491,069

Repayment of debt
(276,426
)
 
(400
)
 
—

 
(276,826
)
Debt issuance costs
(5,061
)
 
—

 
—

 
(5,061
)
Net repayments of debt held by variable interest entities
—

 
(2,442
)
 
—

 
(2,442
)
Contributions from noncontrolling interests
—

 
1,955

 
—

 
1,955

Distributions to noncontrolling interests
—

 
(5,059
)
 
—

 
(5,059
)
Proceeds from issuance of common stock under
   share-based awards
461

 
—

 
—

 
461

Minimum tax withholding paid on behalf of employees for
   restricted stock units
(1,359
)
 
—

 
—

 
(1,359
)
Share repurchases
(25,113
)
 
—

 
—

 
(25,113
)
Intercompany
—

 
82,951

 
(82,951
)
 
—

Net cash provided by (used in) financing activities
183,571

 
77,005

 
(82,951
)
 
177,625

Net decrease in cash and cash equivalents
(86,698
)
 
928

 
—

 
(85,770
)
Cash and cash equivalents - beginning of period
147,771

 
66,714

 
—

 
214,485

Cash and cash equivalents - end of period
$
61,073

 
$
67,642

 
$
—

 
$
128,715

__________
(1) 
References to “Issuer” in this Note 20, Supplemental Guarantor Information have the following meanings:
a. 
for periods prior to July 7, 2015: TRI Pointe Homes only
b. 
for periods from and after July 7, 2015:  TRI Pointe Homes and TRI Pointe Group as co-issuers of the 2019 Notes and 2024 Notes



Condensed Consolidating Statement of Cash Flows (in thousands):
 
 
Nine Months Ended September 30, 2015
 
Issuer (1)
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Cash flows from operating activities
 
 
 
 
 
 
 
Net cash used in operating activities
$
(69,362
)
 
$
(70,649
)
 
$
—

 
$
(140,011
)
Cash flows from investing activities:
 
 
 
 
 
 
 
Purchases of property and equipment
(382
)
 
(677
)
 
—

 
(1,059
)
Investments in unconsolidated entities
—

 
(1,458
)
 
—

 
(1,458
)
Distributions from unconsolidated entities
—

 
319

 
—

 
319

Intercompany
(78,354
)
 
—

 
78,354

 
—

Net cash (used in) provided by investing activities
(78,736
)
 
(1,816
)
 
78,354

 
(2,198
)
Cash flows from financing activities:
 
 
 
 
 
 
 
Borrowings from notes payable
140,000

 
—

 
—

 
140,000

Repayment of notes payable
(57,513
)
 
(200
)
 
—

 
(57,713
)
Debt issuance costs
(2,688
)
 
—

 
—

 
(2,688
)
Net proceeds of debt held by variable interest entities
—

 
(5,927
)
 
—

 
(5,927
)
Contributions from noncontrolling interests
—

 
4,281

 
—

 
4,281

Distributions to noncontrolling interests
—

 
(9,198
)
 
—

 
(9,198
)
Proceeds from issuance of common stock under
   share-based awards
1,616

 
—

 
—

 
1,616

Excess tax benefit of share-based awards
—

 
392

 
—

 
392

Minimum tax withholding paid on behalf of employees for restricted stock units
(2,190
)
 
—

 
—

 
(2,190
)
Intercompany
—

 
78,354

 
(78,354
)
 
—

Net cash provided by (used in) financing activities
79,225

 
67,702

 
(78,354
)
 
68,573

Net decrease increase in cash and cash equivalents
(68,873
)
 
(4,763
)
 
—

 
(73,636
)
Cash and cash equivalents - beginning of period
105,888

 
64,741

 
—

 
170,629

Cash and cash equivalents - end of period
$
37,015

 
$
59,978

 
$
—

 
$
96,993

__________
(1) 
References to “Issuer” in this Note 20, Supplemental Guarantor Information have the following meanings:
a. 
for periods prior to July 7, 2015: TRI Pointe Homes only
b. 
for periods from and after July 7, 2015:  TRI Pointe Homes and TRI Pointe Group as co-issuers of the 2019 Notes and 2024 Notes
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Policies)
Organization, Formation of TRI Pointe Group and Basis of Presentation 
Organization
TRI Pointe Group is engaged in the design, construction and sale of innovative single-family attached and detached homes through its portfolio of six quality brands across eight states, including Maracay Homes in Arizona, Pardee Homes in California and Nevada, Quadrant Homes in Washington, Trendmaker Homes in Texas, TRI Pointe Homes in California and Colorado and Winchester Homes in Maryland and Virginia.
Formation of TRI Pointe Group
On July 7, 2015, TRI Pointe Homes reorganized its corporate structure (the “Reorganization”) whereby TRI Pointe Homes became a direct, wholly owned subsidiary of TRI Pointe Group.  As a result of the Reorganization, each share of common stock, par value $0.01 per share, of TRI Pointe Homes (“Homes Common Stock”) was cancelled and converted automatically into the right to receive one validly issued, fully paid and non-assessable share of common stock, par value $0.01 per share, of TRI Pointe Group (“Group Common Stock”), each share having the same designations, rights, powers and preferences, and the qualifications, limitations and restrictions thereof as the shares of Homes Common Stock being so converted.  TRI Pointe Group, as the successor issuer to TRI Pointe Homes (pursuant to Rule 12g-3(a) under the Exchange Act), began making filings under the Securities Act and the Exchange Act on July 7, 2015.
In connection with the Reorganization, TRI Pointe Group (i) became a co-issuer of TRI Pointe Homes’ 4.375% Senior Notes due 2019 (the “2019 Notes”) and TRI Pointe Homes’ 5.875% Senior Notes due 2024 (the “2024 Notes”); and (ii) replaced TRI Pointe Homes as the borrower under TRI Pointe Homes’ existing unsecured revolving credit facility.
Basis of Presentation
The accompanying financial statements have been prepared in accordance with GAAP, as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”).
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, as well as other entities in which the Company has a controlling interest and variable interest entities (“VIEs”) in which the Company is the primary beneficiary.  The noncontrolling interests as of September 30, 2016 and December 31, 2015 represent the outside owners’ interests in the Company’s consolidated entities and the net equity of the VIE owners.  All significant intercompany accounts have been eliminated upon consolidation.  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.
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.
Reclassifications 
Reclassifications
Certain amounts in our consolidated financial statements for prior years have been reclassified to conform to the current period presentation
Recently Issued Accounting Standards 
Recently Issued Accounting Standards
In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: identify the contract(s) with a customer; identify the performance obligations in the contract; determine the transaction price; allocate the transaction price to the performance obligations in the contract; and recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 supersedes the revenue-recognition requirements in ASC Topic 605, Revenue Recognition, most industry-specific guidance throughout the industry topics of the accounting standards codification, and some cost guidance related to construction-type and production-type contracts. On July 9, 2015, the FASB voted to defer the effective date of ASU No. 2014-09 by one year and it is now effective for public entities for the annual periods ending after December 15, 2017, and for annual and interim periods thereafter.  Companies may use either a full retrospective or a modified retrospective approach to adopt ASU 2014-09.  Early adoption is permitted, but can be no earlier than the original public entity effective date of fiscal years, and the interim periods within those years, beginning after December 15, 2016.  We are currently evaluating the approach for implementation and the potential impact of adopting this guidance on our consolidated financial statements.
In August 2014, the FASB issued Accounting Standards Update No. 2014-15 (“ASU 2014-15”), Presentation of Financial Statements — Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which requires management to evaluate, in connection with preparing financial statements for each annual and interim reporting period, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable) and provide related disclosures. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early adoption is permitted. We believe the adoption of this guidance will not have a material effect on our consolidated financial statements.
In February 2015, the FASB issued Accounting Standards Update No. 2015-02, (“ASU 2015-02”), Consolidation (Topic 810): Amendments to the Consolidation Analysis.   ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. ASU 2015-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015.  We adopted ASU 2015-02 on January 1, 2016 and the adoption had no impact on our current or prior year financial statements.
In November 2015, the FASB issued Accounting Standards Update No. 2015-17, (“ASU 2015-17”), Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, which requires deferred tax liabilities and assets be classified as noncurrent in a classified statement of position.  ASU 2015-17 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016.  The adoption of ASU 2015-17 is not expected to have a material effect on our consolidated financial statements.
In February 2016, the FASB issued Accounting Standards Update No. 2016-02, (“ASU 2016-02”), Leases (Topic 842): Leases, which requires an entity to recognize assets and liabilities on the balance sheet for the rights and obligations created by leased assets and provide additional disclosures. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and, at that time, we will adopt the new standard using a modified retrospective approach. We are currently evaluating the impact that the adoption of ASU 2016-02 may have on our consolidated financial statements and disclosures.
In March 2016, the FASB issued Accounting Standards Update No. 2016-09, (“ASU 2016-09”), Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows.  ASU 2016-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. We are currently evaluating the impact that the adoption of ASU 2016-09 may have on our consolidated financial statements and disclosures.
In August 2016, the FASB issued Accounting Standards Update No. 2016-15, (“ASU 2016-15”), Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted. We are currently evaluating the impact that adoption of ASU 2016-15 may have on our consolidated financial statements and disclosures.
Segment Reporting 
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.
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
Restructuring (Tables)
Schedule of Restructuring Charges 
Restructuring charges were comprised of the following (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Employee-related charges
$
5

 
$
1,433

 
$
30

 
$
1,568

Lease termination charges
123

 
577

 
448

 
1,162

Total
$
128

 
$
2,010

 
$
478

 
$
2,730

Schedule of Changes in Restructuring Reserves 
Changes in employee-related restructuring reserves were as follows (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Accrued employee-related charges, beginning of period
$
100

 
$
109

 
$
220

 
$
3,844

Current year charges
5

 
1,433

 
30

 
1,568

Payments
(20
)
 
(1,087
)
 
(165
)
 
(4,957
)
Accrued employee-related charges, end of period
$
85

 
$
455

 
$
85

 
$
455

Schedule of Changes in Restructuring Reserves 
Changes in lease termination related restructuring reserves were as follows (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Accrued lease termination charges, beginning of period
$
447

 
$
644

 
$
767

 
$
1,394

Current year charges
123

 
577

 
448

 
1,162

Payments
(352
)
 
(705
)
 
(997
)
 
(2,040
)
Accrued lease termination charges, end of period
$
218

 
$
516

 
$
218

 
$
516

Segment Information (Tables)
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 September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Revenues
 
 
 
 
 
 
 
Maracay Homes
$
68,024

 
$
50,505

 
$
161,318

 
$
116,556

Pardee Homes
188,148

 
172,957

 
547,311

 
424,680

Quadrant Homes
48,354

 
48,173

 
153,575

 
132,698

Trendmaker Homes
64,251

 
81,044

 
172,509

 
203,235

TRI Pointe Homes
167,769

 
224,244

 
452,553

 
461,654

Winchester Homes
45,248

 
70,918

 
143,361

 
181,611

Total homebuilding revenues
581,794

 
647,841

 
1,630,627

 
1,520,434

Financial services
235

 
300

 
762

 
482

Total
$
582,029

 
$
648,141

 
$
1,631,389

 
$
1,520,916

 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
 
 
 
 
 
 
Maracay Homes
$
4,385

 
$
3,687

 
$
9,544

 
$
5,820

Pardee Homes
37,508

 
39,776

 
165,718

 
121,112

Quadrant Homes
5,497

 
3,850

 
14,808

 
6,176

Trendmaker Homes
3,516

 
7,214

 
9,439

 
17,525

TRI Pointe Homes
11,723

 
29,561

 
34,651

 
55,295

Winchester Homes
1,692

 
1,557

 
6,345

 
7,948

Corporate
(10,288
)
 
(8,255
)
 
(28,581
)
 
(26,309
)
Total homebuilding income before income taxes
54,033

 
77,390

 
211,924

 
187,567

Financial services
1,410

 
400

 
3,825

 
349

Total
$
55,443

 
$
77,790

 
$
215,749

 
$
187,916

 
Total real estate inventories and total assets for each of our reportable segments, as of the date indicated, were as follows (in thousands):
 
September 30, 2016
 
December 31, 2015
Real estate inventories
 
 
 
Maracay Homes
$
252,094

 
$
206,912

Pardee Homes
1,109,262

 
1,011,982

Quadrant Homes
217,430

 
190,038

Trendmaker Homes
221,201

 
199,398

TRI Pointe Homes
877,941

 
659,130

Winchester Homes
291,220

 
251,813

Total
$
2,969,148

 
$
2,519,273

 
 
 
 
Total assets
 
 
 
