TRI POINTE GROUP, INC., 10-K filed on 2/24/2017
Annual Report
Document and Entity Information (USD $)
12 Months Ended
Dec. 31, 2016
Feb. 14, 2017
Jun. 30, 2016
Document And Entity Information [Abstract]
 
 
 
Document Type
10-K 
 
 
Amendment Flag
false 
 
 
Document Period End Date
Dec. 31, 2016 
 
 
Document Fiscal Year Focus
2016 
 
 
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
 
158,626,229 
 
Entity Public Float
 
 
$ 1,719,493,500 
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Assets
 
 
Cash and cash equivalents
$ 208,657 
$ 214,485 
Receivables
82,500 
43,710 
Real estate inventories
2,910,627 
2,519,273 
Investments in unconsolidated entities
17,546 
18,999 
Goodwill and other intangible assets, net
161,495 
162,029 
Deferred tax assets, net
123,223 
130,657 
Other assets
60,592 
48,918 
Total assets
3,564,640 
3,138,071 
Liabilities
 
 
Accounts payable
70,252 
64,840 
Accrued expenses and other liabilities
263,845 
216,263 
Unsecured revolving credit facility
200,000 
299,392 
Seller financed loans
13,726 
2,434 
Senior notes, net
1,168,307 
868,679 
Total liabilities
1,716,130 
1,451,608 
Commitments and contingencies
   
   
Stockholders’ Equity:
 
 
Preferred stock, $0.01 par value, 50,000,000 shares authorized; no shares issued and outstanding as of December 31, 2016 and 2015, respectively
0 
0 
Common stock, $0.01 par value, 500,000,000 shares authorized; 158,626,229 and 161,813,750 shares issued and outstanding at December 31, 2016 and 2015, respectively
1,586 
1,618 
Additional paid-in capital
880,822 
911,197 
Retained earnings
947,039 
751,868 
Total stockholders’ equity
1,829,447 
1,664,683 
Noncontrolling interests
19,063 
21,780 
Total equity
1,848,510 
1,686,463 
Total liabilities and equity
$ 3,564,640 
$ 3,138,071 
Consolidated Balance Sheets (Parenthetical) (USD $)
Dec. 31, 2016
Dec. 31, 2015
Statement of Financial Position [Abstract]
 
 
Preferred stock, par value (in dollars per share)
$ 0.01 
$ 0.01 
Preferred stock authorized (shares)
50,000,000 
50,000,000 
Preferred stock issued (shares)
0 
0 
Preferred stock outstanding (shares)
0 
0 
Common stock, par value (in dollars per share)
$ 0.01 
$ 0.01 
Common stock authorized (shares)
500,000,000 
500,000,000 
Common stock issued (shares)
158,626,229 
161,813,750 
Common stock outstanding (shares)
158,626,229 
161,813,750 
Consolidated Statements of Operations (USD $)
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Homebuilding:
 
 
 
 
 
 
 
 
 
 
 
Home sales revenue
 
 
 
 
 
 
 
 
$ 2,329,336,000 
$ 2,291,264,000 
$ 1,646,274,000 
Land and lot sales revenue
 
 
 
 
 
 
 
 
72,272,000 
101,284,000 
47,660,000 
Other operations revenue
 
 
 
 
 
 
 
 
2,314,000 
7,601,000 
9,682,000 
Total revenues
773,753,000 
582,029,000 
625,222,000 
424,138,000 
880,243,000 
648,141,000 
495,517,000 
377,258,000 
2,403,922,000 
2,400,149,000 
1,703,616,000 
Cost of home sales
 
 
 
 
 
 
 
 
1,836,327,000 
1,808,776,000 
1,318,617,000 
Cost of land and lot sales
 
 
 
 
 
 
 
 
17,367,000 
35,089,000 
37,906,000 
Other operations expense
 
 
 
 
 
 
 
 
2,247,000 
4,360,000 
3,346,000 
Sales and marketing
 
 
 
 
 
 
 
 
127,903,000 
116,217,000 
103,600,000 
General and administrative
 
 
 
 
 
 
 
 
123,470,000 
117,496,000 
82,358,000 
Restructuring charges
 
 
 
 
 
 
 
 
649,000 
3,329,000 
10,543,000 
Homebuilding income from operations
 
 
 
 
 
 
 
 
295,959,000 
314,882,000 
147,246,000 
Equity in income (loss) of unconsolidated entities
 
 
 
 
 
 
 
 
179,000 
1,460,000 
(278,000)
Transaction expenses
 
 
 
 
 
 
 
 
0 
0 
(17,960,000)
Other income (loss), net
 
 
 
 
 
 
 
 
312,000 
858,000 
(1,019,000)
Homebuilding income before income taxes
 
 
 
 
 
 
 
 
296,450,000 
317,200,000 
127,989,000 
Financial Services:
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
1,220,000 
1,010,000 
0 
Expenses
 
 
 
 
 
 
 
 
253,000 
181,000 
15,000 
Equity in income (loss) of unconsolidated entities
 
 
 
 
 
 
 
 
4,810,000 
1,231,000 
(10,000)
Financial services income (loss) before income taxes
 
 
 
 
 
 
 
 
5,777,000 
2,060,000 
(25,000)
Income before income taxes
 
 
 
 
 
 
 
 
302,227,000 
319,260,000 
127,964,000 
Provision for income taxes
 
 
 
 
 
 
 
 
(106,094,000)
(112,079,000)
(43,767,000)
Net income
58,085,000 
35,145,000 
74,193,000 
28,710,000 
85,353,000 
49,769,000 
56,762,000 
15,297,000 
196,133,000 
207,181,000 
84,197,000 
Net income attributable to noncontrolling interests
(224,000)
(311,000)
(267,000)
(160,000)
(281,000)
393,000 
(1,832,000)
0 
(962,000)
(1,720,000)
0 
Net income available to common stockholders
$ 57,861,000 
$ 34,834,000 
$ 73,926,000 
$ 28,550,000 
$ 85,072,000 
$ 50,162,000 
$ 54,930,000 
$ 15,297,000 
$ 195,171,000 
$ 205,461,000 
$ 84,197,000 
Earnings per share
 
 
 
 
 
 
 
 
 
 
 
Basic (in dollars per share)
$ 0.36 
$ 0.22 
$ 0.46 
$ 0.18 
$ 0.53 
$ 0.31 
$ 0.34 
$ 0.09 
$ 1.21 
$ 1.27 
$ 0.58 
Diluted (in dollars per share)
$ 0.36 
$ 0.22 
$ 0.46 
$ 0.18 
$ 0.52 
$ 0.31 
$ 0.34 
$ 0.09 
$ 1.21 
$ 1.27 
$ 0.58 
Weighted average shares outstanding
 
 
 
 
 
 
 
 
 
 
 
Basic (shares)
 
 
 
 
 
 
 
 
160,859,782 
161,692,152 
145,044,351 
Diluted (shares)
 
 
 
 
 
 
 
 
161,381,499 
162,319,758 
145,531,289 
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, 2013
$ 825,517 
$ 1,297 
$ 333,589 
$ 462,210 
$ 797,096 
$ 28,421 
Beginning balance (shares) at Dec. 31, 2013
 
129,700,000 
 
 
 
 
Net income
84,197 
 
 
84,197 
84,197 
 
Capital contribution (return of capital) to Weyerhaeuser
63,355 
 
63,355 
 
63,355 
 
Common shares issued in connection with the Merger
498,973 
317 
498,656 
 
498,973 
 
Common shares issued in connection with the Merger (shares)
 
31,632,533 
 
 
 
 
Shares issued under share-based awards
176 
 
176 
 
176 
 
Shares issued under share-based awards (shares)
 
22,957 
 
 
 
 
Excess tax benefit (deficit) of share-based awards, net
1,757 
 
1,757 
 
1,757 
 
Stock-based compensation expense
8,626 
 
8,626 
 
8,626 
 
Distributions to noncontrolling interests, net
(17,248)
 
 
 
 
(17,248)
Net effect of consolidations, de-consolidations and other transactions
7,123 
 
 
 
 
7,123 
Ending balance at Dec. 31, 2014
1,472,476 
1,614 
906,159 
546,407 
1,454,180 
18,296 
Ending balance (shares) at Dec. 31, 2014
 
161,355,490 
 
 
 
 
Net income
207,181 
 
 
205,461 
205,461 
1,720 
Capital contribution (return of capital) to Weyerhaeuser
(6,747)
 
(6,747)
 
(6,747)
 
Shares issued under share-based awards
1,616 
4 
1,612 
 
1,616 
 
Shares issued under share-based awards (shares)
 
458,260 
 
 
 
 
Excess tax benefit (deficit) of share-based awards, net
428 
 
428 
 
428 
 
Minimum tax withholding paid on behalf of employees for restricted stock units
(2,190)
 
(2,190)
 
(2,190)
 
Stock-based compensation expense
11,935 
 
11,935 
 
11,935 
 
Distributions to noncontrolling interests, net
(3,833)
 
 
 
 
(3,833)
Net effect of consolidations, de-consolidations and other transactions
5,597 
 
 
 
 
5,597 
Ending balance at Dec. 31, 2015
1,686,463 
1,618 
911,197 
751,868 
1,664,683 
21,780 
Ending balance (shares) at Dec. 31, 2015
161,813,750 
161,813,750 
 
 
 
 
Net income
196,133 
 
 
195,171 
195,171 
962 
Shares issued under share-based awards
587 
4 
583 
 
587 
 
Shares issued under share-based awards (shares)
 
373,332 
 
 
 
 
Excess tax benefit (deficit) of share-based awards, net
(165)
 
(165)
 
(165)
 
Minimum tax withholding paid on behalf of employees for restricted stock units
(1,359)
 
(1,359)
 
(1,359)
 
Stock-based compensation expense
12,612 
 
12,612 
 
12,612 
 
Share repurchases
(42,082)
(36)
(42,046)
 
(42,082)
 
Stock repurchases (shares)
 
(3,560,853)
 
 
 
 
Distributions to noncontrolling interests, net
(3,363)
 
 
 
 
(3,363)
Net effect of consolidations, de-consolidations and other transactions
(316)
 
 
 
 
(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 
158,626,229 
 
 
 
 
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Cash flows from operating activities
 
 
 
Net income
$ 196,133 
$ 207,181 
$ 84,197 
Adjustments to reconcile net income to net cash used in operating activities:
 
 
 
Depreciation and amortization
3,087 
8,274 
11,423 
Equity in (income) loss of unconsolidated entities, net
(4,989)
(2,691)
288 
Deferred income taxes, net
7,434 
27,164 
5,716 
Amortization of stock-based compensation
12,612 
11,935 
8,626 
Charges for impairments and lot option abandonments
1,470 
1,930 
2,515 
Excess tax deficit of share-based awards
(165)
0 
0 
Bridge commitment fee
0 
0 
10,322 
Changes in assets and liabilities:
 
 
 
Real estate inventories
(388,145)
(235,030)
(276,315)
Receivables
576 
(23,592)
40,933 
Other assets
(8,501)
35,360 
(6,680)
Accounts payable
5,412 
(4,020)
5,571 
Accrued expenses and other liabilities
10,490 
4,494 
(46)
Returns on investments in unconsolidated entities, net
6,276 
0 
80 
Net cash (used in) provided by operating activities
(158,310)
31,005 
(113,370)
Cash flows from investing activities:
 
 
 
Purchases of property and equipment
(3,985)
(809)
(7,850)
Cash acquired in the Merger
0 
0 
53,800 
Proceeds from sale of property and equipment
9 
0 
23 
Investments in unconsolidated entities
(32)
(1,468)
(1,311)
Distributions from unconsolidated entities
0 
1,415 
0 
Net cash (used in) provided by investing activities
(4,008)
(862)
44,662 
Cash flows from financing activities:
 
 
 
