TRI POINTE GROUP, INC., 10-Q filed on 10/24/2018
Quarterly Report
v3.10.0.1
Document and Entity Information - shares
9 Months Ended
Sep. 30, 2018
Oct. 15, 2018
Document And Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Sep. 30, 2018  
Document Fiscal Year Focus 2018  
Document Fiscal Period Focus Q3  
Trading Symbol TPH  
Entity Registrant Name TRI Pointe Group, Inc.  
Entity Central Index Key 0001561680  
Current Fiscal Year End Date --12-31  
Entity Filer Category Large Accelerated Filer  
Entity Emerging Growth Company false  
Entity Small Business false  
Entity Common Stock, Shares Outstanding   142,202,313
v3.10.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Sep. 30, 2018
Dec. 31, 2017
Assets    
Cash and cash equivalents $ 83,086 $ 282,914
Receivables 85,026 125,600
Real estate inventories 3,377,735 3,105,553
Investments in unconsolidated entities 4,275 5,870
Goodwill and other intangible assets, net 160,560 160,961
Deferred tax assets, net 59,113 76,413
Other assets 107,309 48,070
Total assets 3,877,104 3,805,381
Liabilities    
Accounts payable 83,711 72,870
Accrued expenses and other liabilities 313,194 330,882
Unsecured revolving credit facility 100,000 0
Senior notes, net 1,419,198 1,471,302
Total liabilities 1,916,103 1,875,054
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, 2018 and December 31, 2017, respectively 0 0
Common stock, $0.01 par value, 500,000,000 shares authorized; 142,202,313 and 151,162,999 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively 1,422 1,512
Additional paid-in capital 661,570 793,980
Retained earnings 1,297,405 1,134,230
Total stockholders’ equity 1,960,397 1,929,722
Noncontrolling interests 604 605
Total equity 1,961,001 1,930,327
Total liabilities and equity $ 3,877,104 $ 3,805,381
v3.10.0.1
Consolidated Balance Sheets (Parenthetical) - $ / shares
Sep. 30, 2018
Dec. 31, 2017
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) 142,202,313 151,162,999
Common stock, shares outstanding (shares) 142,202,313 151,162,999
v3.10.0.1
Consolidated Statements of Operations (unaudited) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Dec. 31, 2017
Disaggregation of Revenue [Line Items]          
Total revenues $ 775,071 $ 717,735 $ 2,130,050 $ 1,681,752  
Other operations expense 590 575 1,781 1,726  
Sales and marketing 44,854 33,179 128,881 92,209  
General and administrative 38,109 32,956 111,406 101,293  
Homebuilding income from operations 81,751 116,811 221,014 177,781  
Equity in income (loss) of unconsolidated entities 15 0 (384) 1,646  
Other (expense) income, net (477) 26 (379) 147  
Homebuilding income before income taxes 81,289 116,837 220,251 179,574  
Equity in income of unconsolidated entities 1,986 1,351 4,972 2,911  
Financial services income before income taxes 2,341 1,564 5,735 3,559  
Income before income taxes 83,630 118,401 225,986 183,133  
Provision for income taxes (19,661) (46,112) (55,457) (69,824)  
Net income 63,969 72,289 170,529 113,309 $ 187,551
Net income attributable to noncontrolling interests 0 (25) 0 (138)  
Net income available to common stockholders $ 63,969 $ 72,264 $ 170,529 $ 113,171  
Earnings per share          
Basic (in dollars per share) $ 0.43 $ 0.48 $ 1.13 $ 0.73  
Diluted (in dollars per share) $ 0.43 $ 0.48 $ 1.13 $ 0.73  
Weighted average shares outstanding          
Basic (shares) 147,725,074 151,214,744 150,377,472 155,238,206  
Diluted (shares) 148,318,032 152,129,825 151,482,456 155,936,076  
Home sales          
Disaggregation of Revenue [Line Items]          
Home sales and Land and lot sales revenue $ 771,768 $ 648,638 $ 2,123,135 $ 1,609,458  
Cost of sales 607,053 521,918 1,661,651 1,294,563  
Land and lots          
Disaggregation of Revenue [Line Items]          
Home sales and Land and lot sales revenue 2,225 68,218 3,966 69,661  
Cost of sales 2,234 12,001 4,163 13,299  
Other operations          
Disaggregation of Revenue [Line Items]          
Total revenues 598 584 1,795 1,752  
Homebuilding          
Disaggregation of Revenue [Line Items]          
Total revenues 774,591 717,440 2,128,896 1,680,871  
Financial Services          
Disaggregation of Revenue [Line Items]          
Home sales and Land and lot sales revenue 480 295 1,154 881  
Total revenues 480 295 1,154 881  
Cost of sales $ 125 $ 82 $ 391 $ 233  
v3.10.0.1
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, 2016 $ 1,848,510 $ 1,586 $ 880,822 $ 947,039 $ 1,829,447 $ 19,063
Beginning Balance, shares at Dec. 31, 2016   158,626,229        
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 187,551     187,191 187,191 360
Shares issued under share-based awards 12,291 $ 16 12,275   12,291  
Shares issued under share-based awards, shares   1,531,475        
Minimum tax withholding paid on behalf of employees for restricted stock units (2,896)   (2,896)   (2,896)  
Stock-based compensation expense 15,906   15,906   15,906  
Share repurchases (112,217) $ (90) (112,127)   (112,217)  
Share repurchases, shares   (8,994,705)        
Distributions to noncontrolling interests, net (1,333)         (1,333)
Net effect of consolidations, de-consolidations and other transactions (17,485)         (17,485)
Ending Balance at Dec. 31, 2017 $ 1,930,327 $ 1,512 793,980 1,134,230 1,929,722 605
Ending Balance, shares at Dec. 31, 2017 151,162,999 151,162,999        
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Cumulative effect of accounting change $ (7,354)     (7,354) (7,354)  
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 142,202,313 142,202,313        
v3.10.0.1
Consolidated Statements of Cash Flows (unaudited) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Cash flows from operating activities:    
Net income $ 170,529 $ 113,309
Adjustments to reconcile net income to net cash used in operating activities:    
Depreciation and amortization 19,581 2,567
Equity in income of unconsolidated entities, net (4,588) (4,557)
Deferred income taxes, net 19,729 14,559
Amortization of stock-based compensation 10,955 11,631
Charges for impairments and lot option abandonments 1,500 1,203
Changes in assets and liabilities:    
Real estate inventories (315,825) (401,322)
Receivables 40,612 (3,263)
Other assets (14,486) 3,894
Accounts payable 10,841 (6,214)
Accrued expenses and other liabilities (17,716) 52,640
Returns on investments in unconsolidated entities, net 6,778 4,897
Net cash used in operating activities (72,090) (210,656)
Cash flows from investing activities:    
Purchases of property and equipment (24,547) (2,212)
Proceeds from sale of property and equipment 8 6
Investments in unconsolidated entities (1,812) (934)
Net cash used in investing activities (26,351) (3,140)
Cash flows from financing activities:    
Borrowings from debt 100,000 500,000
Repayment of debt (57,931) (213,726)
Debt issuance costs 0 (5,932)
Distributions to noncontrolling interests (1) (987)
Proceeds from issuance of common stock under share-based awards 1,943 3,293
Minimum tax withholding paid on behalf of employees for share-based awards (6,049) (2,896)
Share repurchases (139,349) (112,217)
Net cash (used in) provided by financing activities (101,387) 167,535
Net decrease in cash and cash equivalents (199,828) (46,261)
Cash and cash equivalents - beginning of period 282,914 208,657
Cash and cash equivalents - end of period $ 83,086 $ 162,396
v3.10.0.1
Organization, Basis of Presentation and Summary of Significant Accounting Policies
9 Months Ended
Sep. 30, 2018
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 Group is engaged in the design, construction and sale of innovative single-family attached and detached homes through its portfolio of six quality brands across eight states, including Maracay in Arizona, Pardee Homes in California and Nevada, Quadrant Homes in Washington, Trendmaker Homes in Texas, TRI Pointe Homes in California and Colorado and Winchester Homes in Maryland and Virginia.
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, 2017. 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, 2018 are not necessarily indicative of the results to be expected for the full year 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, 2018 and December 31, 2017 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.
Significant Accounting Policies Update
Revenue Recognition
In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Codified as “ASC 606”). ASC 606 supersedes the revenue-recognition requirements in ASC Topic 605, Revenue Recognition, most industry-specific guidance throughout the industry topics of the accounting standards codification, and some cost guidance related to construction-type and production-type contracts. The core principle of ASC 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: identify the contract(s) with a customer; identify the performance obligations in the contract; determine the transaction price; allocate the transaction price to the performance obligations in the contract; and recognize revenue when (or as) the entity satisfies a performance obligation. We have adopted and applied this updated revenue recognition policy as of January 1, 2018. See Adoption of New Accounting Standards below.
The majority of our revenue is related to fixed-price contracts to deliver completed homes to homebuyers, and to a much lesser degree, to deliver land or lots to other homebuilders or real estate developers. We generally deliver completed homes to homebuyers and land and lots to other homebuilders or real estate developers when all closing conditions are met, including the passage of title and the receipt of consideration, and the collection of associated receivables, if any, is reasonably assured. When it is determined that there are uncompleted performance obligations, the transaction price and the related profit for those uncompleted performance obligations are deferred for recognition in future periods based on the principles of ASC 606. The most common examples of uncompleted performance obligations are unfinished pools or outdoor landscaping features that are unable to be completed due to weather or other circumstances.
Following the adoption of ASC 606, the timing of revenue recognition for all of our contracts remained materially consistent with our historical revenue recognition policy due to the nature of our revenue generating activities, with the most common difference under ASC 606 relating to the deferral of revenue due to these uncompleted performance obligations at the time we deliver new homes to our homebuyers.
When we enter into a contract with a homebuyer, we sometimes receive a nonrefundable deposit that is recognized as revenue under circumstances in which a contract is canceled by the homebuyer. These amounts are recognized as home sales revenue at the time a contract is canceled by the homebuyer. We have not experienced significant contract modifications impacting the timing of revenue recognition under ASC 606, nor will we be required to use estimates in the application of the core revenue recognition principles.
Real Estate Inventories and Cost of Sales
ASC 606 includes Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers (“Subtopic 340-40”), which requires the deferral of incremental costs of obtaining a contract with a customer. The adoption of Subtopic 340-40 impacts the timing of recognition and classification in our consolidated financial statements of certain sales office, model and other marketing related costs that we incur to obtain sales contracts from our customers. For example, we historically capitalized to inventory and amortized through cost of home sales various sales office, model and other marketing related costs with each home delivered in a community. Under Subtopic 340-40, these costs are expensed when incurred or capitalized to other assets and amortized to selling expense.
Recently Issued Accounting Standards Not Yet Adopted
In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Codified as “ASC 842”), which requires an entity to recognize assets and liabilities on the balance sheet for the rights and obligations created by leases with durations of greater than 12 months, but record expenses on the statements of operations in a manner similar to current accounting. The guidance also requires more disclosures about leases in the notes to consolidated financial statements. ASC 842 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and, at that time, we will adopt the new standard using a modified retrospective approach. We are continuing to evaluate the impact that the adoption of ASC 842 may have on our consolidated financial statements and disclosures. While the adoption of ASC 842 could have a material impact on our consolidated balance sheet, we do not expect that there will be a material impact to our consolidated statements of operations or cash flows.
In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles - Goodwill 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 ASU 2017-04 will have a material impact on our financial statements.
Adoption of New Accounting Standards
In August 2016, the FASB issued Accounting Standards Update No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. We adopted ASU 2016-15 on January 1, 2018 and our adoption did not have a material impact on our consolidated financial statements.
On January 1, 2018, we adopted ASC 606 using the modified retrospective approach applying the method of presenting the standard of ASC 606 to only those contracts not considered completed under legacy GAAP. As a result of this application of ASC 606, no prior period results have been recast and the standard has been applied prospectively as of January 1, 2018. The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet resulting from the adoption of ASC 606 was as follows (in thousands):
 
 
Balance at December 31, 2017
 
Adjustments due to ASC 606
 
Balance at January 1, 2018
Assets
 
 
 
 
 
 
 Real estate inventories
 
$
3,105,553

 
$
(49,317
)
 
$
3,056,236

 Deferred income tax asset
 
76,413

 
2,429

 
78,842

 Other assets
 
48,070

 
39,534

 
87,604

Equity
 
 
 
 
 
 
 Retained earnings
 
1,134,230

 
(7,354
)
 
1,126,876


Our cumulative adjustment to retained earnings on January 1, 2018 related primarily to the impact of Subtopic 340-40 and the timing of recognition and classification in our consolidated financial statements of certain sales office, model and other marketing related costs that we incur to obtain sales contracts from our customers. See Significant Accounting Policies Update above.
In accordance with ASC 606 disclosure requirements, the impact of adopting ASC 606 on our consolidated statements of operations and balance sheets for the three and nine months ended September 30, 2018 were as follows (in thousands, except per share amounts):
 
Three Months Ended September 30, 2018
 
Nine Months Ended September 30, 2018
 
As Reported
 
Balances Without Adoption of ASC 606
 
Effect of Change Higher/(Lower)
 
As Reported
 
Balances Without Adoption of ASC 606
 
Effect of Change Higher/(Lower)
Statements of Operations
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
 
 
 
 Home sales
$
771,768

 
$
771,784

 
$
(16
)
 
$
2,123,135

 
$
2,123,387

 
$
(252
)
 
 
 
 
 
 
 
 
 
 
 
 
Costs and expenses
 
 
 
 
 
 
 
 
 
 
 
 Cost of home sales
607,053

 
617,483

 
(10,430
)
 
1,661,651

 
1,689,324

 
(27,673
)
 Sales and marketing
44,854

 
38,506

 
6,348

 
128,881

 
109,346

 
19,535

 Provision for income taxes
(19,661
)
 
(18,683
)
 
978

 
(55,457
)
 
(53,518
)
 
1,939

 Net income
63,969

 
60,881

 
3,088

 
170,529

 
164,582

 
5,947

Diluted earnings per share
$
0.43

 
$
0.41

 
$
0.02

 
$
1.13

 
$
1.09

 
$
0.04

 
 
 
 
 
 
 
 
 
 
 
 
 
As of September 30, 2018
 
 
 
 
 
 
 
As Reported
 
Balances Without Adoption of ASC 606
 
Effect of Change Higher/(Lower)
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 Real estate inventories
$
3,377,735

 
$
3,424,468

 
$
(46,733
)
 
 
 
 
 
 
Deferred tax assets, net
59,113

 
54,750

 
4,363

 
 
 
 
 
 
 Other assets
107,309

 
63,874

 
43,435

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 Accrued expenses and other liabilities
313,194

 
313,442

 
(248
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
 
 
 Retained earnings
1,297,405

 
1,296,092

 
1,313

 
 
 
 
 
 

