Document and Entity Information (USD $)

12 Months Ended

Dec. 31, 2017

Feb. 8, 2018

Jun. 30, 2017

Document And Entity Information [Abstract]

Document Type

10-K

Amendment Flag

false

Document Period End Date

Dec. 31, 2017

Document Fiscal Year Focus

2017

Document Fiscal Period Focus

FY

Trading Symbol

TPH

Entity Registrant Name

TRI Pointe Group, Inc.

Entity Central Index Key

0001561680

Current Fiscal Year End Date

--12-31

Entity Well-known Seasoned Issuer

Yes

Entity Current Reporting Status

Yes

Entity Voluntary Filers

No

Entity Filer Category

Large Accelerated Filer

Entity Common Stock, Shares Outstanding

151,212,457

Entity Public Float

$ 1,950,059,287

Consolidated Balance Sheets (USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

Assets

Cash and cash equivalents

$ 282,914

$ 208,657

Receivables

125,600

82,500

Real estate inventories

3,105,553

2,910,627

Investments in unconsolidated entities

5,870

17,546

Goodwill and other intangible assets, net

160,961

161,495

Deferred tax assets, net

76,413

123,223

Other assets

48,070

60,592

Total assets

3,805,381

3,564,640

Liabilities

Accounts payable

72,870

70,252

Accrued expenses and other liabilities

330,882

263,845

Unsecured revolving credit facility

0

200,000

Seller financed loans

0

13,726

Senior notes, net

1,471,302

1,168,307

Total liabilities

1,875,054

1,716,130

Commitments and contingencies

Stockholders’ Equity:

Preferred stock, $0.01 par value, 50,000,000 shares authorized; no shares issued and outstanding as of December 31, 2017 and 2016, respectively

0

Common stock, $0.01 par value, 500,000,000 shares authorized; 151,162,999 and 158,626,229 shares issued and outstanding at December 31, 2017 and December 31, 2016, respectively

1,512

1,586

Additional paid-in capital

793,980

880,822

Retained earnings

1,134,230

947,039

Total stockholders’ equity

1,929,722

1,829,447

Noncontrolling interests

605

19,063

Total equity

1,930,327

1,848,510

Total liabilities and equity

$ 3,805,381

$ 3,564,640

Consolidated Balance Sheets (Parenthetical) (USD $)

Dec. 31, 2017

Dec. 31, 2016

Statement of Financial Position [Abstract]

Preferred stock, par value (in dollars per share)

$ 0.01

Preferred stock authorized (shares)

50,000,000

Preferred stock issued (shares)

0

Preferred stock outstanding (shares)

0

Common stock, par value (in dollars per share)

$ 0.01

Common stock authorized (shares)

500,000,000

Common stock issued (shares)

151,162,999

158,626,229

Common stock outstanding (shares)

151,162,999

158,626,229

Consolidated Statements of Operations (USD $)

In Thousands, except Share data, unless otherwise specified

3 Months Ended

12 Months Ended

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2016

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Homebuilding:

Home sales revenue

$ 2,732,299

$ 2,329,336

$ 2,291,264

Land and lot sales revenue

74,269

72,272

101,284

Other operations revenue

2,333

2,314

7,601

Total revenues

1,128,520

717,735

570,626

393,391

773,753

582,029

625,222

424,138

2,808,901

2,403,922

2,400,149

Cost of home sales

2,173,251

1,836,327

1,808,776

Cost of land and lot sales

14,888

17,367

35,089

Other operations expense

2,298

2,247

4,360

Sales and marketing

137,066

127,903

116,217

General and administrative

137,764

124,119

120,825

Homebuilding income from operations

343,634

295,959

314,882

Equity in (loss) income of unconsolidated entities

(11,433)

179

1,460

Other income, net

151

312

858

Homebuilding income before income taxes

332,352

296,450

317,200

Financial Services:

Revenues

1,371

1,220

1,010

Expenses

331

253

181

Equity in income of unconsolidated entities

6,426

4,810

1,231

Financial services income before income taxes

7,466

5,777

2,060

Income before income taxes

339,818

302,227

319,260

Provision for income taxes

(152,267)

(106,094)

(112,079)

Net income

74,242

72,289

32,803

8,217

58,085

35,145

74,193

28,710

187,551

196,133

207,181

Net income attributable to noncontrolling interests

(222)

(25)

(89)

(24)

(224)

(311)

(267)

(160)

(360)

(962)

(1,720)

Net income available to common stockholders

$ 74,020

$ 72,264

$ 32,714

$ 8,193

$ 57,861

$ 34,834

$ 73,926

$ 28,550

$ 187,191

$ 195,171

$ 205,461

Earnings per share

Basic (in dollars per share)

$ 0.49

$ 0.48

$ 0.21

$ 0.05

$ 0.36

$ 0.22

$ 0.46

$ 0.18

$ 1.21

$ 1.27

Diluted (in dollars per share)

$ 0.49

$ 0.48

$ 0.21

$ 0.05

$ 0.36

$ 0.22

$ 0.46

$ 0.18

$ 1.21

$ 1.27

Weighted average shares outstanding

Basic (shares)

154,134,411

160,859,782

161,692,152

Diluted (shares)

155,085,366

161,381,499

162,319,758

Consolidated Statements of Equity (USD $)

In Thousands, except Share data

Total

Common Stock [Member]

Additional Paid-in Capital [Member]

Retained Earnings [Member]

Total Stockholders' Equity [Member]

Noncontrolling Interests [Member]

Beginning balance at Dec. 31, 2014

$ 1,472,476

$ 1,614

$ 906,159

$ 546,407

$ 1,454,180

$ 18,296

Beginning balance (shares) at Dec. 31, 2014

161,355,490

Net income

207,181

205,461

1,720

Capital contribution by Weyerhaeuser, net

(6,747)

Shares issued under share-based awards

1,616

4

1,612

1,616

Shares issued under share-based awards (shares)

458,260

Excess tax deficit of share-based awards, net

428

Minimum tax withholding paid on behalf of employees for restricted stock units

(2,190)

Stock-based compensation expense

11,935

Distributions to noncontrolling interests, net

(3,833)

Net effect of consolidations, de-consolidations and other transactions

5,597

Ending balance at Dec. 31, 2015

1,686,463

1,618

911,197

751,868

1,664,683

21,780

Ending balance (shares) at Dec. 31, 2015

161,813,750

Net income

196,133

195,171

962

Shares issued under share-based awards

587

4

583

587

Shares issued under share-based awards (shares)

373,332

Excess tax deficit of share-based awards, net

(165)

Minimum tax withholding paid on behalf of employees for restricted stock units

(1,359)

Stock-based compensation expense

12,612

Share repurchases

(42,082)

(36)

(42,046)

(42,082)

Stock repurchases (shares)

(3,560,853)

Distributions to noncontrolling interests, net

(3,363)

Net effect of consolidations, de-consolidations and other transactions

(316)

Ending balance at Dec. 31, 2016

1,848,510

1,586

880,822

947,039

1,829,447

19,063

Ending balance (shares) at Dec. 31, 2016

158,626,229

Net income

187,551

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)

Stock-based compensation expense

15,906

Share repurchases

(112,217)

(90)

(112,127)

(112,217)

Stock repurchases (shares)

(8,994,705)

Distributions to noncontrolling interests, net

(1,333)

Net effect of consolidations, de-consolidations and other transactions

(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

Consolidated Statements of Cash Flows (USD $)

In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Cash flows from operating activities

Net income

$ 187,551

$ 196,133

$ 207,181

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Depreciation and amortization

3,500

3,087

8,274

Equity in loss (income) of unconsolidated entities, net

5,007

(4,989)

(2,691)

Deferred income taxes, net

46,810

7,434

27,164

Amortization of stock-based compensation

15,906

12,612

11,935

Charges for impairments and lot option abandonments

2,053

1,470

1,930

Excess tax deficit of share-based awards

0

(165)

0

Changes in assets and liabilities:

Real estate inventories

(205,229)

(388,145)

(235,030)

Receivables

(44,280)

576

(23,592)

Other assets

13,487

(8,501)

35,360

Accounts payable

2,618

5,412

(4,020)

Accrued expenses and other liabilities

67,036

10,490

4,494

Returns on investments in unconsolidated entities, net

7,215

6,276

0

Net cash provided by (used in) operating activities

101,674

(158,310)

31,005

Cash flows from investing activities:

Purchases of property and equipment

(2,605)

(3,985)

(809)

Proceeds from sale of property and equipment

6

9

0

Investments in unconsolidated entities

(980)

(32)

(1,468)

Distributions from unconsolidated entities

0

1,415

Net cash used in investing activities

(3,579)

(4,008)

(862)

Cash flows from financing activities:

Borrowings from debt

500,000

541,069

140,000

Repayment of debt

(413,726)

(330,858)

(112,851)

Debt issuance costs

(5,957)

(5,062)

(2,688)

Net repayments of debt held by variable interest entities

0

(2,442)

(6,769)

Contributions from noncontrolling interests

0

1,955

5,990

Distributions to noncontrolling interests

(1,333)

(5,318)

(9,823)

Proceeds from issuance of common stock under share-based awards

12,291

587

1,616

Excess tax benefits of share-based awards

0

428

Minimum tax withholding paid on behalf of employees for share-based awards

(2,896)

(1,359)

(2,190)

Share repurchases

(112,217)

(42,082)

0

Net cash (used in) provided by financing activities

(23,838)

156,490

13,713

Net increase (decrease) in cash and cash equivalents

74,257

(5,828)

43,856

Cash and cash equivalents - beginning of year

208,657

214,485

170,629

Cash and cash equivalents - end of year

$ 282,914

$ 208,657

$ 214,485

Organization and Summary of Significant Accounting Policies

Organization

TRI Pointe Group, Inc. (“TRI Pointe Group”) is engaged in the design, construction and sale of innovative single-family attached and detached homes through its portfolio of six quality brands across eight states, including Maracay Homes in Arizona, Pardee Homes in California and Nevada, Quadrant Homes in Washington, Trendmaker Homes in Texas, TRI Pointe Homes in California and Colorado and Winchester Homes in Maryland and Virginia.

Formation of TRI Pointe Group

On July 7, 2015, TRI Pointe Homes, Inc. (“TRI Pointe Homes”) reorganized its corporate structure (the “Reorganization”) whereby TRI Pointe Homes became a direct, wholly owned subsidiary of TRI Pointe Group. As a result of the Reorganization, each share of common stock, par value $0.01 per share, of TRI Pointe Homes (“Homes Common Stock”) was cancelled and converted automatically into the right to receive one validly issued, fully paid and non-assessable share of common stock, par value $0.01 per share, of TRI Pointe Group (“Group Common Stock”), each share having the same designations, rights, powers and preferences, and the qualifications, limitations and restrictions thereof as the shares of Homes Common Stock being so converted. TRI Pointe Group, as the successor issuer to TRI Pointe Homes (pursuant to Rule 12g-3(a) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), began making filings under the Securities Act of 1933, as amended, and the Exchange Act on July 7, 2015.

In connection with the Reorganization, TRI Pointe Group (i) became a co-issuer of TRI Pointe Homes’ 4.375% Senior Notes due 2019 (the "2019 Notes") and TRI Pointe Homes' 5.875% Senior Notes due 2024 (the "2024 Notes”); and (ii) replaced TRI Pointe Homes as the borrower under TRI Pointe Homes’ unsecured revolving credit facility.

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”).

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries as described in “Reverse Acquisition” below, as well as other entities in which the Company has a controlling interest and variable interest entities (“VIEs”) in which the Company is the primary beneficiary. The noncontrolling interests as of December 31, 2017 and 2016 represent the outside owners’ interests in the Company’s consolidated entities and the net equity of the VIE owners. All significant intercompany accounts have been eliminated upon consolidation.

Unless the context otherwise requires, the terms “we”, “us”, “our” and “the Company” have the following meanings:


•	For periods prior to July 7, 2015: TRI Pointe Homes (and its consolidated subsidiaries)


•	For periods from and after July 7, 2015: TRI Pointe Group (and its consolidated subsidiaries)

Reclassifications

Certain amounts in our consolidated financial statements for prior years have been reclassified to conform to the current period presentation, including the Company's condensed reporting of restructuring charges, included in general and administrative expense on the consolidated statements of operations in this annual report on Form 10-K.

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.

Subsequent Events

We evaluated subsequent events up until our consolidated financial statements were filed with the Securities and Exchange Commission.

Cash and Cash Equivalents and Concentration of Credit Risk

We define cash and cash equivalents as cash on hand, demand deposits with financial institutions, and short-term liquid investments with a maturity date of less than three months from the date of acquisition. The Company’s cash balances exceed federally insurable limits. The Company monitors the cash balances in its operating accounts and adjusts the cash balances as appropriate; however, these cash balances could be impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. To date, the Company has experienced no loss or lack of access to cash in its operating accounts.

Real Estate Inventories and Cost of Sales

Real estate inventories consist of land, land under development, homes under construction, completed homes and model homes and are stated at cost, net of impairment losses. We capitalize direct carrying costs, including interest, property taxes and related development costs to inventories. Field construction supervision and related direct overhead are also included in the capitalized cost of inventories. Direct construction costs are specifically identified and allocated to homes while other common costs, such as land, land improvements and carrying costs, are allocated to homes within a community based upon their anticipated relative sales or fair value. In accordance with ASC Topic 835, Interest (“ASC 835”), homebuilding interest capitalized as a cost of inventories owned is included in costs of sales as related units or lots are sold. To the extent our debt exceeds our qualified assets as defined in ASC 835, we expense a portion of the interest incurred by us. Qualified assets represent projects that are actively under development. Homebuilding cost of sales is recognized at the same time revenue is recognized and is recorded based upon total estimated costs to be allocated to each home within a community. Any changes to the estimated costs are allocated to the remaining undelivered lots and homes within their respective community. The estimation and allocation of these costs require a substantial degree of judgment by management.

The estimation process involved in determining relative sales or fair values is inherently uncertain because it involves estimating future sales values of homes before delivery. Additionally, in determining the allocation of costs to a particular land parcel or individual home, we rely on project budgets that are based on a variety of assumptions, including assumptions about construction schedules and future costs to be incurred. It is common that actual results differ from budgeted amounts for various reasons, including construction delays, increases in costs that have not been committed or unforeseen issues encountered during construction that fall outside the scope of existing contracts, or costs that come in less than originally anticipated. While the actual results for a particular construction project are accurately reported over time, a variance between the budget and actual costs could result in the understatement or overstatement of costs and have a related impact on gross margins between reporting periods. To reduce the potential for such variances, we have procedures that have been applied on a consistent basis, including assessing and revising project budgets on a periodic basis, obtaining commitments from subcontractors and vendors for future costs to be incurred and utilizing the most recent information available to estimate costs.

If there are indications of impairment, we perform a detailed budget and cash flow review of our real estate assets to determine whether the estimated remaining undiscounted future cash flows of the community are more or less than the asset’s carrying value. If the undiscounted cash flows are more than the asset’s carrying value, no impairment adjustment is required. However, if the undiscounted cash flows are less than the asset’s carrying value, the asset is deemed impaired and is written down to fair value. These impairment evaluations require us to make estimates and assumptions regarding future conditions, including timing and amounts of development costs and sales prices of real estate assets, to determine if expected future undiscounted cash flows will be sufficient to recover the asset’s carrying value.

When estimating undiscounted cash flows of a community, we make various assumptions, including: (i) expected sales prices and sales incentives to be offered, including the number of homes available, pricing and incentives being offered by us or other builders in other communities, and future sales price adjustments based on market and economic trends; (ii) expected sales pace and cancellation rates based on local housing market conditions, competition and historical trends; (iii) costs expended to date and expected to be incurred including, but not limited to, land and land development costs, home construction costs, interest costs, indirect construction and overhead costs, and selling and marketing costs; (iv) alternative product offerings that may be offered that could have an impact on sales pace, sales price and/or building costs; and (v) alternative uses for the property.

Many assumptions are interdependent and a change in one may require a corresponding change to other assumptions. For example, increasing or decreasing monthly sales absorption rates has a direct impact on the estimated per unit sales price of a home, the level of time sensitive costs (such as indirect construction, overhead and carrying costs), and selling and marketing costs (such as model maintenance costs and advertising costs). Depending on the underlying objective of the community, assumptions could have a significant impact on the projected cash flow analysis. For example, if our objective is to preserve operating margins, our cash flow analysis will be different than if the objective is to increase sales. These objectives may vary significantly from community to community and over time.

If assets are considered impaired, impairment is determined by the amount the asset’s carrying value exceeds its fair value. Fair value is determined based on estimated future cash flows discounted for inherent risks associated with real estate assets. These discounted cash flows are impacted by expected risk based on estimated land development, construction and delivery timelines; market risk of price erosion; uncertainty of development or construction cost increases; and other risks specific to the asset or market conditions where the asset is located when assessment is made. These factors are specific to each community and may vary among communities. We perform a quarterly review for indicators of impairment. For the year ended December 31, 2017 we had $854,000 of real estate inventory impairment charges. For the years ended December 31, 2016 and 2015 we recorded impairment charges of zero and $1.2 million, respectively.

Revenue Recognition

In accordance with ASC Topic 360, Property, Plant, and Equipment, revenues from home sales and other real estate sales are recorded and a profit is recognized when the respective units are delivered. Home sales and other real estate sales are delivered when all conditions of escrow are met, including delivery of the home or other real estate asset, title passage, appropriate consideration is received and collection of associated receivables, if any, is reasonably assured. Sales incentives are a reduction of revenues when the respective unit is delivered. When it is determined that the earnings process is not complete, the sale and/or the related profit are deferred for recognition in future periods using the percentage-of-completion method. The profit we record is based on the calculation of cost of sales, which is dependent on our allocation of costs, as described in more detail above in the section entitled “Real Estate Inventories and Cost of Sales.”

Warranty Reserves

In the normal course of business, we incur warranty-related costs associated with homes that have been delivered to homebuyers. Estimated future direct warranty costs are accrued and charged to cost of sales in the period when the related home sales revenues are recognized while indirect warranty overhead salaries and related costs are charged to cost of sales in the period incurred. Factors that affect the warranty accruals include the number of homes delivered, historical and anticipated rates of warranty claims and cost per claim. Our primary assumption in estimating the amounts we accrue for warranty costs is that historical claims experience is a strong indicator of future claims experience. In addition, we maintain general liability insurance designed to protect us against a portion of our risk of loss from warranty and construction-related claims. We also generally require our subcontractors and design professionals to indemnify us for liabilities arising from their work, subject to various limitations. However, such indemnity is significantly limited with respect to certain subcontractors that are added to our general liability insurance policy.

Our warranty reserve is based on actuarial analysis that uses our historical claim and expense data, as well as industry data to estimate these overall costs. 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.

Investments in Unconsolidated Entities

We have investments in unconsolidated entities over which we have significant influence that we account for using the equity method with taxes provided on undistributed earnings. We record earnings and accrue taxes in the period that the earnings are recorded by our affiliates. Under the equity method, our share of the unconsolidated entities’ earnings or loss is included in equity in (loss) income of unconsolidated entities in the accompanying consolidated statements of operations. We evaluate our investments in unconsolidated entities for impairment when events and circumstances indicate that the carrying value of the investment has been impaired beyond a temporary period of time. For the year ended December 31, 2017, we had a $13.2 million impairment charge related to a joint venture formed as a limited liability company in 1999 for the entitlement and development of land located in Los Angeles County, California. For the years ended December 31, 2016 and 2015 we did not have any impairment charges related to investments in unconsolidated entities.

Variable Interest Entities

The Company accounts for variable interest entities in accordance with ASC Topic 810, Consolidation (“ASC 810”). Under ASC 810, a variable interest entity (“VIE”) is created when: (a) the equity investment at risk in the entity is not sufficient to permit the entity to finance its activities without additional subordinated financial support provided by other parties, including the equity holders; (b) the entity’s equity holders as a group (i) lack the direct or indirect ability to make decisions about the entity, (ii) are not obligated to absorb expected losses of the entity or (iii) do not have the right to receive expected residual returns of the entity; or (c) the entity’s equity holders have voting rights that are not proportionate to their economic interests, and the activities of the entity involve, or are conducted on behalf of, the equity holder with disproportionately few voting rights. If an entity is deemed to be a VIE pursuant to ASC 810, the enterprise that has both (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (b) the obligation to absorb the expected losses of the entity or right to receive benefits from the entity that could be potentially significant to the VIE is considered the primary beneficiary and must consolidate the VIE.

Under ASC 810, a non-refundable deposit paid to an entity is deemed to be a variable interest that will absorb some or all of the entity’s expected losses if they occur. Our land purchase and lot option deposits generally represent our maximum exposure to the land seller if we elect not to purchase the optioned property. In some instances, we may also expend funds for due diligence, development and construction activities with respect to optioned land prior to takedown. Such costs are classified as inventories owned, which we would have to write off should we not exercise the option. Therefore, whenever we enter into a land option or purchase contract with an entity and make a non-refundable deposit, a VIE may have been created. In accordance with ASC 810, we perform ongoing reassessments of whether we are the primary beneficiary of a VIE.

Stock-Based Compensation

We account for share-based awards in accordance with ASC Topic 718, Compensation-Stock Compensation (“ASC 718”). ASC 718 requires that the cost resulting from all share-based payment transactions be recognized in the financial statements. ASC 718 requires all entities to apply a fair-value-based measurement method in accounting for share-based payment transactions with employees. Share-based awards are expensed on a straight-line basis over the expected vesting period.

Sales and Marketing Expense

Sales and marketing costs incurred to sell real estate projects are capitalized if they are reasonably expected to be recovered from the sale of the project or from incidental operations and are incurred for tangible assets that are used directly through the selling period to aid in the sale of the project or services that have been performed to obtain regulatory approval of sales. All other selling expenses and other marketing costs are expensed in the period incurred.

Restructuring Charges

Restructuring charges were incurred related to the merger (the “Merger”) with Weyerhaeuser Real Estate Company (“WRECO”), in addition to general cost reduction initiatives. These charges are composed of employee retention and severance-related expenses and lease termination costs. We account for restructuring charges in accordance with ASC Topic 420, Exit or Disposal Cost Obligations or ASC Topic 712 – Compensation – Nonretirement Postemployment Benefits. We had restructuring charges of $588,000, $649,000 and $3.3 million for the years ended December 31, 2017, 2016 and 2015, respectively. Restructuring charges are included in general and administrative expense on the consolidated statements of operations.

Income Taxes

We account for income taxes in accordance with ASC Topic 740, Income Taxes (“ASC 740”). Deferred tax assets and liabilities are recorded based on future tax consequences of both temporary differences between the amounts reported for financial reporting purposes and the amounts deductible for income tax purposes, and are measured using enacted tax rates expected to apply in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period when the changes are enacted.

Each quarter we assess our deferred tax assets to determine whether all or any portion of the assets 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. Due to uncertainties inherent in the estimation process, it is possible that actual results may vary from estimates.

The enactment of the Tax Cuts and Jobs Act in the fourth quarter of 2017, among other things, reduced the federal corporate tax rate to 21% from 35%, effective January 1, 2018. This resulted in a $22.0 million reduction in our deferred tax asset. The ultimate impact of the Tax Cuts and Jobs Act may be different, possibly materially, due to changes in interpretations and assumptions, and guidance that may be issued and actions we may take in response to the tax law changes.

We classify any interest and penalties related to income taxes as part of income tax expense.

Goodwill and Other Intangible Assets

In accordance with ASC Topic 350, Intangibles-Goodwill and Other (“ASC 350”), we evaluate goodwill and indefinite-lived intangible assets for impairment on an annual basis, or more frequently if events or changes in circumstances between annual tests indicate that it is more likely than not that the asset is impaired. We have identified one reporting unit with goodwill, TRI Pointe Homes, and performed our annual goodwill impairment evaluation as of October 1, 2017. For further details on goodwill, see Note 8, Goodwill and Other Intangible Assets.