Borrowings from debt
541,069 
140,000 
987,298 
Repayment of debt
(330,858)
(112,851)
(53,051)
Debt issuance costs
(5,062)
(2,688)
(23,000)
Bridge commitment fee
0 
0 
(10,322)
Repayment of debt payable to Weyerhaeuser
0 
0 
(623,589)
Decrease in book overdrafts
0 
0 
(22,491)
Distributions to Weyerhaeuser
0 
0 
(8,606)
Net (repayments) proceeds of debt held by variable interest entities
(2,442)
(6,769)
3,903 
Contributions from noncontrolling interests
1,955 
5,990 
1,895 
Distributions to noncontrolling interests
(5,318)
(9,823)
(19,143)
Proceeds from issuance of common stock under share-based awards
587 
1,616 
176 
Excess tax benefits of share-based awards
0 
428 
1,757 
Minimum tax withholding paid on behalf of employees for share-based awards
(1,359)
(2,190)
0 
Share repurchases
(42,082)
0 
0 
Net cash provided by financing activities
156,490 
13,713 
234,827 
Net (decrease) increase in cash and cash equivalents
(5,828)
43,856 
166,119 
Cash and cash equivalents - beginning of year
214,485 
170,629 
4,510 
Cash and cash equivalents - end of year
$ 208,657 
$ 214,485 
$ 170,629 
Organization and Summary of Significant Accounting Policies
Organization and Summary of Significant Accounting Policies
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’ existing 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, 2016 and 2015 represent the outside owners’ interests in the Company’s consolidated entities and the net equity of the VIE owners.  All significant intercompany accounts have been eliminated upon consolidation.
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)
Reverse Acquisition
On July 7, 2014 (the “Closing Date”), TRI Pointe Homes consummated the previously announced merger (the “Merger”) of our wholly owned subsidiary, Topaz Acquisition, Inc. (“Merger Sub”), with and into Weyerhaeuser Real Estate Company (“WRECO”), with WRECO surviving the Merger and becoming our wholly owned subsidiary, as contemplated by the Transaction Agreement, dated as of November 3, 2013 (the “Transaction Agreement”), by and among the Company, Weyerhaeuser Company (“Weyerhaeuser”), WRECO and Merger Sub. The Merger is accounted for in accordance with ASC Topic 805, Business Combinations (“ASC 805”). For accounting purposes, the Merger was treated as a “reverse acquisition” and WRECO was considered the accounting acquirer. Accordingly, WRECO is reflected as the predecessor and acquirer and therefore the accompanying consolidated financial statements reflect the historical consolidated financial statements of WRECO, and do not include the historical financial statements of TRI Pointe, for all periods presented prior to the Closing Date. Subsequent to the Closing Date, the consolidated financial statements reflect the results of the combined company.
See Note 2, Merger with Weyerhaeuser Real Estate Company, for further information on the Merger. In the Merger, each issued and outstanding WRECO common share was converted into 1.297 shares of TRI Pointe common stock. The historical issued and outstanding WRECO common shares (100,000,000 common shares for all periods presented prior to the Merger) have been recast (as 129,700,000 common shares of the Company for all periods prior to the Merger) in all periods presented to reflect this conversion.
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 impairments and land and lot option abandonments, included in cost of home sales and cost of land and lot sales on the consolidated statements of operations in this annual report on Form 10-K. For a more detailed presentation of our real estate inventory impairments and land and lot option abandonments, please see Note 7, Real Estate Inventories.
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.
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 an initial maturity date of less than three months. 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, 2016 we had no real estate inventory impairment charges. For the years ended December 31, 2015 and 2014 we recorded impairment charges of $1.2 million and $931,000, 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 income (loss) of unconsolidated entities in the accompanying consolidated statement of operations. We evaluate our investments in unconsolidated entities for impairment when events and circumstances indicate that the carrying value of the investment may not be recoverable.
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 are incurred related to the Merger in addition to general cost reduction initiatives.   These charges are comprised 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.
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, 2016. For further details on goodwill, see Note 2, Merger with Weyerhaeuser Real Estate Company.
For our TRI Pointe Homes reporting unit, we performed a quantitative 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 2016 annual impairment assessment, we determined that no goodwill impairment was indicated. As of December 31, 2016, 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, 2016, 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 2, Merger with Weyerhaeuser Real Estate Company.
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, 2016, 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 10, 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 (“ASU 2014-09”). The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: identify the contract(s) with a customer; identify the performance obligations in the contract; determine the transaction price; allocate the transaction price to the performance obligations in the contract; and recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 supersedes the revenue-recognition requirements in ASC Topic 605, Revenue Recognition, most industry-specific guidance throughout the industry topics of the accounting standards codification, and some cost guidance related to construction-type and production-type contracts. On July 9, 2015, the FASB voted to defer the effective date of ASU No. 2014-09 by one year and it is now effective for public entities for the annual periods ending after December 15, 2017, and for annual and interim periods thereafter.  Companies may use either a full retrospective or a modified retrospective approach to adopt ASU 2014-09, and we expect to adopt the new standard under the modified retrospective approach. We are still evaluating the accounting for marketing costs, there is a possibility that the adoption of ASU 2014-09 will impact the timing of recognition and classification in our consolidated financial statements of certain marketing costs we incur to obtain sales contracts from our customers. For example, there are various marketing costs that we currently capitalize and amortize with each home delivered in a community. Under the new guidance, these costs may need to be expensed immediately. Although we are still in the process of evaluating our contracts, we do not believe the adoption of ASU 2014-09 will have a material impact on the amount or timing of our home sales revenue, but could impact the amount and timing of land and lot sales. We are continuing to evaluate the exact impact the new standard will have on recording revenue and our marketing costs in our consolidated financial statements and related disclosures.
In August 2014, the FASB issued Accounting Standards Update No. 2014-15 (“ASU 2014-15”), Presentation of Financial Statements — Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which requires management to evaluate, in connection with preparing financial statements for each annual and interim reporting period, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable) and provide related disclosures. We adopted ASU 2014-15 on December 31, 2016, and the adoption had no impact on our current or prior year financial statements.
In February 2015, the FASB issued Accounting Standards Update No. 2015-02, (“ASU 2015-02”), Consolidation (Topic 810): Amendments to the Consolidation Analysis.   ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. ASU 2015-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015.  We adopted ASU 2015-02 on January 1, 2016 and the adoption had no impact on our current or prior year financial statements.
In November 2015, the FASB issued Accounting Standards Update No. 2015-17, (“ASU 2015-17”), Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, which requires deferred tax liabilities and assets be classified as noncurrent in a classified statement of position.  ASU 2015-17 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016.  The adoption of ASU 2015-17 is not expected to have a material effect on our consolidated financial statements due to our presentation of an unclassified balance sheet.
In February 2016, the FASB issued Accounting Standards Update No. 2016-02, (“ASU 2016-02”), Leases (Topic 842): Leases, which requires an entity to recognize assets and liabilities on the balance sheet for the rights and obligations created by leased assets and provide additional disclosures. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and, at that time, we will adopt the new standard using a modified retrospective approach. We are currently evaluating the impact that the adoption of ASU 2016-02 may have on our consolidated financial statements and disclosures.
In March 2016, the FASB issued Accounting Standards Update No. 2016-09, (“ASU 2016-09”), Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows.  ASU 2016-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. We are currently evaluating the impact that the adoption of ASU 2016-09 may have on our consolidated financial statements and disclosures, however we do not believe the guidance will have a material impact on our financial statements upon adoption.
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.
Merger with Weyerhaeuser Real Estate Company
Merger with Weyerhaeuser Real Estate Company
Merger with Weyerhaeuser Real Estate Company

In the Merger, TRI Pointe issued 129,700,000 shares of TRI Pointe common stock to the former holders of WRECO common shares, together with cash in lieu of any fractional shares. On the Closing Date, WRECO became a wholly owned subsidiary of TRI Pointe. Immediately following the consummation of the Merger, the ownership of TRI Pointe common stock on a fully diluted basis was as follows: (i) the WRECO common shares held by former Weyerhaeuser shareholders were converted into the right to receive, in the aggregate, approximately 79.6% of the then outstanding TRI Pointe common stock, (ii) the TRI Pointe common stock outstanding immediately prior to the consummation of the Merger represented approximately 19.4% of the then outstanding TRI Pointe common stock, and (iii) the outstanding equity awards of WRECO and TRI Pointe employees represented the remaining 1.0% of the then outstanding TRI Pointe common stock. On the Closing Date, the former direct parent entity of WRECO paid TRI Pointe $31.5 million in cash in accordance with the Transaction Agreement.  Following the Merger, WRECO changed its name to TRI Pointe Holdings, Inc.
Assumption of Senior Notes
On the Closing Date, TRI Pointe Homes assumed WRECO’s obligations as issuer of $450 million aggregate principal amount of its 2019 Notes and $450 million aggregate principal amount of its 2024 Notes (the 2019 Notes together with the 2024 Notes, the “Assumed Senior Notes”). Additionally, WRECO and certain of its subsidiaries (collectively, the “Guarantors”) entered into supplemental indentures pursuant to which they guaranteed TRI Pointe’s obligations with respect to the Assumed Senior Notes. The Guarantors also entered into a joinder agreement to the Purchase Agreement, dated as of June 4, 2014, among WRECO, TRI Pointe, and the initial purchasers of the Assumed Senior Notes (collectively, the “Initial Purchasers”), pursuant to which the Guarantors became parties to the Purchase Agreement. Additionally, TRI Pointe and the Guarantors entered into joinder agreements to the Registration Rights Agreements, dated as of June 13, 2014, among WRECO and the Initial Purchasers with respect to the Assumed Senior Notes, pursuant to which TRI Pointe and the Guarantors were joined as parties to the Registration Rights Agreements. In connection with the Reorganization, TRI Pointe Group became a co-issuer with TRI Pointe Homes of the Assumed Senior Notes.
The net proceeds of $861.3 million from the offering of the Assumed Senior Notes were deposited into two separate escrow accounts following the closing of the offering on June 13, 2014. Upon release of the escrowed funds on the Closing Date and prior to the consummation of the Merger, WRECO paid $743.7 million in cash to its former direct parent, which cash was retained by Weyerhaeuser and its subsidiaries (other than WRECO and its subsidiaries). The payment consisted of the $739.0 million Payment Amount (as defined in the Transaction Agreement) as well as $4.7 million in payment of all unpaid interest on the debt payable to Weyerhaeuser that accrued from November 3, 2013 to the Closing Date. The remaining $117.6 million of proceeds was retained by TRI Pointe.
Transaction Expenses
Advisory, financing, integration and other transaction costs directly related to the Merger, excluding the impact of restructuring costs and purchase accounting adjustments, totaled $18.0 million for the year ended December 31, 2014. No additional transaction-related costs were incurred in 2015 or 2016.
Fair Value of Assets Acquired and Liabilities Assumed
The following table summarizes the calculation of the fair value of the total consideration transferred and the provisional amounts recognized as of the Closing Date (in thousands, except shares and closing stock price):
 
Calculation of consideration transferred
 
TRI Pointe shares outstanding
31,632,533

TRI Pointe closing stock price on July 7, 2014
$
15.85

Consideration attributable to common stock
$
501,376

Consideration attributable to TRI Pointe share-based equity awards
1,072

Total consideration transferred
$
502,448

Assets acquired and liabilities assumed
 

Cash and cash equivalents
$
53,800

Accounts receivable
654

Real estate inventories
539,677

Intangible asset
17,300

Goodwill
139,304

Other assets
28,060

Total assets acquired
778,795

Accounts payable
(26,105
)
Accrued expenses and other liabilities
(23,114
)
Notes payable and other borrowings
(227,128
)
Total liabilities assumed
(276,347
)
Total net assets acquired
$
502,448


 
Cash and cash equivalents, accounts receivable, other assets, accounts payable, accrued payroll liabilities, and accrued expenses and other liabilities were generally stated at historical carrying values given the short-term nature of these assets and liabilities. Notes payable and other borrowings are stated at carrying value due to the limited amount of time since the notes payable and other borrowings were entered into prior to the Closing Date.
The Company determined the fair value of real estate inventories on a community-by-community basis primarily using a combination of market-comparable land transactions, land residual analysis and discounted cash flow models. The estimated fair value is significantly impacted by estimates related to expected average selling prices, sales pace, cancellation rates and construction and overhead costs. Such estimates must be made for each individual community and may vary significantly between communities.
The fair value of the acquired intangible asset was determined based on a valuation performed by an independent valuation specialist. The $17.3 million intangible asset is related to the TRI Pointe Homes trade name which is deemed to have an indefinite useful life.
Goodwill is primarily attributed to expected synergies from combining WRECO’s and TRI Pointe’s existing businesses, including, but not limited to, expected cost synergies from overhead savings resulting from streamlining certain redundant corporate functions, improved operating efficiencies, including provision of certain corporate level administrative and support functions at a lower cost than was historically allocated to WRECO for such services by its former direct parent, and growth of ancillary operations in various markets as permitted under applicable law, including a mortgage business, a title company and other ancillary operations. The Company also anticipates opportunities for growth through expanded geographic and homebuyer segment diversity and the ability to leverage additional brands.  The acquired goodwill is not deductible for income tax purposes.
Supplemental Pro Forma Information (Unaudited)
The following represents unaudited pro forma operating results as if the acquisition had been completed as of January 1, 2014 (in thousands, except per share amounts):
 
 
Year Ended
 
December 31, 2014
Total revenues
$
1,865,723

Net income
$
88,416

Earnings per share – basic
$
0.55

Earnings per share – diluted
$
0.55


 
The unaudited pro forma operating results have been determined after adjusting the operating results of TRI Pointe to reflect the purchase accounting and other acquisition adjustments including interest expense associated with the debt used to fund a portion of the Merger. The unaudited pro forma results do not reflect any cost savings, operating synergies or other enhancements that we may achieve as a result of the Merger or the costs necessary to integrate the operations to achieve these cost savings and synergies. Accordingly, the unaudited pro forma amounts are for comparative purposes only and may not necessarily reflect the results of operations had the Merger been completed at the beginning of the period or be indicative of the results we will achieve in the future.
Restructuring Charges
Restructuring Charges
Restructuring Charges

In connection with the Merger, the Company initiated a restructuring plan to reduce duplicate corporate and divisional overhead costs and expenses. In addition, WRECO previously recognized restructuring expenses related to general cost reduction initiatives. Restructuring costs were comprised of the following (in thousands):
 
Year Ended December 31,
 
2016
 
2015
 
2014
Employee-related costs
$
99

 
$
1,546

 
$
9,211

Lease termination costs
550

 
1,783

 
1,332

Total
$
649

 
$
3,329

 
$
10,543


 
Employee-related costs of $99,000 and $1.5 million for the years ended December 31, 2016 and 2015 related to severance-related expenses.  Employee-related costs incurred during the year ended December 31, 2014 included employee retention and severance-related expenses of $8.3 million and stock-based compensation expense of $947,000 for employees terminated during the period.  Lease termination costs of $550,000, $1.8 million and $1.3 million during the years ended December 31, 2016, 2015 and 2014, respectively, relate to contract terminations as a result of general cost reduction initiatives.
Changes in employee-related restructuring reserves were as follows (in thousands):
 
Year Ended December 31,
 
2016
 
2015
 
2014
Accrued employee-related costs, beginning of period
$
220

 
$
3,844

 
$
4,336

Current year charges
99

 
1,546

 
8,264

Payments
(250
)
 
(5,170
)
 
(8,756
)
Accrued employee-related costs, end of period
$
69

 
$
220

 
$
3,844



Changes in lease termination related restructuring reserves were as follows (in thousands):
 
Year Ended December 31,
 
2016
 
2015
 
2014
Accrued lease termination costs, beginning of period
$
767

 
$
1,394

 
$
3,506

Current year charges
550

 
1,783

 
1,332

Payments
(1,236
)
 
(2,410
)
 
(3,444
)
Accrued lease termination costs, end of period
$
81

 
$
767

 
$
1,394


 
Employee and lease termination restructuring reserves are included in accrued expenses and other liabilities on our consolidated balance sheets.
Segment Information
Segment Information
Segment Information

We operate two principal businesses: homebuilding and financial services.
Our homebuilding operations consist of six homebuilding companies, each operating under different brand names, where 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 are comprised of the following six reportable segments: Maracay Homes, consisting of operations in Arizona; Pardee Homes, consisting of operations in California and Nevada; Quadrant Homes, consisting of operations in Washington; Trendmaker Homes, consisting of operations in Texas; TRI Pointe Homes, consisting of operations in California and Colorado; and Winchester Homes, consisting of operations in Maryland and Virginia.
Our financial services reportable segment (“TRI Pointe Solutions”) is comprised of 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 imortgage 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):
 
 
2016
 
2015
 
2014
Revenues
 
 
 
 
 
Maracay Homes
$
255,253

 
$
185,645

 
$
150,689

Pardee Homes
730,848

 
670,063

 
525,381

Quadrant Homes
213,221

 
189,401

 
145,377

Trendmaker Homes
244,001

 
278,759

 
281,270

TRI Pointe Homes
723,186

 
774,005

 
324,208

Winchester Homes
237,413

 
302,276

 
276,691

Total homebuilding revenues
2,403,922

 
2,400,149

 
1,703,616

Financial services
1,220

 
1,010

 
—

Total
$
2,405,142

 
$
2,401,159

 
$
1,703,616

Income before taxes
 

 
 

 
 

Maracay Homes
$
17,189

 
$
9,849

 
$
10,845

Pardee Homes
204,237

 
183,077

 
74,898

Quadrant Homes
21,209

 
10,478

 
9,028

Trendmaker Homes
15,353

 
25,004

 
31,684

TRI Pointe Homes
62,013

 
104,970

 
19,272

Winchester Homes
16,147

 
22,411

 
24,612

Corporate (1)
(39,698
)
 
(38,589
)
 
(42,350
)
Total homebuilding income before income taxes
296,450

 
317,200

 
127,989

Financial services
5,777

 
2,060

 
(25
)
Total
$
302,227

 
$
319,260

 
$
127,964

 
(1) 
Includes $18.0 million of Merger related transaction costs and $5.5 million of restructuring charges for the year ended December 31, 2014.  No similar costs were incurred for the years ended December 31, 2016 or 2015, respectively.