Contracts with Customers
In consideration of the appropriate revenue recognition for our contracts with customers, we first assessed our ordinary operations in order to capture all revenue transactions with a counter-party appropriately considered a customer. Historically, our ordinary homebuilding revenue generating activities have included contracts with homebuyers to deliver completed homes and to a much lesser extent, contracts with other homebuilders or real estate developers to deliver land or lots in exchange for consideration. The majority of our homebuilding contracts with customers typically include a single performance obligation, which is the transfer of control of the real estate property when all closing conditions are met.
In addition to our core homebuilding operations, we undertake service operations with customers in the form of our financial services reportable segment (“TRI Pointe Solutions”), which is comprised of our mortgage financing operations, title services operations and property and casualty insurance agency operations.  Our mortgage financing operation (“TRI Pointe Connect”) can act as a preferred mortgage broker to our homebuyers in all of the markets in which we operate.  TRI Pointe Connect was formed as a joint venture with an established mortgage lender and is accounted for under the equity method of accounting.  Our title services operation (“TRI Pointe Assurance”) provides title examinations for our homebuyers in Texas, Maryland 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. Our property and casualty insurance agency operations (“TRI Pointe Advantage”) is a wholly owned subsidiary of TRI Pointe that provides property and casualty insurance agency services that help facilitate the closing process in all of the markets in which we operate.
We do not currently have any long-term contracts with customers. ASC 606 provides certain practical expedients that limit some of the accounting treatments and disclosure requirements existing under this accounting standard. We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less.
Disaggregation of Revenues
We generate revenues from a mix of homebuilding operations and financial services operations. Due to the nature of our revenue generating activities, the disaggregated revenue reported on our consolidated statement of operations, in conjunction with the revenues reported in our segment disclosure, is deemed sufficient to report revenue from contracts with customers in accordance with the disaggregation disclosure requirements of ASC 606. We report total revenues in Note 2, Segment Information, which is fully comprised of our revenues from contracts with customers. While the total homebuilding revenues by segment include a mix of home sales revenue, land and lot sales revenue and other operations revenue, all material revenue amounts outside of home sales revenue are attributed to their respective homebuilding segments in the discussion below. Our consideration of disaggregated revenue consisted of a variety of facts and circumstances pertaining to our contracts with customers. These considerations included the nature, amounts, timing and other characteristics and economic factors present within each revenue line item appearing on our consolidated statement of operations. See below for further commentary regarding each of our revenue streams from contracts with customers.
Home sales revenue
We generate the majority of our total revenue from home sales, which consists of our core business operation of building and delivering completed homes to homebuyers. 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 is 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 other homebuilding 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 840, 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 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.  Based on our percentage stake in this joint venture, we record a percentage of income earned by TRI Pointe Connect. Revenue by TRI Pointe Connect is recognized in the period in which the home sales transactions are consummated. TRI Pointe Connect does not have a history of uncollectable amounts from these operations. TRI Pointe Connect activity appears as equity in income of unconsolidated entities under the Financial Services section of our consolidated statements of operations.
Title services operations
TRI Pointe Assurance provides title examinations for our homebuyers in Texas, Maryland 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. At the time of the consummation of the home sales transactions, we recognize a percentage of revenue captured by First American Title Insurance Company. We do not have a history of uncollectable amounts from these operations. 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. These operations began in February, 2018 and have not generated a material amount of revenue.  We expect revenue from these operations to increase as customers use these services to procure homeowners insurance, with further revenue potential as customers renew their insurance coverages beyond the initial coverage periods.  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.
v3.10.0.1
Segment Information
9 Months Ended
Sep. 30, 2018
Segment Reporting [Abstract]  
Segment Information
Segment Information
We operate two principal businesses: homebuilding and financial services.
Our homebuilding operations consist of six homebuilding brands that acquire and develop land and construct and sell single-family detached and attached homes. In accordance with ASC Topic 280, Segment Reporting, in determining the most appropriate reportable segments, we considered similar economic and other characteristics, including product types, average selling prices, gross profits, production processes, suppliers, subcontractors, regulatory environments, land acquisition results, and underlying demand and supply. Based upon these factors, our homebuilding operations are comprised of the following six reportable segments: Maracay, consisting of operations in Arizona; Pardee Homes, consisting of operations in California and Nevada; Quadrant Homes, consisting of operations in Washington; Trendmaker Homes, consisting of operations in Texas; TRI Pointe Homes, consisting of operations in California and Colorado; 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 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,
 
2018
 
2017
 
2018
 
2017
Revenues
 
 
 
 
 
 
 
Maracay
$
66,730

 
$
78,167

 
$
182,134

 
$
204,981

Pardee Homes
224,452

 
231,376

 
648,208

 
495,452

Quadrant Homes
66,174

 
54,781

 
193,481

 
135,599

Trendmaker Homes
78,606

 
53,787

 
197,730

 
171,615

TRI Pointe Homes
264,499

 
239,110

 
710,561

 
524,159

Winchester Homes
74,130

 
60,219

 
196,782

 
149,065

Total homebuilding revenues
774,591

 
717,440

 
2,128,896

 
1,680,871

Financial services
480

 
295

 
1,154

 
881

Total
$
775,071

 
$
717,735

 
$
2,130,050

 
$
1,681,752

 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
 
 
 
 
 
 
Maracay
$
6,260

 
$
6,431

 
$
15,665

 
$
14,429

Pardee Homes
36,087

 
82,407

 
122,195

 
128,570

Quadrant Homes
9,269

 
6,251

 
25,206

 
13,104

Trendmaker Homes
7,379

 
3,233

 
13,977

 
9,657

TRI Pointe Homes
30,945

 
24,382

 
69,651

 
39,779

Winchester Homes
4,122

 
4,284

 
9,908

 
6,903

Corporate
(12,773
)
 
(10,151
)
 
(36,351
)
 
(32,868
)
Total homebuilding income before income taxes
81,289

 
116,837

 
220,251

 
179,574

Financial services
2,341

 
1,564

 
5,735

 
3,559

Total
$
83,630

 
$
118,401

 
$
225,986

 
$
183,133

 
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, 2018
 
December 31, 2017
Real estate inventories
 
 
 
Maracay
$
308,887

 
$
243,883

Pardee Homes
1,361,960

 
1,245,659

Quadrant Homes
312,645

 
257,887

Trendmaker Homes
223,576

 
204,926

TRI Pointe Homes
872,137

 
855,727

Winchester Homes
298,530

 
297,471

Total
$
3,377,735

 
$
3,105,553

 
 
 
 
Total assets
 
 
 
Maracay
$
330,998

 
$
268,866

Pardee Homes
1,450,432

 
1,346,296

Quadrant Homes
336,665

 
312,803

Trendmaker Homes
250,728

 
224,995

TRI Pointe Homes
1,069,085

 
1,062,920

Winchester Homes
324,668

 
313,921

Corporate
97,651

 
262,740

Total homebuilding assets
3,860,227

 
3,792,541

Financial services
16,877

 
12,840

Total
$
3,877,104

 
$
3,805,381

v3.10.0.1
Earnings Per Share
9 Months Ended
Sep. 30, 2018
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,
 
2018
 
2017
 
2018
 
2017
Numerator:
 

 
 

 
 

 
 

Net income available to common stockholders
$
63,969

 
$
72,264

 
$
170,529

 
$
113,171

Denominator:
 

 
 

 
 

 
 

Basic weighted-average shares outstanding
147,725,074

 
151,214,744

 
150,377,472

 
155,238,206

Effect of dilutive shares:
 

 
 
 
 

 
 

Stock options and unvested restricted stock units
592,958

 
915,081

 
1,104,984

 
697,870

Diluted weighted-average shares outstanding
148,318,032

 
152,129,825

 
151,482,456

 
155,936,076

Earnings per share
 

 
 

 
 

 
 

Basic
$
0.43

 
$
0.48

 
$
1.13

 
$
0.73

Diluted
$
0.43

 
$
0.48

 
$
1.13

 
$
0.73

Antidilutive stock options and unvested restricted stock units not included in diluted earnings per share
2,008,612

 
3,406,498

 
1,280,500

 
3,710,674

v3.10.0.1
Receivables
9 Months Ended
Sep. 30, 2018
Receivables [Abstract]  
Receivables
Receivables
Receivables consisted of the following (in thousands):
 
September 30, 2018
 
December 31, 2017
Escrow proceeds and other accounts receivable, net
$
49,738

 
$
89,783

Warranty insurance receivable (Note 13)
35,288

 
35,817

Total receivables
$
85,026

 
$
125,600



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 $540,000 and $330,000 as of September 30, 2018 and December 31, 2017, respectively.
v3.10.0.1
Real Estate Inventories
9 Months Ended
Sep. 30, 2018
Inventory Disclosure [Abstract]  
Real Estate Inventories
Real Estate Inventories
Real estate inventories consisted of the following (in thousands):
 
September 30, 2018
 
December 31, 2017
Real estate inventories owned:
 
 
 
Homes completed or under construction
$
1,190,986

 
$
793,685

Land under development
1,663,818

 
1,934,556

Land held for future development
201,108

 
138,651

Model homes
258,401

 
211,658

Total real estate inventories owned
3,314,313

 
3,078,550

Real estate inventories not owned:
 
 
 
Land purchase and land option deposits
63,422

 
27,003

Total real estate inventories not owned
63,422

 
27,003

Total real estate inventories
$
3,377,735

 
$
3,105,553


 
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 real estate inventories owned balance was impacted by our one-time cumulative adjustment entry resulting from the adoption of ASC 606. As a result of our cumulative adjustment, the December 31, 2017 balance decreased by $49.3 million on January 1, 2018. For further details, see Note 1, Organization, Basis of Presentation and Summary of Significant Accounting Policies.
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,
 
2018
 
2017
 
2018
 
2017
Interest incurred
$
23,942

 
$
22,865

 
$
67,089

 
$
61,669

Interest capitalized
(23,942
)
 
(22,865
)
 
(67,089
)
 
(61,669
)
Interest expensed
$

 
$

 
$

 
$

Capitalized interest in beginning inventory
$
185,589

 
$
173,261

 
$
176,348

 
$
157,329

Interest capitalized as a cost of inventory
23,942

 
22,865

 
67,089

 
61,669

Interest previously capitalized as a cost of
inventory, included in cost of sales
(20,293
)
 
(15,899
)
 
(54,199
)
 
(38,771
)
Capitalized interest in ending inventory
$
189,238

 
$
180,227

 
$
189,238

 
$
180,227


 
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,
 
2018
 
2017
 
2018
 
2017
Real estate inventory impairments
$

 
$

 
$

 
$
267

Land and lot option abandonments and pre-acquisition charges
643

 
374

 
1,500

 
936

Total
$
643

 
$
374

 
$
1,500

 
$
1,203


 
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.  
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.
v3.10.0.1
Investments in Unconsolidated Entities
9 Months Ended
Sep. 30, 2018
Equity Method Investments and Joint Ventures [Abstract]  
Investments in Unconsolidated Entities
Investments in Unconsolidated Entities
As of September 30, 2018, 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 4% to 65%, depending on the investment, with no controlling interest held in any of these investments.
Investments Held
Our cumulative investment in entities accounted for on the equity method, including our share of earnings and losses, consisted of the following (in thousands):
 
September 30, 2018
 
December 31, 2017
Limited liability company interests
$
1,563

 
$
2,687

General partnership interests
2,712

 
3,183

Total
$
4,275

 
$
5,870


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, 2018
 
December 31, 2017
Assets
 
 
 
Cash
$
11,627

 
$
11,678

Receivables
3,990

 
6,564

Real estate inventories
98,961

 
99,997

Other assets
825

 
936

Total assets
$
115,403

 
$
119,175

Liabilities and equity
 
 
 
Accounts payable and other liabilities
$
9,116

 
$
12,208

Company’s equity
4,275

 
5,870

Outside interests' equity
102,012

 
101,097

Total liabilities and equity
$
115,403

 
$
119,175

 
Results of operations from unconsolidated entities (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Net sales
$
6,185

 
$
5,404

 
$
19,900

 
$
15,722

Other operating expense
(2,951
)
 
(3,532
)
 
(13,510
)
 
(9,714
)
Other income
1

 
36

 
85

 
60

Net income
$
3,235

 
$
1,908

 
$
6,475

 
$
6,068

Company’s equity in income of unconsolidated entities
$
2,001

 
$
1,351

 
$
4,588

 
$
4,557

v3.10.0.1
Variable Interest Entities
9 Months Ended
Sep. 30, 2018
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, 2018
 
December 31, 2017
 
Deposits
 
Remaining
Purchase
Price
 
Consolidated
Inventory
Held by VIEs
 
Deposits
 
Remaining
Purchase
Price
 
Consolidated
Inventory
Held by VIEs
Consolidated VIEs
$

 
$

 
$

 
$

 
$

 
$

Unconsolidated VIEs
35,348

 
229,219

 
N/A

 
3,418

 
112,590

 
N/A

Other land option agreements
28,074

 
503,583

 
N/A

 
23,585

 
269,349

 
N/A

Total
$
63,422

 
$
732,802

 
$

 
$
27,003

 
$
381,939

 
$


 
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 $8.9 million and $4.5 million as of September 30, 2018 and December 31, 2017, respectively. These pre-acquisition costs were included in real estate inventories as land under development on our consolidated balance sheets.
v3.10.0.1
Goodwill and Other Intangible Assets
9 Months Ended
Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
As of September 30, 2018 and December 31, 2017, $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, 2018, 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 (“WRECO”) in 2014, which has an indefinite useful life.
Goodwill and other intangible assets consisted of the following (in thousands):
 
September 30, 2018
 
December 31, 2017
 
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

 
(6,723
)
 
21,256

 
27,979

 
(6,322
)
 
21,657

Total
$
167,283

 
$
(6,723
)
 
$
160,560

 
$
167,283

 
$
(6,322
)
 
$
160,961


 
The remaining useful life of our amortizing intangible asset related to the Maracay trade name was 7.4 and 8.2 years as of September 30, 2018 and December 31, 2017, respectively. The net carrying amount related to this intangible asset was $4.0 million and $4.4 million as of September 30, 2018 and December 31, 2017, respectively. Amortization expense related to this intangible asset was $134,000 for each of the three-month periods ended September 30, 2018 and 2017, respectively, and $401,000 for each of the nine-month periods ended September 30, 2018 and 2017, 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 2018, the next four years and thereafter is (in thousands):
Remainder of 2018
$
133

2019
534

2020
534

2021
534

2022
534

Thereafter
1,687

Total
$
3,956

v3.10.0.1
Other Assets
9 Months Ended
Sep. 30, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Other Assets
Other Assets
Other assets consisted of the following (in thousands):
 
September 30, 2018
 
December 31, 2017
Prepaid expenses
$
27,043

 
$
13,040

Refundable fees and other deposits
16,747

 
16,012

Development rights, held for future use or sale
1,741

 
2,569

Deferred loan costs - unsecured revolving credit facility
2,675

 
3,427

Operating properties and equipment, net
56,259

 
10,528

Other
2,844

 
2,494

Total
$
107,309

 
$
48,070



    Operating properties and equipment, net was impacted by our one-time cumulative adjustment resulting from the adoption of ASC 606. As a result of our cumulative adjustment, the December 31, 2017 balance increased by $39.5 million on January 1, 2018. For further details, see Note 1, Organization, Basis of Presentation and Summary of Significant Accounting Policies.
v3.10.0.1
Accrued Expenses and Other Liabilities
9 Months Ended
Sep. 30, 2018
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, 2018
 
December 31, 2017
Accrued payroll and related costs
$
28,856

 
$
36,863

Warranty reserves (Note 13)
73,995

 
69,373

Estimated cost for completion of real estate inventories
102,225

 
105,864

Customer deposits
26,811

 
19,568

Income tax liability to Weyerhaeuser
8,321

 
7,706

Accrued income taxes payable

 
30,672

Liability for uncertain tax positions (Note 15)
1,458

 
1,458

Accrued interest
23,146

 
11,014

Accrued insurance expense
5,444

 
1,187

Other tax liability
24,647

 
33,671

Other
18,291

 
13,506

Total
$
313,194

 
$
330,882

v3.10.0.1
Senior Notes and Unsecured Revolving Credit Facility
9 Months Ended
Sep. 30, 2018
Debt Disclosure [Abstract]  
Senior Notes and Unsecured Revolving Credit Facility
Senior Notes and Unsecured Revolving Credit Facility
Senior Notes
The Company's outstanding senior notes (together, the "Senior Notes") consisted of the following (in thousands):
 
 
September 30, 2018
 
December 31, 2017
4.375% Senior Notes due June 15, 2019
$
392,069

 
$
450,000

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
(22,871
)
 
(28,698
)
Total
$
1,419,198

 
$
1,471,302


 
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 of each year until maturity, beginning on December 1, 2017.
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 100% owned subsidiary TRI Pointe Homes, Inc. ("TRI Pointe Homes") are co-issuers of the 4.375% Senior Notes due 2019 (the "2019 Notes") and the 5.875% Senior Notes due 2024 (the "2024 Notes"). The 2019 Notes were issued at 98.89% of their aggregate principal amount and the 2024 Notes were issued at 98.15% of their aggregate principal amount. The net proceeds from the offering were $861.3 million, after debt issuance costs and discounts. The 2019 Notes and 2024 Notes mature on June 15, 2019 and June 15, 2024, respectively. Interest is payable semiannually in arrears on June 15 and December 15. During the three and nine months ended September 30, 2018, respectively, we repurchased and cancelled an aggregate principal amount of $36.2 million and $57.9 million of the 2019 Notes.
As of September 30, 2018, there was $15.8 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 $21.9 million and $10.6 million as of September 30, 2018 and December 31, 2017, respectively.
Unsecured Revolving Credit Facility
On June 20, 2017, the Company modified its existing unsecured revolving credit facility (the “Credit Facility”) to extend the maturity date by two years to May 18, 2021, while decreasing the total commitments under the Credit Facility to $600 million from $625 million. In addition, the Credit Facility was modified to give the Company the option to make offers to the lenders to extend the maturity date of the Credit Facility in twelve-month increments, subject to the satisfaction of certain conditions. The Credit Facility contains a sublimit of $75 million for letters of credit. The Company may borrow under the Credit Facility in the ordinary course of business to fund its operations, including its land acquisition, land development and homebuilding activities. Borrowings under the Credit Facility will be governed by, among other things, a borrowing base. Interest rates on borrowings under the Credit Facility will be based on either a daily Eurocurrency base rate or a Eurocurrency rate, in either case, plus a spread ranging from 1.25% to 2.00%, depending on the Company’s leverage ratio. As of September 30, 2018, we had $100 million outstanding under the Credit Facility and $486.8 million of availability after considering the borrowing base provisions and outstanding letters of credit.  As of September 30, 2018, there was $2.7 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 life of the Credit Facility, maturing on May 18, 2021.  Accrued interest, including loan commitment fees, related to the Credit Facility was $575,000 and $426,000 as of September 30, 2018 and December 31, 2017, respectively.
At September 30, 2018 and December 31, 2017, we had outstanding letters of credit of $13.2 million and $7.7 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, 2018 and 2017, the Company incurred interest of $23.9 million and $22.9 million, respectively, related to all debt during the period.  Included in interest incurred was amortization of deferred financing and Senior Note discount costs of $2.0 million for each of the three-month periods ended September 30, 2018 and 2017, respectively. During the nine-month periods ended September 30, 2018 and 2017, the Company incurred interest of $67.1 million and $61.7 million, respectively, related to all debt during the period. Included in interest incurred was amortization of deferred financing and Senior Notes discount costs of $6.1 million and $5.6 million for the nine months ended September 30, 2018 and 2017, respectively. Accrued interest related to all outstanding debt at September 30, 2018 and December 31, 2017 was $23.1 million and $11.0 million, respectively. 
Covenant Requirements
The Senior Notes contain covenants that restrict our ability to, among other things, create liens or other encumbrances, enter into sale and leaseback transactions, or merge or sell all or substantially all of our assets. These limitations are subject to a number of qualifications and exceptions.
Under the Credit Facility, the Company is required to comply with certain financial covenants, including but not limited to (i) a minimum consolidated tangible net worth; (ii) a maximum total leverage ratio; and (iii) a minimum interest coverage ratio.
The Company was in compliance with all applicable financial covenants as of September 30, 2018 and December 31, 2017.
v3.10.0.1
Fair Value Disclosures
9 Months Ended
Sep. 30, 2018
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, 2018 and December 31, 2017, related to our financial instruments, measured at fair value on a recurring basis, is set forth below (in thousands):
 
 
 
September 30, 2018
 
December 31, 2017
 
Hierarchy
 
Book Value
 
Fair Value
 
Book Value
 
Fair Value
Senior Notes (1)
Level 2
 
$
1,435,036

 
$
1,406,819

 
$
1,491,229

 
$
1,552,335

 __________
(1) 
The book value of the Senior Notes is net of discounts, excluding deferred loan costs of $15.8 million and $19.9 million as of September 30, 2018 and December 31, 2017, respectively. The estimated fair value of the Senior Notes at September 30, 2018 and December 31, 2017 is based on quoted market prices.