For our TRI Pointe Homes reporting unit, we performed a qualitative assessment to determine whether it is more likely than not that its fair value is less than its carrying amount. Upon completion of the October 2017 annual impairment assessment, we determined that no goodwill impairment was indicated. As of December 31, 2017, we are not aware of any significant indicators of impairment that exist for our goodwill that would require additional analysis.

An impairment of our indefinite-lived intangible asset is based on a comparison of its fair value to book value, without consideration of any recoverability due to the indefinite nature of the asset. As of December 31, 2017, we believe that our indefinite-lived intangible asset continues to have an indefinite life and that its fair value exceeds its carrying value. For further details on our indefinite-lived intangible asset, see Note 8, Goodwill and Other Intangible Assets.

In accordance with ASC Topic 360, Property, Plant and Equipment ("ASC 360"), we evaluate finite-lived intangible assets for impairment on an annual basis, or more frequently if events or changes in circumstances between annual tests indicate that it is more likely than not that the asset is impaired. An impairment in the carrying value of our finite-lived intangible asset is recognized whenever anticipated future undiscounted cash flows from the asset become unrecoverable and are estimated to be less than its carrying value. As of December 31, 2017, we believe that the carrying value of our finite-lived intangible asset is recoverable and that its fair value is greater than its carrying value. For further details on our finite-lived intangible asset, see Note 8, Goodwill and Other Intangible Assets.

Significant management judgment is required in the forecasts of future operating results that are used in our impairment evaluations. Our estimates are consistent with the plans and estimates that we use to manage our business. It is possible, however, that the plans may change and estimates used may prove to be inaccurate. If our actual results, or the plans and estimates used in future impairment analyses, are lower than the original estimates used to assess the recoverability of these assets, we could incur future impairment charges.

Recently Issued Accounting Standards

In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Codified as "ASC 606"). 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. 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. ASC 606 is effective for public entities for the annual periods ending after December 15, 2017, and for annual and interim periods thereafter. Companies may use either a full retrospective or a modified retrospective approach to adopt ASC 606, and we will adopt the new standard under the modified retrospective approach, effective January 1, 2018, by recognizing the net cumulative effect to the opening balance of retained earnings.

We have substantially completed our evaluation on the impact that the adoption of ASC 606 will have on our financial statements, and are in process of finalizing the analysis of certain costs, including the impact on income taxes and related accounts, which we do not expect to have a material impact to our consolidated financial statements. Based on our analysis, the adoption of ASC 606 will not have a material impact on the amount or timing of our home sales revenue, but could impact the amount and timing of future land and lot sales. The adoption of ASC 606 will impact 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 currently capitalize and amortize various sales office, model and other marketing related costs with each home delivered in a community. Under the new guidance, these costs will be expensed when incurred or capitalized to other assets and amortized to selling expense. We are adopting the modified retrospective approach and accordingly, the balance of any remaining unallocated capitalized sales office, model and other marketing related costs required to be expensed under ASC 606 will be recorded to our opening balance of retained earnings in our 2018 consolidated balance sheet. We expect to recognize an immaterial decrease to retained earnings.

In addition to the cumulative effect to retained earnings, effective January 1, 2018, the adoption of ASC 606 will result in reclassifications among Consolidated Balance Sheet accounts, notably from real estate inventories to other assets. These reclassifications will not materially change the total amount of net assets existing at December 31, 2017. ASC 606 will result in enhanced disclosure requirements, including changes in contract related assets and liabilities, quantitative and qualitative information about contracts with customers and qualitative information about performance obligations.

In February 2016, the FASB issued Accounting Standards Update No. 2016-02, (Codified as “ASC 842”), which requires an entity to recognize assets and liabilities on the balance sheet for the rights and obligations created by leased assets and provide additional disclosures. 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 currently evaluating the impact that the adoption of ASC 842 may have on our consolidated financial statements and disclosures.

In March 2016, the FASB issued Accounting Standards Update No. 2016-09, (“ASU 2016-09”), Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. On January 1, 2017, we adopted ASU 2016-09. This new guidance requires that we record excess tax benefit and tax deficiencies related to the settlement of employee stock-based compensation to the income tax expense line item on our consolidated statement of operations. We previously recorded the excess tax benefits and tax deficiencies to the additional paid-in capital line item on our consolidated balance sheets. Under the new guidance, the Company elected the option to no longer apply a forfeiture rate to our stock-based compensation expense, and to recognize forfeitures as they occur. The adoption of the aforementioned amendments in ASU 2016-09 were applied using the modified retrospective approach and did not have a material impact on our current or prior year financial statements, with no resulting cumulative-effect adjustment to retained earnings. The new guidance also requires excess tax benefits to be classified as an operating activity in the statement of cash flows rather than as a financing activity. Additionally, ASU 2016-09 requires that the minimum tax withholding paid on behalf of employees for share-based awards be classified as a financing activity in the statement of cash flows. Adoption of ASU 2016-09 did not result in any adjustments to prior period disclosures on the statement of cash flows.

In August 2016, the FASB issued Accounting Standards Update No. 2016-15, (“ASU 2016-15”), Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted. We are currently evaluating the impact that adoption of ASU 2016-15 may have on our consolidated financial statements and disclosures, however we do not believe the guidance will have a material impact on our financial statements upon adoption.

In January 2017, the FASB issued Accounting Standards Update No. 2017-04, (“ASU 2017-04”), Intangibles - Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment, 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 to have a material impact on our financial statements.

Segment Information

We operate two principal businesses: homebuilding and financial services.

Our homebuilding operations consist of six homebuilding companies, each operating under different brand names, through which we 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, brand names, and underlying demand and supply. Based upon the above factors, our homebuilding operations comprise the following six reportable segments: Maracay Homes, consisting of operations in Arizona; Pardee Homes, consisting of operations in California and Nevada; Quadrant Homes, consisting of operations in Washington; Trendmaker Homes, consisting of operations in Texas; TRI Pointe Homes, consisting of operations in California and Colorado; and Winchester Homes, consisting of operations in Maryland and Virginia.

Our financial services reportable segment (“TRI Pointe Solutions”) comprises our mortgage financing operations and title services operations. Our mortgage financing operation (“TRI Pointe Connect”) provides mortgage financing 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 our Trendmaker Homes and Winchester Homes brands. TRI Pointe Assurance is a wholly owned subsidiary of TRI Pointe Group and acts as a title agency for First American Title Insurance Company.

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 as our consolidated financial statements described in Note 1, Organization 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):



	2017			2016			2015
Revenues
Maracay Homes	$	296,768		$	255,253		$	185,645
Pardee Homes	826,033			730,848			670,063
Quadrant Homes	247,939			213,221			189,401
Trendmaker Homes	253,825			244,001			278,759
TRI Pointe Homes	927,247			723,186			774,005
Winchester Homes	257,089			237,413			302,276
Total homebuilding revenues	2,808,901			2,403,922			2,400,149
Financial services	1,371			1,220			1,010
Total	$	2,810,272		$	2,405,142		$	2,401,159
Income before taxes
Maracay Homes	$	23,987		$	17,189		$	9,849
Pardee Homes	198,738			204,237			183,077
Quadrant Homes	32,671			21,209			10,478
Trendmaker Homes	16,764			15,353			25,004
TRI Pointe Homes	89,811			62,013			104,970
Winchester Homes	15,472			16,147			22,411
Corporate	(45,091		)	(39,698		)	(38,589		)
Total homebuilding income before income taxes	332,352			296,450			317,200
Financial services	7,466			5,777			2,060
Total	$	339,818		$	302,227		$	319,260

Total real estate inventories and total assets for each of our reportable segments, as of the date indicated, were as follows (in thousands):



	December 31, 2017		December 31, 2016
Real estate inventories
Maracay Homes	$	243,883	$	228,965
Pardee Homes	1,245,659		1,098,608
Quadrant Homes	257,887		221,386
Trendmaker Homes	204,926		211,035
TRI Pointe Homes	855,727		868,088
Winchester Homes	297,471		282,545
Total	$	3,105,553	$	2,910,627
Total assets
Maracay Homes	$	268,866	$	255,466
Pardee Homes	1,346,296		1,201,302
Quadrant Homes	312,803		242,208
Trendmaker Homes	224,995		225,025
TRI Pointe Homes	1,062,920		1,052,400
Winchester Homes	313,921		305,379
Corporate	262,740		275,923
Total homebuilding assets	3,792,541		3,557,703
Financial services	12,840		6,937
Total	$	3,805,381	$	3,564,640

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):



	Year Ended December 31,
	2017		2016		2015
Numerator:
Income available to common stockholders	$	187,191	$	195,171	$	205,461
Denominator:
Basic weighted-average shares outstanding	154,134,411		160,859,782		161,692,152
Effect of dilutive shares:
Stock options and unvested restricted stock units	950,955		521,717		627,606
Diluted weighted-average shares outstanding	155,085,366		161,381,499		162,319,758
Earnings per share
Basic	$	1.21	$	1.21	$	1.27
Diluted	$	1.21	$	1.21	$	1.27
Antidilutive stock options not included in diluted earnings per share	3,288,340		4,551,337		2,622,391

Receivables, Net

Receivables, net consisted of the following (in thousands):



	December 31, 2017		December 31, 2016
Escrow proceeds and other accounts receivable, net	$	89,783	$	35,625
Warranty insurance receivable(Note 13)	35,817		46,875
Total receivables	$	125,600	$	82,500

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 $330,000 in 2017 and $286,000 in 2016.

Real Estate Inventories

Real estate inventories consisted of the following (in thousands):



	December 31, 2017		December 31, 2016
Real estate inventories owned:
Homes completed or under construction	$	793,685	$	659,210
Land under development	1,934,556		1,824,989
Land held for future development	138,651		226,915
Model homes	211,658		155,039
Total real estate inventories owned	3,078,550		2,866,153
Real estate inventories not owned:
Land purchase and land option deposits	27,003		26,174
Consolidated inventory held by VIEs	—		18,300
Total real estate inventories not owned	27,003		44,474
Total real estate inventories	$	3,105,553	$	2,910,627

Homes completed or under construction comprises costs associated with homes in various stages of construction and includes direct construction and related land acquisition and land development costs. Land under development primarily consists of land acquisition and land development costs, which include capitalized interest and real estate taxes, associated with land undergoing improvement activity. Land held for future development principally reflects land acquisition and land development costs related to land where development activity has not yet begun or has been suspended, but is expected to occur in the future.

Real estate inventories not owned represents deposits related to land purchase and land option agreements as well as consolidated inventory held by a VIE. For further details, see Note 7, Variable Interest Entities.

Interest incurred, capitalized and expensed were as follows (in thousands):



	Year Ended December 31,
	2017			2016			2015
Interest incurred	$	84,264		$	68,306		$	60,964
Interest capitalized	(84,264		)	(68,306		)	(60,964		)
Interest expensed	$	—		$	—		$	—
Capitalized interest in beginning inventory	$	157,329		$	140,311		$	124,461
Interest capitalized as a cost of inventory	84,264			68,306			60,964
Interest previously capitalized as a cost of inventory, included in cost of sales	(65,245		)	(51,288		)	(45,114		)
Capitalized interest in ending inventory	$	176,348		$	157,329		$	140,311

Interest is capitalized to real estate inventory during development and other qualifying activities. Interest that is capitalized to real estate inventory is included in cost of home sales as related units are delivered. Interest that is expensed as incurred is included in other income, net on the consolidated statements of operations.

Real estate inventory impairments and land option abandonments

Real estate inventory impairments and land option abandonments consisted of the following (in thousands):



	Year Ended December 31,
	2017		2016		2015
Real estate inventory impairments	$	854	$	—	$	1,167
Land and lot option abandonments and pre-acquisition costs	1,199		1,470		763
Total	$	2,053	$	1,470	$	1,930

Impairments of real estate inventory relate primarily to projects or communities that include homes completed or under construction. Within a project or community, there may be individual homes or parcels of land that are currently held for sale. Impairment charges recognized as a result of adjusting individual held-for-sale assets within a community to estimated fair value less cost to sell are also included in the total impairment charges above.

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.

Investments in Unconsolidated Entities

As of December 31, 2017, we held equity investments in five active homebuilding partnerships or limited liability companies and one financial services limited liability company. Our participation in these entities may be as a developer, a builder, or an investment partner. Our ownership percentage varies from 5% 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):



	December 31,
	2017		2016
Limited liability company interests	$	2,687	$	14,327
General partnership interests	3,183		3,219
Total	$	5,870	$	17,546

In the fourth quarter of 2017, we fully impaired a $13.2 million investment in a joint venture formed as a limited liability company in 1999 for the entitlement and development of land located in Los Angeles County, California. This $13.2 million impairment charge is included in equity in (loss) income of unconsolidated entities under our homebuilding operations on the consolidated statements of operations. Although we continue to hold a 5% equity stake in the joint venture, we are a non-funding member of the limited liability company and we expect our equity stake to be further diluted. This impairment charge is included in the Pardee Homes reporting segment in Note 2, Segment Information.

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 investment in unconsolidated entities or on our consolidated statement of operations as equity in (loss) income of unconsolidated entities.

Assets and liabilities of unconsolidated entities (in thousands):



	December 31,
	2017		2016
Assets
Cash	$	11,678	$	9,796
Receivables	6,564		10,203
Real estate inventories	99,997		97,402
Other assets	936		1,087
Total assets	$	119,175	$	118,488
Liabilities and equity
Accounts payable and other liabilities	$	12,208	$	12,844
Company’s equity	5,870		17,546
Outside interests' equity	101,097		88,098
Total liabilities and equity	$	119,175	$	118,488

Results of operations from unconsolidated entities (in thousands):



	Year Ended December 31,
	2017			2016			2015
Net sales	$	24,247		$	18,725		$	7,326
Other operating expense	(13,904		)	(11,315		)	(6,690		)
Other income (expense)	120			4			(279		)
Net income	$	10,463		$	7,414		$	357
Company’s equity in (loss) income of unconsolidated entities	$	(5,007	)	$	4,989		$	2,691

Variable Interest Entities

In the ordinary course of business, we enter into land option agreements in order to procure land and residential lots for future development and the construction of homes. The use of such land 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 option agreements, we generally provide a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. Such deposits are recorded as land purchase and land option deposits under real estate inventories not owned in the accompanying consolidated balance sheets.

We analyze each of our land option agreements and other similar contracts under the provisions of ASC 810 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 option agreements have no recourse against us. The maximum exposure to loss under our land option agreements is limited to non-refundable option deposits and any capitalized pre-acquisition costs. In some cases, we have also contracted to complete development work at a fixed cost on behalf of the land owner and budget shortfalls and savings will be borne by us.

The following provides a summary of our interests in land option agreements (in thousands):



	December 31, 2017						December 31, 2016
	Deposits		Remaining Purchase Price		Consolidated Inventory Held by VIEs		Deposits		Remaining Purchase Price		Consolidated Inventory Held by VIEs
Consolidated VIEs	$	—	$	—	$	—	$	400	$	17,900	$	18,300
Unconsolidated VIEs	3,418		112,590		N/A		2,375		49,016		N/A
Other land option agreements	23,585		269,349		N/A		23,799		246,658		N/A
Total	$	27,003	$	381,939	$	—	$	26,574	$	313,574	$	18,300

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 option contracts consisted of capitalized pre-acquisition costs of $4.5 million and $3.6 million as of December 31, 2017 and 2016, respectively. These pre-acquisition costs were included in real estate inventories as land under development on our consolidated balance sheets.

Goodwill and Other Intangible Assets

The Company recorded $139.3 million of goodwill in connection with the Merger with WRECO. As of December 31, 2017 and 2016, $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 December 31, 2017, comprised of an existing trade name from the acquisition of Maracay Homes in 2006, which has a 20 year useful life, and a TRI Pointe Homes trade name resulting from the acquisition of WRECO in 2014, which has an indefinite useful life.

Goodwill and other intangible assets consisted of the following (in thousands):



	December 31, 2017							December 31, 2016
	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		(6,322		)	21,657		27,979		(5,788		)	22,191
Total	$	167,283	$	(6,322	)	$	160,961	$	167,283	$	(5,788	)	$	161,495

The remaining useful life of our amortizing intangible asset related to Maracay was 8.2 and 9.2 years as of December 31, 2017 and 2016, respectively. Amortization expense related to this intangible asset was $534,000 for each of the years ended December 31, 2017 and 2016, and was charged to sales and marketing expense. Our $17.3 million indefinite life intangible asset related to TRI Pointe Homes trade name is not amortizing. All trade names are evaluated for impairment on an annual basis or more frequently if indicators of impairment exist.

Expected amortization of our intangible asset related to Maracay Homes for the next five years and thereafter is (in thousands):



2018	$	534
2019	534
2020	534
2021	534
2022	534
Thereafter	1,687
Total	$	4,357

Other Assets

Other assets consisted of the following (in thousands):



	December 31, 2017		December 31, 2016
Prepaid expenses	$	13,040	$	24,495
Refundable fees and other deposits	16,012		17,731
Development rights, held for future use or sale	2,569		2,569
Deferred loan costs	3,427		2,101
Operating properties and equipment, net	10,528		10,884
Other	2,494		2,812
Total	$	48,070	$	60,592

Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities consisted of the following (in thousands):



	December 31, 2017		December 31, 2016
Accrued payroll and related costs	$	36,863	$	33,761
Warranty reserves (Note 13)	69,373		83,135
Estimated cost for completion of real estate inventories	105,864		59,531
Customer deposits	19,568		13,437
Income tax liability to Weyerhaeuser	7,706		8,589
Accrued income taxes payable	30,672		1,200
Liability for uncertain tax positions	1,458		—
Accrued interest	11,014		11,570
Accrued insurance expense	1,187		529
Other tax liabilities	33,671		34,961
Other	13,506		17,132
Total	$	330,882	$	263,845

Senior Notes and Notes Payable and Other Borrowings

Senior Notes

Senior notes consisted of the following (in thousands):



	December 31, 2017			December 31, 2016
4.375% Senior Notes due June 15, 2019	$	450,000		$	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			—
Discount and deferred loan costs	(28,698		)	(31,693		)
Total	$	1,471,302		$	1,168,307

In June 2017, TRI Pointe Group issued $300.0 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 $300.0 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.

In connection with the Reorganization, TRI Pointe Group and TRI Pointe Homes became co-issuers of the 2019 Notes and the 2024 Notes. The 2019 Notes were issued at 98.89% of their aggregate principal amount and the 2024 Notes were issued at 98.15% of their aggregate principal amount. The net proceeds from the offering were $861.3 million, after debt issuance costs and discounts. The 2019 Notes and the 2024 Notes mature on June 15, 2019 and June 15, 2024, respectively. Interest is payable semiannually in arrears on June 15 and December 15.

As of December 31, 2017, no principal has been paid on the 2019 Notes, 2021 Notes, 2024 Notes and 2027 Notes (collectively, the “Senior Notes”), and there was $19.9 million of capitalized debt financing costs, included in senior notes, net on our consolidated balance sheet, that will amortize over the lives of the Senior Notes. Accrued interest related to the Senior Notes was $10.6 million and $10.7 million as of December 31, 2017 and 2016, respectively.

Unsecured Revolving Credit Facility

Unsecured revolving credit facility consisted of the following (in thousands):



	December 31, 2017		December 31, 2016
Unsecured revolving credit facility	$	—	$	200,000

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 facility in twelve-month increments, subject to the satisfaction of certain conditions. The Credit Facility contains a sublimit of $75.0 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 December 31, 2017, we had no outstanding debt under the Credit Facility and $592.3 million of availability after considering the borrowing base provisions and outstanding letters of credit. As of December 31, 2017 there was $3.4 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 related to the Credit Facility was $426,000 and $658,000 as of December 31, 2017 and 2016, respectively.

At December 31, 2017 and 2016, we had outstanding letters of credit of $7.7 million and $4.3 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.

Seller Financed Loans

Seller financed loans consisted of the following (in thousands):



	December 31, 2017		December 31, 2016
Seller financed loans	$	—	$	13,726

Accrued interest on a seller finance loan outstanding as of December 31, 2016 was $519,000.

Interest Incurred

During the years ended December 31, 2017 and 2016, the Company incurred interest of $84.3 million and $68.3 million, respectively, related to all notes payable and Senior Notes outstanding during the period. All interest incurred was capitalized to inventory for the years ended December 31, 2017 and 2016, respectively. Included in interest incurred was amortization of deferred financing and Senior Notes discount costs of $7.6 million and $6.5 million for the years ended December 31, 2017 and 2016, respectively. Accrued interest related to all outstanding debt at December 31, 2017 and 2016 was $11.0 million and $11.6 million, respectively.

Covenant Requirements

The Senior Notes contain covenants that restrict our ability to, among other things, create liens or other encumbrances, enter into sale and leaseback transactions, or merge or sell all or substantially all of our assets. These limitations are subject to a number of qualifications and exceptions.

Under the Credit Facility, the Company is required to comply with certain financial covenants, including 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 December 31, 2017 and December 31, 2016.

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 December 31, 2017 and 2016, related to our financial instruments, measured at fair value on a recurring basis, is set forth below (in thousands):



		December 31, 2017				December 31, 2016
	Hierarchy	Book Value		Fair Value		Book Value		Fair Value
Senior Notes⁽¹⁾	Level 2	$	1,491,229	$	1,552,335	$	1,189,180	$	1,219,125
Unsecured revolving credit facility⁽²⁾	Level 2	$	—	$	—	$	200,000	$	177,410
Seller financed loans⁽³⁾	Level 2	$	—	$	—	$	13,726	$	13,189

__________


⁽¹⁾	The book value of the Senior Notes is net of discounts, excluding deferred loan costs of $19.9 million and $20.9 million as of December 31, 2017 and 2016, respectively. The estimated fair value of our Senior Notes at December 31, 2017 and 2016 is based on quoted market prices.


⁽²⁾	The estimated fair value of the Credit Facility at December 31, 2016 was based on a treasury curve analysis.


⁽³⁾	The estimated fair value of the seller financed loan at December 31, 2016 was based on a treasury curve analysis.

At December 31, 2017 and 2016, the carrying value of cash and cash equivalents and receivables approximated fair value.

Fair Value of Nonfinancial Assets

Nonfinancial assets include items such as real estate inventories and long-lived assets that are measured at fair value on a nonrecurring basis with 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):



	Year Ended December 31, 2017				Year Ended December 31, 2016
	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 recent offers received from outside third parties or actual contracts.

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. As of December 31, 2017 we did not have any matters to which the Company believes a loss is probable and reasonably estimable. Legal reserves were zero and $225,000 as of December 31, 2017 and 2016, 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. 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 $35.8 million and $46.9 million as of December 31, 2017 and 2016, respectively. Warranty insurance receivables are recorded in receivables on the accompanying consolidated balance sheet.

Warranty reserves consisted of the following (in thousands):



	Year Ended December 31,
	2017			2016			2015
Warranty reserves, beginning of period	$	83,135		$	45,948		$	33,270
Warranty reserves accrued	13,336			12,712			16,557
Adjustments to pre-existing reserves⁽¹⁾	(9,354		)	36,826			7,451
Warranty expenditures	(17,744		)	(12,351		)	(11,330		)
Warranty reserves, end of period	$	69,373		$	83,135		$	45,948

__________

⁽¹⁾

Included in this amount for 2016 is approximately $38.0 million of additional warranty liabilities estimated to be covered by our insurance policies that were adjusted to present the warranty reserves and related estimated warranty insurance receivable on a gross basis at December 31, 2016. Of the $38.0 million adjusted in 2016, approximately $36.5 million related to prior year estimated warranty insurance recoveries.

Performance Bonds

We obtain surety bonds in the normal course of business with various municipalities and other government agencies to secure completion of certain infrastructure improvements of our projects. As of December 31, 2017 and December 31, 2016, the Company had outstanding surety bonds totaling $537.4 million and $449.6 million, respectively. If any such performance bonds or letters of credit are called, we would be obligated to reimburse the issuer of the performance bond or letter of credit. We do not believe that a material amount of any currently outstanding performance bonds or letters of credit will be called. Performance bonds do not have stated expiration dates. Rather, we are released from the performance bonds as the underlying performance is completed.