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, 2016
 
December 31, 2015
Real estate inventories
 

 
 

Maracay Homes
$
228,965

 
$
206,912

Pardee Homes
1,098,608

 
1,011,982

Quadrant Homes
221,386

 
190,038

Trendmaker Homes
211,035

 
199,398

TRI Pointe Homes
868,088

 
659,130

Winchester Homes
282,545

 
251,813

Total
$
2,910,627

 
$
2,519,273

Total assets
 

 
 

Maracay Homes
$
255,466

 
$
227,857

Pardee Homes
1,201,302

 
1,089,586

Quadrant Homes
242,208

 
202,024

Trendmaker Homes
225,025

 
213,562

TRI Pointe Homes
1,052,400

 
832,423

Winchester Homes
305,379

 
278,374

Corporate
275,923

 
292,169

Total homebuilding assets
3,557,703

 
3,135,995

Financial services
6,937

 
2,076

Total
$
3,564,640

 
$
3,138,071

Earnings Per Share
Earnings Per Share
Earnings Per Share  
The following table sets forth the components used in the computation of basic and diluted earnings per share (in thousands, except share and per share amounts):
 
 
Year Ended December 31,
 
2016
 
2015
 
2014
Numerator:
 

 
 

 
 

Income available to common stockholders
$
195,171

 
$
205,461

 
$
84,197

Denominator:
 

 
 

 
 

Basic weighted-average shares outstanding
160,859,782

 
161,692,152

 
145,044,351

Effect of dilutive shares:
 
 
 
 
 
Stock options and unvested restricted stock units
521,717

 
627,606

 
486,938

Diluted weighted-average shares outstanding
161,381,499

 
162,319,758

 
145,531,289

Earnings per share
 

 
 

 
 

Basic
$
1.21

 
$
1.27

 
$
0.58

Diluted
$
1.21

 
$
1.27

 
$
0.58

Antidilutive stock options not included in diluted earnings per share
4,551,337

 
2,622,391

 
1,295,280


 
In the Merger, each issued and outstanding WRECO common share was converted into 1.297 shares of TRI Pointe common stock. The historical issued and outstanding WRECO common shares (100,000,000 common shares for all periods presented prior to the Merger) have been recast (as 129,700,000 common shares of the Company for all periods prior to the Merger) in all periods presented to reflect this conversion.  See Note 2, Merger with Weyerhaeuser Real Estate Company, for further information on the Merger.
Receivables, Net
Receivables, Net
Receivables, Net
Receivables, net consisted of the following (in thousands):
 
December 31, 2016
 
December 31, 2015
Escrow proceeds and other accounts receivable, net
$
35,625

 
$
32,917

Warranty insurance receivable(1) (Note 15)
46,875

 
10,493

Notes and contracts receivable
—

 
300

Total receivables
$
82,500

 
$
43,710


 __________
(1) 
This amount includes approximately $38.0 million reclassified in 2016, which represents the estimated recoveries related to our insurance policies that during 2015 had been offset against our insurance liabilities and recoveries. For further discussion see Note 15 – Commitments and Contingencies.

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 $286,000 in 2016 and $1.7 million in 2015.
Real Estate Inventories
Real Estate Inventories
Real Estate Inventories  

Real estate inventories consisted of the following (in thousands):
 
December 31, 2016
 
December 31, 2015
Real estate inventories owned:
 

 
 

Homes completed or under construction
$
659,210

 
$
575,076

Land under development
1,824,989

 
1,443,461

Land held for future development
226,915

 
295,241

Model homes
155,039

 
140,232

Total real estate inventories owned
2,866,153

 
2,454,010

Real estate inventories not owned:
 

 
 

Land purchase and land option deposits
26,174

 
39,055

Consolidated inventory held by VIEs
18,300

 
26,208

Total real estate inventories not owned
44,474

 
65,263

Total real estate inventories
$
2,910,627

 
$
2,519,273


 
Homes completed or under construction is comprised of costs associated with homes in various stages of construction and includes direct construction and related land acquisition and land development costs. Land under development primarily consists of land acquisition and land development costs, which include capitalized interest and real estate taxes, associated with land undergoing improvement activity. Land held for future development principally reflects land acquisition and land development costs related to land where development activity has not yet begun or has been suspended, but is expected to occur in the future.
Real estate inventories not owned represents deposits related to land purchase and land option agreements as well as consolidated inventory held by a VIE. For further details, see Note 9, Variable Interest Entities.
Interest incurred, capitalized and expensed were as follows (in thousands):
 
Year Ended December 31,
 
2016
 
2015
 
2014
Interest incurred
$
68,306

 
$
60,964

 
$
41,706

Interest capitalized
(68,306
)
 
(60,964
)
 
(38,975
)
Interest expensed
$
—

 
$
—

 
$
2,731

Capitalized interest in beginning inventory
$
140,311

 
$
124,461

 
$
138,233

Interest capitalized as a cost of inventory
68,306

 
60,964

 
38,975

Interest previously capitalized as a cost of inventory, included in
   cost of sales
(51,288
)
 
(45,114
)
 
(52,747
)
Capitalized interest in ending inventory
$
157,329

 
$
140,311

 
$
124,461


 
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 (loss), 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,
 
2016
 
2015
 
2014
Real estate inventory impairments
$
—

 
$
1,167

 
$
931

Land and lot option abandonments and pre-acquisition costs
1,470

 
763

 
1,584

Total
$
1,470

 
$
1,930

 
$
2,515


 
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
Investments in Unconsolidated Entities
Investments in Unconsolidated Entities

As of December 31, 2016, we held equity investments in six active homebuilding partnerships or limited liability companies and one financial services limited liability company. Our participation in these entities may be as a developer, a builder, or an investment partner. Our ownership percentage varies from 7% to 55%, depending on the investment, with no controlling interest held in any of these investments.
Investments Held
Our cumulative investment in entities accounted for on the equity method, including our share of earnings and losses, consisted of the following (in thousands):
 
 
December 31,
 
2016
 
2015
Limited liability company interests
$
14,327

 
$
15,739

General partnership interests
3,219

 
3,260

Total
$
17,546

 
$
18,999


 
Unconsolidated Financial Information
Aggregated assets, liabilities and operating results of the entities we account for as equity-method investments are provided below. Because our ownership interest in these entities varies, a direct relationship does not exist between the information presented below and the amounts that are reflected on our consolidated balance sheets as our investment in unconsolidated entities or on our consolidated statement of operations as equity in income (loss) of unconsolidated entities.
Assets and liabilities of unconsolidated entities (in thousands):
 
December 31,
 
2016
 
2015
Assets
 
 
 
Cash
$
9,796

 
$
18,641

Receivables
10,203

 
13,108

Real estate inventories
97,402

 
92,881

Other assets
1,087

 
1,180

Total assets
$
118,488

 
$
125,810

Liabilities and equity
 
 
 
Accounts payable and other liabilities
$
12,844

 
$
14,443

Company’s equity
17,546

 
18,999

Outside interests' equity
88,098

 
92,368

Total liabilities and equity
$
118,488

 
$
125,810


Results of operations from unconsolidated entities (in thousands):
 
 
Year Ended December 31,
 
2016
 
2015
 
2014
Net sales
$
18,725

 
$
7,326

 
$
606

Other operating expense
(11,315
)
 
(6,690
)
 
(4,290
)
Other income (expense)
4

 
(279
)
 
(2
)
Net income (loss)
$
7,414

 
$
357

 
$
(3,686
)
Company’s equity in income (loss) of unconsolidated entities
$
4,989

 
$
2,691

 
$
(288
)
Variable Interest Entities
Variable Interest Entities
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, 2016
 
December 31, 2015
 
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

 
$
3,003

 
$
23,239

 
$
26,208

Unconsolidated VIEs
2,375

 
49,016

 
N/A

 
11,615

 
74,590

 
N/A

Other land option agreements
23,799

 
246,658

 
N/A

 
27,440

 
279,612

 
N/A

Total
$
26,574

 
$
313,574

 
$
18,300

 
$
42,058

 
$
377,441

 
$
26,208


 
Unconsolidated VIEs represent land option agreements that were not consolidated because we were not the primary beneficiary. Other land 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 $3.6 million and $5.0 million as of December 31, 2016 and 2015, respectively. These pre-acquisition costs were included in real estate inventories as land under development on our consolidated balance sheets.
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
During the year ended December 31, 2014, the Company recorded $139.3 million of goodwill in connection with the Merger. As of December 31, 2016 and 2015, $139.3 million of goodwill is included in goodwill and other intangible assets, net, on each of the consolidated balance sheets. The Company's goodwill balance is included in the TRI Pointe Homes reporting segment in Note 4, Segment Information. For further details on goodwill, see Note 2, Merger with Weyerhaeuser Real Estate Company.
We have two intangible assets as of December 31, 2016, comprised of an existing trade name from the acquisition of Maracay Homes in 2006, which has a 20 years useful life, and a TRI Pointe Homes trade name resulting from the acquisition of WRECO in 2014, which has an indefinite useful life. For further details on the TRI Pointe Homes trade name see Note 2, Merger with Weyerhaeuser Real Estate Company.
Goodwill and other intangible assets consisted of the following (in thousands):
 
December 31, 2016
 
December 31, 2015
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
Goodwill
$
139,304

 
$
—

 
$
139,304

 
$
139,304

 
$
—

 
$
139,304

Trade names
27,979

 
(5,788
)
 
22,191

 
27,979

 
(5,254
)
 
22,725

Total
$
167,283

 
$
(5,788
)
 
$
161,495

 
$
167,283

 
$
(5,254
)
 
$
162,029


 
The remaining useful life of our amortizing intangible asset related to Maracay was 9.2 and 10.2 years as of December 31, 2016 and 2015, respectively. Amortization expense related to this intangible asset was $534,000 for the year ended December 31, 2016 and 2015, respectively, 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):
2017
$
534

2018
534

2019
534

2020
534

2021
534

Thereafter
2,221

Total
$
4,891

Other Assets
Other Assets
Other Assets
Other assets consisted of the following (in thousands):
 
December 31, 2016
 
December 31, 2015
Prepaid expenses
$
24,495

 
$
14,523

Refundable fees and other deposits
17,731

 
17,056

Development rights, held for future use or sale
2,569

 
4,360

Deferred loan costs
2,101

 
2,179

Operating properties and equipment, net
10,884

 
7,643

Other
2,812

 
3,157

Total
$
60,592

 
$
48,918

Accrued Expenses and Other Liabilities
Accrued Expenses and Other Liabilities
Accrued Expenses and Other Liabilities
Accrued expenses and other liabilities consisted of the following (in thousands):
 
December 31, 2016
 
December 31, 2015
Accrued payroll and related costs
$
33,761

 
$
28,264

Warranty reserves(1) (Note 15)
83,135

 
45,948

Estimated cost for completion of real estate inventories
59,531

 
52,818

Customer deposits
13,437

 
12,132

Debt (nonrecourse) held by VIEs
—

 
2,442

Income tax liability to Weyerhaeuser
8,589

 
8,900

Accrued income taxes payable
1,200

 
19,279

Liability for uncertain tax positions
—

 
307

Accrued interest
11,570

 
2,417

Accrued insurance expense
529

 
1,402

Other tax liabilities
34,961

 
21,764

Other
17,132

 
20,590

Total
$
263,845

 
$
216,263


__________
(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 the current year, approximately $36.5 million related to prior year estimated warranty insurance recoveries. For further details, see Note 6, Receivables, Net and Note 15, Commitments and Contingencies.
Senior Notes and Notes Payable and Other Borrowings
Senior Notes and Notes Payable and Other Borrowings
Senior Notes and Notes Payable and Other Borrowings
Senior Notes
Senior notes consisted of the following (in thousands): 
 
December 31,
2016
 
December 31,
2015
4.375% Senior Notes due June 15, 2019
$
450,000

 
$
450,000

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

 
—

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

 
450,000

Discount and deferred loan costs
(31,693
)
 
(31,321
)
Total
$
1,168,307

 
$
868,679


In May 2016, TRI Pointe Group issued $300 million aggregate principal amount of 4.875% Senior Notes due 2021 (the "2021 Notes") at 99.44% of their aggregate principal amount. Net proceeds of this issuance were $293.9 million, after debt issuance costs and discounts. The 2021 Notes mature on July 1, 2021 and interest is paid semiannually in arrears on January 1 and July 1.
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, 2016, no principal has been paid on the 2019 Notes, 2021 Notes and 2024 Notes (collectively, the “Senior Notes”), and there was $20.9 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 $10.7 million and $1.9 million as of December 31, 2016 and 2015, respectively.
Unsecured Revolving Credit Facility
Unsecured revolving credit facility consisted of the following (in thousands): 
 
December 31, 2016
 
December 31, 2015
Unsecured revolving credit facility
$
200,000

 
$
299,392


 
On April 28, 2016, the Company partially exercised the accordion feature under its existing unsecured revolving credit facility (the “Credit Facility”) to increase the total commitments under the Credit Facility to $625.0 million from $550.0 million.  The Credit Facility matures on May 18, 2019, and 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 1.45% to 2.20%, depending on the Company’s leverage ratio. As of December 31, 2016, the outstanding balance under the Credit Facility was $200.0 million with an interest rate of 2.44% per annum and $420.7 million of availability after considering the borrowing base provisions and outstanding letters of credit.  As of December 31, 2016 there was $2.1 million of capitalized debt financing costs, included in other assets on our consolidated balance sheet, related to the Credit Facility that will amortize over the life of the Credit Facility, maturing on May 18, 2019.  Accrued interest related to the Credit Facility was $658,000 and $407,000 as of December 31, 2016 and 2015, respectively.
At December 31, 2016 and 2015, we had outstanding letters of credit of $4.3 million and $8.4 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, 2016
 
December 31, 2015
Seller financed loans
$
13,726

 
$
2,434


 
Principal and interest payments on these loans are due at various maturity dates, including at the time individual homes associated with the acquired land are delivered.  The seller financed loans accrue interest at a weighted average rate of 7.0% per annum, with interest calculated on a daily basis. A minimum principal payment of $8.1 million is due in June 2017 with any remaining unpaid balance due in June 2018.  Accrued interest on these loans was $519,000 and $89,000 as of December 31, 2016 and 2015, respectively.
Interest Incurred
During the years ended December 31, 2016 and 2015, the Company incurred interest of $68.3 million and $61.0 million, respectively, related to all notes payable, Senior Notes and debt payable to Weyerhaeuser outstanding during the period. All interest incurred was capitalized to inventory for the years ended December 31, 2016 and 2015, respectively. Included in interest incurred was amortization of deferred financing and Senior Notes discount costs of $6.5 million and $5.4 million for the years ended December 31, 2016 and 2015, respectively.  Accrued interest related to all outstanding debt at December 31, 2016 and 2015 was $11.6 million and $2.4 million, respectively.
Covenant Requirements
The Senior Notes contain covenants that restrict our ability to, among other things, create liens or other encumbrances, enter into sale and leaseback transactions, or merge or sell all or substantially all of our assets. These limitations are subject to a number of qualifications and exceptions.
Under the Credit Facility, the Company is required to comply with certain financial covenants, including but not limited to (i) a minimum consolidated tangible net worth; (ii) a maximum total leverage ratio; and (iii) a minimum interest coverage ratio. The Company was in compliance with all applicable financial covenants as of December 31, 2016 and December 31, 2015.
Fair Value Disclosures
Fair Value Disclosures
Fair Value Disclosures
Fair Value Measurements
ASC Topic 820, Fair Value Measurements and Disclosures, defines “fair value” as the price that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at measurement date and requires assets and liabilities carried at fair value to be classified and disclosed in the following three categories:
•
Level 1—Quoted prices for identical instruments in active markets
•
Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are inactive; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets at measurement date
•
Level 3—Valuations derived from techniques where one or more significant inputs or significant value drivers are unobservable in active markets at measurement date

Fair Value of Financial Instruments
A summary of assets and liabilities at December 31, 2016 and 2015, related to our financial instruments, measured at fair value on a recurring basis, is set forth below (in thousands):
 
 
 
December 31, 2016
 
December 31, 2015
 
Hierarchy
 
Book Value
 
Fair Value
 
Book Value
 
Fair Value
Senior Notes (1)
Level 2
 
$
1,189,180

 
$
1,219,125

 
$
889,054

 
$
881,460

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

 
$
177,410

 
$
299,392

 
$
299,392

Seller financed loans (3)
Level 2
 
$
13,726

 
$
13,189

 
$
2,434

 
$
2,368

   __________
(1) 
The book value of the Senior Notes is net of discounts, excluding deferred loan costs of $20.9 million and $20.4 million as of December 31, 2016 and 2015, respectively. The estimated fair value of our Senior Notes at December 31, 2016 and 2015 is based on quoted market prices.
(2) 
The estimated fair value of the Credit Facility at December 31, 2016 is based on a treasury curve analysis. We believe that the carrying value of the Credit Facility approximated fair value at December 31, 2015.
(3) 
The estimated fair value of the seller financed loans at December 31, 2016 and 2015 is based on a treasury curve analysis.
At December 31, 2016 and 2015, the carrying value of cash and cash equivalents and receivables approximated fair value.

