TRI POINTE GROUP, INC., 10-Q filed on 10/31/2019
Quarterly Report
v3.19.3
Cover Page - shares
9 Months Ended
Sep. 30, 2019
Oct. 14, 2019
Cover page.    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2019  
Document Transition Report false  
Entity File Number 1-35796  
Entity Registrant Name TRI Pointe Group, Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 61-1763235  
Entity Address, Address Line One 19540 Jamboree Road  
Entity Address, Address Line Two Suite 300  
Entity Address, City or Town Irvine  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 92612  
City Area Code 949  
Local Phone Number 438-1400  
Title of 12(b) Security Common Stock, par value $0.01 per share  
Trading Symbol TPH  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   139,237,697
Entity Central Index Key 0001561680  
Amendment Flag false  
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2019  
Current Fiscal Year End Date --12-31  
v3.19.3
Consolidated Balance Sheets - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Assets    
Cash and cash equivalents $ 130,262 $ 277,696
Receivables 70,507 51,592
Real estate inventories 3,345,390 3,216,059
Investments in unconsolidated entities 4,207 5,410
Goodwill and other intangible assets, net 160,026 160,427
Deferred tax assets, net 57,275 67,768
Other assets 173,804 105,251
Total assets 3,941,471 3,884,203
Liabilities    
Accounts payable 81,279 81,313
Accrued expenses and other liabilities 315,436 335,149
Loans payable 400,000 0
Senior notes, net 1,033,058 1,410,804
Total liabilities 1,829,773 1,827,266
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, 2019 and December 31, 2018, respectively 0 0
Common stock, $0.01 par value, 500,000,000 shares authorized; 139,237,697 and 141,661,713 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively 1,392 1,417
Additional paid-in capital 624,312 658,720
Retained earnings 1,485,981 1,396,787
Total stockholders’ equity 2,111,685 2,056,924
Noncontrolling interests 13 13
Total equity 2,111,698 2,056,937
Total liabilities and equity $ 3,941,471 $ 3,884,203
v3.19.3
Consolidated Balance Sheets (Parenthetical) - $ / shares
Sep. 30, 2019
Dec. 31, 2018
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) 139,237,697 141,661,713
Common stock, shares outstanding (shares) 139,237,697 141,661,713
v3.19.3
Consolidated Statements of Operations (unaudited) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Disaggregation of Revenue [Line Items]        
Total revenues $ 748,395 $ 775,071 $ 1,941,741 $ 2,130,050
Other operations expense 609 590 1,826 1,781
Sales and marketing 47,834 44,854 133,888 128,881
General and administrative 38,751 38,109 114,202 111,406
Homebuilding income from operations 82,178 81,751 108,467 221,014
Equity in income (loss) of unconsolidated entities 18 15 (33) (384)
Other income (expense), net 325 (477) 6,719 (379)
Homebuilding income before income taxes 82,521 81,289 115,153 220,251
Equity in income of unconsolidated entities 2,114 1,986 4,861 4,972
Financial services income before income taxes 2,198 2,341 5,055 5,735
Income before income taxes 84,719 83,630 120,208 225,986
Provision for income taxes (21,858) (19,661) (31,014) (55,457)
Net income $ 62,861 $ 63,969 $ 89,194 $ 170,529
Earnings per share        
Basic (in dollars per share) $ 0.45 $ 0.43 $ 0.63 $ 1.13
Diluted (in dollars per share) $ 0.44 $ 0.43 $ 0.63 $ 1.13
Weighted average shares outstanding        
Basic (shares) 141,088,381 147,725,074 141,729,759 150,377,472
Diluted (shares) 141,533,546 148,318,032 142,128,786 151,482,456
Home sales        
Disaggregation of Revenue [Line Items]        
Home sales and Land and lot sales revenue $ 746,269 $ 771,768 $ 1,931,110 $ 2,123,135
Cost of sales and expenses 577,627 607,053 1,573,847 1,661,651
Land and lots        
Disaggregation of Revenue [Line Items]        
Home sales and Land and lot sales revenue 607 2,225 6,819 3,966
Cost of sales and expenses 495 2,234 7,552 4,163
Other operations        
Disaggregation of Revenue [Line Items]        
Total revenues 618 598 1,853 1,795
Homebuilding        
Disaggregation of Revenue [Line Items]        
Total revenues 747,494 774,591 1,939,782 2,128,896
Financial Services        
Disaggregation of Revenue [Line Items]        
Home sales and Land and lot sales revenue 901 480 1,959 1,154
Total revenues 901 480 1,959 1,154
Cost of sales and expenses 817 125 1,765 391
Operating segments | Financial services | Financial Services        
Disaggregation of Revenue [Line Items]        
Income before income taxes $ 2,198 $ 2,341 $ 5,055 $ 5,735
v3.19.3
Consolidated Statements of Equity (unaudited) - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-in Capital
Retained Earnings
Total Stockholders' Equity
Noncontrolling Interests
Beginning Balance at Dec. 31, 2017 $ 1,930,327 $ 1,512 $ 793,980 $ 1,134,230 $ 1,929,722 $ 605
Beginning Balance (shares) at Dec. 31, 2017   151,162,999        
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 170,529     170,529 170,529  
Shares issued under share-based awards 1,943 $ 9 1,934   1,943  
Shares issued under share-based awards (shares)   891,323        
Minimum tax withholding paid on behalf of employees for restricted stock units (6,049)   (6,049)   (6,049)  
Stock-based compensation expense 10,955   10,955   10,955  
Share repurchases (139,349) $ (99) (139,250)   (139,349)  
Share repurchases (Shares)   (9,852,009)        
Distributions to noncontrolling interests, net (1)         (1)
Ending Balance at Sep. 30, 2018 1,961,001 $ 1,422 661,570 1,297,405 1,960,397 604
Ending Balance (shares) at Sep. 30, 2018   142,202,313        
Beginning Balance at Jun. 30, 2018 2,032,306 $ 1,520 796,746 1,233,436 2,031,702 604
Beginning Balance (shares) at Jun. 30, 2018   152,027,014        
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 63,969     63,969 63,969  
Shares issued under share-based awards 310 $ 1 309   310  
Shares issued under share-based awards (shares)   27,308        
Stock-based compensation expense 3,765   3,765   3,765  
Share repurchases (139,349) $ (99) (139,250)   (139,349)  
Share repurchases (Shares)   (9,852,009)        
Ending Balance at Sep. 30, 2018 1,961,001 $ 1,422 661,570 1,297,405 1,960,397 604
Ending Balance (shares) at Sep. 30, 2018   142,202,313        
Beginning Balance at Dec. 31, 2018 $ 2,056,937 $ 1,417 658,720 1,396,787 2,056,924 13
Beginning Balance (shares) at Dec. 31, 2018 141,661,713 141,661,713        
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income $ 89,194     89,194 89,194  
Shares issued under share-based awards 300 $ 6 294   300  
Shares issued under share-based awards (shares)   611,404        
Minimum tax withholding paid on behalf of employees for restricted stock units (3,612)   (3,612)   (3,612)  
Stock-based compensation expense 10,614   10,614   10,614  
Share repurchases (41,735) $ (31) (41,704)   (41,735)  
Share repurchases (Shares)   (3,035,420)        
Ending Balance at Sep. 30, 2019 $ 2,111,698 $ 1,392 624,312 1,485,981 2,111,685 13
Ending Balance (shares) at Sep. 30, 2019 139,237,697 139,237,697        
Beginning Balance at Jun. 30, 2019 $ 2,086,643 $ 1,423 662,087 1,423,120 2,086,630 13
Beginning Balance (shares) at Jun. 30, 2019   142,258,663        
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 62,861     62,861 62,861  
Shares issued under share-based awards 101 $ 0 101   101  
Shares issued under share-based awards (shares)   14,454        
Minimum tax withholding paid on behalf of employees for restricted stock units 0   0   0  
Stock-based compensation expense 3,828   3,828   3,828  
Share repurchases (41,735) $ (31) (41,704)   (41,735)  
Share repurchases (Shares)   (3,035,420)        
Ending Balance at Sep. 30, 2019 $ 2,111,698 $ 1,392 $ 624,312 $ 1,485,981 $ 2,111,685 $ 13
Ending Balance (shares) at Sep. 30, 2019 139,237,697 139,237,697        
v3.19.3
Consolidated Statements of Cash Flows (unaudited) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Cash flows from operating activities:    
Net income $ 89,194 $ 170,529
Adjustments to reconcile net income to net cash (used in) provided by operating activities:    
Depreciation and amortization 18,357 19,581
Equity in income of unconsolidated entities, net (4,828) (4,588)
Deferred income taxes, net 10,493 19,729
Amortization of stock-based compensation 10,614 10,955
Charges for impairments and lot option abandonments 6,519 1,500
Changes in assets and liabilities:    
Real estate inventories (142,599) (315,825)
Receivables (18,915) 40,612
Other assets (9,086) (14,486)
Accounts payable (34) 10,841
Accrued expenses and other liabilities (60,239) (17,716)
Returns on investments in unconsolidated entities, net 6,215 6,778
Net cash used in operating activities (94,309) (72,090)
Cash flows from investing activities:    
Purchases of property and equipment (22,392) (24,547)
Proceeds from sale of property and equipment 46 8
Investments in unconsolidated entities (712) (1,812)
Net cash used in investing activities (23,058) (26,351)
Cash flows from financing activities:    
Borrowings from debt 400,000 100,000
Repayment of debt (381,895) (57,931)
Debt issuance costs (3,125) 0
Distributions to noncontrolling interests 0 (1)
Proceeds from issuance of common stock under share-based awards 300 1,943
Minimum tax withholding paid on behalf of employees for share-based awards (3,612) (6,049)
Share repurchases (41,735) (139,349)
Net cash used in financing activities (30,067) (101,387)
Net decrease in cash and cash equivalents (147,434) (199,828)
Cash and cash equivalents–beginning of period 277,696 282,914
Cash and cash equivalents–end of period $ 130,262 $ 83,086
v3.19.3
Organization, Basis of Presentation and Summary of Significant Accounting Policies
9 Months Ended
Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization, Basis of Presentation and Summary of Significant Accounting Policies
Organization, Basis of Presentation and Summary of Significant Accounting Policies

Organization
TRI Pointe is engaged in the design, construction and sale of innovative single-family attached and detached homes through its portfolio of six quality brands across nine states, including Maracay in Arizona, Pardee Homes in California and Nevada, Quadrant Homes in Washington, Trendmaker Homes in Texas, TRI Pointe Homes in California, Colorado and North Carolina and Winchester Homes in Maryland and Virginia.
Basis of Presentation
The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They should be read in conjunction with our consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018. In the opinion of management, all adjustments consisting of normal recurring adjustments, necessary for a fair presentation with respect to interim financial statements, have been included. The results for the three and nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for the full year ending December 31, 2019 due to seasonal variations and other factors.
The consolidated financial statements include the accounts of TRI Pointe Group and its wholly owned subsidiaries, as well as other entities in which TRI Pointe Group has a controlling interest and variable interest entities (“VIEs”) in which TRI Pointe Group is the primary beneficiary.  The noncontrolling interests as of September 30, 2019 and December 31, 2018 represent the outside owners’ interests in the Company’s consolidated entities.  All significant intercompany accounts have been eliminated upon consolidation.
Use of Estimates
Our financial statements have been prepared in accordance with GAAP. The preparation of these financial statements requires our management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from our estimates.
Revenue Recognition
We recognize revenue in accordance with Accounting Standards Topic 606 (“ASC 606”), Revenue from Contracts with Customers. Under ASC 606, we apply the following steps to determine the timing and amount of revenue to recognize: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation.
Home sales revenue
We generate the majority of our total revenues from home sales, which consists of our core business operation of building and delivering completed homes to homebuyers. Home sales revenue and related profit is generally recognized when title to and possession of the home is transferred to the homebuyer at the home closing date. Our performance obligation to deliver the agreed-upon home is generally satisfied in less than one year from the original contract date. Included in home sales revenue are forfeited deposits, which occur when homebuyers cancel home purchase contracts that include a nonrefundable deposit. Both revenue from forfeited deposits and deferred revenue resulting from uncompleted performance obligations existing at the time we deliver new homes to our homebuyers are immaterial.
Land and lot sales revenue
Historically, we have generated land and lot sales revenue from a small number of transactions, although in some years we have realized a significant amount of revenue and gross margin. We do not expect our future land and lot sales revenue to
be material, but we still consider these sales to be an ordinary part of our business, thus meeting the definition of contracts with customers. Similar to our home sales, revenue from land and lot sales is typically fully recognized when the land and lot sales transactions are consummated, at which time no further performance obligations are left to be satisfied. Some of our historical land and lot sales have included future profit participation rights. We will recognize future land and lot sales revenue in the periods in which all closing conditions are met, subject to the constraint on variable consideration related to profit participation rights, if such rights exist in the sales contract.
Other operations revenue
The majority of our homebuilding other operations revenue relates to a ground lease at our Quadrant Homes reporting segment. We are responsible for making lease payments to the land owner, and we collect sublease payments from the buyers of the buildings. This ground lease is accounted for in accordance with ASC Topic 842, Leases. We do not recognize a material profit on this ground lease.
Financial services revenues
TRI Pointe Solutions is a reportable segment and is comprised of our TRI Pointe Connect mortgage financing operations, TRI Pointe Assurance title and escrow services operations, and TRI Pointe Advantage property and casualty insurance agency operations.
Mortgage financing operations
TRI Pointe Connect was formed as a joint venture with an established mortgage lender and is accounted for under the equity method of accounting.  We record a percentage of income earned by TRI Pointe Connect based on our ownership percentage in this joint venture. TRI Pointe Connect activity appears as equity in income of unconsolidated entities under the Financial Services section of our consolidated statements of operations.
Title and escrow services operations
TRI Pointe Assurance provides title examinations for our homebuyers in Austin, Colorado and Maryland and both title examinations and escrow services for our homebuyers in Arizona, Nevada, Texas and Virginia.  TRI Pointe Assurance is a wholly owned subsidiary of TRI Pointe and acts as a title agency for First American Title Insurance Company. Revenue from our title and escrow services operations is fully recognized at the time of the consummation of the home sales transaction, at which time no further performance obligations are left to be satisfied. TRI Pointe Assurance revenue is included in the Financial Services section of our consolidated statements of operations.
Property and casualty insurance agency operations
TRI Pointe Advantage is a wholly owned subsidiary of TRI Pointe and provides property and casualty insurance agency services that help facilitate the closing process in all of the markets in which we operate. The total consideration for these services, including renewal options, is estimated upon the issuance of the initial insurance policy, subject to constraint. TRI Pointe Advantage revenue is included in the Financial Services section of our consolidated statements of operations.
Recently Issued Accounting Standards Not Yet Adopted
In January 2017, the FASB issued Accounting Standards Update No. 2017-04, IntangiblesGoodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment (“ASU 2017-04”), which removes the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted, and applied prospectively. We do not expect the adoption of ASU 2017-04 to have a material impact on our financial statements.
In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted. We are still evaluating the impact ASU 2016-13 will have on our consolidated financial statements.

Adoption of New Accounting Standards
In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Codified as “ASC 842”), which requires an entity to recognize a lease right-of-use asset and lease liability on the balance sheet for the rights and obligations created by leases with durations of greater than 12 months. Right-of-use lease assets represent our right to use the underlying asset for the lease term and the lease obligation represents our commitment to make the lease payments arising from the lease. The guidance also requires more disclosures about leases in the notes to financial statements. We adopted ASC 842 on January 1, 2019, using a modified retrospective approach resulting in the recognition of a cumulative effect adjustment to the opening balance sheet of $57.4 million, which included a lease right-of-use asset offset by a lease liability on our consolidated balance sheet. No prior period adjustment was recorded. Additionally, we have elected the transition package of three practical expedients permitted under ASC 842, which among other things, allows us to retain the current operating classification for all of our existing leases prior to January 1, 2019. For further details on the adoption of ASC 842, see Note 13, Commitments and Contingencies.
v3.19.3
Segment Information
9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Segment Information
Segment Information
We operate two principal businesses: homebuilding and financial services.
Our homebuilding operations consist of six homebuilding brands that acquire and develop land and construct and sell single-family detached and attached homes. In accordance with ASC Topic 280, Segment Reporting, in determining the most appropriate reportable segments, we considered similar economic and other characteristics, including product types, average selling prices, gross profits, production processes, suppliers, subcontractors, regulatory environments, land acquisition results, and underlying demand and supply. Based upon these factors, our homebuilding operations are comprised of the following six reportable segments: Maracay, consisting of operations in Arizona; Pardee Homes, consisting of operations in California and Nevada; Quadrant Homes, consisting of operations in Washington; Trendmaker Homes, consisting of operations in Texas; TRI Pointe Homes, consisting of operations in California, Colorado and North Carolina; and Winchester Homes, consisting of operations in Maryland and Virginia.
Our TRI Pointe Solutions financial services operation is a reportable segment and is comprised of our TRI Pointe Connect mortgage financing operations, our TRI Pointe Assurance title and escrow services operations, and our TRI Pointe Advantage property and casualty insurance agency operations. For further details, see Note 1, Organization, Basis of Presentation and Summary of Significant Accounting Policies.
Corporate is a non-operating segment that develops and implements company-wide strategic initiatives and provides support to our homebuilding reporting segments by centralizing certain administrative functions, such as marketing, legal, accounting, treasury, insurance, internal audit and risk management, information technology and human resources, to benefit from economies of scale. Our Corporate non-operating segment also includes general and administrative expenses related to operating our corporate headquarters. A portion of the expenses incurred by Corporate is allocated to the homebuilding reporting segments.
The reportable segments follow the same accounting policies used for our consolidated financial statements, as described in Note 1, Organization, Basis of Presentation and Summary of Significant Accounting Policies. Operational results of each reportable segment are not necessarily indicative of the results that would have been achieved had the reportable segment been an independent, stand-alone entity during the periods presented.