Operating Leases

Office Space, Buildings and Equipment

We lease certain property and equipment under non-cancelable operating leases. Office leases are for terms up to nine years and generally provide renewal options for terms up to an additional five years. In most cases, we expect that, in the normal course of business, leases that expire will be renewed or replaced by other leases. Equipment leases are typically for terms of three to four years. The future minimum rental payments under operating leases, which primarily consist of office leases having initial or remaining noncancellable lease terms in excess of one year, are as follows (in thousands):



2018	$	7,006
2019	6,744
2020	6,769
2021	5,544
2022	3,107
Thereafter	3,044
	$	32,214

For the years ended December 31, 2017, 2016 and 2015, rental expense was $6.9 million, $6.4 million and $6.2 million, respectively. Rental expense is included in general and administrative expenses on the consolidated statements of operations.

Ground Leases

In 1987, we obtained two 55-year ground leases of commercial property that provided for three renewal options of ten years each and one 45-year renewal option. We exercised the three ten year extensions on one of these ground leases extending the lease through 2071. The commercial buildings on these properties have been sold and the ground leases have been sublet to the buyers.

For one of these leases, we are responsible for making lease payments to the land owner, and we collect sublease payments from the buyers of the buildings. Our lease commitments under this ground lease, which extends through 2071, were (in thousands):



2018	$	2,239
2019	2,239
2020	2,239
2021	2,239
2022	2,239
Thereafter	72,753
	$	83,948

This ground lease has been subleased through 2041 to the buyers of the commercial buildings. Our lease commitments through 2041 total $53.7 million as of December 31, 2017, and are fully offset by sublease receipts under the noncancellable subleases.

For the second lease, the buyers of the buildings are responsible for making lease payments directly to the land owner. However, we have guaranteed the performance of the buyers/lessees. As of December 31, 2017, guaranteed future payments on the lease, which expires in 2041, were $12.5 million.

Purchase Obligations

In the ordinary course of business, we enter into land option contracts in order to procure lots for the construction of our homes. We are subject to customary obligations associated with entering into contracts for the purchase of land and improved lots. These purchase contracts typically require a cash deposit and the purchase of properties under these contracts is generally contingent upon satisfaction of certain requirements by the sellers, including obtaining applicable property and development entitlements. We also utilize option contracts with land sellers as a method of acquiring land in staged takedowns, to help us manage the financial and market risk associated with land holdings, and to reduce the use of funds from our corporate financing sources. Option contracts generally require a non-refundable deposit for the right to acquire lots over a specified period of time at pre-determined prices. We generally have the right at our discretion to terminate our obligations under both purchase contracts and option contracts by forfeiting our cash deposit with no further financial responsibility to the land seller. As of December 31, 2017, we had $27.0 million of non-refundable cash deposits pertaining to land option contracts and purchase contracts with an aggregate remaining purchase price of approximately $381.9 million (net of deposits).

Our utilization of land option contracts is dependent on, among other things, the availability of land sellers willing to enter into option takedown arrangements, the availability of capital to financial intermediaries to finance the development of optioned lots, general housing market conditions, and local market dynamics. Options may be more difficult to procure from land sellers in strong housing markets and are more prevalent in certain geographic regions.

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 December 31, 2017 there were 6,228,769 shares available for future grant under the 2013 Incentive Plan.

Converted Awards

On July 16, 2014, the Company filed a registration statement on Form S-8 (Registration No. 333-197461) on July 16, 2014 to register 4,105,953 shares of common stock related to converted equity awards issued in connection with the Company's acquisition of WRECO. The converted awards have the same terms and conditions as the prior equity awards except that all performance share units were surrendered in exchange for time-vesting restricted stock units without any performance-based vesting conditions or requirements and the exercise price of each converted stock option is equal to the original exercise price divided by an exchange ratio of 2.1107, rounded down to the nearest whole number of shares of common stock. There will be no future grants under the WRECO equity incentive plans.

The following table presents compensation expense recognized related to all stock-based awards (in thousands):



	Year Ended December 31,
	2017		2016		2015
Total stock-based compensation	$	15,906	$	12,612	$	11,935

Stock-based compensation is charged to general and administrative expense on the accompanying consolidated statements of operations. As of December 31, 2017, total unrecognized stock-based compensation related to all stock-based awards was $17.3 million and the weighted average term over which the expense was expected to be recognized was 1.57 years.

Summary of Stock Option Activity

The following table presents a summary of stock option awards for the year ended December 31, 2017:



	Options		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value (in thousands)
Options outstanding at December 31, 2016	2,971,370		$	13.12	4.4	$	1,568
Granted	—		—		—
Exercised	(1,066,298	)	11.74
Forfeited	(750,414	)	14.09
Options outstanding at December 31, 2017	1,154,658		14.16		4.9	$	4,350
Options exercisable at December 31, 2017	1,039,819		$	14.15	4.8	$	3,933

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. The total intrinsic value of stock option awards exercised during the years ended December 31, 2017, 2016 and 2015 was $4.5 million, $324,000 and $642,000, respectively. There were no stock option awards granted or assumed during the years ended December 31, 2017, 2016 and 2015.

Summary of Restricted Stock Unit Activity

The following table presents a summary of restricted stock units (“RSUs”) for the year ended December 31, 2017:



	Restricted Stock Units		Weighted Average Grant Date Fair Value Per Share		Aggregate Intrinsic Value (in thousands)
Nonvested RSUs at December 31, 2016	3,412,719		$	9.77	$	39,179
Granted	1,670,936		11.00
Vested	(714,612	)	12.34
Forfeited	(61,451	)	11.66
Nonvested RSUs at December 31, 2017	4,307,592		$	9.80	$	77,192

The total intrinsic value of restricted stock units that vested during the years ended December 31, 2017, 2016 and 2015 was $8.8 million, $4.6 million and $6.8 million, respectively. The total grant date fair value of restricted stock awards granted during the years ended December 31, 2017, 2016 and 2015 were $18.4 million, $21.8 million and $18.3 million, respectively.

On March 1, 2016, the Company granted an aggregate of 1,120,677 time-vested RSUs to employees and officers. The RSUs granted vest in equal installments annually on the anniversary of the grant date over a three year period. The fair value of each RSU granted on March 1, 2016 was measured using a price of $10.49 per share, which was the closing stock price on the date of grant. Each award will be expensed on a straight-line basis over the vesting period.

On March 1, 2016, the Company granted 297,426, 285,986 and 125,834 performance-based RSUs to the Company’s Chief Executive Officer, President, and Chief Financial Officer, respectively. The vesting, if at all, of these performance-based RSUs may range from 0% to 100% and will be based on the Company’s percentage attainment of specified threshold, target and maximum performance goals. The percentage of these performance-based RSUs that vest will be determined by comparing the Company’s total stockholder return ("TSR") to the TSRs of a group of peer homebuilding companies. The performance period for these performance-based RSUs is January 1, 2016 to December 31, 2018. These performance-based RSUs will not vest if the Company’s total stockholder return from January 1, 2016 to December 31, 2018 is not a positive number, provided that the executive will thereafter become vested in the award units, or portion thereof, that would have otherwise vested on December 31, 2018 if on any day after December 31, 2018 and on or before December 31, 2020, the Company’s total stockholder return is greater than zero and the executive is employed by the Company on that date. If the performance-based RSUs have not vested on or before December 31, 2020, such performance-based RSUs shall be cancelled and forfeited for no consideration. The fair value of these performance-based RSUs was determined to be $4.76 per share based on a Monte Carlo simulation. Each award will be expensed over the requisite service period.

On June 6, 2016, the Company granted an aggregate of 74,466 RSUs to the non-employee members of its board of directors. On March 27, 2017, 21,276 of these RSUs vested in their entirety and on May 25, 2017, 53,190 of these RSUs vested in their entirety. The fair value of each RSU granted on June 6, 2016 was measured using a price of $11.75 per share, which was the closing stock price on the date of grant. Each award was expensed on a straight-line basis over the vesting period.

On February 27, 2017, the Company granted an aggregate of 990,279 time-vested RSUs to employees and officers. The RSUs granted vest in equal installments annually on the anniversary of the grant date over a three year period. The fair value of each RSU granted on 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 will be 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 vest 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 will be expensed on a straight-line basis over the vesting period.

As RSUs vest for employees, a portion of the shares awarded is generally withheld to cover employee tax withholdings. As a result, the number of RSUs vested and the number of shares of TRI Pointe common stock issued will differ.

Income Taxes

The provision for income tax attributable to income before income taxes consisted of (in thousands):



	Year Ended December 31,
	2017		2016		2015
Current:
Federal	$	95,814	$	90,387	$	91,343
State	8,961		8,744		6,715
Total current taxes	104,775		99,131		98,058
Deferred:
Federal	37,151		5,749		8,296
State	10,341		1,214		5,725
Total deferred taxes	47,492		6,963		14,021
Total income tax expense	$	152,267	$	106,094	$	112,079

The Company’s provision for income taxes was different from the amount computed by applying the statutory federal income tax rate of 35% to the underlying income before income taxes as a result of the following (in thousands):



	Year Ended December 31,
	2017			2016			2015
Taxes at the U.S. federal statutory rate	$	118,936		$	105,779		$	111,846
State income taxes, net of federal tax impact	10,712			9,539			9,627
Domestic production activities deduction	(7,108		)	(5,037		)	(5,566		)
Non-deductible transaction costs	541			305			—
Change in valuation allowance	3,256			(4,038		)	(1,872		)
Tax Cuts and Jobs Act	21,961			—			—
Other, net	3,969			(454		)	(1,956		)
Total income tax expense	$	152,267		$	106,094		$	112,079
Effective income tax rate	44.8		%	35.1		%	35.1		%

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax basis, and for operating loss and tax credit carryforwards. Deferred taxes consisted of the following at December 31, 2017 and 2016 (in thousands):



	Year Ended December 31,
	2017			2016
Deferred tax assets:
Impairment and other valuation reserves	$	40,438		$	73,890
Incentive compensation	5,851			8,322
Indirect costs capitalized	19,574			25,377
Net operating loss carryforwards (state)	25,172			24,583
State taxes	2,181			2,985
Other costs and expenses	11,354			15,214
Gross deferred tax assets	104,570			150,371
Valuation allowance	(3,478		)	(323		)
Deferred tax assets, net of valuation allowance	101,092			150,048
Deferred tax liabilities:
Interest capitalized	(7,144		)	(814		)
Basis difference in inventory	(9,207		)	(14,186		)
Fixed assets	(1,710		)	(1,101		)
Intangibles	(5,360		)	(8,456		)
Deferred financing costs	(898		)	(924		)
Other	(360		)	(1,344		)
Deferred tax liabilities	(24,679		)	(26,825		)
Net deferred tax assets	$	76,413		$	123,223

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. The SEC staff issued Staff Accounting Bulletin 118, which provides guidance on accounting for the tax effects of the Tax Cuts and Jobs Act, for which the accounting under ASC 740 is incomplete. To the extent that a company's accounting for certain income tax effects of the Tax Cuts and Jobs Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before enactment of the Tax Cuts and Jobs Act.

As of December 31, 2017, we have completed the majority of our accounting for the tax effects of the Tax Cuts and Jobs Act. However, there is some uncertainty around the grandfathering provisions related to performance-based executive compensation. In addition, we also re-measured the applicable deferred tax assets and liabilities based on the rates at which they are expected to reverse. However, we are still analyzing certain aspects of the Tax Cuts and Jobs Act and state conformity to those provisions and refining our calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. As of 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 accounts for income taxes in accordance with 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.

As of December 31, 2017, the Company had a state net operating loss carryforward of $385.9 million, which will expire between 2028 and 2036. As of December 31, 2017 and 2016, we had a valuation allowance on our deferred tax assets of $3.5 million and $323,000, respectively. The increase in our valuation allowance in 2017 was related to the $13.2 million impairment of our investment in a limited liability company joint venture for the entitlement and development of land located in a Los Angeles County, California that was recorded in the fourth quarter of 2017. A valuation allowance was recorded against the deferred tax asset related to this impairment due to the fact that the joint venture if disposed at its carrying value would result in a capital loss, the realization of which is uncertain. The decrease in the valuation allowance in 2016 was principally due to a release of the valuation allowance against the deferred tax asset related to state net operating loss carryovers as realization of tax benefits are more likely than not to occur.

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.

Unrecognized tax benefits represent potential future obligations to taxing authorities if uncertain tax positions we have taken on previously filed tax returns are not sustained. These amounts represent the gross amount of exposure in individual jurisdictions and do not reflect any additional benefits expected to be realized if such positions were not sustained, such as federal deduction that could be realized if an unrecognized state deduction was not sustained.

The Company files income tax returns in the U.S., including federal and multiple state and local jurisdictions. The Company’s tax years 2014-2016 will remain open to examination by the federal and state authorities for three and four years, respectively, from the date of utilization of any net operating loss or credit carryforwards.

The following table summarizes the activity related to the Company’s gross unrecognized tax benefits (in thousands):



	Year Ended December 31,
	2017		2016
Balance at beginning of year	$	—	$	272
Increase (decrease) related to prior year tax positions	1,521		(272		)
Balance at end of year	$	1,521	$	—

The Company classifies interest and penalties related to income taxes as part of income tax expense. The Company has not recorded any tax expense for interest and penalties on uncertain tax positions during the years ended December 31, 2017, 2016 and 2015. The Company estimates that the uncertain tax positions, if reversed, would result in a tax benefit of approximately $1.4 million.

Related Party Transactions

TRI Pointe has certain liabilities with Weyerhaeuser related to a tax sharing agreement executed in connection with the Merger. The liabilities under the tax sharing agreement relate to a portion of the California net operating loss generated prior to the WRECO Merger that are expected to be realized after July 7, 2014; federal tax credits generated prior to the Merger that are expected to be realized after July 7, 2014; and deductions for stock option awards granted through December 31, 2013 that are expected to be realized after July 7, 2014. As of December 31, 2017 and 2016, we had an income tax liability to Weyerhaeuser of $7.7 million and $8.6 million, respectively, which is recorded in accrued expenses and other liabilities on the accompanying balance sheet.

We had no related party transactions for the twelve months ended December 31, 2017.

In May of 2016, we entered into an agreement with an affiliate of Starwood Capital Group, a then greater than 5% holder of our common stock, to acquire 52 lots located in Azusa, California, for an aggregate purchase price of $18.4 million. In October of 2016, we acquired 27 of these lots for a purchase price of $9.6 million. Our former Chairman of the Board is also the Chairman and Chief Executive Officer of Starwood Capital Group. This acquisition was approved by our independent directors. In January of 2015, TRI Pointe acquired 46 lots located in Castle Rock, Colorado, for a purchase price of approximately $2.8 million from an entity managed by an affiliate of Starwood Capital Group. In August of 2016, we agreed to purchase 257 additional lots for an aggregate purchase price of approximately $8.6 million. In October of 2016, we acquired 126 of these lots for a purchase price of $4.2 million. This acquisition was approved by our independent directors. As of March 27, 2017, Starwood Capital Group is no longer a related party.

In October of 2015, TRI Pointe entered into an agreement with an affiliate of BlackRock, Inc. to acquire 161 lots located in Dublin, California, for a purchase price of approximately $60.0 million. BlackRock, Inc. is a greater than 5% holder of our common stock. This acquisition was approved by the executive land committee, which was comprised of independent directors. In the second half of 2016, we acquired an additional 93 lots located in Dublin, California, for a combined purchase price of approximately $25.5 million from an affiliate of BlackRock, Inc. This acquisition was approved by a majority of the TRI Pointe independent directors.

Supplemental Disclosure to Consolidated Statement of Cash Flow

The following are supplemental disclosures to the consolidated statements of cash flows (in thousands):



	Year Ended December 31,
	2017			2016			2015
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest, net of amounts capitalized of $77,193, $53,028 and $60,964	$	—		$	—		$	—
Income taxes	$	74,388		$	117,215		$	69,917
Supplemental disclosures of noncash activities:
Accrued liabilities related to the purchase of operating properties and equipment	$	—		$	1,828		$	3,976
Amortization of senior note discount capitalized to real estate inventory	$	2,048		$	1,815		$	1,552
Amortization of deferred loan costs capitalized to real estate inventory	$	5,578		$	4,642		$	3,820
Effect of net consolidation and de-consolidation of variable interest entities:
(Decrease) increase in consolidated real estate inventory not owned	$	(17,485	)	$	(316	)	$	5,297
Increase in accrued expenses and other liabilities	$	—		$	—		$	300
Decrease (increase) in noncontrolling interests	$	17,485		$	316		$	(5,597	)

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 December 31, 2017 and December 31, 2016, condensed consolidating statements of operations for the full years ended December 31, 2017, 2016 and 2015, and condensed consolidating statements of cash flows for the full years ended December 31, 2017, 2016 and 2015. Because TRI Pointe’s non-Guarantor subsidiaries are considered minor, as defined in Rule 3-10(h) of Regulation S-X, the non-Guarantor subsidiaries’ information is not separately presented in the tables below, but is included with the Guarantors. Additionally, because TRI Pointe Group has no independent assets or operations, as defined in Rule 3-10(h) of Regulation S-X, the condensed consolidated financial information of TRI Pointe Group and TRI Pointe Homes, the co-issuers of the 2019 Notes and 2024 Notes, is presented together in the column titled “Issuer” for all periods presented after July 7, 2015, the date of the Reorganization.

Condensed Consolidating Balance Sheet (in thousands):



	December 31, 2017
	Issuer ⁽¹⁾		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, net	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

__________


⁽¹⁾	References to “Issuer” in Note 18, Supplemental Guarantor Information have the following meanings:


a.	for periods prior to July 7, 2015: TRI Pointe Homes only


b.	for periods from and after July 7, 2015: TRI Pointe Homes and TRI Pointe Group as co-issuers

Condensed Consolidating Balance Sheet (in thousands):



	December 31, 2016
	Issuer ⁽¹⁾		Guarantor Subsidiaries		Consolidating Adjustments			Consolidated TRI Pointe Group, Inc.
Assets
Cash and cash equivalents	$	141,568	$	67,089	$	—		$	208,657
Receivables	26,692		55,808		—			82,500
Intercompany receivables	775,321		—		(775,321		)	—
Real estate inventories	868,088		2,042,539		—			2,910,627
Investments in unconsolidated entities	—		17,546		—			17,546
Goodwill and other intangible assets, net	156,604		4,891		—			161,495
Investments in subsidiaries	1,285,295		—		(1,285,295		)	—
Deferred tax assets, net	15,644		107,579		—			123,223
Other assets	11,401		49,191		—			60,592
Total Assets	$	3,280,613	$	2,344,643	$	(2,060,616	)	$	3,564,640

Liabilities
Accounts payable	$	20,637	$	49,615	$	—		$	70,252
Intercompany payables	—		775,321		(775,321		)	—
Accrued expenses and other liabilities	48,496		215,349		—			263,845
Unsecured revolving credit facility	200,000		—		—			200,000
Seller financed loans	13,726		—		—			13,726
Senior notes, net	1,168,307		—		—			1,168,307
Total Liabilities	1,451,166		1,040,285		(775,321		)	1,716,130
Equity
Total stockholders’ equity	1,829,447		1,285,295		(1,285,295		)	1,829,447
Noncontrolling interests	—		19,063		—			19,063
Total Equity	1,829,447		1,304,358		(1,285,295		)	1,848,510
Total Liabilities and Equity	$	3,280,613	$	2,344,643	$	(2,060,616	)	$	3,564,640

__________


⁽¹⁾	References to “Issuer” in Note 18, Supplemental Guarantor Information have the following meanings:


a.	for periods prior to July 7, 2015: TRI Pointe Homes only


b.	for periods from and after July 7, 2015: TRI Pointe Homes and TRI Pointe Group as co-issuers

Condensed Consolidating Statement of Operations (in thousands):



	Year Ended December 31, 2017
	Issuer ⁽¹⁾			Guarantor Subsidiaries			Consolidating Adjustments			Consolidated TRI Pointe Group, Inc.
Homebuilding:
Home sales revenue	$	927,247		$	1,805,052		$	—		$	2,732,299
Land and lot sales revenue	—			74,269			—			74,269
Other operations revenue	—			2,333			—			2,333
Total revenues	927,247			1,881,654			—			2,808,901
Cost of home sales	780,732			1,392,519			—			2,173,251
Cost of land and lot sales	—			14,888			—			14,888
Other operations expense	—			2,298			—			2,298
Sales and marketing	34,286			102,780			—			137,066
General and administrative	67,006			70,758			—			137,764
Homebuilding income from operations	45,223			298,411			—			343,634
Equity in loss of unconsolidated entities	—			(11,433		)	—			(11,433		)
Other income, net	38			113			—			151
Homebuilding income before taxes	45,261			287,091			—			332,352
Financial Services:
Revenues	—			1,371			—			1,371
Expenses	—			331			—			331
Equity in income of unconsolidated entities	—			6,426			—			6,426
Financial services income before taxes	—			7,466			—			7,466
Income before taxes	45,261			294,557			—			339,818
Provision for income taxes	(22,501		)	(129,766		)	—			(152,267		)
Equity of net income (loss) of subsidiaries	164,431			—			(164,431		)	—
Net income (loss)	187,191			164,791			(164,431		)	187,551
Net income attributable to noncontrolling interests	—			(360		)	—			(360		)
Net income (loss) available to common stockholders	$	187,191		$	164,431		$	(164,431	)	$	187,191

_________


⁽¹⁾	References to “Issuer” in Note 18, Supplemental Guarantor Information have the following meanings:


a.	for periods prior to July 7, 2015: TRI Pointe Homes only


b.	for periods from and after July 7, 2015: TRI Pointe Homes and TRI Pointe Group as co-issuers

Condensed Consolidating Statement of Operations (in thousands):



	Year Ended December 31, 2016
	Issuer ⁽¹⁾			Guarantor Subsidiaries			Consolidating Adjustments			Consolidated TRI Pointe Group, Inc.
Homebuilding:
Home sales revenue	$	723,186		$	1,606,150		$	—		$	2,329,336
Land and lot sales revenue	—			72,272			—			72,272
Other operations revenue	—			2,314			—			2,314
Total revenues	723,186			1,680,736			—			2,403,922
Cost of home sales	607,316			1,229,011			—			1,836,327
Cost of land and lot sales	—			17,367			—			17,367
Other operations expense	—			2,247			—			2,247
Sales and marketing	29,092			98,811			—			127,903
General and administrative	59,327			64,792			—			124,119
Homebuilding income from operations	27,451			268,508			—			295,959
Equity in income of unconsolidated entities	—			179			—			179
Other income, net	149			163			—			312
Homebuilding income before taxes	27,600			268,850			—			296,450
Financial Services:
Revenues	—			1,220			—			1,220
Expenses	—			253			—			253
Equity in income of unconsolidated entities	—			4,810			—			4,810
Financial services income before taxes	—			5,777			—			5,777
Income before taxes	27,600			274,627			—			302,227
Provision for income taxes	(11,322		)	(94,772		)	—			(106,094		)
Equity of net income (loss) of subsidiaries	178,893			—			(178,893		)	—
Net income (loss)	195,171			179,855			(178,893		)	196,133
Net income attributable to noncontrolling interests	—			(962		)	—			(962		)
Net income (loss) available to common stockholders	$	195,171		$	178,893		$	(178,893	)	$	195,171

__________


⁽¹⁾	References to “Issuer” in Note 18, Supplemental Guarantor Information have the following meanings:


a.	for periods prior to July 7, 2015: TRI Pointe Homes only


b.	for periods from and after July 7, 2015: TRI Pointe Homes and TRI Pointe Group as co-issuers