At September 30, 2018 and December 31, 2017, the carrying value of cash and cash equivalents, receivables and the Credit Facility 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. The following table presents impairment charges and the remaining net fair value for nonfinancial assets that were measured during the periods presented (in thousands):
 
Nine Months Ended September 30, 2018
 
Year Ended December 31, 2017
 
Impairment
Charge
 
Fair Value
Net of
Impairment
 
Impairment
Charge
 
Fair Value
Net of
Impairment
Real estate inventories (1)
$

 
$

 
$
854

 
$
12,950


 __________
(1) Fair value of real estate inventories, net of impairment charges represents only those assets whose carrying values were adjusted to fair value in the respective periods presented. The fair value of these real estate inventories impaired was determined based on an analysis of future undiscounted net cash flows.  In the case of lots for sale, fair value was determined based on recent land and lot sales for similar assets.
v3.10.0.1
Commitments and Contingencies
9 Months Ended
Sep. 30, 2018
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 reserves as of September 30, 2018 or December 31, 2017, respectively.
On April 3, 2017, Pardee Homes was named as a defendant in a lawsuit filed in San Diego County Superior Court by Scripps Health (“Scripps”) related to the April 1989 sale by Pardee Homes of real property located in Carmel Valley, California to Scripps pursuant to a purchase agreement dated December 18, 1987 (as amended, the “Purchase Agreement”). In March 2003, Scripps contacted Pardee Homes and alleged Pardee Homes had breached a covenant in the Purchase Agreement by failing to record a restriction against the development of the surrounding property then owned by Pardee Homes for medical office use. In November 2003, the parties entered into a tolling agreement, pursuant to which the parties agreed to toll any applicable statutes of limitation from November 3, 2003 until the expiration of the agreement. The tolling agreement did not revive any cause of action already time barred by a statute of limitation as of November 3, 2003. The tolling agreement was terminated as of February 21, 2017. Pardee Homes became an indirect, wholly owned subsidiary of TRI Pointe on July 7, 2014 in connection with TRI Pointe’s acquisition of WRECO.
We intend to vigorously defend the action, and intend to continue challenging Scripps' claims. On May 18, 2018, Pardee Homes filed a motion for summary judgment in the action, which had a rescheduled hearing date of September 28, 2018. At the hearing, the court denied the motion for summary judgment. On October 22, 2018, Pardee Homes filed with an appellate court a writ of mandate appealing the trial court's denial of the motion for summary judgment. Although we cannot predict or determine the timing or final outcome of the lawsuit or the effect that any adverse findings or determinations may have on us, we believe Scripps has no actionable claims against Pardee Homes and that this dispute will not have a material impact on our business, liquidity, financial condition and results of operations. An unfavorable determination could result in the payment by us of monetary damages, which could be significant. The complaint does not indicate the amount of relief sought, and an estimate of possible loss or range of loss cannot presently be made with respect to this matter. No reserve with respect to this matter has been recorded on our consolidated financial statements.
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 $35.3 million and $35.8 million as of September 30, 2018 and December 31, 2017, respectively. Warranty insurance receivables are recorded in receivables on the accompanying consolidated balance sheet.
Warranty reserve activity consisted of the following (in thousands):
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Warranty reserves, beginning of period
$
72,342

 
$
80,128

 
$
69,373

 
$
83,135

Warranty reserves accrued
6,257

 
4,448

 
17,669

 
10,122

Adjustments to pre-existing reserves

 
400

 

 
1,021

Warranty expenditures
(4,604
)
 
(4,054
)
 
(13,047
)
 
(13,356
)
Warranty reserves, end of period
$
73,995

 
$
80,922

 
$
73,995

 
$
80,922


 
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, 2018 and December 31, 2017, the Company had outstanding surety bonds totaling $683.5 million and $627.1 million, respectively. As of September 30, 2018 and December 31, 2017, our estimated cost to complete obligations related to these surety bonds was $398.8 million and $537.4 million, respectively.
v3.10.0.1
Stock-Based Compensation
9 Months Ended
Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [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 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, 2018, there were 6,453,896 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,
 
2018
 
2017
 
2018
 
2017
Total stock-based compensation
$
3,765

 
$
3,887

 
$
10,955

 
$
11,631


 
Stock-based compensation is charged to general and administrative expense on the accompanying consolidated statements of operations.  As of September 30, 2018, total unrecognized stock-based compensation related to all stock-based awards was $20.7 million and the weighted average term over which the expense was expected to be recognized was 1.8 years.
Summary of Stock Option Activity
The following table presents a summary of stock option awards for the nine months ended September 30, 2018:
 
Options
 
Weighted
Average
Exercise
Price
Per Share
 
Weighted
Average
Remaining
Contractual
Life
 
Aggregate
Intrinsic
Value
(in thousands)
Options outstanding at December 31, 2017
1,154,658

 
$
14.16

 
4.9

 
$
4,350

Granted

 

 

 

Exercised
(171,747
)
 
$
12.05

 

 

Forfeited
(29,006
)
 
$
12.73

 

 

Options outstanding at September 30, 2018
953,905

 
$
14.58

 
4.4

 
$
510

Options exercisable at September 30, 2018
953,905

 
$
14.58

 
4.4

 
$
510


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

Summary of Restricted Stock Unit Activity
The following table presents a summary of restricted stock units (“RSUs”) for the nine months ended September 30, 2018:
 
Restricted
Stock
Units
 
Weighted
Average
Grant Date
Fair Value
Per Share
 
Aggregate
Intrinsic
Value
(in thousands)
Nonvested RSUs at December 31, 2017
4,307,592

 
$
9.80

 
$
77,192

Granted
1,131,231

 
$
15.77

 

Vested
(1,102,727
)
 
$
12.47

 

Forfeited
(993,133
)
 
$
9.40

 

Nonvested RSUs at September 30, 2018
3,342,963

 
$
11.05

 
$
41,453


 
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 vest in their entirety on the day immediately prior to the Company's 2019 Annual Meeting of Stockholders. 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 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 May 7, 2018 and February 22, 2018, the Company granted an aggregate of 4,258 and 633,107, respectively, of time-vested 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 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 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.

On February 15, 2018, the Compensation Committee of our Board of Directors certified the performance achieved with respect to performance-based RSUs granted to the Company’s Chief Executive Officer, President, and Chief Financial Officer in 2015 that resulted in the issuance of 197,898 shares of our common stock under the 2013 Incentive Plan. The vesting of these performance-based RSUs are included in the table above. RSUs that were forfeited, as reflected in the table above, during the nine months ended September 30, 2018 included performance-based RSUs and time-based RSUs that were forfeited for no consideration.
On February 27, 2017, the Company granted an aggregate of 990,279 time-vested 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 February 27, 2017 was measured using a price of $12.10 per share, which was the closing stock price on the date of grant. Each award was expensed on a straight-line basis over the vesting period.

On February 27, 2017, the Company granted 257,851, 247,933 and 119,008 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, 2017 to December 31, 2019. The fair value of the performance-based RSUs related to the TSR metric was determined to be $6.16 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 $12.10 per share, which was the closing stock price on the date of grant. Each award will be expensed over the requisite service period.

On May 30, 2017, the Company granted an aggregate of 55,865 RSUs to the non-employee members of its board of directors. These RSUs vested in their entirety on the day immediately prior to the Company's 2018 Annual Meeting of Stockholders. The fair value of each RSU granted on May 30, 2017 was measured using a price of $12.53 per share, which was the closing stock price on the date of grant. Each award was expensed on a straight-line basis over the vesting period.
As RSUs vest for employees, a portion of the shares awarded is generally withheld to cover employee tax withholdings. As a result, the number of RSUs vested and the number of shares of TRI Pointe common stock issued will differ.
v3.10.0.1
Income Taxes
9 Months Ended
Sep. 30, 2018
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 $59.1 million and $76.4 million as of September 30, 2018 and December 31, 2017, respectively.  We had a valuation allowance related to those net deferred tax assets of $3.5 million as of both September 30, 2018 and December 31, 2017.  The Company will continue to evaluate both positive and negative evidence in determining the need for a valuation allowance against its deferred tax assets. Changes in positive and negative evidence, including differences between the Company's future operating results and the estimates utilized in the determination of the valuation allowance, could result in changes in the Company's estimate of the valuation allowance against its deferred tax assets. The accounting for deferred taxes is based upon estimates of future results. Differences between the anticipated and actual outcomes of these future results could have a material impact on the Company's consolidated results of operations or financial position. Also, changes in existing federal and state tax laws and tax rates could affect future tax results and the valuation allowance against the Company's deferred tax assets.
TRI Pointe has certain liabilities with Weyerhaeuser Company (“Weyerhaeuser”) related to a tax sharing agreement.  As of September 30, 2018 and December 31, 2017, we had an income tax liability to Weyerhaeuser of $8.3 million and $7.7 million, respectively. The income tax liability to Weyerhaeuser is recorded in accrued expenses and other liabilities on the accompanying consolidated balance sheets.
Our provision for income taxes totaled $19.7 million and $46.1 million for the three months ended September 30, 2018 and 2017, respectively. Our provision for income taxes totaled $55.5 million and $69.8 million for the nine months ended September 30, 2018 and 2017, respectively. The Company classifies any interest and penalties related to income taxes assessed by jurisdiction as part of income tax expense.  The Company had $1.5 million of uncertain tax positions recorded as of both September 30, 2018 and December 31, 2017.  The Company has not been assessed interest or penalties by any major tax jurisdictions related to prior years. 
On December 22, 2017, the Tax Cuts and Jobs Act was enacted, reducing the U.S. federal corporate income tax rate from 35% to 21%, among other changes. In December 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for the income tax effects of the Tax Cuts and Jobs Act, for which the accounting under ASC 740 is incomplete. As of September 30, 2018, we have completed our accounting for the tax effects of the Tax Cuts and Jobs Act, however, as there is some uncertainty around the grandfathering provisions related to performance-based executive compensation, we have estimated a provisional amount for the deferred tax assets related to performance-based executive compensation. In addition, we also remeasured the applicable deferred tax assets and liabilities based on the rate at which they are expected to reverse in the future, which is generally 21%. We are still analyzing certain aspects of the Tax Cuts and Jobs Act and refining our calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. In the quarter ended December 31, 2017, the Company recorded an income tax charge of $22.0 million related to the re-measurement of our deferred tax assets related to the Tax Cuts and Jobs Act. The Company recorded a discrete tax benefit of $714,000 for the three months ended September 30, 2018 related to re-measurement of our deferred tax assets related to Tax Cuts and Jobs Act due to favorable provision to return adjustments upon filing of the federal consolidated tax return.
v3.10.0.1
Related Party Transactions
9 Months Ended
Sep. 30, 2018
Related Party Transactions [Abstract]  
Related Party Transactions
Related Party Transactions
We had no related party transactions for the nine months ended September 30, 2018 and 2017.
v3.10.0.1
Supplemental Disclosure to Consolidated Statements of Cash Flows
9 Months Ended
Sep. 30, 2018
Supplemental Cash Flow Elements [Abstract]  
Supplemental Disclosure to Consolidated Statements of Cash Flow
Supplemental Disclosure to Consolidated Statements of Cash Flows
The following are supplemental disclosures to the consolidated statements of cash flows (in thousands):
 
Nine Months Ended September 30,
 
2018
 
2017
Supplemental disclosure of cash flow information:
 
 
 
Cash paid during the period for:
 
 
 
Interest, net of amounts capitalized of $48,862 and $61,669
$

 
$

Income taxes
$
81,417

 
$
44,784

Supplemental disclosures of noncash activities:
 
 
 
Amortization of senior note discount capitalized to real estate inventory
$
1,738

 
$
1,525

Increase in other assets related to adoption of ASC 606
$
39,534

 
$

Amortization of deferred loan costs capitalized to real estate inventory
$
4,841

 
$
4,105

Effect of net consolidation and de-consolidation of variable interest entities:
 
 
 
Decrease in consolidated real estate inventory not owned
$

 
$
(14,660
)
Decrease in noncontrolling interests
$

 
$
14,660

v3.10.0.1
Supplemental Guarantor Information
9 Months Ended
Sep. 30, 2018
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.
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, 2018 and December 31, 2017, condensed consolidating statements of operations for the three and nine months ended September 30, 2018 and 2017 and condensed consolidating statement of cash flows for the nine months ended September 30, 2018 and 2017 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, 2018
 
Issuer
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
20,230

 
$
62,856

 
$

 
$
83,086

Receivables
33,924

 
51,102

 

 
85,026

Intercompany receivables
906,894

 

 
(906,894
)
 

Real estate inventories
872,137

 
2,505,598

 

 
3,377,735

Investments in unconsolidated entities

 
4,275

 

 
4,275

Goodwill and other intangible assets, net
156,604

 
3,956

 

 
160,560

Investments in subsidiaries
1,577,561

 

 
(1,577,561
)
 

Deferred tax assets, net
13,320

 
45,793

 

 
59,113

Other assets
8,833

 
98,476

 

 
107,309

Total assets
$
3,589,503

 
$
2,772,056

 
$
(2,484,455
)
 
$
3,877,104

 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
Accounts payable
$
13,533

 
$
70,178

 
$

 
$
83,711

Intercompany payables

 
906,894

 
(906,894
)
 

Accrued expenses and other liabilities
96,375

 
216,819

 

 
313,194

Unsecured revolving credit facility
100,000

 

 

 
100,000

Senior notes
1,419,198

 

 

 
1,419,198

Total liabilities
1,629,106

 
1,193,891

 
(906,894
)
 
1,916,103

 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
Total stockholders’ equity
1,960,397

 
1,577,561

 
(1,577,561
)
 
1,960,397

Noncontrolling interests

 
604

 

 
604

Total equity
1,960,397

 
1,578,165

 
(1,577,561
)
 
1,961,001

Total liabilities and equity
$
3,589,503

 
$
2,772,056

 
$
(2,484,455
)
 
$
3,877,104



Condensed Consolidating Balance Sheet (in thousands):
 
 
December 31, 2017
 
Issuer
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
176,684

 
$
106,230

 
$

 
$
282,914

Receivables
56,021

 
69,579

 

 
125,600

Intercompany receivables
794,550

 

 
(794,550
)
 

Real estate inventories
855,727

 
2,249,826

 

 
3,105,553

Investments in unconsolidated entities

 
5,870

 

 
5,870

Goodwill and other intangible assets, net
156,604

 
4,357

 

 
160,961

Investments in subsidiaries
1,448,690

 

 
(1,448,690
)
 

Deferred tax assets, net
10,892

 
65,521

 

 
76,413

Other assets
3,465

 
44,605

 

 
48,070

Total assets
$
3,502,633

 
$
2,545,988

 
$
(2,243,240
)
 