Total revenues and income before income taxes for each of our reportable segments were as follows (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Revenues
 
 
 
 
 
 
 
Maracay
$
70,860

 
$
66,730

 
$
166,074

 
$
182,134

Pardee Homes
321,922

 
224,452

 
651,484

 
648,208

Quadrant Homes
49,875

 
66,174

 
164,812

 
193,481

Trendmaker Homes
103,428

 
78,606

 
296,212

 
197,730

TRI Pointe Homes
154,737

 
264,499

 
519,280

 
710,561

Winchester Homes
46,672

 
74,130

 
141,920

 
196,782

Total homebuilding revenues
747,494

 
774,591

 
1,939,782

 
2,128,896

Financial services
901

 
480

 
1,959

 
1,154

Total
$
748,395

 
$
775,071

 
$
1,941,741

 
$
2,130,050

 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
 
 
 
 
 
 
Maracay
$
6,179

 
$
6,260

 
$
10,355

 
$
15,665

Pardee Homes
73,790

 
36,087

 
87,734

 
122,195

Quadrant Homes
1,600

 
9,269

 
4,154

 
25,206

Trendmaker Homes
5,578

 
7,379

 
10,888

 
13,977

TRI Pointe Homes
7,245

 
30,945

 
29,734

 
69,651

Winchester Homes
(71
)
 
4,122

 
1,718

 
9,908

Corporate
(11,800
)
 
(12,773
)
 
(29,430
)
 
(36,351
)
Total homebuilding income before income taxes
82,521

 
81,289

 
115,153

 
220,251

Financial services
2,198

 
2,341

 
5,055

 
5,735

Total
$
84,719

 
$
83,630

 
$
120,208

 
$
225,986

 
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, 2019
 
December 31, 2018
Real estate inventories
 
 
 
Maracay
$
346,337

 
$
293,217

Pardee Homes
1,343,809

 
1,286,877

Quadrant Homes
293,220

 
279,486

Trendmaker Homes
274,130

 
271,061

TRI Pointe Homes
803,339

 
812,799

Winchester Homes
284,555

 
272,619

Total
$
3,345,390

 
$
3,216,059

 
 
 
 
Total assets
 
 
 
Maracay
$
379,817

 
$
318,703

Pardee Homes
1,451,879

 
1,391,503

Quadrant Homes
350,305

 
313,947

Trendmaker Homes
320,998

 
325,943

TRI Pointe Homes
995,806

 
987,610

Winchester Homes
317,583

 
298,602

Corporate
101,365

 
228,010

Total homebuilding assets
3,917,753

 
3,864,318

Financial services
23,718

 
19,885

Total
$
3,941,471

 
$
3,884,203


v3.19.3
Earnings Per Share
9 Months Ended
Sep. 30, 2019
Earnings Per Share [Abstract]  
Earnings Per Share
Earnings Per Share
The following table sets forth the components used in the computation of basic and diluted earnings per share (in thousands, except share and per share amounts):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Numerator:
 

 
 

 
 

 
 

Net income
$
62,861

 
$
63,969

 
$
89,194

 
$
170,529

Denominator:
 

 
 

 
 

 
 

Basic weighted-average shares outstanding
141,088,381

 
147,725,074

 
141,729,759

 
150,377,472

Effect of dilutive shares:
 

 
 
 
 

 
 

Stock options and unvested restricted stock units
445,165

 
592,958

 
399,027

 
1,104,984

Diluted weighted-average shares outstanding
141,533,546

 
148,318,032

 
142,128,786

 
151,482,456

Earnings per share
 

 
 

 
 

 
 

Basic
$
0.45

 
$
0.43

 
$
0.63

 
$
1.13

Diluted
$
0.44

 
$
0.43

 
$
0.63

 
$
1.13

Antidilutive stock options and unvested restricted stock units not included in diluted earnings per share
2,459,868

 
2,008,612

 
2,916,252

 
1,280,500


v3.19.3
Receivables
9 Months Ended
Sep. 30, 2019
Receivables [Abstract]  
Receivables
Receivables
Receivables consisted of the following (in thousands):
 
September 30, 2019
 
December 31, 2018
Escrow proceeds and other accounts receivable, net
$
33,106

 
$
13,995

Warranty insurance receivable (Note 13)
37,401

 
37,597

Total receivables
$
70,507

 
$
51,592



Receivables are evaluated for collectability and allowances for potential losses are established or maintained on applicable receivables when collection becomes doubtful.  Receivables were net of allowances for doubtful accounts of $451,000 and $667,000 as of September 30, 2019 and December 31, 2018, respectively.
v3.19.3
Real Estate Inventories
9 Months Ended
Sep. 30, 2019
Inventory Disclosure [Abstract]  
Real Estate Inventories
Real Estate Inventories
Real estate inventories consisted of the following (in thousands):
 
September 30, 2019
 
December 31, 2018
Real estate inventories owned:
 
 
 
Homes completed or under construction
$
1,217,154

 
$
959,911

Land under development
1,654,172

 
1,743,537

Land held for future development
129,880

 
201,874

Model homes
273,173

 
238,828

Total real estate inventories owned
3,274,379

 
3,144,150

Real estate inventories not owned:
 
 
 
Land purchase and land option deposits
71,011

 
71,909

Total real estate inventories not owned
71,011

 
71,909

Total real estate inventories
$
3,345,390

 
$
3,216,059


 
Homes completed or under construction is comprised of costs associated with homes in various stages of construction and includes direct construction and related land acquisition and land development costs. Land under development primarily consists of land acquisition and land development costs, which include capitalized interest and real estate taxes, associated with land undergoing improvement activity. Land held for future development principally reflects land acquisition and land development costs related to land where development activity has not yet begun or has been suspended, but is expected to occur in the future. The decrease in land held under development as of September 30, 2019 compared to December 31, 2018 is attributable to two communities in which we commenced development activity during the three months ended September 30, 2019.
Real estate inventories not owned represents deposits related to land purchase and land and lot option agreements as well as consolidated inventory held by variable interest entities. For further details, see Note 7, Variable Interest Entities.
Interest incurred, capitalized and expensed were as follows (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Interest incurred
$
22,405

 
$
23,942

 
$
67,740

 
$
67,089

Interest capitalized
(22,405
)
 
(23,942
)
 
(67,740
)
 
(67,089
)
Interest expensed
$

 
$

 
$

 
$

Capitalized interest in beginning inventory
$
197,295

 
$
185,589

 
$
184,400

 
$
176,348

Interest capitalized as a cost of inventory
22,405

 
23,942

 
67,740

 
67,089

Interest previously capitalized as a cost of
inventory, included in cost of sales
(19,234
)
 
(20,293
)
 
(51,674
)
 
(54,199
)
Capitalized interest in ending inventory
$
200,466

 
$
189,238

 
$
200,466

 
$
189,238


 
Interest is capitalized to real estate inventory during development and other qualifying activities. During all periods presented, we capitalized all interest incurred to real estate inventory in accordance with ASC Topic 835, Interest, as our qualified assets exceeded our debt. Interest that is capitalized to real estate inventory is included in cost of home sales or cost of land and lot sales as related units or lots are delivered.  Interest that is expensed as incurred is included in other (expense) income, net.
Real Estate Inventory Impairments and Land Option Abandonments
Real estate inventory impairments and land and lot option abandonments and pre-acquisition charges consisted of the following (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Real estate inventory impairments
$

 
$

 
$

 
$

Land and lot option abandonments and pre-acquisition charges
1,029

 
643

 
6,519

 
1,500

Total
$
1,029

 
$
643

 
$
6,519

 
$
1,500


 
Impairments of real estate inventory relate primarily to projects or communities that include homes completed or under construction. Within a project or community, there may be individual homes or parcels of land that are currently held for sale. Impairment charges recognized as a result of adjusting individual held-for-sale assets within a community to estimated fair value less cost to sell are also included in the total impairment charges. No real estate inventory impairments were recorded for the three or nine-month periods ended September 30, 2019 or 2018.
In addition to owning land and residential lots, we also have option agreements to purchase land and lots at a future date. We have option deposits and capitalized pre-acquisition costs associated with the optioned land and lots. When the economics of a project no longer support acquisition of the land or lots under option, we may elect not to move forward with the acquisition. Option deposits and capitalized pre-acquisition costs associated with the assets under option may be forfeited at that time. 
Real estate inventory impairments and land option abandonments are recorded in cost of home sales and cost of land and lot sales on the consolidated statements of operations.
v3.19.3
Investments in Unconsolidated Entities
9 Months Ended
Sep. 30, 2019
Equity Method Investments and Joint Ventures [Abstract]  
Investments in Unconsolidated Entities
Investments in Unconsolidated Entities
As of September 30, 2019, we held equity investments in four active homebuilding partnerships or limited liability companies and one financial services limited liability company. Our participation in these entities may be as a developer, a builder, or an investment partner. Our ownership percentage varies from 7% to 65%, depending on the investment, with no controlling interest held in any of these investments.
Unconsolidated Financial Information
Aggregated assets, liabilities and operating results of the entities we account for as equity-method investments are provided below. Because our ownership interest in these entities varies, a direct relationship does not exist between the information presented below and the amounts that are reflected on our consolidated balance sheets as our investments in unconsolidated entities or on our consolidated statements of operations as equity in income of unconsolidated entities.
Assets and liabilities of unconsolidated entities (in thousands):
 
 
September 30, 2019
 
December 31, 2018
Assets
 
 
 
Cash
$
9,740

 
$
13,337

Receivables
5,250

 
4,674

Real estate inventories
102,878

 
99,864

Other assets
672

 
811

Total assets
$
118,540

 
$
118,686

Liabilities and equity
 
 
 
Accounts payable and other liabilities
$
7,743

 
$
11,631

Company’s equity
4,207

 
5,410

Outside interests’ equity
106,590

 
101,645

Total liabilities and equity
$
118,540

 
$
118,686

 
Results of operations from unconsolidated entities (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Net sales
$
8,617

 
$
6,185

 
$
19,081

 
$
19,900

Other operating expense
(5,466
)
 
(2,951
)
 
(11,746
)
 
(13,510
)
Other income, net
173

 
1

 
174

 
85

Net income
$
3,324

 
$
3,235

 
$
7,509

 
$
6,475

Company’s equity in income of unconsolidated entities
$
2,132

 
$
2,001

 
$
4,828

 
$
4,588


v3.19.3
Variable Interest Entities
9 Months Ended
Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Variable Interest Entities
Variable Interest Entities
In the ordinary course of business, we enter into land and lot option agreements in order to procure land and residential lots for future development and the construction of homes. The use of such land and lot option agreements generally allows us to reduce the risks associated with direct land ownership and development, and reduces our capital and financial commitments. Pursuant to these land and lot option agreements, we generally provide a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. These deposits are recorded as land purchase and land option deposits under real estate inventories not owned on the accompanying consolidated balance sheets.
We analyze each of our land and lot option agreements and other similar contracts under the provisions of ASC 810, Consolidation to determine whether the land seller is a VIE and, if so, whether we are the primary beneficiary. Although we do not have legal title to the underlying land, if we are determined to be the primary beneficiary of the VIE, we will consolidate the VIE in our financial statements and reflect its assets as real estate inventory not owned included in our real estate inventories, its liabilities as debt (nonrecourse) held by VIEs in accrued expenses and other liabilities and the net equity of the VIE owners as noncontrolling interests on our consolidated balance sheets. In determining whether we are the primary beneficiary, we consider, among other things, whether we have the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance. Such activities would include, among other things, determining or limiting the scope or purpose of the VIE, selling or transferring property owned or controlled by the VIE, or arranging financing for the VIE.
Creditors of the entities with which we have land and lot option agreements have no recourse against us. The maximum exposure to loss under our land and lot option agreements is generally limited to non-refundable option deposits and any capitalized pre-acquisition costs. In some cases, we have also contracted to complete development work at a fixed cost on behalf of the land owner and budget shortfalls and savings will be borne by us. Additionally, we have entered into land banking arrangements which require us to complete development work even if we terminate the option to procure land or lots.
The following provides a summary of our interests in land and lot option agreements (in thousands):
 
September 30, 2019
 
December 31, 2018
 
Deposits
 
Remaining
Purchase
Price
 
Consolidated
Inventory
Held by VIEs
 
Deposits
 
Remaining
Purchase
Price
 
Consolidated
Inventory
Held by VIEs
Consolidated VIEs
$

 
$

 
$

 
$

 
$

 
$

Unconsolidated VIEs
45,243

 
403,246

 
N/A

 
41,198

 
433,720

 
N/A

Other land option agreements
25,768

 
327,033

 
N/A

 
30,711

 
307,498

 
N/A

Total
$
71,011

 
$
730,279

 
$

 
$
71,909

 
$
741,218

 
$


 
Unconsolidated VIEs represent land option agreements that were not consolidated because we were not the primary beneficiary. Other land option agreements were not considered VIEs.
In addition to the deposits presented in the table above, our exposure to loss related to our land and lot option contracts consisted of capitalized pre-acquisition costs of $7.2 million and $7.5 million as of September 30, 2019 and December 31, 2018, respectively. These pre-acquisition costs are included in real estate inventories as land under development on our consolidated balance sheets.
v3.19.3
Goodwill and Other Intangible Assets
9 Months Ended
Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
As of September 30, 2019 and December 31, 2018, $139.3 million of goodwill is included in goodwill and other intangible assets, net on each of the consolidated balance sheets. The Company’s goodwill balance is included in the TRI Pointe Homes reporting segment in Note 2, Segment Information
We have two intangible assets as of September 30, 2019, comprised of an existing trade name from the acquisition of Maracay in 2006, which has a 20 year useful life, and a TRI Pointe Homes trade name resulting from the acquisition of Weyerhaeuser Real Estate Company in 2014, which has an indefinite useful life.
Goodwill and other intangible assets consisted of the following (in thousands):
 
September 30, 2019
 
December 31, 2018
 
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

 
(7,257
)
 
20,722

 
27,979

 
(6,856
)
 
21,123

Total
$
167,283

 
$
(7,257
)
 
$
160,026

 
$
167,283

 
$
(6,856
)
 
$
160,427


 
The remaining useful life of our amortizing intangible asset related to the Maracay trade name was 6.4 and 7.2 years as of September 30, 2019 and December 31, 2018, respectively. The net carrying amount related to this intangible asset was $3.4 million and $3.8 million as of September 30, 2019 and December 31, 2018, respectively. Amortization expense related to this intangible asset was $133,000 for each of the three-month periods ended September 30, 2019 and 2018, respectively, and $401,000 for each of the nine-month periods ended September 30, 2019 and 2018, respectively. Amortization of this intangible was charged to sales and marketing expense.  Our $17.3 million indefinite life intangible asset related to the TRI Pointe Homes trade name is not amortizing.  All trade names are evaluated for impairment on an annual basis or more frequently if indicators of impairment exist.
Expected amortization of our intangible asset related to Maracay for the remainder of 2019, the next four years and thereafter is (in thousands):
Remainder of 2019
$
133

2020
534

2021
534

2022
534

2023
534

Thereafter
1,153

Total
$
3,422


v3.19.3
Other Assets
9 Months Ended
Sep. 30, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Other Assets
Other Assets
Other assets consisted of the following (in thousands):
 
September 30, 2019
 
December 31, 2018
Prepaid expenses
$
26,943

 
$
31,983

Refundable fees and other deposits
24,556

 
12,376

Development rights, held for future use or sale
2,250

 
845

Deferred loan costs–loans payable
4,663

 
2,424

Operating properties and equipment, net
59,367

 
54,198

Lease right-of-use assets
52,462

 

Other
3,563

 
3,425

Total
$
173,804

 
$
105,251



Lease right-of-use assets was impacted by our one-time cumulative adjustment resulting from the adoption of ASC 842. As a result of our cumulative adjustment, the December 31, 2018 balance increased by $57.4 million on January 1, 2019. For further details, see Note 1, Organization, Basis of Presentation and Summary of Significant Accounting Policies and Note 13, Commitments and Contingencies.
v3.19.3
Accrued Expenses and Other Liabilities
9 Months Ended
Sep. 30, 2019
Payables and Accruals [Abstract]  
Accrued Expenses and Other Liabilities
Accrued Expenses and Other Liabilities
Accrued expenses and other liabilities consisted of the following (in thousands):
 
September 30, 2019
 
December 31, 2018
Accrued payroll and related costs
$
28,660

 
$
44,010

Warranty reserves (Note 13)
72,893

 
71,836

Estimated cost for completion of real estate inventories
86,232

 
114,928

Customer deposits
23,587

 
17,464

Income tax liability to Weyerhaeuser
577

 
6,577

Accrued income taxes payable
4,315

 
8,335

Liability for uncertain tax positions (Note 15)
972

 
972

Accrued interest
19,135

 
12,572

Other tax liability
8,003

 
21,892

Lease liabilities
57,513

 
3,196

Other
13,549

 
33,367

Total
$
315,436

 
$
335,149



Lease liabilities was impacted by our one-time cumulative adjustment resulting from the adoption of ASC 842. As a result of our cumulative adjustment, the December 31, 2018 balance increased by $57.4 million on January 1, 2019. For further details, see Note 1, Organization, Basis of Presentation and Summary of Significant Accounting Policies and Note 13, Commitments and Contingencies.
v3.19.3
Senior Notes and Loans Payable
9 Months Ended
Sep. 30, 2019
Debt Disclosure [Abstract]  
Senior Notes and Loans Payable
Senior Notes and Loans Payable
Senior Notes
The Company’s outstanding senior notes (together, the “Senior Notes”) consisted of the following (in thousands):

 
September 30, 2019
 
December 31, 2018
4.375% Senior Notes due June 15, 2019
$

 
$
381,895

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

 
300,000

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

 
450,000

5.250% Senior Notes due June 1, 2027
300,000

 
300,000

Discount and deferred loan costs
(16,942
)
 
(21,091
)
Total
$
1,033,058

 
$
1,410,804


 
In June 2017, TRI Pointe Group issued $300 million aggregate principal amount of 5.250% Senior Notes due 2027 (the “2027 Notes”) at 100.00% of their aggregate principal amount. Net proceeds of this issuance were $296.3 million, after debt issuance costs and discounts. The 2027 Notes mature on June 1, 2027 and interest is paid semiannually in arrears on June 1 and December 1.
In May 2016, TRI Pointe Group issued $300 million aggregate principal amount of 4.875% Senior Notes due 2021 (the “2021 Notes”) at 99.44% of their aggregate principal amount. Net proceeds of this issuance were $293.9 million, after debt issuance costs and discounts. The 2021 Notes mature on July 1, 2021 and interest is paid semiannually in arrears on January 1 and July 1.
TRI Pointe Group and its wholly owned subsidiary TRI Pointe Homes, Inc. (“TRI Pointe Homes”) are co-issuers of the 5.875% Senior Notes due 2024 (the “2024 Notes”) and the 4.375% Senior Notes that matured on June 15, 2019 (the “2019 Notes”). The 2024 Notes were issued at 98.15% of their aggregate principal amount. The net proceeds from the offering of the 2019 Notes and the 2024 Notes were $861.3 million, after debt issuance costs and discounts. The 2024 Notes mature on June 15, 2024, with interest payable semiannually in arrears on June 15 and December 15. In June 2019, we repaid the remaining $381.9 million of principal balance of the 2019 Notes upon maturity. During the year ended December 31, 2018, we repurchased and cancelled an aggregate principal amount of $68.1 million of the 2019 Notes.
As of September 30, 2019, there was $11.7 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 $16.7 million and $11.5 million as of September 30, 2019 and December 31, 2018, respectively.
Loans Payable
The Company’s outstanding loans payable consisted of the following (in thousands):

 
September 30, 2019
 
December 31, 2018
Term loan facility
$
250,000

 
$

Unsecured revolving credit facility
150,000

 

Total
$
400,000

 
$



On March 29, 2019, the Company entered into a Second Amended and Restated Credit Agreement (the “Credit Agreement”), which amended and restated the Company’s Amended and Restated Credit Agreement, dated as of July 7, 2015. The Credit Facility (as defined below), which matures on March 29, 2023, consists of a $600 million revolving credit facility (the “Revolving Facility”) and a $250 million term loan facility (the “Term Facility” and together with the Revolving Facility,
the “Credit Facility”). The Term Facility includes a 90-day delayed draw provision that allowed the Company to draw the full $250 million from the Term Facility in June 2019 in connection with the maturity of the 2019 Notes. The Company may increase the Credit Facility to not more than $1 billion in the aggregate, at its request, upon satisfaction of specified conditions. The Revolving Facility contains a sublimit of $75 million for letters of credit. The Company may borrow under the Revolving Facility in the ordinary course of business to repay senior notes and fund its operations, including its land acquisition, land development and homebuilding activities. Borrowings under the Revolving Facility will be governed by, among other things, a borrowing base. Interest rates on borrowings under the Revolving Facility will be based on either a daily Eurocurrency base rate or a Eurocurrency rate, in either case, plus a spread ranging from 1.25% to 2.00%, depending on the Company’s leverage ratio. Interest rates on borrowings under the Term Facility will be based on either a daily Eurocurrency base rate or a Eurocurrency rate, in either case, plus a spread ranging from 1.10% to 1.85%, depending on the Company’s leverage ratio.
As of September 30, 2019, we had $150 million outstanding debt under the Revolving Facility with an interest rate of 3.85% per annum and there was $418.6 million of availability after considering the borrowing base provisions and outstanding letters of credit. As of September 30, 2019, we had $250 million outstanding debt under the Term Facility with an interest rate of 3.45%. As of September 30, 2019, there was $4.7 million of capitalized debt financing costs, included in other assets on our consolidated balance sheet, related to the Credit Facility that will amortize over the remaining term of the Credit Facility.  Accrued interest, including loan commitment fees, related to the Credit Facility was $754,000 and $402,000 as of September 30, 2019 and December 31, 2018, respectively.
At September 30, 2019 and December 31, 2018, we had outstanding letters of credit of $31.4 million and $31.8 million, respectively.  These letters of credit were issued to secure various financial obligations.  We believe it is not probable that any outstanding letters of credit will be drawn upon.
Interest Incurred
During the three months ended September 30, 2019 and 2018, the Company incurred interest of $22.4 million and $23.9 million, respectively, related to all debt during the period.  Included in interest incurred was amortization of deferred financing and Senior Note discount costs of $1.2 million and $2.0 million for the three months ended September 30, 2019 and 2018, respectively. During the nine months ended September 30, 2019 and 2018, the Company incurred interest of $67.7 million and $67.1 million, respectively, related to all debt during the period. Included in interest incurred was amortization of deferred financing and Senior Note discount costs of $5.0 million and $6.1 million for the nine months ended September 30, 2019 and 2018, respectively. Accrued interest related to all outstanding debt at September 30, 2019 and December 31, 2018 was $19.1 million and $12.6 million, respectively. 
Covenant Requirements
The Senior Notes contain covenants that restrict our ability to, among other things, create liens or other encumbrances, enter into sale and leaseback transactions, or merge or sell all or substantially all of our assets. These limitations are subject to a number of qualifications and exceptions.
Under the Credit Facility, the Company is required to comply with certain financial covenants, including those relating to consolidated tangible net worth, leverage, liquidity or interest coverage, and a spec unit inventory test. The Credit Facility also requires that at least 97.0% of consolidated tangible net worth must be attributable to the Company and its guarantor subsidiaries, subject to certain grace periods.
The Company was in compliance with all applicable financial covenants as of September 30, 2019 and December 31, 2018.
v3.19.3
Fair Value Disclosures
9 Months Ended
Sep. 30, 2019
Fair Value Disclosures [Abstract]  
Fair Value Disclosures
Fair Value Disclosures
Fair Value Measurements
ASC Topic 820, Fair Value Measurements and Disclosures, defines “fair value” as the price that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at measurement date and requires assets and liabilities carried at fair value to be classified and disclosed in the following three categories:
Level 1—Quoted prices for identical instruments in active markets
Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are inactive; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets at measurement date
Level 3—Valuations derived from techniques where one or more significant inputs or significant value drivers are unobservable in active markets at measurement date
Fair Value of Financial Instruments
A summary of assets and liabilities at September 30, 2019 and December 31, 2018, related to our financial instruments, measured at fair value on a recurring basis, is set forth below (in thousands):
 
 
 
September 30, 2019
 
December 31, 2018
 
Hierarchy
 
Book Value
 
Fair Value
 
Book Value
 
Fair Value
Senior Notes (1)
Level 2
 
$
1,044,775

 
$
1,084,875

 
$
1,425,397

 
$
1,308,826

Unsecured revolving credit facility (2)
Level 2
 
$
150,000

 
$
150,000

 
$

 
$

Term loan facility (2)
Level 2
 
$
250,000

 
$
250,000

 
$

 
$

 __________
(1) 
The book value of the Senior Notes is net of discounts, excluding deferred loan costs of $11.7 million and $14.6 million as of September 30, 2019 and December 31, 2018, respectively. The estimated fair value of the Senior Notes at September 30, 2019 and December 31, 2018 is based on quoted market prices.
(2) 
The estimated fair value of the Credit Facility and Term Loan Facility as of September 30, 2019 approximated book value due to the variable interest rate terms of these loans.