Condensed Consolidating Statement of Operations (in thousands):



	Year Ended December 31, 2015
	Issuer ⁽¹⁾			Guarantor Subsidiaries			Consolidating Adjustments			Consolidated TRI Pointe Group, Inc.
Homebuilding:
Home sales revenue	$	774,005		$	1,517,259		$	—		$	2,291,264
Land and lot sales revenue	—			101,284			—			101,284
Other operations revenue	—			7,601			—			7,601
Total revenues	774,005			1,626,144			—			2,400,149
Cost of home sales	624,791			1,183,985			—			1,808,776
Cost of land and lot sales	—			35,089			—			35,089
Other operations expense	—			4,360			—			4,360
Sales and marketing	26,792			89,425			—			116,217
General and administrative	55,442			65,383			—			120,825
Homebuilding income from operations	66,980			247,902			—			314,882
Equity in income of unconsolidated entities	—			1,460			—			1,460
Other (loss) income, net	(127		)	985			—			858
Homebuilding income before taxes	66,853			250,347			—			317,200
Financial Services:
Revenues	—			1,010			—			1,010
Expenses	—			181			—			181
Equity in income of unconsolidated entities	—			1,231			—			1,231
Financial services income before taxes	—			2,060			—			2,060
Income before taxes	66,853			252,407			—			319,260
Provision for income taxes	(20,001		)	(92,078		)	—			(112,079		)
Equity of net income (loss) of subsidiaries	158,609			—			(158,609		)	—
Net income (loss)	205,461			160,329			(158,609		)	207,181
Net income attributable to noncontrolling interests	—			(1,720		)	—			(1,720		)
Net income (loss) available to common stockholders	$	205,461		$	158,609		$	(158,609	)	$	205,461

__________


⁽¹⁾	References to “Issuer” in Note 18, Supplemental Guarantor Information have the following meanings:


a.	for periods prior to July 7, 2015: TRI Pointe Homes only


b.	for periods from and after July 7, 2015: TRI Pointe Homes and TRI Pointe Group as co-issuers

Condensed Consolidating Statement of Cash Flows (in thousands):



	Year Ended December 31, 2017
	Issuer ⁽¹⁾			Guarantor Subsidiaries			Consolidating Adjustments			Consolidated TRI Pointe Group, Inc.
Cash flows from operating activities:
Net cash provided by operating activities	$	73,208		$	28,466		$	—		$	101,674
Cash flows from investing activities:
Purchases of property and equipment	(1,424		)	(1,181		)	—			(2,605		)
Proceeds from sale of property and equipment	—			6			—			6
Investments in unconsolidated entities	—			(980		)	—			(980		)
Intercompany	(14,163		)	—			14,163			—
Net cash (used in) provided by investing activities	(15,587		)	(2,155		)	14,163			(3,579		)
Cash flows from financing activities:
Borrowings from debt	500,000			—			—			500,000
Repayment of debt	(413,726		)	—			—			(413,726		)
Debt issuance costs	(5,957		)	—			—			(5,957		)
Distributions to noncontrolling interests	—			(1,333		)	—			(1,333		)
Proceeds from issuance of common stock under share-based awards	12,291			—			—			12,291
Minimum tax withholding paid on behalf of employees for share-based awards	(2,896		)	—			—			(2,896		)
Share repurchases	(112,217		)	—			—			(112,217		)
Intercompany	—			14,163			(14,163		)	—
Net cash (used in) provided by financing activities	(22,505		)	12,830			(14,163		)	(23,838		)
Net increase in cash and cash equivalents	35,116			39,141			—			74,257
Cash and cash equivalents - beginning of year	141,568			67,089			—			208,657
Cash and cash equivalents - end of year	$	176,684		$	106,230		$	—		$	282,914

__________


⁽¹⁾	References to “Issuer” in Note 18, Supplemental Guarantor Information have the following meanings:


a.	for periods prior to July 7, 2015: TRI Pointe Homes only


b.	for periods from and after July 7, 2015: TRI Pointe Homes and TRI Pointe Group as co-issuers

Condensed Consolidating Statement of Cash Flows (in thousands):



	Year Ended December 31, 2016
	Issuer ⁽¹⁾			Guarantor Subsidiaries			Consolidating Adjustments			Consolidated TRI Pointe Group, Inc.
Cash flows from operating activities:
Net cash (used in) provided by operating activities	$	(179,397	)	$	21,087		$	—		$	(158,310	)
Cash flows from investing activities:
Purchases of property and equipment	(1,603		)	(2,382		)	—			(3,985		)
Proceeds from sale of property and equipment	—			9			—			9
Investments in unconsolidated entities	—			(32		)	—			(32		)
Intercompany	12,102			—			(12,102		)	—
Net cash provided by (used in) investing activities	10,499			(2,405		)	(12,102		)	(4,008		)
Cash flows from financing activities:
Borrowings from debt	541,069			—			—			541,069
Repayment of debt	(330,458		)	(400		)	—			(330,858		)
Debt issuance costs	(5,062		)	—			—			(5,062		)
Repayment of debt payable to Weyerhaeuser	—			(2,442		)	—			(2,442		)
Decrease in book overdrafts	—			1,955			—			1,955
Distributions to Weyerhaeuser	—			(5,318		)	—			(5,318		)
Proceeds from issuance of common stock under share-based awards	587			—			—			587
Minimum tax withholding paid on behalf of employees for share-based awards	(1,359		)	—			—			(1,359		)
Share repurchases	(42,082		)	—			—			(42,082		)
Intercompany	—			(12,102		)	12,102			—
Net cash provided by (used in) financing activities	162,695			(18,307		)	12,102			156,490
Net (decrease) increase in cash and cash equivalents	(6,203		)	375			—			(5,828		)
Cash and cash equivalents - beginning of year	147,771			66,714			—			214,485
Cash and cash equivalents - end of year	$	141,568		$	67,089		$	—		$	208,657

_________


⁽¹⁾	References to “Issuer” in Note 18, Supplemental Guarantor Information have the following meanings:


a.	for periods prior to July 7, 2015: TRI Pointe Homes only


b.	for periods from and after July 7, 2015: TRI Pointe Homes and TRI Pointe Group as co-issuers

Condensed Consolidating Statement of Cash Flows (in thousands):



	Year Ended December 31, 2015
	Issuer ⁽¹⁾			Guarantor Subsidiaries			Consolidating Adjustments			Consolidated TRI Pointe Group, Inc.
Cash flows from operating activities
Net cash provided by operating activities	$	1,714		$	29,291		$	—		$	31,005
Cash flows from investing activities:
Purchases of property and equipment	(1,063		)	254			—			(809		)
Investments in unconsolidated entities	—			(1,468		)	—			(1,468		)
Distributions from unconsolidated entities	—			1,415			—			1,415
Intercompany	16,717			—			(16,717		)	—
Net cash provided by (used in) investing activities	15,654			201			(16,717		)	(862		)
Cash flows from financing activities:
Borrowings from debt	140,000			—			—			140,000
Repayment of debt	(112,651		)	(200		)	—			(112,851		)
Debt issuance costs	(2,688		)	—			—			(2,688		)
Net repayments of debt held by variable interest entities	—			(6,769		)	—			(6,769		)
Contributions from noncontrolling interests	—			5,990			—			5,990
Distributions to noncontrolling interests	—			(9,823		)	—			(9,823		)
Proceeds from issuance of common stock under share-based awards	1,616			—			—			1,616
Excess tax benefits of share-based awards	428			—			—			428
Minimum tax withholding paid on behalf of employees for restricted stock units	(2,190		)	—			—			(2,190		)
Intercompany	—			(16,717		)	16,717			—
Net cash provided by (used in) financing activities	24,515			(27,519		)	16,717			13,713
Net increase in cash and cash equivalents	41,883			1,973			—			43,856
Cash and cash equivalents - beginning of period	105,888			64,741			—			170,629
Cash and cash equivalents - end of period	$	147,771		$	66,714		$	—		$	214,485

__________


⁽¹⁾	References to “Issuer” in Note 18, Supplemental Guarantor Information have the following meanings:


a.	for periods prior to July 7, 2015: TRI Pointe Homes only


b.	for periods from and after July 7, 2015: TRI Pointe Homes and TRI Pointe Group as co-issuers

Results of Quarterly Operations

Results of Quarterly Operations (Unaudited)

The following table presents our unaudited quarterly financial data (in thousands, except per share amounts).



	First			Second			Third			Fourth
2017	Quarter			Quarter			Quarter			Quarter
Total revenues⁽¹⁾	$	393,391		$	570,626		$	717,735		$	1,128,520
Cost of homes sales and other⁽²⁾	319,618			455,476			534,494			880,849
Gross margin	$	73,773		$	115,150		$	183,241		$	247,671
Net income	$	8,217		$	32,803		$	72,289		$	74,242
Net income attributable to noncontrolling interests	(24		)	(89		)	$	(25	)	(222		)
Net income available to common stockholders	$	8,193		$	32,714		$	72,264		$	74,020

Earnings per share
Basic	$	0.05		$	0.21		$	0.48		$	0.49
Diluted	$	0.05		$	0.21		$	0.48		$	0.49

__________

⁽¹⁾ Total revenues includes total homebuilding revenues and financial services revenue.

⁽²⁾ Cost of homes sales and other includes cost of homes sales, cost of land and lot sales, and other operations expense.



	First			Second			Third			Fourth
2016	Quarter			Quarter			Quarter			Quarter
Total revenues⁽¹⁾	$	424,138		$	625,222		$	582,029		$	773,753
Cost of homes sales and other⁽²⁾	325,844			447,781			464,632			617,684
Gross margin	$	98,294		$	177,441		$	117,397		$	156,069
Net income	$	28,710		$	74,193		$	35,145		$	58,085
Net income attributable to noncontrolling interests	(160		)	(267		)	(311		)	(224		)
Net income available to common stockholders	$	28,550		$	73,926		$	34,834		$	57,861

Earnings per share
Basic	$	0.18		$	0.46		$	0.22		$	0.36
Diluted	$	0.18		$	0.46		$	0.22		$	0.36

__________

⁽¹⁾ Total revenues includes total homebuilding revenues and financial services revenue.

⁽²⁾ Cost of homes sales and other includes cost of homes sales, cost of land and lot sales, and other operations expense.

Quarterly and year-to-date computations of per share amounts are made independently. Therefore, the sum of per share amounts for the quarter may not agree with per share amounts for the year.

Organization and Summary of Significant Accounting Policies (Policies)

Organization, Formation of TRI Pointe Group and Basis of Presentation

Organization

TRI Pointe Group, Inc. (“TRI Pointe Group”) is engaged in the design, construction and sale of innovative single-family attached and detached homes through its portfolio of six quality brands across eight states, including Maracay Homes in Arizona, Pardee Homes in California and Nevada, Quadrant Homes in Washington, Trendmaker Homes in Texas, TRI Pointe Homes in California and Colorado and Winchester Homes in Maryland and Virginia.

Formation of TRI Pointe Group

On July 7, 2015, TRI Pointe Homes, Inc. (“TRI Pointe Homes”) reorganized its corporate structure (the “Reorganization”) whereby TRI Pointe Homes became a direct, wholly owned subsidiary of TRI Pointe Group. As a result of the Reorganization, each share of common stock, par value $0.01 per share, of TRI Pointe Homes (“Homes Common Stock”) was cancelled and converted automatically into the right to receive one validly issued, fully paid and non-assessable share of common stock, par value $0.01 per share, of TRI Pointe Group (“Group Common Stock”), each share having the same designations, rights, powers and preferences, and the qualifications, limitations and restrictions thereof as the shares of Homes Common Stock being so converted. TRI Pointe Group, as the successor issuer to TRI Pointe Homes (pursuant to Rule 12g-3(a) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), began making filings under the Securities Act of 1933, as amended, and the Exchange Act on July 7, 2015.

In connection with the Reorganization, TRI Pointe Group (i) became a co-issuer of TRI Pointe Homes’ 4.375% Senior Notes due 2019 (the "2019 Notes") and TRI Pointe Homes' 5.875% Senior Notes due 2024 (the "2024 Notes”); and (ii) replaced TRI Pointe Homes as the borrower under TRI Pointe Homes’ unsecured revolving credit facility.

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”).

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries as described in “Reverse Acquisition” below, as well as other entities in which the Company has a controlling interest and variable interest entities (“VIEs”) in which the Company is the primary beneficiary. The noncontrolling interests as of December 31, 2017 and 2016 represent the outside owners’ interests in the Company’s consolidated entities and the net equity of the VIE owners. All significant intercompany accounts have been eliminated upon consolidation.

Unless the context otherwise requires, the terms “we”, “us”, “our” and “the Company” have the following meanings:


•	For periods prior to July 7, 2015: TRI Pointe Homes (and its consolidated subsidiaries)


•	For periods from and after July 7, 2015: TRI Pointe Group (and its consolidated subsidiaries)

Reclassifications

Certain amounts in our consolidated financial statements for prior years have been reclassified to conform to the current period presentation, including the Company's condensed reporting of restructuring charges, included in general and administrative expense on the consolidated statements of operations in this annual report on Form 10-K.

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.

Subsequent Events

We evaluated subsequent events up until our consolidated financial statements were filed with the Securities and Exchange Commission.

Cash and Cash Equivalents and Concentration of Credit Risk

We define cash and cash equivalents as cash on hand, demand deposits with financial institutions, and short-term liquid investments with a maturity date of less than three months from the date of acquisition. The Company’s cash balances exceed federally insurable limits. The Company monitors the cash balances in its operating accounts and adjusts the cash balances as appropriate; however, these cash balances could be impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. To date, the Company has experienced no loss or lack of access to cash in its operating accounts.

Real Estate Inventories and Cost of Sales

Real estate inventories consist of land, land under development, homes under construction, completed homes and model homes and are stated at cost, net of impairment losses. We capitalize direct carrying costs, including interest, property taxes and related development costs to inventories. Field construction supervision and related direct overhead are also included in the capitalized cost of inventories. Direct construction costs are specifically identified and allocated to homes while other common costs, such as land, land improvements and carrying costs, are allocated to homes within a community based upon their anticipated relative sales or fair value. In accordance with ASC Topic 835, Interest (“ASC 835”), homebuilding interest capitalized as a cost of inventories owned is included in costs of sales as related units or lots are sold. To the extent our debt exceeds our qualified assets as defined in ASC 835, we expense a portion of the interest incurred by us. Qualified assets represent projects that are actively under development. Homebuilding cost of sales is recognized at the same time revenue is recognized and is recorded based upon total estimated costs to be allocated to each home within a community. Any changes to the estimated costs are allocated to the remaining undelivered lots and homes within their respective community. The estimation and allocation of these costs require a substantial degree of judgment by management.

The estimation process involved in determining relative sales or fair values is inherently uncertain because it involves estimating future sales values of homes before delivery. Additionally, in determining the allocation of costs to a particular land parcel or individual home, we rely on project budgets that are based on a variety of assumptions, including assumptions about construction schedules and future costs to be incurred. It is common that actual results differ from budgeted amounts for various reasons, including construction delays, increases in costs that have not been committed or unforeseen issues encountered during construction that fall outside the scope of existing contracts, or costs that come in less than originally anticipated. While the actual results for a particular construction project are accurately reported over time, a variance between the budget and actual costs could result in the understatement or overstatement of costs and have a related impact on gross margins between reporting periods. To reduce the potential for such variances, we have procedures that have been applied on a consistent basis, including assessing and revising project budgets on a periodic basis, obtaining commitments from subcontractors and vendors for future costs to be incurred and utilizing the most recent information available to estimate costs.

If there are indications of impairment, we perform a detailed budget and cash flow review of our real estate assets to determine whether the estimated remaining undiscounted future cash flows of the community are more or less than the asset’s carrying value. If the undiscounted cash flows are more than the asset’s carrying value, no impairment adjustment is required. However, if the undiscounted cash flows are less than the asset’s carrying value, the asset is deemed impaired and is written down to fair value. These impairment evaluations require us to make estimates and assumptions regarding future conditions, including timing and amounts of development costs and sales prices of real estate assets, to determine if expected future undiscounted cash flows will be sufficient to recover the asset’s carrying value.

When estimating undiscounted cash flows of a community, we make various assumptions, including: (i) expected sales prices and sales incentives to be offered, including the number of homes available, pricing and incentives being offered by us or other builders in other communities, and future sales price adjustments based on market and economic trends; (ii) expected sales pace and cancellation rates based on local housing market conditions, competition and historical trends; (iii) costs expended to date and expected to be incurred including, but not limited to, land and land development costs, home construction costs, interest costs, indirect construction and overhead costs, and selling and marketing costs; (iv) alternative product offerings that may be offered that could have an impact on sales pace, sales price and/or building costs; and (v) alternative uses for the property.

Many assumptions are interdependent and a change in one may require a corresponding change to other assumptions. For example, increasing or decreasing monthly sales absorption rates has a direct impact on the estimated per unit sales price of a home, the level of time sensitive costs (such as indirect construction, overhead and carrying costs), and selling and marketing costs (such as model maintenance costs and advertising costs). Depending on the underlying objective of the community, assumptions could have a significant impact on the projected cash flow analysis. For example, if our objective is to preserve operating margins, our cash flow analysis will be different than if the objective is to increase sales. These objectives may vary significantly from community to community and over time.

If assets are considered impaired, impairment is determined by the amount the asset’s carrying value exceeds its fair value. Fair value is determined based on estimated future cash flows discounted for inherent risks associated with real estate assets. These discounted cash flows are impacted by expected risk based on estimated land development, construction and delivery timelines; market risk of price erosion; uncertainty of development or construction cost increases; and other risks specific to the asset or market conditions where the asset is located when assessment is made. These factors are specific to each community and may vary among communities. We perform a quarterly review for indicators of impairment. For the year ended December 31, 2017 we had $854,000 of real estate inventory impairment charges. For the years ended December 31, 2016 and 2015 we recorded impairment charges of zero and $1.2 million, respectively.

Revenue Recognition

In accordance with ASC Topic 360, Property, Plant, and Equipment, revenues from home sales and other real estate sales are recorded and a profit is recognized when the respective units are delivered. Home sales and other real estate sales are delivered when all conditions of escrow are met, including delivery of the home or other real estate asset, title passage, appropriate consideration is received and collection of associated receivables, if any, is reasonably assured. Sales incentives are a reduction of revenues when the respective unit is delivered. When it is determined that the earnings process is not complete, the sale and/or the related profit are deferred for recognition in future periods using the percentage-of-completion method. The profit we record is based on the calculation of cost of sales, which is dependent on our allocation of costs, as described in more detail above in the section entitled “Real Estate Inventories and Cost of Sales.”

Warranty Reserves

In the normal course of business, we incur warranty-related costs associated with homes that have been delivered to homebuyers. Estimated future direct warranty costs are accrued and charged to cost of sales in the period when the related home sales revenues are recognized while indirect warranty overhead salaries and related costs are charged to cost of sales in the period incurred. Factors that affect the warranty accruals include the number of homes delivered, historical and anticipated rates of warranty claims and cost per claim. Our primary assumption in estimating the amounts we accrue for warranty costs is that historical claims experience is a strong indicator of future claims experience. In addition, we maintain general liability insurance designed to protect us against a portion of our risk of loss from warranty and construction-related claims. We also generally require our subcontractors and design professionals to indemnify us for liabilities arising from their work, subject to various limitations. However, such indemnity is significantly limited with respect to certain subcontractors that are added to our general liability insurance policy.

Our warranty reserve is based on actuarial analysis that uses our historical claim and expense data, as well as industry data to estimate these overall costs. 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.

Investments in Unconsolidated Entities

We have investments in unconsolidated entities over which we have significant influence that we account for using the equity method with taxes provided on undistributed earnings. We record earnings and accrue taxes in the period that the earnings are recorded by our affiliates. Under the equity method, our share of the unconsolidated entities’ earnings or loss is included in equity in (loss) income of unconsolidated entities in the accompanying consolidated statements of operations. We evaluate our investments in unconsolidated entities for impairment when events and circumstances indicate that the carrying value of the investment has been impaired beyond a temporary period of time.

Variable Interest Entities

The Company accounts for variable interest entities in accordance with ASC Topic 810, Consolidation (“ASC 810”). Under ASC 810, a variable interest entity (“VIE”) is created when: (a) the equity investment at risk in the entity is not sufficient to permit the entity to finance its activities without additional subordinated financial support provided by other parties, including the equity holders; (b) the entity’s equity holders as a group (i) lack the direct or indirect ability to make decisions about the entity, (ii) are not obligated to absorb expected losses of the entity or (iii) do not have the right to receive expected residual returns of the entity; or (c) the entity’s equity holders have voting rights that are not proportionate to their economic interests, and the activities of the entity involve, or are conducted on behalf of, the equity holder with disproportionately few voting rights. If an entity is deemed to be a VIE pursuant to ASC 810, the enterprise that has both (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (b) the obligation to absorb the expected losses of the entity or right to receive benefits from the entity that could be potentially significant to the VIE is considered the primary beneficiary and must consolidate the VIE.

Under ASC 810, a non-refundable deposit paid to an entity is deemed to be a variable interest that will absorb some or all of the entity’s expected losses if they occur. Our land purchase and lot option deposits generally represent our maximum exposure to the land seller if we elect not to purchase the optioned property. In some instances, we may also expend funds for due diligence, development and construction activities with respect to optioned land prior to takedown. Such costs are classified as inventories owned, which we would have to write off should we not exercise the option. Therefore, whenever we enter into a land option or purchase contract with an entity and make a non-refundable deposit, a VIE may have been created. In accordance with ASC 810, we perform ongoing reassessments of whether we are the primary beneficiary of a VIE.

Stock-Based Compensation

We account for share-based awards in accordance with ASC Topic 718, Compensation-Stock Compensation (“ASC 718”). ASC 718 requires that the cost resulting from all share-based payment transactions be recognized in the financial statements. ASC 718 requires all entities to apply a fair-value-based measurement method in accounting for share-based payment transactions with employees. Share-based awards are expensed on a straight-line basis over the expected vesting period.

Sales and Marketing Expense

Sales and marketing costs incurred to sell real estate projects are capitalized if they are reasonably expected to be recovered from the sale of the project or from incidental operations and are incurred for tangible assets that are used directly through the selling period to aid in the sale of the project or services that have been performed to obtain regulatory approval of sales. All other selling expenses and other marketing costs are expensed in the period incurred.

Restructuring Charges

Restructuring charges were incurred related to the merger (the “Merger”) with Weyerhaeuser Real Estate Company (“WRECO”), in addition to general cost reduction initiatives. These charges are composed of employee retention and severance-related expenses and lease termination costs. We account for restructuring charges in accordance with ASC Topic 420, Exit or Disposal Cost Obligations or ASC Topic 712 – Compensation – Nonretirement Postemployment Benefits.

Income Taxes

We account for income taxes in accordance with ASC Topic 740, Income Taxes (“ASC 740”). Deferred tax assets and liabilities are recorded based on future tax consequences of both temporary differences between the amounts reported for financial reporting purposes and the amounts deductible for income tax purposes, and are measured using enacted tax rates expected to apply in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period when the changes are enacted.

Each quarter we assess our deferred tax assets to determine whether all or any portion of the assets 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. Due to uncertainties inherent in the estimation process, it is possible that actual results may vary from estimates.

The enactment of the Tax Cuts and Jobs Act in the fourth quarter of 2017, among other things, reduced the federal corporate tax rate to 21% from 35%, effective January 1, 2018. This resulted in a $22.0 million reduction in our deferred tax asset. The ultimate impact of the Tax Cuts and Jobs Act may be different, possibly materially, due to changes in interpretations and assumptions, and guidance that may be issued and actions we may take in response to the tax law changes.

We classify any interest and penalties related to income taxes as part of income tax expense.