$
3,805,381

 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
Accounts payable
$
9,364

 
$
63,506

 
$

 
$
72,870

Intercompany payables

 
794,550

 
(794,550
)
 

Accrued expenses and other liabilities
92,245

 
238,637

 

 
330,882

Senior notes
1,471,302

 

 

 
1,471,302

Total liabilities
1,572,911

 
1,096,693

 
(794,550
)
 
1,875,054

 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
Total stockholders’ equity
1,929,722

 
1,448,690

 
(1,448,690
)
 
1,929,722

Noncontrolling interests

 
605

 

 
605

Total equity
1,929,722

 
1,449,295

 
(1,448,690
)
 
1,930,327

Total liabilities and equity
$
3,502,633

 
$
2,545,988

 
$
(2,243,240
)
 
$
3,805,381







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 (expense) 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

Net income attributable to noncontrolling interests

 

 

 

Net income available to common stockholders
$
63,969

 
$
45,662

 
$
(45,662
)
 
$
63,969




 
Condensed Consolidating Statement of Operations (in thousands):
 
 
Three Months Ended September 30, 2017
 
Issuer
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Homebuilding:
 
 
 
 
 
 
 
Home sales revenue
$
239,110

 
$
409,528

 
$

 
$
648,638

Land and lot sales revenue

 
68,218

 

 
68,218

Other operations revenue

 
584

 

 
584

Total revenues
239,110

 
478,330

 

 
717,440

Cost of home sales
200,384

 
321,534

 

 
521,918

Cost of land and lot sales

 
12,001

 

 
12,001

Other operations expense

 
575

 

 
575

Sales and marketing
8,816

 
24,363

 

 
33,179

General and administrative
15,560

 
17,396

 

 
32,956

Homebuilding income from operations
14,350

 
102,461

 

 
116,811

Equity in income of unconsolidated entities

 

 

 

Other income, net
15

 
11

 

 
26

Homebuilding income before income taxes
14,365

 
102,472

 

 
116,837

Financial Services:
 
 
 
 
 
 
 
Revenues

 
295

 

 
295

Expenses

 
82

 

 
82

Equity in income of unconsolidated entities

 
1,351

 

 
1,351

Financial services income before income taxes

 
1,564

 

 
1,564

Income before income taxes
14,365

 
104,036

 

 
118,401

Equity of net income of subsidiaries
59,725

 

 
(59,725
)
 

Provision for income taxes
(1,826
)
 
(44,286
)
 

 
(46,112
)
Net income
72,264

 
59,750

 
(59,725
)
 
72,289

Net income attributable to noncontrolling interests

 
(25
)
 

 
(25
)
Net income available to common stockholders
$
72,264

 
$
59,725

 
$
(59,725
)
 
$
72,264










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

Net income attributable to noncontrolling interests

 

 

 

Net income available to common stockholders
$
170,529

 
$
136,827

 
$
(136,827
)
 
$
170,529


Condensed Consolidating Statement of Operations (in thousands):
 
 
Nine Months Ended September 30, 2017
 
Issuer
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Homebuilding:
 
 
 
 
 
 
 
Home sales revenue
$
524,159

 
$
1,085,299

 
$

 
$
1,609,458

Land and lot sales revenue

 
69,661

 

 
69,661

Other operations revenue

 
1,752

 

 
1,752

Total revenues
524,159

 
1,156,712

 

 
1,680,871

Cost of home sales
445,501

 
849,062

 

 
1,294,563

Cost of land and lot sales

 
13,299

 

 
13,299

Other operations expense

 
1,726

 

 
1,726

Sales and marketing
22,265

 
69,944

 

 
92,209

General and administrative
49,113

 
52,180

 

 
101,293

Homebuilding income from operations
7,280

 
170,501

 

 
177,781

Equity in income of unconsolidated entities

 
1,646

 

 
1,646

Other income, net
33

 
114

 

 
147

Homebuilding income before income taxes
7,313

 
172,261

 

 
179,574

Financial Services:
 
 
 
 
 
 
 
Revenues

 
881

 

 
881

Expenses

 
233

 

 
233

Equity in income of unconsolidated entities

 
2,911

 

 
2,911

Financial services income before income taxes

 
3,559

 

 
3,559

Income before income taxes
7,313

 
175,820

 

 
183,133

Equity of net income of subsidiaries
103,177

 

 
(103,177
)
 

Benefit (provision) for income taxes
2,681

 
(72,505
)
 

 
(69,824
)
Net income
113,171

 
103,315

 
(103,177
)
 
113,309

Net income attributable to noncontrolling interests

 
(138
)
 

 
(138
)
Net income available to common stockholders
$
113,171

 
$
103,177

 
$
(103,177
)
 
$
113,171



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) provided by investing activities
(115,383
)
 
(19,748
)
 
108,780

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

 

 

 
100,000

Repayment of debt
(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) increase 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




Condensed Consolidating Statement of Cash Flows (in thousands):
 
 
Nine Months Ended September 30, 2017
 
Issuer
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Cash flows from operating activities:
 
 
 
 
 
 
 
Net cash used in operating activities
$
(60,816
)
 
$
(149,840
)
 
$

 
$
(210,656
)
Cash flows from investing activities:
 
 
 
 
 
 
 
Purchases of property and equipment
(1,473
)
 
(739
)
 

 
(2,212
)
Proceeds from sale of property and equipment

 
6

 

 
6

Investments in unconsolidated entities

 
(934
)
 

 
(934
)
Intercompany
(161,755
)
 

 
161,755

 

Net cash used in investing activities
(163,228
)
 
(1,667
)
 
161,755

 
(3,140
)
Cash flows from financing activities:
 
 
 
 
 
 
 
Borrowings from notes payable
500,000

 

 

 
500,000

Repayment of notes payable
(213,726
)
 

 

 
(213,726
)
Debt issuance costs
(5,932
)
 

 

 
(5,932
)
Distributions to noncontrolling interests

 
(987
)
 

 
(987
)
Proceeds from issuance of common stock under
   share-based awards
3,293

 

 

 
3,293

Minimum tax withholding paid on behalf of employees for restricted stock units
(2,896
)
 

 

 
(2,896
)
Share repurchases
(112,217
)
 

 

 
(112,217
)
Intercompany

 
161,755

 
(161,755
)
 

Net cash provided by financing activities
168,522

 
160,768

 
(161,755
)
 
167,535

Net (decrease) increase in cash and cash equivalents
(55,522
)
 
9,261

 

 
(46,261
)
Cash and cash equivalents - beginning of period
141,568

 
67,089

 

 
208,657

Cash and cash equivalents - end of period
$
86,046

 
$
76,350

 
$

 
$
162,396

v3.10.0.1
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Policies)
9 Months Ended
Sep. 30, 2018
Accounting Policies [Abstract]  
Organization and Basis of Presentation
Organization
TRI Pointe Group is engaged in the design, construction and sale of innovative single-family attached and detached homes through its portfolio of six quality brands across eight states, including Maracay in Arizona, Pardee Homes in California and Nevada, Quadrant Homes in Washington, Trendmaker Homes in Texas, TRI Pointe Homes in California and Colorado and Winchester Homes in Maryland and Virginia.
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, 2017. 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, 2018 are not necessarily indicative of the results to be expected for the full year 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, 2018 and December 31, 2017 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
In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Codified as “ASC 606”). ASC 606 supersedes the revenue-recognition requirements in ASC Topic 605, Revenue Recognition, most industry-specific guidance throughout the industry topics of the accounting standards codification, and some cost guidance related to construction-type and production-type contracts. The core principle of ASC 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: identify the contract(s) with a customer; identify the performance obligations in the contract; determine the transaction price; allocate the transaction price to the performance obligations in the contract; and recognize revenue when (or as) the entity satisfies a performance obligation. We have adopted and applied this updated revenue recognition policy as of January 1, 2018. See Adoption of New Accounting Standards below.
The majority of our revenue is related to fixed-price contracts to deliver completed homes to homebuyers, and to a much lesser degree, to deliver land or lots to other homebuilders or real estate developers. We generally deliver completed homes to homebuyers and land and lots to other homebuilders or real estate developers when all closing conditions are met, including the passage of title and the receipt of consideration, and the collection of associated receivables, if any, is reasonably assured. When it is determined that there are uncompleted performance obligations, the transaction price and the related profit for those uncompleted performance obligations are deferred for recognition in future periods based on the principles of ASC 606. The most common examples of uncompleted performance obligations are unfinished pools or outdoor landscaping features that are unable to be completed due to weather or other circumstances.
Following the adoption of ASC 606, the timing of revenue recognition for all of our contracts remained materially consistent with our historical revenue recognition policy due to the nature of our revenue generating activities, with the most common difference under ASC 606 relating to the deferral of revenue due to these uncompleted performance obligations at the time we deliver new homes to our homebuyers.
When we enter into a contract with a homebuyer, we sometimes receive a nonrefundable deposit that is recognized as revenue under circumstances in which a contract is canceled by the homebuyer. These amounts are recognized as home sales revenue at the time a contract is canceled by the homebuyer. We have not experienced significant contract modifications impacting the timing of revenue recognition under ASC 606, nor will we be required to use estimates in the application of the core revenue recognition principles.
Real Estate Inventories and Cost of Sales
ASC 606 includes Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers (“Subtopic 340-40”), which requires the deferral of incremental costs of obtaining a contract with a customer. The adoption of Subtopic 340-40 impacts the timing of recognition and classification in our consolidated financial statements of certain sales office, model and other marketing related costs that we incur to obtain sales contracts from our customers. For example, we historically capitalized to inventory and amortized through cost of home sales various sales office, model and other marketing related costs with each home delivered in a community. Under Subtopic 340-40, these costs are expensed when incurred or capitalized to other assets and amortized to selling expense.
Recently Issued Accounting Standards
Recently Issued Accounting Standards Not Yet Adopted
In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Codified as “ASC 842”), which requires an entity to recognize assets and liabilities on the balance sheet for the rights and obligations created by leases with durations of greater than 12 months, but record expenses on the statements of operations in a manner similar to current accounting. The guidance also requires more disclosures about leases in the notes to consolidated financial statements. ASC 842 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and, at that time, we will adopt the new standard using a modified retrospective approach. We are continuing to evaluate the impact that the adoption of ASC 842 may have on our consolidated financial statements and disclosures. While the adoption of ASC 842 could have a material impact on our consolidated balance sheet, we do not expect that there will be a material impact to our consolidated statements of operations or cash flows.
In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles - Goodwill 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 ASU 2017-04 will have a material impact on our financial statements.
Adoption of New Accounting Standards
In August 2016, the FASB issued Accounting Standards Update No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. We adopted ASU 2016-15 on January 1, 2018 and our adoption did not have a material impact on our consolidated financial statements.
On January 1, 2018, we adopted ASC 606 using the modified retrospective approach applying the method of presenting the standard of ASC 606 to only those contracts not considered completed under legacy GAAP. As a result of this application of ASC 606, no prior period results have been recast and the standard has been applied prospectively as of January 1, 2018.
Segment Reporting
We operate two principal businesses: homebuilding and financial services.
Our homebuilding operations consist of six homebuilding brands that acquire and develop land and construct and sell single-family detached and attached homes. In accordance with ASC Topic 280, Segment Reporting, in determining the most appropriate reportable segments, we considered similar economic and other characteristics, including product types, average selling prices, gross profits, production processes, suppliers, subcontractors, regulatory environments, land acquisition results, and underlying demand and supply. Based upon these factors, our homebuilding operations are comprised of the following six reportable segments: Maracay, consisting of operations in Arizona; Pardee Homes, consisting of operations in California and Nevada; Quadrant Homes, consisting of operations in Washington; Trendmaker Homes, consisting of operations in Texas; TRI Pointe Homes, consisting of operations in California and Colorado; 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 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
v3.10.0.1
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Tables)
9 Months Ended
Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Cumulative Effect of Adopting ASC 606
The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet resulting from the adoption of ASC 606 was as follows (in thousands):
 
 
Balance at December 31, 2017
 
Adjustments due to ASC 606
 
Balance at January 1, 2018
Assets
 
 
 
 
 
 
 Real estate inventories
 
$
3,105,553

 
$
(49,317
)
 
$
3,056,236

 Deferred income tax asset
 
76,413

 
2,429

 
78,842

 Other assets
 
48,070

 
39,534

 
87,604

Equity
 
 
 
 
 
 
 Retained earnings
 
1,134,230

 
(7,354
)
 
1,126,876

Impact of Adopting ASC 606 on Consolidated Income Statement and Balance Sheet
In accordance with ASC 606 disclosure requirements, the impact of adopting ASC 606 on our consolidated statements of operations and balance sheets for the three and nine months ended September 30, 2018 were as follows (in thousands, except per share amounts):
 
Three Months Ended September 30, 2018
 
Nine Months Ended September 30, 2018
 
As Reported
 
Balances Without Adoption of ASC 606
 
Effect of Change Higher/(Lower)
 
As Reported
 
Balances Without Adoption of ASC 606
 
Effect of Change Higher/(Lower)
Statements of Operations
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
 
 
 
 Home sales
$
771,768

 
$
771,784

 
$
(16
)
 
$
2,123,135

 
$
2,123,387

 
$
(252
)
 
 
 
 
 
 
 
 
 
 
 
 
Costs and expenses
 
 
 
 
 
 
 
 
 
 
 
 Cost of home sales
607,053

 
617,483

 
(10,430
)
 
1,661,651

 
1,689,324

 
(27,673
)
 Sales and marketing
44,854

 
38,506

 
6,348

 
128,881

 
109,346

 
19,535

 Provision for income taxes
(19,661
)
 
(18,683
)
 
978

 
(55,457
)
 
(53,518
)
 
1,939

 Net income
63,969

 
60,881

 
3,088

 
170,529

 
164,582

 
5,947

Diluted earnings per share
$
0.43

 
$
0.41

 
$
0.02

 
$
1.13

 
$
1.09

 
$
0.04

 
 
 
 
 
 
 
 
 
 
 
 
 
As of September 30, 2018
 
 
 
 
 
 
 
As Reported
 
Balances Without Adoption of ASC 606
 
Effect of Change Higher/(Lower)
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 Real estate inventories
$
3,377,735

 
$
3,424,468

 
$
(46,733
)
 
 
 
 
 
 
Deferred tax assets, net
59,113

 
54,750

 
4,363

 
 
 
 
 
 
 Other assets
107,309

 
63,874

 
43,435

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 Accrued expenses and other liabilities
313,194

 
313,442

 
(248
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
 
 
 Retained earnings
1,297,405

 
1,296,092

 
1,313

 
 
 
 
 
 
v3.10.0.1
Segment Information (Tables)
9 Months Ended
Sep. 30, 2018
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,
 
2018
 
2017
 
2018
 
2017
Revenues
 
 
 
 
 
 
 
Maracay
$
66,730

 
$
78,167

 
$
182,134

 
$
204,981

Pardee Homes
224,452

 
231,376

 
648,208

 
495,452

Quadrant Homes
66,174

 
54,781

 
193,481

 
135,599

Trendmaker Homes
78,606

 
53,787

 
197,730

 
171,615

TRI Pointe Homes
264,499

 
239,110

 
710,561

 
524,159

Winchester Homes
74,130

 
60,219

 
196,782

 
149,065

Total homebuilding revenues
774,591

 
717,440

 
2,128,896

 
1,680,871

Financial services
480

 
295

 
1,154

 
881

Total
$
775,071

 
$
717,735

 
$
2,130,050

 
$
1,681,752

 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
 
 
 
 
 
 
Maracay
$
6,260

 
$
6,431

 
$
15,665

 
$
14,429

Pardee Homes
36,087

 
82,407

 
122,195

 
128,570

Quadrant Homes
9,269

 
6,251

 
25,206

 
13,104

Trendmaker Homes
7,379

 
3,233

 
13,977

 
9,657

TRI Pointe Homes
30,945

 
24,382

 
69,651

 
39,779

Winchester Homes
4,122

 
4,284

 
9,908

 
6,903

Corporate
(12,773
)
 
(10,151
)
 
(36,351
)
 
(32,868
)
Total homebuilding income before income taxes
81,289

 
116,837

 
220,251

 
179,574

Financial services
2,341

 
1,564

 
5,735

 
3,559

Total
$
83,630

 
$
118,401

 
$
225,986

 
$
183,133

 
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, 2018
 
December 31, 2017
Real estate inventories
 
 
 
Maracay
$
308,887

 
$
243,883

Pardee Homes
1,361,960

 
1,245,659

Quadrant Homes
312,645

 
257,887

Trendmaker Homes
223,576

 
204,926

TRI Pointe Homes
872,137

 
855,727

Winchester Homes
298,530

 
297,471

Total
$
3,377,735

 
$
3,105,553

 
 
 
 
Total assets
 
 
 