At September 30, 2019 and December 31, 2018, the carrying value of cash and cash equivalents and receivables approximated fair value due to their short-term nature and variable interest rate terms.
Fair Value of Nonfinancial Assets
Nonfinancial assets include items such as real estate inventories and long-lived assets that are measured at fair value on a nonrecurring basis when events and circumstances indicating the carrying value is not recoverable. No carrying values were adjusted to fair value for the nine months ended September 30, 2019 or the year ended December 31, 2018.
v3.19.3
Commitments and Contingencies
9 Months Ended
Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Commitments and Contingencies
Legal Matters
Lawsuits, claims and proceedings have been and may be instituted or asserted against us in the normal course of business, including actions brought on behalf of various classes of claimants. We are also subject to local, state and federal laws and regulations related to land development activities, house construction standards, sales practices, employment practices, environmental protection and financial services. As a result, we are subject to periodic examinations or inquiry by agencies administering these laws and regulations.
We record a reserve for potential legal claims and regulatory matters when they are probable of occurring and a potential loss is reasonably estimable. We accrue for these matters based on facts and circumstances specific to each matter and revise these estimates when necessary.  In view of the inherent difficulty of predicting outcomes of legal claims and related contingencies, we generally cannot predict their ultimate resolution, related timing or eventual loss. Accordingly, it is possible that the ultimate outcome of any matter, if in excess of a related accrual or if no accrual was made, could be material to our financial statements.  For matters as to which the Company believes a loss is probable and reasonably estimable, we had no legal reserve as of September 30, 2019. As of December 31, 2018, we had a $17.5 million legal reserve related to a settlement in connection with a previously disclosed lawsuit involving a land sale that occurred in 1987, included in accrued expenses and other liabilities on our consolidated balance sheet. This settlement was paid on February 4, 2019.
Warranty
Warranty reserves are accrued as home deliveries occur. Our warranty reserves on homes delivered will vary based on product type and geographic area and also depending on state and local laws. The warranty reserve is included in accrued expenses and other liabilities on our consolidated balance sheets and represents expected future costs based on our historical experience over previous years. Estimated warranty costs are charged to cost of home sales in the period in which the related home sales revenue is recognized.
We maintain general liability insurance designed to protect us against a portion of our risk of loss from warranty and construction defect-related claims. We also generally require our subcontractors and design professionals to indemnify us for
liabilities arising from their work, subject to various limitations. However, such indemnity is significantly limited with respect to certain subcontractors that are added to our general liability insurance policy. 
Our warranty reserve and related estimated insurance recoveries are based on actuarial analysis that uses our historical claim and expense data, as well as industry data to estimate these overall costs and related recoveries. Key assumptions used in developing these estimates include claim frequencies, severities and resolution patterns, which can occur over an extended period of time. These estimates are subject to variability due to the length of time between the delivery of a home to a homebuyer and when a warranty or construction defect claim is made, and the ultimate resolution of such claim; uncertainties regarding such claims relative to our markets and the types of product we build; and legal or regulatory actions and/or interpretations, among other factors. Due to the degree of judgment involved and the potential for variability in these underlying assumptions, our actual future costs could differ from those estimated. There can be no assurance that the terms and limitations of the limited warranty will be effective against claims made by homebuyers, that we will be able to renew our insurance coverage or renew it at reasonable rates, that we will not be liable for damages, cost of repairs, and/or the expense of litigation surrounding possible construction defects, soil subsidence or building related claims or that claims will not arise out of uninsurable events or circumstances not covered by insurance and not subject to effective indemnification agreements with certain subcontractors.
We also record expected recoveries from insurance carriers based on actual insurance claims made and actuarially determined amounts that depend on various factors, including the above-described reserve estimates, our insurance policy coverage limits for the applicable policy years and historical recovery rates. Because of the inherent uncertainty and variability in these assumptions, our actual insurance recoveries could differ significantly from amounts currently estimated. Outstanding warranty insurance receivables were $37.4 million and $37.6 million as of September 30, 2019 and December 31, 2018, respectively. Warranty insurance receivables are recorded in receivables on the accompanying consolidated balance sheets.
Warranty reserve activity consisted of the following (in thousands):
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Warranty reserves, beginning of period
$
71,471

 
$
72,342

 
$
71,836

 
$
69,373

Warranty reserves accrued
6,826

 
6,257

 
17,481

 
17,669

Warranty expenditures
(5,404
)
 
(4,604
)
 
(16,424
)
 
(13,047
)
Warranty reserves, end of period
$
72,893

 
$
73,995

 
$
72,893

 
$
73,995


 
Performance Bonds
We obtain surety bonds in the normal course of business to ensure completion of certain infrastructure improvements of our projects. The beneficiaries of the bonds are various municipalities. As of September 30, 2019 and December 31, 2018, the Company had outstanding surety bonds totaling $592.1 million and $685.7 million, respectively. As of September 30, 2019 and December 31, 2018, our estimated cost to complete obligations related to these surety bonds was $398.2 million and $423.4 million, respectively.
Lease Obligations
Under ASC 842 we recognize a right-of-use lease asset and a lease liability for contracts deemed to contain a lease at the inception of the contract. Our lease population is fully comprised of operating leases, which are now recorded at the net present value of future lease obligations existing at each balance sheet date. At the inception of a lease, or if a lease is subsequently modified, we determine whether the lease is an operating or financing lease. Key estimates involved with ASC 842 include the discount rate used to measure our future lease obligations and the lease term, where considerations include renewal options and intent to renew. Lease right-of-use assets are included in other assets and lease liabilities are included in accrued expenses and other liabilities on our consolidated balance sheet.
Operating Leases
We lease certain property and equipment under non-cancelable operating leases. Office leases are for terms of up to ten years and generally provide renewal options. In most cases, we expect that, in the normal course of business, leases that expire will be renewed or replaced by other leases. Equipment leases are typically for terms of three to four years.
Ground Leases
In 1987, we obtained two 55-year ground leases of commercial property that provided for three renewal options of ten years each and one 45-year renewal option.  We exercised the three ten-year extensions on one of these ground leases to extend the lease through 2071.  The commercial buildings on these properties have been sold and the ground leases have been sublet to the buyers.
For one of these leases, we are responsible for making lease payments to the land owner, and we collect sublease payments from the buyers of the buildings. This ground lease has been subleased through 2041 to the buyers of the commercial buildings. For the second lease, the buyers of the buildings are responsible for making lease payments directly to the land owner, however, we have guaranteed the performance of the buyers/lessees. See below for additional information on leases (dollars in thousands):

 
Three Months Ended September 30, 2019
 
Nine Months Ended September 30, 2019
Lease Cost
 
 
 
Operating lease cost (included in SG&A expense)
$
2,755

 
$
6,965

Ground lease cost (included in other operations expense)
609

 
1,826

Sublease income, ground leases (included in other operations revenue)
(618
)
 
(1,853
)
Net lease cost
$
2,746

 
$
6,938

 
 
 
 
Other information
 
 
 
Cash paid for amounts included in the measurement of lease liabilities:
 
 
 
Operating lease cash flows (included in operating cash flows)
$
1,556

 
$
4,806

Ground lease cash flows (included in operating cash flows)
$
609

 
$
1,826

Right-of-use assets obtained in exchange for new operating lease liabilities
$
311

 
$
2,364

 
September 30, 2019
Weighted-average discount rate:
 
Operating leases
6.0
%
Ground leases
10.2
%
Weighted-average remaining lease term (in years):
 
Operating leases
6.1

Ground leases
48.5


The future minimum lease payments under our operating leases are as follows (in thousands):
 
Property, Equipment and Other Leases
 
Ground Leases (1)
Remaining in 2019
$
2,278

 
$
746

2020
8,594

 
2,984

2021
7,182

 
2,984

2022
5,591

 
2,984

2023
4,484

 
2,984

Thereafter
9,155

 
84,266

Total lease payments
$
37,284

 
$
96,948

Less: Interest
6,708

 
70,011

Present value of operating lease liabilities
$
30,576

 
$
26,937

(1)     Ground leases are fully subleased through 2041, representing $65.9 million of the $96.9 million future ground lease obligations.
v3.19.3
Stock-Based Compensation
9 Months Ended
Sep. 30, 2019
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation
Stock-Based Compensation
2013 Long-Term Incentive Plan
The Company’s stock compensation plan, the 2013 Long-Term Incentive Plan (the “2013 Incentive Plan”), was adopted by TRI Pointe in January 2013 and amended, with the approval of our stockholders, in 2014 and 2015. In addition, our board of directors amended the 2013 Incentive Plan in 2014 to prohibit repricing (other than in connection with any equity restructuring or any change in capitalization) of outstanding options or stock appreciation rights without stockholder approval. The 2013 Incentive Plan provides for the grant of equity-based awards, including options to purchase shares of common stock, stock appreciation rights, bonus stock, restricted stock, restricted stock units (“RSUs”) and performance awards. The 2013 Incentive Plan will automatically expire on the tenth anniversary of its effective date. Our board of directors may terminate or amend the 2013 Incentive Plan at any time, subject to any requirement of stockholder approval required by applicable law, rule or regulation.
As amended, the number of shares of our common stock that may be issued under the 2013 Incentive Plan is 11,727,833 shares. To the extent that shares of our common stock subject to an outstanding option, stock appreciation right, stock award or performance award granted under the 2013 Incentive Plan are not issued or delivered by reason of the expiration, termination, cancellation or forfeiture of such award or the settlement of such award in cash, then such shares of our common stock generally shall again be available under the 2013 Incentive Plan. As of September 30, 2019, there were 5,835,420 shares available for future grant under the 2013 Incentive Plan.
The following table presents compensation expense recognized related to all stock-based awards (in thousands):
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Total stock-based compensation
$
3,828

 
$
3,765

 
$
10,614

 
$
10,955


 
Stock-based compensation is charged to general and administrative expense on the accompanying consolidated statements of operations.  As of September 30, 2019, total unrecognized stock-based compensation related to all stock-based awards was $21.8 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, 2019:
 
Options
 
Weighted
Average
Exercise
Price
Per Share
 
Weighted
Average
Remaining
Contractual
Life
 
Aggregate
Intrinsic
Value
(in thousands)
Options outstanding at December 31, 2018
953,905

 
$
14.58

 
4.2

 
$
296

Granted

 

 

 

Exercised
(46,940
)
 
$
6.66

 

 

Forfeited
(3,625
)
 
$
14.29

 

 

Options outstanding at September 30, 2019
903,340

 
$
15.00

 
3.6

 
$
786

Options exercisable at September 30, 2019
903,340

 
$
15.00

 
3.6

 
$
786


 
The intrinsic value of each stock option award outstanding or exercisable is the difference between the fair market value of the Company’s common stock at the end of the period and the exercise price of each stock option award to the extent it is considered “in-the-money”. A stock option award is considered to be “in-the-money” if the fair market value of the Company’s stock is greater than the exercise price of the stock option award. The aggregate intrinsic value of options outstanding and options exercisable represents the value that would have been received by the holders of stock option awards had they exercised their stock option award on the last trading day of the period and sold the underlying shares at the closing price on that day.

Summary of Restricted Stock Unit Activity
The following table presents a summary of RSUs for the nine months ended September 30, 2019:
 
Restricted
Stock
Units
 
Weighted
Average
Grant Date
Fair Value
Per Share
 
Aggregate
Intrinsic
Value
(in thousands)
Nonvested RSUs at December 31, 2018
3,341,848

 
$
11.05

 
$
36,526

Granted
1,656,333

 
$
12.15

 

Vested
(844,534
)
 
$
12.95

 

Forfeited
(756,672
)
 
$
5.32

 

Nonvested RSUs at September 30, 2019
3,396,975

 
$
12.39

 
$
51,091



RSUs that vested, as reflected in the table above, during the nine months ended September 30, 2019 include previously granted time-based RSUs. RSUs that were forfeited, as reflected in the table above, during the nine months ended September 30, 2019 include performance-based RSUs and time-based RSUs that were forfeited for no consideration.

On May 6, 2019, the Company granted an aggregate of 61,488 time-based RSUs to the non-employee members of its board of directors and 1,098 time-based RSUs to certain employees. The RSUs granted to non-employee directors vest in their entirety on the day immediately prior to the Company's 2020 Annual Meeting of Stockholders and the RSUs granted to employee’s vest in equal installments annually on the anniversary of the grant date over a three-year period. The fair value of each RSU granted on May 6, 2019 was measured using a price of $13.66 per share which was the closing stock price on the date of grant. Each award will be expensed on a straight-line basis over the vesting period.
On March 11, 2019 and February 28, 2019, the Company granted an aggregate of 3,025 and 990,723, respectively, of time-based RSUs to certain employees and officers. The RSUs granted vest in equal installments annually on the anniversary of the grant date over a three-year period.  The fair value of each RSU granted on March 11, 2019 and February 28, 2019 was measured using a price of $13.22 and $12.60 per share, respectively, which were the closing stock prices on the dates of grant. Each award will be expensed on a straight-line basis over the vesting period.

On February 28, 2019, the Company granted 247,619, 238,095 and 114,285 performance-based RSUs to the Company’s Chief Executive Officer, President, and Chief Financial Officer, respectively. These performance-based RSUs are allocated to two separate performance metrics, as follows: (i) thirty percent to total stockholder return (“TSR”), with vesting based on the Company’s TSR relative to its peer-group homebuilders; and (ii) seventy percent to earnings per share. The vesting, if at all, of these performance-based RSUs may range from 0% to 100% and will be based on the Company’s percentage attainment of specified threshold, target and maximum performance goals. The performance period for these performance-based RSUs is January 1, 2019 to December 31, 2021. The fair value of the performance-based RSUs related to the TSR metric was determined to be $8.16 per share based on a Monte Carlo simulation. The fair value of the performance-based RSUs related to the earnings per share goal was measured using a price of $12.60 per share, which was the closing stock price on the date of grant. Each award will be expensed over the requisite service period.

On April 30, 2018, the Company granted an aggregate of 40,910 RSUs to the non-employee members of its board of directors. On July 23, 2018, the Company granted 6,677 RSUs to a non-employee member of its board of directors in connection with such individual's appointment to the board of directors. These RSUs vested in their entirety on April 29, 2019. The fair value of each RSU granted on April 30, 2018 and July 23, 2018 was measured using a price of $17.11 and $16.37 per share, respectively, which were the closing stock prices on the dates of grant. Each award was expensed on a straight-line basis over the vesting period.
On May 7, 2018 and February 22, 2018, the Company granted an aggregate of 4,258 and 633,107, respectively, of time-based RSUs to certain employees and officers. The RSUs granted vest in equal installments annually on the anniversary of the grant date over a three-year period.  The fair value of each RSU granted on May 7, 2018 and February 22, 2018 was measured using a price of $17.61 and $16.94 per share, respectively, which were the closing stock prices on the date of grants. Each award will be expensed on a straight-line basis over the vesting period.

On February 22, 2018, the Company granted 184,179, 177,095, and 85,005 performance-based RSUs to the Company’s Chief Executive Officer, President, and Chief Financial Officer, respectively. These performance-based RSUs are allocated in equal parts to two separate performance metrics: (i) TSR, with vesting based on the Company’s TSR relative to its peer-group homebuilders; and (ii) earnings per share. The vesting, if at all, of these performance-based RSUs may range from 0% to 100% and will be based on the Company’s percentage attainment of specified threshold, target and maximum performance goals. The performance period for these performance-based RSUs is January 1, 2018 to December 31, 2020. The fair value of the performance-based RSUs related to the TSR metric was determined to be $10.97 per share based on a Monte Carlo simulation. The fair value of the performance-based RSUs related to the earnings per share goal was measured using a price of $16.94 per share, which was the closing stock price on the date of grant. Each award will be expensed over the requisite service period.
As RSUs vest for employees, a portion of the shares awarded is generally withheld to cover employee tax withholdings. As a result, the number of RSUs vested and the number of shares of TRI Pointe common stock issued will differ.
v3.19.3
Income Taxes
9 Months Ended
Sep. 30, 2019
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
We account for income taxes in accordance with ASC Topic 740, Income Taxes (“ASC 740”), which requires an asset and liability approach for measuring deferred taxes based on temporary differences between the financial statements and tax bases of assets and liabilities using enacted tax rates for the years in which taxes are expected to be paid or recovered.  Each quarter we assess our deferred tax asset to determine whether all or any portion of the asset is more likely than not unrealizable under ASC 740.  We are required to establish a valuation allowance for any portion of the asset we conclude is more likely than not to be unrealizable.  Our assessment considers, among other things, the nature, frequency and severity of our current and cumulative losses, forecasts of our future taxable income, the duration of statutory carryforward periods and tax planning alternatives.
We had net deferred tax assets of $57.3 million and $67.8 million as of September 30, 2019 and December 31, 2018.  We had a valuation allowance related to those net deferred tax assets of $3.4 million as of both September 30, 2019 and December 31, 2018.  The Company will continue to evaluate both positive and negative evidence in determining the need for a valuation allowance against its deferred tax assets. Changes in positive and negative evidence, including differences between the Company’s future operating results and the estimates utilized in the determination of the valuation allowance, could result in changes in the Company’s estimate of the valuation allowance against its deferred tax assets. The accounting for deferred taxes is based upon estimates of future results. Differences between the anticipated and actual outcomes of these future results could have a material impact on the Company’s consolidated results of operations or financial position. Also, changes in existing federal and state tax laws and tax rates could affect future tax results and the valuation allowance against the Company’s deferred tax assets.
TRI Pointe has certain liabilities to Weyerhaeuser Company (“Weyerhaeuser”) related to a tax sharing agreement.  As of September 30, 2019 and December 31, 2018, we had an income tax liability to Weyerhaeuser of $577,000 and $6.6 million, respectively. The income tax liability to Weyerhaeuser is recorded in accrued expenses and other liabilities on the accompanying consolidated balance sheets. During the three months ended March 31, 2019, we amended our existing tax sharing agreement with Weyerhaeuser, pursuant to which the parties agreed, among other things, that we had no further obligation to remit payment to Weyerhaeuser in connection with any potential utilization of certain deductions or losses associated with certain Weyerhaeuser entities with respect to federal and state taxes. As a result of the amendment, during the three months ended March 31, 2019, we decreased our income tax liability to Weyerhaeuser and recorded other income of $6.0 million, which is included in other income, net in the accompanying consolidated statements of operations.
Our provision for income taxes totaled $21.9 million and $19.7 million for the three months ended September 30, 2019 and 2018, respectively. Our provision for income taxes totaled $31.0 million and $55.5 million for the nine months ended September 30, 2019 and 2018, respectively. The Company classifies any interest and penalties related to income taxes assessed by jurisdiction as part of income tax expense.  The Company had $1.0 million of uncertain tax positions recorded as of both September 30, 2019 and December 31, 2018.  The Company has not been assessed interest or penalties by any major tax jurisdictions related to prior years.
v3.19.3
Related Party Transactions
9 Months Ended
Sep. 30, 2019
Related Party Transactions [Abstract]  
Related Party Transactions
Related Party Transactions
We had no related party transactions for the nine months ended September 30, 2019 and 2018.
v3.19.3
Supplemental Disclosure to Consolidated Statements of Cash Flows
9 Months Ended
Sep. 30, 2019
Supplemental Cash Flow Elements [Abstract]  
Supplemental Disclosure to Consolidated Statements of Cash Flows
Supplemental Disclosure to Consolidated Statements of Cash Flows
The following are supplemental disclosures to the consolidated statements of cash flows (in thousands):
 