Goodwill and Other Intangible Assets

In accordance with ASC Topic 350, Intangibles-Goodwill and Other (“ASC 350”), we evaluate goodwill and indefinite-lived intangible assets for impairment on an annual basis, or more frequently if events or changes in circumstances between annual tests indicate that it is more likely than not that the asset is impaired. We have identified one reporting unit with goodwill, TRI Pointe Homes, and performed our annual goodwill impairment evaluation as of October 1, 2017. For further details on goodwill, see Note 8, Goodwill and Other Intangible Assets.

For our TRI Pointe Homes reporting unit, we performed a qualitative assessment to determine whether it is more likely than not that its fair value is less than its carrying amount. Upon completion of the October 2017 annual impairment assessment, we determined that no goodwill impairment was indicated. As of December 31, 2017, we are not aware of any significant indicators of impairment that exist for our goodwill that would require additional analysis.

An impairment of our indefinite-lived intangible asset is based on a comparison of its fair value to book value, without consideration of any recoverability due to the indefinite nature of the asset. As of December 31, 2017, we believe that our indefinite-lived intangible asset continues to have an indefinite life and that its fair value exceeds its carrying value. For further details on our indefinite-lived intangible asset, see Note 8, Goodwill and Other Intangible Assets.

In accordance with ASC Topic 360, Property, Plant and Equipment ("ASC 360"), we evaluate finite-lived intangible assets for impairment on an annual basis, or more frequently if events or changes in circumstances between annual tests indicate that it is more likely than not that the asset is impaired. An impairment in the carrying value of our finite-lived intangible asset is recognized whenever anticipated future undiscounted cash flows from the asset become unrecoverable and are estimated to be less than its carrying value. As of December 31, 2017, we believe that the carrying value of our finite-lived intangible asset is recoverable and that its fair value is greater than its carrying value. For further details on our finite-lived intangible asset, see Note 8, Goodwill and Other Intangible Assets.

Significant management judgment is required in the forecasts of future operating results that are used in our impairment evaluations. Our estimates are consistent with the plans and estimates that we use to manage our business. It is possible, however, that the plans may change and estimates used may prove to be inaccurate. If our actual results, or the plans and estimates used in future impairment analyses, are lower than the original estimates used to assess the recoverability of these assets, we could incur future impairment charges.

Recently Issued Accounting Standards

In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Codified as "ASC 606"). 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. 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. ASC 606 is effective for public entities for the annual periods ending after December 15, 2017, and for annual and interim periods thereafter. Companies may use either a full retrospective or a modified retrospective approach to adopt ASC 606, and we will adopt the new standard under the modified retrospective approach, effective January 1, 2018, by recognizing the net cumulative effect to the opening balance of retained earnings.

We have substantially completed our evaluation on the impact that the adoption of ASC 606 will have on our financial statements, and are in process of finalizing the analysis of certain costs, including the impact on income taxes and related accounts, which we do not expect to have a material impact to our consolidated financial statements. Based on our analysis, the adoption of ASC 606 will not have a material impact on the amount or timing of our home sales revenue, but could impact the amount and timing of future land and lot sales. The adoption of ASC 606 will impact 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 currently capitalize and amortize various sales office, model and other marketing related costs with each home delivered in a community. Under the new guidance, these costs will be expensed when incurred or capitalized to other assets and amortized to selling expense. We are adopting the modified retrospective approach and accordingly, the balance of any remaining unallocated capitalized sales office, model and other marketing related costs required to be expensed under ASC 606 will be recorded to our opening balance of retained earnings in our 2018 consolidated balance sheet. We expect to recognize an immaterial decrease to retained earnings.

In addition to the cumulative effect to retained earnings, effective January 1, 2018, the adoption of ASC 606 will result in reclassifications among Consolidated Balance Sheet accounts, notably from real estate inventories to other assets. These reclassifications will not materially change the total amount of net assets existing at December 31, 2017. ASC 606 will result in enhanced disclosure requirements, including changes in contract related assets and liabilities, quantitative and qualitative information about contracts with customers and qualitative information about performance obligations.

In February 2016, the FASB issued Accounting Standards Update No. 2016-02, (Codified as “ASC 842”), which requires an entity to recognize assets and liabilities on the balance sheet for the rights and obligations created by leased assets and provide additional disclosures. 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 currently evaluating the impact that the adoption of ASC 842 may have on our consolidated financial statements and disclosures.

In March 2016, the FASB issued Accounting Standards Update No. 2016-09, (“ASU 2016-09”), Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. On January 1, 2017, we adopted ASU 2016-09. This new guidance requires that we record excess tax benefit and tax deficiencies related to the settlement of employee stock-based compensation to the income tax expense line item on our consolidated statement of operations. We previously recorded the excess tax benefits and tax deficiencies to the additional paid-in capital line item on our consolidated balance sheets. Under the new guidance, the Company elected the option to no longer apply a forfeiture rate to our stock-based compensation expense, and to recognize forfeitures as they occur. The adoption of the aforementioned amendments in ASU 2016-09 were applied using the modified retrospective approach and did not have a material impact on our current or prior year financial statements, with no resulting cumulative-effect adjustment to retained earnings. The new guidance also requires excess tax benefits to be classified as an operating activity in the statement of cash flows rather than as a financing activity. Additionally, ASU 2016-09 requires that the minimum tax withholding paid on behalf of employees for share-based awards be classified as a financing activity in the statement of cash flows. Adoption of ASU 2016-09 did not result in any adjustments to prior period disclosures on the statement of cash flows.

In August 2016, the FASB issued Accounting Standards Update No. 2016-15, (“ASU 2016-15”), Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted. We are currently evaluating the impact that adoption of ASU 2016-15 may have on our consolidated financial statements and disclosures, however we do not believe the guidance will have a material impact on our financial statements upon adoption.

In January 2017, the FASB issued Accounting Standards Update No. 2017-04, (“ASU 2017-04”), Intangibles - Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment, 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 to have a material impact on our financial statements.

Segment Reporting

In accordance with ASC Topic 280, Segment Reporting, in determining the most appropriate reportable segments, we considered similar economic and other characteristics, including product types, average selling prices, gross profits, production processes, suppliers, subcontractors, regulatory environments, land acquisition results, brand names, and underlying demand and supply.

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

Segment Information (Tables)

Summary of Financial Information Relating to Reportable Segments

Total revenues and income before income taxes for each of our reportable segments were as follows (in thousands):



	2017			2016			2015
Revenues
Maracay Homes	$	296,768		$	255,253		$	185,645
Pardee Homes	826,033			730,848			670,063
Quadrant Homes	247,939			213,221			189,401
Trendmaker Homes	253,825			244,001			278,759
TRI Pointe Homes	927,247			723,186			774,005
Winchester Homes	257,089			237,413			302,276
Total homebuilding revenues	2,808,901			2,403,922			2,400,149
Financial services	1,371			1,220			1,010
Total	$	2,810,272		$	2,405,142		$	2,401,159
Income before taxes
Maracay Homes	$	23,987		$	17,189		$	9,849
Pardee Homes	198,738			204,237			183,077
Quadrant Homes	32,671			21,209			10,478
Trendmaker Homes	16,764			15,353			25,004
TRI Pointe Homes	89,811			62,013			104,970
Winchester Homes	15,472			16,147			22,411
Corporate	(45,091		)	(39,698		)	(38,589		)
Total homebuilding income before income taxes	332,352			296,450			317,200
Financial services	7,466			5,777			2,060
Total	$	339,818		$	302,227		$	319,260

Total real estate inventories and total assets for each of our reportable segments, as of the date indicated, were as follows (in thousands):



	December 31, 2017		December 31, 2016
Real estate inventories
Maracay Homes	$	243,883	$	228,965
Pardee Homes	1,245,659		1,098,608
Quadrant Homes	257,887		221,386
Trendmaker Homes	204,926		211,035
TRI Pointe Homes	855,727		868,088
Winchester Homes	297,471		282,545
Total	$	3,105,553	$	2,910,627
Total assets
Maracay Homes	$	268,866	$	255,466
Pardee Homes	1,346,296		1,201,302
Quadrant Homes	312,803		242,208
Trendmaker Homes	224,995		225,025
TRI Pointe Homes	1,062,920		1,052,400
Winchester Homes	313,921		305,379
Corporate	262,740		275,923
Total homebuilding assets	3,792,541		3,557,703
Financial services	12,840		6,937
Total	$	3,805,381	$	3,564,640

Earnings Per Share (Tables)

Computation of Basic and Diluted Earnings Per Share

The following table sets forth the components used in the computation of basic and diluted earnings per share (in thousands, except share and per share amounts):



	Year Ended December 31,
	2017		2016		2015
Numerator:
Income available to common stockholders	$	187,191	$	195,171	$	205,461
Denominator:
Basic weighted-average shares outstanding	154,134,411		160,859,782		161,692,152
Effect of dilutive shares:
Stock options and unvested restricted stock units	950,955		521,717		627,606
Diluted weighted-average shares outstanding	155,085,366		161,381,499		162,319,758
Earnings per share
Basic	$	1.21	$	1.21	$	1.27
Diluted	$	1.21	$	1.21	$	1.27
Antidilutive stock options not included in diluted earnings per share	3,288,340		4,551,337		2,622,391

Receivables, net (Tables)

Components of Receivables, Net

Receivables, net consisted of the following (in thousands):



	December 31, 2017		December 31, 2016
Escrow proceeds and other accounts receivable, net	$	89,783	$	35,625
Warranty insurance receivable(Note 13)	35,817		46,875
Total receivables	$	125,600	$	82,500

Real Estate Inventories (Tables)

Summary of Real Estate Inventories

Real estate inventories consisted of the following (in thousands):



	December 31, 2017		December 31, 2016
Real estate inventories owned:
Homes completed or under construction	$	793,685	$	659,210
Land under development	1,934,556		1,824,989
Land held for future development	138,651		226,915
Model homes	211,658		155,039
Total real estate inventories owned	3,078,550		2,866,153
Real estate inventories not owned:
Land purchase and land option deposits	27,003		26,174
Consolidated inventory held by VIEs	—		18,300
Total real estate inventories not owned	27,003		44,474
Total real estate inventories	$	3,105,553	$	2,910,627

Summary of Interest Incurred, Capitalized and Expensed

Interest incurred, capitalized and expensed were as follows (in thousands):



	Year Ended December 31,
	2017			2016			2015
Interest incurred	$	84,264		$	68,306		$	60,964
Interest capitalized	(84,264		)	(68,306		)	(60,964		)
Interest expensed	$	—		$	—		$	—
Capitalized interest in beginning inventory	$	157,329		$	140,311		$	124,461
Interest capitalized as a cost of inventory	84,264			68,306			60,964
Interest previously capitalized as a cost of inventory, included in cost of sales	(65,245		)	(51,288		)	(45,114		)
Capitalized interest in ending inventory	$	176,348		$	157,329		$	140,311

Schedule of Real Estate Inventory Impairments and Land Option Abandonments

Real estate inventory impairments and land option abandonments consisted of the following (in thousands):



	Year Ended December 31,
	2017		2016		2015
Real estate inventory impairments	$	854	$	—	$	1,167
Land and lot option abandonments and pre-acquisition costs	1,199		1,470		763
Total	$	2,053	$	1,470	$	1,930

Investments in Unconsolidated Entities (Tables)

Schedule of Cumulative Investment in Entities on Equity Method, Including Share of Earnings and Losses

Our cumulative investment in entities accounted for on the equity method, including our share of earnings and losses, consisted of the following (in thousands):



	December 31,
	2017		2016
Limited liability company interests	$	2,687	$	14,327
General partnership interests	3,183		3,219
Total	$	5,870	$	17,546

Aggregated Assets, Liabilities and Operating Results of Entities as Equity-Method Investments

Assets and liabilities of unconsolidated entities (in thousands):



	December 31,
	2017		2016
Assets
Cash	$	11,678	$	9,796
Receivables	6,564		10,203
Real estate inventories	99,997		97,402
Other assets	936		1,087
Total assets	$	119,175	$	118,488
Liabilities and equity
Accounts payable and other liabilities	$	12,208	$	12,844
Company’s equity	5,870		17,546
Outside interests' equity	101,097		88,098
Total liabilities and equity	$	119,175	$	118,488

Results of operations from unconsolidated entities (in thousands):



	Year Ended December 31,
	2017			2016			2015
Net sales	$	24,247		$	18,725		$	7,326
Other operating expense	(13,904		)	(11,315		)	(6,690		)
Other income (expense)	120			4			(279		)
Net income	$	10,463		$	7,414		$	357
Company’s equity in (loss) income of unconsolidated entities	$	(5,007	)	$	4,989		$	2,691

Variable Interest Entities (Tables)

Summary of Interests in Land Option Agreements

The following provides a summary of our interests in land option agreements (in thousands):



	December 31, 2017						December 31, 2016
	Deposits		Remaining Purchase Price		Consolidated Inventory Held by VIEs		Deposits		Remaining Purchase Price		Consolidated Inventory Held by VIEs
Consolidated VIEs	$	—	$	—	$	—	$	400	$	17,900	$	18,300
Unconsolidated VIEs	3,418		112,590		N/A		2,375		49,016		N/A
Other land option agreements	23,585		269,349		N/A		23,799		246,658		N/A
Total	$	27,003	$	381,939	$	—	$	26,574	$	313,574	$	18,300

Goodwill and Other Intangible Assets (Tables)

Schedule of Goodwill and Other Intangible Assets

Goodwill and other intangible assets consisted of the following (in thousands):



	December 31, 2017							December 31, 2016
	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		(6,322		)	21,657		27,979		(5,788		)	22,191
Total	$	167,283	$	(6,322	)	$	160,961	$	167,283	$	(5,788	)	$	161,495

Schedule of Expected Amortization of Intangible Asset

Expected amortization of our intangible asset related to Maracay Homes for the next five years and thereafter is (in thousands):



2018	$	534
2019	534
2020	534
2021	534
2022	534
Thereafter	1,687
Total	$	4,357

Other Assets (Tables)

Schedule of Other Assets

Other assets consisted of the following (in thousands):



	December 31, 2017		December 31, 2016
Prepaid expenses	$	13,040	$	24,495
Refundable fees and other deposits	16,012		17,731
Development rights, held for future use or sale	2,569		2,569
Deferred loan costs	3,427		2,101
Operating properties and equipment, net	10,528		10,884
Other	2,494		2,812
Total	$	48,070	$	60,592

Accrued Expenses and Other Liabilities (Tables)

Schedule Of Accrued Expenses And Other Liabilities

Accrued expenses and other liabilities consisted of the following (in thousands):



	December 31, 2017		December 31, 2016
Accrued payroll and related costs	$	36,863	$	33,761
Warranty reserves (Note 13)	69,373		83,135
Estimated cost for completion of real estate inventories	105,864		59,531
Customer deposits	19,568		13,437
Income tax liability to Weyerhaeuser	7,706		8,589
Accrued income taxes payable	30,672		1,200
Liability for uncertain tax positions	1,458		—
Accrued interest	11,014		11,570
Accrued insurance expense	1,187		529
Other tax liabilities	33,671		34,961
Other	13,506		17,132
Total	$	330,882	$	263,845

Senior Notes and Notes Payable and Other Borrowings (Tables)

Schedule of Senior Notes

Senior notes consisted of the following (in thousands):



	December 31, 2017			December 31, 2016
4.375% Senior Notes due June 15, 2019	$	450,000		$	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			—
Discount and deferred loan costs	(28,698		)	(31,693		)
Total	$	1,471,302		$	1,168,307

Components of Unsecured Revolving Credit Facility

Unsecured Revolving Credit Facility

Unsecured revolving credit facility consisted of the following (in thousands):



	December 31, 2017		December 31, 2016
Unsecured revolving credit facility	$	—	$	200,000

Components of Seller Financed Loans

Seller financed loans consisted of the following (in thousands):



	December 31, 2017		December 31, 2016
Seller financed loans	$	—	$	13,726

Fair Value Disclosures (Tables)

Summary of Assets and Liabilities Related to Financial Instruments, Measured at Fair Value on a Recurring Basis

A summary of assets and liabilities at December 31, 2017 and 2016, related to our financial instruments, measured at fair value on a recurring basis, is set forth below (in thousands):



		December 31, 2017				December 31, 2016
	Hierarchy	Book Value		Fair Value		Book Value		Fair Value
Senior Notes⁽¹⁾	Level 2	$	1,491,229	$	1,552,335	$	1,189,180	$	1,219,125
Unsecured revolving credit facility⁽²⁾	Level 2	$	—	$	—	$	200,000	$	177,410
Seller financed loans⁽³⁾	Level 2	$	—	$	—	$	13,726	$	13,189

__________


⁽¹⁾	The book value of the Senior Notes is net of discounts, excluding deferred loan costs of $19.9 million and $20.9 million as of December 31, 2017 and 2016, respectively. The estimated fair value of our Senior Notes at December 31, 2017 and 2016 is based on quoted market prices.


⁽²⁾	The estimated fair value of the Credit Facility at December 31, 2016 was based on a treasury curve analysis.


⁽³⁾	The estimated fair value of the seller financed loan at December 31, 2016 was based on a treasury curve analysis.

Summary of Nonfinancial Assets Measured at Fair Value on a Nonrecurring Basis

The following table presents impairment charges and the remaining net fair value for nonfinancial assets that were measured during the periods presented (in thousands):



	Year Ended December 31, 2017				Year Ended December 31, 2016
	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 recent offers received from outside third parties or actual contracts.

Commitments and Contingencies (Tables)

Schedule of Warranty Reserves

Warranty reserves consisted of the following (in thousands):



	Year Ended December 31,
	2017			2016			2015
Warranty reserves, beginning of period	$	83,135		$	45,948		$	33,270
Warranty reserves accrued	13,336			12,712			16,557
Adjustments to pre-existing reserves⁽¹⁾	(9,354		)	36,826			7,451
Warranty expenditures	(17,744		)	(12,351		)	(11,330		)
Warranty reserves, end of period	$	69,373		$	83,135		$	45,948

__________

⁽¹⁾

Included in this amount for 2016 is approximately $38.0 million of additional warranty liabilities estimated to be covered by our insurance policies that were adjusted to present the warranty reserves and related estimated warranty insurance receivable on a gross basis at December 31, 2016. Of the $38.0 million adjusted in 2016, approximately $36.5 million related to prior year estimated warranty insurance recoveries.

Schedule of Future Minimum Lease Payments under Non-Cancellable Operating Lease Agreements

The future minimum rental payments under operating leases, which primarily consist of office leases having initial or remaining noncancellable lease terms in excess of one year, are as follows (in thousands):



2018	$	7,006
2019	6,744
2020	6,769
2021	5,544
2022	3,107
Thereafter	3,044
	$	32,214

Schedule of Future Minimum Sublease Income under Non-Cancellable Sublease Agreements

Our lease commitments under this ground lease, which extends through 2071, were (in thousands):



2018	$	2,239
2019	2,239
2020	2,239
2021	2,239
2022	2,239
Thereafter	72,753
	$	83,948

Stock-Based Compensation (Tables)

Summary of Compensation Expense Recognized Related to all Stock-Based Awards

The following table presents compensation expense recognized related to all stock-based awards (in thousands):



	Year Ended December 31,
	2017		2016		2015
Total stock-based compensation	$	15,906	$	12,612	$	11,935

Summary of Stock Option Awards

The following table presents a summary of stock option awards for the year ended December 31, 2017:



	Options		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value (in thousands)
Options outstanding at December 31, 2016	2,971,370		$	13.12	4.4	$	1,568
Granted	—		—		—
Exercised	(1,066,298	)	11.74
Forfeited	(750,414	)	14.09
Options outstanding at December 31, 2017	1,154,658		14.16		4.9	$	4,350
Options exercisable at December 31, 2017	1,039,819		$	14.15	4.8	$	3,933

Summary of Restricted Stock Units

The following table presents a summary of restricted stock units (“RSUs”) for the year ended December 31, 2017:



	Restricted Stock Units		Weighted Average Grant Date Fair Value Per Share		Aggregate Intrinsic Value (in thousands)
Nonvested RSUs at December 31, 2016	3,412,719		$	9.77	$	39,179
Granted	1,670,936		11.00
Vested	(714,612	)	12.34
Forfeited	(61,451	)	11.66
Nonvested RSUs at December 31, 2017	4,307,592		$	9.80	$	77,192

Income Taxes (Tables)

Provision (Benefit) for Income Tax Attributable to Income (Loss) from Continuing Operations before Income Taxes

The provision for income tax attributable to income before income taxes consisted of (in thousands):



	Year Ended December 31,
	2017		2016		2015
Current:
Federal	$	95,814	$	90,387	$	91,343
State	8,961		8,744		6,715
Total current taxes	104,775		99,131		98,058
Deferred:
Federal	37,151		5,749		8,296
State	10,341		1,214		5,725
Total deferred taxes	47,492		6,963		14,021
Total income tax expense	$	152,267	$	106,094	$	112,079

Effective Tax Rate Differs from Federal Statutory Rate

The Company’s provision for income taxes was different from the amount computed by applying the statutory federal income tax rate of 35% to the underlying income before income taxes as a result of the following (in thousands):



	Year Ended December 31,
	2017			2016			2015
Taxes at the U.S. federal statutory rate	$	118,936		$	105,779		$	111,846
State income taxes, net of federal tax impact	10,712			9,539			9,627
Domestic production activities deduction	(7,108		)	(5,037		)	(5,566		)
Non-deductible transaction costs	541			305			—
Change in valuation allowance	3,256			(4,038		)	(1,872		)
Tax Cuts and Jobs Act	21,961			—			—
Other, net	3,969			(454		)	(1,956		)
Total income tax expense	$	152,267		$	106,094		$	112,079
Effective income tax rate	44.8		%	35.1		%	35.1		%

Components of Deferred Income Tax Assets

Deferred taxes consisted of the following at December 31, 2017 and 2016 (in thousands):



	Year Ended December 31,
	2017			2016
Deferred tax assets:
Impairment and other valuation reserves	$	40,438		$	73,890
Incentive compensation	5,851			8,322
Indirect costs capitalized	19,574			25,377
Net operating loss carryforwards (state)	25,172			24,583
State taxes	2,181			2,985
Other costs and expenses	11,354			15,214
Gross deferred tax assets	104,570			150,371
Valuation allowance	(3,478		)	(323		)
Deferred tax assets, net of valuation allowance	101,092			150,048
Deferred tax liabilities:
Interest capitalized	(7,144		)	(814		)
Basis difference in inventory	(9,207		)	(14,186		)
Fixed assets	(1,710		)	(1,101		)
Intangibles	(5,360		)	(8,456		)
Deferred financing costs	(898		)	(924		)
Other	(360		)	(1,344		)
Deferred tax liabilities	(24,679		)	(26,825		)
Net deferred tax assets	$	76,413		$	123,223

Schedule of Gross Unrecognized Tax Benefits

The following table summarizes the activity related to the Company’s gross unrecognized tax benefits (in thousands):



	Year Ended December 31,
	2017		2016
Balance at beginning of year	$	—	$	272
Increase (decrease) related to prior year tax positions	1,521		(272		)
Balance at end of year	$	1,521	$	—

Supplemental Disclosure to Consolidated Statement of Cash Flow (Tables)

Supplemental Disclosure to Consolidated Statement of Cash Flows

The following are supplemental disclosures to the consolidated statements of cash flows (in thousands):



	Year Ended December 31,
	2017			2016			2015
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest, net of amounts capitalized of $77,193, $53,028 and $60,964	$	—		$	—		$	—
Income taxes	$	74,388		$	117,215		$	69,917
Supplemental disclosures of noncash activities:
Accrued liabilities related to the purchase of operating properties and equipment	$	—		$	1,828		$	3,976
Amortization of senior note discount capitalized to real estate inventory	$	2,048		$	1,815		$	1,552
Amortization of deferred loan costs capitalized to real estate inventory	$	5,578		$	4,642		$	3,820
Effect of net consolidation and de-consolidation of variable interest entities:
(Decrease) increase in consolidated real estate inventory not owned	$	(17,485	)	$	(316	)	$	5,297
Increase in accrued expenses and other liabilities	$	—		$	—		$	300
Decrease (increase) in noncontrolling interests	$	17,485		$	316		$	(5,597	)