Maracay
$
330,998

 
$
268,866

Pardee Homes
1,450,432

 
1,346,296

Quadrant Homes
336,665

 
312,803

Trendmaker Homes
250,728

 
224,995

TRI Pointe Homes
1,069,085

 
1,062,920

Winchester Homes
324,668

 
313,921

Corporate
97,651

 
262,740

Total homebuilding assets
3,860,227

 
3,792,541

Financial services
16,877

 
12,840

Total
$
3,877,104

 
$
3,805,381

v3.10.0.1
Earnings Per Share (Tables)
9 Months Ended
Sep. 30, 2018
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,
 
2018
 
2017
 
2018
 
2017
Numerator:
 

 
 

 
 

 
 

Net income available to common stockholders
$
63,969

 
$
72,264

 
$
170,529

 
$
113,171

Denominator:
 

 
 

 
 

 
 

Basic weighted-average shares outstanding
147,725,074

 
151,214,744

 
150,377,472

 
155,238,206

Effect of dilutive shares:
 

 
 
 
 

 
 

Stock options and unvested restricted stock units
592,958

 
915,081

 
1,104,984

 
697,870

Diluted weighted-average shares outstanding
148,318,032

 
152,129,825

 
151,482,456

 
155,936,076

Earnings per share
 

 
 

 
 

 
 

Basic
$
0.43

 
$
0.48

 
$
1.13

 
$
0.73

Diluted
$
0.43

 
$
0.48

 
$
1.13

 
$
0.73

Antidilutive stock options and unvested restricted stock units not included in diluted earnings per share
2,008,612

 
3,406,498

 
1,280,500

 
3,710,674

v3.10.0.1
Receivables (Tables)
9 Months Ended
Sep. 30, 2018
Receivables [Abstract]  
Components of Receivables
Receivables consisted of the following (in thousands):
 
September 30, 2018
 
December 31, 2017
Escrow proceeds and other accounts receivable, net
$
49,738

 
$
89,783

Warranty insurance receivable (Note 13)
35,288

 
35,817

Total receivables
$
85,026

 
$
125,600

v3.10.0.1
Real Estate Inventories (Tables)
9 Months Ended
Sep. 30, 2018
Inventory Disclosure [Abstract]  
Summary of Real Estate Inventories
Real estate inventories consisted of the following (in thousands):
 
September 30, 2018
 
December 31, 2017
Real estate inventories owned:
 
 
 
Homes completed or under construction
$
1,190,986

 
$
793,685

Land under development
1,663,818

 
1,934,556

Land held for future development
201,108

 
138,651

Model homes
258,401

 
211,658

Total real estate inventories owned
3,314,313

 
3,078,550

Real estate inventories not owned:
 
 
 
Land purchase and land option deposits
63,422

 
27,003

Total real estate inventories not owned
63,422

 
27,003

Total real estate inventories
$
3,377,735

 
$
3,105,553

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,
 
2018
 
2017
 
2018
 
2017
Interest incurred
$
23,942

 
$
22,865

 
$
67,089

 
$
61,669

Interest capitalized
(23,942
)
 
(22,865
)
 
(67,089
)
 
(61,669
)
Interest expensed
$

 
$

 
$

 
$

Capitalized interest in beginning inventory
$
185,589

 
$
173,261

 
$
176,348

 
$
157,329

Interest capitalized as a cost of inventory
23,942

 
22,865

 
67,089

 
61,669

Interest previously capitalized as a cost of
inventory, included in cost of sales
(20,293
)
 
(15,899
)
 
(54,199
)
 
(38,771
)
Capitalized interest in ending inventory
$
189,238

 
$
180,227

 
$
189,238

 
$
180,227

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,
 
2018
 
2017
 
2018
 
2017
Real estate inventory impairments
$

 
$

 
$

 
$
267

Land and lot option abandonments and pre-acquisition charges
643

 
374

 
1,500

 
936

Total
$
643

 
$
374

 
$
1,500

 
$
1,203

v3.10.0.1
Investments in Unconsolidated Entities (Tables)
9 Months Ended
Sep. 30, 2018
Equity Method Investments and Joint Ventures [Abstract]  
Schedule of Cumulative Investment in Entities on Equity Method, Including Share of Earnings and Losses
Our cumulative investment in entities accounted for on the equity method, including our share of earnings and losses, consisted of the following (in thousands):
 
September 30, 2018
 
December 31, 2017
Limited liability company interests
$
1,563

 
$
2,687

General partnership interests
2,712

 
3,183

Total
$
4,275

 
$
5,870

Aggregated Assets, Liabilities and Operating Results of Entities as Equity-Method Investments
Assets and liabilities of unconsolidated entities (in thousands):
 
 
September 30, 2018
 
December 31, 2017
Assets
 
 
 
Cash
$
11,627

 
$
11,678

Receivables
3,990

 
6,564

Real estate inventories
98,961

 
99,997

Other assets
825

 
936

Total assets
$
115,403

 
$
119,175

Liabilities and equity
 
 
 
Accounts payable and other liabilities
$
9,116

 
$
12,208

Company’s equity
4,275

 
5,870

Outside interests' equity
102,012

 
101,097

Total liabilities and equity
$
115,403

 
$
119,175

 
Results of operations from unconsolidated entities (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Net sales
$
6,185

 
$
5,404

 
$
19,900

 
$
15,722

Other operating expense
(2,951
)
 
(3,532
)
 
(13,510
)
 
(9,714
)
Other income
1

 
36

 
85

 
60

Net income
$
3,235

 
$
1,908

 
$
6,475

 
$
6,068

Company’s equity in income of unconsolidated entities
$
2,001

 
$
1,351

 
$
4,588

 
$
4,557

v3.10.0.1
Variable Interest Entities (Tables)
9 Months Ended
Sep. 30, 2018
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, 2018
 
December 31, 2017
 
Deposits
 
Remaining
Purchase
Price
 
Consolidated
Inventory
Held by VIEs
 
Deposits
 
Remaining
Purchase
Price
 
Consolidated
Inventory
Held by VIEs
Consolidated VIEs
$

 
$

 
$

 
$

 
$

 
$

Unconsolidated VIEs
35,348

 
229,219

 
N/A

 
3,418

 
112,590

 
N/A

Other land option agreements
28,074

 
503,583

 
N/A

 
23,585

 
269,349

 
N/A

Total
$
63,422

 
$
732,802

 
$

 
$
27,003

 
$
381,939

 
$

v3.10.0.1
Goodwill and Other Intangible Assets (Tables)
9 Months Ended
Sep. 30, 2018
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, 2018
 
December 31, 2017
 
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

 
(6,723
)
 
21,256

 
27,979

 
(6,322
)
 
21,657

Total
$
167,283

 
$
(6,723
)
 
$
160,560

 
$
167,283

 
$
(6,322
)
 
$
160,961

Schedule of Expected Amortization of Intangible Asset
Expected amortization of our intangible asset related to Maracay for the remainder of 2018, the next four years and thereafter is (in thousands):
Remainder of 2018
$
133

2019
534

2020
534

2021
534

2022
534

Thereafter
1,687

Total
$
3,956

v3.10.0.1
Other Assets (Tables)
9 Months Ended
Sep. 30, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Other Assets
Other assets consisted of the following (in thousands):
 
September 30, 2018
 
December 31, 2017
Prepaid expenses
$
27,043

 
$
13,040

Refundable fees and other deposits
16,747

 
16,012

Development rights, held for future use or sale
1,741

 
2,569

Deferred loan costs - unsecured revolving credit facility
2,675

 
3,427

Operating properties and equipment, net
56,259

 
10,528

Other
2,844

 
2,494

Total
$
107,309

 
$
48,070

v3.10.0.1
Accrued Expenses and Other Liabilities (Tables)
9 Months Ended
Sep. 30, 2018
Payables and Accruals [Abstract]  
Schedule of Accrued Expenses and Other Liabilities
Accrued expenses and other liabilities consisted of the following (in thousands):
 
September 30, 2018
 
December 31, 2017
Accrued payroll and related costs
$
28,856

 
$
36,863

Warranty reserves (Note 13)
73,995

 
69,373

Estimated cost for completion of real estate inventories
102,225

 
105,864

Customer deposits
26,811

 
19,568

Income tax liability to Weyerhaeuser
8,321

 
7,706

Accrued income taxes payable

 
30,672

Liability for uncertain tax positions (Note 15)
1,458

 
1,458

Accrued interest
23,146

 
11,014

Accrued insurance expense
5,444

 
1,187

Other tax liability
24,647

 
33,671

Other
18,291

 
13,506

Total
$
313,194

 
$
330,882



v3.10.0.1
Senior Notes and Unsecured Revolving Credit Facility (Tables)
9 Months Ended
Sep. 30, 2018
Debt Disclosure [Abstract]  
Schedule of Senior Notes
The Company's outstanding senior notes (together, the "Senior Notes") consisted of the following (in thousands):
 
 
September 30, 2018
 
December 31, 2017
4.375% Senior Notes due June 15, 2019
$
392,069

 
$
450,000

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
(22,871
)
 
(28,698
)
Total
$
1,419,198

 
$
1,471,302

v3.10.0.1
Fair Value Disclosures (Tables)
9 Months Ended
Sep. 30, 2018
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, 2018 and December 31, 2017, related to our financial instruments, measured at fair value on a recurring basis, is set forth below (in thousands):
 
 
 
September 30, 2018
 
December 31, 2017
 
Hierarchy
 
Book Value
 
Fair Value
 
Book Value
 
Fair Value
Senior Notes (1)
Level 2
 
$
1,435,036

 
$
1,406,819

 
$
1,491,229

 
$
1,552,335

 __________
(1) 
The book value of the Senior Notes is net of discounts, excluding deferred loan costs of $15.8 million and $19.9 million as of September 30, 2018 and December 31, 2017, respectively. The estimated fair value of the Senior Notes at September 30, 2018 and December 31, 2017 is based on quoted market prices.

Fair Value of Nonfinancial Assets
The following table presents impairment charges and the remaining net fair value for nonfinancial assets that were measured during the periods presented (in thousands):
 
Nine Months Ended September 30, 2018
 
Year Ended December 31, 2017
 
Impairment
Charge
 
Fair Value
Net of
Impairment
 
Impairment
Charge
 
Fair Value
Net of
Impairment
Real estate inventories (1)
$

 
$

 
$
854

 
$
12,950


 __________
(1) Fair value of real estate inventories, net of impairment charges represents only those assets whose carrying values were adjusted to fair value in the respective periods presented. The fair value of these real estate inventories impaired was determined based on an analysis of future undiscounted net cash flows.  In the case of lots for sale, fair value was determined based on recent land and lot sales for similar assets.
v3.10.0.1
Commitments and Contingencies (Tables)
9 Months Ended
Sep. 30, 2018
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,
 
2018
 
2017
 
2018
 
2017
Warranty reserves, beginning of period
$
72,342

 
$
80,128

 
$
69,373

 
$
83,135

Warranty reserves accrued
6,257

 
4,448

 
17,669

 
10,122

Adjustments to pre-existing reserves

 
400

 

 
1,021

Warranty expenditures
(4,604
)
 
(4,054
)
 
(13,047
)
 
(13,356
)
Warranty reserves, end of period
$
73,995

 
$
80,922

 
$
73,995

 
$
80,922


 
v3.10.0.1
Stock-Based Compensation (Tables)
9 Months Ended
Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [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,
 
2018
 
2017
 
2018
 
2017
Total stock-based compensation
$
3,765

 
$
3,887

 
$
10,955

 
$
11,631

Summary of Stock Option Awards
The following table presents a summary of stock option awards for the nine months ended September 30, 2018:
 
Options
 
Weighted
Average
Exercise
Price
Per Share
 
Weighted
Average
Remaining
Contractual
Life
 
Aggregate
Intrinsic
Value
(in thousands)
Options outstanding at December 31, 2017
1,154,658

 
$
14.16

 
4.9

 
$
4,350

Granted

 

 

 

Exercised
(171,747
)
 
$
12.05

 

 

Forfeited
(29,006
)
 
$
12.73

 

 

Options outstanding at September 30, 2018
953,905

 
$
14.58

 
4.4

 
$
510

Options exercisable at September 30, 2018
953,905

 
$
14.58

 
4.4

 
$
510

Summary of Restricted Stock Units
The following table presents a summary of restricted stock units (“RSUs”) for the nine months ended September 30, 2018:
 
Restricted
Stock
Units
 
Weighted
Average
Grant Date
Fair Value
Per Share
 
Aggregate
Intrinsic
Value
(in thousands)
Nonvested RSUs at December 31, 2017
4,307,592

 
$
9.80

 
$
77,192

Granted
1,131,231

 
$
15.77

 

Vested
(1,102,727
)
 
$
12.47

 

Forfeited
(993,133
)
 
$
9.40

 

Nonvested RSUs at September 30, 2018
3,342,963

 
$
11.05

 
$
41,453

v3.10.0.1
Supplemental Disclosure to Consolidated Statements of Cash Flows (Tables)
9 Months Ended
Sep. 30, 2018
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,
 
2018
 
2017
Supplemental disclosure of cash flow information:
 
 
 
Cash paid during the period for:
 
 
 
Interest, net of amounts capitalized of $48,862 and $61,669
$

 
$

Income taxes
$
81,417

 
$
44,784

Supplemental disclosures of noncash activities:
 
 
 
Amortization of senior note discount capitalized to real estate inventory
$
1,738

 
$
1,525

Increase in other assets related to adoption of ASC 606
$
39,534

 
$

Amortization of deferred loan costs capitalized to real estate inventory
$
4,841

 
$
4,105

Effect of net consolidation and de-consolidation of variable interest entities:
 
 
 
Decrease in consolidated real estate inventory not owned
$

 
$
(14,660
)
Decrease in noncontrolling interests
$

 
$
14,660

v3.10.0.1
Supplemental Guarantor Information (Tables)
9 Months Ended
Sep. 30, 2018
Condensed Financial Information Disclosure [Abstract]  
Condensed Consolidating Balance Sheet
Condensed Consolidating Balance Sheet (in thousands):
 
 
September 30, 2018
 
Issuer
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
20,230

 
$
62,856

 
$

 
$
83,086

Receivables
33,924

 
51,102

 

 
85,026

Intercompany receivables
906,894

 

 
(906,894
)
 

Real estate inventories
872,137

 
2,505,598

 

 
3,377,735

Investments in unconsolidated entities

 
4,275

 

 
4,275

Goodwill and other intangible assets, net
156,604

 
3,956

 

 
160,560

Investments in subsidiaries
1,577,561

 

 
(1,577,561
)
 

Deferred tax assets, net
13,320

 
45,793

 

 
59,113

Other assets
8,833

 
98,476

 

 
107,309

Total assets
$
3,589,503

 
$
2,772,056

 
$
(2,484,455
)
 
$
3,877,104

 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
Accounts payable
$
13,533

 
$
70,178

 
$

 
$
83,711

Intercompany payables

 
906,894

 
(906,894
)
 

Accrued expenses and other liabilities
96,375

 
216,819

 

 
313,194

Unsecured revolving credit facility
100,000

 

 

 
100,000

Senior notes
1,419,198

 

 

 
1,419,198

Total liabilities
1,629,106

 
1,193,891

 
(906,894
)
 
1,916,103

 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
Total stockholders’ equity
1,960,397

 
1,577,561

 
(1,577,561
)
 
1,960,397

Noncontrolling interests

 
604

 

 
604

Total equity
1,960,397

 
1,578,165

 
(1,577,561
)
 
1,961,001

Total liabilities and equity
$
3,589,503

 
$
2,772,056

 
$
(2,484,455
)
 
$
3,877,104



Condensed Consolidating Balance Sheet (in thousands):
 
 
December 31, 2017
 
Issuer
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
176,684

 
$
106,230

 
$

 
$
282,914

Receivables
56,021

 
69,579

 

 
125,600

Intercompany receivables
794,550

 

 
(794,550
)
 

Real estate inventories
855,727

 
2,249,826

 

 
3,105,553

Investments in unconsolidated entities

 
5,870

 

 
5,870

Goodwill and other intangible assets, net
156,604

 
4,357

 

 
160,961

Investments in subsidiaries
1,448,690

 

 
(1,448,690
)
 

Deferred tax assets, net
10,892

 
65,521

 

 
76,413

Other assets
3,465

 
44,605

 

 
48,070

Total assets
$
3,502,633

 
$
2,545,988

 
$
(2,243,240
)
 
$
3,805,381

 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
Accounts payable
$
9,364

 
$
63,506

 
$

 
$
72,870

Intercompany payables

 
794,550

 
(794,550
)
 

Accrued expenses and other liabilities
92,245

 
238,637

 

 
330,882

Senior notes
1,471,302

 

 

 
1,471,302

Total liabilities
1,572,911

 
1,096,693

 
(794,550
)
 
1,875,054

 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
Total stockholders’ equity
1,929,722

 
1,448,690

 
(1,448,690
)
 
1,929,722

Noncontrolling interests

 
605

 