Nine Months Ended September 30,
 
2019
 
2018
Supplemental disclosure of cash flow information:
 
 
 
Interest paid (capitalized), net
$
(11,599
)
 
$
(12,807
)
Income taxes paid (refunded), net
$
23,731

 
$
81,417

Supplemental disclosures of noncash activities:
 
 
 
Amortization of senior note discount capitalized to real estate inventory
$
1,409

 
$
1,738

Amortization of deferred loan costs capitalized to real estate inventory
$
4,112

 
$
4,841

Increase in other assets related to adoption of ASC 606
$

 
$
39,534


v3.19.3
Supplemental Guarantor Information
9 Months Ended
Sep. 30, 2019
Condensed Financial Information Disclosure [Abstract]  
Supplemental Guarantor Information
Supplemental Guarantor Information
2021 Notes and 2027 Notes
On May 26, 2016, TRI Pointe Group issued the 2021 Notes. On June 5, 2017, TRI Pointe Group issued the 2027 Notes. All of TRI Pointe Group’s 100% owned subsidiaries that are guarantors (each a “Guarantor” and, collectively, the “Guarantors”) of the Credit Facility, including TRI Pointe Homes, are party to supplemental indentures pursuant to which they jointly and severally guarantee TRI Pointe Group’s obligations with respect to the 2021 Notes and the 2027 Notes. Each Guarantor of the 2021 Notes and the 2027 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 and the 2027 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 and the 2027 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 or the 2027 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. The 2019 Notes matured on June 15, 2019, at which time the Company repaid the remaining principal balance of $381.9 million.
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, 2019 and December 31, 2018, condensed consolidating statements of operations for the three and nine months ended September 30, 2019 and 2018 and
condensed consolidating statement of cash flows for the nine months ended September 30, 2019 and 2018 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”.
Condensed Consolidating Balance Sheet (in thousands):
 
 
September 30, 2019
 
Issuer
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
34,683

 
$
95,579

 
$

 
$
130,262

Receivables
25,703

 
44,804

 

 
70,507

Intercompany receivables
843,814

 

 
(843,814
)
 

Real estate inventories
803,339

 
2,542,051

 

 
3,345,390

Investments in unconsolidated entities

 
4,207

 

 
4,207

Goodwill and other intangible assets, net
156,604

 
3,422

 

 
160,026

Investments in subsidiaries
1,760,138

 

 
(1,760,138
)
 

Deferred tax assets, net
14,822

 
42,453

 

 
57,275

Other assets
18,925

 
154,879

 

 
173,804

Total assets
$
3,658,028

 
$
2,887,395

 
$
(2,603,952
)
 
$
3,941,471

 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
Accounts payable
$
20,098

 
$
61,181

 
$

 
$
81,279

Intercompany payables

 
843,814

 
(843,814
)
 

Accrued expenses and other liabilities
93,187

 
222,249

 

 
315,436

Loans payable
400,000

 

 

 
400,000

Senior notes
1,033,058

 

 

 
1,033,058

Total liabilities
1,546,343

 
1,127,244

 
(843,814
)
 
1,829,773

 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
Total stockholders’ equity
2,111,685

 
1,760,138

 
(1,760,138
)
 
2,111,685

Noncontrolling interests

 
13

 

 
13

Total equity
2,111,685

 
1,760,151

 
(1,760,138
)
 
2,111,698

Total liabilities and equity
$
3,658,028

 
$
2,887,395

 
$
(2,603,952
)
 
$
3,941,471



Condensed Consolidating Balance Sheet (in thousands):
 
 
December 31, 2018
 
Issuer
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
148,129

 
$
129,567

 
$

 
$
277,696

Receivables
16,589

 
35,003

 

 
51,592

Intercompany receivables
758,501

 

 
(758,501
)
 

Real estate inventories
812,799

 
2,403,260

 

 
3,216,059

Investments in unconsolidated entities

 
5,410

 

 
5,410

Goodwill and other intangible assets, net
156,604

 
3,823

 

 
160,427

Investments in subsidiaries
1,672,635

 

 
(1,672,635
)
 

Deferred tax assets, net
14,822

 
52,946

 

 
67,768

Other assets
12,984

 
92,267

 

 
105,251

Total assets
$
3,593,063

 
$
2,722,276

 
$
(2,431,136
)
 
$
3,884,203

 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
Accounts payable
$
13,433

 
$
67,880

 
$

 
$
81,313

Intercompany payables

 
758,501

 
(758,501
)
 

Accrued expenses and other liabilities
111,902

 
223,247

 

 
335,149

Senior notes
1,410,804

 

 

 
1,410,804

Total liabilities
1,536,139

 
1,049,628

 
(758,501
)
 
1,827,266

 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
Total stockholders’ equity
2,056,924

 
1,672,635

 
(1,672,635
)
 
2,056,924

Noncontrolling interests

 
13

 

 
13

Total equity
2,056,924

 
1,672,648

 
(1,672,635
)
 
2,056,937

Total liabilities and equity
$
3,593,063

 
$
2,722,276

 
$
(2,431,136
)
 
$
3,884,203







Condensed Consolidating Statement of Operations (in thousands):
 
 
Three Months Ended September 30, 2019
 
Issuer
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Homebuilding:
 
 
 
 
 
 
 
Home sales revenue
$
154,737

 
$
591,532

 
$

 
$
746,269

Land and lot sales revenue

 
607

 

 
607

Other operations revenue

 
618

 

 
618

Total revenues
154,737

 
592,757

 

 
747,494

Cost of home sales
130,248

 
447,379

 

 
577,627

Cost of land and lot sales

 
495

 

 
495

Other operations expense

 
609

 

 
609

Sales and marketing
9,716

 
38,118

 

 
47,834

General and administrative
19,353

 
19,398

 

 
38,751

Homebuilding (loss) income from operations
(4,580
)
 
86,758

 

 
82,178

Equity in income of unconsolidated entities

 
18

 

 
18

Other income, net
21

 
304

 

 
325

Homebuilding (loss) income before income taxes
(4,559
)
 
87,080

 

 
82,521

Financial Services:
 
 
 
 
 
 
 
Revenues

 
901

 

 
901

Expenses

 
817

 

 
817

Equity in income of unconsolidated entities

 
2,114

 

 
2,114

Financial services income before income taxes

 
2,198

 

 
2,198

(Loss) income before income taxes
(4,559
)
 
89,278

 

 
84,719

Equity of net income of subsidiaries
67,420

 

 
(67,420
)
 

Provision for income taxes

 
(21,858
)
 

 
(21,858
)
Net income
$
62,861

 
$
67,420

 
$
(67,420
)
 
$
62,861




 
Condensed Consolidating Statement of Operations (in thousands):
 
 
Three Months Ended September 30, 2018
 
Issuer
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Homebuilding:
 
 
 
 
 
 
 
Home sales revenue
$
264,499

 
$
507,269

 
$

 
$
771,768

Land and lot sales revenue

 
2,225

 

 
2,225

Other operations revenue

 
598

 

 
598

Total revenues
264,499

 
510,092

 

 
774,591

Cost of home sales
214,759

 
392,294

 

 
607,053

Cost of land and lot sales

 
2,234

 

 
2,234

Other operations expense

 
590

 

 
590

Sales and marketing
11,434

 
33,420

 

 
44,854

General and administrative
19,427

 
18,682

 

 
38,109

Homebuilding income from operations
18,879

 
62,872

 

 
81,751

Equity in income of unconsolidated entities

 
15

 

 
15

Other (loss) income, net
(572
)
 
95

 

 
(477
)
Homebuilding income before income taxes
18,307

 
62,982

 

 
81,289

Financial Services:
 
 
 
 
 
 
 
Revenues

 
480

 

 
480

Expenses

 
125

 

 
125

Equity in income of unconsolidated entities

 
1,986

 

 
1,986

Financial services income before income taxes

 
2,341

 

 
2,341

Income before income taxes
18,307

 
65,323

 

 
83,630

Equity of net income of subsidiaries
45,662

 

 
(45,662
)
 

Provision for income taxes

 
(19,661
)
 

 
(19,661
)
Net income
$
63,969

 
$
45,662

 
$
(45,662
)
 
$
63,969













Condensed Consolidating Statement of Operations (in thousands):
 
Nine Months Ended September 30, 2019
 
Issuer
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Homebuilding:
 
 
 
 
 
 
 
Home sales revenue
$
519,280

 
$
1,411,830

 
$

 
$
1,931,110

Land and lot sales revenue

 
6,819

 

 
6,819

Other operations revenue

 
1,853

 

 
1,853

Total revenues
519,280

 
1,420,502

 

 
1,939,782

Cost of home sales
438,679

 
1,135,168

 

 
1,573,847

Cost of land and lot sales

 
7,552

 

 
7,552

Other operations expense

 
1,826

 

 
1,826

Sales and marketing
28,976

 
104,912

 

 
133,888

General and administrative
57,223

 
56,979

 

 
114,202

Homebuilding (loss) income from operations
(5,598
)
 
114,065

 

 
108,467

Equity in loss of unconsolidated entities

 
(33
)
 

 
(33
)
Other income, net
6,169

 
550

 

 
6,719

Homebuilding income before income taxes
571

 
114,582

 

 
115,153

Financial Services:
 
 
 
 
 
 
 
Revenues

 
1,959

 

 
1,959

Expenses

 
1,765

 

 
1,765

Equity in income of unconsolidated entities

 
4,861

 

 
4,861

Financial services income before income taxes

 
5,055

 

 
5,055

Income before income taxes
571

 
119,637

 

 
120,208

Equity of net income of subsidiaries
88,628

 

 
(88,628
)
 

Provision for income taxes
(5
)
 
(31,009
)
 

 
(31,014
)
Net income
$
89,194

 
$
88,628

 
$
(88,628
)
 
$
89,194














Condensed Consolidating Statement of Operations (in thousands):
 
Nine Months Ended September 30, 2018
 
Issuer
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Homebuilding:
 
 
 
 
 
 
 
Home sales revenue
$
710,561

 
$
1,412,574

 
$

 
$
2,123,135

Land and lot sales revenue

 
3,966

 

 
3,966

Other operations revenue

 
1,795

 

 
1,795

Total revenues
710,561

 
1,418,335

 

 
2,128,896

Cost of home sales
586,852

 
1,074,799

 

 
1,661,651

Cost of land and lot sales

 
4,163

 

 
4,163

Other operations expense

 
1,781

 

 
1,781

Sales and marketing
33,943

 
94,938

 

 
128,881

General and administrative
55,527

 
55,879

 

 
111,406

Homebuilding income from operations
34,239

 
186,775

 

 
221,014

Equity in loss of unconsolidated entities

 
(384
)
 

 
(384
)
Other (loss) income, net
(537
)
 
158

 

 
(379
)
Homebuilding income before income taxes
33,702

 
186,549

 

 
220,251

Financial Services:
 
 
 
 
 
 
 
Revenues

 
1,154

 

 
1,154

Expenses

 
391

 

 
391

Equity in income of unconsolidated entities

 
4,972

 

 
4,972

Financial services income before income taxes

 
5,735

 

 
5,735

Income before income taxes
33,702

 
192,284

 

 
225,986

Equity of net income of subsidiaries
136,827

 

 
(136,827
)
 

Provision for income taxes

 
(55,457
)
 

 
(55,457
)
Net income
$
170,529

 
$
136,827

 
$
(136,827
)
 
$
170,529

















Condensed Consolidating Statement of Cash Flows (in thousands):
 
 
Nine Months Ended September 30, 2019
 
Issuer
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Cash flows from operating activities:
 
 
 
 
 
 
 
Net cash provided by (used in) operating activities
$
5,678

 
$
(99,987
)
 
$

 
$
(94,309
)
Cash flows from investing activities:
 
 
 
 
 
 
 
Purchases of property and equipment
(7,088
)
 
(15,304
)
 

 
(22,392
)
Proceeds from sale of property and equipment

 
46

 

 
46

Investments in unconsolidated entities

 
(712
)
 

 
(712
)
Intercompany
(81,969
)
 

 
81,969

 

Net cash used in investing activities
(89,057
)
 
(15,970
)
 
81,969

 
(23,058
)
Cash flows from financing activities:
 
 
 
 
 
 
 
Borrowings from debt
400,000

 

 

 
400,000

Repayment of debt
(381,895
)
 

 

 
(381,895
)
Debt issuance costs
(3,125
)
 

 

 
(3,125
)
Proceeds from issuance of common stock under
   share-based awards
300

 

 

 
300

Minimum tax withholding paid on behalf of employees for
   restricted stock units
(3,612
)
 

 

 
(3,612
)
Share repurchases
(41,735
)
 

 

 
(41,735
)
Intercompany

 
81,969

 
(81,969
)
 

Net cash (used in) provided by financing activities
(30,067
)
 
81,969

 
(81,969
)
 
(30,067
)
Net decrease in cash and cash equivalents
(113,446
)
 
(33,988
)
 

 
(147,434
)
Cash and cash equivalents–beginning of period
148,129

 
129,567

 

 
277,696

Cash and cash equivalents–end of period
$
34,683

 
$
95,579

 
$

 
$
130,262




Condensed Consolidating Statement of Cash Flows (in thousands):
 
 
Nine Months Ended September 30, 2018
 
Issuer
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Cash flows from operating activities:
 
 
 
 
 
 
 
Net cash provided by (used in) operating activities
$
60,315

 
$
(132,405
)
 
$

 
$
(72,090
)
Cash flows from investing activities:
 
 
 
 
 
 
 
Purchases of property and equipment
(6,603
)
 
(17,944
)
 

 
(24,547
)
Proceeds from sale of property and equipment

 
8

 

 
8

Investments in unconsolidated entities

 
(1,812
)
 

 
(1,812
)
Intercompany
(108,780
)
 

 
108,780

 

Net cash used in investing activities
(115,383
)
 
(19,748
)
 
108,780

 
(26,351
)
Cash flows from financing activities:
 
 
 
 
 
 
 
Borrowings from notes payable
100,000

 

 

 
100,000

Repayment of notes payable
(57,931
)
 

 

 
(57,931
)
Distributions to noncontrolling interests

 
(1
)
 

 
(1
)
Proceeds from issuance of common stock under
   share-based awards
1,943

 

 

 
1,943

Minimum tax withholding paid on behalf of employees for restricted stock units
(6,049
)
 

 

 
(6,049
)
Share repurchases
(139,349
)
 

 

 
(139,349
)
Intercompany

 
108,780

 
(108,780
)
 

Net cash (used in) provided by financing activities
(101,386
)
 
108,779

 
(108,780
)
 
(101,387
)
Net decrease in cash and cash equivalents
(156,454
)
 
(43,374
)
 

 
(199,828
)
Cash and cash equivalents–beginning of period
176,684

 
106,230

 

 
282,914

Cash and cash equivalents–end of period
$
20,230

 
$
62,856

 
$

 
$
83,086


v3.19.3
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Policies)
9 Months Ended
Sep. 30, 2019
Accounting Policies [Abstract]  
Organization and Basis of Presentation

Organization
TRI Pointe is engaged in the design, construction and sale of innovative single-family attached and detached homes through its portfolio of six quality brands across nine states, including Maracay in Arizona, Pardee Homes in California and Nevada, Quadrant Homes in Washington, Trendmaker Homes in Texas, TRI Pointe Homes in California, Colorado and North Carolina and Winchester Homes in Maryland and Virginia.
Basis of Presentation
The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They should be read in conjunction with our consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018. In the opinion of management, all adjustments consisting of normal recurring adjustments, necessary for a fair presentation with respect to interim financial statements, have been included. The results for the three and nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for the full year ending December 31, 2019 due to seasonal variations and other factors.
The consolidated financial statements include the accounts of TRI Pointe Group and its wholly owned subsidiaries, as well as other entities in which TRI Pointe Group has a controlling interest and variable interest entities (“VIEs”) in which TRI Pointe Group is the primary beneficiary.  The noncontrolling interests as of September 30, 2019 and December 31, 2018 represent the outside owners’ interests in the Company’s consolidated entities.  All significant intercompany accounts have been eliminated upon consolidation.
Use of Estimates
Use of Estimates
Our financial statements have been prepared in accordance with GAAP. The preparation of these financial statements requires our management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from our estimates.
Revenue Recognition
Revenue Recognition
We recognize revenue in accordance with Accounting Standards Topic 606 (“ASC 606”), Revenue from Contracts with Customers. Under ASC 606, we apply the following steps to determine the timing and amount of revenue to recognize: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation.
Home sales revenue
We generate the majority of our total revenues from home sales, which consists of our core business operation of building and delivering completed homes to homebuyers. Home sales revenue and related profit is generally recognized when title to and possession of the home is transferred to the homebuyer at the home closing date. Our performance obligation to deliver the agreed-upon home is generally satisfied in less than one year from the original contract date. Included in home sales revenue are forfeited deposits, which occur when homebuyers cancel home purchase contracts that include a nonrefundable deposit. Both revenue from forfeited deposits and deferred revenue resulting from uncompleted performance obligations existing at the time we deliver new homes to our homebuyers are immaterial.
Land and lot sales revenue
Historically, we have generated land and lot sales revenue from a small number of transactions, although in some years we have realized a significant amount of revenue and gross margin. We do not expect our future land and lot sales revenue to
be material, but we still consider these sales to be an ordinary part of our business, thus meeting the definition of contracts with customers. Similar to our home sales, revenue from land and lot sales is typically fully recognized when the land and lot sales transactions are consummated, at which time no further performance obligations are left to be satisfied. Some of our historical land and lot sales have included future profit participation rights. We will recognize future land and lot sales revenue in the periods in which all closing conditions are met, subject to the constraint on variable consideration related to profit participation rights, if such rights exist in the sales contract.
Other operations revenue
The majority of our homebuilding other operations revenue relates to a ground lease at our Quadrant Homes reporting segment. We are responsible for making lease payments to the land owner, and we collect sublease payments from the buyers of the buildings. This ground lease is accounted for in accordance with ASC Topic 842, Leases. We do not recognize a material profit on this ground lease.
Financial services revenues
TRI Pointe Solutions is a reportable segment and is comprised of our TRI Pointe Connect mortgage financing operations, TRI Pointe Assurance title and escrow services operations, and TRI Pointe Advantage property and casualty insurance agency operations.
Mortgage financing operations
TRI Pointe Connect was formed as a joint venture with an established mortgage lender and is accounted for under the equity method of accounting.  We record a percentage of income earned by TRI Pointe Connect based on our ownership percentage in this joint venture. TRI Pointe Connect activity appears as equity in income of unconsolidated entities under the Financial Services section of our consolidated statements of operations.
Title and escrow services operations
TRI Pointe Assurance provides title examinations for our homebuyers in Austin, Colorado and Maryland and both title examinations and escrow services for our homebuyers in Arizona, Nevada, Texas and Virginia.  TRI Pointe Assurance is a wholly owned subsidiary of TRI Pointe and acts as a title agency for First American Title Insurance Company. Revenue from our title and escrow services operations is fully recognized at the time of the consummation of the home sales transaction, at which time no further performance obligations are left to be satisfied. TRI Pointe Assurance revenue is included in the Financial Services section of our consolidated statements of operations.
Property and casualty insurance agency operations
TRI Pointe Advantage is a wholly owned subsidiary of TRI Pointe and provides property and casualty insurance agency services that help facilitate the closing process in all of the markets in which we operate. The total consideration for these services, including renewal options, is estimated upon the issuance of the initial insurance policy, subject to constraint. TRI Pointe Advantage revenue is included in the Financial Services section of our consolidated statements of operations.
Recently Issued Accounting Standards
Recently Issued Accounting Standards Not Yet Adopted
In January 2017, the FASB issued Accounting Standards Update No. 2017-04, IntangiblesGoodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment (“ASU 2017-04”), which removes the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted, and applied prospectively. We do not expect the adoption of ASU 2017-04 to have a material impact on our financial statements.
In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted. We are still evaluating the impact ASU 2016-13 will have on our consolidated financial statements.