Supplemental Guarantor Information (Tables)

Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet (in thousands):



	December 31, 2017
	Issuer ⁽¹⁾		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, net	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

__________


⁽¹⁾	References to “Issuer” in Note 18, Supplemental Guarantor Information have the following meanings:


a.	for periods prior to July 7, 2015: TRI Pointe Homes only


b.	for periods from and after July 7, 2015: TRI Pointe Homes and TRI Pointe Group as co-issuers

Condensed Consolidating Balance Sheet (in thousands):



	December 31, 2016
	Issuer ⁽¹⁾		Guarantor Subsidiaries		Consolidating Adjustments			Consolidated TRI Pointe Group, Inc.
Assets
Cash and cash equivalents	$	141,568	$	67,089	$	—		$	208,657
Receivables	26,692		55,808		—			82,500
Intercompany receivables	775,321		—		(775,321		)	—
Real estate inventories	868,088		2,042,539		—			2,910,627
Investments in unconsolidated entities	—		17,546		—			17,546
Goodwill and other intangible assets, net	156,604		4,891		—			161,495
Investments in subsidiaries	1,285,295		—		(1,285,295		)	—
Deferred tax assets, net	15,644		107,579		—			123,223
Other assets	11,401		49,191		—			60,592
Total Assets	$	3,280,613	$	2,344,643	$	(2,060,616	)	$	3,564,640

Liabilities
Accounts payable	$	20,637	$	49,615	$	—		$	70,252
Intercompany payables	—		775,321		(775,321		)	—
Accrued expenses and other liabilities	48,496		215,349		—			263,845
Unsecured revolving credit facility	200,000		—		—			200,000
Seller financed loans	13,726		—		—			13,726
Senior notes, net	1,168,307		—		—			1,168,307
Total Liabilities	1,451,166		1,040,285		(775,321		)	1,716,130
Equity
Total stockholders’ equity	1,829,447		1,285,295		(1,285,295		)	1,829,447
Noncontrolling interests	—		19,063		—			19,063
Total Equity	1,829,447		1,304,358		(1,285,295		)	1,848,510
Total Liabilities and Equity	$	3,280,613	$	2,344,643	$	(2,060,616	)	$	3,564,640

__________


⁽¹⁾	References to “Issuer” in Note 18, Supplemental Guarantor Information have the following meanings:


a.	for periods prior to July 7, 2015: TRI Pointe Homes only


b.	for periods from and after July 7, 2015: TRI Pointe Homes and TRI Pointe Group as co-issuers

Condensed Consolidating Statement of Operations

Condensed Consolidating Statement of Operations (in thousands):



	Year Ended December 31, 2017
	Issuer ⁽¹⁾			Guarantor Subsidiaries			Consolidating Adjustments			Consolidated TRI Pointe Group, Inc.
Homebuilding:
Home sales revenue	$	927,247		$	1,805,052		$	—		$	2,732,299
Land and lot sales revenue	—			74,269			—			74,269
Other operations revenue	—			2,333			—			2,333
Total revenues	927,247			1,881,654			—			2,808,901
Cost of home sales	780,732			1,392,519			—			2,173,251
Cost of land and lot sales	—			14,888			—			14,888
Other operations expense	—			2,298			—			2,298
Sales and marketing	34,286			102,780			—			137,066
General and administrative	67,006			70,758			—			137,764
Homebuilding income from operations	45,223			298,411			—			343,634
Equity in loss of unconsolidated entities	—			(11,433		)	—			(11,433		)
Other income, net	38			113			—			151
Homebuilding income before taxes	45,261			287,091			—			332,352
Financial Services:
Revenues	—			1,371			—			1,371
Expenses	—			331			—			331
Equity in income of unconsolidated entities	—			6,426			—			6,426
Financial services income before taxes	—			7,466			—			7,466
Income before taxes	45,261			294,557			—			339,818
Provision for income taxes	(22,501		)	(129,766		)	—			(152,267		)
Equity of net income (loss) of subsidiaries	164,431			—			(164,431		)	—
Net income (loss)	187,191			164,791			(164,431		)	187,551
Net income attributable to noncontrolling interests	—			(360		)	—			(360		)
Net income (loss) available to common stockholders	$	187,191		$	164,431		$	(164,431	)	$	187,191

_________


⁽¹⁾	References to “Issuer” in Note 18, Supplemental Guarantor Information have the following meanings:


a.	for periods prior to July 7, 2015: TRI Pointe Homes only


b.	for periods from and after July 7, 2015: TRI Pointe Homes and TRI Pointe Group as co-issuers

Condensed Consolidating Statement of Operations (in thousands):



	Year Ended December 31, 2016
	Issuer ⁽¹⁾			Guarantor Subsidiaries			Consolidating Adjustments			Consolidated TRI Pointe Group, Inc.
Homebuilding:
Home sales revenue	$	723,186		$	1,606,150		$	—		$	2,329,336
Land and lot sales revenue	—			72,272			—			72,272
Other operations revenue	—			2,314			—			2,314
Total revenues	723,186			1,680,736			—			2,403,922
Cost of home sales	607,316			1,229,011			—			1,836,327
Cost of land and lot sales	—			17,367			—			17,367
Other operations expense	—			2,247			—			2,247
Sales and marketing	29,092			98,811			—			127,903
General and administrative	59,327			64,792			—			124,119
Homebuilding income from operations	27,451			268,508			—			295,959
Equity in income of unconsolidated entities	—			179			—			179
Other income, net	149			163			—			312
Homebuilding income before taxes	27,600			268,850			—			296,450
Financial Services:
Revenues	—			1,220			—			1,220
Expenses	—			253			—			253
Equity in income of unconsolidated entities	—			4,810			—			4,810
Financial services income before taxes	—			5,777			—			5,777
Income before taxes	27,600			274,627			—			302,227
Provision for income taxes	(11,322		)	(94,772		)	—			(106,094		)
Equity of net income (loss) of subsidiaries	178,893			—			(178,893		)	—
Net income (loss)	195,171			179,855			(178,893		)	196,133
Net income attributable to noncontrolling interests	—			(962		)	—			(962		)
Net income (loss) available to common stockholders	$	195,171		$	178,893		$	(178,893	)	$	195,171

__________


⁽¹⁾	References to “Issuer” in Note 18, Supplemental Guarantor Information have the following meanings:


a.	for periods prior to July 7, 2015: TRI Pointe Homes only


b.	for periods from and after July 7, 2015: TRI Pointe Homes and TRI Pointe Group as co-issuers

Condensed Consolidating Statement of Operations (in thousands):



	Year Ended December 31, 2015
	Issuer ⁽¹⁾			Guarantor Subsidiaries			Consolidating Adjustments			Consolidated TRI Pointe Group, Inc.
Homebuilding:
Home sales revenue	$	774,005		$	1,517,259		$	—		$	2,291,264
Land and lot sales revenue	—			101,284			—			101,284
Other operations revenue	—			7,601			—			7,601
Total revenues	774,005			1,626,144			—			2,400,149
Cost of home sales	624,791			1,183,985			—			1,808,776
Cost of land and lot sales	—			35,089			—			35,089
Other operations expense	—			4,360			—			4,360
Sales and marketing	26,792			89,425			—			116,217
General and administrative	55,442			65,383			—			120,825
Homebuilding income from operations	66,980			247,902			—			314,882
Equity in income of unconsolidated entities	—			1,460			—			1,460
Other (loss) income, net	(127		)	985			—			858
Homebuilding income before taxes	66,853			250,347			—			317,200
Financial Services:
Revenues	—			1,010			—			1,010
Expenses	—			181			—			181
Equity in income of unconsolidated entities	—			1,231			—			1,231
Financial services income before taxes	—			2,060			—			2,060
Income before taxes	66,853			252,407			—			319,260
Provision for income taxes	(20,001		)	(92,078		)	—			(112,079		)
Equity of net income (loss) of subsidiaries	158,609			—			(158,609		)	—
Net income (loss)	205,461			160,329			(158,609		)	207,181
Net income attributable to noncontrolling interests	—			(1,720		)	—			(1,720		)
Net income (loss) available to common stockholders	$	205,461		$	158,609		$	(158,609	)	$	205,461

__________


⁽¹⁾	References to “Issuer” in Note 18, Supplemental Guarantor Information have the following meanings:


a.	for periods prior to July 7, 2015: TRI Pointe Homes only


b.	for periods from and after July 7, 2015: TRI Pointe Homes and TRI Pointe Group as co-issuers

Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows (in thousands):



	Year Ended December 31, 2017
	Issuer ⁽¹⁾			Guarantor Subsidiaries			Consolidating Adjustments			Consolidated TRI Pointe Group, Inc.
Cash flows from operating activities:
Net cash provided by operating activities	$	73,208		$	28,466		$	—		$	101,674
Cash flows from investing activities:
Purchases of property and equipment	(1,424		)	(1,181		)	—			(2,605		)
Proceeds from sale of property and equipment	—			6			—			6
Investments in unconsolidated entities	—			(980		)	—			(980		)
Intercompany	(14,163		)	—			14,163			—
Net cash (used in) provided by investing activities	(15,587		)	(2,155		)	14,163			(3,579		)
Cash flows from financing activities:
Borrowings from debt	500,000			—			—			500,000
Repayment of debt	(413,726		)	—			—			(413,726		)
Debt issuance costs	(5,957		)	—			—			(5,957		)
Distributions to noncontrolling interests	—			(1,333		)	—			(1,333		)
Proceeds from issuance of common stock under share-based awards	12,291			—			—			12,291
Minimum tax withholding paid on behalf of employees for share-based awards	(2,896		)	—			—			(2,896		)
Share repurchases	(112,217		)	—			—			(112,217		)
Intercompany	—			14,163			(14,163		)	—
Net cash (used in) provided by financing activities	(22,505		)	12,830			(14,163		)	(23,838		)
Net increase in cash and cash equivalents	35,116			39,141			—			74,257
Cash and cash equivalents - beginning of year	141,568			67,089			—			208,657
Cash and cash equivalents - end of year	$	176,684		$	106,230		$	—		$	282,914

__________


⁽¹⁾	References to “Issuer” in Note 18, Supplemental Guarantor Information have the following meanings:


a.	for periods prior to July 7, 2015: TRI Pointe Homes only


b.	for periods from and after July 7, 2015: TRI Pointe Homes and TRI Pointe Group as co-issuers

Condensed Consolidating Statement of Cash Flows (in thousands):



	Year Ended December 31, 2016
	Issuer ⁽¹⁾			Guarantor Subsidiaries			Consolidating Adjustments			Consolidated TRI Pointe Group, Inc.
Cash flows from operating activities:
Net cash (used in) provided by operating activities	$	(179,397	)	$	21,087		$	—		$	(158,310	)
Cash flows from investing activities:
Purchases of property and equipment	(1,603		)	(2,382		)	—			(3,985		)
Proceeds from sale of property and equipment	—			9			—			9
Investments in unconsolidated entities	—			(32		)	—			(32		)
Intercompany	12,102			—			(12,102		)	—
Net cash provided by (used in) investing activities	10,499			(2,405		)	(12,102		)	(4,008		)
Cash flows from financing activities:
Borrowings from debt	541,069			—			—			541,069
Repayment of debt	(330,458		)	(400		)	—			(330,858		)
Debt issuance costs	(5,062		)	—			—			(5,062		)
Repayment of debt payable to Weyerhaeuser	—			(2,442		)	—			(2,442		)
Decrease in book overdrafts	—			1,955			—			1,955
Distributions to Weyerhaeuser	—			(5,318		)	—			(5,318		)
Proceeds from issuance of common stock under share-based awards	587			—			—			587
Minimum tax withholding paid on behalf of employees for share-based awards	(1,359		)	—			—			(1,359		)
Share repurchases	(42,082		)	—			—			(42,082		)
Intercompany	—			(12,102		)	12,102			—
Net cash provided by (used in) financing activities	162,695			(18,307		)	12,102			156,490
Net (decrease) increase in cash and cash equivalents	(6,203		)	375			—			(5,828		)
Cash and cash equivalents - beginning of year	147,771			66,714			—			214,485
Cash and cash equivalents - end of year	$	141,568		$	67,089		$	—		$	208,657

_________


⁽¹⁾	References to “Issuer” in Note 18, Supplemental Guarantor Information have the following meanings:


a.	for periods prior to July 7, 2015: TRI Pointe Homes only


b.	for periods from and after July 7, 2015: TRI Pointe Homes and TRI Pointe Group as co-issuers

Condensed Consolidating Statement of Cash Flows (in thousands):



	Year Ended December 31, 2015
	Issuer ⁽¹⁾			Guarantor Subsidiaries			Consolidating Adjustments			Consolidated TRI Pointe Group, Inc.
Cash flows from operating activities
Net cash provided by operating activities	$	1,714		$	29,291		$	—		$	31,005
Cash flows from investing activities:
Purchases of property and equipment	(1,063		)	254			—			(809		)
Investments in unconsolidated entities	—			(1,468		)	—			(1,468		)
Distributions from unconsolidated entities	—			1,415			—			1,415
Intercompany	16,717			—			(16,717		)	—
Net cash provided by (used in) investing activities	15,654			201			(16,717		)	(862		)
Cash flows from financing activities:
Borrowings from debt	140,000			—			—			140,000
Repayment of debt	(112,651		)	(200		)	—			(112,851		)
Debt issuance costs	(2,688		)	—			—			(2,688		)
Net repayments of debt held by variable interest entities	—			(6,769		)	—			(6,769		)
Contributions from noncontrolling interests	—			5,990			—			5,990
Distributions to noncontrolling interests	—			(9,823		)	—			(9,823		)
Proceeds from issuance of common stock under share-based awards	1,616			—			—			1,616
Excess tax benefits of share-based awards	428			—			—			428
Minimum tax withholding paid on behalf of employees for restricted stock units	(2,190		)	—			—			(2,190		)
Intercompany	—			(16,717		)	16,717			—
Net cash provided by (used in) financing activities	24,515			(27,519		)	16,717			13,713
Net increase in cash and cash equivalents	41,883			1,973			—			43,856
Cash and cash equivalents - beginning of period	105,888			64,741			—			170,629
Cash and cash equivalents - end of period	$	147,771		$	66,714		$	—		$	214,485

__________


⁽¹⁾	References to “Issuer” in Note 18, Supplemental Guarantor Information have the following meanings:


a.	for periods prior to July 7, 2015: TRI Pointe Homes only


b.	for periods from and after July 7, 2015: TRI Pointe Homes and TRI Pointe Group as co-issuers

Results of Quarterly Operations (Tables)

Schedule of Quarterly Results of Operations

The following table presents our unaudited quarterly financial data (in thousands, except per share amounts).



	First			Second			Third			Fourth
2017	Quarter			Quarter			Quarter			Quarter
Total revenues⁽¹⁾	$	393,391		$	570,626		$	717,735		$	1,128,520
Cost of homes sales and other⁽²⁾	319,618			455,476			534,494			880,849
Gross margin	$	73,773		$	115,150		$	183,241		$	247,671
Net income	$	8,217		$	32,803		$	72,289		$	74,242
Net income attributable to noncontrolling interests	(24		)	(89		)	$	(25	)	(222		)
Net income available to common stockholders	$	8,193		$	32,714		$	72,264		$	74,020

Earnings per share
Basic	$	0.05		$	0.21		$	0.48		$	0.49
Diluted	$	0.05		$	0.21		$	0.48		$	0.49

__________

⁽¹⁾ Total revenues includes total homebuilding revenues and financial services revenue.

⁽²⁾ Cost of homes sales and other includes cost of homes sales, cost of land and lot sales, and other operations expense.



	First			Second			Third			Fourth
2016	Quarter			Quarter			Quarter			Quarter
Total revenues⁽¹⁾	$	424,138		$	625,222		$	582,029		$	773,753
Cost of homes sales and other⁽²⁾	325,844			447,781			464,632			617,684
Gross margin	$	98,294		$	177,441		$	117,397		$	156,069
Net income	$	28,710		$	74,193		$	35,145		$	58,085
Net income attributable to noncontrolling interests	(160		)	(267		)	(311		)	(224		)
Net income available to common stockholders	$	28,550		$	73,926		$	34,834		$	57,861

Earnings per share
Basic	$	0.18		$	0.46		$	0.22		$	0.36
Diluted	$	0.18		$	0.46		$	0.22		$	0.36

__________

⁽¹⁾ Total revenues includes total homebuilding revenues and financial services revenue.

⁽²⁾ Cost of homes sales and other includes cost of homes sales, cost of land and lot sales, and other operations expense.

Organization and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $)

3 Months Ended

12 Months Ended

0 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2017

Common Stock [Member]

Dec. 31, 2016

Common Stock [Member]

Dec. 31, 2015

Common Stock [Member]

Dec. 31, 2014

Common Stock [Member]

Jul. 7, 2015

4.375% Senior notes due 2019 [Member]

Jul. 7, 2015

5.875% Senior notes due 2024 [Member]

Jul. 7, 2015

Tri Pointe Homes Inc [Member]

Jul. 7, 2015

Tri Pointe Group Inc [Member]

Debt Instrument [Line Items]

Common stock, par value (in dollars per share)

$ 0.01

Interest rate on senior note (percent)

4.375%

5.875%

Debt instrument, maturity year

2019

2024

Common stock issued and outstanding - historical (shares)

151,162,999

158,626,229

Common stock outstanding (shares)

151,162,999

158,626,229

151,162,999

158,626,229

161,813,750

161,355,490

Impairment charges

$ 854,000

$ 0

$ 1,167,000

Impairment of investments in unconsolidated entities

13,200,000

0

Restructuring charges

588,000

649,000

3,300,000

Gross unrecognized tax benefits

1,521,000

0

272,000

Reduction in deferred tax asset

$ 22,000,000

Segment Information - Additional Information (Detail)

12 Months Ended

Dec. 31, 2017

business

Segment Reporting Information [Line Items]

Number of principal businesses

2

All HomeBuilding Segments [Member]

Segment Reporting Information [Line Items]

Number of operating divisions

6

Number of reportable segments

6

Financial Services Segment [Member]

Segment Reporting Information [Line Items]

Number of reportable segments

1

Segment Information - Summary of Financial Information Relating to Reportable Segments (Detail) (USD $)

In Thousands, unless otherwise specified

3 Months Ended

12 Months Ended

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2016

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Segment Reporting Information [Line Items]

Total homebuilding revenues

$ 1,128,520

$ 717,735

$ 570,626

$ 393,391

$ 773,753

$ 582,029

$ 625,222

$ 424,138

$ 2,808,901

$ 2,403,922

$ 2,400,149

Financial services revenues

1,371

1,220

1,010

Total revenues

2,810,272

2,405,142

2,401,159

Income before income taxes

339,818

302,227

319,260

Financial Services Income Loss From Continuing Operations Before Taxes

7,466

5,777

2,060

Real estate inventories

3,105,553

2,910,627

3,105,553

2,910,627

Total assets

3,805,381

3,564,640

3,805,381

3,564,640

All HomeBuilding Segments [Member]

Segment Reporting Information [Line Items]

Total homebuilding revenues

2,808,901

2,403,922

2,400,149

Income before income taxes

332,352

296,450

317,200

Real estate inventories

3,105,553

2,910,627

3,105,553

2,910,627

Total assets

3,792,541

3,557,703

3,792,541

3,557,703

Operating segments [Member] |
Maracay Homes [Member]

Segment Reporting Information [Line Items]

Total homebuilding revenues

296,768

255,253

185,645

Income before income taxes

23,987

17,189

9,849

Real estate inventories

243,883

228,965

243,883

228,965

Total assets

268,866

255,466

268,866

255,466

Operating segments [Member] |
Pardee Homes [Member]

Segment Reporting Information [Line Items]

Total homebuilding revenues

826,033

730,848

670,063

Income before income taxes

198,738

204,237

183,077

Real estate inventories

1,245,659

1,098,608

1,245,659

1,098,608

Total assets

1,346,296

1,201,302

1,346,296

1,201,302

Operating segments [Member] |
Quadrant Homes [Member]

Segment Reporting Information [Line Items]

Total homebuilding revenues

247,939

213,221

189,401

Income before income taxes

32,671

21,209

10,478

Real estate inventories

257,887

221,386

257,887

221,386

Total assets

312,803

242,208

312,803

242,208

Operating segments [Member] |
Trendmaker Homes [Member]

Segment Reporting Information [Line Items]

Total homebuilding revenues

253,825

244,001

278,759

Income before income taxes

16,764

15,353

25,004

Real estate inventories

204,926

211,035

204,926

211,035

Total assets

224,995

225,025

224,995

225,025

Operating segments [Member] |
Tri Pointe [Member]

Segment Reporting Information [Line Items]

Total homebuilding revenues

927,247

723,186

774,005

Income before income taxes

89,811

62,013

104,970

Real estate inventories

855,727

868,088

855,727

868,088

Total assets

1,062,920

1,052,400

1,062,920

1,052,400

Operating segments [Member] |
Winchester Homes [Member]

Segment Reporting Information [Line Items]

Total homebuilding revenues

257,089

237,413

302,276

Income before income taxes

15,472

16,147

22,411

Real estate inventories

297,471

282,545

297,471

282,545

Total assets

313,921

305,379

313,921

305,379

Operating segments [Member] |
Financial Services Segment [Member]

Segment Reporting Information [Line Items]

Financial services revenues

1,371

1,220

1,010

Financial Services Income Loss From Continuing Operations Before Taxes

7,466

5,777

2,060

Total assets

12,840

6,937

12,840

6,937

Corporate [Member]

Segment Reporting Information [Line Items]

Income before income taxes

(45,091)

(39,698)

(38,589)

Total assets

$ 262,740

$ 275,923

$ 262,740

$ 275,923

Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) (USD $)

In Thousands, except Share data, unless otherwise specified

3 Months Ended

12 Months Ended

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2016

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Numerator:

Income available to common stockholders

$ 187,191

$ 195,171

$ 205,461

Denominator:

Basic weighted-average shares outstanding (shares)

154,134,411

160,859,782

161,692,152

Effect of dilutive shares:

Stock options and unvested restricted stock units (shares)

950,955

521,717

627,606

Diluted weighted-average shares outstanding (shares)

155,085,366

161,381,499

162,319,758

Basic

Basic (in dollars per share)

$ 0.49

$ 0.48

$ 0.21

$ 0.05

$ 0.36

$ 0.22

$ 0.46

$ 0.18

$ 1.21

$ 1.27

Diluted

Diluted (in dollars per share)

$ 0.49

$ 0.48

$ 0.21

$ 0.05

$ 0.36

$ 0.22

$ 0.46

$ 0.18

$ 1.21

$ 1.27

Antidilutive stock options not included in diluted earnings per share (in shares)

3,288,340

4,551,337

2,622,391

Earnings Per Share - Additional Information (Detail)

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Business Acquisition [Line Items]

Common stock issued and outstanding - historical (shares)

151,162,999

158,626,229

TRI Pointe shares outstanding - recast (shares)

151,162,999

158,626,229

Common Stock [Member]

Business Acquisition [Line Items]

TRI Pointe shares outstanding - recast (shares)

151,162,999

158,626,229

161,813,750

161,355,490

Receivables, Net - Components of Receivables, Net (Detail) (USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

Receivables [Abstract]

Escrow proceeds and other accounts receivable, net

$ 89,783

$ 35,625

Warranty insurance receivable

35,817

46,875

Total receivables

$ 125,600

$ 82,500

Receivables, Net - Additional Information (Detail) (USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

Receivables [Abstract]

Allowances for doubtful accounts

$ 330

$ 286

Real Estate Inventories - Summary of Real Estate Inventories (Detail) (USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

Real estate inventories owned:

Homes completed or under construction

$ 793,685

$ 659,210

Land under development

1,934,556

1,824,989

Land held for future development

138,651

226,915

Model homes

211,658

155,039

Total real estate inventories owned

3,078,550

2,866,153

Real estate inventories not owned:

Land purchase and land option deposits

27,003

26,174

Consolidated inventory held by VIEs

0

18,300

Total real estate inventories not owned

27,003

44,474

Total real estate inventories

$ 3,105,553

$ 2,910,627

Real Estate Inventories - Summary of Interest Incurred, Capitalized and Expensed (Detail) (USD $)

In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Real Estate [Abstract]

Interest incurred

$ 84,264

$ 68,306

$ 60,964

Interest capitalized

(84,264)

(68,306)

(60,964)

Interest expensed

0

Real Estate Inventory, Capitalized Interest Costs [Roll Forward]

Capitalized interest in beginning inventory

157,329

140,311

124,461

Interest capitalized as a cost of inventory

84,264

68,306

60,964

Interest previously capitalized as a cost of inventory, included in cost of sales

(65,245)

(51,288)

(45,114)

Capitalized interest in ending inventory

$ 176,348

$ 157,329

$ 140,311

Real Estate Inventories - Schedule of Real Estate Inventory Impairments and Land Option Abandonments (Detail) (USD $)

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Real Estate [Abstract]

Real estate inventory impairments

$ 854,000

$ 0

$ 1,167,000

Land and lot option abandonments and pre-acquisition costs

1,199,000

1,470,000

763,000

Real estate inventory impairments and land option abandonments, Total

$ 2,053,000

$ 1,470,000

$ 1,930,000

Investments in Unconsolidated Entities - Additional Information (Detail) (USD $)

12 Months Ended

3 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2017

Minimum [Member]

Dec. 31, 2017

Maximum [Member]

Dec. 31, 2017

Homebuilding Partnerships or Limited Liability Companies [Member]

investment

Dec. 31, 2017

Financial Services Limited Liability Company [Member]

investment

Dec. 31, 2017

Investment Joint Venture [Member]

Sep. 30, 2017

Investment Joint Venture [Member]

Investment Holdings [Line Items]

Number of equity investments

5

1

Ownership interest (percent)

5.00%

65.00%

Impaired joint venture

$ 13,200,000

Impairment of joint venture

$ 13,200,000

$ 0

$ 13,200,000

Equity stake in joint venture (percent)

5.00%

Investments in Unconsolidated Entities - Schedule of Cumulative Investment in Entities on Equity Method, Including Share of Earnings and Losses (Detail) (USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

Schedule of Investments [Line Items]

Investments in unconsolidated entities

$ 5,870

$ 17,546

Limited Liability Company Interests [Member]

Schedule of Investments [Line Items]

Investments in unconsolidated entities

2,687

14,327

General Partnership Interests [Member]

Schedule of Investments [Line Items]

Investments in unconsolidated entities

$ 3,183

$ 3,219

Investments in Unconsolidated Entities - Aggregated Assets, Liabilities and Operating Results of Entities as Equity-Method Investments (Detail) (USD $)

In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Assets

Total assets

$ 119,175

$ 118,488

Liabilities and equity

Accounts payable and other liabilities

12,208

12,844

Company’s equity

5,870

17,546

Outside interests' equity

101,097

88,098

Total liabilities and equity

119,175

118,488

Net sales

24,247

18,725

7,326

Other operating expense

(13,904)

(11,315)

(6,690)

Other income (expense)

120

4

(279)

Net income

10,463

7,414

357

Company’s equity in (loss) income of unconsolidated entities

(5,007)

4,989

2,691

Cash [Member]

Assets

Total assets

11,678

9,796

Receivables [Member]

Assets

Total assets

6,564

10,203

Real Estate Inventories [Member]

Assets

Total assets

99,997

97,402

Other Assets [Member]

Assets

Total assets

$ 936

$ 1,087

Variable Interest Entities - Summary of Interests in Land Option Agreements (Detail) (USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

Variable Interest Entity [Line Items]

Deposits

$ 27,003

$ 26,574

Remaining Purchase Price

381,939

313,574

Consolidated inventory held by VIEs

0

18,300

Consolidated VIEs [Member]

Variable Interest Entity [Line Items]

Deposits

0

400

Remaining Purchase Price

0

17,900

Consolidated inventory held by VIEs

0

18,300

Unconsolidated VIEs [Member]

Variable Interest Entity [Line Items]

Deposits

3,418

2,375

Remaining Purchase Price

112,590

49,016

Other land option agreements [Member]

Variable Interest Entity [Line Items]

Deposits

23,585

23,799

Remaining Purchase Price

$ 269,349

$ 246,658

Variable Interest Entities - Additional Information (Detail) (Other land option agreements [Member], USD $)

In Millions, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

Other land option agreements [Member]

Variable Interest Entity [Line Items]

Capitalized pre-acquisition costs

$ 4.5

$ 3.6

Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $)

12 Months Ended

Dec. 31, 2017

asset

Dec. 31, 2016

Dec. 31, 2017

Indefinite-Lived Trade Names [Member]

Dec. 31, 2017

Finite-Lived Trade Names [Member]

Dec. 31, 2016

Finite-Lived Trade Names [Member]

Dec. 31, 2017

Maracay Homes [Member]

Jul. 7, 2014

WRECO Transaction [Member]

Schedule Of Intangible Assets And Goodwill [Line Items]

Goodwill

$ 139,304,000

$ 139,300,000

Number of intangible assets

2

Intangible assets useful life

20 years

Remaining useful life of amortizing asset

8 years 2 months 12 days

9 years 2 months 12 days

Amortization expense

534,000

Indefinite life intangible asset

$ 17,300,000

Goodwill and Other Intangible Assets - Schedule of Goodwill and Other Intangible Assets (Detail) (USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

$ 139,304

Trade names, Gross Carrying Amount

27,979

Goodwill and Trade name, Gross Carrying Amount

167,283

Accumulated Amortization

(6,322)

(5,788)

Trade names, Net Carrying Amount

21,657

22,191

Goodwill and Trade name, Net Carrying Amount

$ 160,961

$ 161,495

Goodwill and Other Intangible Assets - Schedule of Expected Amortization of Intangible Asset (Detail) (USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

2018

$ 534

2019

534

2020

534

2021

534

2022

534

Thereafter

1,687

Total

$ 4,357

Other Assets - Schedule of Other Assets (Detail) (USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Prepaid expenses

$ 13,040

$ 24,495

Refundable fees and other deposits

16,012

17,731

Development rights, held for future use or sale

2,569

Deferred loan costs

3,427

2,101

Operating properties and equipment, net

10,528

10,884

Other

2,494

2,812

Other assets, total

$ 48,070

$ 60,592

Accrued Expenses and Other Liabilities - Schedule of Accrued Expenses and Other Liabilities (Detail) (USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Payables and Accruals [Abstract]

Accrued payroll and related costs

$ 36,863

$ 33,761

Warranty reserves

69,373

83,135

45,948

33,270

Estimated cost for completion of real estate inventories

105,864

59,531

Customer deposits

19,568

13,437

Income tax liability to Weyerhaeuser

7,706

8,589

Accrued income taxes payable

30,672

1,200

Liability for uncertain tax positions

1,458

0

Accrued interest

11,014

11,570

Accrued insurance expense

1,187

529

Other tax liabilities

33,671

34,961

Other

13,506

17,132

Total

$ 330,882

$ 263,845

Senior Notes and Notes Payable and Other Borrowings - Schedule of Senior Notes (Detail) (USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

Debt Instrument [Line Items]

Discount and deferred loan costs

$ (28,698)

$ (31,693)

Long-term Debt

1,471,302

1,168,307

Senior Notes [Member] |
4.375% Senior notes due 2019 [Member]

Debt Instrument [Line Items]

Long-term debt, gross

450,000

Senior Notes [Member] |
4.875% Senior Notes due July 1, 2021 [Member]

Debt Instrument [Line Items]

Long-term debt, gross

300,000

Senior Notes [Member] |
5.875% Senior notes due 2024 [Member]

Debt Instrument [Line Items]

Long-term debt, gross

450,000

Senior Notes [Member] |
5.250% Senior Notes due June 1, 2027 [Member]

Debt Instrument [Line Items]

Long-term debt, gross

$ 300,000

$ 0

Senior Notes and Notes Payable and Other Borrowings - Schedule of Senior Notes (Phantoms) (Detail)

3 Months Ended

12 Months Ended

Mar. 31, 2017

4.375% Senior notes due 2019 [Member]

Jul. 7, 2015

4.375% Senior notes due 2019 [Member]

Mar. 31, 2017

5.875% Senior notes due 2024 [Member]

Jul. 7, 2015

5.875% Senior notes due 2024 [Member]

Dec. 31, 2017

Senior Notes [Member]

4.375% Senior notes due 2019 [Member]

Dec. 31, 2016

Senior Notes [Member]

4.375% Senior notes due 2019 [Member]

Dec. 31, 2017

Senior Notes [Member]

4.875% Senior Notes due 2021 [Member]

Dec. 31, 2016

Senior Notes [Member]

4.875% Senior Notes due 2021 [Member]

May 31, 2016

Senior Notes [Member]

4.875% Senior Notes due 2021 [Member]

Dec. 31, 2017

Senior Notes [Member]

5.875% Senior notes due 2024 [Member]

Dec. 31, 2016

Senior Notes [Member]

5.875% Senior notes due 2024 [Member]

Debt Instrument [Line Items]

Interest rate on senior note (percent)

4.375%

5.875%

4.375%

4.875%

5.875%

Maturity date of senior note

Jun. 15, 2019

Jun. 15, 2024

Jun. 15, 2019

Jul. 01, 2021

Jun. 15, 2024

Senior Notes and Notes Payable and Other Borrowings - Additional Information (Detail) (USD $)

0 Months Ended

12 Months Ended

1 Months Ended

12 Months Ended

3 Months Ended

12 Months Ended

3 Months Ended

12 Months Ended

Jun. 13, 2014

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2017

Notes payable [Member]

Dec. 31, 2016

Notes payable [Member]

Dec. 31, 2017

Senior Notes [Member]

Dec. 31, 2016

Senior Notes [Member]

Dec. 31, 2016

Seller financed loan [Member]

Jun. 30, 2017

5.250% Senior Notes due June 1, 2027 [Member]

Senior Notes [Member]

May 31, 2016

4.875% Senior Notes due July 1, 2021 [Member]

Senior Notes [Member]

Dec. 31, 2017

4.875% Senior Notes due July 1, 2021 [Member]

Senior Notes [Member]

Dec. 31, 2016

4.875% Senior Notes due July 1, 2021 [Member]

Senior Notes [Member]

Mar. 31, 2017

4.375% Senior notes due 2019 [Member]

Dec. 31, 2017

4.375% Senior notes due 2019 [Member]

Jul. 7, 2015

4.375% Senior notes due 2019 [Member]

Dec. 31, 2017

4.375% Senior notes due 2019 [Member]

Senior Notes [Member]

Dec. 31, 2016

4.375% Senior notes due 2019 [Member]

Senior Notes [Member]

Mar. 31, 2017

5.875% Senior notes due 2024 [Member]

Dec. 31, 2017

5.875% Senior notes due 2024 [Member]

Jul. 7, 2015

5.875% Senior notes due 2024 [Member]

Dec. 31, 2017

5.875% Senior notes due 2024 [Member]

Senior Notes [Member]

Dec. 31, 2016

5.875% Senior notes due 2024 [Member]

Senior Notes [Member]

Jun. 20, 2017

Unsecured revolving credit facility [Member]

Jun. 19, 2017

Unsecured revolving credit facility [Member]

Dec. 31, 2017

Unsecured revolving credit facility [Member]

Six Hundred And Twenty Five Million Revolving Credit Facility [Member]

Dec. 31, 2016

Unsecured revolving credit facility [Member]

Six Hundred And Twenty Five Million Revolving Credit Facility [Member]

Dec. 31, 2017

Unsecured revolving credit facility [Member]

Six Hundred And Twenty Five Million Revolving Credit Facility [Member]

Minimum [Member]

Dec. 31, 2017

Unsecured revolving credit facility [Member]

Six Hundred And Twenty Five Million Revolving Credit Facility [Member]

Maximum [Member]

Dec. 31, 2017

Letters of credit [Member]

Six Hundred And Twenty Five Million Revolving Credit Facility [Member]

Debt Instrument [Line Items]

Aggregate principal amount

$ 300,000,000

Interest rate on debt (percent)

5.25%

4.875%

4.375%

5.875%

Percentage of aggregate principal amount (percent)

100.00%

99.44%

Proceeds from issuance of debt note, net

296,300,000

293,900,000

Notes issue price as a percentage of principal amount

98.89%

98.15%

Proceeds from issuance of senior notes

861,300,000

Maturity date of senior note

Jul. 01, 2021

Jun. 15, 2019

Jun. 15, 2024

Principal payment on Senior Notes

0

Capitalization of deferred finance costs

3,427,000

2,101,000

19,900,000

20,900,000

Accrued interest

11,014,000

11,570,000

10,600,000

10,700,000

519,000

426,000

Unsecured revolving credit facility

600,000,000

625,000,000

75,000,000

Debt instrument variable interest rate

1.25%

2.00%

Notes payable and other borrowings

0

200,000,000

0

200,000,000

Available secured revolving credit facility

592,300,000

Outstanding letters of credit

7,700,000

4,300,000

Interest incurred

84,264,000

68,306,000

60,964,000

Interest capitalized

84,264,000

68,306,000

60,964,000

Amortization of deferred financing costs

$ 7,600,000

$ 6,500,000

Senior Notes and Notes Payable and Other Borrowings - Components of Unsecured Revolving Credit Facility (Detail) (USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

Debt Instrument [Line Items]

Notes payable and other borrowings

$ 0

$ 200,000

Unsecured revolving credit facility [Member] |
Six Hundred And Twenty Five Million Revolving Credit Facility [Member]

Debt Instrument [Line Items]

Notes payable and other borrowings

$ 0

$ 200,000

Senior Notes and Notes Payable and Other Borrowings - Components of Seller Financed Loans (Detail) (USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

Debt Disclosure [Abstract]

Seller financed loans

$ 0

$ 13,726

Fair Value Disclosures - Summary of Assets and Liabilities Related to Financial Instruments, Measured at Fair Value on a Recurring Basis (Detail) (USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Senior notes, net

$ 1,471,302

$ 1,168,307

Unsecured revolving credit facility

0

200,000

Seller financed loans

0

13,726

Level 2 [Member] |
Recurring [Member] |
Book Value [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Senior notes, net

1,491,229

1,189,180

Level 2 [Member] |
Recurring [Member] |
Fair Value [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Senior notes, net

1,552,335

1,219,125

Level 2 [Member] |
Recurring [Member] |
Seller financed loan [Member] |
Book Value [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Seller financed loans

0

13,726

Level 2 [Member] |
Recurring [Member] |
Seller financed loan [Member] |
Fair Value [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Seller financed loans

0

13,189

Level 2 [Member] |
Recurring [Member] |
Unsecured revolving credit facility [Member] |
Book Value [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Unsecured revolving credit facility

0

200,000

Level 2 [Member] |
Recurring [Member] |
Unsecured revolving credit facility [Member] |
Fair Value [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Unsecured revolving credit facility

$ 0

$ 177,410

Fair Value Disclosures - Summary of Assets and Liabilities Related to Financial Instruments, Measured at Fair Value on a Recurring Basis (Phantoms) (Detail) (USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Deferred loan cost

$ 3,427

$ 2,101

Senior Notes [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Deferred loan cost

$ 19,900

$ 20,900

Fair Value Disclosures - Summary of Nonfinancial Assets Measured at Fair Value on a Nonrecurring Basis (Detail) (USD $)

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Real estate inventory impairments

$ 854,000

$ 0

$ 1,167,000

Real estate inventories

3,105,553,000

2,910,627,000

Fair Value Measurements Nonrecurring

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Real estate inventory impairments

854,000

0

Real estate inventories

$ 12,950,000

$ 0

Commitments and Contingencies - Additional Information (Detail) (USD $)

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Commitment And Contingencies [Line Items]

Legal reserve

$ 0

$ 225,000

Increase in warrant liability

(9,354,000)

36,826,000

7,451,000

Outstanding warranty insurance receivables

35,817,000

46,875,000

Estimated probable recoveries

38,000,000

36,500,000

Rental expense

6,900,000

6,400,000

6,200,000

Operating leases future commitments

53,700,000

Operating leases guaranteed future payments

12,500,000

Deposits

27,003,000

26,574,000

Land purchase and land option deposits

27,003,000

26,174,000

Aggregate remaining purchase price

381,900,000

55 year ground lease [Member]

Commitment And Contingencies [Line Items]

Operating leases, renewal term

10 years

Number of properties obtained subject to ground leases

2

Number of lease renewal options

3

45 year ground lease [Member]

Commitment And Contingencies [Line Items]

Number of properties obtained subject to ground leases

1

Surety bonds [Member]

Commitment And Contingencies [Line Items]

Outstanding surety bonds

$ 537,400,000

$ 449,600,000

Property Subject to Operating Lease [Member] |
Office Leases [Member]

Commitment And Contingencies [Line Items]

Lease term

9 years

Operating leases, renewal term

5 years

Property Subject to Operating Lease [Member] |
Minimum [Member] |
Equipment Leases [Member]

Commitment And Contingencies [Line Items]

Lease term

3 years

Property Subject to Operating Lease [Member] |
Maximum [Member] |
Equipment Leases [Member]

Commitment And Contingencies [Line Items]

Lease term

4 years

Commitments and Contingencies - Schedule of Warranty Reserves (Detail) (USD $)

In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Movement in Standard Product Warranty Accrual [Roll Forward]

Warranty reserves, beginning of period

$ 83,135

$ 45,948

$ 33,270

Warranty reserves accrued

13,336

12,712

16,557

Adjustments to pre-existing reserves(1)

(9,354)

36,826

7,451

Warranty expenditures

(17,744)

(12,351)

(11,330)

Warranty reserves, end of period

$ 69,373

$ 83,135

$ 45,948

Commitments and Contingencies - Schedule of Future Minimum Lease Payments under Non-Cancellable Operating Lease Agreements (Detail) (USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Office Space Buildings And Equipment

Other Commitments [Line Items]

2018

$ 7,006

2019

6,744

2020

6,769

2021

5,544

2022

3,107

Thereafter

3,044

Future minimum lease payments under non-cancellable operating lease agreements

32,214

Ground Leases

Other Commitments [Line Items]

2018

2,239

2019

2,239

2020

2,239

2021

2,239

2022

2,239

Thereafter

72,753

Future minimum lease payments under non-cancellable operating lease agreements

$ 83,948

Stock-Based Compensation - Additional Information (Detail) (USD $)

12 Months Ended

0 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2017

Restricted Stock Units (RSUs) [Member]

Dec. 31, 2016

Restricted Stock Units (RSUs) [Member]

Dec. 31, 2015

Restricted Stock Units (RSUs) [Member]

Mar. 1, 2016

Restricted Stock Units (RSUs) [Member]

Employees and Officers [Member]

Mar. 1, 2016

Restricted Stock Units (RSUs) [Member]

Employees and Officers [Member]

Feb. 27, 2017

Restricted Stock Units (RSUs) [Member]

Employees and Officers [Member]

Total Shareholder Return [Member]

Mar. 1, 2016

Restricted Stock Units (RSUs) [Member]

Employees and Officers [Member]

Total Shareholder Return [Member]

Feb. 27, 2017

Restricted Stock Units (RSUs) [Member]

Employees and Officers [Member]

Total Shareholder Return [Member]

Feb. 27, 2017

Restricted Stock Units (RSUs) [Member]

Chief Executive Officer [Member]

Feb. 27, 2017

Restricted Stock Units (RSUs) [Member]

President [Member]

Feb. 27, 2017

Restricted Stock Units (RSUs) [Member]

Chief Financial Officer [Member]

May 30, 2017

Restricted Stock Units (RSUs) [Member]

Board of Directors [Member]

May 25, 2017

Restricted Stock Units (RSUs) [Member]

Board of Directors [Member]

Mar. 27, 2017

Restricted Stock Units (RSUs) [Member]

Board of Directors [Member]

Jun. 6, 2016

Restricted Stock Units (RSUs) [Member]

Board of Directors [Member]

May 30, 2017

Restricted Stock Units (RSUs) [Member]

Board of Directors [Member]

Jun. 6, 2016

Restricted Stock Units (RSUs) [Member]

Board of Directors [Member]

Feb. 27, 2017

Restricted Stock Units (RSUs) [Member]

Employees, officers and Directors [Member]

Earnings Per Share [Member]

Mar. 9, 2015

Performance-based RSUs [Member]

Total Shareholder Return [Member]

Mar. 9, 2015

Performance-based RSUs [Member]

Earnings Per Share [Member]

Mar. 9, 2015

Performance-based RSUs [Member]

Stock Price [Member]

Mar. 1, 2016

Performance-based RSUs [Member]

Chief Executive Officer [Member]

Mar. 1, 2016

Performance-based RSUs [Member]

President [Member]

Mar. 1, 2016

Performance-based RSUs [Member]

Chief Financial Officer [Member]

Mar. 1, 2016

Performance-based RSUs [Member]

Employees, officers and Directors [Member]

Dec. 31, 2017

2013 Incentive Plan [Member]

Jul. 16, 2014

WRECO equity incentive plans [Member]

WRECO Transaction [Member]

Feb. 27, 2017

Minimum [Member]

Restricted Stock Units (RSUs) [Member]

Earnings Per Share [Member]

Mar. 1, 2016

Minimum [Member]

Performance-based RSUs [Member]

Employees, officers and Directors [Member]

Feb. 27, 2017

Maximum [Member]

Restricted Stock Units (RSUs) [Member]

Earnings Per Share [Member]

Mar. 1, 2016

Maximum [Member]

Performance-based RSUs [Member]

Employees, officers and Directors [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Common stock (shares)

11,727,833

Shares available for future grant (shares)

6,228,769

Number of registered shares (shares)

4,105,953

Exchange ratio

2.1107

Unrecognized stock based compensation related to all stock-based awards

$ 17,300,000

Weighted average period, expense to recognize

1 year 6 months 25 days

Intrinsic value of stock option awards exercised

4,500,000

324,000

642,000

Intrinsic value of restricted stock units vested

8,800,000

4,600,000

6,800,000

Grant date fair value of restricted stock awards granted or assumed

$ 18,400,000

$ 21,800,000

$ 18,300,000

Restricted stock units, granted (shares)

1,670,936

1,120,677

990,279

257,851

247,933

119,008

55,865

74,466

297,426

285,986

125,834

Restricted stock units, vested (shares)

714,612

53,190

21,276

Restricted stock units, vesting period

3 years

Closing stock price on date of grant (in usd per share)

$ 10.49

$ 12.10

$ 12.53

$ 11.75

$ 12.10

$ 4.76

Vesting rights (percent)

0.00%

100.00%

Allocation amount (percent)

33.33%

0.00%

100.00%

Fair value of awards (in usd per share)

$ 9.80

$ 9.77

$ 6.16

Stock-Based Compensation - Summary of Compensation Expense Recognized Related to all Stock-Based Awards (Detail) (USD $)

In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Total stock-based compensation

$ 15,906

$ 12,612

$ 11,935

Stock-Based Compensation - Summary of Stock Option Awards (Detail) (Employee Stock Option [Member], USD $)

In Thousands, except Share data, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Employee Stock Option [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]

Options outstanding at December 31, 2016 (shares)

2,971,370

Options granted (shares)

0

Options exercised (shares)

(1,066,298)

Options forfeited (shares)

(750,414)

Options outstanding at December 31, 2017 (shares)

1,154,658

2,971,370

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]

Weighted Average Exercise Price, Outstanding, Balance (in usd per share)

$ 13.12

Weighted Average Exercise Price, Granted (in usd per share)

$ 0.00

Weighted Average Exercise Price, Exercised (in usd per share)