 
605

Total equity
1,929,722

 
1,449,295

 
(1,448,690
)
 
1,930,327

Total liabilities and equity
$
3,502,633

 
$
2,545,988

 
$
(2,243,240
)
 
$
3,805,381

Condensed Consolidating Statement of Operations
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 (expense) 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

Net income attributable to noncontrolling interests

 

 

 

Net income available to common stockholders
$
63,969

 
$
45,662

 
$
(45,662
)
 
$
63,969




 
Condensed Consolidating Statement of Operations (in thousands):
 
 
Three Months Ended September 30, 2017
 
Issuer
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Homebuilding:
 
 
 
 
 
 
 
Home sales revenue
$
239,110

 
$
409,528

 
$

 
$
648,638

Land and lot sales revenue

 
68,218

 

 
68,218

Other operations revenue

 
584

 

 
584

Total revenues
239,110

 
478,330

 

 
717,440

Cost of home sales
200,384

 
321,534

 

 
521,918

Cost of land and lot sales

 
12,001

 

 
12,001

Other operations expense

 
575

 

 
575

Sales and marketing
8,816

 
24,363

 

 
33,179

General and administrative
15,560

 
17,396

 

 
32,956

Homebuilding income from operations
14,350

 
102,461

 

 
116,811

Equity in income of unconsolidated entities

 

 

 

Other income, net
15

 
11

 

 
26

Homebuilding income before income taxes
14,365

 
102,472

 

 
116,837

Financial Services:
 
 
 
 
 
 
 
Revenues

 
295

 

 
295

Expenses

 
82

 

 
82

Equity in income of unconsolidated entities

 
1,351

 

 
1,351

Financial services income before income taxes

 
1,564

 

 
1,564

Income before income taxes
14,365

 
104,036

 

 
118,401

Equity of net income of subsidiaries
59,725

 

 
(59,725
)
 

Provision for income taxes
(1,826
)
 
(44,286
)
 

 
(46,112
)
Net income
72,264

 
59,750

 
(59,725
)
 
72,289

Net income attributable to noncontrolling interests

 
(25
)
 

 
(25
)
Net income available to common stockholders
$
72,264

 
$
59,725

 
$
(59,725
)
 
$
72,264










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

Net income attributable to noncontrolling interests

 

 

 

Net income available to common stockholders
$
170,529

 
$
136,827

 
$
(136,827
)
 
$
170,529


Condensed Consolidating Statement of Operations (in thousands):
 
 
Nine Months Ended September 30, 2017
 
Issuer
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Homebuilding:
 
 
 
 
 
 
 
Home sales revenue
$
524,159

 
$
1,085,299

 
$

 
$
1,609,458

Land and lot sales revenue

 
69,661

 

 
69,661

Other operations revenue

 
1,752

 

 
1,752

Total revenues
524,159

 
1,156,712

 

 
1,680,871

Cost of home sales
445,501

 
849,062

 

 
1,294,563

Cost of land and lot sales

 
13,299

 

 
13,299

Other operations expense

 
1,726

 

 
1,726

Sales and marketing
22,265

 
69,944

 

 
92,209

General and administrative
49,113

 
52,180

 

 
101,293

Homebuilding income from operations
7,280

 
170,501

 

 
177,781

Equity in income of unconsolidated entities

 
1,646

 

 
1,646

Other income, net
33

 
114

 

 
147

Homebuilding income before income taxes
7,313

 
172,261

 

 
179,574

Financial Services:
 
 
 
 
 
 
 
Revenues

 
881

 

 
881

Expenses

 
233

 

 
233

Equity in income of unconsolidated entities

 
2,911

 

 
2,911

Financial services income before income taxes

 
3,559

 

 
3,559

Income before income taxes
7,313

 
175,820

 

 
183,133

Equity of net income of subsidiaries
103,177

 

 
(103,177
)
 

Benefit (provision) for income taxes
2,681

 
(72,505
)
 

 
(69,824
)
Net income
113,171

 
103,315

 
(103,177
)
 
113,309

Net income attributable to noncontrolling interests

 
(138
)
 

 
(138
)
Net income available to common stockholders
$
113,171

 
$
103,177

 
$
(103,177
)
 
$
113,171

Condensed Consolidating Statement of Cash Flows
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) provided by investing activities
(115,383
)
 
(19,748
)
 
108,780

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

 

 

 
100,000

Repayment of debt
(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) increase 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




Condensed Consolidating Statement of Cash Flows (in thousands):
 
 
Nine Months Ended September 30, 2017
 
Issuer
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Group, Inc.
Cash flows from operating activities:
 
 
 
 
 
 
 
Net cash used in operating activities
$
(60,816
)
 
$
(149,840
)
 
$

 
$
(210,656
)
Cash flows from investing activities:
 
 
 
 
 
 
 
Purchases of property and equipment
(1,473
)
 
(739
)
 

 
(2,212
)
Proceeds from sale of property and equipment

 
6

 

 
6

Investments in unconsolidated entities

 
(934
)
 

 
(934
)
Intercompany
(161,755
)
 

 
161,755

 

Net cash used in investing activities
(163,228
)
 
(1,667
)
 
161,755

 
(3,140
)
Cash flows from financing activities:
 
 
 
 
 
 
 
Borrowings from notes payable
500,000

 

 

 
500,000

Repayment of notes payable
(213,726
)
 

 

 
(213,726
)
Debt issuance costs
(5,932
)
 

 

 
(5,932
)
Distributions to noncontrolling interests

 
(987
)
 

 
(987
)
Proceeds from issuance of common stock under
   share-based awards
3,293

 

 

 
3,293

Minimum tax withholding paid on behalf of employees for restricted stock units
(2,896
)
 

 

 
(2,896
)
Share repurchases
(112,217
)
 

 

 
(112,217
)
Intercompany

 
161,755

 
(161,755
)
 

Net cash provided by financing activities
168,522

 
160,768

 
(161,755
)
 
167,535

Net (decrease) increase in cash and cash equivalents
(55,522
)
 
9,261

 

 
(46,261
)
Cash and cash equivalents - beginning of period
141,568

 
67,089

 