Fair Value of Nonfinancial Assets
Nonfinancial assets include items such as real estate inventories and long-lived assets that are measured at fair value on a nonrecurring basis 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, 2016
 
Year Ended December 31, 2015
 
Impairment
Charge
 
Fair Value
Net of
Impairment
 
Impairment
Charge
 
Fair Value
Net of
Impairment
Real estate inventories (1)
$
—

 
$
—

 
$
1,167

 
$
28,540

 
(1) 
Fair value of real estate inventories, net of impairment charges represents only those assets whose carrying values were adjusted to fair value in the respective periods presented.  The fair value of these real estate inventories impaired was determined based on recent offers received from outside third parties or actual contracts.
Commitments and Contingencies
Commitments and Contingencies
Commitments and Contingencies  

Legal Matters
Lawsuits, claims and proceedings have been and may be instituted or asserted against us in the normal course of business, including actions brought on behalf of various classes of claimants. We are also subject to local, state and federal laws and regulations related to land development activities, house construction standards, sales practices, employment practices, environmental protection and financial services. As a result, we are subject to periodic examinations or inquiry by agencies administering these laws and regulations.
We record a reserve for potential legal claims and regulatory matters when they are probable of occurring and a potential loss is reasonably estimable. We accrue for these matters based on facts and circumstances specific to each matter and revise these estimates when necessary.  In view of the inherent difficulty of predicting outcomes of legal claims and related contingencies, we generally cannot predict their ultimate resolution, related timing or eventual loss. Accordingly, it is possible that the ultimate outcome of any matter, if in excess of a related accrual or if no accrual was made, could be material to our financial statements.  For matters as to which the Company believes a loss is probable and reasonably estimable, we had legal reserves of $225,000 and $450,000 as of December 31, 2016 and 2015, respectively.
Warranty
Warranty reserves are accrued as home deliveries occur. Our warranty reserves on homes delivered will vary based on product type and geographic area and also depending on state and local laws. The warranty reserve is included in accrued expenses and other liabilities on our consolidated balance sheets and represents expected future costs based on our historical experience over previous years. Estimated warranty costs are charged to cost of home sales in the period in which the related home sales revenue is recognized.
We maintain general liability insurance designed to protect us against a portion of our risk of loss from 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 $46.9 million and $10.5 million as of December 31, 2016 and 2015, 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,
 
2016
 
2015
 
2014
Warranty reserves, beginning of period
$
45,948

 
$
33,270

 
$
24,449

Warranty reserves accrued
12,712

 
16,557

 
11,659

Liabilities assumed in the Merger
—

 
—

 
7,481

Adjustments to pre-existing reserves(1)
36,826

 
7,451

 
199

Warranty expenditures
(12,351
)
 
(11,330
)
 
(10,518
)
Warranty reserves, end of period
$
83,135

 
$
45,948

 
$
33,270


  __________
(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 the current year, approximately $36.5 million related to prior year estimated warranty insurance recoveries. For further details, see Note 6, Receivables, Net and Note 12, Accrued Expenses and Other Liabilities.

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, 2016 and December 31, 2015, the Company had outstanding surety bonds totaling $449.6 million and $414.1 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):
 
2017
$
6,875

2018
5,611

2019
5,316

2020
5,223

2021
4,655

Thereafter
5,027

 
$
32,707


 
For the years ended December 31, 2016, 2015 and 2014, rental expense was $6.4 million, $6.2 million and $4.9 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):
 
2017
$
2,239

2018
2,239

2019
2,239

2020
2,239

2021
2,239

Thereafter
74,992

 
$
86,187


 
This ground lease has been subleased through 2041 to the buyers of the commercial buildings. Our lease commitments through 2041 total $56.0 million as of December 31, 2016, 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, 2016, guaranteed future payments on the lease, which expires in 2041, were $10.6 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, 2016, we had $26.6 million of non-refundable cash deposits pertaining to land option contracts and purchase contracts with an aggregate remaining purchase price of approximately $313.6 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
Stock-Based Compensation
Stock-Based Compensation

2013 Long-Term Incentive Plan
The Company’s stock compensation plan, the 2013 Long-Term Incentive Plan (the “2013 Incentive Plan”), was adopted by legacy TRI Pointe in January 2013 and amended with the approval of our stockholders in 2014. The 2013 Incentive Plan provides for the grant of equity-based awards, including options to purchase shares of common stock, stock appreciation rights, common 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, 2016 there were 7,605,118 shares available for future grant under the 2013 Incentive Plan.
Converted Awards
Under the Transaction Agreement, each outstanding Weyerhaeuser equity award held by an employee of WRECO was converted into a similar equity award with TRI Pointe, based on the final exchange ratio of 2.1107 (the “Exchange Ratio”), rounded down to the nearest whole number of shares of common stock. The Company filed a registration statement on Form S-8 (Registration No. 333-197461) on July 16, 2014 to register 4,105,953 shares related to these equity awards. The converted awards have the same terms and conditions as the Weyerhaeuser 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 the Exchange Ratio. There will be no future grants under the WRECO equity incentive plans.
The fair value of stock option awards assumed in the Merger was determined by using an option-based model with the following assumptions:
 
2014 Grants

 
2013 Grants

 
2012 Grants

 
2011 Grants

Dividend yield
2.92
%
 
2.23
%
 
2.94
%
 
2.48
%
Expected volatility
31.71
%
 
38.00
%
 
40.41
%
 
38.56
%
Risk-free interest rate
1.57
%
 
0.92
%
 
1.01
%
 
2.65
%
Expected life (in years)
4.97

 
4.97

 
5.33

 
5.73



The following table presents compensation expense recognized related to all stock-based awards (in thousands):
 
Year Ended December 31,
 
2016
 
2015
 
2014
Total stock-based compensation
$
12,612

 
$
11,935

 
$
7,679


 
As of December 31, 2016, total unrecognized stock-based compensation related to all stock-based awards was $17.0 million and the weighted average term over which the expense was expected to be recognized was 1.72 years.
Summary of Stock Option Activity
The following table presents a summary of stock option awards for the year ended December 31, 2016:
 
 
Options
 
Weighted
Average
Exercise
Price
Per Share
 
Weighted
Average
Remaining
Contractual
Life
 
Aggregate
Intrinsic
Value
(in thousands)
Options outstanding at December 31, 2015
3,220,147

 
$
13.12

 
5.2

 
$
3,081

Granted
—

 
—

 
—

 
—

Exercised
(96,572
)
 
9.47

 
 
 
 
Forfeited
(152,205
)
 
12.39

 
 
 
 
Options outstanding at December 31, 2016
2,971,370

 
$
13.12

 
4.4

 
$
1,568

Options exercisable at December 31, 2016
2,599,661

 
$
13.08

 
4.0

 
$
1,568


 
The total intrinsic value of stock option awards exercised during the years ended December 31, 2016, 2015 and 2014 was $324,000, $642,000 and $51,000, respectively. The total grant date fair value of stock option awards granted or assumed during the years ended December 31, 2016, 2015 and 2014 were $0.0, $0.0 and $11.8 million, respectively.
The fair value of stock option awards granted under the 2013 Incentive Plan at legacy TRI Pointe during the years ended December 31, 2016, 2015 and 2014 were established at the date of grant using an option based model with the following assumptions:
 
2016 Grants
 
2015 Grants
 
2014 Grants

Dividend yield
N/A
 
N/A
 
—
%
Expected volatility
N/A
 
N/A
 
63.01
%
Risk-free interest rate
N/A
 
N/A
 
1.96
%
Expected life (in years)
N/A
 
N/A
 
6.00


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

 
$
12.21

 
$
24,808

Granted
1,904,389

 
8.41

 
21,862

Vested
(431,761
)
 
14.53

 
 
Forfeited
(17,942
)
 
12.13

 
 
Nonvested RSUs at December 31, 2016
3,412,719

 
$
9.77

 
$
39,178



The total intrinsic value of restricted stock units that vested during the years ended December 31, 2016, 2015 and 2014 was $4.6 million, $6.8 million and $1.0 million, respectively. The total grant date fair value of restricted stock awards granted or assumed during the years ended December 31, 2016, 2015 and 2014 were $21.8 million, $18.3 million and $15.2 million, respectively.

On March 5, 2015, the Company granted an aggregate of 440,800 restricted stock units to employees and officers. The restricted stock units granted vest annually on the anniversary of the grant date over a three year period.  The fair value of each restricted stock award granted on March 5, 2015 was measured using a price of $14.97 per share, which was the closing stock price on the date of grant.  Each award will be expensed on a straight-line basis over the vesting period.
On March 9, 2015, the Company granted 411,804, 384,351, and 274,536 performance-based RSUs to the Company’s Chief Executive Officer, President, and Chief Financial Officer, respectively, with 1/3 of the performance-based RSU amounts being allocated to each of the three following separate performance goals: total stockholder return (compared to a group of similarly sized homebuilders); earnings per share; and stock price. The performance-based restricted stock units granted will vest in each case, if at all, based on the percentage of attainment of the applicable performance goal. The performance periods for the performance-based RSUs with vesting based on total stockholder return and earnings per share are January 1, 2015 to December 31, 2017. The performance period for the performance-based RSUs with vesting based on stock price is January 1, 2016 to December 31, 2017. The fair value of the performance-based RSUs related to the total stockholder return and stock price performance goals was determined to be $7.55 and $7.90 per share, respectively, based on a Monte Carlo simulation. The fair value of the performance-based RSUs related to the earnings per share goal was measured using a price of $14.57 per share, which was the closing stock price on the date of grant. Each grant will be expensed on a straight-line basis over the expected vesting period.
On August 12, 2015, the Company granted an aggregate of 69,008 restricted stock units to members of its board of directors. The restricted stock units granted to directors on August 12, 2015 vested in their entirety on the day immediately prior to the Company’s 2016 Annual Meeting of Stockholders. The fair value of each restricted stock award granted on August 12, 2015 was measured using $14.49 per share, which was the closing price on the date of grant. Each award is expensed on a straight-line basis over the vesting period.

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

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

On June 6, 2016, the Company granted an aggregate of 74,466 RSUs to the non-employee members of its board of directors. These RSUs will vest in their entirety on the day immediately prior to the Company's 2017 Annual Meeting of Stockholders. The fair value of each RSU granted on June 6, 2016 was measured using a price of $11.75 per share, which was the closing stock price on the date of grant. Each award will be expensed on a straight-line basis over the vesting period.

As restricted stock units vest, a portion of the shares awarded is generally withheld to cover employee minimum tax withholdings. As a result, the number of restricted stock units vested and the number of shares of TRI Pointe common stock issued will differ.
Income Taxes
Income Taxes
Income Taxes  

The provision for income tax attributable to income before income taxes consisted of (in thousands):
 
Year Ended December 31,
 
2016
 
2015
 
2014
Current:
 

 
 
 
 

Federal
$
90,387

 
$
91,343

 
$
(109,565
)
State
8,744

 
6,715

 
5,339

Total current taxes
99,131

 
98,058

 
(104,226
)
Deferred:
 

 
 

 
 

Federal
5,749

 
8,296

 
147,797

State
1,214

 
5,725

 
196

Total deferred taxes
6,963

 
14,021

 
147,993

Total income tax expense
$
106,094

 
$
112,079

 
$
43,767


 
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,
 
2016
 
2015
 
2014
Taxes at the U.S. federal statutory rate
$
105,779

 
$
111,846

 
$
44,788

State income taxes, net of federal tax impact
9,539

 
9,627

 
3,822

Tax loss on the sale of WRI
—

 
—

 
(5,786
)
Non-deductible transaction costs
305

 
—

 
2,594

Change in valuation allowance
(4,038
)
 
(1,872
)
 
—

Other, net
(5,491
)
 
(7,522
)
 
(1,651
)
Total income tax expense
$
106,094

 
$
112,079

 
$
43,767

Effective income tax rate
35.1
%
 
35.1
%
 
34.2
%

 
Deferred taxes consisted of the following at December 31, 2016 and 2015 (in thousands):
 
Year Ended
December 31,
 
2016
 
2015
Deferred tax assets:
 
 
 

Impairment and other valuation reserves
$
73,890

 
$
89,057

Incentive compensation
8,322

 
3,617

Indirect costs capitalized
25,377

 
20,266

Net operating loss carryforwards (state)
24,583

 
29,461

Transaction costs
(924
)
 
(833
)
State taxes
2,985

 
2,903

Other costs and expenses
15,214

 
13,641

Gross deferred tax assets
149,447

 
158,112

Valuation allowance
(323
)
 
(4,361
)
Deferred tax assets, net of valuation allowance
149,124

 
153,751

 
 
 
 
Deferred tax liabilities:
 
 
 
Interest capitalized
(814
)
 
268

Basis difference in inventory
(14,186
)
 
(14,128
)
Fixed assets
(1,101
)
 
1,274

Intangibles
(8,456
)
 
(9,015
)
Other
(1,344
)
 
(1,493
)
Deferred tax liabilities
(25,901
)
 
(23,094
)
Net deferred tax assets
$
123,223

 
$
130,657



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, 2016, the Company had a state net operating loss carryforward of $460.9 million, which will expire between 2017 and 2034. As of December 31, 2016 and 2015, we had a valuation allowance on our deferred tax assets of $323,000 and $4.4 million, respectively, related to certain federal and state net operating loss carryforwards as the tax benefits from those losses were assessed as being not more likely than not to be realized.  The decrease in the valuation allowance in 2016 is due to a release of the valuation allowance against a portion of our state net operating loss carryovers as we have determined that realization of tax benefits for the losses are now 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 2012-2016 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,
 
2016
 
2015
Balance at beginning of year
$
272

 
$
14,857

Decreases related to prior year tax positions
(272
)
 
(1,706
)
Decreases related to current year tax positions
—

 
(12,879
)
Balance at end of year
$
—

 
$
272


 
The Company classifies interest and penalties related to income taxes as part of income tax expense. Accrued interest and penalties are included within the related liabilities in the balance sheet. The Company had no unpaid interest as a result of uncertain tax position as of December 31, 2016, and $35,000 as of December 31, 2015.