Maracay Homes
$
272,928

 
$
227,857

Pardee Homes
1,182,282

 
1,089,586

Quadrant Homes
237,959

 
202,024

Trendmaker Homes
236,618

 
213,562

TRI Pointe Homes
1,047,975

 
832,423

Winchester Homes
314,069

 
278,374

Corporate
192,654

 
292,169

Total homebuilding assets
3,484,485

 
3,135,995

Financial services
5,418

 
2,076

Total
$
3,489,903

 
$
3,138,071

Earnings Per Share (Tables)
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 September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Numerator:
 

 
 

 
 

 
 

Net income available to common stockholders
$
34,834

 
$
50,162

 
$
137,310

 
$
120,389

Denominator:
 

 
 

 
 

 
 

Basic weighted-average shares outstanding
160,614,055

 
161,772,893

 
161,456,520

 
161,651,177

Effect of dilutive shares:
 

 
 
 
 

 
 

Stock options and unvested restricted stock units
653,454

 
593,851

 
459,832

 
648,105

Diluted weighted-average shares outstanding
161,267,509

 
162,366,744

 
161,916,352

 
162,299,282

Earnings per share
 

 
 

 
 

 
 

Basic
$
0.22

 
$
0.31

 
$
0.85

 
$
0.74

Diluted
$
0.22

 
$
0.31

 
$
0.85

 
$
0.74

Antidilutive stock options and unvested restricted stock not included in diluted earnings per share
3,806,396

 
2,260,532

 
4,551,337

 
2,462,268

Receivables (Tables)
Components of Receivables
Receivables consisted of the following (in thousands):
 
September 30, 2016
 
December 31, 2015
Escrow proceeds and other accounts receivable, net
$
25,619

 
$
32,917

Warranty insurance receivable (Note 14)
9,702

 
10,493

Notes and contracts receivable
—

 
300

Total receivables
$
35,321

 
$
43,710

Real Estate Inventories (Tables)
Summary of Real Estate Inventories 
Real estate inventories consisted of the following (in thousands):
 
September 30, 2016
 
December 31, 2015
Real estate inventories owned:
 
 
 
Homes completed or under construction
$
757,707

 
$
575,076

Land under development
1,720,126

 
1,443,461

Land held for future development
298,841

 
295,241

Model homes
140,566

 
140,232

Total real estate inventories owned
2,917,240

 
2,454,010

Real estate inventories not owned:
 
 
 
Land purchase and land option deposits
29,608

 
39,055

Consolidated inventory held by VIEs
22,300

 
26,208

Total real estate inventories not owned
51,908

 
65,263

Total real estate inventories
$
2,969,148

 
$
2,519,273

Summary of Interest Incurred, Capitalized and Expensed 
Interest incurred, capitalized and expensed were as follows (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Interest incurred
$
18,601

 
$
15,454

 
$
50,030

 
$
45,779

Interest capitalized
(18,601
)
 
(15,454
)
 
(50,030
)
 
(45,779
)
Interest expensed
$
—

 
$
—

 
$
—

 
$
—

Capitalized interest in beginning inventory
$
151,347

 
$
140,106

 
$
140,311

 
$
124,461

Interest capitalized as a cost of inventory
18,601

 
15,454

 
50,030

 
45,779

Interest previously capitalized as a cost of inventory,
   included in cost of sales
(14,415
)
 
(13,339
)
 
(34,808
)
 
(28,019
)
Capitalized interest in ending inventory
$
155,533

 
$
142,221

 
$
155,533

 
$
142,221

Schedule of Land and Lot Option Abandonments and Pre-acquisition Charges 
Land and lot option abandonments and pre-acquisition charges were as follows (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Real estate inventory impairments
$
—

 
$
29

 
$
—

 
$
1,073

Land and lot option abandonments and pre-acquisition charges
389

 
336

 
678

 
830

Total
$
389

 
$
365

 
$
678

 
$
1,903

Investments in Unconsolidated Entities (Tables)
Schedule of Cumulative Investment in Entities on Equity Method, Including Share of Earnings and Losses 
Our cumulative investment in entities accounted for on the equity method, including our share of earnings and losses, consisted of the following (in thousands):
 
September 30, 2016
 
December 31, 2015
Limited liability company interests
$
13,946

 
$
15,739

General partnership interests
3,259

 
3,260

Total
$
17,205

 
$
18,999

Aggregated Assets, Liabilities and Operating Results of Entities as Equity-Method Investments 
Assets and liabilities of unconsolidated entities (in thousands):
 
 
September 30, 2016
 
December 31, 2015
Assets
 
 
 
Cash
$
11,945

 
$
18,641

Receivables
10,038

 
13,108

Real estate inventories
96,654

 
92,881

Other assets
1,065

 
1,180

Total assets
$
119,702

 
$
125,810

Liabilities and equity
 
 
 
Accounts payable and other liabilities
$
12,932

 
$
14,443

Company’s equity
17,205

 
18,999

Outside interests' equity
89,565

 
92,368

Total liabilities and equity
$
119,702

 
$
125,810

 
Results of operations from unconsolidated entities (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Net sales
$
4,619

 
$
1,217

 
$
12,516

 
$
2,670

Other operating expense
(2,913
)
 
(1,479
)
 
(8,067
)
 
(4,020
)
Other income (loss)
1

 
(263
)
 
3

 
(256
)
Net income (loss)
$
1,707

 
$
(525
)
 
$
4,452

 
$
(1,606
)
Company’s equity in income (loss) of unconsolidated entities
$
1,227

 
$
(3
)
 
$
3,427

 
$
(84
)
Variable Interest Entities (Tables)
Summary of Interests in Land Option Agreements
The following provides a summary of our interests in land and lot option agreements (in thousands):
 
September 30, 2016
 
December 31, 2015
 
Deposits
 
Remaining
Purchase
Price
 
Consolidated
Inventory
Held by VIEs
 
Deposits
 
Remaining
Purchase
Price
 
Consolidated
Inventory
Held by VIEs
Consolidated VIEs
$
600

 
$
21,700

 
$
22,300

 
$
3,003

 
$
23,239

 
$
26,208

Unconsolidated VIEs
2,170

 
58,135

 
N/A

 
11,615

 
74,590

 
N/A

Other land option agreements
27,438

 
365,224

 
N/A

 
27,440

 
279,612

 
N/A

Total
$
30,208

 
$
445,059

 
$
22,300

 
$
42,058

 
$
377,441

 
$
26,208

Goodwill and Other Intangible Assets (Tables)
Schedule of Goodwill and Other Intangible Assets 
Goodwill and other intangible assets consisted of the following (in thousands):
 
September 30, 2016
 
December 31, 2015
 
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 names
27,979

 
(5,654
)
 
22,325

 
27,979

 
(5,254
)
 
22,725

Total
$
167,283

 
$
(5,654
)
 
$
161,629

 
$
167,283

 
$
(5,254
)
 
$
162,029

Schedule of Expected Amortization of Intangible Asset 
Expected amortization of our intangible asset related to Maracay Homes for the remainder of 2016, the next four years and thereafter is (in thousands):
Remainder of 2016
$
134

2017
534

2018
534

2019
534

2020
534

Thereafter
2,755

Total
$
5,025

Other Assets (Tables)
Schedule of Other Assets
Other assets consisted of the following (in thousands):
 
September 30, 2016
 
December 31, 2015
Prepaid expenses
$
14,899

 
$
14,523

Refundable fees and other deposits
21,695

 
17,056

Development rights, held for future use or sale
4,227

 
4,360

Deferred loan costs - unsecured revolving credit facility
2,319

 
2,179

Operating properties and equipment, net
9,525

 
7,643

Income tax receivable
10,633

 
—

Other
2,700

 
3,157

Total
$
65,998

 
$
48,918

Accrued Expenses and Other Liabilities (Tables)
Schedule of Accrued Expenses and Other Liabilities
Accrued expenses and other liabilities consisted of the following (in thousands):
 
September 30, 2016
 
December 31, 2015
Accrued payroll and related costs
$
23,126

 
$
28,264

Warranty reserves (Note 14)
45,665

 
45,948

Estimated cost for completion of real estate inventories
53,218

 
52,818

Customer deposits
19,428

 
12,132

Debt (nonrecourse) held by VIEs
—

 
2,442

Income tax liability to Weyerhaeuser (Note 17)
8,999

 
8,900

Accrued income taxes payable
—

 
19,279

Liability for uncertain tax positions (Note 17)
—

 
307

Accrued interest
19,240

 
2,417

Accrued insurance expense
2,529

 
1,402

Other tax liability
30,459

 
21,764

Other
16,732

 
20,590

Total
$
219,396

 
$
216,263

Senior Notes, Unsecured Revolving Credit Facility and Seller Financed Loans (Tables)
Schedule of Senior Notes 
The Senior Notes consisted of the following (in thousands):
 
 
September 30, 2016
 
December 31, 2015
4.375% Senior Notes due June 15, 2019
$
450,000

 
$
450,000

4.875% Senior Notes due July 1, 2021
300,000

 
—

5.875% Senior Notes due June 15, 2024
450,000

 
450,000

Discount and deferred loan costs
(33,276
)
 
(31,321
)
Total
$
1,166,724

 
$
868,679

Components of Unsecured Revolving Credit Facility 
Unsecured revolving credit facility consisted of the following (in thousands):
 
September 30, 2016
 
December 31, 2015
Unsecured revolving credit facility
$
200,000

 
$
299,392

Components of Seller Financed Loans 
Seller financed loans consisted of the following (in thousands):
 
September 30, 2016
 
December 31, 2015
Seller financed loans
$
17,758

 
$
2,434

Fair Value Disclosures (Tables)
Summary of Assets and Liabilities Related to Financial Instruments, Measured at Fair Value on a Recurring Basis 
A summary of assets and liabilities at September 30, 2016 and December 31, 2015, related to our financial instruments, measured at fair value on a recurring basis, is set forth below (in thousands):
 
 
 
September 30, 2016
 
December 31, 2015
 
Hierarchy
 
Book Value
 
Fair Value
 
Book Value
 
Fair Value
Senior Notes (1)
Level 2
 
$
1,188,686

 
$
1,235,250

 
$
889,054

 
$
881,460

Unsecured revolving credit facility (2)
Level 2
 
$
200,000

 
$
192,772

 
$
299,392

 
$
299,392

Seller financed loans (3)
Level 2
 
$
17,758

 
$
17,758

 
$
2,434

 
$
2,368

 __________
(1) 
The book value of the Senior Notes is net of discounts, excluding deferred loan costs of $22.0 million and $20.4 million as of September 30, 2016 and December 31, 2015, respectively. The estimated fair value of the Senior Notes at September 30, 2016 and December 31, 2015 is based on quoted market prices.
(2) 
The estimated fair value of the Credit Facility at September 30, 2016 is based on a treasury curve analysis. We believe that the carrying value of the Credit Facility approximated fair value at December 31, 2015 due to the short term nature of the current rate amended on May 18, 2015.
(3) 
The estimated fair value of the seller financed loans at September 30, 2016 and December 31, 2015 is based on a treasury curve analysis.