Adoption of New Accounting Standards
In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Codified as “ASC 842”), which requires an entity to recognize a lease right-of-use asset and lease liability on the balance sheet for the rights and obligations created by leases with durations of greater than 12 months. Right-of-use lease assets represent our right to use the underlying asset for the lease term and the lease obligation represents our commitment to make the lease payments arising from the lease. The guidance also requires more disclosures about leases in the notes to financial statements. We adopted ASC 842 on January 1, 2019, using a modified retrospective approach resulting in the recognition of a cumulative effect adjustment to the opening balance sheet of $57.4 million, which included a lease right-of-use asset offset by a lease liability on our consolidated balance sheet. No prior period adjustment was recorded. Additionally, we have elected the transition package of three practical expedients permitted under ASC 842, which among other things, allows us to retain the current operating classification for all of our existing leases prior to January 1, 2019. For further details on the adoption of ASC 842, see Note 13, Commitments and Contingencies.
Segment Information
We operate two principal businesses: homebuilding and financial services.
Our homebuilding operations consist of six homebuilding brands that acquire and develop land and construct and sell single-family detached and attached homes. In accordance with ASC Topic 280, Segment Reporting, in determining the most appropriate reportable segments, we considered similar economic and other characteristics, including product types, average selling prices, gross profits, production processes, suppliers, subcontractors, regulatory environments, land acquisition results, and underlying demand and supply. Based upon these factors, our homebuilding operations are comprised of the following six reportable segments: Maracay, consisting of operations in Arizona; Pardee Homes, consisting of operations in California and Nevada; Quadrant Homes, consisting of operations in Washington; Trendmaker Homes, consisting of operations in Texas; TRI Pointe Homes, consisting of operations in California, Colorado and North Carolina; and Winchester Homes, consisting of operations in Maryland and Virginia.
Our TRI Pointe Solutions financial services operation is a reportable segment and is comprised of our TRI Pointe Connect mortgage financing operations, our TRI Pointe Assurance title and escrow services operations, and our TRI Pointe Advantage property and casualty insurance agency operations. For further details, see Note 1, Organization, Basis of Presentation and Summary of Significant Accounting Policies.
Corporate is a non-operating segment that develops and implements company-wide strategic initiatives and provides support to our homebuilding reporting segments by centralizing certain administrative functions, such as marketing, legal, accounting, treasury, insurance, internal audit and risk management, information technology and human resources, to benefit from economies of scale. Our Corporate non-operating segment also includes general and administrative expenses related to operating our corporate headquarters. A portion of the expenses incurred by Corporate is allocated to the homebuilding reporting segments.
The reportable segments follow the same accounting policies used for our consolidated financial statements, as described in Note 1, Organization, Basis of Presentation and Summary of Significant Accounting Policies. Operational results of each reportable segment are not necessarily indicative of the results that would have been achieved had the reportable segment been an independent, stand-alone entity during the periods presented.

Fair Value Measurements
Fair Value Measurements
ASC Topic 820, Fair Value Measurements and Disclosures, defines “fair value” as the price that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at measurement date and requires assets and liabilities carried at fair value to be classified and disclosed in the following three categories:
Level 1—Quoted prices for identical instruments in active markets
Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are inactive; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets at measurement date
Level 3—Valuations derived from techniques where one or more significant inputs or significant value drivers are unobservable in active markets at measurement date
v3.19.3
Segment Information (Tables)
9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Summary of Financial Information Relating to Reportable Segments
Total revenues and income before income taxes for each of our reportable segments were as follows (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Revenues
 
 
 
 
 
 
 
Maracay
$
70,860

 
$
66,730

 
$
166,074

 
$
182,134

Pardee Homes
321,922

 
224,452

 
651,484

 
648,208

Quadrant Homes
49,875

 
66,174

 
164,812

 
193,481

Trendmaker Homes
103,428

 
78,606

 
296,212

 
197,730

TRI Pointe Homes
154,737

 
264,499

 
519,280

 
710,561

Winchester Homes
46,672

 
74,130

 
141,920

 
196,782

Total homebuilding revenues
747,494

 
774,591

 
1,939,782

 
2,128,896

Financial services
901

 
480

 
1,959

 
1,154

Total
$
748,395

 
$
775,071

 
$
1,941,741

 
$
2,130,050

 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
 
 
 
 
 
 
Maracay
$
6,179

 
$
6,260

 
$
10,355

 
$
15,665

Pardee Homes
73,790

 
36,087

 
87,734

 
122,195

Quadrant Homes
1,600

 
9,269

 
4,154

 
25,206

Trendmaker Homes
5,578

 
7,379

 
10,888

 
13,977

TRI Pointe Homes
7,245

 
30,945

 
29,734

 
69,651

Winchester Homes
(71
)
 
4,122

 
1,718

 
9,908

Corporate
(11,800
)
 
(12,773
)
 
(29,430
)
 
(36,351
)
Total homebuilding income before income taxes
82,521

 
81,289

 
115,153

 
220,251

Financial services
2,198

 
2,341

 
5,055

 
5,735

Total
$
84,719

 
$
83,630

 
$
120,208

 
$
225,986

 
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, 2019
 
December 31, 2018
Real estate inventories
 
 
 
Maracay
$
346,337

 
$
293,217

Pardee Homes
1,343,809

 
1,286,877

Quadrant Homes
293,220

 
279,486

Trendmaker Homes
274,130

 
271,061

TRI Pointe Homes
803,339

 
812,799

Winchester Homes
284,555

 
272,619

Total
$
3,345,390

 
$
3,216,059

 
 
 
 
Total assets
 
 
 
Maracay
$
379,817

 
$
318,703

Pardee Homes
1,451,879

 
1,391,503

Quadrant Homes
350,305

 
313,947

Trendmaker Homes
320,998

 
325,943

TRI Pointe Homes
995,806

 
987,610

Winchester Homes
317,583

 
298,602

Corporate
101,365

 
228,010

Total homebuilding assets
3,917,753

 
3,864,318

Financial services
23,718

 
19,885

Total
$
3,941,471

 
$
3,884,203


v3.19.3
Earnings Per Share (Tables)
9 Months Ended
Sep. 30, 2019
Earnings Per Share [Abstract]  
Computation of Basic and Diluted Earnings Per Share
The following table sets forth the components used in the computation of basic and diluted earnings per share (in thousands, except share and per share amounts):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Numerator:
 

 
 

 
 

 
 

Net income
$
62,861

 
$
63,969

 
$
89,194

 
$
170,529

Denominator:
 

 
 

 
 

 
 

Basic weighted-average shares outstanding
141,088,381

 
147,725,074

 
141,729,759

 
150,377,472

Effect of dilutive shares:
 

 
 
 
 

 
 

Stock options and unvested restricted stock units
445,165

 
592,958

 
399,027

 
1,104,984

Diluted weighted-average shares outstanding
141,533,546

 
148,318,032

 
142,128,786

 
151,482,456

Earnings per share
 

 
 

 
 

 
 

Basic
$
0.45

 
$
0.43

 
$
0.63

 
$
1.13

Diluted
$
0.44

 
$
0.43

 
$
0.63

 
$
1.13

Antidilutive stock options and unvested restricted stock units not included in diluted earnings per share
2,459,868

 
2,008,612

 
2,916,252

 
1,280,500


v3.19.3
Receivables (Tables)
9 Months Ended
Sep. 30, 2019
Receivables [Abstract]  
Components of Receivables
Receivables consisted of the following (in thousands):
 
September 30, 2019
 
December 31, 2018
Escrow proceeds and other accounts receivable, net
$
33,106

 
$
13,995

Warranty insurance receivable (Note 13)
37,401

 
37,597

Total receivables
$
70,507

 
$
51,592



v3.19.3
Real Estate Inventories (Tables)
9 Months Ended
Sep. 30, 2019
Inventory Disclosure [Abstract]  
Summary of Real Estate Inventories
Real estate inventories consisted of the following (in thousands):
 
September 30, 2019
 
December 31, 2018
Real estate inventories owned:
 
 
 
Homes completed or under construction
$
1,217,154

 
$
959,911

Land under development
1,654,172

 
1,743,537

Land held for future development
129,880

 
201,874

Model homes
273,173

 
238,828

Total real estate inventories owned
3,274,379

 
3,144,150

Real estate inventories not owned:
 
 
 
Land purchase and land option deposits
71,011

 
71,909

Total real estate inventories not owned
71,011

 
71,909

Total real estate inventories
$
3,345,390

 
$
3,216,059


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,
 
2019
 
2018
 
2019
 
2018
Interest incurred
$
22,405

 
$
23,942

 
$
67,740

 
$
67,089

Interest capitalized
(22,405
)
 
(23,942
)
 
(67,740
)
 
(67,089
)
Interest expensed
$

 
$

 
$

 
$

Capitalized interest in beginning inventory
$
197,295

 
$
185,589

 
$
184,400

 
$
176,348

Interest capitalized as a cost of inventory
22,405

 
23,942

 
67,740

 
67,089

Interest previously capitalized as a cost of
inventory, included in cost of sales
(19,234
)
 
(20,293
)
 
(51,674
)
 
(54,199
)
Capitalized interest in ending inventory
$
200,466

 
$
189,238

 
$
200,466

 
$
189,238


Schedule of Real Estate Inventory Impairments and Land Option Abandonments
Real estate inventory impairments and land and lot option abandonments and pre-acquisition charges consisted of the following (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Real estate inventory impairments
$

 
$

 
$

 
$

Land and lot option abandonments and pre-acquisition charges
1,029

 
643

 
6,519

 
1,500

Total
$
1,029

 
$
643

 
$
6,519

 
$
1,500


v3.19.3
Investments in Unconsolidated Entities (Tables)
9 Months Ended
Sep. 30, 2019
Equity Method Investments and Joint Ventures [Abstract]  
Aggregated Assets, Liabilities and Operating Results of Entities as Equity-Method Investments
Assets and liabilities of unconsolidated entities (in thousands):
 
 
September 30, 2019
 
December 31, 2018
Assets
 
 
 
Cash
$
9,740

 
$
13,337

Receivables
5,250

 
4,674

Real estate inventories
102,878

 
99,864

Other assets
672

 
811

Total assets
$
118,540

 
$
118,686

Liabilities and equity
 
 
 
Accounts payable and other liabilities
$
7,743

 
$
11,631

Company’s equity
4,207

 
5,410

Outside interests’ equity
106,590

 
101,645

Total liabilities and equity
$
118,540

 
$
118,686

 
Results of operations from unconsolidated entities (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Net sales
$
8,617

 
$
6,185

 
$
19,081

 
$
19,900

Other operating expense
(5,466
)
 
(2,951
)
 
(11,746
)
 
(13,510
)
Other income, net
173

 
1

 
174

 
85

Net income
$
3,324

 
$
3,235

 
$
7,509

 
$
6,475

Company’s equity in income of unconsolidated entities
$
2,132

 
$
2,001

 
$
4,828

 
$
4,588


v3.19.3
Variable Interest Entities (Tables)
9 Months Ended
Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Summary of Interests in Land Option Agreements
The following provides a summary of our interests in land and lot option agreements (in thousands):
 
September 30, 2019
 
December 31, 2018
 
Deposits
 
Remaining
Purchase
Price
 
Consolidated
Inventory
Held by VIEs
 
Deposits
 
Remaining
Purchase
Price
 
Consolidated
Inventory
Held by VIEs
Consolidated VIEs
$

 
$

 
$

 
$

 
$

 
$

Unconsolidated VIEs
45,243

 
403,246

 
N/A

 
41,198

 
433,720

 
N/A

Other land option agreements
25,768

 
327,033

 
N/A

 
30,711

 
307,498

 
N/A

Total
$
71,011

 
$
730,279

 
$

 
$
71,909

 
$
741,218

 
$


v3.19.3
Goodwill and Other Intangible Assets (Tables)
9 Months Ended
Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill and Other Intangible Assets
Goodwill and other intangible assets consisted of the following (in thousands):
 
September 30, 2019
 
December 31, 2018
 
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

 
(7,257
)
 
20,722

 
27,979

 
(6,856
)
 
21,123

Total
$
167,283

 
$
(7,257
)
 
$
160,026

 
$
167,283

 
$
(6,856
)
 
$
160,427


Schedule of Expected Amortization of Intangible Asset
Expected amortization of our intangible asset related to Maracay for the remainder of 2019, the next four years and thereafter is (in thousands):
Remainder of 2019
$
133

2020
534

2021
534

2022
534

2023
534

Thereafter
1,153

Total
$
3,422


v3.19.3
Other Assets (Tables)
9 Months Ended
Sep. 30, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Other Assets
Other assets consisted of the following (in thousands):
 
September 30, 2019
 
December 31, 2018
Prepaid expenses
$
26,943

 
$
31,983

Refundable fees and other deposits
24,556

 
12,376

Development rights, held for future use or sale
2,250

 
845

Deferred loan costs–loans payable
4,663

 
2,424

Operating properties and equipment, net
59,367

 
54,198

Lease right-of-use assets
52,462

 

Other
3,563

 
3,425

Total
$
173,804

 
$
105,251


v3.19.3
Accrued Expenses and Other Liabilities (Tables)
9 Months Ended
Sep. 30, 2019
Payables and Accruals [Abstract]  
Schedule of Accrued Expenses and Other Liabilities
Accrued expenses and other liabilities consisted of the following (in thousands):
 
September 30, 2019
 
December 31, 2018
Accrued payroll and related costs
$
28,660

 
$
44,010

Warranty reserves (Note 13)
72,893

 
71,836

Estimated cost for completion of real estate inventories
86,232

 
114,928

Customer deposits
23,587

 
17,464

Income tax liability to Weyerhaeuser
577

 
6,577

Accrued income taxes payable
4,315

 
8,335

Liability for uncertain tax positions (Note 15)
972

 
972

Accrued interest
19,135

 
12,572

Other tax liability
8,003

 
21,892

Lease liabilities
57,513

 
3,196

Other
13,549

 
33,367

Total
$
315,436

 
$
335,149



v3.19.3
Senior Notes and Loans Payable (Tables)
9 Months Ended
Sep. 30, 2019
Debt Disclosure [Abstract]  
Schedule of Senior Notes and Loans Payable
The Company’s outstanding loans payable consisted of the following (in thousands):

 
September 30, 2019
 
December 31, 2018
Term loan facility
$
250,000

 
$

Unsecured revolving credit facility
150,000

 

Total
$
400,000

 
$


The Company’s outstanding senior notes (together, the “Senior Notes”) consisted of the following (in thousands):

 
September 30, 2019
 
December 31, 2018
4.375% Senior Notes due June 15, 2019
$

 
$
381,895

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

 
300,000

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

 
450,000

5.250% Senior Notes due June 1, 2027
300,000

 
300,000

Discount and deferred loan costs
(16,942
)
 
(21,091
)
Total
$
1,033,058

 
$
1,410,804


v3.19.3
Fair Value Disclosures (Tables)
9 Months Ended
Sep. 30, 2019
Fair Value Disclosures [Abstract]  
Summary of Assets and Liabilities Related to Financial Instruments, Measured at Fair Value on a Recurring Basis
A summary of assets and liabilities at September 30, 2019 and December 31, 2018, related to our financial instruments, measured at fair value on a recurring basis, is set forth below (in thousands):
 
 
 
September 30, 2019
 
December 31, 2018
 
Hierarchy
 
Book Value
 
Fair Value
 
Book Value
 
Fair Value
Senior Notes (1)
Level 2
 
$
1,044,775

 
$
1,084,875

 
$
1,425,397

 
$
1,308,826

Unsecured revolving credit facility (2)
Level 2
 
$
150,000

 
$
150,000

 
$

 
$

Term loan facility (2)
Level 2
 
$
250,000

 
$
250,000

 
$

 
$

 __________
(1) 
The book value of the Senior Notes is net of discounts, excluding deferred loan costs of $11.7 million and $14.6 million as of September 30, 2019 and December 31, 2018, respectively. The estimated fair value of the Senior Notes at September 30, 2019 and December 31, 2018 is based on quoted market prices.
(2) 
The estimated fair value of the Credit Facility and Term Loan Facility as of September 30, 2019 approximated book value due to the variable interest rate terms of these loans.

v3.19.3
Commitments and Contingencies (Tables)
9 Months Ended
Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Warranty Reserves
Warranty reserve activity consisted of the following (in thousands):
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Warranty reserves, beginning of period
$
71,471

 
$
72,342

 
$
71,836

 
$
69,373

Warranty reserves accrued
6,826

 
6,257

 
17,481

 
17,669

Warranty expenditures
(5,404
)
 
(4,604
)
 
(16,424
)
 
(13,047
)
Warranty reserves, end of period
$
72,893

 
$
73,995

 
$
72,893

 
$
73,995


 
Schedule of Lease Costs and Other Information See below for additional information on leases (dollars in thousands):

 
Three Months Ended September 30, 2019
 
Nine Months Ended September 30, 2019
Lease Cost
 
 
 
Operating lease cost (included in SG&A expense)
$
2,755

 
$
6,965

Ground lease cost (included in other operations expense)
609

 
1,826

Sublease income, ground leases (included in other operations revenue)
(618
)
 
(1,853
)
Net lease cost
$
2,746

 
$
6,938

 
 
 
 
Other information
 
 
 
Cash paid for amounts included in the measurement of lease liabilities:
 
 
 
Operating lease cash flows (included in operating cash flows)
$
1,556

 
$
4,806

Ground lease cash flows (included in operating cash flows)
$
609

 
$
1,826

Right-of-use assets obtained in exchange for new operating lease liabilities
$
311

 
$
2,364

 
September 30, 2019
Weighted-average discount rate:
 
Operating leases
6.0
%
Ground leases
10.2
%
Weighted-average remaining lease term (in years):
 
Operating leases
6.1

Ground leases
48.5


Schedule of Future Minimum Lease Payments
The future minimum lease payments under our operating leases are as follows (in thousands):
 
Property, Equipment and Other Leases
 
Ground Leases (1)
Remaining in 2019
$
2,278

 
$
746

2020
8,594

 
2,984

2021
7,182

 
2,984

2022
5,591

 
2,984

2023
4,484

 
2,984

Thereafter
9,155

 
84,266

Total lease payments
$
37,284

 
$
96,948

Less: Interest
6,708

 
70,011

Present value of operating lease liabilities
$
30,576

 
$
26,937

(1)     Ground leases are fully subleased through 2041, representing $65.9 million of the $96.9 million future ground lease obligations.
v3.19.3
Stock-Based Compensation (Tables)
9 Months Ended
Sep. 30, 2019
Share-based Payment Arrangement [Abstract]  
Summary of Compensation Expense Recognized Related to all Stock-Based Awards
The following table presents compensation expense recognized related to all stock-based awards (in thousands):
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Total stock-based compensation
$
3,828

 
$
3,765

 
$
10,614

 
$
10,955


Summary of Stock Option Awards
The following table presents a summary of stock option awards for the nine months ended September 30, 2019:
 
Options
 
Weighted
Average
Exercise
Price
Per Share
 
Weighted
Average
Remaining
Contractual
Life
 
Aggregate
Intrinsic
Value
(in thousands)
Options outstanding at December 31, 2018
953,905

 
$
14.58

 
4.2

 
$
296

Granted

 

 

 

Exercised
(46,940
)
 
$
6.66

 

 

Forfeited
(3,625
)
 
$
14.29

 

 

Options outstanding at September 30, 2019
903,340

 
$
15.00

 
3.6

 
$
786

Options exercisable at September 30, 2019
903,340

 
$
15.00

 
3.6

 
$
786


Summary of Restricted Stock Units
The following table presents a summary of RSUs for the nine months ended September 30, 2019:
 
Restricted
Stock
Units
 
Weighted
Average
Grant Date
Fair Value
Per Share
 
Aggregate
Intrinsic
Value
(in thousands)
Nonvested RSUs at December 31, 2018
3,341,848

 
$
11.05

 
$
36,526

Granted
1,656,333

 
$
12.15

 

Vested
(844,534
)
 
$
12.95

 

Forfeited
(756,672
)
 
$
5.32

 

Nonvested RSUs at September 30, 2019
3,396,975

 
$
12.39

 
$
51,091


v3.19.3
Supplemental Disclosure to Consolidated Statements of Cash Flows (Tables)
9 Months Ended
Sep. 30, 2019
Supplemental Cash Flow Elements [Abstract]  
Supplemental Disclosure to Consolidated Statements of Cash Flows
The following are supplemental disclosures to the consolidated statements of cash flows (in thousands):
 
Nine Months Ended September 30,
 
2019
 
2018
Supplemental disclosure of cash flow information:
 
 
 
Interest paid (capitalized), net
$
(11,599
)
 
$
(12,807
)
Income taxes paid (refunded), net
$
23,731

 
$
81,417

Supplemental disclosures of noncash activities:
 
 
 
Amortization of senior note discount capitalized to real estate inventory
$
1,409

 
$
1,738

Amortization of deferred loan costs capitalized to real estate inventory
$
4,112

 
$
4,841

Increase in other assets related to adoption of ASC 606
$

 
$
39,534


v3.19.3
Supplemental Guarantor Information (Tables)
9 Months Ended
Sep. 30, 2019
Condensed Financial Information Disclosure [Abstract]  
Condensed Consolidating Balance Sheet
Condensed Consolidating Balance Sheet (in thousands):
 