As a result of the Merger in fiscal 2014, the Company separated from its former parent. The Company’s income tax expense for the period prior to the Merger reflected taxes calculated pursuant to the tax sharing agreement with the former parent. If we were to calculate income taxes using the separate return method, the effect on pro forma unaudited income and pro forma unaudited earnings per share would be as follows (in thousands, except per share amounts):
 
 
Year Ended December 31,
 
2016
 
2015
 
2014
 
(unaudited)
 
(unaudited)
 
(unaudited)
Income before income taxes as reported in the accompanying financial statements
$
302,227

 
$
319,260

 
$
127,964

Provision for income taxes assuming computation on a separate return basis
(106,094
)
 
(112,079
)
 
(49,553
)
Pro forma income
196,133

 
207,181

 
78,411

Net income attributable to noncontrolling interests
(962
)
 
(1,720
)
 
—

Pro forma net income available to common stockholders
$
195,171

 
$
205,461

 
$
78,411

Pro forma earnings per share - basic
$
1.21

 
$
1.27

 
$
0.54

Pro forma earnings per share - diluted
$
1.21

 
$
1.27

 
$
0.54

 
Based upon calculating income tax expense on a separate return basis, our income tax provision would have increased by $5.8 million for the year ended December 31, 2014 related to the tax loss on the sale of Weyerhaeuser Realty Investors, Inc. to Weyerhaeuser NR Company that would not have provided a benefit to our income tax provision.  There would be no change to our income tax provision for the years ended December 31, 2016 and 2015.
Refer to Note 18, Related Party Transactions, for a description of the tax sharing agreement between TRI Pointe and Weyerhaeuser.
Related Party Transactions
Related Party Transactions
Related Party Transactions

Prior to the Merger, WRECO was a wholly owned subsidiary of Weyerhaeuser. Weyerhaeuser provided certain services including payroll processing and related employee benefits, other corporate services such as corporate governance, cash management and other treasury services, administrative services such as government relations, tax, internal audit, legal, accounting, human resources and equity-based compensation plan administration, lease of office space, aviation services and insurance coverage. WRECO was allocated a portion of Weyerhaeuser corporate general and administrative costs on either a proportional cost or usage basis.
Weyerhaeuser-allocated corporate general and administrative expenses were as follows (in thousands):
 
Year Ended December 31,
 
2016
 
2015
 
2014
Weyerhaeuser-allocated costs
$
—

 
$
—

 
$
10,735


 
These expenses may not be indicative of the actual level of expense WRECO would have incurred if it had operated as an independent company or of expenses expected to be incurred in the future after the Closing Date.
During the year ended December 31, 2014 and prior to the Merger, WRECO sold $4.8 million of mineral rights and $21.2 million of land to Weyerhaeuser.
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 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, 2016 and 2015, we had an income tax liability to Weyerhaeuser of $8.6 million and $8.9 million, respectively, which is recorded in accrued expenses and other liabilities on the accompanying balance sheet.
In May of 2016, TRI Pointe entered into an agreement with an affiliate of Starwood Capital Group, a greater than 5% holder of our common stock, to acquire 52 lots located in Azusa, California, for a purchase price of $18.4 million. In October of 2016 we acquired 27 of these lots for a purchase price of $9.6 million. TRI Pointe's Chairman of the Board is also the Chairman and Chief Executive Officer of Starwood Capital Group. This acquisition was approved by the TRI Pointe independent directors.
In June of 2014, TRI Pointe acquired 46 lots located in Castle Rock, Colorado, for a purchase price of approximately $2.7 million from an entity managed by an affiliate of Starwood Capital Group. In January of 2015, TRI Pointe acquired an additional 46 lots located in Castle Rock, Colorado, for a purchase price of approximately $2.8 million. In August of 2016, TRI Pointe entered into an agreement to purchase an additional 257 lots located in Castle Rock, Colorado, for a purchase price of approximately $8.6 million from the same entity managed by an affiliate of Starwood Capital Group. In October of 2016, 126 of these lots were acquired for a purchase price of $4.2 million. These acquisitions were approved by the TRI Pointe independent directors.
In October of 2015, TRI Pointe entered into an agreement with an affiliate of BlackRock, Inc. to acquire 161 lots located in Dublin, California, for a purchase price of approximately $60.0 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
Supplemental Disclosure to Consolidated Statement of Cash Flow
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,
 
2016
 
2015
 
2014
Supplemental disclosure of cash flow information:
 

 
 

 
 
Cash paid during the period for:
 

 
 

 
 
Interest, net of amounts capitalized of $53,028, $60,964 and $38,975
$
—

 
$
—

 
$
1,372

Income taxes
$
117,215

 
$
69,917

 
$
43,005

Supplemental disclosures of noncash activities:
 

 
 

 
 

Increase in real estate inventory due to distribution of land
   from an unconsolidated joint venture
$
—

 
$
—

 
$
5,052

Distribution to Weyerhaeuser of excluded assets and liabilities
$
—

 
$
—

 
$
126,687

Amounts owed to Weyerhaeuser related to the tax sharing
   agreement
$
—

 
$
—

 
$
15,688

Noncash settlement of debt payable to Weyerhaeuser
$
—

 
$
—

 
$
70,082

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
$
1,815

 
$
1,552

 
$
804

Amortization of deferred loan costs capitalized to real estate
   inventory
$
4,642

 
$
3,820

 
$
—

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

 
 

 
 

(Decrease) increase in consolidated real estate inventory
   not owned
$
(316
)
 
$
5,297

 
$
6,343

Increase in deposits on real estate under option or
   contract and other assets
$
—

 
$
—

 
$
780

Increase in accrued expenses and other liabilities
$
—

 
$
300

 
$
—

Increase (decrease) in noncontrolling interests
$
316

 
$
(5,597
)
 
$
(7,123
)
Merger:
 

 
 

 
 

Fair value of assets, excluding cash acquired
$
—

 
$
—

 
$
724,995

Liabilities assumed
$
—

 
$
—

 
$
(276,347
)
Supplemental Guarantor Information
Supplemental Guarantor Information
Supplemental Guarantor Information
2021 Notes
On May 26, 2016, TRI Pointe Group issued the 2021 Notes. All of TRI Pointe Group’s 100% owned subsidiaries that are guarantors (each a “Guarantor” and, collectively, the “Guarantors”) of the Company’s Credit Facility, including TRI Pointe Homes and certain other of its 100% owned subsidiaries, are party to a supplemental indenture pursuant to which they jointly and severally guarantee TRI Pointe Group’s obligations with respect to the 2021 Notes. Each Guarantor of the 2021 Notes is 100% owned by TRI Pointe Group, and all guarantees are full and unconditional, subject to customary exceptions pursuant to the indentures governing the 2021 Notes, as described in the following paragraph. All of our non-Guarantor subsidiaries have nominal assets and operations and are considered minor, as defined in Rule 3-10(h) of Regulation S-X. In addition, TRI Pointe Group has no independent assets or operations, as defined in Rule 3-10(h) of Regulation S-X. There are no significant restrictions upon the ability of TRI Pointe Group or any Guarantor to obtain funds from any of their respective wholly owned subsidiaries by dividend or loan. None of the assets of our subsidiaries represent restricted net assets pursuant to Rule 4-08(e)(3) of Regulation S-X.
A Guarantor of the 2021 Notes shall be released from all of its obligations under its guarantee if (i) all of the assets of the Guarantor have been sold; (ii) all of the equity interests of the Guarantor held by TRI Pointe Group or a subsidiary thereof have been sold; (iii) the Guarantor merges with and into TRI Pointe Group or another Guarantor, with TRI Pointe Group or such other Guarantor surviving the merger; (iv) the Guarantor is designated “unrestricted” for covenant purposes; (v) the Guarantor ceases to guarantee any indebtedness of TRI Pointe Group or any other Guarantor which gave rise to such Guarantor guaranteeing the 2021 Notes; (vi) TRI Pointe Group exercises its legal defeasance or covenant defeasance options; or (vii) all obligations under the applicable supplemental indenture are discharged.
2019 Notes and 2024 Notes
TRI Pointe Group and TRI Pointe Homes are co-issuers of the 2019 Notes and the 2024 Notes. All of the Guarantors (other than TRI Pointe Homes) have entered into supplemental indentures pursuant to which they jointly and severally guarantee the obligations of TRI Pointe Group and TRI Pointe Homes with respect to the 2019 Notes and the 2024 Notes. Each Guarantor of the 2019 Notes and the 2024 Notes is 100% owned by TRI Pointe Group and TRI Pointe Homes, and all guarantees are full and unconditional, subject to customary exceptions pursuant to the indentures governing the 2019 Notes and the 2024 Notes, as described below.
A Guarantor of the 2019 Notes and the 2024 Notes shall be released from all of its obligations under its guarantee if (i) all of the assets of the Guarantor have been sold; (ii) all of the equity interests of the Guarantor held by TRI Pointe or a subsidiary thereof have been sold; (iii) the Guarantor merges with and into TRI Pointe or another Guarantor, with TRI Pointe or such other Guarantor surviving the merger; (iv) the Guarantor is designated “unrestricted” for covenant purposes; (v) the Guarantor ceases to guarantee any indebtedness of TRI Pointe or any other Guarantor which gave rise to such Guarantor guaranteeing the 2019 Notes and 2024 Notes; (vi) TRI Pointe exercises its legal defeasance or covenant defeasance options; or (vii) all obligations under the applicable indenture are discharged.
Presented below are the condensed consolidating balance sheets at December 31, 2016 and December 31, 2015, condensed consolidating statements of operations for the full years ended December 31, 2016, 2015 and 2014, and condensed consolidating statements of cash flows for the full years ended December 31, 2016, 2015 and 2014.  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, 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 20, Supplemental Guarantor Information have the following meanings:
a.
for periods prior to July 7, 2015: TRI Pointe Homes only
b.
for periods from and after July 7, 2015:  TRI Pointe Homes and TRI Pointe Group as co-issuers


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

 
$
66,714

 
$
—

 
$
214,485

Receivables
17,358

 
26,352

 
—

 
43,710

Intercompany receivables
783,956

 
—

 
(783,956
)
 
—

Real estate inventories
657,221

 
1,862,052

 
—

 
2,519,273

Investments in unconsolidated entities
—

 
18,999

 
—

 
18,999

Goodwill and other intangible assets, net
156,604

 
5,425

 
—

 
162,029

Investments in subsidiaries
1,093,261

 
—

 
(1,093,261
)
 
—

Deferred tax assets, net
19,061

 
111,596

 
—

 
130,657

Other assets
12,219

 
36,699

 
—

 
48,918

Total Assets
$
2,887,451

 
$
2,127,837

 
$
(1,877,217
)
 
$
3,138,071

 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
Accounts payable
$
20,444

 
$
44,396

 
$
—

 
$
64,840

Intercompany payables
—

 
783,956

 
(783,956
)
 
—

Accrued expenses and other liabilities
32,219

 
184,044

 
—

 
216,263

Unsecured revolving credit facility
299,392

 
—

 
—

 
299,392

Seller financed loans
2,034

 
400

 
—

 
2,434

Senior notes, net
868,679

 
—

 
—

 
868,679

Total Liabilities
1,222,768

 
1,012,796

 
(783,956
)
 
1,451,608

Equity
 
 
 
 
 
 
 
Total stockholders’ equity
1,664,683

 
1,093,261

 
(1,093,261
)
 
1,664,683

Noncontrolling interests
—

 
21,780

 
—

 
21,780

Total Equity
1,664,683

 
1,115,041

 
(1,093,261
)
 
1,686,463

Total Liabilities and Equity
$
2,887,451

 
$
2,127,837

 
$
(1,877,217
)
 
$
3,138,071

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



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

 
64,143

 
—

 
123,470

Restructuring charges
—

 
649

 
—

 
649

Homebuilding income from operations
27,451

 
268,508

 
—

 
295,959

Equity in loss of unconsolidated entities
—

 
179

 
—

 
179

Other income, net
149

 
163

 
—

 
312

Homebuilding income from continuing operations
   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 from continuing operations before taxes
—

 
5,777

 
—

 
5,777

Income from continuing operations 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 20, Supplemental Guarantor Information have the following meanings:
a.
for periods prior to July 7, 2015: TRI Pointe Homes only
b.
for periods from and after July 7, 2015:  TRI Pointe Homes and TRI Pointe Group as co-issuers

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
55,611

 
61,885

 
—

 
117,496

Restructuring charges
(169
)
 
3,498

 
—

 
3,329

Homebuilding income from operations
66,980

 
247,902

 
—

 
314,882

Equity in loss of unconsolidated entities
—

 
1,460

 
—

 
1,460

Other (loss) income, net
(127
)
 
985

 
—

 
858

Homebuilding income from continuing operations
   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 from continuing operations before taxes
—

 
2,060

 
—

 
2,060

Income from continuing operations 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 20, Supplemental Guarantor Information have the following meanings:
a.
for periods prior to July 7, 2015: TRI Pointe Homes only
b.
for periods from and after July 7, 2015:  TRI Pointe Homes and TRI Pointe Group as co-issuers
Condensed Consolidating Statement of Operations (in thousands):

 
Year Ended December 31, 2014
 
Issuer (1)
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Homes, Inc.
Homebuilding:
 
 
 
 
 
 
 
Home sales revenue
$
324,219

 
$
1,322,055

 
$
—

 
$
1,646,274

Land and lot sales revenue
—

 
47,660

 
—

 
47,660

Other operations revenue
(12
)
 
9,694

 
—

 
9,682

Total revenues
324,207

 
1,379,409

 
—

 
1,703,616

Cost of home sales
271,579

 
1,047,038

 
—

 
1,318,617

Cost of land and lot sales
—

 
37,906

 
—

 
37,906

Other operations expense
—

 
3,346

 
—

 
3,346

Sales and marketing
9,678

 
93,922

 
—

 
103,600

General and administrative
16,532

 
65,826

 
—

 
82,358

Restructuring charges
—

 
10,543

 
—

 
10,543

Homebuilding income from operations
26,418

 
120,828

 
—

 
147,246

Equity in loss of unconsolidated entities
—

 
(278
)
 
—

 
(278
)
Transaction expenses
(7,138
)
 
(10,822
)
 
—

 
(17,960
)
Other income (loss), net
17

 
(1,036
)
 
—

 
(1,019
)
Homebuilding income from continuing operations
   before taxes
19,297

 
108,692

 
—

 
127,989

Financial Services:
 
 
 
 
 
 
 
Revenues
—

 
—

 
—

 
—

Expenses
—

 
15

 
—

 
15

Equity in loss of unconsolidated entities
—

 
(10
)
 
—

 
(10
)
Financial services loss from continuing operations before taxes
—

 
(25
)
 
—

 
(25
)
Income from continuing operations before taxes
19,297

 
108,667

 
—

 
127,964

Provision for income taxes
(11,586
)
 
(32,181
)
 
—

 
(43,767
)
Equity of net income (loss) of subsidiaries
76,486

 
—

 
(76,486
)
 
—

Net income (loss) available to common stockholders
$
84,197

 
$
76,486

 
$
(76,486
)
 
$
84,197

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

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















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 year
105,888

 
64,741

 
—

 
170,629

Cash and cash equivalents - end of year
$
147,771

 
$
66,714

 
$
—

 
$
214,485

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


Condensed Consolidating Statement of Cash Flows (in thousands):
 
 
Year Ended December 31, 2014
 
Issuer (1)
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Homes, Inc.
Cash flows from operating activities
 
 
 
 
 
 
 
Net cash used in operating activities
$
(62,715
)
 
$
(50,655
)
 
$
—

 
$
(113,370
)
Cash flows from investing activities:
 
 
 
 
 
 
 
Purchases of property and equipment
(2,293
)
 
(5,557
)
 
—

 
(7,850
)
Cash acquired in the Merger
53,800

 
—

 
—

 
53,800

Proceeds from sale of property and equipment
—

 
23

 
—

 
23

Investments in unconsolidated entities
—

 
(1,311
)
 
—

 
(1,311
)
Intercompany
69,971

 
—

 
(69,971
)
 
—

Net cash provided by (used in) investing activities
121,478

 
(6,845
)
 
(69,971
)
 
44,662

Cash flows from financing activities:
 
 
 
 
 
 
 