Summary of Nonfinancial Assets Measured at Fair Value on a Nonrecurring Basis 
The following table presents impairment charges and the remaining net fair value for nonfinancial assets that were measured during the periods presented (in thousands):
 
Nine Months Ended September 30, 2016
 
Year Ended December 31, 2015
 
Impairment
Charge
 
Fair Value
Net of
Impairment
 
Impairment
Charge
 
Fair Value
Net of
Impairment
Real estate inventories (1)
$
—

 
$
—

 
$
1,167

 
$
28,540

_______________
(1) 
Fair value of real estate inventories, net of impairment charges represents only those assets whose carrying values were adjusted to fair value in the respective periods presented. The fair value of these real estate inventories impaired was determined based on recent offers received from outside third parties or actual contracts.
Commitments and Contingencies (Tables)
Schedule of Warranty Reserves
Warranty reserves consisted of the following (in thousands):
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Warranty reserves, beginning of period
$
45,272

 
$
35,375

 
$
45,948

 
$
33,270

Warranty reserves accrued
3,329

 
4,201

 
8,373

 
10,427

Adjustments to pre-existing reserves
200

 
(14
)
 
460

 
1,286

Warranty expenditures
(3,136
)
 
(2,819
)
 
(9,116
)
 
(8,240
)
Warranty reserves, end of period
$
45,665

 
$
36,743

 
$
45,665

 
$
36,743

Stock-Based Compensation (Tables)
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 September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Total stock-based compensation
$
3,285

 
$
2,994

 
$
9,648

 
$
8,536

Summary of Stock Option Awards 
The following table presents a summary of stock option awards for the nine months ended September 30, 2016:
 
Options
 
Weighted
Average
Exercise
Price
Per Share
 
Weighted
Average
Remaining
Contractual
Life
 
Aggregate
Intrinsic
Value
(in thousands)
Options outstanding at December 31, 2015
3,220,147

 
$
13.12

 
5.2

 
$
3,081

Granted
—

 
—

 
—

 
—

Exercised
(79,689
)
 
9.89

 
—

 
—

Forfeited
(155,380
)
 
12.39

 
—

 
—

Options outstanding at September 30, 2016
2,985,078

 
13.24

 
4.6

 
3,282

Options exercisable at September 30, 2016
2,616,544

 
13.05

 
4.3

 
3,282

Summary of Restricted Stock Units 
The following table presents a summary of restricted stock units (“RSUs”) for the nine months ended September 30, 2016:
 
Restricted
Stock
Units
 
Weighted
Average
Grant Date
Fair Value
Per Share
 
Aggregate
Intrinsic
Value
(in thousands)
Nonvested RSUs at December 31, 2015
1,958,033

 
$
12.21

 
$
24,808

Granted
1,904,389

 
8.41

 
25,100

Vested
(431,758
)
 
14.53

 
—

Forfeited
(19,781
)
 
12.17

 
—

Nonvested RSUs at September 30, 2016
3,410,883

 
9.77

 
44,993

Supplemental Disclosure to Consolidated Statements of Cash Flows (Tables)
Supplemental Disclosure to Consolidated Statements of Cash Flows
The following are supplemental disclosures to the consolidated statements of cash flows (in thousands):
 
Nine Months Ended September 30,
 
2016
 
2015
Supplemental disclosure of cash flow information:
 
 
 
Cash paid during the period for:
 
 
 
Interest, net of amounts capitalized of $50,030 and $45,779 (Note 6)
$
—

 
$
—

Income taxes
$
89,269

 
$
44,394

Supplemental disclosures of noncash activities:
 
 
 
Amortization of senior note discount capitalized to real estate inventory
$
1,321

 
$
1,155

Amortization of deferred loan costs capitalized to real estate inventory
$
2,865

 
$
2,690

Effect of net consolidation and de-consolidation of variable interest entities:
 
 
 
Increase (decrease) in consolidated real estate inventory not owned
$
3,484

 
$
(3,556
)
Increase in deposits on real estate under option or contract and other assets
$
—

 
$
300

(Increase) decrease in noncontrolling interests
$
(3,484
)
 
$
3,256

Supplemental Guarantor Information (Tables)
Condensed Consolidating Balance Sheet 
Condensed Consolidating Balance Sheet (in thousands):
 
 
September 30, 2016
 
Issuer (1)
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
61,073

 
$
67,642

 
$
—

 
$
128,715

Receivables
12,496

 
22,825

 
—

 
35,321

Intercompany receivables
856,866

 
—

 
(856,866
)
 
—

Real estate inventories
877,940

 
2,091,208

 
—

 
2,969,148

Investments in unconsolidated entities
—

 
17,205

 
—

 
17,205

Goodwill and other intangible assets, net
156,604

 
5,025

 
—

 
161,629

Investments in subsidiaries
1,241,559

 
—

 
(1,241,559
)
 
—

Deferred tax assets, net
18,958

 
92,929

 
—

 
111,887

Other assets
9,266

 
56,732

 
—

 
65,998

Total Assets
$
3,234,762

 
$
2,353,566

 
$
(2,098,425
)
 
$
3,489,903

 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
Accounts payable
$
21,099

 
$
56,568

 
$
—

 
$
77,667

Intercompany payables
—

 
856,866

 
(856,866
)
 
—

Accrued expenses and other liabilities
43,721

 
175,675

 
—

 
219,396

Unsecured revolving credit facility
200,000

 
—

 
—

 
200,000

Seller financed loans
17,758

 
—

 
—

 
17,758

Senior notes
1,166,724

 
—

 
—

 
1,166,724

Total Liabilities
1,449,302

 
1,089,109

 
(856,866
)
 
1,681,545

 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
Total stockholders’ equity
1,785,460

 
1,241,559

 
(1,241,559
)
 
1,785,460

Noncontrolling interests
—

 
22,898

 
—

 
22,898

Total Equity
1,785,460

 
1,264,457

 
(1,241,559
)
 
1,808,358

Total Liabilities and Equity
$
3,234,762

 
$
2,353,566

 
$
(2,098,425
)
 
$
3,489,903

__________
(1) 
References to “Issuer” in this Note 20, Supplemental Guarantor Information have the following meanings:
a. 
for periods prior to July 7, 2015: TRI Pointe Homes only
b. 
for periods from and after July 7, 2015:  TRI Pointe Homes and TRI Pointe Group as co-issuers of the 2019 Notes and 2024 Notes


Condensed Consolidating Balance Sheet (in thousands):
 
 
December 31, 2015
 
Issuer (1)
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
147,771

 
$
66,714

 
$
—

 
$
214,485

Receivables
17,358

 
26,352

 
—

 
43,710

Intercompany receivables
783,956

 
—

 
(783,956
)
 
—

Real estate inventories
657,221

 
1,862,052

 
—

 
2,519,273

Investments in unconsolidated entities
—

 
18,999

 
—

 
18,999

Goodwill and other intangible assets, net
156,604

 
5,425

 
—

 
162,029

Investments in subsidiaries
1,093,261

 
—

 
(1,093,261
)
 
—

Deferred tax assets, net
19,061

 
111,596

 
—

 
130,657

Other assets
12,219

 
36,699

 
—

 
48,918

Total Assets
$
2,887,451

 
$
2,127,837

 
$
(1,877,217
)
 
$
3,138,071

 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
Accounts payable
$
20,444

 
$
44,396

 
$
—

 
$
64,840

Intercompany payables
—

 
783,956

 
(783,956
)
 
—

Accrued expenses and other liabilities
32,219

 
184,044

 
—

 
216,263

Unsecured revolving credit facility
299,392

 
—

 
—

 
299,392

Seller financed loans
2,034

 
400

 
—

 
2,434

Senior notes
868,679

 
—

 
—

 
868,679

Total Liabilities
1,222,768

 
1,012,796

 
(783,956
)
 
1,451,608

 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
Total stockholders’ equity
1,664,683

 
1,093,261

 
(1,093,261
)
 
1,664,683

Noncontrolling interests
—

 
21,780

 
—

 
21,780

Total Equity
1,664,683

 
1,115,041

 
(1,093,261
)
 
1,686,463

Total Liabilities and Equity
$
2,887,451

 
$
2,127,837

 
$
(1,877,217
)
 
$
3,138,071

__________
(1) 
References to “Issuer” in this Note 20, Supplemental Guarantor Information have the following meanings:
a. 
for periods prior to July 7, 2015: TRI Pointe Homes only
b. 
for periods from and after July 7, 2015:  TRI Pointe Homes and TRI Pointe Group as co-issuers of the 2019 Notes and 2024 Notes

Condensed Consolidating Statement of Operations 
Condensed Consolidating Statement of Operations (in thousands):
 
 
Three Months Ended September 30, 2016
 
Issuer (1)
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Homebuilding:
 
 
 
 
 
 
 
Home sales revenue
$
167,769

 
$
410,884

 
$
—

 
$
578,653

Land and lot sales revenue
—

 
2,535

 
—

 
2,535

Other operations revenue
—

 
606

 
—

 
606

Total revenues
167,769

 
414,025

 
—

 
581,794

Cost of home sales
144,217

 
318,106

 
—

 
462,323

Cost of land and lot sales
—

 
1,734

 
—

 
1,734

Other operations expense
—

 
575

 
—

 
575

Sales and marketing
6,598

 
25,254

 
—

 
31,852

General and administrative
15,192

 
15,958

 
—

 
31,150

Restructuring charges
—

 
128

 
—

 
128

Homebuilding income from operations
1,762

 
52,270

 
—

 
54,032

Equity in loss of unconsolidated entities
—

 
(20
)
 
—

 
(20
)
Other (loss) income, net
(345
)
 
366

 
—

 
21

Homebuilding income before income taxes
1,417

 
52,616

 
—

 
54,033

Financial Services:
 
 
 
 
 
 
 
Revenues
—

 
235

 
—

 
235

Expenses
—

 
72

 
—

 
72

Equity in income of unconsolidated entities
—

 
1,247

 
—

 
1,247

Financial services income before income taxes
—

 
1,410

 
—

 
1,410

Income before income taxes
1,417

 
54,026

 
—

 
55,443

Equity of net income of subsidiaries
34,639

 
—

 
(34,639
)
 
—

Provision for income taxes
(1,222
)
 
(19,076
)
 
—

 
(20,298
)
Net income
34,834

 
34,950

 
(34,639
)
 
35,145

Net income attributable to noncontrolling interests
—

 
(311
)
 
—

 
(311
)
Net income available to common stockholders
$
34,834

 
$
34,639

 
$
(34,639
)
 
$
34,834

__________
(1) 
References to “Issuer” in this Note 20, Supplemental Guarantor Information have the following meanings:
a. 
for periods prior to July 7, 2015: TRI Pointe Homes only
b. 
for periods from and after July 7, 2015:  TRI Pointe Homes and TRI Pointe Group as co-issuers of the 2019 Notes and 2024 Notes


 
Condensed Consolidating Statement of Operations (in thousands):
 
 
Three Months Ended September 30, 2015
 
Issuer (1)
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Homebuilding:
 
 
 
 
 
 
 
Home sales revenue
$
224,244

 
$
418,108

 
$
—

 
$
642,352

Land and lot sales revenue
—

 
4,876

 
—

 
4,876

Other operations revenue
—

 
613

 
—

 
613

Total revenues
224,244

 
423,597

 
—

 
647,841

Cost of home sales
182,754

 
324,789

 
—

 
507,543

Cost of land and lot sales
—

 
3,451

 
—

 
3,451

Other operations expense
—

 
570

 
—

 
570

Sales and marketing
7,286

 
22,752

 
—

 
30,038

General and administrative
12,942

 
13,794

 
—

 
26,736

Restructuring charges
(83
)
 
2,093

 
—

 
2,010

Homebuilding income from operations
21,345

 
56,148

 
—

 
77,493

Equity in loss of unconsolidated entities
—

 
(150
)
 
—

 
(150
)
Other (loss) income, net
(37
)
 
84

 
—

 
47

Homebuilding income before income taxes
21,308

 
56,082

 
—

 
77,390

Financial Services:
 
 
 
 
 
 
 
Revenues
—

 
300

 
—

 
300

Expenses
—

 
47

 
—

 
47

Equity in income of unconsolidated entities
—

 
147

 
—

 
147

Financial services income before income taxes
—

 
400

 
—

 
400

Income before income taxes
21,308

 
56,482

 
—

 
77,790

Equity of net income of subsidiaries
37,924

 
—

 
(37,924
)
 
—

Provision for income taxes
(9,070
)
 
(18,951
)
 
—

 
(28,021
)
Net income
50,162

 
37,531

 
(37,924
)
 
49,769

Net income attributable to noncontrolling interests
—

 
393

 
—

 
393

Net income available to common stockholders
$
50,162

 
$
37,924

 
$
(37,924
)
 
$
50,162

__________
(1) 
References to “Issuer” in this Note 20, Supplemental Guarantor Information have the following meanings:
a. 
for periods prior to July 7, 2015: TRI Pointe Homes only
b. 
for periods from and after July 7, 2015:  TRI Pointe Homes and TRI Pointe Group as co-issuers of the 2019 Notes and 2024 Notes







Condensed Consolidating Statement of Operations (in thousands):
 
Nine Months Ended September 30, 2016
 
Issuer (1)
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Homebuilding:
 
 
 
 
 
 
 
Home sales revenue
$
452,553

 
$
1,106,080

 
$
—

 
$
1,558,633

Land and lot sales revenue
—

 
70,204

 
—

 
70,204

Other operations revenue
—

 
1,790

 
—

 
1,790

Total revenues
452,553

 
1,178,074

 
—

 
1,630,627

Cost of home sales
383,574

 
835,986

 
—

 
1,219,560

Cost of land and lot sales
—

 
16,973

 
—

 
16,973

Other operations expense
—

 
1,724

 
—

 
1,724

Sales and marketing
19,683

 
70,938

 
—

 
90,621

General and administrative
42,984

 
46,831

 
—

 
89,815

Restructuring charges
—

 
478

 
—

 
478

Homebuilding income from operations
6,312

 
205,144

 
—

 
211,456

Equity in income of unconsolidated entities
—

 
181

 
—

 
181

Other income, net
157

 
130

 
—

 
287

Homebuilding income before income taxes
6,469

 
205,455

 
—

 
211,924

Financial Services:
 
 
 
 
 
 
 
Revenues
—

 
762

 
—

 
762

Expenses
—

 
183

 
—

 
183

Equity in income of unconsolidated entities
—

 
3,246

 
—

 
3,246

Financial services income before income taxes
—

 
3,825

 
—

 
3,825

Income before income taxes
6,469

 
209,280

 
—

 
215,749

Equity of net income of subsidiaries
135,024

 
—

 
(135,024
)
 