 
September 30, 2019
 
Issuer
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
34,683

 
$
95,579

 
$

 
$
130,262

Receivables
25,703

 
44,804

 

 
70,507

Intercompany receivables
843,814

 

 
(843,814
)
 

Real estate inventories
803,339

 
2,542,051

 

 
3,345,390

Investments in unconsolidated entities

 
4,207

 

 
4,207

Goodwill and other intangible assets, net
156,604

 
3,422

 

 
160,026

Investments in subsidiaries
1,760,138

 

 
(1,760,138
)
 

Deferred tax assets, net
14,822

 
42,453

 

 
57,275

Other assets
18,925

 
154,879

 

 
173,804

Total assets
$
3,658,028

 
$
2,887,395

 
$
(2,603,952
)
 
$
3,941,471

 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
Accounts payable
$
20,098

 
$
61,181

 
$

 
$
81,279

Intercompany payables

 
843,814

 
(843,814
)
 

Accrued expenses and other liabilities
93,187

 
222,249

 

 
315,436

Loans payable
400,000

 

 

 
400,000

Senior notes
1,033,058

 

 

 
1,033,058

Total liabilities
1,546,343

 
1,127,244

 
(843,814
)
 
1,829,773

 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
Total stockholders’ equity
2,111,685

 
1,760,138

 
(1,760,138
)
 
2,111,685

Noncontrolling interests

 
13

 

 
13

Total equity
2,111,685

 
1,760,151

 
(1,760,138
)
 
2,111,698

Total liabilities and equity
$
3,658,028

 
$
2,887,395

 
$
(2,603,952
)
 
$
3,941,471



Condensed Consolidating Balance Sheet (in thousands):
 
 
December 31, 2018
 
Issuer
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
148,129

 
$
129,567

 
$

 
$
277,696

Receivables
16,589

 
35,003

 

 
51,592

Intercompany receivables
758,501

 

 
(758,501
)
 

Real estate inventories
812,799

 
2,403,260

 

 
3,216,059

Investments in unconsolidated entities

 
5,410

 

 
5,410

Goodwill and other intangible assets, net
156,604

 
3,823

 

 
160,427

Investments in subsidiaries
1,672,635

 

 
(1,672,635
)
 

Deferred tax assets, net
14,822

 
52,946

 

 
67,768

Other assets
12,984

 
92,267

 

 
105,251

Total assets
$
3,593,063

 
$
2,722,276

 
$
(2,431,136
)
 
$
3,884,203

 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
Accounts payable
$
13,433

 
$
67,880

 
$

 
$
81,313

Intercompany payables

 
758,501

 
(758,501
)
 

Accrued expenses and other liabilities
111,902

 
223,247

 

 
335,149

Senior notes
1,410,804

 

 

 
1,410,804

Total liabilities
1,536,139

 
1,049,628

 
(758,501
)
 
1,827,266

 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
Total stockholders’ equity
2,056,924

 
1,672,635

 
(1,672,635
)
 
2,056,924

Noncontrolling interests

 
13

 

 
13

Total equity
2,056,924

 
1,672,648

 
(1,672,635
)
 
2,056,937

Total liabilities and equity
$
3,593,063

 
$
2,722,276

 
$
(2,431,136
)
 
$
3,884,203







Condensed Consolidating Statement of Operations
Condensed Consolidating Statement of Operations (in thousands):
 
 
Three Months Ended September 30, 2019
 
Issuer
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Homebuilding:
 
 
 
 
 
 
 
Home sales revenue
$
154,737

 
$
591,532

 
$

 
$
746,269

Land and lot sales revenue

 
607

 

 
607

Other operations revenue

 
618

 

 
618

Total revenues
154,737

 
592,757

 

 
747,494

Cost of home sales
130,248

 
447,379

 

 
577,627

Cost of land and lot sales

 
495

 

 
495

Other operations expense

 
609

 

 
609

Sales and marketing
9,716

 
38,118

 

 
47,834

General and administrative
19,353

 
19,398

 

 
38,751

Homebuilding (loss) income from operations
(4,580
)
 
86,758

 

 
82,178

Equity in income of unconsolidated entities

 
18

 

 
18

Other income, net
21

 
304

 

 
325

Homebuilding (loss) income before income taxes
(4,559
)
 
87,080

 

 
82,521

Financial Services:
 
 
 
 
 
 
 
Revenues

 
901

 

 
901

Expenses

 
817

 

 
817

Equity in income of unconsolidated entities

 
2,114

 

 
2,114

Financial services income before income taxes

 
2,198

 

 
2,198

(Loss) income before income taxes
(4,559
)
 
89,278

 

 
84,719

Equity of net income of subsidiaries
67,420

 

 
(67,420
)
 

Provision for income taxes

 
(21,858
)
 

 
(21,858
)
Net income
$
62,861

 
$
67,420

 
$
(67,420
)
 
$
62,861




 
Condensed Consolidating Statement of Operations (in thousands):
 
 
Three Months Ended September 30, 2018
 
Issuer
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Homebuilding:
 
 
 
 
 
 
 
Home sales revenue
$
264,499

 
$
507,269

 
$

 
$
771,768

Land and lot sales revenue

 
2,225

 

 
2,225

Other operations revenue

 
598

 

 
598

Total revenues
264,499

 
510,092

 

 
774,591

Cost of home sales
214,759

 
392,294

 

 
607,053

Cost of land and lot sales

 
2,234

 

 
2,234

Other operations expense

 
590

 

 
590

Sales and marketing
11,434

 
33,420

 

 
44,854

General and administrative
19,427

 
18,682

 

 
38,109

Homebuilding income from operations
18,879

 
62,872

 

 
81,751

Equity in income of unconsolidated entities

 
15

 

 
15

Other (loss) income, net
(572
)
 
95

 

 
(477
)
Homebuilding income before income taxes
18,307

 
62,982

 

 
81,289

Financial Services:
 
 
 
 
 
 
 
Revenues

 
480

 

 
480

Expenses

 
125

 

 
125

Equity in income of unconsolidated entities

 
1,986

 

 
1,986

Financial services income before income taxes

 
2,341

 

 
2,341

Income before income taxes
18,307

 
65,323

 

 
83,630

Equity of net income of subsidiaries
45,662

 

 
(45,662
)
 

Provision for income taxes

 
(19,661
)
 

 
(19,661
)
Net income
$
63,969

 
$
45,662

 
$
(45,662
)
 
$
63,969













Condensed Consolidating Statement of Operations (in thousands):
 
Nine Months Ended September 30, 2019
 
Issuer
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Homebuilding:
 
 
 
 
 
 
 
Home sales revenue
$
519,280

 
$
1,411,830

 
$

 
$
1,931,110

Land and lot sales revenue

 
6,819

 

 
6,819

Other operations revenue

 
1,853

 

 
1,853

Total revenues
519,280

 
1,420,502

 

 
1,939,782

Cost of home sales
438,679

 
1,135,168

 

 
1,573,847

Cost of land and lot sales

 
7,552

 

 
7,552

Other operations expense

 
1,826

 

 
1,826

Sales and marketing
28,976

 
104,912

 

 
133,888

General and administrative
57,223

 
56,979

 

 
114,202

Homebuilding (loss) income from operations
(5,598
)
 
114,065

 

 
108,467

Equity in loss of unconsolidated entities

 
(33
)
 

 
(33
)
Other income, net
6,169

 
550

 

 
6,719

Homebuilding income before income taxes
571

 
114,582

 

 
115,153

Financial Services:
 
 
 
 
 
 
 
Revenues

 
1,959

 

 
1,959

Expenses

 
1,765

 

 
1,765

Equity in income of unconsolidated entities

 
4,861

 

 
4,861

Financial services income before income taxes

 
5,055

 

 
5,055

Income before income taxes
571

 
119,637

 

 
120,208

Equity of net income of subsidiaries
88,628

 

 
(88,628
)
 

Provision for income taxes
(5
)
 
(31,009
)
 

 
(31,014
)
Net income
$
89,194

 
$
88,628

 
$
(88,628
)
 
$
89,194














Condensed Consolidating Statement of Operations (in thousands):
 
Nine Months Ended September 30, 2018
 
Issuer
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Homebuilding:
 
 
 
 
 
 
 
Home sales revenue
$
710,561

 
$
1,412,574

 
$

 
$
2,123,135

Land and lot sales revenue

 
3,966

 

 
3,966

Other operations revenue

 
1,795

 

 
1,795

Total revenues
710,561

 
1,418,335

 

 
2,128,896

Cost of home sales
586,852

 
1,074,799

 

 
1,661,651

Cost of land and lot sales

 
4,163

 

 
4,163

Other operations expense

 
1,781

 

 
1,781

Sales and marketing
33,943

 
94,938

 

 
128,881

General and administrative
55,527

 
55,879

 

 
111,406

Homebuilding income from operations
34,239

 
186,775

 

 
221,014

Equity in loss of unconsolidated entities

 
(384
)
 

 
(384
)
Other (loss) income, net
(537
)
 
158

 

 
(379
)
Homebuilding income before income taxes
33,702

 
186,549

 

 
220,251

Financial Services:
 
 
 
 
 
 
 
Revenues

 
1,154

 

 
1,154

Expenses

 
391

 

 
391

Equity in income of unconsolidated entities

 
4,972

 

 
4,972

Financial services income before income taxes

 
5,735

 

 
5,735

Income before income taxes
33,702

 
192,284

 

 
225,986

Equity of net income of subsidiaries
136,827

 

 
(136,827
)
 

Provision for income taxes

 
(55,457
)
 

 
(55,457
)
Net income
$
170,529

 
$
136,827

 
$
(136,827
)
 
$
170,529

















Condensed Consolidating Statement of Cash Flows
Condensed Consolidating Statement of Cash Flows (in thousands):
 
 
Nine Months Ended September 30, 2019
 
Issuer
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Cash flows from operating activities:
 
 
 
 
 
 
 
Net cash provided by (used in) operating activities
$
5,678

 
$
(99,987
)
 
$

 
$
(94,309
)
Cash flows from investing activities:
 
 
 
 
 
 
 
Purchases of property and equipment
(7,088
)
 
(15,304
)
 

 
(22,392
)
Proceeds from sale of property and equipment

 
46

 

 
46

Investments in unconsolidated entities

 
(712
)
 

 
(712
)
Intercompany
(81,969
)
 

 
81,969

 

Net cash used in investing activities
(89,057
)
 
(15,970
)
 
81,969

 
(23,058
)
Cash flows from financing activities:
 
 
 
 
 
 
 
Borrowings from debt
400,000

 

 

 
400,000

Repayment of debt
(381,895
)
 

 

 
(381,895
)
Debt issuance costs
(3,125
)
 

 

 
(3,125
)
Proceeds from issuance of common stock under
   share-based awards
300

 

 

 
300

Minimum tax withholding paid on behalf of employees for
   restricted stock units
(3,612
)
 

 

 
(3,612
)
Share repurchases
(41,735
)
 

 

 
(41,735
)
Intercompany

 
81,969

 
(81,969
)
 

Net cash (used in) provided by financing activities
(30,067
)
 
81,969

 
(81,969
)
 
(30,067
)
Net decrease in cash and cash equivalents
(113,446
)
 
(33,988
)
 

 
(147,434
)
Cash and cash equivalents–beginning of period
148,129

 
129,567

 

 
277,696

Cash and cash equivalents–end of period
$
34,683

 
$
95,579

 
$

 
$
130,262




Condensed Consolidating Statement of Cash Flows (in thousands):
 
 
Nine Months Ended September 30, 2018
 
Issuer
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Cash flows from operating activities:
 
 
 
 
 
 
 
Net cash provided by (used in) operating activities
$
60,315

 
$
(132,405
)
 
$

 
$
(72,090
)
Cash flows from investing activities:
 
 
 
 
 
 
 
Purchases of property and equipment
(6,603
)
 
(17,944
)
 

 
(24,547
)
Proceeds from sale of property and equipment

 
8

 

 
8

Investments in unconsolidated entities

 
(1,812
)
 

 
(1,812
)
Intercompany
(108,780
)
 

 
108,780

 

Net cash used in investing activities
(115,383
)
 
(19,748
)
 
108,780

 
(26,351
)
Cash flows from financing activities:
 
 
 
 
 
 
 
Borrowings from notes payable
100,000

 

 

 
100,000

Repayment of notes payable
(57,931
)
 

 

 
(57,931
)
Distributions to noncontrolling interests

 
(1
)
 

 
(1
)
Proceeds from issuance of common stock under
   share-based awards
1,943

 

 

 
1,943

Minimum tax withholding paid on behalf of employees for restricted stock units
(6,049
)
 

 

 
(6,049
)
Share repurchases
(139,349
)
 

 

 
(139,349
)
Intercompany

 
108,780

 
(108,780
)
 

Net cash (used in) provided by financing activities
(101,386
)
 
108,779

 
(108,780
)
 
(101,387
)
Net decrease in cash and cash equivalents
(156,454
)
 
(43,374
)
 

 
(199,828
)
Cash and cash equivalents–beginning of period
176,684

 
106,230

 