 
208,657

Cash and cash equivalents - end of period
$
86,046

 
$
76,350

 
$

 
$
162,396



v3.10.0.1
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Details) - All HomeBuilding Segments
9 Months Ended
Sep. 30, 2018
segment
Segment Reporting Information [Line Items]  
Number of brands in portfolio 6
Number of states entity operates 8
v3.10.0.1
Organization, Basis of Presentation and Summary of Significant Accounting Policies - Cumulative Effect of Adopting ASC 606 (Details) - USD ($)
$ in Thousands
Sep. 30, 2018
Jan. 01, 2018
Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]      
Real estate inventories $ 3,377,735 $ 3,056,236 $ 3,105,553
Deferred income tax asset 59,113 78,842 76,413
Other assets 107,309 87,604 48,070
Retained earnings 1,297,405 1,126,876 1,134,230
Balance at December 31, 2017 | Adjustments due to ASC 606      
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]      
Real estate inventories 3,424,468   3,105,553
Deferred income tax asset 54,750   76,413
Other assets 63,874   48,070
Retained earnings 1,296,092   $ 1,134,230
Adjustments due to ASC 606 | Adjustments due to ASC 606      
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]      
Real estate inventories (46,733) (49,317)  
Deferred income tax asset 4,363 2,429  
Other assets 43,435 39,534  
Retained earnings $ 1,313 $ (7,354)  
v3.10.0.1
Organization, Basis of Presentation and Summary of Significant Accounting Policies - Impact of Adopting ASC 606 on Consolidated Income Statement and Balance Sheet (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Dec. 31, 2017
Jan. 01, 2018
Disaggregation of Revenue [Line Items]            
Sales and marketing $ 44,854   $ 128,881      
Provision for income taxes (19,661) $ (46,112) (55,457) $ (69,824)    
Net income $ 63,969 $ 72,289 $ 170,529 $ 113,309 $ 187,551  
Diluted earnings per share (in dollars per share) $ 0.43 $ 0.48 $ 1.13 $ 0.73    
Real estate inventories $ 3,377,735   $ 3,377,735   3,105,553 $ 3,056,236
Deferred tax assets, net 59,113   59,113   76,413 78,842
Other assets 107,309   107,309   48,070 87,604
Accrued expenses and other liabilities 313,194   313,194   330,882  
Retained earnings 1,297,405   1,297,405   1,134,230 1,126,876
Adjustments due to ASC 606 | Balances Without Adoption of ASC 606            
Disaggregation of Revenue [Line Items]            
Sales and marketing 38,506   109,346      
Provision for income taxes (18,683)   (53,518)      
Net income $ 60,881   $ 164,582      
Diluted earnings per share (in dollars per share) $ 0.41   $ 1.09      
Real estate inventories $ 3,424,468   $ 3,424,468   3,105,553  
Deferred tax assets, net 54,750   54,750   76,413  
Other assets 63,874   63,874   48,070  
Accrued expenses and other liabilities 313,442   313,442      
Retained earnings 1,296,092   1,296,092   $ 1,134,230  
Adjustments due to ASC 606 | Effect of Change Higher/(Lower)            
Disaggregation of Revenue [Line Items]            
Sales and marketing 6,348   19,535      
Provision for income taxes 978   1,939      
Net income $ 3,088   $ 5,947      
Diluted earnings per share (in dollars per share) $ 0.02   $ 0.04      
Real estate inventories $ (46,733)   $ (46,733)     (49,317)
Deferred tax assets, net 4,363   4,363     2,429
Other assets 43,435   43,435     39,534
Accrued expenses and other liabilities (248)   (248)      
Retained earnings 1,313   1,313     $ (7,354)
Home sales            
Disaggregation of Revenue [Line Items]            
Total revenues 771,768 $ 648,638 2,123,135 $ 1,609,458    
Cost of home sales 607,053 $ 521,918 1,661,651 $ 1,294,563    
Home sales | Adjustments due to ASC 606 | Balances Without Adoption of ASC 606            
Disaggregation of Revenue [Line Items]            
Total revenues 771,784   2,123,387      
Cost of home sales 617,483   1,689,324      
Home sales | Adjustments due to ASC 606 | Effect of Change Higher/(Lower)            
Disaggregation of Revenue [Line Items]            
Total revenues (16)   (252)      
Cost of home sales $ (10,430)   $ (27,673)      
v3.10.0.1
Segment Information - Additional Information (Detail)
9 Months Ended
Sep. 30, 2018
business
segment
Segment Reporting Information [Line Items]  
Number of principal lines of businesses | business 2
Financial services  
Segment Reporting Information [Line Items]  
Number of homebuilding companies 1
All HomeBuilding Segments  
Segment Reporting Information [Line Items]  
Number of homebuilding companies 6
Number of reportable segments 6
v3.10.0.1
Segment Information - Summary of Financial Information Relating to Reportable Segments (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Jan. 01, 2018
Dec. 31, 2017
Segment Reporting Information [Line Items]            
Total revenues $ 775,071 $ 717,735 $ 2,130,050 $ 1,681,752    
Income before income taxes 83,630 118,401 225,986 183,133    
Real estate inventories 3,377,735   3,377,735   $ 3,056,236 $ 3,105,553
Total assets 3,877,104   3,877,104     3,805,381
All HomeBuilding Segments            
Segment Reporting Information [Line Items]            
Real estate inventories 3,377,735   3,377,735     3,105,553
Total assets 3,860,227   3,860,227     3,792,541
Operating segments | Maracay            
Segment Reporting Information [Line Items]            
Real estate inventories 308,887   308,887     243,883
Total assets 330,998   330,998     268,866
Operating segments | Pardee Homes            
Segment Reporting Information [Line Items]            
Real estate inventories 1,361,960   1,361,960     1,245,659
Total assets 1,450,432   1,450,432     1,346,296
Operating segments | Quadrant Homes            
Segment Reporting Information [Line Items]            
Real estate inventories 312,645   312,645     257,887
Total assets 336,665   336,665     312,803
Operating segments | Trendmaker Homes            
Segment Reporting Information [Line Items]            
Real estate inventories 223,576   223,576     204,926
Total assets 250,728   250,728     224,995
Operating segments | TRI Pointe Homes            
Segment Reporting Information [Line Items]            
Real estate inventories 872,137   872,137     855,727
Total assets 1,069,085   1,069,085     1,062,920
Operating segments | Winchester Homes            
Segment Reporting Information [Line Items]            
Real estate inventories 298,530   298,530     297,471
Total assets 324,668   324,668     313,921
Operating segments | Financial services            
Segment Reporting Information [Line Items]            
Total assets 16,877   16,877     12,840
Corporate            
Segment Reporting Information [Line Items]            
Total assets 97,651   97,651     $ 262,740
Homebuilding            
Segment Reporting Information [Line Items]            
Total revenues 774,591 717,440 2,128,896 1,680,871    
Homebuilding | All HomeBuilding Segments            
Segment Reporting Information [Line Items]            
Total revenues 774,591 717,440 2,128,896 1,680,871    
Income before income taxes 81,289 116,837 220,251 179,574    
Homebuilding | Operating segments | Maracay            
Segment Reporting Information [Line Items]            
Total revenues 66,730 78,167 182,134 204,981    
Income before income taxes 6,260 6,431 15,665 14,429    
Homebuilding | Operating segments | Pardee Homes            
Segment Reporting Information [Line Items]            
Total revenues 224,452 231,376 648,208 495,452    
Income before income taxes 36,087 82,407 122,195 128,570    
Homebuilding | Operating segments | Quadrant Homes            
Segment Reporting Information [Line Items]            
Total revenues 66,174 54,781 193,481 135,599    
Income before income taxes 9,269 6,251 25,206 13,104    
Homebuilding | Operating segments | Trendmaker Homes            
Segment Reporting Information [Line Items]            
Total revenues 78,606 53,787 197,730 171,615    
Income before income taxes 7,379 3,233 13,977 9,657    
Homebuilding | Operating segments | TRI Pointe Homes            
Segment Reporting Information [Line Items]            
Total revenues 264,499 239,110 710,561 524,159    
Income before income taxes 30,945 24,382 69,651 39,779    
Homebuilding | Operating segments | Winchester Homes            
Segment Reporting Information [Line Items]            
Total revenues 74,130 60,219 196,782 149,065    
Income before income taxes 4,122 4,284 9,908 6,903    
Homebuilding | Corporate            
Segment Reporting Information [Line Items]            
Income before income taxes (12,773) (10,151) (36,351) (32,868)    
Financial Services            
Segment Reporting Information [Line Items]            
Total revenues 480 295 1,154 881    
Financial Services | Operating segments | Financial services            
Segment Reporting Information [Line Items]            
Income before income taxes $ 2,341 $ 1,564 $ 5,735 $ 3,559    
v3.10.0.1
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, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Numerator:        
Net income available to common stockholders $ 63,969 $ 72,264 $ 170,529 $ 113,171
Denominator:        
Basic weighted-average shares outstanding (shares) 147,725,074 151,214,744 150,377,472 155,238,206
Effect of dilutive shares:        
Stock options and unvested restricted stock units (shares) 592,958 915,081 1,104,984 697,870
Diluted weighted-average shares outstanding (shares) 148,318,032 152,129,825 151,482,456 155,936,076
Earnings per share        
Basic (in dollars per share) $ 0.43 $ 0.48 $ 1.13 $ 0.73
Diluted (in dollars per share) $ 0.43 $ 0.48 $ 1.13 $ 0.73
Antidilutive stock options and unvested restricted stock units not included in diluted earnings per share (in shares) 2,008,612 3,406,498 1,280,500 3,710,674
v3.10.0.1
Receivables - Components of Receivables (Detail) - USD ($)
$ in Thousands
Sep. 30, 2018
Dec. 31, 2017
Receivables [Abstract]    
Escrow proceeds and other accounts receivable, net $ 49,738 $ 89,783
Warranty insurance receivable 35,288 35,817
Total receivables $ 85,026 $ 125,600
v3.10.0.1
Receivables - Additional Information (Details) - USD ($)
$ in Thousands
Sep. 30, 2018
Dec. 31, 2017
Receivables [Abstract]    
Allowance for doubtful accounts $ 540 $ 330
v3.10.0.1
Real Estate Inventories - Summary of Real Estate Inventories (Detail) - USD ($)
$ in Thousands
Sep. 30, 2018
Jan. 01, 2018
Dec. 31, 2017
Real estate inventories owned:      
Homes completed or under construction $ 1,190,986   $ 793,685
Land under development 1,663,818   1,934,556
Land held for future development 201,108   138,651
Model homes 258,401   211,658
Total real estate inventories owned 3,314,313   3,078,550
Real estate inventories not owned:      
Land purchase and land option deposits 63,422   27,003
Total real estate inventories not owned 63,422   27,003
Total real estate inventories 3,377,735 $ 3,056,236 $ 3,105,553
Adjustments due to ASC 606 | Adjustments due to ASC 606      
Real estate inventories not owned:      
Total real estate inventories $ (46,733) $ (49,317)  
v3.10.0.1
Real Estate Inventories - Summary of Interest Incurred, Capitalized and Expensed (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Real Estate [Abstract]        
Interest incurred $ 23,942 $ 22,865 $ 67,089 $ 61,669
Interest capitalized (23,942) (22,865) (67,089) (61,669)
Interest expensed 0 0 0 0
Real Estate Inventory, Capitalized Interest Costs [Roll Forward]        
Capitalized interest in beginning inventory 185,589 173,261 176,348 157,329
Interest capitalized as a cost of inventory 23,942 22,865 67,089 61,669
Interest previously capitalized as a cost of inventory, included in cost of sales (20,293) (15,899) (54,199) (38,771)
Capitalized interest in ending inventory $ 189,238 $ 180,227 $ 189,238 $ 180,227
v3.10.0.1
Real Estate Inventories - Schedule of Land and Lot Option Abandonments and Pre-acquisition Charges (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Dec. 31, 2017
Real Estate [Abstract]          
Real estate inventory impairments $ 0 $ 0 $ 0 $ 267 $ 854
Land and lot option abandonments and pre-acquisition charges 643 374 1,500 936  
Total $ 643 $ 374 $ 1,500 $ 1,203  
v3.10.0.1
Investments in Unconsolidated Entities - Additional Information (Detail)
9 Months Ended
Sep. 30, 2018
investment
Minimum  
Investment Holdings [Line Items]  
Ownership percentage (percent) 4.00%
Maximum  
Investment Holdings [Line Items]  
Ownership percentage (percent) 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
v3.10.0.1
Investments in Unconsolidated Entities - Schedule of Cumulative Investment in Entities on Equity Method, Including Share of Earnings and Losses (Detail) - USD ($)
$ in Thousands
Sep. 30, 2018
Dec. 31, 2017
Schedule of Investments [Line Items]    
Investments in unconsolidated entities $ 4,275 $ 5,870
Limited Liability Company Interests    
Schedule of Investments [Line Items]    
Investments in unconsolidated entities 1,563 2,687
General Partnership Interests    
Schedule of Investments [Line Items]    
Investments in unconsolidated entities $ 2,712 $ 3,183
v3.10.0.1
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, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Dec. 31, 2017
Assets          
Total assets $ 115,403   $ 115,403   $ 119,175
Liabilities and equity          
Accounts payable and other liabilities 9,116   9,116   12,208
Company’s equity 4,275   4,275   5,870
Outside interests' equity 102,012   102,012   101,097
Total liabilities and equity 115,403   115,403   119,175
Net sales 6,185 $ 5,404 19,900 $ 15,722  
Other operating expense (2,951) (3,532) (13,510) (9,714)  
Other income 1 36 85 60  
Net income 3,235 1,908 6,475 6,068  
Company’s equity in income of unconsolidated entities 2,001 $ 1,351 4,588 $ 4,557  
Cash          
Assets          
Total assets 11,627   11,627   11,678
Receivables          
Assets          
Total assets 3,990   3,990   6,564
Real Estate Inventories          
Assets          
Total assets 98,961   98,961   99,997
Other Assets          
Assets          
Total assets $ 825   $ 825   $ 936
v3.10.0.1
Variable Interest Entities - Summary of Interests in Land Option Agreements (Detail) - USD ($)
$ in Thousands
Sep. 30, 2018
Dec. 31, 2017
Variable Interest Entity [Line Items]    
Deposits $ 63,422 $ 27,003
Remaining Purchase Price 732,802 381,939
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 35,348 3,418
Remaining Purchase Price 229,219 112,590
Other land option agreements    
Variable Interest Entity [Line Items]    
Deposits 28,074 23,585
Remaining Purchase Price $ 503,583 $ 269,349
v3.10.0.1
Variable Interest Entities - Additional Information (Detail) - USD ($)
$ in Millions
Sep. 30, 2018
Dec. 31, 2017
Other land option agreements    
Variable Interest Entity [Line Items]    
Capitalized pre-acquisition costs $ 8.9 $ 4.5
v3.10.0.1
Goodwill and Other Intangible Assets - Schedule of Goodwill and Other Intangible Assets (Detail) - USD ($)
$ in Thousands
Sep. 30, 2018
Dec. 31, 2017
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 (6,723) (6,322)
Trade names, Net Carrying Amount 21,256 21,657
Net Carrying Amount $ 160,560 $ 160,961
v3.10.0.1
Goodwill and Other Intangible Assets - Additional Information (Detail)
$ in Thousands
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2018
USD ($)
asset
Sep. 30, 2017
USD ($)
Sep. 30, 2018
USD ($)
asset
Sep. 30, 2017
USD ($)
Dec. 31, 2017
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 $ 3,956   $ 3,956   $ 4,400
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     7 years 4 months 24 days   8 years 2 months 12 days
Amortization expense 134 $ 134 $ 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
v3.10.0.1
Goodwill and Other Intangible Assets - Schedule of Expected Amortization of Intangible Asset (Detail) - USD ($)
$ in Thousands
Sep. 30, 2018
Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]    
Remainder of 2018 $ 133  
2019 534  
2020 534  
2021 534  
2022 534  
Thereafter 1,687  
Total $ 3,956 $ 4,400
v3.10.0.1
Other Assets - Schedule of Other Assets (Detail) - USD ($)
$ in Thousands
Sep. 30, 2018
Jan. 01, 2018
Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]      
Prepaid expenses $ 27,043   $ 13,040
Refundable fees and other deposits 16,747   16,012
Development rights, held for future use or sale 1,741   2,569
Deferred loan costs - unsecured revolving credit facility 2,675   3,427
Operating properties and equipment, net 56,259   10,528
Other 2,844   2,494
Total 107,309 $ 87,604 $ 48,070
Adjustments due to ASC 606 | Adjustments due to ASC 606      
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]      
Total $ 43,435 $ 39,534  
v3.10.0.1
Accrued Expenses and Other Liabilities - Schedule of Accrued Expenses and Other Liabilities (Detail) - USD ($)
$ in Thousands
Sep. 30, 2018
Jun. 30, 2018
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Dec. 31, 2016
Payables and Accruals [Abstract]            
Accrued payroll and related costs $ 28,856   $ 36,863      
Warranty reserves 73,995 $ 72,342 69,373 $ 80,922 $ 80,128 $ 83,135
Estimated cost for completion of real estate inventories 102,225   105,864      
Customer deposits 26,811   19,568      
Income tax liability to Weyerhaeuser 8,321   7,706      
Accrued income taxes payable 0   30,672      
Liability for uncertain tax positions 1,458   1,458      
Accrued interest 23,146   11,014      
Accrued insurance expense 5,444   1,187      
Other tax liability 24,647   33,671      
Other 18,291   13,506      
Total $ 313,194   $ 330,882      
v3.10.0.1
Senior Notes and Unsecured Revolving Credit Facility - Schedule of Senior Notes (Detail) - Senior Notes - USD ($)
$ in Thousands
Sep. 30, 2018
Dec. 31, 2017
Debt Instrument [Line Items]    
Discount and deferred loan costs $ (22,871) $ (28,698)
Total 1,419,198 1,471,302
4.375% Senior notes due 2019    
Debt Instrument [Line Items]    
Senior notes (gross) 392,069 450,000
4.875% Senior notes due July 1, 2021    
Debt Instrument [Line Items]    
Senior notes (gross) 300,000 300,000
5.875% Senior notes due 2024    
Debt Instrument [Line Items]    
Senior notes (gross) 450,000 450,000
5.250% Senior notes due 2027    
Debt Instrument [Line Items]    
Senior notes (gross) $ 300,000 $ 300,000
v3.10.0.1
Senior Notes and Unsecured Revolving Credit Facility - Schedule of Senior Notes (Phantoms) (Detail) - Senior Notes
9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
May 31, 2016
4.375% Senior notes due 2019      
Debt Instrument [Line Items]      
Interest rate on senior note (percent) 4.375%    
Maturity date of senior note Jun. 15, 2019    
4.875% Senior notes due July 1, 2021      
Debt Instrument [Line Items]      
Interest rate on senior note (percent) 4.875%   4.875%
Maturity date of senior note Jul. 01, 2021    
5.875% Senior notes due 2024      
Debt Instrument [Line Items]      
Interest rate on senior note (percent) 5.875%    
Maturity date of senior note Jun. 15, 2024    
5.250% Senior notes due 2027      
Debt Instrument [Line Items]      
Interest rate on senior note (percent) 5.25% 5.25%  
Maturity date of senior note Jun. 01, 2027    
v3.10.0.1
Senior Notes and Unsecured Revolving Credit Facility - Additional Information (Detail) - USD ($)
1 Months Ended 3 Months Ended 9 Months Ended
Jun. 20, 2017
Jun. 30, 2017
May 31, 2016
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Dec. 31, 2017
Jun. 19, 2017
Debt Instrument [Line Items]                  
Repurchased principal           $ 57,931,000 $ 213,726,000    
Capitalization of deferred finance costs       $ 2,675,000   2,675,000   $ 3,427,000  
Accrued interest       23,146,000   23,146,000   11,014,000  
Notes payable and other borrowings       100,000,000   100,000,000   0  
Interest incurred       23,942,000 $ 22,865,000 67,089,000 61,669,000    
Amortization of deferred financing costs       2,000,000 2,000,000 6,100,000 5,600,000    
Senior Notes                  
Debt Instrument [Line Items]                  
Proceeds from issuance of senior notes, net           861,300,000      
Capitalization of deferred finance costs       15,800,000   15,800,000      
Accrued interest       $ 21,900,000   $ 21,900,000   10,600,000  
5.250% Senior notes due 2027 | Senior Notes                  
Debt Instrument [Line Items]                  
Aggregate principal amount         $ 300,000,000   $ 300,000,000    
Interest rate on debt instrument (percent)       5.25% 5.25% 5.25% 5.25%    
Debt issuance, percentage of aggregate principal (percent)   100.00%              
Proceeds from issuance of senior notes, net   $ 296,300,000              
Maturity date of senior note           Jun. 01, 2027      
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            
Maturity date of senior note           Jul. 01, 2021      
4.375% Senior notes due 2019 | Senior Notes                  
Debt Instrument [Line Items]                  
Interest rate on debt instrument (percent)       4.375%   4.375%      
Debt issuance, percentage of aggregate principal (percent)           98.89%      
Maturity date of senior note           Jun. 15, 2019      
5.875% Senior notes due 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%      
Maturity date of senior note           Jun. 15, 2024      
Repurchased principal       $ 36,200,000   $ 57,900,000      
Unsecured revolving credit facility | Unsecured revolving credit facility                  
Debt Instrument [Line Items]                  
Capitalization of deferred finance costs       2,700,000   2,700,000      
Accrued interest       575,000   575,000   426,000  
Maturity date extension 2 years                
Unsecured revolving credit facility $ 600,000,000               $ 625,000,000
Notes payable and other borrowings       100,000,000   100,000,000      
Available secured revolving credit facility       486,800,000   $ 486,800,000      
Unsecured revolving credit facility | Unsecured revolving credit facility | Minimum                  
Debt Instrument [Line Items]                  
Debt instrument variable interest rate (percent)           1.25%      
Unsecured revolving credit facility | Unsecured revolving credit facility | Maximum                  
Debt Instrument [Line Items]                  
Debt instrument variable interest rate (percent)           2.00%      
Unsecured revolving credit facility | Letters of credit                  
Debt Instrument [Line Items]                  
Unsecured revolving credit facility       75,000,000   $ 75,000,000      
Outstanding letters of credit       $ 13,200,000   $ 13,200,000   $ 7,700,000  
v3.10.0.1
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, 2018
Dec. 31, 2017
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Senior notes $ 1,419,198 $ 1,471,302
Deferred loan costs - unsecured revolving credit facility 2,675 3,427
Level 2 | Recurring | Book Value    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Senior notes 1,435,036 1,491,229
Deferred loan costs - unsecured revolving credit facility 15,800 19,900