$ 11.74

Weighted Average Exercise Price, Forfeited (in usd per share)

$ 14.09

Weighted Average Exercise Price, Outstanding, Balance (in usd per share)

$ 14.16

$ 13.12

Weighted Average Exercise Price, Options exercisable at December 31, 2017 (in usd per share)

$ 14.15

Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]

Options exercisable at December 31, 2017 (shares)

1,039,819

Weighted Average Remaining Contractual Life, Outstanding

4 years 10 months 24 days

4 years 4 months 24 days

Weighted Average Remaining Contractual Life, Options exercisable at December 31, 2017

4 years 9 months 18 days

Aggregate Intrinsic Value, Outstanding, Balance

$ 4,350

$ 1,568

Aggregate Intrinsic Value, Outstanding, Options exercisable at December 31, 2017

$ 3,933

Stock-Based Compensation - Summary of Restricted Stock Units (Detail) (Restricted Stock Units (RSUs) [Member], USD $)

In Thousands, except Share data, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Restricted Stock Units (RSUs) [Member]

Restricted Stock Units

Nonvested RSUs at December 31, 2016 (shares)

3,412,719

Granted (shares)

1,670,936

Vested (shares)

(714,612)

Forfeited (shares)

(61,451)

Nonvested RSUs at December 31, 2017 (shares)

4,307,592

Weighted Average Grant Date Fair Value Per Share

Weighted Average Grant Date Fair Value, Beginning Balance (in usd per share)

$ 9.77

Weighted Average Grant Date Fair Value, Granted (in usd per share)

$ 11.00

Weighted Average Grant Date Fair Value, Vested (in usd per share)

$ 12.34

Weighted Average Grant Date Fair Value, Forfeited (in usd per share)

$ 11.66

Weighted Average Grant Date Fair Value, Ending Balance (in usd per share)

$ 9.80

Aggregate Intrinsic Value

Aggregate Intrinsic Value, Beginning Balance

$ 39,179

Aggregate Intrinsic Value, Granted

Aggregate Intrinsic Value, Ending Balance

$ 77,192

Income Taxes - Provision (Benefit) for Income Tax Attributable to Income (Loss) from Continuing Operations before Income Taxes (Detail) (USD $)

In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Current:

Federal

$ 95,814

$ 90,387

$ 91,343

State

8,961

8,744

6,715

Total current taxes

104,775

99,131

98,058

Deferred:

Federal

37,151

5,749

8,296

State

10,341

1,214

5,725

Total deferred taxes

47,492

6,963

14,021

Total income tax expense

$ 152,267

$ 106,094

$ 112,079

Income Taxes - Additional Information (Detail) (USD $)

3 Months Ended

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Income Tax Contingency [Line Items]

Federal statutory rate (percent)

35.00%

Reduction in deferred tax asset

$ 22,000,000

Valuation allowance related to deferred tax assets

3,478,000

323,000

Impairment of joint venture

13,200,000

0

Unpaid interest amount

0

Tax benefit that would result if uncertain tax positions are reversed

1,400,000

State and Local Jurisdiction

Income Tax Contingency [Line Items]

Net operating loss carryforward

385,900,000

Valuation allowance related to deferred tax assets

$ 3,500,000

$ 323,000

State and Local Jurisdiction |
Minimum [Member]

Income Tax Contingency [Line Items]

Net operating loss carryforward, expire date

Dec. 31, 2028

State and Local Jurisdiction |
Maximum [Member]

Income Tax Contingency [Line Items]

Net operating loss carryforward, expire date

Dec. 31, 2036

Income Taxes - Effective Tax Rate Differs from Federal Statutory Rate (Detail) (USD $)

In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Taxes at the U.S. federal statutory rate

$ 118,936

$ 105,779

$ 111,846

State income taxes, net of federal tax impact

10,712

9,539

9,627

Domestic production activities deduction

(7,108)

(5,037)

(5,566)

Non-deductible transaction costs

541

305

0

Change in valuation allowance

3,256

(4,038)

(1,872)

Tax Cuts and Jobs Act

21,961

0

Other, net

3,969

(454)

(1,956)

Total income tax expense

$ 152,267

$ 106,094

$ 112,079

Effective income tax rate (percent)

44.80%

35.10%

Income Taxes - Components of Deferred Income Tax Assets (Detail) (USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

Deferred tax assets:

Impairment and other valuation reserves

$ 40,438

$ 73,890

Incentive compensation

5,851

8,322

Indirect costs capitalized

19,574

25,377

Net operating loss carryforwards (state)

25,172

24,583

State taxes

2,181

2,985

Other costs and expenses

11,354

15,214

Gross deferred tax assets

104,570

150,371

Valuation allowance

(3,478)

(323)

Deferred tax assets, net of valuation allowance

101,092

150,048

Deferred tax liabilities:

Interest capitalized

(7,144)

(814)

Basis difference in inventory

(9,207)

(14,186)

Fixed assets

(1,710)

(1,101)

Intangibles

(5,360)

(8,456)

Deferred financing costs

(898)

(924)

Other

(360)

(1,344)

Deferred tax liabilities

(24,679)

(26,825)

Net deferred tax assets

$ 76,413

$ 123,223

Income Taxes - Schedule of Gross Unrecognized Tax Benefits (Detail) (USD $)

In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Reconciliation of Unrecognized Tax Benefits [Roll Forward]

Balance at beginning of year

$ 0

$ 272

Increase (decrease) related to prior year tax positions

1,521

Increase (decrease) related to prior year tax positions

(272)

Balance at end of year

$ 1,521

$ 0

Related Party Transactions - Additional Information (Detail) (USD $)

12 Months Ended

1 Months Ended

6 Months Ended

1 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Oct. 31, 2016

CALIFORNIA

Starwood Capital Group [Member]

lot

May 31, 2016

CALIFORNIA

Starwood Capital Group [Member]

lot

Dec. 31, 2017

CALIFORNIA

Starwood Capital Group [Member]

Oct. 31, 2015

CALIFORNIA

BlackRock, Inc [Member]

lot

Dec. 31, 2016

CALIFORNIA

BlackRock, Inc [Member]

lot

Oct. 31, 2016

COLORADO

Starwood Capital Group [Member]

lot

Aug. 31, 2016

COLORADO

Starwood Capital Group [Member]

lot

Jan. 31, 2015

COLORADO

Starwood Capital Group [Member]

lot

Related Party Transaction [Line Items]

Income tax liability to Weyerhaeuser

$ 7,706,000

$ 8,589,000

Number of lots acquired

27

52

161

93

126

257

46

Payment for acquiring lots

$ 0

$ 9,600,000

$ 18,400,000

$ 60,000,000

$ 25,500,000

$ 4,200,000

$ 8,600,000

$ 2,800,000

Percentage of common stock held (percent)

5.00%

Supplemental Disclosure to Consolidated Statement of Cash Flow - Supplemental Disclosure to Consolidated Statement of Cash Flows (Detail) (USD $)

In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Supplemental disclosure of cash flow information:

Interest, net of amounts capitalized of $77,193, $53,028 and $60,964

$ 0

Income taxes

74,388

117,215

69,917

Supplemental disclosures of noncash activities:

Accrued liabilities related to the purchase of operating properties and equipment

0

1,828

3,976

Amortization of senior note discount capitalized to real estate inventory

2,048

1,815

1,552

Amortization of deferred loan costs capitalized to real estate inventory

5,578

4,642

3,820

Effect of net consolidation and de-consolidation of variable interest entities:

(Decrease) increase in consolidated real estate inventory not owned

(17,485)

(316)

5,297

Increase in accrued expenses and other liabilities

0

300

Decrease (increase) in noncontrolling interests

$ 17,485

$ 316

$ (5,597)

Supplemental Disclosure to Consolidated Statement of Cash Flow - Supplemental Disclosure to Consolidated Statement of Cash Flows (Phantoms) (Detail) (USD $)

In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Supplemental Cash Flow Elements [Abstract]

Interest capitalized

$ 77,193

$ 53,028

$ 60,964

Supplemental Guarantor Information - Condensed Consolidating Balance Sheet (Detail) (USD $)

In Thousands, unless otherwise specified

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Assets

Cash and cash equivalents

$ 282,914

$ 208,657

$ 214,485

$ 170,629

Receivables

125,600

82,500

Intercompany receivables

0

Real estate inventories

3,105,553

2,910,627

Investments in unconsolidated entities

5,870

17,546

Goodwill and other intangible assets, net

160,961

161,495

Investments in subsidiaries

0

Deferred tax assets, net

76,413

123,223

Other assets

48,070

60,592

Total assets

3,805,381

3,564,640

Liabilities

Accounts payable

72,870

70,252

Intercompany payables

0

Accrued expenses and other liabilities

330,882

263,845

Unsecured revolving credit facility

0

200,000

Seller financed loans

0

13,726

Senior notes, net

1,471,302

1,168,307

Total liabilities

1,875,054

1,716,130

Equity

Total stockholders’ equity

1,929,722

1,829,447

Noncontrolling interests

605

19,063

Total equity

1,930,327

1,848,510

1,686,463

1,472,476

Total liabilities and equity

3,805,381

3,564,640

Reporting Entity [Member] |
Guarantor Subsidiaries [Member]

Assets

Cash and cash equivalents

106,230

67,089

66,714

64,741

Receivables

69,579

55,808

Intercompany receivables

0

Real estate inventories

2,249,826

2,042,539

Investments in unconsolidated entities

5,870

17,546

Goodwill and other intangible assets, net

4,357

4,891

Investments in subsidiaries

0

Deferred tax assets, net

65,521

107,579

Other assets

44,605

49,191

Total assets

2,545,988

2,344,643

Liabilities

Accounts payable

63,506

49,615

Intercompany payables

794,550

775,321

Accrued expenses and other liabilities

238,637

215,349

Unsecured revolving credit facility

0

Seller financed loans

0

Senior notes, net

0

Total liabilities

1,096,693

1,040,285

Equity

Total stockholders’ equity

1,448,690

1,285,295

Noncontrolling interests

605

19,063

Total equity

1,449,295

1,304,358

Total liabilities and equity

2,545,988

2,344,643

Reporting Entity [Member] |
Issuer [Member]

Assets

Cash and cash equivalents

176,684

141,568

147,771

105,888

Receivables

56,021

26,692

Intercompany receivables

794,550

775,321

Real estate inventories

855,727

868,088

Investments in unconsolidated entities

0

Goodwill and other intangible assets, net

156,604

Investments in subsidiaries

1,448,690

1,285,295

Deferred tax assets, net

10,892

15,644

Other assets

3,465

11,401

Total assets

3,502,633

3,280,613

Liabilities

Accounts payable

9,364

20,637

Intercompany payables

0

Accrued expenses and other liabilities

92,245

48,496

Unsecured revolving credit facility

200,000

Seller financed loans

13,726

Senior notes, net

1,471,302

1,168,307

Total liabilities

1,572,911

1,451,166

Equity

Total stockholders’ equity

1,929,722

1,829,447

Noncontrolling interests

0

Total equity

1,929,722

1,829,447

Total liabilities and equity

3,502,633

3,280,613

Consolidating Adjustments [Member]

Assets

Cash and cash equivalents

0

Receivables

0

Intercompany receivables

(794,550)

(775,321)

Real estate inventories

0

Investments in unconsolidated entities

0

Goodwill and other intangible assets, net

0

Investments in subsidiaries

(1,448,690)

(1,285,295)

Deferred tax assets, net

0

Other assets

0

Total assets

(2,243,240)

(2,060,616)

Liabilities

Accounts payable

0

Intercompany payables

(794,550)

(775,321)

Accrued expenses and other liabilities

0

Unsecured revolving credit facility

0

Seller financed loans

0

Senior notes, net

0

Total liabilities

(794,550)

(775,321)

Equity

Total stockholders’ equity

(1,448,690)

(1,285,295)

Noncontrolling interests

0

Total equity

(1,448,690)

(1,285,295)

Total liabilities and equity

$ (2,243,240)

$ (2,060,616)

Supplemental Guarantor Information - Condensed Consolidating Statement of Operations (Detail) (USD $)

In Thousands, unless otherwise specified

3 Months Ended

12 Months Ended

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2016

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Homebuilding:

Home sales revenue

$ 2,732,299

$ 2,329,336

$ 2,291,264

Land and lot sales revenue

74,269

72,272

101,284

Other operations revenue

2,333

2,314

7,601

Total revenues

1,128,520

717,735

570,626

393,391

773,753

582,029

625,222

424,138

2,808,901

2,403,922

2,400,149

Cost of home sales

2,173,251

1,836,327

1,808,776

Cost of land and lot sales

14,888

17,367

35,089

Other operations expense

2,298

2,247

4,360

Sales and marketing

137,066

127,903

116,217

General and administrative

137,764

124,119

120,825

Homebuilding income from operations

343,634

295,959

314,882

Equity in loss of unconsolidated entities

(11,433)

179

1,460

Other income, net

151

312

858

Homebuilding income before income taxes

332,352

296,450

317,200

Financial Services:

Revenues

1,371

1,220

1,010

Expenses

331

253

181

Equity in income of unconsolidated entities

6,426

4,810

1,231

Financial services income before income taxes

7,466

5,777

2,060

Income before income taxes

339,818

302,227

319,260

Provision for income taxes

(152,267)

(106,094)

(112,079)

Equity of net income (loss) of subsidiaries

0

Net income

74,242

72,289

32,803

8,217

58,085

35,145

74,193

28,710

187,551

196,133

207,181

Net income attributable to noncontrolling interests

(222)

(25)

(89)

(24)

(224)

(311)

(267)

(160)

(360)

(962)

(1,720)

Net income available to common stockholders

74,020

72,264

32,714

8,193

57,861

34,834

73,926

28,550

187,191

195,171

205,461

Reporting Entity [Member] |
Guarantor Subsidiaries [Member]

Homebuilding:

Home sales revenue

1,805,052

1,606,150

1,517,259

Land and lot sales revenue

74,269

72,272

101,284

Other operations revenue

2,333

2,314

7,601

Total revenues

1,881,654

1,680,736

1,626,144

Cost of home sales

1,392,519

1,229,011

1,183,985

Cost of land and lot sales

14,888

17,367

35,089

Other operations expense

2,298

2,247

4,360

Sales and marketing

102,780

98,811

89,425

General and administrative

70,758

64,792

65,383

Homebuilding income from operations

298,411

268,508

247,902

Equity in loss of unconsolidated entities

(11,433)

179

1,460

Other income, net

113

163

985

Homebuilding income before income taxes

287,091

268,850

250,347

Financial Services:

Revenues

1,371

1,220

1,010

Expenses

331

253

181

Equity in income of unconsolidated entities

6,426

4,810

1,231

Financial services income before income taxes

7,466

5,777

2,060

Income before income taxes

294,557

274,627

252,407

Provision for income taxes

(129,766)

(94,772)

(92,078)

Equity of net income (loss) of subsidiaries

0

Net income

164,791

179,855

160,329

Net income attributable to noncontrolling interests

(360)

(962)

(1,720)

Net income available to common stockholders

164,431

178,893

158,609

Reporting Entity [Member] |
Issuer [Member]

Homebuilding:

Home sales revenue

927,247

723,186

774,005

Land and lot sales revenue

0

Other operations revenue

0

Total revenues

927,247

723,186

774,005

Cost of home sales

780,732

607,316

624,791

Cost of land and lot sales

0

Other operations expense

0

Sales and marketing

34,286

29,092

26,792

General and administrative

67,006

59,327

55,442

Homebuilding income from operations

45,223

27,451

66,980

Equity in loss of unconsolidated entities

0

Other income, net

38

149

(127)

Homebuilding income before income taxes

45,261

27,600

66,853

Financial Services:

Revenues

0

Expenses

0

Equity in income of unconsolidated entities

0

Financial services income before income taxes

0

Income before income taxes

45,261

27,600

66,853

Provision for income taxes

(22,501)

(11,322)

(20,001)

Equity of net income (loss) of subsidiaries

164,431

178,893

158,609

Net income

187,191

195,171

205,461

Net income attributable to noncontrolling interests

0

Net income available to common stockholders

187,191

195,171

205,461

Consolidating Adjustments [Member]

Homebuilding:

Home sales revenue

0

Land and lot sales revenue

0

Other operations revenue

0

Total revenues

0

Cost of home sales

0

Cost of land and lot sales

0

Other operations expense

0

Sales and marketing

0

General and administrative

0

Homebuilding income from operations

0

Equity in loss of unconsolidated entities

0

Other income, net

0

Homebuilding income before income taxes

0

Financial Services:

Revenues

0

Expenses

0

Equity in income of unconsolidated entities

0

Financial services income before income taxes

0

Income before income taxes

0

Provision for income taxes

0

Equity of net income (loss) of subsidiaries

(164,431)

(178,893)

(158,609)

Net income

(164,431)

(178,893)

(158,609)

Net income attributable to noncontrolling interests

0

Net income available to common stockholders

$ (164,431)

$ (178,893)

$ (158,609)

Supplemental Guarantor Information - Condensed Consolidating Statement of Cash Flows (Detail) (USD $)

In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Cash flows from operating activities

Net cash provided by operating activities

$ 101,674

$ (158,310)

$ 31,005

Cash flows from investing activities:

Purchases of property and equipment

(2,605)

(3,985)

(809)

Proceeds from sale of property and equipment

6

9

0

Investments in unconsolidated entities

(980)

(32)

(1,468)

Distributions from unconsolidated entities

0

1,415

Intercompany

0

Net cash used in investing activities

(3,579)

(4,008)

(862)

Cash flows from financing activities:

Borrowings from debt

500,000

541,069

140,000

Repayment of debt

(413,726)

(330,858)

(112,851)

Debt issuance costs

(5,957)

(5,062)

(2,688)

Repayment of debt payable to Weyerhaeuser

0

(2,442)

(6,769)

Contributions from noncontrolling interests

0

1,955

5,990

Distributions to noncontrolling interests

(1,333)

(5,318)

(9,823)

Proceeds from issuance of common stock under share-based awards

12,291

587

1,616

Excess tax benefits of share-based awards

0

428

Minimum tax withholding paid on behalf of employees for share-based awards

(2,896)

(1,359)

(2,190)

Share repurchases

(112,217)

(42,082)

Intercompany

0

Net cash (used in) provided by financing activities

(23,838)

156,490

13,713

Net increase (decrease) in cash and cash equivalents

74,257

(5,828)

43,856

Cash and cash equivalents - beginning of year

208,657

214,485

170,629

Cash and cash equivalents - end of year

282,914

208,657

214,485

Reporting Entity [Member] |
Guarantor Subsidiaries [Member]

Cash flows from operating activities

Net cash provided by operating activities

28,466

21,087

29,291

Cash flows from investing activities:

Purchases of property and equipment

(1,181)

(2,382)

254

Proceeds from sale of property and equipment

6

9

Investments in unconsolidated entities

(980)

(32)

(1,468)

Distributions from unconsolidated entities

1,415

Intercompany

0

Net cash used in investing activities

(2,155)

(2,405)

201

Cash flows from financing activities:

Borrowings from debt

0

Repayment of debt

0

(400)

(200)

Debt issuance costs

0

Repayment of debt payable to Weyerhaeuser

(2,442)

(6,769)

Contributions from noncontrolling interests

1,955

5,990

Distributions to noncontrolling interests

(1,333)

(5,318)

(9,823)

Proceeds from issuance of common stock under share-based awards

0

Excess tax benefits of share-based awards

0

Minimum tax withholding paid on behalf of employees for share-based awards

0

Share repurchases

0

Intercompany

14,163

(12,102)

(16,717)

Net cash (used in) provided by financing activities

12,830

(18,307)

(27,519)

Net increase (decrease) in cash and cash equivalents

39,141

375

1,973

Cash and cash equivalents - beginning of year

67,089

66,714

64,741

Cash and cash equivalents - end of year

106,230

67,089

66,714

Reporting Entity [Member] |
Issuer [Member]

Cash flows from operating activities

Net cash provided by operating activities

73,208

(179,397)

1,714

Cash flows from investing activities:

Purchases of property and equipment

(1,424)

(1,603)

(1,063)

Proceeds from sale of property and equipment

0

Investments in unconsolidated entities

0

Distributions from unconsolidated entities

0

Intercompany

(14,163)

12,102

16,717

Net cash used in investing activities

(15,587)

10,499

15,654

Cash flows from financing activities:

Borrowings from debt

500,000

541,069

140,000

Repayment of debt

(413,726)

(330,458)

(112,651)

Debt issuance costs

(5,957)

(5,062)

(2,688)

Repayment of debt payable to Weyerhaeuser

0

Contributions from noncontrolling interests

0

Distributions to noncontrolling interests

0

Proceeds from issuance of common stock under share-based awards

12,291

587

1,616

Excess tax benefits of share-based awards

428

Minimum tax withholding paid on behalf of employees for share-based awards

(2,896)

(1,359)

(2,190)

Share repurchases

(112,217)

(42,082)

Intercompany

0

Net cash (used in) provided by financing activities

(22,505)

162,695

24,515

Net increase (decrease) in cash and cash equivalents

35,116

(6,203)

41,883

Cash and cash equivalents - beginning of year

141,568

147,771

105,888

Cash and cash equivalents - end of year

176,684

141,568

147,771

Consolidating Adjustments [Member]

Cash flows from operating activities

Net cash provided by operating activities

0

Cash flows from investing activities:

Purchases of property and equipment

0

Proceeds from sale of property and equipment

0

Investments in unconsolidated entities

0

Distributions from unconsolidated entities

0

Intercompany

14,163

(12,102)

(16,717)

Net cash used in investing activities

14,163

(12,102)

(16,717)

Cash flows from financing activities:

Borrowings from debt

0

Repayment of debt

0

Debt issuance costs

0

Repayment of debt payable to Weyerhaeuser

0

Contributions from noncontrolling interests

0

Distributions to noncontrolling interests

0

Proceeds from issuance of common stock under share-based awards

0

Excess tax benefits of share-based awards

0

Minimum tax withholding paid on behalf of employees for share-based awards

0

Share repurchases

0

Intercompany

(14,163)

12,102

16,717

Net cash (used in) provided by financing activities

(14,163)

12,102

16,717

Net increase (decrease) in cash and cash equivalents

0

Cash and cash equivalents - beginning of year

0

Cash and cash equivalents - end of year

$ 0

Results of Quarterly Operations - Schedule of Quarterly Results of Operations (Detail) (USD $)

In Thousands, except Per Share data, unless otherwise specified

3 Months Ended

12 Months Ended

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2016

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Quarterly Financial Information Disclosure [Abstract]

Total revenues

$ 1,128,520

$ 717,735

$ 570,626

$ 393,391

$ 773,753

$ 582,029

$ 625,222

$ 424,138

$ 2,808,901

$ 2,403,922

$ 2,400,149

Cost of homes sales and other

880,849

534,494

455,476

319,618

617,684

464,632

447,781

325,844

Gross margin

247,671

183,241

115,150

73,773

156,069

117,397

177,441

98,294

Net income

74,242

72,289

32,803

8,217

58,085

35,145

74,193

28,710

187,551

196,133

207,181

Net (income) loss attributable to noncontrolling interests

(222)

(25)

(89)

(24)

(224)

(311)

(267)

(160)

(360)

(962)

(1,720)

Net income available to common stockholders

$ 74,020

$ 72,264

$ 32,714

$ 8,193

$ 57,861

$ 34,834

$ 73,926

$ 28,550

$ 187,191

$ 195,171

$ 205,461

Earnings per share

Basic (in dollars per share)

$ 0.49

$ 0.48

$ 0.21

$ 0.05

$ 0.36

$ 0.22

$ 0.46

$ 0.18

$ 1.21

$ 1.27

Diluted (in dollars per share)

$ 0.49

$ 0.48

$ 0.21

$ 0.05

$ 0.36

$ 0.22

$ 0.46

$ 0.18

$ 1.21

$ 1.27