—

Provision for income taxes
(4,183
)
 
(73,518
)
 


 
(77,701
)
Net income
137,310

 
135,762

 
(135,024
)
 
138,048

Net income attributable to noncontrolling interests
—

 
(738
)
 
—

 
(738
)
Net income available to common stockholders
$
137,310

 
$
135,024

 
$
(135,024
)
 
$
137,310

__________
(1) 
References to “Issuer” in this Note 20, Supplemental Guarantor Information have the following meanings:
a. 
for periods prior to July 7, 2015: TRI Pointe Homes only
b. 
for periods from and after July 7, 2015:  TRI Pointe Homes and TRI Pointe Group as co-issuers of the 2019 Notes and 2024 Notes



Condensed Consolidating Statement of Operations (in thousands):
 
Nine Months Ended September 30, 2015
 
Issuer (1)
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Homebuilding:
 
 
 
 
 
 
 
Home sales revenue
$
461,654

 
$
982,201

 
$
—

 
$
1,443,855

Land and lot sales revenue
—

 
74,366

 
—

 
74,366

Other operations revenue
—

 
2,213

 
—

 
2,213

Total revenues
461,654

 
1,058,780

 
—

 
1,520,434

Cost of home sales
376,100

 
773,091

 
—

 
1,149,191

Cost of land and lot sales
—

 
17,324

 
—

 
17,324

Other operations expense
—

 
1,704

 
—

 
1,704

Sales and marketing
17,714

 
61,244

 
—

 
78,958

General and administrative
38,874

 
44,276

 
—

 
83,150

Restructuring charges
(169
)
 
2,899

 
—

 
2,730

Homebuilding income from operations
29,135

 
158,242

 
—

 
187,377

Equity in loss of unconsolidated entities
—

 
(82
)
 
—

 
(82
)
Other (loss) income, net
(149
)
 
421

 
—

 
272

Homebuilding income before income taxes
28,986

 
158,581

 
—

 
187,567

Financial Services:
 
 
 
 
 
 
 
Revenues
—

 
482

 
—

 
482

Expenses
—

 
131

 
—

 
131

Equity in loss of unconsolidated entities
—

 
(2
)
 
—

 
(2
)
Financial services loss before income taxes
—

 
349

 
—

 
349

Income before income taxes
28,986

 
158,930

 
—

 
187,916

Equity of net income of subsidiaries
103,688

 
—

 
(103,688
)
 
—

Provision for income taxes
(12,285
)
 
(53,803
)
 
—

 
(66,088
)
Net income
120,389

 
105,127

 
(103,688
)
 
121,828

Net income attributable to noncontrolling interests
—

 
(1,439
)
 
—

 
(1,439
)
Net income available to common stockholders
$
120,389

 
$
103,688

 
$
(103,688
)
 
$
120,389

__________
(1) 
References to “Issuer” in this Note 20, Supplemental Guarantor Information have the following meanings:
a. 
for periods prior to July 7, 2015: TRI Pointe Homes only
b. 
for periods from and after July 7, 2015:  TRI Pointe Homes and TRI Pointe Group as co-issuers of the 2019 Notes and 2024 Notes

Condensed Consolidating Statement of Cash Flows 
Condensed Consolidating Statement of Cash Flows (in thousands):
 
 
Nine Months Ended September 30, 2016
 
Issuer (1)
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Cash flows from operating activities
 
 
 
 
 
 
 
Net cash used in operating activities
$
(186,487
)
 
$
(74,820
)
 
$
—

 
$
(261,307
)
Cash flows from investing activities:
 
 
 
 
 
 
 
Purchases of property and equipment
(831
)
 
(1,225
)
 
—

 
(2,056
)
Investments in unconsolidated entities
—

 
(32
)
 
—

 
(32
)
Intercompany
(82,951
)
 
—

 
82,951

 
—

Net cash (used in) provided by investing activities
(83,782
)
 
(1,257
)
 
82,951

 
(2,088
)
Cash flows from financing activities:
 
 
 
 
 
 
 
Borrowings from debt
491,069

 
—

 
—

 
491,069

Repayment of debt
(276,426
)
 
(400
)
 
—

 
(276,826
)
Debt issuance costs
(5,061
)
 
—

 
—

 
(5,061
)
Net repayments of debt held by variable interest entities
—

 
(2,442
)
 
—

 
(2,442
)
Contributions from noncontrolling interests
—

 
1,955

 
—

 
1,955

Distributions to noncontrolling interests
—

 
(5,059
)
 
—

 
(5,059
)
Proceeds from issuance of common stock under
   share-based awards
461

 
—

 
—

 
461

Minimum tax withholding paid on behalf of employees for
   restricted stock units
(1,359
)
 
—

 
—

 
(1,359
)
Share repurchases
(25,113
)
 
—

 
—

 
(25,113
)
Intercompany
—

 
82,951

 
(82,951
)
 
—

Net cash provided by (used in) financing activities
183,571

 
77,005

 
(82,951
)
 
177,625

Net decrease in cash and cash equivalents
(86,698
)
 
928

 
—

 
(85,770
)
Cash and cash equivalents - beginning of period
147,771

 
66,714

 
—

 
214,485

Cash and cash equivalents - end of period
$
61,073

 
$
67,642

 
$
—

 
$
128,715

__________
(1) 
References to “Issuer” in this Note 20, Supplemental Guarantor Information have the following meanings:
a. 
for periods prior to July 7, 2015: TRI Pointe Homes only
b. 
for periods from and after July 7, 2015:  TRI Pointe Homes and TRI Pointe Group as co-issuers of the 2019 Notes and 2024 Notes



Condensed Consolidating Statement of Cash Flows (in thousands):
 
 
Nine Months Ended September 30, 2015
 
Issuer (1)
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Cash flows from operating activities
 
 
 
 
 
 
 
Net cash used in operating activities
$
(69,362
)
 
$
(70,649
)
 
$
—

 
$
(140,011
)
Cash flows from investing activities:
 
 
 
 
 
 
 
Purchases of property and equipment
(382
)
 
(677
)
 
—

 
(1,059
)
Investments in unconsolidated entities
—

 
(1,458
)
 
—

 
(1,458
)
Distributions from unconsolidated entities
—

 
319

 
—

 
319

Intercompany
(78,354
)
 
—

 
78,354

 
—

Net cash (used in) provided by investing activities
(78,736
)
 
(1,816
)
 
78,354

 
(2,198
)
Cash flows from financing activities:
 
 
 
 
 
 
 
Borrowings from notes payable
140,000

 
—

 
—

 
140,000

Repayment of notes payable
(57,513
)
 
(200
)
 
—

 
(57,713
)
Debt issuance costs
(2,688
)
 
—

 
—

 
(2,688
)
Net proceeds of debt held by variable interest entities
—

 
(5,927
)
 
—

 
(5,927
)
Contributions from noncontrolling interests
—

 
4,281

 
—

 
4,281

Distributions to noncontrolling interests
—

 
(9,198
)
 
—

 
(9,198
)
Proceeds from issuance of common stock under
   share-based awards
1,616

 
—

 
—

 
1,616

Excess tax benefit of share-based awards
—

 
392

 
—

 
392

Minimum tax withholding paid on behalf of employees for restricted stock units
(2,190
)
 
—

 
—

 
(2,190
)
Intercompany
—

 
78,354

 
(78,354
)
 
—

Net cash provided by (used in) financing activities
79,225

 
67,702

 
(78,354
)
 
68,573

Net decrease increase in cash and cash equivalents
(68,873
)
 
(4,763
)
 
—

 
(73,636
)
Cash and cash equivalents - beginning of period
105,888

 
64,741

 
—

 
170,629

Cash and cash equivalents - end of period
$
37,015

 
$
59,978

 
$
—

 
$
96,993

__________
(1) 
References to “Issuer” in this Note 20, Supplemental Guarantor Information have the following meanings:
a. 
for periods prior to July 7, 2015: TRI Pointe Homes only
b. 
for periods from and after July 7, 2015:  TRI Pointe Homes and TRI Pointe Group as co-issuers of the 2019 Notes and 2024 Notes
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Detail) (USD $)
0 Months Ended
Sep. 30, 2016
Dec. 31, 2015
Jul. 7, 2015
Sep. 30, 2016
Senior Notes [Member]
4.375% Senior notes due 2019 [Member]
Sep. 30, 2016
Senior Notes [Member]
5.875% Senior notes due 2024 [Member]
Jul. 7, 2015
TRI Pointe Homes [Member]
Jul. 7, 2015
TRI Pointe Homes [Member]
Senior Notes [Member]
4.375% Senior notes due 2019 [Member]
Jul. 7, 2015
TRI Pointe Homes [Member]
Senior Notes [Member]
5.875% Senior notes due 2024 [Member]
Organization And Summary Of Significant Accounting Policies [Line Items]
 
 
 
 
 
 
 
 
Common stock, par value (in dollars per share)
$ 0.01 
$ 0.01 
$ 0.01 
 
 
$ 0.01 
 
 
Right to receive common share upon conversion
 
 
1 
 
 
 
 
 
Interest rate on senior note (percent)
 
 
 
4.375% 
5.875% 
 
4.375% 
5.875% 
Debt instrument, maturity year
 
 
 
 
 
 
2019 
2024 
Restructuring - Schedule of Restructuring Charges (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Restructuring and Related Activities [Abstract]
 
 
 
 
Employee-related charges
$ 5 
$ 1,433 
$ 30 
$ 1,568 
Lease termination charges
123 
577 
448 
1,162 
Total
$ 128 
$ 2,010 
$ 478 
$ 2,730 
Restructuring - Schedule of Changes in Employee Related Restructuring Reserves (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Restructuring Reserve [Roll Forward]
 
 
 
 
Current year charges
$ 128 
$ 2,010 
$ 478 
$ 2,730 
Employee-Related Restructuring Reserves [Member]
 
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
 
Accrued charges, beginning of period
100 
109 
220 
3,844 
Current year charges
5 
1,433 
30 
1,568 
Payments
(20)
(1,087)
(165)
(4,957)
Accrued charges, end of period
$ 85 
$ 455 
$ 85 
$ 455 
Restructuring - Schedule of Changes in Lease Termination Related Restructuring Reserves (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Restructuring Reserve [Roll Forward]
 
 
 
 
Current year charges
$ 128 
$ 2,010 
$ 478 
$ 2,730 
Lease Termination Restructuring Reserves [Member]
 
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
 
Accrued charges, beginning of period
447 
644 
767 
1,394 
Current year charges
123 
577 
448 
1,162 
Payments
(352)
(705)
(997)
(2,040)
Accrued charges, end of period
$ 218 
$ 516 
$ 218 
$ 516 
Segment Information - Additional Information (Detail)
9 Months Ended
Sep. 30, 2016
segment
Segment Reporting [Abstract]
 
Number of principal businesses
2 
Number of homebuilding companies
6 
Number of reportable segments
6 
Segment Information - Summary of Financial Information Relating to Reportable Segments (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Dec. 31, 2015
Segment Reporting Information [Line Items]
 
 
 
 
 
Total homebuilding revenues
$ 581,794 
$ 647,841 
$ 1,630,627 
$ 1,520,434 
 
Financial services, revenues
235 
300 
762 
482 
 
Total revenues
582,029 
648,141 
1,631,389 
1,520,916 
 
Total homebuilding (loss) income before taxes
54,033 
77,390 
211,924 
187,567 
 
Financial services income (loss) before taxes
1,410 
400 
3,825 
349 
 
Income before income taxes
55,443 
77,790 
215,749 
187,916 
 
Real estate inventories
2,969,148 
 
2,969,148 
 
2,519,273 
Total homebuilding assets
3,484,485 
 
3,484,485 
 
3,135,995 
Financial services
5,418 
 
5,418 
 
2,076 
Total assets
3,489,903 
 
3,489,903 
 
3,138,071 
Operating segments [Member] |
Maracay Homes [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Total homebuilding revenues
68,024 
50,505 
161,318 
116,556 
 
Total homebuilding (loss) income before taxes
4,385 
3,687 
9,544 
5,820 
 
Real estate inventories
252,094 
 
252,094 
 
206,912 
Total homebuilding assets
272,928 
 
272,928 
 
227,857 
Operating segments [Member] |
Pardee Homes [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Total homebuilding revenues
188,148 
172,957 
547,311 
424,680 
 
Total homebuilding (loss) income before taxes
37,508 
39,776 
165,718 
121,112 
 
Real estate inventories
1,109,262 
 
1,109,262 
 
1,011,982 
Total homebuilding assets
1,182,282 
 
1,182,282 
 
1,089,586 
Operating segments [Member] |
Quadrant Homes [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Total homebuilding revenues
48,354 
48,173 
153,575 
132,698 
 