Borrowings from debt
100,000

 
887,298

 
—

 
987,298

Repayment of debt
(53,051
)
 
—

 
—

 
(53,051
)
Debt issuance costs
—

 
(23,000
)
 
—

 
(23,000
)
Bridge commitment fee
—

 
(10,322
)
 
—

 
(10,322
)
Changes in debt payable to Weyerhaeuser
—

 
(623,589
)
 
—

 
(623,589
)
Change in book overdrafts
—

 
(22,491
)
 
—

 
(22,491
)
Distributions to Weyerhaeuser
—

 
(8,606
)
 
—

 
(8,606
)
Net proceeds of debt held by variable interest entities
—

 
3,903

 
—

 
3,903

Contributions from noncontrolling interests
—

 
1,895

 
—

 
1,895

Distributions to noncontrolling interests
—

 
(19,143
)
 
—

 
(19,143
)
Proceeds from issuance of common stock under
   share-based awards
176

 
—

 
—

 
176

Excess tax benefits of share-based awards
—

 
1,757

 
—

 
1,757

Intercompany
—

 
(69,971
)
 
69,971

 
—

Net cash provided by financing activities
47,125

 
117,731

 
69,971

 
234,827

Net increase in cash and cash equivalents
105,888

 
60,231

 
—

 
166,119

Cash and cash equivalents - beginning of year
—

 
4,510

 
—

 
4,510

Cash and cash equivalents - end of year
$
105,888

 
$
64,741

 
$
—

 
$
170,629

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

 
First
 
Second
 
Third
 
Fourth
2015
Quarter
 
Quarter
 
Quarter
 
Quarter
Total revenues(1)
$
377,258

 
$
495,517

 
$
648,141

 
$
880,243

Cost of homes sales and other(2)
302,777

 
353,878

 
511,564

 
680,006

Gross margin
$
74,481

 
$
141,639

 
$
136,577

 
$
200,237

Net income
$
15,297

 
$
56,762

 
$
49,769

 
$
85,353

Net (income) loss attributable to noncontrolling interests
—

 
(1,832
)
 
393

 
(281
)
Net income available to common stockholders
$
15,297

 
$
54,930

 
$
50,162

 
$
85,072

 
 
 
 
 
 
 
 
Earnings per share
 
 
 
 
 
 
 
Basic
$
0.09

 
$
0.34

 
$
0.31

 
$
0.53

Diluted
$
0.09

 
$
0.34

 
$
0.31

 
$
0.52


 __________
(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’ existing 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, 2016 and 2015 represent the outside owners’ interests in the Company’s consolidated entities and the net equity of the VIE owners.  All significant intercompany accounts have been eliminated upon consolidation.
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)
Reverse Acquisition 
Reverse Acquisition
On July 7, 2014 (the “Closing Date”), TRI Pointe Homes consummated the previously announced merger (the “Merger”) of our wholly owned subsidiary, Topaz Acquisition, Inc. (“Merger Sub”), with and into Weyerhaeuser Real Estate Company (“WRECO”), with WRECO surviving the Merger and becoming our wholly owned subsidiary, as contemplated by the Transaction Agreement, dated as of November 3, 2013 (the “Transaction Agreement”), by and among the Company, Weyerhaeuser Company (“Weyerhaeuser”), WRECO and Merger Sub. The Merger is accounted for in accordance with ASC Topic 805, Business Combinations (“ASC 805”). For accounting purposes, the Merger was treated as a “reverse acquisition” and WRECO was considered the accounting acquirer. Accordingly, WRECO is reflected as the predecessor and acquirer and therefore the accompanying consolidated financial statements reflect the historical consolidated financial statements of WRECO, and do not include the historical financial statements of TRI Pointe, for all periods presented prior to the Closing Date. Subsequent to the Closing Date, the consolidated financial statements reflect the results of the combined company.
Reclassifications 
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 impairments and land and lot option abandonments, included in cost of home sales and cost of land and lot sales on the consolidated statements of operations in this annual report on Form 10-K.
Use of Estimates 
Use of Estimates
Our financial statements have been prepared in accordance with GAAP. The preparation of these financial statements requires our management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from our estimates.
Cash and Cash Equivalents and Concentration of Credit Risk 
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 an initial maturity date of less than three months. 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 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, 2016 we had no real estate inventory impairment charges. For the years ended December 31, 2015 and 2014 we recorded impairment charges of $1.2 million and $931,000, respectively.  
Revenue Recognition 
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 
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 
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 income (loss) of unconsolidated entities in the accompanying consolidated statement of operations. We evaluate our investments in unconsolidated entities for impairment when events and circumstances indicate that the carrying value of the investment may not be recoverable.
Variable Interest 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 
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 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
Restructuring charges are incurred related to the Merger in addition to general cost reduction initiatives.   These charges are comprised 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 
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.
We classify any interest and penalties related to income taxes as part of income tax expense. 
Goodwill and Other Intangible Assets 
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, 2016. For further details on goodwill, see Note 2, Merger with Weyerhaeuser Real Estate Company.
For our TRI Pointe Homes reporting unit, we performed a quantitative 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 2016 annual impairment assessment, we determined that no goodwill impairment was indicated. As of December 31, 2016, 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, 2016, 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 2, Merger with Weyerhaeuser Real Estate Company.
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, 2016, 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 10, 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 
Recently Issued Accounting Standards
In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: identify the contract(s) with a customer; identify the performance obligations in the contract; determine the transaction price; allocate the transaction price to the performance obligations in the contract; and recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 supersedes the revenue-recognition requirements in ASC Topic 605, Revenue Recognition, most industry-specific guidance throughout the industry topics of the accounting standards codification, and some cost guidance related to construction-type and production-type contracts. On July 9, 2015, the FASB voted to defer the effective date of ASU No. 2014-09 by one year and it is now effective for public entities for the annual periods ending after December 15, 2017, and for annual and interim periods thereafter.  Companies may use either a full retrospective or a modified retrospective approach to adopt ASU 2014-09, and we expect to adopt the new standard under the modified retrospective approach. We are still evaluating the accounting for marketing costs, there is a possibility that the adoption of ASU 2014-09 will impact the timing of recognition and classification in our consolidated financial statements of certain marketing costs we incur to obtain sales contracts from our customers. For example, there are various marketing costs that we currently capitalize and amortize with each home delivered in a community. Under the new guidance, these costs may need to be expensed immediately. Although we are still in the process of evaluating our contracts, we do not believe the adoption of ASU 2014-09 will have a material impact on the amount or timing of our home sales revenue, but could impact the amount and timing of land and lot sales. We are continuing to evaluate the exact impact the new standard will have on recording revenue and our marketing costs in our consolidated financial statements and related disclosures.
In August 2014, the FASB issued Accounting Standards Update No. 2014-15 (“ASU 2014-15”), Presentation of Financial Statements — Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which requires management to evaluate, in connection with preparing financial statements for each annual and interim reporting period, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable) and provide related disclosures. We adopted ASU 2014-15 on December 31, 2016, and the adoption had no impact on our current or prior year financial statements.
In February 2015, the FASB issued Accounting Standards Update No. 2015-02, (“ASU 2015-02”), Consolidation (Topic 810): Amendments to the Consolidation Analysis.   ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. ASU 2015-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015.  We adopted ASU 2015-02 on January 1, 2016 and the adoption had no impact on our current or prior year financial statements.
In November 2015, the FASB issued Accounting Standards Update No. 2015-17, (“ASU 2015-17”), Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, which requires deferred tax liabilities and assets be classified as noncurrent in a classified statement of position.  ASU 2015-17 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016.  The adoption of ASU 2015-17 is not expected to have a material effect on our consolidated financial statements due to our presentation of an unclassified balance sheet.
In February 2016, the FASB issued Accounting Standards Update No. 2016-02, (“ASU 2016-02”), Leases (Topic 842): Leases, which requires an entity to recognize assets and liabilities on the balance sheet for the rights and obligations created by leased assets and provide additional disclosures. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and, at that time, we will adopt the new standard using a modified retrospective approach. We are currently evaluating the impact that the adoption of ASU 2016-02 may have on our consolidated financial statements and disclosures.
In March 2016, the FASB issued Accounting Standards Update No. 2016-09, (“ASU 2016-09”), Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows.  ASU 2016-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. We are currently evaluating the impact that the adoption of ASU 2016-09 may have on our consolidated financial statements and disclosures, however we do not believe the guidance will have a material impact on our financial statements upon adoption.
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 
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
Merger with Weyerhaeuser Real Estate Company (Tables)
Summary of Calculation of Fair Value of Total Consideration Transferred and Provisional Amounts Recognized 
The following table summarizes the calculation of the fair value of the total consideration transferred and the provisional amounts recognized as of the Closing Date (in thousands, except shares and closing stock price):
 
Calculation of consideration transferred
 
TRI Pointe shares outstanding
31,632,533

TRI Pointe closing stock price on July 7, 2014
$
15.85

Consideration attributable to common stock
$
501,376

Consideration attributable to TRI Pointe share-based equity awards
1,072

Total consideration transferred
$
502,448

Assets acquired and liabilities assumed
 

Cash and cash equivalents
$
53,800

Accounts receivable
654

Real estate inventories
539,677

Intangible asset
17,300

Goodwill
139,304

Other assets
28,060

Total assets acquired
778,795

Accounts payable
(26,105
)
Accrued expenses and other liabilities
(23,114
)
Notes payable and other borrowings
(227,128
)
Total liabilities assumed
(276,347
)
Total net assets acquired
$
502,448

Summary of Pro Forma Operating Results 
The following represents unaudited pro forma operating results as if the acquisition had been completed as of January 1, 2014 (in thousands, except per share amounts):
 
 
Year Ended
 
December 31, 2014
Total revenues
$
1,865,723

Net income
$
88,416

Earnings per share – basic
$
0.55

Earnings per share – diluted
$
0.55

Restructuring Charges (Tables)
Schedule of Restructuring Costs 
Restructuring costs were comprised of the following (in thousands):
 
Year Ended December 31,
 
2016
 
2015
 
2014
Employee-related costs
$
99

 
$
1,546

 
$
9,211

Lease termination costs
550

 
1,783

 
1,332

Total
$
649

 
$
3,329

 
$
10,543

Schedule of Changes in Restructuring Reserves 
Changes in employee-related restructuring reserves were as follows (in thousands):
 
Year Ended December 31,
 
2016
 
2015
 
2014
Accrued employee-related costs, beginning of period
$
220

 
$
3,844

 
$
4,336

Current year charges
99

 
1,546

 
8,264

Payments
(250
)
 
(5,170
)
 
(8,756
)
Accrued employee-related costs, end of period
$
69

 
$
220

 
$
3,844

Schedule of Changes in Restructuring Reserves 
Changes in lease termination related restructuring reserves were as follows (in thousands):
 
Year Ended December 31,
 
2016
 
2015
 
2014
Accrued lease termination costs, beginning of period
$
767

 
$
1,394

 
$
3,506

Current year charges
550

 
1,783

 
1,332

Payments
(1,236
)
 
(2,410
)
 
(3,444
)
Accrued lease termination costs, end of period
$
81

 
$
767

 
$
1,394

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):
 
 
2016
 
2015
 
2014
Revenues
 
 
 
 
 
Maracay Homes
$
255,253

 
$
185,645

 
$
150,689

Pardee Homes
730,848

 
670,063

 
525,381

Quadrant Homes
213,221

 
189,401

 
145,377

Trendmaker Homes
244,001

 
278,759

 
281,270

TRI Pointe Homes
723,186

 
774,005

 
324,208

Winchester Homes
237,413

 
302,276

 
276,691

Total homebuilding revenues
2,403,922

 
2,400,149

 
1,703,616

Financial services
1,220

 
1,010

 
—

Total
$
2,405,142

 
$
2,401,159

 
$
1,703,616

Income before taxes
 

 
 

 
 

Maracay Homes
$
17,189

 
$
9,849

 
$
10,845

Pardee Homes
204,237

 
183,077

 
74,898

Quadrant Homes
21,209

 
10,478

 
9,028

Trendmaker Homes
15,353

 
25,004

 
31,684

TRI Pointe Homes
62,013

 
104,970

 
19,272

Winchester Homes
16,147

 
22,411

 
24,612

Corporate (1)
(39,698
)
 
(38,589
)
 
(42,350
)
Total homebuilding income before income taxes
296,450

 
317,200

 
127,989

Financial services
5,777

 
2,060

 
(25
)
Total
$
302,227

 
$
319,260

 
$
127,964

 
(1) 
Includes $18.0 million of Merger related transaction costs and $5.5 million of restructuring charges for the year ended December 31, 2014.  No similar costs were incurred for the years ended December 31, 2016 or 2015, respectively.

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, 2016
 
December 31, 2015
Real estate inventories
 

 
 

Maracay Homes
$
228,965

 
$
206,912

Pardee Homes
1,098,608

 
1,011,982

Quadrant Homes
221,386

 
190,038

Trendmaker Homes
211,035

 
199,398

TRI Pointe Homes
868,088

 
659,130

Winchester Homes
282,545

 
251,813

Total
$
2,910,627

 
$
2,519,273

Total assets
 

 
 

Maracay Homes
$
255,466

 
$
227,857

Pardee Homes
1,201,302

 
1,089,586

Quadrant Homes
242,208

 
202,024

Trendmaker Homes
225,025

 
213,562

TRI Pointe Homes
1,052,400

 
832,423

Winchester Homes
305,379

 
278,374

Corporate
275,923

 
292,169

Total homebuilding assets
3,557,703

 
3,135,995

Financial services
6,937

 
2,076

Total
$
3,564,640

 
$
3,138,071

Earnings Per Share (Tables)
Computation of Basic and Diluted Earnings Per Share
The following table sets forth the components used in the computation of basic and diluted earnings per share (in thousands, except share and per share amounts):
 
 
Year Ended December 31,
 
2016
 
2015
 
2014
Numerator:
 

 
 

 
 

Income available to common stockholders
$
195,171

 
$
205,461

 
$
84,197

Denominator:
 

 
 

 
 

Basic weighted-average shares outstanding
160,859,782

 
161,692,152

 
145,044,351

Effect of dilutive shares:
 
 
 
 
 
Stock options and unvested restricted stock units
521,717

 
627,606

 
486,938

Diluted weighted-average shares outstanding
161,381,499

 
162,319,758

 
145,531,289

Earnings per share
 

 
 

 
 

Basic
$
1.21

 
$
1.27

 
$
0.58

Diluted
$
1.21

 
$
1.27

 
$
0.58

Antidilutive stock options not included in diluted earnings per share
4,551,337

 
2,622,391

 
1,295,280

Receivables, net (Tables)
Components of Receivables, Net
Receivables, net consisted of the following (in thousands):
 
December 31, 2016
 
December 31, 2015
Escrow proceeds and other accounts receivable, net
$
35,625

 
$
32,917

Warranty insurance receivable(1) (Note 15)
46,875

 
10,493

Notes and contracts receivable
—

 
300

Total receivables
$
82,500

 
$
43,710


 __________
(1) 
This amount includes approximately $38.0 million reclassified in 2016, which represents the estimated recoveries related to our insurance policies that during 2015 had been offset against our insurance liabilities and recoveries. For further discussion see Note 15 – Commitments and Contingencies.