 
282,914

Cash and cash equivalents–end of period
$
20,230

 
$
62,856

 
$

 
$
83,086


v3.19.3
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Details)
$ in Thousands
9 Months Ended
Sep. 30, 2019
state
segment
Jan. 01, 2019
USD ($)
Jan. 01, 2018
USD ($)
Segment Reporting Information [Line Items]      
Cumulative effect of accounting change     $ (7,354)
All HomeBuilding Segments      
Segment Reporting Information [Line Items]      
Number of brands in portfolio | segment 6    
Number of states entity operates | state 9    
ASU 2016-02      
Segment Reporting Information [Line Items]      
Cumulative effect of accounting change   $ 57,400  
v3.19.3
Segment Information - Additional Information (Detail)
9 Months Ended
Sep. 30, 2019
business
segment
Segment Reporting Information [Line Items]  
Number of principal lines of businesses | business 2
All HomeBuilding Segments  
Segment Reporting Information [Line Items]  
Number of homebuilding companies 6
Number of reportable segments 6
v3.19.3
Segment Information - Summary of Financial Information Relating to Reportable Segments (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Dec. 31, 2018
Segment Reporting Information [Line Items]          
Total revenues $ 748,395 $ 775,071 $ 1,941,741 $ 2,130,050  
Income (loss) before income taxes 84,719 83,630 120,208 225,986  
Real estate inventories 3,345,390   3,345,390   $ 3,216,059
Total assets 3,941,471   3,941,471   3,884,203
All HomeBuilding Segments          
Segment Reporting Information [Line Items]          
Real estate inventories 3,345,390   3,345,390   3,216,059
Total assets 3,917,753   3,917,753   3,864,318
Operating segments | Maracay          
Segment Reporting Information [Line Items]          
Real estate inventories 346,337   346,337   293,217
Total assets 379,817   379,817   318,703
Operating segments | Pardee Homes          
Segment Reporting Information [Line Items]          
Real estate inventories 1,343,809   1,343,809   1,286,877
Total assets 1,451,879   1,451,879   1,391,503
Operating segments | Quadrant Homes          
Segment Reporting Information [Line Items]          
Real estate inventories 293,220   293,220   279,486
Total assets 350,305   350,305   313,947
Operating segments | Trendmaker Homes          
Segment Reporting Information [Line Items]          
Real estate inventories 274,130   274,130   271,061
Total assets 320,998   320,998   325,943
Operating segments | TRI Pointe Homes          
Segment Reporting Information [Line Items]          
Real estate inventories 803,339   803,339   812,799
Total assets 995,806   995,806   987,610
Operating segments | Winchester Homes          
Segment Reporting Information [Line Items]          
Real estate inventories 284,555   284,555   272,619
Total assets 317,583   317,583   298,602
Operating segments | Financial services          
Segment Reporting Information [Line Items]          
Total assets 23,718   23,718   19,885
Corporate          
Segment Reporting Information [Line Items]          
Total assets 101,365   101,365   $ 228,010
Homebuilding          
Segment Reporting Information [Line Items]          
Total revenues 747,494 774,591 1,939,782 2,128,896  
Homebuilding | All HomeBuilding Segments          
Segment Reporting Information [Line Items]          
Total revenues 747,494 774,591 1,939,782 2,128,896  
Income (loss) before income taxes 82,521 81,289 115,153 220,251  
Homebuilding | Operating segments | Maracay          
Segment Reporting Information [Line Items]          
Total revenues 70,860 66,730 166,074 182,134  
Income (loss) before income taxes 6,179 6,260 10,355 15,665  
Homebuilding | Operating segments | Pardee Homes          
Segment Reporting Information [Line Items]          
Total revenues 321,922 224,452 651,484 648,208  
Income (loss) before income taxes 73,790 36,087 87,734 122,195  
Homebuilding | Operating segments | Quadrant Homes          
Segment Reporting Information [Line Items]          
Total revenues 49,875 66,174 164,812 193,481  
Income (loss) before income taxes 1,600 9,269 4,154 25,206  
Homebuilding | Operating segments | Trendmaker Homes          
Segment Reporting Information [Line Items]          
Total revenues 103,428 78,606 296,212 197,730  
Income (loss) before income taxes 5,578 7,379 10,888 13,977  
Homebuilding | Operating segments | TRI Pointe Homes          
Segment Reporting Information [Line Items]          
Total revenues 154,737 264,499 519,280 710,561  
Income (loss) before income taxes 7,245 30,945 29,734 69,651  
Homebuilding | Operating segments | Winchester Homes          
Segment Reporting Information [Line Items]          
Total revenues 46,672 74,130 141,920 196,782  
Income (loss) before income taxes (71) 4,122 1,718 9,908  
Homebuilding | Corporate          
Segment Reporting Information [Line Items]          
Income (loss) before income taxes (11,800) (12,773) (29,430) (36,351)  
Financial Services          
Segment Reporting Information [Line Items]          
Total revenues 901 480 1,959 1,154  
Financial Services | Operating segments | Financial services          
Segment Reporting Information [Line Items]          
Income (loss) before income taxes $ 2,198 $ 2,341 $ 5,055 $ 5,735  
v3.19.3
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Numerator:        
Net income $ 62,861 $ 63,969 $ 89,194 $ 170,529
Denominator:        
Basic weighted-average shares outstanding (shares) 141,088,381 147,725,074 141,729,759 150,377,472
Effect of dilutive shares:        
Stock options and unvested restricted stock units (shares) 445,165 592,958 399,027 1,104,984
Diluted weighted-average shares outstanding (shares) 141,533,546 148,318,032 142,128,786 151,482,456
Earnings per share        
Basic (in dollars per share) $ 0.45 $ 0.43 $ 0.63 $ 1.13
Diluted (in dollars per share) $ 0.44 $ 0.43 $ 0.63 $ 1.13
Antidilutive stock options and unvested restricted stock units not included in diluted earnings per share (in shares) 2,459,868 2,008,612 2,916,252 1,280,500
v3.19.3
Receivables - Components of Receivables (Detail) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Receivables [Abstract]    
Escrow proceeds and other accounts receivable, net $ 33,106 $ 13,995
Warranty insurance receivable 37,401 37,597
Total receivables $ 70,507 $ 51,592
v3.19.3
Receivables - Additional Information (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Receivables [Abstract]    
Allowance for doubtful accounts $ 451 $ 667
v3.19.3
Real Estate Inventories - Summary of Real Estate Inventories (Detail)
$ in Thousands
3 Months Ended
Sep. 30, 2019
USD ($)
community
Dec. 31, 2018
USD ($)
Real estate inventories owned:    
Homes completed or under construction $ 1,217,154 $ 959,911
Land under development 1,654,172 1,743,537
Land held for future development 129,880 201,874
Model homes 273,173 238,828
Total real estate inventories owned 3,274,379 3,144,150
Real estate inventories not owned:    
Land purchase and land option deposits 71,011 71,909
Total real estate inventories not owned 71,011 71,909
Total real estate inventories $ 3,345,390 $ 3,216,059
Number of communities with commenced development activity | community 2  
v3.19.3
Real Estate Inventories - Summary of Interest Incurred, Capitalized and Expensed (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Real Estate [Abstract]        
Interest incurred $ 22,405 $ 23,942 $ 67,740 $ 67,089
Interest capitalized (22,405) (23,942) (67,740) (67,089)
Interest expensed 0 0 0 0
Real Estate Inventory, Capitalized Interest Costs [Roll Forward]        
Capitalized interest in beginning inventory 197,295 185,589 184,400 176,348
Interest capitalized as a cost of inventory 22,405 23,942 67,740 67,089
Interest previously capitalized as a cost of inventory, included in cost of sales (19,234) (20,293) (51,674) (54,199)
Capitalized interest in ending inventory $ 200,466 $ 189,238 $ 200,466 $ 189,238
v3.19.3
Real Estate Inventories - Schedule of Land and Lot Option Abandonments and Pre-acquisition Charges (Detail) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Real Estate [Abstract]        
Real estate inventory impairments $ 0 $ 0 $ 0 $ 0
Land and lot option abandonments and pre-acquisition charges 1,029,000 643,000 6,519,000 1,500,000
Total $ 1,029,000 $ 643,000 $ 6,519,000 $ 1,500,000
v3.19.3
Investments in Unconsolidated Entities - Additional Information (Detail)
9 Months Ended
Sep. 30, 2019
investment
Minimum  
Investment Holdings [Line Items]  
Ownership percentage 7.00%
Maximum  
Investment Holdings [Line Items]  
Ownership percentage 65.00%
Homebuilding Partnerships or Limited Liability Companies  
Investment Holdings [Line Items]  
Number of equity investments 4
Financial Services Limited Liability Company  
Investment Holdings [Line Items]  
Number of equity investments 1
v3.19.3
Investments in Unconsolidated Entities - Aggregated Assets, Liabilities and Operating Results of Entities as Equity-Method Investments (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Dec. 31, 2018
Assets          
Total assets $ 118,540   $ 118,540   $ 118,686
Liabilities and equity          
Accounts payable and other liabilities 7,743   7,743   11,631
Company’s equity 4,207   4,207   5,410
Outside interests’ equity 106,590   106,590   101,645
Total liabilities and equity 118,540   118,540   118,686
Net sales 8,617 $ 6,185 19,081 $ 19,900  
Other operating expense (5,466) (2,951) (11,746) (13,510)  
Other income, net 173 1 174 85  
Net income 3,324 3,235 7,509 6,475  
Company’s equity in income of unconsolidated entities 2,132 $ 2,001 4,828 $ 4,588  
Cash          
Assets          
Total assets 9,740   9,740   13,337
Receivables          
Assets          
Total assets 5,250   5,250   4,674
Real Estate Inventories          
Assets          
Total assets 102,878   102,878   99,864
Other Assets          
Assets          
Total assets $ 672   $ 672   $ 811
v3.19.3
Variable Interest Entities - Summary of Interests in Land Option Agreements (Detail) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Variable Interest Entity [Line Items]    
Deposits $ 71,011 $ 71,909
Remaining Purchase Price 730,279 741,218
Consolidated inventory held by VIEs 0 0
Consolidated VIEs    
Variable Interest Entity [Line Items]    
Deposits 0 0
Remaining Purchase Price 0 0
Consolidated inventory held by VIEs 0 0
Unconsolidated VIEs    
Variable Interest Entity [Line Items]    
Deposits 45,243 41,198
Remaining Purchase Price 403,246 433,720
Other land option agreements    
Variable Interest Entity [Line Items]    
Deposits 25,768 30,711
Remaining Purchase Price $ 327,033 $ 307,498
v3.19.3
Variable Interest Entities - Additional Information (Detail) - USD ($)
$ in Millions
Sep. 30, 2019
Dec. 31, 2018
Other land option agreements    
Variable Interest Entity [Line Items]    
Capitalized pre-acquisition costs $ 7.2 $ 7.5
v3.19.3
Goodwill and Other Intangible Assets - Schedule of Goodwill and Other Intangible Assets (Detail) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]    
Goodwill $ 139,304 $ 139,304
Trade names, Gross Carrying Amount 27,979 27,979
Gross Carrying Amount 167,283 167,283
Accumulated Amortization (7,257) (6,856)
Trade names, Net Carrying Amount 20,722 21,123
Net Carrying Amount $ 160,026 $ 160,427
v3.19.3
Goodwill and Other Intangible Assets - Additional Information (Detail)
$ in Thousands
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2019
USD ($)
asset
Sep. 30, 2018
USD ($)
Sep. 30, 2019
USD ($)
asset
Sep. 30, 2018
USD ($)
Dec. 31, 2018
USD ($)
Schedule Of Intangible Assets And Goodwill [Line Items]          
Goodwill $ 139,304   $ 139,304   $ 139,304
Number of intangible assets | asset 2   2    
Net carrying amount of intangible asset $ 3,422   $ 3,422   $ 3,800
Indefinite-Lived Trade Names          
Schedule Of Intangible Assets And Goodwill [Line Items]          
Indefinite life intangible asset 17,300   $ 17,300    
Finite-Lived Trade Names          
Schedule Of Intangible Assets And Goodwill [Line Items]          
Remaining useful life of amortizing asset     6 years 4 months 24 days   7 years 2 months 12 days
Amortization expense 133 $ 133 $ 401 $ 401  
Maracay          
Schedule Of Intangible Assets And Goodwill [Line Items]          
Intangible assets useful life     20 years    
WRECO Transaction          
Schedule Of Intangible Assets And Goodwill [Line Items]          
Goodwill $ 139,300   $ 139,300   $ 139,300
v3.19.3
Goodwill and Other Intangible Assets - Schedule of Expected Amortization of Intangible Asset (Detail) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]    
Remainder of 2019 $ 133  
2020 534  
2021 534  
2022 534  
2023 534  
Thereafter 1,153  
Total $ 3,422 $ 3,800
v3.19.3
Other Assets - Schedule of Other Assets (Detail) - USD ($)
$ in Thousands
Sep. 30, 2019
Jan. 01, 2019
Dec. 31, 2018
Jan. 01, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]        
Prepaid expenses $ 26,943   $ 31,983  
Refundable fees and other deposits 24,556   12,376  
Development rights, held for future use or sale 2,250   845  
Deferred loan costs–loans payable 4,663   2,424  
Operating properties and equipment, net 59,367   54,198  
Lease right-of-use assets 52,462   0  
Other 3,563   3,425  
Total $ 173,804   $ 105,251  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Cumulative effect of accounting change       $ (7,354)
ASU 2016-02        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Cumulative effect of accounting change   $ 57,400    
v3.19.3
Accrued Expenses and Other Liabilities - Schedule of Accrued Expenses and Other Liabilities (Detail) - USD ($)
$ in Thousands
Sep. 30, 2019
Jun. 30, 2019
Jan. 01, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Jan. 01, 2018
Dec. 31, 2017
Payables and Accruals [Abstract]                
Accrued payroll and related costs $ 28,660     $ 44,010        
Warranty reserves (Note 13) 72,893 $ 71,471   71,836 $ 73,995 $ 72,342   $ 69,373
Estimated cost for completion of real estate inventories 86,232     114,928        
Customer deposits 23,587     17,464        
Income tax liability to Weyerhaeuser 577     6,577        
Accrued income taxes payable 4,315     8,335        
Liability for uncertain tax positions (Note 15) 972     972        
Accrued interest 19,135     12,572        
Other tax liability 8,003     21,892        
Lease liabilities 57,513     3,196        
Other 13,549     33,367        
Total $ 315,436     $ 335,149        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                
Cumulative effect of accounting change             $ (7,354)  
ASU 2016-02                
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                
Cumulative effect of accounting change     $ 57,400          
v3.19.3
Senior Notes and Loans Payable - Schedule of Senior Notes (Detail) - Senior Notes - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Debt Instrument [Line Items]    
Discount and deferred loan costs $ (16,942) $ (21,091)
Total 1,033,058 1,410,804
4.375% Senior notes due June 15, 2019    
Debt Instrument [Line Items]    
Senior notes (gross) 0 381,895
4.875% Senior notes due July 1, 2021    
Debt Instrument [Line Items]    
Senior notes (gross) 300,000 300,000
5.875% Senior notes due June 15, 2024    
Debt Instrument [Line Items]    
Senior notes (gross) 450,000 450,000
5.250% Senior notes due June 1, 2027    
Debt Instrument [Line Items]    
Senior notes (gross) $ 300,000 $ 300,000
v3.19.3
Senior Notes and Loans Payable - Schedule of Senior Notes (Phantoms) (Detail) - Senior Notes
Sep. 30, 2019
Jun. 30, 2017
May 31, 2016
4.375% Senior notes due June 15, 2019      
Debt Instrument [Line Items]      
Interest rate on senior note (percent) 4.375%    
4.875% Senior notes due July 1, 2021      
Debt Instrument [Line Items]      
Interest rate on senior note (percent) 4.875%   4.875%
5.875% Senior notes due June 15, 2024      
Debt Instrument [Line Items]      
Interest rate on senior note (percent) 5.875%    
5.250% Senior notes due June 1, 2027      
Debt Instrument [Line Items]      
Interest rate on senior note (percent) 5.25% 5.25%  
v3.19.3
Senior Notes and Loans Payable - Additional Information (Detail) - USD ($)
1 Months Ended 3 Months Ended 9 Months Ended 12 Months Ended
Jun. 15, 2019
Jun. 30, 2019
Jun. 30, 2017
May 31, 2016
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Dec. 31, 2018
Mar. 29, 2019
Debt Instrument [Line Items]                    
Repurchased principal             $ 381,895,000 $ 57,931,000    
Capitalization of deferred finance costs         $ 4,663,000   4,663,000   $ 2,424,000  
Accrued interest         19,135,000   19,135,000   12,572,000  
Loans payable         400,000,000   400,000,000   0  
Interest incurred         22,405,000 $ 23,942,000 67,740,000 67,089,000    
Amortization of deferred financing costs         1,200,000 $ 2,000,000.0 5,000,000.0 $ 6,100,000    
Senior Notes                    
Debt Instrument [Line Items]                    
Proceeds from issuance of senior notes, net             861,300,000      
Capitalization of deferred finance costs         11,700,000   11,700,000      
Accrued interest         $ 16,700,000   $ 16,700,000   11,500,000  
5.250% Senior notes due June 1, 2027 | Senior Notes                    
Debt Instrument [Line Items]                    
Aggregate principal amount     $ 300,000,000              
Interest rate on debt instrument (percent)     5.25%   5.25%   5.25%      
Debt issuance, percentage of aggregate principal (percent)     100.00%              
Proceeds from issuance of senior notes, net     $ 296,300,000              
4.875% Senior notes due July 1, 2021 | Senior Notes                    
Debt Instrument [Line Items]                    
Aggregate principal amount       $ 300,000,000            
Interest rate on debt instrument (percent)       4.875% 4.875%   4.875%      
Debt issuance, percentage of aggregate principal (percent)       99.44%            
Proceeds from issuance of senior notes, net       $ 293,900,000            
4.375% Senior notes due June 15, 2019 | Senior Notes                    
Debt Instrument [Line Items]                    
Interest rate on debt instrument (percent)         4.375%   4.375%      
Repurchased principal $ 381,900,000               68,100,000  
5.875% Senior notes due June 15, 2024 | Senior Notes                    
Debt Instrument [Line Items]                    
Interest rate on debt instrument (percent)         5.875%   5.875%      
Debt issuance, percentage of aggregate principal (percent)             98.15%      
The Facility                    
Debt Instrument [Line Items]                    
Maximum borrowing capacity under facility                   $ 1,000,000,000
Consolidated tangible net worth attributed to Company required under covenants (percent)         97.00%   97.00%      
The Revolving Facility | The Revolving Facility                    
Debt Instrument [Line Items]                    
Capitalization of deferred finance costs         $ 4,700,000   $ 4,700,000      
Accrued interest         754,000   754,000   402,000  
Borrowing capacity of credit facility                   600,000,000
Loans payable         $ 150,000,000   $ 150,000,000   0  
Interest rate of outstanding debt (percent)         3.85%   3.85%      
Available secured revolving credit facility         $ 418,600,000   $ 418,600,000      
The Revolving Facility | The Revolving Facility | Minimum                    
Debt Instrument [Line Items]                    
Debt instrument variable interest rate (percent)             1.25%      
The Revolving Facility | The Revolving Facility | Maximum                    
Debt Instrument [Line Items]                    
Debt instrument variable interest rate (percent)             2.00%      
The Revolving Facility | Letters of credit                    
Debt Instrument [Line Items]                    
Maximum borrowing capacity under facility                   75,000,000
Outstanding letters of credit         31,400,000   $ 31,400,000   31,800,000  
The Term Facility | Term Loan                    
Debt Instrument [Line Items]                    
Borrowing capacity of credit facility         250,000,000   250,000,000     $ 250,000,000
Expected draw from the Term Facility   $ 250,000,000                
Loans payable         $ 250,000,000   $ 250,000,000   $ 0  
Interest rate of outstanding debt (percent)         3.45%   3.45%      
The Term Facility | Term Loan | Minimum                    
Debt Instrument [Line Items]                    
Debt instrument variable interest rate (percent)             1.10%      
The Term Facility | Term Loan | Maximum                    
Debt Instrument [Line Items]                    
Debt instrument variable interest rate (percent)             1.85%      
v3.19.3
Senior Notes and Loans Payable - Schedule of Outstanding Loans Payable (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Line of Credit Facility [Line Items]    
Loans payable $ 400,000 $ 0
The Revolving Facility | The Revolving Facility    
Line of Credit Facility [Line Items]    
Loans payable 150,000 0
Term Loan | The Term Facility    
Line of Credit Facility [Line Items]    
Loans payable $ 250,000 $ 0
v3.19.3
Fair Value Disclosures - Summary of Assets and Liabilities Related to Financial Instruments, Measured at Fair Value on a Recurring Basis (Detail) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Deferred loan costs–loans payable $ 4,663 $ 2,424
Unsecured revolving credit facility | Level 2 | Recurring | Book Value    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Financial instruments 150,000 0
Unsecured revolving credit facility | Level 2 | Recurring | Fair Value    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Financial instruments 150,000 0
The Term Facility | Level 2 | Recurring | Book Value    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Financial instruments 250,000 0
The Term Facility | Level 2 | Recurring | Fair Value    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Financial instruments 250,000 0
Senior Notes    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Deferred loan costs–loans payable 11,700  
Senior Notes | Level 2 | Recurring | Book Value    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Financial instruments 1,044,775 1,425,397
Deferred loan costs–loans payable 11,700 14,600
Senior Notes | Level 2 | Recurring | Fair Value    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Financial instruments $ 1,084,875 $ 1,308,826
v3.19.3
Commitments and Contingencies - Additional Information (Detail)
12 Months Ended
Dec. 31, 1987
lease_renewal
lease
lease_extension
Sep. 30, 2019
USD ($)
Dec. 31, 2018
USD ($)
Commitment And Contingencies [Line Items]      
Outstanding warranty insurance receivables   $ 37,401,000 $ 37,597,000
Estimated remaining liabilities related to surety bonds   13,549,000 33,367,000
Surety bonds      
Commitment And Contingencies [Line Items]      
Outstanding surety bonds   592,100,000 685,700,000
Estimated remaining liabilities related to surety bonds   398,200,000 423,400,000
Legal Reserve      
Commitment And Contingencies [Line Items]      
Legal reserves   $ 0 $ 17,500,000
Office Leases      
Commitment And Contingencies [Line Items]      
Lease obligation original term   10 years  
Equipment Leases | Minimum      
Commitment And Contingencies [Line Items]      
Lease obligation original term   3 years  
Equipment Leases | Maximum      
Commitment And Contingencies [Line Items]      
Lease obligation original term   4 years  
Ground lease      
Commitment And Contingencies [Line Items]      
Lease obligation original term 55 years    
Number of properties subject to ground leases | lease 2    
Ten Year Renewal Option | Ground lease      
Commitment And Contingencies [Line Items]      
Number of lease extensions | lease_renewal 3    
Term of lease extension 10 years    
Forty-five Year Renewal Option | Ground lease      
Commitment And Contingencies [Line Items]      
Lease obligation original term 45 years    
Number of properties subject to ground leases | lease 1    
Extension Through 2071 | Ground lease      
Commitment And Contingencies [Line Items]      
Number of ground leases extended | lease_extension 1    
v3.19.3
Commitments and Contingencies - Schedule of Warranty Reserves (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Movement in Standard Product Warranty Accrual [Roll Forward]        
Warranty reserves, beginning of period $ 71,471 $ 72,342 $ 71,836 $ 69,373
Warranty reserves accrued 6,826 6,257 17,481 17,669
Warranty expenditures (5,404) (4,604) (16,424) (13,047)
Warranty reserves, end of period $ 72,893 $ 73,995 $ 72,893 $ 73,995
v3.19.3
Commitments and Contingencies - Schedule of Lease Costs and Other Information (Details)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
USD ($)
Sep. 30, 2019
USD ($)
Lessee, Lease, Description [Line Items]    
Net lease cost $ 2,746 $ 6,938
Right-of-use assets obtained in exchange for new operating lease liabilities 311 2,364
Operating Leases    
Lessee, Lease, Description [Line Items]    
Lease cost 2,755 6,965
Cash paid for amounts included in the measurement of lease liabilities $ 1,556 $ 4,806
Weighted-average discount rate (percent) 6.00% 6.00%
Weighted-average remaining lease term (in years): 6 years 1 month 6 days 6 years 1 month 6 days
Ground lease    
Lessee, Lease, Description [Line Items]    
Lease cost $ 609 $ 1,826
Sublease income, ground leases (included in other operations revenue) (618) (1,853)
Cash paid for amounts included in the measurement of lease liabilities $ 609 $ 1,826
Weighted-average discount rate (percent) 10.20% 10.20%