Total homebuilding (loss) income before taxes
5,497 
3,850 
14,808 
6,176 
 
Real estate inventories
217,430 
 
217,430 
 
190,038 
Total homebuilding assets
237,959 
 
237,959 
 
202,024 
Operating segments [Member] |
Trendmaker Homes [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Total homebuilding revenues
64,251 
81,044 
172,509 
203,235 
 
Total homebuilding (loss) income before taxes
3,516 
7,214 
9,439 
17,525 
 
Real estate inventories
221,201 
 
221,201 
 
199,398 
Total homebuilding assets
236,618 
 
236,618 
 
213,562 
Operating segments [Member] |
Tri Pointe [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Total homebuilding revenues
167,769 
224,244 
452,553 
461,654 
 
Total homebuilding (loss) income before taxes
11,723 
29,561 
34,651 
55,295 
 
Real estate inventories
877,941 
 
877,941 
 
659,130 
Total homebuilding assets
1,047,975 
 
1,047,975 
 
832,423 
Operating segments [Member] |
Winchester Homes [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Total homebuilding revenues
45,248 
70,918 
143,361 
181,611 
 
Total homebuilding (loss) income before taxes
1,692 
1,557 
6,345 
7,948 
 
Real estate inventories
291,220 
 
291,220 
 
251,813 
Total homebuilding assets
314,069 
 
314,069 
 
278,374 
Corporate [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Total homebuilding (loss) income before taxes
(10,288)
(8,255)
(28,581)
(26,309)
 
Total homebuilding assets
$ 192,654 
 
$ 192,654 
 
$ 292,169 
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Numerator:
 
 
 
 
Net income available to common stockholders
$ 34,834 
$ 50,162 
$ 137,310 
$ 120,389 
Denominator:
 
 
 
 
Basic weighted-average shares outstanding (shares)
160,614,055 
161,772,893 
161,456,520 
161,651,177 
Effect of dilutive shares:
 
 
 
 
Stock options and unvested restricted stock units (shares)
653,454 
593,851 
459,832 
648,105 
Diluted weighted-average shares outstanding (shares)
161,267,509 
162,366,744 
161,916,352 
162,299,282 
Earnings per share
 
 
 
 
Basic (in dollars per share)
$ 0.22 
$ 0.31 
$ 0.85 
$ 0.74 
Diluted (in dollars per share)
$ 0.22 
$ 0.31 
$ 0.85 
$ 0.74 
Antidilutive stock options and unvested restricted stock not included in diluted earnings per share (in shares)
3,806,396 
2,260,532 
4,551,337 
2,462,268 
Receivables - Components of Receivables (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Receivables [Abstract]
 
 
Escrow proceeds and other accounts receivable, net
$ 25,619 
$ 32,917 
Warranty insurance receivable
9,700 
10,493 
Notes and contracts receivable
0 
300 
Total receivables
$ 35,321 
$ 43,710 
Real Estate Inventories - Summary of Real Estate Inventories (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Real estate inventories owned:
 
 
Homes completed or under construction
$ 757,707 
$ 575,076 
Land under development
1,720,126 
1,443,461 
Land held for future development
298,841 
295,241 
Model homes
140,566 
140,232 
Total real estate inventories owned
2,917,240 
2,454,010 
Real estate inventories not owned:
 
 
Land purchase and land option deposits
29,608 
39,055 
Consolidated inventory held by VIEs
22,300 
26,208 
Total real estate inventories not owned
51,908 
65,263 
Total real estate inventories
$ 2,969,148 
$ 2,519,273 
Real Estate Inventories - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended 1 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Jun. 30, 2016
Pardee Homes [Member]
lot
Sep. 30, 2016
Pardee Homes [Member]
Segment Reporting Information [Line Items]
 
 
 
 
 
 
Number of homebuilding lots sold
 
 
 
 
102 
 
Land and lot sales revenue
$ 2,535 
$ 4,876 
$ 70,204 
$ 74,366 
 
$ 61,600 
Real Estate Inventories - Summary of Interest Incurred, Capitalized and Expensed (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Real Estate Inventory, Capitalized Interest Costs [Roll Forward]
 
 
 
 
Interest incurred
$ 18,601 
$ 15,500 
$ 50,000 
$ 45,800 
Interest capitalized
(18,601)
(15,454)
(50,030)
(45,779)
Interest expensed
0 
0 
0 
0 
Capitalized interest in beginning inventory
151,347 
140,106 
140,311 
124,461 
Interest capitalized as a cost of inventory
18,601 
15,454 
50,030 
45,779 
Interest previously capitalized as a cost of inventory, included in cost of sales
(14,415)
(13,339)
(34,808)
(28,019)
Capitalized interest in ending inventory
$ 155,533 
$ 142,221 
$ 155,533 
$ 142,221 
Real Estate Inventories - Schedule of Land and Lot Option Abandonments and Pre-acquisition Charges (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Real Estate [Abstract]
 
 
 
 
Real estate inventory impairments
$ 0 
$ 29 
$ 0 
$ 1,073 
Land and lot option abandonments and pre-acquisition charges
389 
336 
678 
830 
Total
$ 389 
$ 365 
$ 678 
$ 1,903 
Investments in Unconsolidated Entities - Additional Information (Detail)
9 Months Ended
Sep. 30, 2016
investment
Minimum [Member]
 
Investment Holdings [Line Items]
 
Ownership percentage (percent)
7.00% 
Maximum [Member]
 
Investment Holdings [Line Items]
 
Ownership percentage (percent)
55.00% 
Homebuilding Partnerships or Limited Liability Companies [Member]
 
Investment Holdings [Line Items]
 
Number of equity investments
5 
Financial Services Limited Liability Company [Member]
 
Investment Holdings [Line Items]
 
Number of equity investments
1 
Investments in Unconsolidated Entities - Schedule of Cumulative Investment in Entities on Equity Method, Including Share of Earnings and Losses (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Schedule of Investments [Line Items]
 
 
Investments in unconsolidated entities
$ 17,205 
$ 18,999 
Limited Liability Company Interests [Member]
 
 
Schedule of Investments [Line Items]
 
 
Investments in unconsolidated entities
13,946 
15,739 
General Partnership Interests [Member]
 
 
Schedule of Investments [Line Items]
 
 
Investments in unconsolidated entities
$ 3,259 
$ 3,260 
Investments in Unconsolidated Entities - Aggregated Assets, Liabilities and Operating Results of Entities as Equity-Method Investments (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Dec. 31, 2015
Assets
 
 
 
 
 
Total assets
$ 119,702 
 
$ 119,702 
 
$ 125,810 
Liabilities and equity
 
 
 
 
 
Accounts payable and other liabilities
12,932 
 
12,932 
 
14,443 
Company’s equity
17,205 
 
17,205 
 
18,999 
Outside interests' equity
89,565 
 
89,565 
 
92,368 
Total liabilities and equity
119,702 
 
119,702 
 
125,810 
Net sales
4,619 
1,217 
12,516 
2,670 
 
Other operating expense
(2,913)
(1,479)
(8,067)
(4,020)
 
Other income (loss)
1 
(263)
3 
(256)
 
Net income (loss)
1,707 
(525)
4,452 
(1,606)
 
Company’s equity in income (loss) of unconsolidated entities
1,227 
(3)
3,427 
(84)
 
Cash [Member]
 
 
 
 
 
Assets
 
 
 
 
 
Total assets
11,945 
 
11,945 
 
18,641 
Receivables [Member]
 
 
 
 
 
Assets
 
 
 
 
 
Total assets
10,038 
 
10,038 
 
13,108 
Real Estate Inventories [Member]
 
 
 
 
 
Assets
 
 
 
 
 
Total assets
96,654 
 
96,654 
 
92,881 
Other Assets [Member]
 
 
 
 
 
Assets
 
 
 
 
 
Total assets
$ 1,065 
 
$ 1,065 
 
$ 1,180 
Variable Interest Entities - Summary of Interests in Land Option Agreements (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Variable Interest Entity [Line Items]
 
 
Deposits
$ 30,208 
$ 42,058 
Remaining Purchase Price
445,059 
377,441 
Consolidated inventory held by VIEs
22,300 
26,208 
Consolidated VIEs [Member]
 
 
Variable Interest Entity [Line Items]
 
 
Deposits
600 
3,003 
Remaining Purchase Price
21,700 
23,239 
Consolidated inventory held by VIEs
22,300 
26,208 
Unconsolidated VIEs [Member]
 
 
Variable Interest Entity [Line Items]
 
 
Deposits
2,170 
11,615 
Remaining Purchase Price
58,135 
74,590 
Other land option agreements [Member]
 
 
Variable Interest Entity [Line Items]
 
 
Deposits
27,438 
27,440 
Remaining Purchase Price
$ 365,224 
$ 279,612 
Variable Interest Entities - Additional Information (Detail) (Other land option agreements [Member], USD $)
In Millions, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Other land option agreements [Member]
 
 
Variable Interest Entity [Line Items]
 
 
Capitalized pre-acquisition costs
$ 4.7 
$ 5.0 
Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Dec. 31, 2015
Schedule Of Intangible Assets And Goodwill [Line Items]
 
 
 
 
 
Goodwill
$ 139,304,000 
 
$ 139,304,000 
 
$ 139,304,000 
Number of intangible assets
2 
 
2 
 
 
Indefinite-Lived Trade Names [Member]
 
 
 
 
 
Schedule Of Intangible Assets And Goodwill [Line Items]
 
 
 
 
 
Indefinite life intangible asset
17,300,000 
 
17,300,000 
 
 
Finite-Lived Trade Names [Member]
 
 
 
 
 
Schedule Of Intangible Assets And Goodwill [Line Items]
 
 
 
 
 
Remaining useful life of amortizing asset
 
 
9 years 4 months 24 days 
 
10 years 2 months 12 days 
Amortization expense
133,000 
133,000 
400,000 
400,000,000 
 
Maracay Homes [Member]
 
 
 
 
 
Schedule Of Intangible Assets And Goodwill [Line Items]
 
 
 
 
 
Intangible assets useful life
 
 
20 years 
 
 
WRECO Transaction [Member]
 
 
 
 
 
Schedule Of Intangible Assets And Goodwill [Line Items]
 
 
 
 
 
Goodwill
$ 139,300,000 
 
$ 139,300,000 
 
$ 139,300,000 
Goodwill and Other Intangible Assets - Schedule of Goodwill and Other Intangible Assets (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
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
(5,654)
(5,254)
Trade names, Net Carrying Amount
22,325 
22,725 
Net Carrying Amount
$ 161,629 
$ 162,029 
Goodwill and Other Intangible Assets - Schedule of Expected Amortization of Intangible Asset (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
 
Remainder of 2016
$ 134 
2017
534 
2018
534 
2019
534 
2020
534 
Thereafter
2,755 
Total
$ 5,025 
Other Assets - Schedule of Other Assets (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
 
 
Prepaid expenses
$ 14,899 
$ 14,523 
Refundable fees and other deposits
21,695 
17,056 
Development rights, held for future use or sale
4,227 
4,360 
Deferred loan costs - unsecured revolving credit facility
2,319 
2,179 
Operating properties and equipment, net
9,525 
7,643 
Income tax receivable
10,633 
0 
Other
2,700 
3,157 
Total
$ 65,998 
$ 48,918 
Accrued Expenses and Other Liabilities - Schedule of Accrued Expenses and Other Liabilities (Detail) (USD $)
Sep. 30, 2016
Jun. 30, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Dec. 31, 2014
Payables and Accruals [Abstract]
 
 
 
 
 
 
Accrued payroll and related costs
$ 23,126,000 
 
$ 28,264,000 
 
 
 
Warranty reserves
45,665,000 
45,272,000 
45,948,000 
36,743,000 
35,375,000 
33,270,000 
Estimated cost for completion of real estate inventories
53,218,000 
 
52,818,000 
 
 
 
Customer deposits
19,428,000 
 
12,132,000 
 
 
 
Debt (nonrecourse) held by VIEs
0 
 
2,442,000 
 
 
 
Income tax liability to Weyerhaeuser
8,999,000 
 
8,900,000 
 
 
 
Accrued income taxes payable
0 
 
19,279,000 
 
 
 
Liability for uncertain tax positions
0 
 
307,000 
 
 
 
Accrued interest
19,200,000 
 
2,400,000 
 
 
 
Accrued insurance expense
2,529,000 
 
1,402,000 
 
 
 
Other tax liability
30,459,000 
 
21,764,000 
 
 
 
Other
16,732,000 
 
20,590,000 
 
 
 
Total
$ 219,396,000 
 
$ 216,263,000 
 
 
 