Real Estate Inventories (Tables)
Summary of Real Estate Inventories 
Real estate inventories consisted of the following (in thousands):
 
December 31, 2016
 
December 31, 2015
Real estate inventories owned:
 

 
 

Homes completed or under construction
$
659,210

 
$
575,076

Land under development
1,824,989

 
1,443,461

Land held for future development
226,915

 
295,241

Model homes
155,039

 
140,232

Total real estate inventories owned
2,866,153

 
2,454,010

Real estate inventories not owned:
 

 
 

Land purchase and land option deposits
26,174

 
39,055

Consolidated inventory held by VIEs
18,300

 
26,208

Total real estate inventories not owned
44,474

 
65,263

Total real estate inventories
$
2,910,627

 
$
2,519,273

Summary of Interest Incurred, Capitalized and Expensed 
Interest incurred, capitalized and expensed were as follows (in thousands):
 
Year Ended December 31,
 
2016
 
2015
 
2014
Interest incurred
$
68,306

 
$
60,964

 
$
41,706

Interest capitalized
(68,306
)
 
(60,964
)
 
(38,975
)
Interest expensed
$
—

 
$
—

 
$
2,731

Capitalized interest in beginning inventory
$
140,311

 
$
124,461

 
$
138,233

Interest capitalized as a cost of inventory
68,306

 
60,964

 
38,975

Interest previously capitalized as a cost of inventory, included in
   cost of sales
(51,288
)
 
(45,114
)
 
(52,747
)
Capitalized interest in ending inventory
$
157,329

 
$
140,311

 
$
124,461

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,
 
2016
 
2015
 
2014
Real estate inventory impairments
$
—

 
$
1,167

 
$
931

Land and lot option abandonments and pre-acquisition costs
1,470

 
763

 
1,584

Total
$
1,470

 
$
1,930

 
$
2,515

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,
 
2016
 
2015
Limited liability company interests
$
14,327

 
$
15,739

General partnership interests
3,219

 
3,260

Total
$
17,546

 
$
18,999

Aggregated Assets, Liabilities and Operating Results of Entities as Equity-Method Investments 
Assets and liabilities of unconsolidated entities (in thousands):
 
December 31,
 
2016
 
2015
Assets
 
 
 
Cash
$
9,796

 
$
18,641

Receivables
10,203

 
13,108

Real estate inventories
97,402

 
92,881

Other assets
1,087

 
1,180

Total assets
$
118,488

 
$
125,810

Liabilities and equity
 
 
 
Accounts payable and other liabilities
$
12,844

 
$
14,443

Company’s equity
17,546

 
18,999

Outside interests' equity
88,098

 
92,368

Total liabilities and equity
$
118,488

 
$
125,810


Results of operations from unconsolidated entities (in thousands):
 
 
Year Ended December 31,
 
2016
 
2015
 
2014
Net sales
$
18,725

 
$
7,326

 
$
606

Other operating expense
(11,315
)
 
(6,690
)
 
(4,290
)
Other income (expense)
4

 
(279
)
 
(2
)
Net income (loss)
$
7,414

 
$
357

 
$
(3,686
)
Company’s equity in income (loss) of unconsolidated entities
$
4,989

 
$
2,691

 
$
(288
)
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, 2016
 
December 31, 2015
 
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

 
$
3,003

 
$
23,239

 
$
26,208

Unconsolidated VIEs
2,375

 
49,016

 
N/A

 
11,615

 
74,590

 
N/A

Other land option agreements
23,799

 
246,658

 
N/A

 
27,440

 
279,612

 
N/A

Total
$
26,574

 
$
313,574

 
$
18,300

 
$
42,058

 
$
377,441

 
$
26,208

Goodwill and Other Intangible Assets (Tables)
Schedule of Goodwill and Other Intangible Assets 
Goodwill and other intangible assets consisted of the following (in thousands):
 
December 31, 2016
 
December 31, 2015
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
Goodwill
$
139,304

 
$
—

 
$
139,304

 
$
139,304

 
$
—

 
$
139,304

Trade names
27,979

 
(5,788
)
 
22,191

 
27,979

 
(5,254
)
 
22,725

Total
$
167,283

 
$
(5,788
)
 
$
161,495

 
$
167,283

 
$
(5,254
)
 
$
162,029

Schedule of Expected Amortization of Intangible Asset 
Expected amortization of our intangible asset related to Maracay Homes for the next five years and thereafter is (in thousands):
2017
$
534

2018
534

2019
534

2020
534

2021
534

Thereafter
2,221

Total
$
4,891

Other Assets (Tables)
Schedule of Other Assets
Other assets consisted of the following (in thousands):
 
December 31, 2016
 
December 31, 2015
Prepaid expenses
$
24,495

 
$
14,523

Refundable fees and other deposits
17,731

 
17,056

Development rights, held for future use or sale
2,569

 
4,360

Deferred loan costs
2,101

 
2,179

Operating properties and equipment, net
10,884

 
7,643

Other
2,812

 
3,157

Total
$
60,592

 
$
48,918

Accrued Expenses and Other Liabilities (Tables)
Schedule Of Accrued Expenses And Other Liabilities
Accrued expenses and other liabilities consisted of the following (in thousands):
 
December 31, 2016
 
December 31, 2015
Accrued payroll and related costs
$
33,761

 
$
28,264

Warranty reserves(1) (Note 15)
83,135

 
45,948

Estimated cost for completion of real estate inventories
59,531

 
52,818

Customer deposits
13,437

 
12,132

Debt (nonrecourse) held by VIEs
—

 
2,442

Income tax liability to Weyerhaeuser
8,589

 
8,900

Accrued income taxes payable
1,200

 
19,279

Liability for uncertain tax positions
—

 
307

Accrued interest
11,570

 
2,417

Accrued insurance expense
529

 
1,402

Other tax liabilities
34,961

 
21,764

Other
17,132

 
20,590

Total
$
263,845

 
$
216,263


__________
(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 the current year, approximately $36.5 million related to prior year estimated warranty insurance recoveries. For further details, see Note 6, Receivables, Net and Note 15, Commitments and Contingencies.
Senior Notes and Notes Payable and Other Borrowings (Tables)
Schedule of Senior Notes 
Senior notes consisted of the following (in thousands): 
 
December 31,
2016
 
December 31,
2015
4.375% Senior Notes due June 15, 2019
$
450,000

 
$
450,000

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

 
—

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

 
450,000

Discount and deferred loan costs
(31,693
)
 
(31,321
)
Total
$
1,168,307

 
$
868,679

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

 
$
299,392

Components of Seller Financed Loans 
Seller financed loans consisted of the following (in thousands):
 
December 31, 2016
 
December 31, 2015
Seller financed loans
$
13,726

 
$
2,434

Fair Value Disclosures (Tables)
Summary of Assets and Liabilities Related to Financial Instruments, Measured at Fair Value on a Recurring Basis 
A summary of assets and liabilities at December 31, 2016 and 2015, related to our financial instruments, measured at fair value on a recurring basis, is set forth below (in thousands):
 
 
 
December 31, 2016
 
December 31, 2015
 
Hierarchy
 
Book Value
 
Fair Value
 
Book Value
 
Fair Value
Senior Notes (1)
Level 2
 
$
1,189,180

 
$
1,219,125

 
$
889,054

 
$
881,460

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

 
$
177,410

 
$
299,392

 
$
299,392

Seller financed loans (3)
Level 2
 
$
13,726

 
$
13,189

 
$
2,434

 
$
2,368

   __________
(1) 
The book value of the Senior Notes is net of discounts, excluding deferred loan costs of $20.9 million and $20.4 million as of December 31, 2016 and 2015, respectively. The estimated fair value of our Senior Notes at December 31, 2016 and 2015 is based on quoted market prices.
(2) 
The estimated fair value of the Credit Facility at December 31, 2016 is based on a treasury curve analysis. We believe that the carrying value of the Credit Facility approximated fair value at December 31, 2015.
(3) 
The estimated fair value of the seller financed loans at December 31, 2016 and 2015 is based on a treasury curve analysis.
Summary of Nonfinancial Assets Measured at Fair Value on a Nonrecurring Basis 
The following table presents impairment charges and the remaining net fair value for nonfinancial assets that were measured during the periods presented (in thousands):
 
Year Ended December 31, 2016
 
Year Ended December 31, 2015
 
Impairment
Charge
 
Fair Value
Net of
Impairment
 
Impairment
Charge
 
Fair Value
Net of
Impairment
Real estate inventories (1)
$
—

 
$
—

 
$
1,167

 
$
28,540

 
(1) 
Fair value of real estate inventories, net of impairment charges represents only those assets whose carrying values were adjusted to fair value in the respective periods presented.  The fair value of these real estate inventories impaired was determined based on recent offers received from outside third parties or actual contracts.

Commitments and Contingencies (Tables)
Schedule of Warranty Reserves 
Warranty reserves consisted of the following (in thousands):
 
Year Ended December 31,
 
2016
 
2015
 
2014
Warranty reserves, beginning of period
$
45,948

 
$
33,270

 
$
24,449

Warranty reserves accrued
12,712

 
16,557

 
11,659

Liabilities assumed in the Merger
—

 
—

 
7,481

Adjustments to pre-existing reserves(1)
36,826

 
7,451

 
199

Warranty expenditures
(12,351
)
 
(11,330
)
 
(10,518
)
Warranty reserves, end of period
$
83,135

 
$
45,948

 
$
33,270


  __________
(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 the current year, approximately $36.5 million related to prior year estimated warranty insurance recoveries. For further details, see Note 6, Receivables, Net and Note 12, Accrued Expenses and Other Liabilities.
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):
 
2017
$
6,875

2018
5,611

2019
5,316

2020
5,223

2021
4,655

Thereafter
5,027

 
$
32,707

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):
 
2017
$
2,239

2018
2,239

2019
2,239

2020
2,239

2021
2,239

Thereafter
74,992

 
$
86,187

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,
 
2016
 
2015
 
2014
Total stock-based compensation
$
12,612

 
$
11,935

 
$
7,679

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

 
$
13.12

 
5.2

 
$
3,081

Granted
—

 
—

 
—

 
—

Exercised
(96,572
)
 
9.47

 
 
 
 
Forfeited
(152,205
)
 
12.39

 
 
 
 
Options outstanding at December 31, 2016
2,971,370

 
$
13.12

 
4.4

 
$
1,568

Options exercisable at December 31, 2016
2,599,661

 
$
13.08

 
4.0

 
$
1,568

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

 
$
12.21

 
$
24,808

Granted
1,904,389

 
8.41

 
21,862

Vested
(431,761
)
 
14.53

 
 
Forfeited
(17,942
)
 
12.13

 
 
Nonvested RSUs at December 31, 2016
3,412,719

 
$
9.77

 
$
39,178

Summary of Fair Value of Stock Option Awards 
The fair value of stock option awards granted under the 2013 Incentive Plan at legacy TRI Pointe during the years ended December 31, 2016, 2015 and 2014 were established at the date of grant using an option based model with the following assumptions:
 
2016 Grants
 
2015 Grants
 
2014 Grants

Dividend yield
N/A
 
N/A
 
—
%
Expected volatility
N/A
 
N/A
 
63.01
%
Risk-free interest rate
N/A
 
N/A
 
1.96
%
Expected life (in years)
N/A
 
N/A
 
6.00


 
Summary of Fair Value of Stock Option Awards 
The fair value of stock option awards assumed in the Merger was determined by using an option-based model with the following assumptions:
 
2014 Grants

 
2013 Grants

 
2012 Grants

 
2011 Grants

Dividend yield
2.92
%
 
2.23
%
 
2.94
%
 
2.48
%
Expected volatility
31.71
%
 
38.00
%
 
40.41
%
 
38.56
%
Risk-free interest rate
1.57
%
 
0.92
%
 
1.01
%
 
2.65
%
Expected life (in years)
4.97

 
4.97

 
5.33

 
5.73

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,
 
2016
 
2015
 
2014
Current:
 

 
 
 
 

Federal
$
90,387

 
$
91,343

 
$
(109,565
)
State
8,744

 
6,715

 
5,339

Total current taxes
99,131

 
98,058

 
(104,226
)
Deferred:
 

 
 

 
 

Federal
5,749

 
8,296

 
147,797

State
1,214

 
5,725

 
196

Total deferred taxes
6,963

 
14,021

 
147,993

Total income tax expense
$
106,094

 
$
112,079

 
$
43,767

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,
 
2016
 
2015
 
2014
Taxes at the U.S. federal statutory rate
$
105,779

 
$
111,846

 
$
44,788

State income taxes, net of federal tax impact
9,539

 
9,627

 
3,822

Tax loss on the sale of WRI
—

 
—

 
(5,786
)
Non-deductible transaction costs
305

 
—

 
2,594

Change in valuation allowance
(4,038
)
 
(1,872
)
 
—

Other, net
(5,491
)
 
(7,522
)
 
(1,651
)
Total income tax expense
$
106,094

 
$
112,079

 
$
43,767

Effective income tax rate
35.1
%
 
35.1
%
 
34.2
%
Components of Deferred Income Tax Assets 
Deferred taxes consisted of the following at December 31, 2016 and 2015 (in thousands):
 
Year Ended
December 31,
 
2016
 
2015
Deferred tax assets:
 
 
 

Impairment and other valuation reserves
$
73,890

 
$
89,057

Incentive compensation
8,322

 
3,617

Indirect costs capitalized
25,377

 
20,266

Net operating loss carryforwards (state)
24,583

 
29,461

Transaction costs
(924
)
 
(833
)
State taxes
2,985

 
2,903

Other costs and expenses
15,214

 
13,641

Gross deferred tax assets
149,447

 
158,112

Valuation allowance
(323
)
 
(4,361
)
Deferred tax assets, net of valuation allowance
149,124

 
153,751

 
 
 
 
Deferred tax liabilities:
 
 
 
Interest capitalized
(814
)
 
268

Basis difference in inventory
(14,186
)
 
(14,128
)
Fixed assets
(1,101
)
 
1,274

Intangibles
(8,456
)
 
(9,015
)
Other
(1,344
)
 
(1,493
)
Deferred tax liabilities
(25,901
)
 
(23,094
)
Net deferred tax assets
$
123,223

 
$
130,657

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,
 
2016
 
2015
Balance at beginning of year
$
272

 
$
14,857

Decreases related to prior year tax positions
(272
)
 
(1,706
)
Decreases related to current year tax positions
—

 
(12,879
)
Balance at end of year
$
—

 
$
272

Schedule of Pro Forma Income from Continuing Operations and Pro Forma Earnings Per Share 
 
The Company classifies interest and penalties related to income taxes as part of income tax expense. Accrued interest and penalties are included within the related liabilities in the balance sheet. The Company had no unpaid interest as a result of uncertain tax position as of December 31, 2016, and $35,000 as of December 31, 2015.