Level 2 | Recurring | Fair Value    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Senior notes $ 1,406,819 $ 1,552,335
v3.10.0.1
Fair Value Disclosures - Fair Value of Nonfinancial Assets (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Dec. 31, 2017
Jan. 01, 2018
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]            
Impairment Charge $ 0 $ 0 $ 0 $ 267 $ 854  
Fair Value Net of Impairment 3,377,735   3,377,735   3,105,553 $ 3,056,236
Fair Value | Nonrecurring            
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]            
Fair Value Net of Impairment $ 0   $ 0   $ 12,950  
v3.10.0.1
Commitments and Contingencies - Additional Information (Detail) - USD ($)
Sep. 30, 2018
Dec. 31, 2017
Commitment And Contingencies [Line Items]    
Outstanding warranty insurance receivables $ 35,288,000 $ 35,817,000
Estimated remaining liabilities related to surety bonds 18,291,000 13,506,000
Surety bonds    
Commitment And Contingencies [Line Items]    
Outstanding surety bonds 683,500,000 627,100,000
Estimated remaining liabilities related to surety bonds 398,800,000 537,400,000
Legal Reserve    
Commitment And Contingencies [Line Items]    
Legal reserves 0 $ 0
Pending Litigation | Scripps Health v Pardee Homes | Legal Reserve    
Commitment And Contingencies [Line Items]    
Legal reserves $ 0  
v3.10.0.1
Commitments and Contingencies - Schedule of Warranty Reserves (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Movement in Standard Product Warranty Accrual [Roll Forward]        
Warranty reserves, beginning of period $ 72,342 $ 80,128 $ 69,373 $ 83,135
Warranty reserves accrued 6,257 4,448 17,669 10,122
Adjustments to pre-existing reserves   400   1,021
Warranty expenditures (4,604) (4,054) (13,047) (13,356)
Warranty reserves, end of period $ 73,995 $ 80,922 $ 73,995 $ 80,922
v3.10.0.1
Stock-Based Compensation - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
9 Months Ended
Jul. 23, 2018
May 07, 2018
Apr. 30, 2018
Feb. 22, 2018
Feb. 15, 2018
May 30, 2017
Feb. 27, 2017
Mar. 01, 2016
Sep. 30, 2018
Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Unrecognized stock based compensation related to all stock-based awards                 $ 20.7  
Weighted average period, expense to recognize                 1 year 9 months  
Restricted Stock Units (RSUs)                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Restricted stock units, granted (shares)                 1,131,231  
Fair value of RSUs (in dollars per share)                 $ 11.05 $ 9.80
RSUs that vested in period (shares)                 1,102,727  
Restricted Stock Units (RSUs) | Performance-based RSUs | Minimum                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Allocation amount percentage (percent)       0.00%       0.00%    
Restricted Stock Units (RSUs) | Performance-based RSUs | Maximum                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Allocation amount percentage (percent)       100.00%       100.00%    
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)   4,258   633,107     990,279      
Restricted stock units, vesting period       3 years     3 years      
Closing stock price on date of grant (in dollars per share)   $ 17.61   $ 16.94     $ 12.10      
Restricted Stock Units (RSUs) | Chief Executive Officer                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Restricted stock units, granted (shares)       184,179     257,851      
Restricted Stock Units (RSUs) | President                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Restricted stock units, granted (shares)       177,095     247,933      
Restricted Stock Units (RSUs) | Chief Financial Officer                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Restricted stock units, granted (shares)       85,005     119,008      
RSUs that vested in period (shares)         197,898          
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)           55,865        
Closing stock price on date of grant (in dollars per share)           $ 12.53        
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) | 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)       $ 16.94     $ 12.10      
Fair value of RSUs (in dollars per share)       $ 10.97     $ 6.16      
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)                 6,453,896  
v3.10.0.1
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, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]        
Total stock-based compensation $ 3,765 $ 3,887 $ 10,955 $ 11,631
v3.10.0.1
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, 2018
Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]    
Options, Outstanding, Balance (shares) 1,154,658  
Options, Granted (shares) 0  
Options, Exercised (shares) (171,747)  
Options, Forfeited (shares) (29,006)  
Options, Outstanding, Balance (shares) 953,905 1,154,658
Options exercisable at end of period (shares) 953,905  
Weighted Average Exercise Price, Outstanding, Balance (in dollars per share) $ 14.16  
Weighted Average Exercise Price, Granted (in dollars per share) 0.00  
Weighted Average Exercise Price, Exercised (in dollars per share) 12.05  
Weighted Average Exercise Price, Forfeited (in dollars per share) 12.73  
Weighted Average Exercise Price, Outstanding, Balance (in dollars per share) 14.58 $ 14.16
Weighted Average Exercise Price, Options exercisable at end of period (in dollars per share) $ 14.58  
Weighted Average Remaining Contractual Life, Outstanding 4 years 4 months 24 days 4 years 10 months 24 days
Weighted Average Remaining Contractual Life, Options exercisable at end of period 4 years 4 months 24 days  
Aggregate Intrinsic Value, Outstanding, Balance $ 510 $ 4,350
Aggregate Intrinsic Value, Outstanding, Options exercisable at end of period $ 510  
v3.10.0.1
Stock-Based Compensation - Summary of Restricted Stock Units (Detail) - Restricted Stock Units (RSUs) - USD ($)
$ / shares in Units, $ in Thousands
9 Months Ended
Sep. 30, 2018
Dec. 31, 2017
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) 4,307,592  
Nonvested Restricted Stock Units, Granted (shares) 1,131,231  
Nonvested Restricted Stock Units, Vested (shares) (1,102,727)  
Nonvested Restricted Stock Units, Forfeited (shares) (993,133)  
Nonvested Restricted Stock Units, Ending Balance (shares) 3,342,963  
Weighted Average Grant Date Fair Value, Beginning Balance (in dollars per share) $ 9.80  
Weighted Average Grant Date Fair Value, Granted (in dollars per share) 15.77  
Weighted Average Grant Date Fair Value, Vested (in dollars per share) 12.47  
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) 9.40  
Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share) $ 11.05  
Aggregate Intrinsic Value, Balance $ 41,453 $ 77,192
Aggregate Intrinsic Value, Granted $ 0  
v3.10.0.1
Income Taxes - Additional Information (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2018
Dec. 31, 2017
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Jan. 01, 2018
Income Tax Contingency [Line Items]            
Deferred tax assets, net $ 59,113 $ 76,413   $ 59,113   $ 78,842
Valuation allowance related to net deferred tax assets 3,500 3,500   3,500    
Provision for income taxes 19,661   $ 46,112 55,457 $ 69,824  
Liability for uncertain tax positions 1,458 1,458   1,458    
Income tax charge (benefit) related to the re-measurement of deferred tax assets (714) 22,000        
Accrued Expenses And Other Liabilities | Weyerhaeuser            
Income Tax Contingency [Line Items]            
Income tax liability $ 8,300 $ 7,700   $ 8,300    
v3.10.0.1
Related Party Transactions - Additional Information (Detail) - USD ($)
9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Related Party Transactions [Abstract]    
Related party transactions $ 0 $ 0
v3.10.0.1
Supplemental Disclosure to Consolidated Statements of Cash Flows - Supplemental Disclosure to Consolidated Statements of Cash Flows (Detail) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Supplemental disclosure of cash flow information:    
Interest, net of amounts capitalized of $61,669 and $50,030 $ 0 $ 0
Income taxes 81,417 44,784
Supplemental disclosures of noncash activities:    
Amortization of senior note discount capitalized to real estate inventory 1,738 1,525
Increase in other assets related to adoption of ASC 606 39,534 0
Amortization of deferred loan costs capitalized to real estate inventory 4,841 4,105
Effect of net consolidation and de-consolidation of variable interest entities:    
Decrease in consolidated real estate inventory not owned 0 (14,660)
Decrease in noncontrolling interests $ 0 $ 14,660
v3.10.0.1
Supplemental Disclosure to Consolidated Statements of Cash Flows - Supplemental Disclosure to Consolidated Statements of Cash Flows Phantoms (Details) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Supplemental Cash Flow Elements [Abstract]    
Interest capitalized $ 48,862 $ 61,669
v3.10.0.1
Supplemental Guarantor Information - Condensed Consolidating Balance Sheet (Detail) - USD ($)
$ in Thousands
Sep. 30, 2018
Jan. 01, 2018
Dec. 31, 2017
Sep. 30, 2017
Dec. 31, 2016
Assets          
Cash and cash equivalents $ 83,086   $ 282,914 $ 162,396 $ 208,657
Receivables 85,026   125,600    
Intercompany receivables 0   0    
Real estate inventories 3,377,735 $ 3,056,236 3,105,553    
Investments in unconsolidated entities 4,275   5,870    
Goodwill and other intangible assets, net 160,560   160,961    
Investments in subsidiaries 0   0    
Deferred tax assets, net 59,113 78,842 76,413    
Other assets 107,309 $ 87,604 48,070    
Total assets 3,877,104   3,805,381    
Liabilities          
Accounts payable 83,711   72,870    
Intercompany payables 0   0    
Accrued expenses and other liabilities 313,194   330,882    
Unsecured revolving credit facility 100,000   0    
Senior notes 1,419,198   1,471,302    
Total liabilities 1,916,103   1,875,054    
Equity          
Total stockholders’ equity 1,960,397   1,929,722    
Noncontrolling interests 604   605    
Total equity 1,961,001   1,930,327   1,848,510
Total liabilities and equity 3,877,104   3,805,381    
Reporting Entity | Guarantor Subsidiaries          
Assets          
Cash and cash equivalents 62,856   106,230 76,350 67,089
Receivables 51,102   69,579    
Intercompany receivables 0   0    
Real estate inventories 2,505,598   2,249,826    
Investments in unconsolidated entities 4,275   5,870    
Goodwill and other intangible assets, net 3,956   4,357    
Investments in subsidiaries 0   0    
Deferred tax assets, net 45,793   65,521    
Other assets 98,476   44,605    
Total assets 2,772,056   2,545,988    
Liabilities          
Accounts payable 70,178   63,506    
Intercompany payables 906,894   794,550    
Accrued expenses and other liabilities 216,819   238,637    
Unsecured revolving credit facility 0        
Senior notes 0   0    
Total liabilities 1,193,891   1,096,693    
Equity          
Total stockholders’ equity 1,577,561   1,448,690    
Noncontrolling interests 604   605    
Total equity 1,578,165   1,449,295    
Total liabilities and equity 2,772,056   2,545,988    
Reporting Entity | Issuer          
Assets          
Cash and cash equivalents 20,230   176,684 86,046 141,568
Receivables 33,924   56,021    
Intercompany receivables 906,894   794,550    
Real estate inventories 872,137   855,727    
Investments in unconsolidated entities 0   0    
Goodwill and other intangible assets, net 156,604   156,604    
Investments in subsidiaries 1,577,561   1,448,690    
Deferred tax assets, net 13,320   10,892    
Other assets 8,833   3,465    
Total assets 3,589,503   3,502,633    
Liabilities          
Accounts payable 13,533   9,364    
Intercompany payables 0   0    
Accrued expenses and other liabilities 96,375   92,245    
Unsecured revolving credit facility 100,000        
Senior notes 1,419,198   1,471,302    
Total liabilities 1,629,106   1,572,911    
Equity          
Total stockholders’ equity 1,960,397   1,929,722    
Noncontrolling interests 0   0    
Total equity 1,960,397   1,929,722    
Total liabilities and equity 3,589,503   3,502,633    
Consolidating Adjustments          
Assets          
Cash and cash equivalents 0   0 $ 0 $ 0
Receivables 0   0    
Intercompany receivables (906,894)   (794,550)    
Real estate inventories 0   0    
Investments in unconsolidated entities 0   0    
Goodwill and other intangible assets, net 0   0    
Investments in subsidiaries (1,577,561)   (1,448,690)    
Deferred tax assets, net 0   0    
Other assets 0   0    
Total assets (2,484,455)   (2,243,240)    
Liabilities          
Accounts payable 0   0    
Intercompany payables (906,894)   (794,550)    
Accrued expenses and other liabilities 0   0    
Unsecured revolving credit facility 0        
Senior notes 0   0    
Total liabilities (906,894)   (794,550)    
Equity          
Total stockholders’ equity (1,577,561)   (1,448,690)    
Noncontrolling interests 0   0    
Total equity (1,577,561)   (1,448,690)    
Total liabilities and equity $ (2,484,455)   $ (2,243,240)    
v3.10.0.1
Supplemental Guarantor Information - Condensed Consolidating Statement of Operations (Detail) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Dec. 31, 2017
Condensed Financial Statements Captions [Line Items]          
Total revenues $ 775,071 $ 717,735 $ 2,130,050 $ 1,681,752  
Other operations expense 590 575 1,781 1,726  
Sales and marketing 44,854 33,179 128,881 92,209  
General and administrative 38,109 32,956 111,406 101,293  
Homebuilding income from operations 81,751 116,811 221,014 177,781  
Equity in income (loss) of unconsolidated entities 15 0 (384) 1,646  
Other income, net (477) 26 (379) 147  
Homebuilding income before income taxes 81,289 116,837 220,251 179,574  
Equity in income of unconsolidated entities 1,986 1,351 4,972 2,911  
Financial services income before income taxes 2,341 1,564 5,735 3,559  
Income before income taxes 83,630 118,401 225,986 183,133  
Equity of net income of subsidiaries 0 0 0 0  
Provision for income taxes (19,661) (46,112) (55,457) (69,824)  
Net income 63,969 72,289 170,529 113,309 $ 187,551
Net income attributable to noncontrolling interests 0 (25) 0 (138)  
Net income available to common stockholders 63,969 72,264 170,529 113,171  
Reporting Entity | Guarantor Subsidiaries          
Condensed Financial Statements Captions [Line Items]          
Other operations expense 590 575 1,781 1,726  
Sales and marketing 33,420 24,363 94,938 69,944  
General and administrative 18,682 17,396 55,879 52,180  
Homebuilding income from operations 62,872 102,461 186,775 170,501  
Equity in income (loss) of unconsolidated entities 15 0 (384) 1,646  
Other income, net 95 11 158 114  
Homebuilding income before income taxes 62,982 102,472 186,549 172,261  
Equity in income of unconsolidated entities 1,986 1,351 4,972 2,911  
Financial services income before income taxes 2,341 1,564 5,735 3,559  
Income before income taxes 65,323 104,036 192,284 175,820  
Equity of net income of subsidiaries 0 0 0 0  
Provision for income taxes (19,661) (44,286) (55,457) (72,505)  
Net income 45,662 59,750 136,827 103,315  
Net income attributable to noncontrolling interests 0 (25) 0 (138)  
Net income available to common stockholders 45,662 59,725 136,827 103,177  
Reporting Entity | Issuer          
Condensed Financial Statements Captions [Line Items]          
Other operations expense 0 0 0 0  
Sales and marketing 11,434 8,816 33,943 22,265  
General and administrative 19,427 15,560 55,527 49,113  
Homebuilding income from operations 18,879 14,350 34,239 7,280  
Equity in income (loss) of unconsolidated entities 0 0 0 0  
Other income, net (572) 15 (537) 33  
Homebuilding income before income taxes 18,307 14,365 33,702 7,313  
Equity in income of unconsolidated entities 0 0 0 0  
Financial services income before income taxes 0 0 0 0  
Income before income taxes 18,307 14,365 33,702 7,313  
Equity of net income of subsidiaries 45,662 59,725 136,827 103,177  
Provision for income taxes 0 (1,826) 0 2,681  
Net income 63,969 72,264 170,529 113,171  
Net income attributable to noncontrolling interests 0 0 0 0  
Net income available to common stockholders 63,969 72,264 170,529 113,171  
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 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 (45,662) (59,725) (136,827) (103,177)  
Provision for income taxes 0 0 0 0  
Net income (45,662) (59,725) (136,827) (103,177)  
Net income attributable to noncontrolling interests 0 0 0 0  
Net income available to common stockholders (45,662) (59,725) (136,827) (103,177)  
Home sales          
Condensed Financial Statements Captions [Line Items]          
Home sales and Land and lot sales revenue 771,768 648,638 2,123,135 1,609,458  
Cost of sales 607,053 521,918 1,661,651 1,294,563  
Home sales | Reporting Entity | Guarantor Subsidiaries          
Condensed Financial Statements Captions [Line Items]          
Home sales and Land and lot sales revenue 507,269 409,528 1,412,574 1,085,299  
Cost of sales 392,294 321,534 1,074,799 849,062  
Home sales | Reporting Entity | Issuer          
Condensed Financial Statements Captions [Line Items]          
Home sales and Land and lot sales revenue 264,499 239,110 710,561 524,159  
Cost of sales 214,759 200,384 586,852 445,501  
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 0 0 0 0  
Land and lots          
Condensed Financial Statements Captions [Line Items]          
Home sales and Land and lot sales revenue 2,225 68,218 3,966 69,661  
Cost of sales 2,234 12,001 4,163 13,299  
Land and lots | Reporting Entity | Guarantor Subsidiaries          
Condensed Financial Statements Captions [Line Items]          
Home sales and Land and lot sales revenue 2,225 68,218 3,966 69,661  
Cost of sales 2,234 12,001 4,163 13,299  
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 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 0 0 0 0  
Other operations          
Condensed Financial Statements Captions [Line Items]          
Total revenues 598 584 1,795 1,752  
Other operations | Reporting Entity | Guarantor Subsidiaries          
Condensed Financial Statements Captions [Line Items]          
Total revenues 598 584 1,795 1,752  
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 774,591 717,440 2,128,896 1,680,871  
Homebuilding | Reporting Entity | Guarantor Subsidiaries          
Condensed Financial Statements Captions [Line Items]          
Total revenues 510,092 478,330 1,418,335 1,156,712  
Homebuilding | Reporting Entity | Issuer          
Condensed Financial Statements Captions [Line Items]          
Total revenues 264,499 239,110 710,561 524,159  
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 480 295 1,154 881  
Total revenues 480 295 1,154 881  
Cost of sales 125 82 391 233  
Financial Services | Reporting Entity | Guarantor Subsidiaries          
Condensed Financial Statements Captions [Line Items]          
Home sales and Land and lot sales revenue 480 295 1,154 881  
Cost of sales 125 82 391 233  
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 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 $ 0 $ 0 $ 0 $ 0  
v3.10.0.1
Supplemental Guarantor Information - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Cash flows from operating activities:    
Net cash used in operating activities $ (72,090) $ (210,656)
Cash flows from investing activities:    
Purchases of property and equipment (24,547) (2,212)
Proceeds from sale of property and equipment 8 6
Investments in unconsolidated entities (1,812) (934)
Intercompany 0 0
Net cash used in investing activities (26,351) (3,140)
Cash flows from financing activities:    
Borrowings from debt 100,000 500,000
Repayment of debt (57,931) (213,726)
Debt issuance costs 0 (5,932)
Distributions to noncontrolling interests (1) (987)
Proceeds from issuance of common stock under share-based awards 1,943 3,293
Minimum tax withholding paid on behalf of employees for share-based awards (6,049) (2,896)
Share repurchases (139,349) (112,217)
Intercompany 0 0
Net cash (used in) provided by financing activities (101,387) 167,535
Net decrease in cash and cash equivalents (199,828) (46,261)
Cash and cash equivalents - beginning of period 282,914 208,657
Cash and cash equivalents - end of period 83,086 162,396
Reporting Entity | Guarantor Subsidiaries    
Cash flows from operating activities:    
Net cash used in operating activities (132,405) (149,840)
Cash flows from investing activities:    
Purchases of property and equipment (17,944) (739)
Proceeds from sale of property and equipment 8 6
Investments in unconsolidated entities (1,812) (934)
Intercompany 0 0
Net cash used in investing activities (19,748) (1,667)
Cash flows from financing activities:    
Borrowings from debt 0 0
Repayment of debt 0 0
Debt issuance costs   0
Distributions to noncontrolling interests (1) (987)
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 108,780 161,755
Net cash (used in) provided by financing activities 108,779 160,768
Net decrease in cash and cash equivalents (43,374) 9,261
Cash and cash equivalents - beginning of period 106,230 67,089
Cash and cash equivalents - end of period 62,856 76,350
Reporting Entity | Issuer    
Cash flows from operating activities:    
Net cash used in operating activities 60,315 (60,816)
Cash flows from investing activities:    
Purchases of property and equipment (6,603) (1,473)
Proceeds from sale of property and equipment 0 0
Investments in unconsolidated entities 0 0
Intercompany (108,780) (161,755)
Net cash used in investing activities (115,383) (163,228)
Cash flows from financing activities:    
Borrowings from debt 100,000 500,000
Repayment of debt (57,931) (213,726)
Debt issuance costs   (5,932)
Distributions to noncontrolling interests 0 0
Proceeds from issuance of common stock under share-based awards 1,943 3,293
Minimum tax withholding paid on behalf of employees for share-based awards (6,049) (2,896)
Share repurchases (139,349) (112,217)
Intercompany 0 0
Net cash (used in) provided by financing activities (101,386) 168,522
Net decrease in cash and cash equivalents (156,454) (55,522)
Cash and cash equivalents - beginning of period 176,684 141,568
Cash and cash equivalents - end of period 20,230 86,046
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 108,780 161,755
Net cash used in investing activities 108,780 161,755
Cash flows from financing activities:    
Borrowings from debt 0 0
Repayment of debt 0 0
Debt issuance costs   0
Distributions to noncontrolling interests 0 0
Proceeds from issuance of common stock under share-based awards 0 0
Minimum tax withholding paid on behalf of employees for share-based awards 0 0
Share repurchases 0 0
Intercompany (108,780) (161,755)
Net cash (used in) provided by financing activities (108,780) (161,755)
Net decrease in cash and cash equivalents 0 0
Cash and cash equivalents - beginning of period 0 0
Cash and cash equivalents - end of period $ 0 $ 0