Senior Notes, Unsecured Revolving Credit Facility and Seller Financed Loans - Schedule of Senior Notes (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Debt Instrument [Line Items]
 
 
Senior notes
$ 1,166,724 
$ 868,679 
Discount and deferred loan costs
(33,276)
(31,321)
4.375% Senior notes due 2019 [Member]
 
 
Debt Instrument [Line Items]
 
 
Senior notes
450,000 
450,000 
4.875% Senior Notes due July 1, 2021 [Member]
 
 
Debt Instrument [Line Items]
 
 
Senior notes
300,000 
0 
5.875% Senior notes due 2024 [Member]
 
 
Debt Instrument [Line Items]
 
 
Senior notes
$ 450,000 
$ 450,000 
Senior Notes, Unsecured Revolving Credit Facility and Seller Financed Loans - Schedule of Senior Notes (Phantoms) (Detail) (Senior Notes [Member])
9 Months Ended
Sep. 30, 2016
May 31, 2016
4.375% Senior notes due 2019 [Member]
 
 
Debt Instrument [Line Items]
 
 
Interest rate on senior note (percent)
4.375% 
 
Maturity date of senior note
Jun. 15, 2019 
 
4.875% Senior Notes due July 1, 2021 [Member]
 
 
Debt Instrument [Line Items]
 
 
Interest rate on senior note (percent)
4.875% 
4.875% 
Maturity date of senior note
Jul. 01, 2021 
 
5.875% Senior notes due 2024 [Member]
 
 
Debt Instrument [Line Items]
 
 
Interest rate on senior note (percent)
5.875% 
 
Maturity date of senior note
Jun. 15, 2024 
 
Senior Notes, Unsecured Revolving Credit Facility and Seller Financed Loans - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 1 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Dec. 31, 2015
Sep. 30, 2016
Revolving Credit Facility [Member]
Dec. 31, 2015
Revolving Credit Facility [Member]
Sep. 30, 2016
Senior Notes [Member]
Sep. 30, 2016
Senior Notes [Member]
Dec. 31, 2015
Senior Notes [Member]
May 31, 2016
4.875% Senior Notes due July 1, 2021 [Member]
Senior Notes [Member]
Sep. 30, 2016
4.875% Senior Notes due July 1, 2021 [Member]
Senior Notes [Member]
Sep. 30, 2016
4.375% Senior notes due 2019 [Member]
Senior Notes [Member]
Sep. 30, 2016
4.375% Senior notes due 2019 [Member]
Senior Notes [Member]
Sep. 30, 2016
5.875% Senior notes due 2024 [Member]
Senior Notes [Member]
Sep. 30, 2016
5.875% Senior notes due 2024 [Member]
Senior Notes [Member]
Mar. 31, 2016
550 million revolving credit facility [Member]
Revolving Credit Facility [Member]
Sep. 30, 2016
625 million revolving credit facility [Member]
Revolving Credit Facility [Member]
Apr. 28, 2016
625 million revolving credit facility [Member]
Revolving Credit Facility [Member]
Dec. 31, 2015
625 million revolving credit facility [Member]
Revolving Credit Facility [Member]
Sep. 30, 2016
625 million revolving credit facility [Member]
Revolving Credit Facility [Member]
Minimum [Member]
Sep. 30, 2016
625 million revolving credit facility [Member]
Revolving Credit Facility [Member]
Maximum [Member]
Sep. 30, 2016
625 million revolving credit facility [Member]
Letters of credit [Member]
Sep. 30, 2016
Seller financed loan [Member]
Dec. 31, 2015
Seller financed loan [Member]
Sep. 30, 2016
Seller financed loan [Member]
Loans Payable [Member]
Dec. 31, 2015
Seller financed loan [Member]
Loans Payable [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aggregate principal amount
 
 
 
 
 
 
 
 
 
 
$ 300,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate on debt instrument (percent)
 
 
 
 
 
 
 
 
 
 
4.875% 
4.875% 
4.375% 
4.375% 
5.875% 
5.875% 
 
 
 
 
 
 
 
 
 
7.00% 
 
Proceeds from issuance of senior notes, net
 
 
 
 
 
 
 
861,300,000 
 
 
293,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt issuance, percentage of aggregate principal (percent)
 
 
 
 
 
 
 
 
 
 
99.44% 
 
98.89% 
 
98.15% 
 
 
 
 
 
 
 
 
 
 
 
 
Maturity date of senior note
 
 
 
 
 
 
 
 
 
 
 
Jul. 01, 2021 
 
Jun. 15, 2019 
 
Jun. 15, 2024 
 
 
 
 
 
 
 
 
 
 
 
Principal payment on Senior Notes
 
 
 
 
 
 
 
 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capitalization of deferred finance costs
2,319,000 
 
2,319,000 
 
2,179,000 
 
 
22,000,000 
22,000,000 
 
 
 
 
 
 
 
 
2,300,000 
 
 
 
 
 
 
 
 
 
Accrued interest
19,200,000 
 
19,200,000 
 
2,400,000 
 
 
18,600,000 
18,600,000 
1,900,000 
 
 
 
 
 
 
 
645,000 
 
407,000 
 
 
 
 
 
359,000 
89,000 
Unsecured revolving credit facility
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
550,000,000 
 
625,000,000 
 
 
 
75,000,000 
 
 
 
 
Line of credit facility, maturity date
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
May 18, 2019 
 
 
 
 
 
 
 
 
 
Debt instrument variable interest rate (percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.45% 
2.20% 
 
 
 
 
 
Notes payable and other borrowings
200,000,000 
 
200,000,000 
 
299,392,000 
200,000,000 
299,392,000 
 
 
 
 
 
 
 
 
 
 
200,000,000 
 
 
 
 
 
 
 
 
 
Interest rate on revolving credit facility (percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.28% 
 
 
 
 
 
 
 
 
 
Available secured revolving credit facility
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
420,700,000 
 
 
 
 
 
 
 
 
 
Outstanding letters of credit
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,300,000 
 
 
 
 
Seller financed loans
17,758,000 
 
17,758,000 
 
2,434,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
17,758,000 
2,434,000 
17,800,000 
 
Minimum principal payment due in June 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12,100,000 
 
Interest incurred
18,601,000 
15,500,000 
50,000,000 
45,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of deferred financing costs
$ 1,800,000 
$ 1,500,000 
$ 4,700,000 
$ 3,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior Notes, Unsecured Revolving Credit Facility and Seller Financed Loans - Components of Unsecured Revolving Credit Facility (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Debt Instrument [Line Items]
 
 
Notes payable and other borrowings
$ 200,000 
$ 299,392 
Revolving Credit Facility [Member]
 
 
Debt Instrument [Line Items]
 
 
Notes payable and other borrowings
$ 200,000 
$ 299,392 
Senior Notes, Unsecured Revolving Credit Facility and Seller Financed Loans - Components of Seller Financed Loans (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Debt Instrument [Line Items]
 
 
Seller financed loans
$ 17,758 
$ 2,434 
Seller financed loan [Member]
 
 
Debt Instrument [Line Items]
 
 
Seller financed loans
$ 17,758 
$ 2,434 
Fair Value Disclosures - Summary of Assets and Liabilities Related to Financial Instruments, Measured at Fair Value on a Recurring Basis (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Senior notes
$ 1,166,724 
$ 868,679 
Unsecured revolving credit facility
200,000 
299,392 
Seller financed loans
17,758 
2,434 
Deferred loan costs - unsecured revolving credit facility
2,319 
2,179 
Unsecured revolving credit facility [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Unsecured revolving credit facility
200,000 
299,392 
Level 2 [Member] |
Recurring [Member] |
Book Value [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Senior notes
1,188,686 
889,054 
Deferred loan costs - unsecured revolving credit facility
22,000 
20,400 
Level 2 [Member] |
Recurring [Member] |
Book Value [Member] |
Seller financed loan [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Seller financed loans
17,758 
2,434 
Level 2 [Member] |
Recurring [Member] |
Book Value [Member] |
Unsecured revolving credit facility [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Unsecured revolving credit facility
200,000 
299,392 
Level 2 [Member] |
Recurring [Member] |
Fair Value [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Senior notes
1,235,250 
881,460 
Level 2 [Member] |
Recurring [Member] |
Fair Value [Member] |
Seller financed loan [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Seller financed loans
17,758 
2,368 
Level 2 [Member] |
Recurring [Member] |
Fair Value [Member] |
Unsecured revolving credit facility [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Unsecured revolving credit facility
$ 192,772 
$ 299,392 
Fair Value Disclosures - Summary of Nonfinancial Assets Measured at Fair Value on a Nonrecurring Basis (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Dec. 31, 2015
Dec. 31, 2015
Fair Value Measurements Nonrecurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
 
 
 
 
Real estate inventories, impairment charge
$ 0 
$ 29 
$ 0 
$ 1,073 
 
$ 1,167 
Real estate inventories
$ 2,969,148 
 
$ 2,969,148 
 
$ 2,519,273 
$ 28,540 
Commitments and Contingencies - Additional Information (Detail) (USD $)
Sep. 30, 2016
Dec. 31, 2015
Commitment And Contingencies [Line Items]
 
 
Outstanding warranty insurance receivables
$ 9,700,000 
$ 10,493,000 
Surety bonds [Member]
 
 
Commitment And Contingencies [Line Items]
 
 
Outstanding surety bonds
433,600,000 
414,100,000 
Legal Reserve
 
 
Commitment And Contingencies [Line Items]
 
 
Legal reserves
$ 225,000 
$ 450,000 
Commitments and Contingencies - Schedule of Warranty Reserves (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Movement in Standard Product Warranty Accrual [Roll Forward]
 
 
 
 
Warranty reserves, beginning of period
$ 45,272 
$ 35,375 
$ 45,948 
$ 33,270 
Warranty reserves accrued
3,329 
4,201 
8,373 
10,427 
Adjustments to pre-existing reserves
200 
(14)
460 
1,286 
Warranty expenditures
(3,136)
(2,819)
(9,116)
(8,240)
Warranty reserves, end of period
$ 45,665 
$ 36,743 
$ 45,665 
$ 36,743 
Stock-Based Compensation - Additional Information (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
9 Months Ended 0 Months Ended 0 Months Ended 3 Months Ended 0 Months Ended
Sep. 30, 2016
Sep. 30, 2016
Restricted Stock Units (RSUs) [Member]
Mar. 1, 2016
Restricted Stock Units (RSUs) [Member]
Employees and Officers [Member]
Mar. 5, 2015
Restricted Stock Units (RSUs) [Member]
Employees and Officers [Member]
Jun. 6, 2016
Restricted Stock Units (RSUs) [Member]
Board of Directors [Member]
Aug. 12, 2015
Restricted Stock Units (RSUs) [Member]
Board of Directors [Member]
Jun. 6, 2016
Restricted Stock Units (RSUs) [Member]
Board of Directors [Member]
Mar. 1, 2016
Performance-based RSUs [Member]
Sep. 30, 2016
Performance-based RSUs [Member]
Mar. 1, 2016
Performance-based RSUs [Member]
Minimum [Member]
Mar. 1, 2016
Performance-based RSUs [Member]
Maximum [Member]
Mar. 9, 2015
Performance-based RSUs [Member]
Total Shareholder Return [Member]
Mar. 1, 2016
Performance-based RSUs [Member]
Stock Price [Member]
Mar. 9, 2015
Performance-based RSUs [Member]
Stock Price [Member]
Mar. 9, 2015
Performance-based RSUs [Member]
Earnings Per Share [Member]
Mar. 1, 2016
Performance-based RSUs [Member]
Chief Executive Officer [Member]
Mar. 9, 2015
Performance-based RSUs [Member]
Chief Executive Officer [Member]
Mar. 1, 2016
Performance-based RSUs [Member]
President [Member]
Mar. 9, 2015
Performance-based RSUs [Member]
President [Member]
Mar. 1, 2016
Performance-based RSUs [Member]
Chief Financial Officer [Member]
Mar. 9, 2015
Performance-based RSUs [Member]
Chief Financial Officer [Member]
Sep. 30, 2016
2013 Incentive Plan [Member]
Jul. 16, 2014
WRECO equity incentive plans [Member]
WRECO Transaction [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock (shares)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11,727,833 
 
Shares available for future grant (shares)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7,604,642 
 
Number of registered shares (shares)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,105,953 
Exchange ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.1107 
Unrecognized stock based compensation related to all stock-based awards
$ 20.3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average period, expense to recognize
1 year 10 months 10 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restricted stock units, granted (shares)
 
1,904,389 
1,120,677 
440,800 
74,466 
69,008 
 
 
 
 
 
 
 
 
 
297,426 
411,804 
285,986 
384,351 
125,834 
274,536 
 
 
Performance-based RSUs, Description
 
 
 
 
 