Weighted-average remaining lease term (in years): 48 years 6 months 48 years 6 months
v3.19.3
Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Lessee, Lease, Description [Line Items]    
Present value of operating lease liabilities $ 57,513 $ 3,196
Operating Leases    
Lessee, Lease, Description [Line Items]    
Remaining in 2019 2,278  
2020 8,594  
2021 7,182  
2022 5,591  
2023 4,484  
Thereafter 9,155  
Total future minimum lease payments under operating leases 37,284  
Less: Interest 6,708  
Present value of operating lease liabilities 30,576  
Ground lease    
Lessee, Lease, Description [Line Items]    
Remaining in 2019 746  
2020 2,984  
2021 2,984  
2022 2,984  
2023 2,984  
Thereafter 84,266  
Total future minimum lease payments under operating leases 96,948  
Less: Interest 70,011  
Present value of operating lease liabilities 26,937  
Future expected payments to be received under sublease $ 65,900  
v3.19.3
Stock-Based Compensation - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended 9 Months Ended
May 06, 2019
Mar. 11, 2019
Mar. 11, 2019
Feb. 28, 2019
Jul. 23, 2018
May 07, 2018
Apr. 30, 2018
Feb. 22, 2018
May 07, 2018
Sep. 30, 2019
Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Unrecognized stock based compensation related to all stock-based awards                   $ 21.8  
Weighted average period, expense to recognize                   1 year 10 months 24 days  
Chief Executive Officer | Performance metric based on Company's TSR                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Allocation of RSU's to performance metrics (percent)       30.00%              
Chief Executive Officer | Performance metric based on Company's earnings per share                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Allocation of RSU's to performance metrics (percent)       70.00%              
Restricted Stock Units (RSUs)                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Restricted stock units, granted (shares)                   1,656,333  
Fair value of RSUs (in dollars per share)                   $ 12.39 $ 11.05
Restricted Stock Units (RSUs) | Performance-based RSUs | Minimum                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Vesting rights (percent)       0.00%       0.00%      
Restricted Stock Units (RSUs) | Performance-based RSUs | Maximum                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Vesting rights (percent)       100.00%       100.00%      
Restricted Stock Units (RSUs) | Non-employee Members on Board of Directors                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Restricted stock units, granted (shares) 61,488                    
Restricted Stock Units (RSUs) | Non-employee Members on Board of Directors | Time-vested RSUs                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Restricted stock units, granted (shares)         6,677   40,910        
Closing stock price on date of grant (in dollars per share)         $ 16.37   $ 17.11        
Restricted Stock Units (RSUs) | Certain employees                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Restricted stock units, granted (shares) 1,098                    
Restricted Stock Units (RSUs) | Certain Employees and Directors                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Restricted stock units, vesting period 3 years                    
Closing stock price on date of grant (in dollars per share) $ 13.66                    
Restricted Stock Units (RSUs) | Employees and Officers | Time-vested RSUs                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Restricted stock units, granted (shares)     3,025 990,723   4,258   633,107      
Restricted stock units, vesting period   3 years             3 years    
Closing stock price on date of grant (in dollars per share)   $ 13.22 $ 13.22 $ 12.60   $ 17.61   $ 16.94 $ 17.61    
Restricted Stock Units (RSUs) | Chief Executive Officer                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Restricted stock units, granted (shares)       247,619       184,179      
Restricted Stock Units (RSUs) | President                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Restricted stock units, granted (shares)       238,095       177,095      
Restricted Stock Units (RSUs) | Chief Financial Officer                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Restricted stock units, granted (shares)       114,285       85,005      
Restricted Stock Units (RSUs) | Employees Officers And Directors | Performance-based RSUs                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Closing stock price on date of grant (in dollars per share)       $ 12.60       $ 16.94      
Fair value of RSUs (in dollars per share)       $ 8.16       $ 10.97      
2013 Incentive Plan                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Common stock (shares)                   11,727,833  
Shares available for future grant (shares)                   5,835,420  
v3.19.3
Stock-Based Compensation - Summary of Compensation Expense Recognized Related to all Stock-Based Awards (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Share-based Payment Arrangement [Abstract]        
Total stock-based compensation $ 3,828 $ 3,765 $ 10,614 $ 10,955
v3.19.3
Stock-Based Compensation - Summary of Stock Option Awards (Detail) - Employee Stock Option - USD ($)
$ / shares in Units, $ in Thousands
9 Months Ended 12 Months Ended
Sep. 30, 2019
Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]    
Options, Outstanding, Balance (shares) 953,905  
Options, Granted (shares) 0  
Options, Exercised (shares) (46,940)  
Options, Forfeited (shares) (3,625)  
Options, Outstanding, Balance (shares) 903,340 953,905
Options exercisable at end of period (shares) 903,340  
Weighted Average Exercise Price Per Share    
Weighted Average Exercise Price, Outstanding, Balance (in dollars per share) $ 14.58  
Weighted Average Exercise Price, Granted (in dollars per share) 0  
Weighted Average Exercise Price, Exercised (in dollars per share) 6.66  
Weighted Average Exercise Price, Forfeited (in dollars per share) 14.29  
Weighted Average Exercise Price, Outstanding, Balance (in dollars per share) 15.00 $ 14.58
Weighted Average Exercise Price, Options exercisable at end of period (in dollars per share) $ 15.00  
Weighted Average Remaining Contractual Life, Outstanding 3 years 7 months 6 days 4 years 2 months 12 days
Weighted Average Remaining Contractual Life, Options exercisable at end of period 3 years 7 months 6 days  
Aggregate Intrinsic Value, Outstanding, Balance $ 786 $ 296
Aggregate Intrinsic Value, Outstanding, Options exercisable at end of period $ 786  
v3.19.3
Stock-Based Compensation - Summary of Restricted Stock Units (Detail) - Restricted Stock Units (RSUs) - USD ($)
$ / shares in Units, $ in Thousands
9 Months Ended
Sep. 30, 2019
Dec. 31, 2018
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) 3,341,848  
Nonvested Restricted Stock Units, Granted (shares) 1,656,333  
Nonvested Restricted Stock Units, Vested (shares) (844,534)  
Nonvested Restricted Stock Units, Forfeited (shares) (756,672)  
Nonvested Restricted Stock Units, Ending Balance (shares) 3,396,975  
Weighted Average Grant Date Fair Value Per Share    
Weighted Average Grant Date Fair Value, Beginning Balance (in dollars per share) $ 11.05  
Weighted Average Grant Date Fair Value, Granted (in dollars per share) 12.15  
Weighted Average Grant Date Fair Value, Vested (in dollars per share) 12.95  
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) 5.32  
Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share) $ 12.39  
Aggregate Intrinsic Value, Balance $ 51,091 $ 36,526
Aggregate Intrinsic Value, Granted $ 0  
v3.19.3
Income Taxes - Additional Information (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Mar. 31, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Dec. 31, 2018
Income Tax Contingency [Line Items]            
Deferred tax assets, net $ 57,275     $ 57,275   $ 67,768
Valuation allowance related to net deferred tax assets 3,400     3,400   3,400
Other income (expense), net 325   $ (477) 6,719 $ (379)  
Provision for income taxes 21,858   $ 19,661 31,014 $ 55,457  
Liability for uncertain tax positions 972     972   972
Weyerhaeuser            
Income Tax Contingency [Line Items]            
Other income (expense), net   $ 6,000        
Accrued Expenses And Other Liabilities | Weyerhaeuser            
Income Tax Contingency [Line Items]            
Income tax liability $ 577     $ 577   $ 6,600
v3.19.3
Related Party Transactions - Additional Information (Detail) - USD ($)
9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Related Party Transactions [Abstract]    
Related party transactions $ 0 $ 0
v3.19.3
Supplemental Disclosure to Consolidated Statements of Cash Flows (Detail) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Supplemental disclosure of cash flow information:    
Interest paid (capitalized), net $ (11,599) $ (12,807)
Income taxes paid (refunded), net 23,731 81,417
Supplemental disclosures of noncash activities:    
Amortization of senior note discount capitalized to real estate inventory 1,409 1,738
Amortization of deferred loan costs capitalized to real estate inventory 4,112 4,841
Increase in other assets related to adoption of ASC 606 $ 0 $ 39,534
v3.19.3
Supplemental Guarantor Information - Narrative (Details) - USD ($)
$ in Thousands
9 Months Ended 12 Months Ended
Jun. 15, 2019
Sep. 30, 2019
Sep. 30, 2018
Dec. 31, 2018
Condensed Financial Statements, Captions [Line Items]        
Repayment of debt   $ 381,895 $ 57,931  
4.375% Senior notes due June 15, 2019 | Senior Notes        
Condensed Financial Statements, Captions [Line Items]        
Repayment of debt $ 381,900     $ 68,100
v3.19.3
Supplemental Guarantor Information - Condensed Consolidating Balance Sheet (Detail) - USD ($)
$ in Thousands
Sep. 30, 2019
Jun. 30, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Dec. 31, 2017
Assets            
Cash and cash equivalents $ 130,262   $ 277,696      
Receivables 70,507   51,592      
Intercompany receivables 0   0      
Real estate inventories 3,345,390   3,216,059      
Investments in unconsolidated entities 4,207   5,410      
Goodwill and other intangible assets, net 160,026   160,427      
Investments in subsidiaries 0   0      
Deferred tax assets, net 57,275   67,768      
Other assets 173,804   105,251      
Total assets 3,941,471   3,884,203      
Liabilities            
Accounts payable 81,279   81,313      
Intercompany payables 0   0      
Accrued expenses and other liabilities 315,436   335,149      
Loans payable 400,000   0      
Senior notes 1,033,058   1,410,804      
Total liabilities 1,829,773   1,827,266      
Equity            
Total stockholders’ equity 2,111,685   2,056,924      
Noncontrolling interests 13   13      
Total equity 2,111,698 $ 2,086,643 2,056,937 $ 1,961,001 $ 2,032,306 $ 1,930,327
Total liabilities and equity 3,941,471   3,884,203      
Reporting Entity | Guarantor Subsidiaries            
Assets            
Cash and cash equivalents 95,579   129,567      
Receivables 44,804   35,003      
Intercompany receivables 0   0      
Real estate inventories 2,542,051   2,403,260      
Investments in unconsolidated entities 4,207   5,410      
Goodwill and other intangible assets, net 3,422   3,823      
Investments in subsidiaries 0   0      
Deferred tax assets, net 42,453   52,946      
Other assets 154,879   92,267      
Total assets 2,887,395   2,722,276      
Liabilities            
Accounts payable 61,181   67,880      
Intercompany payables 843,814   758,501      
Accrued expenses and other liabilities 222,249   223,247      
Loans payable 0          
Senior notes 0   0      
Total liabilities 1,127,244   1,049,628      
Equity            
Total stockholders’ equity 1,760,138   1,672,635      
Noncontrolling interests 13   13      
Total equity 1,760,151   1,672,648      
Total liabilities and equity 2,887,395   2,722,276      
Reporting Entity | Issuer            
Assets            
Cash and cash equivalents 34,683   148,129      
Receivables 25,703   16,589      
Intercompany receivables 843,814   758,501      
Real estate inventories 803,339   812,799      
Investments in unconsolidated entities 0   0      
Goodwill and other intangible assets, net 156,604   156,604      
Investments in subsidiaries 1,760,138   1,672,635      
Deferred tax assets, net 14,822   14,822      
Other assets 18,925   12,984      
Total assets 3,658,028   3,593,063      
Liabilities            
Accounts payable 20,098   13,433      
Intercompany payables 0   0      
Accrued expenses and other liabilities 93,187   111,902      
Loans payable 400,000          
Senior notes 1,033,058   1,410,804      
Total liabilities 1,546,343   1,536,139      
Equity            
Total stockholders’ equity 2,111,685   2,056,924      
Noncontrolling interests 0   0      
Total equity 2,111,685   2,056,924      
Total liabilities and equity 3,658,028   3,593,063      
Consolidating Adjustments            
Assets            
Cash and cash equivalents 0   0      
Receivables 0   0      
Intercompany receivables (843,814)   (758,501)      
Real estate inventories 0   0      
Investments in unconsolidated entities 0   0      
Goodwill and other intangible assets, net 0   0      
Investments in subsidiaries (1,760,138)   (1,672,635)      
Deferred tax assets, net 0   0      
Other assets 0   0      
Total assets (2,603,952)   (2,431,136)      
Liabilities            
Accounts payable 0   0      
Intercompany payables (843,814)   (758,501)      
Accrued expenses and other liabilities 0   0      
Loans payable 0          
Senior notes 0   0      
Total liabilities (843,814)   (758,501)      
Equity            
Total stockholders’ equity (1,760,138)   (1,672,635)      
Noncontrolling interests 0   0      
Total equity (1,760,138)   (1,672,635)      
Total liabilities and equity $ (2,603,952)   $ (2,431,136)      
v3.19.3
Supplemental Guarantor Information - Condensed Consolidating Statement of Operations (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Condensed Financial Statements, Captions [Line Items]        
Total revenues $ 748,395 $ 775,071 $ 1,941,741 $ 2,130,050
Other operations expense 609 590 1,826 1,781
Sales and marketing 47,834 44,854 133,888 128,881
General and administrative 38,751 38,109 114,202 111,406
Homebuilding income from operations 82,178 81,751 108,467 221,014
Equity in income (loss) of unconsolidated entities 18 15 (33) (384)
Other (loss) income, net 325 (477) 6,719 (379)
Homebuilding income before income taxes 82,521 81,289 115,153 220,251
Equity in income of unconsolidated entities 2,114 1,986 4,861 4,972
Financial services income before income taxes 2,198 2,341 5,055 5,735
Income before income taxes 84,719 83,630 120,208 225,986
Equity of net income of subsidiaries 0 0 0 0
Provision for income taxes (21,858) (19,661) (31,014) (55,457)
Net income 62,861 63,969 89,194 170,529
Reporting Entity | Guarantor Subsidiaries        
Condensed Financial Statements, Captions [Line Items]        
Other operations expense 609 590 1,826 1,781
Sales and marketing 38,118 33,420 104,912 94,938
General and administrative 19,398 18,682 56,979 55,879
Homebuilding income from operations 86,758 62,872 114,065 186,775
Equity in income (loss) of unconsolidated entities 18 15 (33) (384)
Other (loss) income, net 304 95 550 158
Homebuilding income before income taxes 87,080 62,982 114,582 186,549
Equity in income of unconsolidated entities 2,114 1,986 4,861 4,972
Financial services income before income taxes 2,198 2,341 5,055 5,735
Income before income taxes 89,278 65,323 119,637 192,284
Equity of net income of subsidiaries 0 0 0 0
Provision for income taxes (21,858) (19,661) (31,009) (55,457)
Net income 67,420 45,662 88,628 136,827
Reporting Entity | Issuer        
Condensed Financial Statements, Captions [Line Items]        
Other operations expense 0 0 0 0
Sales and marketing 9,716 11,434 28,976 33,943
General and administrative 19,353 19,427 57,223 55,527
Homebuilding income from operations (4,580) 18,879 (5,598) 34,239
Equity in income (loss) of unconsolidated entities 0 0 0 0
Other (loss) income, net 21 (572) 6,169 (537)
Homebuilding income before income taxes (4,559) 18,307 571 33,702
Equity in income of unconsolidated entities 0 0 0 0
Financial services income before income taxes 0 0 0 0
Income before income taxes (4,559) 18,307 571 33,702
Equity of net income of subsidiaries 67,420 45,662 88,628 136,827
Provision for income taxes 0 0 (5) 0
Net income 62,861 63,969 89,194 170,529
Consolidating Adjustments        
Condensed Financial Statements, Captions [Line Items]        
Other operations expense 0 0 0 0
Sales and marketing 0 0 0 0
General and administrative 0 0 0 0
Homebuilding income from operations 0 0 0 0
Equity in income (loss) of unconsolidated entities 0 0 0 0
Other (loss) income, net 0 0 0 0
Homebuilding income before income taxes 0 0 0 0
Equity in income of unconsolidated entities 0 0 0 0
Financial services income before income taxes 0 0 0 0
Income before income taxes 0 0 0 0
Equity of net income of subsidiaries (67,420) (45,662) (88,628) (136,827)
Provision for income taxes 0 0 0 0
Net income (67,420) (45,662) (88,628) (136,827)
Home sales        
Condensed Financial Statements, Captions [Line Items]        
Home sales and Land and lot sales revenue 746,269 771,768 1,931,110 2,123,135
Cost of sales and expenses 577,627 607,053 1,573,847 1,661,651
Home sales | Reporting Entity | Guarantor Subsidiaries        
Condensed Financial Statements, Captions [Line Items]        
Home sales and Land and lot sales revenue 591,532 507,269 1,411,830 1,412,574
Cost of sales and expenses 447,379 392,294 1,135,168 1,074,799
Home sales | Reporting Entity | Issuer        
Condensed Financial Statements, Captions [Line Items]        
Home sales and Land and lot sales revenue 154,737 264,499 519,280 710,561
Cost of sales and expenses 130,248 214,759 438,679 586,852
Home sales | Consolidating Adjustments        
Condensed Financial Statements, Captions [Line Items]        
Home sales and Land and lot sales revenue 0 0 0 0
Cost of sales and expenses 0 0 0 0
Land and lots        
Condensed Financial Statements, Captions [Line Items]        
Home sales and Land and lot sales revenue 607 2,225 6,819 3,966
Cost of sales and expenses 495 2,234 7,552 4,163
Land and lots | Reporting Entity | Guarantor Subsidiaries        
Condensed Financial Statements, Captions [Line Items]        
Home sales and Land and lot sales revenue 607 2,225 6,819 3,966
Cost of sales and expenses 495 2,234 7,552 4,163
Land and lots | Reporting Entity | Issuer        
Condensed Financial Statements, Captions [Line Items]        
Home sales and Land and lot sales revenue 0 0 0 0
Cost of sales and expenses 0 0 0 0
Land and lots | Consolidating Adjustments        
Condensed Financial Statements, Captions [Line Items]        
Home sales and Land and lot sales revenue 0 0 0 0
Cost of sales and expenses 0 0 0 0
Other operations        
Condensed Financial Statements, Captions [Line Items]        
Total revenues 618 598 1,853 1,795
Other operations | Reporting Entity | Guarantor Subsidiaries        
Condensed Financial Statements, Captions [Line Items]        
Total revenues 618 598 1,853 1,795
Other operations | Reporting Entity | Issuer        
Condensed Financial Statements, Captions [Line Items]        
Total revenues 0 0 0 0
Other operations | Consolidating Adjustments        
Condensed Financial Statements, Captions [Line Items]        
Total revenues 0 0 0 0
Homebuilding        
Condensed Financial Statements, Captions [Line Items]        
Total revenues 747,494 774,591 1,939,782 2,128,896
Homebuilding | Reporting Entity | Guarantor Subsidiaries        
Condensed Financial Statements, Captions [Line Items]        
Total revenues 592,757 510,092 1,420,502 1,418,335
Homebuilding | Reporting Entity | Issuer        
Condensed Financial Statements, Captions [Line Items]        
Total revenues 154,737 264,499 519,280 710,561
Homebuilding | Consolidating Adjustments        
Condensed Financial Statements, Captions [Line Items]        
Total revenues 0 0 0 0
Financial Services        
Condensed Financial Statements, Captions [Line Items]        
Home sales and Land and lot sales revenue 901 480 1,959 1,154
Total revenues 901 480 1,959 1,154
Cost of sales and expenses 817 125 1,765 391
Financial Services | Reporting Entity | Guarantor Subsidiaries        
Condensed Financial Statements, Captions [Line Items]        
Home sales and Land and lot sales revenue 901 480 1,959 1,154
Cost of sales and expenses 817 125 1,765 391
Financial Services | Reporting Entity | Issuer        
Condensed Financial Statements, Captions [Line Items]        
Home sales and Land and lot sales revenue 0 0 0 0
Cost of sales and expenses 0 0 0 0
Financial Services | Consolidating Adjustments        
Condensed Financial Statements, Captions [Line Items]        
Home sales and Land and lot sales revenue 0 0 0 0
Cost of sales and expenses $ 0 $ 0 $ 0 $ 0
v3.19.3
Supplemental Guarantor Information - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($)
$ in Thousands
9 Months Ended 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Dec. 31, 2018
Cash flows from operating activities:      
Net cash used in operating activities $ (94,309) $ (72,090)  
Cash flows from investing activities:      
Purchases of property and equipment (22,392) (24,547)  
Proceeds from sale of property and equipment 46 8  
Investments in unconsolidated entities (712) (1,812)  
Intercompany 0 0  
Net cash used in investing activities (23,058) (26,351)  
Cash flows from financing activities:      
Borrowings from debt 400,000 100,000  
Repayment of debt (381,895) (57,931)  
Debt issuance costs (3,125) 0  
Distributions to noncontrolling interests 0 (1)  
Proceeds from issuance of common stock under share-based awards 300 1,943  
Minimum tax withholding paid on behalf of employees for share-based awards (3,612) (6,049)  
Share repurchases (41,735) (139,349)  
Intercompany 0 0  
Net cash used in financing activities (30,067) (101,387)  
Net decrease in cash and cash equivalents (147,434) (199,828)  
Cash and cash equivalents–beginning of period 277,696 282,914 $ 282,914
Cash and cash equivalents–end of period 130,262 83,086 277,696
Reporting Entity | Guarantor Subsidiaries      
Cash flows from operating activities:      
Net cash used in operating activities (99,987) (132,405)  
Cash flows from investing activities:      
Purchases of property and equipment (15,304) (17,944)  
Proceeds from sale of property and equipment 46 8  
Investments in unconsolidated entities (712) (1,812)  
Intercompany 0 0  
Net cash used in investing activities (15,970) (19,748)  
Cash flows from financing activities:      
Borrowings from debt 0 0  
Repayment of debt 0 0  
Debt issuance costs 0    
Distributions to noncontrolling interests   (1)  
Proceeds from issuance of common stock under share-based awards 0 0  
Minimum tax withholding paid on behalf of employees for share-based awards 0 0  
Share repurchases 0 0  
Intercompany 81,969 108,780  
Net cash used in financing activities 81,969 108,779  
Net decrease in cash and cash equivalents (33,988) (43,374)  
Cash and cash equivalents–beginning of period 129,567 106,230 106,230
Cash and cash equivalents–end of period 95,579 62,856 129,567
Reporting Entity | Issuer      
Cash flows from operating activities:      
Net cash used in operating activities 5,678 60,315  
Cash flows from investing activities:      
Purchases of property and equipment (7,088) (6,603)  
Proceeds from sale of property and equipment 0 0  
Investments in unconsolidated entities 0 0  
Intercompany (81,969) (108,780)  
Net cash used in investing activities (89,057) (115,383)  
Cash flows from financing activities:      
Borrowings from debt 400,000 100,000  
Repayment of debt (381,895) (57,931)  
Debt issuance costs (3,125)    
Distributions to noncontrolling interests   0  
Proceeds from issuance of common stock under share-based awards 300 1,943  
Minimum tax withholding paid on behalf of employees for share-based awards (3,612) (6,049)  
Share repurchases (41,735) (139,349)  
Intercompany 0 0  
Net cash used in financing activities (30,067) (101,386)  
Net decrease in cash and cash equivalents (113,446) (156,454)  
Cash and cash equivalents–beginning of period 148,129 176,684 176,684
Cash and cash equivalents–end of period 34,683 20,230 148,129
Consolidating Adjustments      
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  
Proceeds from sale of property and equipment 0 0  
Investments in unconsolidated entities 0 0  
Intercompany 81,969 108,780  
Net cash used in investing activities 81,969 108,780  
Cash flows from financing activities:      
Borrowings from debt 0 0  
Repayment of debt 0 0  
Debt issuance costs 0    
Distributions to noncontrolling interests   0  
Proceeds from issuance of common stock under share-based awards 0 0  
Minimum tax withholding paid on behalf of employees for share-based awards 0 0  
Share repurchases 0 0  
Intercompany (81,969) (108,780)  
Net cash used in financing activities (81,969) (108,780)  
Net decrease in cash and cash equivalents 0 0  
Cash and cash equivalents–beginning of period 0 0 0
Cash and cash equivalents–end of period $ 0 $ 0 $ 0
v3.19.3
Label Element Value
Parent [Member]  
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption $ (7,354,000)
Retained Earnings [Member]  
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption $ (7,354,000)