 
 
 
performance-based RSUs will not vest if the Company’s total stockholder return from January 1, 2016 to December 31, 2018 is not a positive number, provided that the executive will thereafter become vested in the award units, or portion thereof, that would have otherwise vested on December 31, 2018 if on any day after December 31, 2018 and on or before December 31, 2020, the Company’s total stockholder return is greater than zero and the executive is employed by the Company on that date. If the performance-based RSUs have not vested on or before December 31, 2020, such performance-based RSUs shall be cancelled and forfeited for no consideration. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Performance period initiation date
 
 
 
 
 
 
 
Jan. 01, 2016 
 
 
 
Jan. 01, 2015 
Jan. 01, 2016 
Jan. 01, 2016 
Jan. 01, 2015 
 
 
 
 
 
 
 
 
Performance period expiration date
 
 
 
 
 
 
 
Dec. 31, 2018 
 
 
 
Dec. 31, 2017 
Dec. 31, 2018 
Dec. 31, 2017 
Dec. 31, 2017 
 
 
 
 
 
 
 
 
Closing stock price on date of grant (in dollars per share)
 
 
$ 10.49 
$ 14.97 
 
$ 14.49 
$ 11.75 
$ 4.76 
 
 
 
$ 7.55 
 
$ 7.90 
$ 14.57 
 
 
 
 
 
 
 
 
Restricted stock units, vesting period
 
 
3 years 
3 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allocation amount percentage (percent)
 
 
 
 
 
 
 
 
 
0.00% 
100.00% 
33.33% 
 
33.33% 
33.33% 
 
 
 
 
 
 
 
 
Stock-Based Compensation - Summary of Compensation Expense Recognized Related to all Stock-Based Awards (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
 
 
 
Total stock-based compensation
$ 3,285 
$ 2,994 
$ 9,648 
$ 8,536 
Stock-Based Compensation - Summary of Stock Option Awards (Detail) (Employee Stock Option [Member], USD $)
In Thousands, except Share data, unless otherwise specified
9 Months Ended 12 Months Ended
Sep. 30, 2016
Dec. 31, 2015
Employee Stock Option [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
 
Options, Outstanding, Balance (shares)
3,220,147 
 
Options, Granted (shares)
0 
 
Options, Exercised (shares)
(79,689)
 
Options, Forfeited (shares)
(155,380)
 
Options, Outstanding, Balance (shares)
2,985,078 
3,220,147 
Options exercisable at end of period (shares)
2,616,544 
 
Weighted Average Exercise Price, Outstanding, Balance (in dollars per share)
$ 13.12 
 
Weighted Average Exercise Price, Granted (in dollars per share)
$ 0.00 
 
Weighted Average Exercise Price, Exercised (in dollars per share)
$ 9.89 
 
Weighted Average Exercise Price, Forfeited (in dollars per share)
$ 12.39 
 
Weighted Average Exercise Price, Outstanding, Balance (in dollars per share)
$ 13.24 
$ 13.12 
Weighted Average Exercise Price, Options exercisable at end of period (in dollars per share)
$ 13.05 
 
Weighted Average Remaining Contractual Life, Outstanding
4 years 7 months 6 days 
5 years 2 months 12 days 
Weighted Average Remaining Contractual Life, Options exercisable at end of period
4 years 3 months 18 days 
 
Aggregate Intrinsic Value, Outstanding, Balance
$ 3,282 
$ 3,081 
Aggregate Intrinsic Value, Outstanding, Options exercisable at end of period
$ 3,282 
 
Stock-Based Compensation - Summary of Restricted Stock Units (Detail) (Restricted Stock Units (RSUs) [Member], USD $)
In Thousands, except Share data, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Dec. 31, 2015
Restricted Stock Units (RSUs) [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
 
 
Nonvested Restricted Stock Units, Beginning Balance (shares)
1,958,033 
 
Nonvested Restricted Stock Units, Granted (shares)
1,904,389 
 
Nonvested Restricted Stock Units, Vested (shares)
(431,758)
 
Nonvested Restricted Stock Units, Forfeited (shares)
(19,781)
 
Nonvested Restricted Stock Units, Ending Balance (shares)
3,410,883 
 
Weighted Average Grant Date Fair Value, Beginning Balance (in dollars per share)
$ 12.21 
 
Weighted Average Grant Date Fair Value, Granted (in dollars per share)
$ 8.41 
 
Weighted Average Grant Date Fair Value, Vested (in dollars per share)
$ 14.53 
 
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share)
$ 12.17 
 
Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share)
$ 9.77 
 
Aggregate Intrinsic Value, Beginning Balance
$ 44,993 
$ 24,808 
Aggregate Intrinsic Value, Granted
25,100 
 
Aggregate Intrinsic Value, Ending Balance
$ 44,993 
$ 24,808 
Stock Repurchase Program (Details) (USD $)
3 Months Ended 9 Months Ended 1 Months Ended
Sep. 30, 2016
Sep. 30, 2016
Jan. 27, 2016
Oct. 27, 2016
Subsequent Event [Member]
Equity, Class of Treasury Stock [Line Items]
 
 
 
 
Aggregate value of share repurchases authorized
 
 
$ 100,000,000 
 
Shares repurchased and retired (shares)
852,500 
2,105,521 
 
618,532 
Average price of shares repurchased (in dollars per share)
$ 12.22 
$ 11.93 
 
$ 12.43 
Total cost of shares repurchased and retired
$ 10,400,000 
$ 25,100,000 
 
$ 7,700,000 
Income Taxes - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Dec. 31, 2015
Income Tax Contingency [Line Items]
 
 
 
 
 
Net deferred tax assets
$ 111,900,000 
 
$ 111,900,000 
 
$ 130,657,000 
Valuation allowance related to net deferred tax assets
3,500,000 
 
3,500,000 
 
4,400,000 
Provision for income taxes
20,300,000 
28,021,000 
77,700,000 
66,100,000 
 
Liability for uncertain tax positions
0 
 
0 
 
307,000 
Accrued Expenses And Other Liabilities [Member] |
Weyerhaeuser [Member]
 
 
 
 
 
Income Tax Contingency [Line Items]
 
 
 
 
 
Income tax liability
$ 9,000,000 
 
$ 9,000,000 
 
$ 8,900,000 
Related Party Transactions - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
1 Months Ended
Aug. 31, 2016
Starwood Capital Group [Member]
lot
Jan. 31, 2015
Starwood Capital Group [Member]
lot
Sep. 30, 2016
Blackrock, Inc. [Member]
lot
Oct. 31, 2015
Blackrock, Inc. [Member]
lot
Related Party Transaction [Line Items]
 
 
 
 
Number of lots acquired
257 
46 
45 
161 
Purchase price
$ 8.6 
$ 2.8 
$ 10.0 
$ 60.0 
Ownership percentage in entity's common stock (percent)
 
5.00% 
 
 
Supplemental Disclosure to Consolidated Statements of Cash Flows - Supplemental Disclosure to Consolidated Statements of Cash Flows (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Supplemental disclosure of cash flow information:
 
 
Interest, net of amounts capitalized of $[] and $45,779
$ 0 
$ 0 
Income taxes
89,269 
44,394 
Supplemental disclosures of noncash activities:
 
 
Amortization of senior note discount capitalized to real estate inventory
1,321 
1,155 
Amortization of deferred loan costs capitalized to real estate inventory
2,865 
2,690 
Effect of net consolidation and de-consolidation of variable interest entities:
 
 
Increase (decrease) in consolidated real estate inventory not owned
3,484 
(3,556)
Increase in deposits on real estate under option or contract and other assets
 
300 
(Increase) decrease in noncontrolling interests
$ (3,484)
$ 3,256 
Supplemental Disclosure to Consolidated Statements of Cash Flows - Supplemental Disclosure to Consolidated Statements of Cash Flows Phantoms (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Supplemental Cash Flow Elements [Abstract]
 
 
 
 
Interest capitalized
$ 18,601 
$ 15,454 
$ 50,030 
$ 45,779 
Supplemental Guarantor Information - Condensed Consolidating Balance Sheet (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2016
Dec. 31, 2015
Sep. 30, 2015
Dec. 31, 2014
Assets
 
 
 
 
Cash and cash equivalents
$ 128,715 
$ 214,485 
$ 96,993 
$ 170,629 
Receivables
35,321 
43,710 
 
 
Intercompany receivables
0 
0 
 
 
Real estate inventories
2,969,148 
2,519,273 
 
 
Investments in unconsolidated entities
17,205 
18,999 
 
 
Goodwill and other intangible assets, net
161,629 
162,029 
 
 
Investments in subsidiaries
0 
0 
 
 
Deferred tax assets, net
111,900 
130,657 
 
 
Other assets
65,998 
48,918 
 
 
Total assets
3,489,903 
3,138,071 
 
 
Liabilities
 
 
 
 
Accounts payable
77,667 
64,840 
 
 
Intercompany payables
0 
0 
 
 
Accrued expenses and other liabilities
219,396 
216,263 
 
 
Unsecured revolving credit facility
200,000 
299,392 
 
 
Seller financed loans
17,758 
2,434 
 
 
Senior notes
1,166,724 
868,679 
 
 
Total liabilities
1,681,545 
1,451,608 
 
 
Equity
 
 
 
 
Total stockholders’ equity
1,785,460 
1,664,683 
 
 
Noncontrolling interests
22,898 
21,780 
 
 
Total equity
1,808,358 
1,686,463 
 
1,472,476 
Total liabilities and equity
3,489,903 
3,138,071 
 
 
Reporting Entity [Member] |
Issuer [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
61,073 
147,771 
37,015 
105,888 
Receivables
12,496 
17,358 
 
 
Intercompany receivables
856,866 
783,956 
 
 
Real estate inventories
877,940 
657,221 
 
 
Investments in unconsolidated entities
0 
0 
 
 
Goodwill and other intangible assets, net
156,604 
156,604 
 
 
Investments in subsidiaries
1,241,559 
1,093,261 
 
 
Deferred tax assets, net
18,958 
19,061 
 
 
Other assets
9,266 
12,219 
 
 
Total assets
3,234,762 
2,887,451 
 
 
Liabilities
 
 
 
 
Accounts payable
21,099 
20,444 
 
 
Intercompany payables
0 
0 
 
 
Accrued expenses and other liabilities
43,721 
32,219 
 
 
Unsecured revolving credit facility
200,000 
299,392 
 
 
Seller financed loans
17,758 
2,034 
 
 
Senior notes
1,166,724 
868,679 
 
 
Total liabilities
1,449,302 
1,222,768 
 
 
Equity
 
 
 
 
Total stockholders’ equity
1,785,460 
1,664,683 
 
 
Noncontrolling interests
0 
0 
 
 
Total equity
1,785,460 
1,664,683 
 
 
Total liabilities and equity
3,234,762 
2,887,451 
 
 
Reporting Entity [Member] |
Guarantor Subsidiaries [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
67,642 
66,714 
59,978 
64,741 
Receivables
22,825 
26,352 
 
 
Intercompany receivables
0 
0 
 
 
Real estate inventories
2,091,208 
1,862,052 
 
 
Investments in unconsolidated entities
17,205 
18,999 
 
 
Goodwill and other intangible assets, net
5,025 
5,425 
 
 
Investments in subsidiaries
0 
0 
 
 
Deferred tax assets, net
92,929 
111,596 
 
 
Other assets
56,732 
36,699 
 
 
Total assets
2,353,566 
2,127,837 
 
 
Liabilities
 
 
 
 
Accounts payable
56,568 
44,396 
 
 
Intercompany payables
856,866 
783,956 
 
 
Accrued expenses and other liabilities
175,675 
184,044 
 
 
Unsecured revolving credit facility
0 
0 
 
 
Seller financed loans
0 
400 
 
 
Senior notes
0 
0 
 
 
Total liabilities
1,089,109 
1,012,796 
 
 
Equity
 
 
 
 
Total stockholders’ equity
1,241,559 
1,093,261 
 
 
Noncontrolling interests
22,898 
21,780 
 
 
Total equity
1,264,457 
1,115,041 
 
 
Total liabilities and equity
2,353,566 
2,127,837 
 
 
Consolidating Adjustments [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
0 
0 
0 
0 
Receivables
0 
0 
 
 
Intercompany receivables
(856,866)
(783,956)
 
 
Real estate inventories
0 
0 
 
 
Investments in unconsolidated entities
0 
0 
 
 
Goodwill and other intangible assets, net
0 
0 
 
 
Investments in subsidiaries
(1,241,559)
(1,093,261)
 
 
Deferred tax assets, net
0 
0 
 
 
Other assets
0 
0 
 
 
Total assets
(2,098,425)
(1,877,217)
 
 
Liabilities
 
 
 
 
Accounts payable
0 
0 
 
 
Intercompany payables
(856,866)
(783,956)
 
 
Accrued expenses and other liabilities
0 
0 
 
 
Unsecured revolving credit facility
0 
0 
 
 
Seller financed loans
0 
0 
 
 
Senior notes
0 
0 
 
 
Total liabilities
(856,866)
(783,956)
 
 
Equity
 
 
 
 
Total stockholders’ equity
(1,241,559)
(1,093,261)
 
 
Noncontrolling interests
0 
0 
 
 
Total equity
(1,241,559)
(1,093,261)
 
 
Total liabilities and equity
$ (2,098,425)
$ (1,877,217)
 
 
Supplemental Guarantor Information - Condensed Consolidating Statement of Operations (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Dec. 31, 2015
Homebuilding:
 
 
 
 
 
Home sales revenue
$ 578,653 
$ 642,352 
$ 1,558,633 
$ 1,443,855 
 
Land and lot sales revenue
2,535 
4,876 
70,204 
74,366 
 
Other operations revenue
606 
613 
1,790 
2,213 
 
Total revenues
581,794 
647,841 
1,630,627 
1,520,434 
 
Cost of home sales
462,323 
507,543 
1,219,560 
1,149,191 
 
Cost of land and lot sales
1,734 
3,451 
16,973 
17,324 
 
Other operations expense
575 
570 
1,724 
1,704 
 
Sales and marketing
31,852 
30,038 
90,621 
78,958 
 
General and administrative
31,150 
26,736 
89,815 
83,150 
 
Restructuring charges
128 
2,010 
478 
2,730 
 
Homebuilding income from operations
54,032 
77,493 
211,456 
187,377 
 
Equity in (loss) income of unconsolidated entities
(20)
(150)
181 
(82)
 
Other (loss) income, net
21 
47 
287 
272 
 
Homebuilding income before income taxes
54,033 
77,390 
211,924 
187,567 
 
Financial Services:
 
 
 
 
 
Revenues
235 
300 
762 
482 
 
Expenses
72 
47 
183 
131 
 
Equity in income (loss) of unconsolidated entities
1,247 
147 
3,246 
(2)
 
Financial services income before income taxes
1,410 
400 
3,825 
349 
 
Income before income taxes
55,443 
77,790 
215,749 
187,916 
 
Equity of net income of subsidiaries
0 
0 
0 
0 
 
Provision for income taxes
(20,300)
(28,021)
(77,700)
(66,100)
 
Net income
35,145 
49,769 
138,048 
121,828 
207,181 
Net (income) loss attributable to noncontrolling interests
(311)
393 
(738)
(1,439)
 
Net income available to common stockholders
34,834 
50,162 
137,310 
120,389 
 
Reporting Entity [Member] |
Issuer [Member]
 
 
 
 
 
Homebuilding:
 
 
 
 
 
Home sales revenue
167,769 
224,244 
452,553 
461,654 
 
Land and lot sales revenue
0 
0 
0 
0 
 
Other operations revenue
0 
0 
0 
0 
 
Total revenues
167,769 
224,244 
452,553 
461,654 
 
Cost of home sales
144,217 
182,754 
383,574 
376,100 
 
Cost of land and lot sales
0 
0 
0 
0 
 
Other operations expense
0 
0 
0 
0 
 
Sales and marketing
6,598 
7,286 
19,683 
17,714 
 
General and administrative
15,192 
12,942 
42,984 
38,874 
 
Restructuring charges
0 
(83)
0 
(169)
 
Homebuilding income from operations
1,762 
21,345 
6,312 
29,135 
 
Equity in (loss) income of unconsolidated entities
0 
0 
0 
0 
 
Other (loss) income, net
(345)
(37)
157 
(149)
 
Homebuilding income before income taxes
1,417 
21,308 
6,469 
28,986 
 
Financial Services:
 
 
 
 
 
Revenues
0 
0 
0 
0 
 
Expenses
0 
0 
0 
0 
 
Equity in income (loss) of unconsolidated entities
0 
0 
0 
0 
 
Financial services income before income taxes
0 
0 
0 
0 
 
Income before income taxes
1,417 
21,308 
6,469 
28,986 
 
Equity of net income of subsidiaries
34,639 
37,924 
135,024 
103,688 
 
Provision for income taxes
(1,222)
(9,070)
(4,183)
(12,285)
 
Net income
34,834 
50,162 
137,310 
120,389 
 
Net (income) loss attributable to noncontrolling interests
0 
0 
0 
0 
 
Net income available to common stockholders
34,834 
50,162 
137,310 
120,389 
 
Reporting Entity [Member] |
Guarantor Subsidiaries [Member]
 
 
 
 
 
Homebuilding:
 
 
 
 
 
Home sales revenue
410,884 
418,108 
1,106,080 
982,201 
 
Land and lot sales revenue
2,535 
4,876 
70,204 
74,366 
 
Other operations revenue
606 
613 
1,790 
2,213 
 
Total revenues
414,025 
423,597 
1,178,074 
1,058,780 
 
Cost of home sales
318,106 
324,789 
835,986 
773,091 
 
Cost of land and lot sales
1,734 
3,451 
16,973 
17,324 
 
Other operations expense
575 
570 
1,724 
1,704 
 
Sales and marketing
25,254 
22,752 
70,938 
61,244 
 
General and administrative
15,958 
13,794 
46,831 
44,276 
 
Restructuring charges
128 
2,093 
478 
2,899 
 
Homebuilding income from operations
52,270 
56,148 
205,144 
158,242 
 
Equity in (loss) income of unconsolidated entities
(20)
(150)
181 
(82)
 
Other (loss) income, net
366 
84 
130 
421 
 
Homebuilding income before income taxes
52,616 
56,082 
205,455 
158,581 
 
Financial Services:
 
 
 
 
 
Revenues
235 
300 
762 
482 
 
Expenses
72 
47 
183 
131 
 
Equity in income (loss) of unconsolidated entities
1,247 
147 
3,246 
(2)
 
Financial services income before income taxes
1,410 
400 
3,825 
349 
 
Income before income taxes
54,026 
56,482 
209,280 
158,930 
 
Equity of net income of subsidiaries
0 
0 
0 
0 
 
Provision for income taxes
(19,076)
(18,951)
(73,518)
(53,803)
 
Net income
34,950 
37,531 
135,762 
105,127 
 
Net (income) loss attributable to noncontrolling interests
(311)
393 
(738)
(1,439)
 
Net income available to common stockholders
34,639 
37,924 
135,024 
103,688 
 
Consolidating Adjustments [Member]
 
 
 
 
 
Homebuilding:
 
 
 
 
 
Home sales revenue
0 
0 
0 
0 
 
Land and lot sales revenue
0 
0 
0 
0 
 
Other operations revenue
0 
0 
0 
0 
 
Total revenues
0 
0 
0 
0 
 
Cost of home sales
0 
0 
0 
0 
 
Cost of land and lot sales
0 
0 
0 
0 
 
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 
0 
0 
 
Homebuilding income from operations
0 
0 
0 
0 
 
Equity in (loss) income of unconsolidated entities
0 
0 
0 
0 
 
Other (loss) income, net
0 
0 
0 
0 
 
Homebuilding income before income taxes
0 
0 
0 
0 
 
Financial Services:
 
 
 
 
 
Revenues
0 
0 
0 
0 
 
Expenses
0 
0 
0 
0 
 
Equity in income (loss) 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
(34,639)
(37,924)
(135,024)
(103,688)
 
Provision for income taxes
0 
0 
   
0 
 
Net income
(34,639)
(37,924)
(135,024)
(103,688)
 
Net (income) loss attributable to noncontrolling interests
0 
0 
0 
0 
 
Net income available to common stockholders
$ (34,639)
$ (37,924)
$ (135,024)
$ (103,688)
 
Supplemental Guarantor Information - Condensed Consolidating Statement of Cash Flows (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Cash flows from operating activities:
 
 
Net cash used in operating activities
$ (261,307)
$ (140,011)
Cash flows from investing activities:
 
 
Purchases of property and equipment
(2,056)
(1,059)
Investments in unconsolidated entities
(32)
(1,458)
Distributions from unconsolidated entities
0 
319 
Intercompany
0 
0 
Net cash used in investing activities
(2,088)
(2,198)
Cash flows from financing activities:
 
 
Borrowings from debt
491,069 
140,000 
Repayment of debt
(276,826)
(57,713)
Debt issuance costs
(5,061)
(2,688)
Net proceeds (repayments) of debt held by variable interest entities
(2,442)
(5,927)
Contributions from noncontrolling interests
1,955 
4,281 
Distributions to noncontrolling interests
(5,059)
(9,198)
Proceeds from issuance of common stock under share-based awards
461 
1,616 
Excess tax benefit of share-based awards
0 
392 
Minimum tax withholding paid on behalf of employees for share-based awards
(1,359)
(2,190)
Share repurchases
(25,113)
0 
Intercompany
0 
0 
Net cash provided by financing activities
177,625 
68,573 
Net decrease in cash and cash equivalents
(85,770)
(73,636)
Cash and cash equivalents - beginning of period
214,485 
170,629 
Cash and cash equivalents - end of period
128,715 
96,993 
Reporting Entity [Member] |
Issuer [Member]
 
 
Cash flows from operating activities:
 
 
Net cash used in operating activities
(186,487)
(69,362)
Cash flows from investing activities:
 
 
Purchases of property and equipment
(831)
(382)
Investments in unconsolidated entities
0 
0 
Distributions from unconsolidated entities
 
0 
Intercompany
(82,951)
(78,354)
Net cash used in investing activities
(83,782)
(78,736)
Cash flows from financing activities:
 
 
Borrowings from debt
491,069 
140,000 
Repayment of debt
(276,426)
(57,513)
Debt issuance costs
(5,061)
(2,688)
Net proceeds (repayments) of debt held by variable interest entities
0 
0 
Contributions from noncontrolling interests
0 
0 
Distributions to noncontrolling interests
0 
0 
Proceeds from issuance of common stock under share-based awards
461 
1,616 
Excess tax benefit of share-based awards
 
0 
Minimum tax withholding paid on behalf of employees for share-based awards
(1,359)
(2,190)
Share repurchases
(25,113)
 
Intercompany
0 
0 
Net cash provided by financing activities
183,571 
79,225 
Net decrease in cash and cash equivalents
(86,698)
(68,873)
Cash and cash equivalents - beginning of period
147,771 
105,888 
Cash and cash equivalents - end of period
61,073 
37,015 
Reporting Entity [Member] |
Guarantor Subsidiaries [Member]
 
 
Cash flows from operating activities:
 
 
Net cash used in operating activities
(74,820)
(70,649)
Cash flows from investing activities:
 
 
Purchases of property and equipment
(1,225)
(677)
Investments in unconsolidated entities
(32)
(1,458)
Distributions from unconsolidated entities
 
319 
Intercompany
0 
0 
Net cash used in investing activities
(1,257)
(1,816)
Cash flows from financing activities:
 
 
Borrowings from debt
0 
0 
Repayment of debt
(400)
(200)
Debt issuance costs
0 
0 
Net proceeds (repayments) of debt held by variable interest entities
(2,442)
(5,927)
Contributions from noncontrolling interests
1,955 
4,281 
Distributions to noncontrolling interests
(5,059)
(9,198)
Proceeds from issuance of common stock under share-based awards
0 
0 
Excess tax benefit of share-based awards
 
392 
Minimum tax withholding paid on behalf of employees for share-based awards
0 
0 
Share repurchases
0 
 
Intercompany
82,951 
78,354 
Net cash provided by financing activities
77,005 
67,702 
Net decrease in cash and cash equivalents
928 
(4,763)
Cash and cash equivalents - beginning of period
66,714 
64,741 
Cash and cash equivalents - end of period
67,642 
59,978 
Consolidating Adjustments [Member]
 
 
Cash flows from operating activities:
 
 
Net cash used in operating activities
0 
0 
Cash flows from investing activities:
 
 
Purchases of property and equipment
0 
0 
Investments in unconsolidated entities
0 
0 
Distributions from unconsolidated entities
 
0 
Intercompany
82,951 
78,354 
Net cash used in investing activities
82,951 
78,354 
Cash flows from financing activities:
 
 
Borrowings from debt
0 
0 
Repayment of debt
0 
0 
Debt issuance costs
0 
0 
Net proceeds (repayments) of debt held by variable interest entities
0 
0 
Contributions from noncontrolling interests
0 
0 
Distributions to noncontrolling interests
0 
0 
Proceeds from issuance of common stock under share-based awards
0 
0 
Excess tax benefit of share-based awards
 
0 
Minimum tax withholding paid on behalf of employees for share-based awards
0 
0 
Share repurchases
0 
 
Intercompany
(82,951)
(78,354)
Net cash provided by financing activities
(82,951)
(78,354)
Net 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