As a result of the Merger in fiscal 2014, the Company separated from its former parent. The Company’s income tax expense for the period prior to the Merger reflected taxes calculated pursuant to the tax sharing agreement with the former parent
Related Party Transactions (Tables)
Schedule of Allocated Corporate General and Administrative Expenses
Weyerhaeuser-allocated corporate general and administrative expenses were as follows (in thousands):
 
Year Ended December 31,
 
2016
 
2015
 
2014
Weyerhaeuser-allocated costs
$
—

 
$
—

 
$
10,735

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,
 
2016
 
2015
 
2014
Supplemental disclosure of cash flow information:
 

 
 

 
 
Cash paid during the period for:
 

 
 

 
 
Interest, net of amounts capitalized of $53,028, $60,964 and $38,975
$
—

 
$
—

 
$
1,372

Income taxes
$
117,215

 
$
69,917

 
$
43,005

Supplemental disclosures of noncash activities:
 

 
 

 
 

Increase in real estate inventory due to distribution of land
   from an unconsolidated joint venture
$
—

 
$
—

 
$
5,052

Distribution to Weyerhaeuser of excluded assets and liabilities
$
—

 
$
—

 
$
126,687

Amounts owed to Weyerhaeuser related to the tax sharing
   agreement
$
—

 
$
—

 
$
15,688

Noncash settlement of debt payable to Weyerhaeuser
$
—

 
$
—

 
$
70,082

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
$
1,815

 
$
1,552

 
$
804

Amortization of deferred loan costs capitalized to real estate
   inventory
$
4,642

 
$
3,820

 
$
—

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

 
 

 
 

(Decrease) increase in consolidated real estate inventory
   not owned
$
(316
)
 
$
5,297

 
$
6,343

Increase in deposits on real estate under option or
   contract and other assets
$
—

 
$
—

 
$
780

Increase in accrued expenses and other liabilities
$
—

 
$
300

 
$
—

Increase (decrease) in noncontrolling interests
$
316

 
$
(5,597
)
 
$
(7,123
)
Merger:
 

 
 

 
 

Fair value of assets, excluding cash acquired
$
—

 
$
—

 
$
724,995

Liabilities assumed
$
—

 
$
—

 
$
(276,347
)
Supplemental Guarantor Information (Tables)
Condensed Consolidating Balance Sheet 
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 20, Supplemental Guarantor Information have the following meanings:
a.
for periods prior to July 7, 2015: TRI Pointe Homes only
b.
for periods from and after July 7, 2015:  TRI Pointe Homes and TRI Pointe Group as co-issuers


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

 
$
66,714

 
$
—

 
$
214,485

Receivables
17,358

 
26,352

 
—

 
43,710

Intercompany receivables
783,956

 
—

 
(783,956
)
 
—

Real estate inventories
657,221

 
1,862,052

 
—

 
2,519,273

Investments in unconsolidated entities
—

 
18,999

 
—

 
18,999

Goodwill and other intangible assets, net
156,604

 
5,425

 
—

 
162,029

Investments in subsidiaries
1,093,261

 
—

 
(1,093,261
)
 
—

Deferred tax assets, net
19,061

 
111,596

 
—

 
130,657

Other assets
12,219

 
36,699

 
—

 
48,918

Total Assets
$
2,887,451

 
$
2,127,837

 
$
(1,877,217
)
 
$
3,138,071

 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
Accounts payable
$
20,444

 
$
44,396

 
$
—

 
$
64,840

Intercompany payables
—

 
783,956

 
(783,956
)
 
—

Accrued expenses and other liabilities
32,219

 
184,044

 
—

 
216,263

Unsecured revolving credit facility
299,392

 
—

 
—

 
299,392

Seller financed loans
2,034

 
400

 
—

 
2,434

Senior notes, net
868,679

 
—

 
—

 
868,679

Total Liabilities
1,222,768

 
1,012,796

 
(783,956
)
 
1,451,608

Equity
 
 
 
 
 
 
 
Total stockholders’ equity
1,664,683

 
1,093,261

 
(1,093,261
)
 
1,664,683

Noncontrolling interests
—

 
21,780

 
—

 
21,780

Total Equity
1,664,683

 
1,115,041

 
(1,093,261
)
 
1,686,463

Total Liabilities and Equity
$
2,887,451

 
$
2,127,837

 
$
(1,877,217
)
 
$
3,138,071

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



Condensed Consolidating Statement of Operations 
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

 
64,143

 
—

 
123,470

Restructuring charges
—

 
649

 
—

 
649

Homebuilding income from operations
27,451

 
268,508

 
—

 
295,959

Equity in loss of unconsolidated entities
—

 
179

 
—

 
179

Other income, net
149

 
163

 
—

 
312

Homebuilding income from continuing operations
   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 from continuing operations before taxes
—

 
5,777

 
—

 
5,777

Income from continuing operations 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 20, Supplemental Guarantor Information have the following meanings:
a.
for periods prior to July 7, 2015: TRI Pointe Homes only
b.
for periods from and after July 7, 2015:  TRI Pointe Homes and TRI Pointe Group as co-issuers

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
55,611

 
61,885

 
—

 
117,496

Restructuring charges
(169
)
 
3,498

 
—

 
3,329

Homebuilding income from operations
66,980

 
247,902

 
—

 
314,882

Equity in loss of unconsolidated entities
—

 
1,460

 
—

 
1,460

Other (loss) income, net
(127
)
 
985

 
—

 
858

Homebuilding income from continuing operations
   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 from continuing operations before taxes
—

 
2,060

 
—

 
2,060

Income from continuing operations 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 20, Supplemental Guarantor Information have the following meanings:
a.
for periods prior to July 7, 2015: TRI Pointe Homes only
b.
for periods from and after July 7, 2015:  TRI Pointe Homes and TRI Pointe Group as co-issuers
Condensed Consolidating Statement of Operations (in thousands):

 
Year Ended December 31, 2014
 
Issuer (1)
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Homes, Inc.
Homebuilding:
 
 
 
 
 
 
 
Home sales revenue
$
324,219

 
$
1,322,055

 
$
—

 
$
1,646,274

Land and lot sales revenue
—

 
47,660

 
—

 
47,660

Other operations revenue
(12
)
 
9,694

 
—

 
9,682

Total revenues
324,207

 
1,379,409

 
—

 
1,703,616

Cost of home sales
271,579

 
1,047,038

 
—

 
1,318,617

Cost of land and lot sales
—

 
37,906

 
—

 
37,906

Other operations expense
—

 
3,346

 
—

 
3,346

Sales and marketing
9,678

 
93,922

 
—

 
103,600

General and administrative
16,532

 
65,826

 
—

 
82,358

Restructuring charges
—

 
10,543

 
—

 
10,543

Homebuilding income from operations
26,418

 
120,828

 
—

 
147,246

Equity in loss of unconsolidated entities
—

 
(278
)
 
—

 
(278
)
Transaction expenses
(7,138
)
 
(10,822
)
 
—

 
(17,960
)
Other income (loss), net
17

 
(1,036
)
 
—

 
(1,019
)
Homebuilding income from continuing operations
   before taxes
19,297

 
108,692

 
—

 
127,989

Financial Services:
 
 
 
 
 
 
 
Revenues
—

 
—

 
—

 
—

Expenses
—

 
15

 
—

 
15

Equity in loss of unconsolidated entities
—

 
(10
)
 
—

 
(10
)
Financial services loss from continuing operations before taxes
—

 
(25
)
 
—

 
(25
)
Income from continuing operations before taxes
19,297

 
108,667

 
—

 
127,964

Provision for income taxes
(11,586
)
 
(32,181
)
 
—

 
(43,767
)
Equity of net income (loss) of subsidiaries
76,486

 
—

 
(76,486
)
 
—

Net income (loss) available to common stockholders
$
84,197

 
$
76,486

 
$
(76,486
)
 
$
84,197

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

Condensed Consolidating Statement of Cash Flows 
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 year
105,888

 
64,741

 
—

 
170,629

Cash and cash equivalents - end of year
$
147,771

 
$
66,714

 
$
—

 
$
214,485

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


Condensed Consolidating Statement of Cash Flows (in thousands):
 
 
Year Ended December 31, 2014
 
Issuer (1)
 
Guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Consolidated
TRI Pointe
Homes, Inc.
Cash flows from operating activities
 
 
 
 
 
 
 
Net cash used in operating activities
$
(62,715
)
 
$
(50,655
)
 
$
—

 
$
(113,370
)
Cash flows from investing activities:
 
 
 
 
 
 
 
Purchases of property and equipment
(2,293
)
 
(5,557
)
 
—

 
(7,850
)
Cash acquired in the Merger
53,800

 
—

 
—

 
53,800

Proceeds from sale of property and equipment
—

 
23

 
—

 
23

Investments in unconsolidated entities
—

 
(1,311
)
 
—

 
(1,311
)
Intercompany
69,971

 
—

 
(69,971
)
 
—

Net cash provided by (used in) investing activities
121,478

 
(6,845
)
 
(69,971
)
 
44,662

Cash flows from financing activities:
 
 
 
 
 
 
 
Borrowings from debt
100,000

 
887,298

 
—

 
987,298

Repayment of debt
(53,051
)
 
—

 
—

 
(53,051
)
Debt issuance costs
—

 
(23,000
)
 
—

 
(23,000
)
Bridge commitment fee
—

 
(10,322
)
 
—

 
(10,322
)
Changes in debt payable to Weyerhaeuser
—

 
(623,589
)
 
—

 
(623,589
)
Change in book overdrafts
—

 
(22,491
)
 
—

 
(22,491
)
Distributions to Weyerhaeuser
—

 
(8,606
)
 
—

 
(8,606
)
Net proceeds of debt held by variable interest entities
—

 
3,903

 
—

 
3,903

Contributions from noncontrolling interests
—

 
1,895

 
—

 
1,895

Distributions to noncontrolling interests
—

 
(19,143
)
 
—

 
(19,143
)
Proceeds from issuance of common stock under
   share-based awards
176

 
—

 
—

 
176

Excess tax benefits of share-based awards
—

 
1,757

 
—

 
1,757

Intercompany
—

 
(69,971
)
 
69,971

 
—

Net cash provided by financing activities
47,125

 
117,731

 
69,971

 
234,827

Net increase in cash and cash equivalents
105,888

 
60,231

 
—

 
166,119

Cash and cash equivalents - beginning of year
—

 
4,510

 
—

 
4,510

Cash and cash equivalents - end of year
$
105,888

 
$
64,741

 
$
—

 
$
170,629

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

Results of Quarterly Operations (Tables)
Schedule of Quarterly Results of Operations
 
 
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.

 
First
 
Second
 
Third
 
Fourth
2015
Quarter
 
Quarter
 
Quarter
 
Quarter
Total revenues(1)
$
377,258

 
$
495,517

 
$
648,141

 
$
880,243

Cost of homes sales and other(2)
302,777

 
353,878

 
511,564

 
680,006

Gross margin
$
74,481

 
$
141,639

 
$
136,577

 
$
200,237

Net income
$
15,297

 
$
56,762

 
$
49,769

 
$
85,353

Net (income) loss attributable to noncontrolling interests
—

 
(1,832
)
 
393

 
(281
)
Net income available to common stockholders
$
15,297

 
$
54,930

 
$
50,162

 
$
85,072

 
 
 
 
 
 
 
 
Earnings per share
 
 
 
 
 
 
 
Basic
$
0.09

 
$
0.34

 
$
0.31

 
$
0.53

Diluted
$
0.09

 
$
0.34

 
$
0.31

 
$
0.52


 __________
(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 $)
12 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Jul. 7, 2014
Common Stock [Member]
Dec. 31, 2016
Common Stock [Member]
Dec. 31, 2015
Common Stock [Member]
Dec. 31, 2014
Common Stock [Member]
Dec. 31, 2013
Common Stock [Member]
Jul. 7, 2015
4.375% Senior notes due 2019 [Member]
Dec. 31, 2016
4.375% Senior notes due 2019 [Member]
Dec. 31, 2015
4.375% Senior notes due 2019 [Member]
Jul. 7, 2015
5.875% Senior notes due 2024 [Member]
Dec. 31, 2016
5.875% Senior notes due 2024 [Member]
Dec. 31, 2015
5.875% Senior notes due 2024 [Member]
Jul. 7, 2015
Tri Pointe Homes Inc [Member]
Jul. 7, 2015
Tri Pointe Group Inc [Member]
Jul. 7, 2014
Weyerhaeuser Real Estate Company [Member]
Jul. 7, 2014
Weyerhaeuser Real Estate Company [Member]
Scenario, Previously Reported [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock, par value (in dollars per share)
$ 0.01 
$ 0.01 
 
 
 
 
 
 
 
 
 
 
 
 
$ 0.01 
$ 0.01 
 
 
Interest rate on senior note (percent)
 
 
 
 
 
 
 
 
4.375% 
4.375% 
4.375% 
5.875% 
5.875% 
5.875% 
 
 
 
 
Debt instrument, maturity year
 
 
 
 
 
 
 
 
2019 
 
 
2024 
 
 
 
 
 
 
Number of shares resulting for each converted share (shares)
 
 
 
1.297 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conversion of shares, description
In the Merger, each issued and outstanding WRECO common share was converted into 1.297 shares of TRI Pointe common stock. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock issued and outstanding - historical (shares)
158,626,229 
161,813,750 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100,000,000 
Common stock outstanding (shares)
158,626,229 
161,813,750 
 
 
158,626,229 
161,813,750 
161,355,490 
129,700,000 
 
 
 
 
 
 
 
 
129,700,000 
 
Impairment charges
$ 0 
$ 1,200,000 
$ 931,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross unrecognized tax benefits
$ 0 
$ 272,000 
$ 14,857,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Merger with Weyerhaeuser Real Estate Company - Additional Information (Detail) (USD $)
0 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended
Jun. 13, 2014
escrow_account
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Jul. 7, 2014
Trade names [Member]
Jul. 7, 2015
4.375% Senior notes due 2019 [Member]
Dec. 31, 2016
4.375% Senior notes due 2019 [Member]
Dec. 31, 2015
4.375% Senior notes due 2019 [Member]
Jul. 7, 2014
4.375% Senior notes due 2019 [Member]
Jul. 7, 2015
5.875% Senior notes due 2024 [Member]
Dec. 31, 2016
5.875% Senior notes due 2024 [Member]
Dec. 31, 2015
5.875% Senior notes due 2024 [Member]
Jul. 7, 2014
5.875% Senior notes due 2024 [Member]
Jun. 13, 2014
Unpaid Interest [Member]
Jul. 7, 2014
WRECO Transaction [Member]
Jul. 7, 2014
WRECO Transaction [Member]
Jun. 13, 2014
WRECO Transaction [Member]
Jun. 13, 2014
WRECO Transaction [Member]
Transaction Agreement [Member]
Jun. 13, 2014
WRECO Transaction [Member]
Unpaid Interest [Member]
Jul. 7, 2014
TRI Pointe [Member]
Jun. 13, 2014
TRI Pointe [Member]
Jul. 7, 2014
TRI Pointe [Member]
WRECO Transaction [Member]
Jul. 7, 2014
TRI Pointe [Member]
WRECO Transaction [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock issued and outstanding - historical (shares)
 
158,626,229 
161,813,750 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
129,700,000 
 
 
 
Percentage of common stock outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
79.60% 
Percentage of common stock owned after the Merger by TRI Pointe shareholders of record prior to the Merger
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
19.40% 
 
Outstanding equity awards of the employee (percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.00% 
Amount of adjustment based on transaction agreement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 31,500,000 
 
 
 
 
 
 
 
 
Aggregate principal amount
 
 
 
 
 
 
 
 
450,000,000 
 
 
 
450,000,000 
 
 
 
 
 
 
 
 
 
 
Interest rate on senior note (percent)
 
 
 
 
 
4.375% 
4.375% 
4.375% 
 
5.875% 
5.875% 
5.875% 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, maturity year
 
 
 
 
 
2019 
 
 
 
2024 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from issuance of senior notes
861,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of escrow accounts
2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash payment to former direct parent
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
743,700,000 
739,000,000 
4,700,000 
 
 
 
 
Debt issuance date
 
 
 
 
 
 
 
 
 
 
 
 
 
Nov. 03, 2013 
 
 
 
 
 
 
 
 
 
Cash retained by the Company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
117,600,000 
 
 
Transaction costs directly related to Merger
 
0 
0 
17,960,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisition related to trade names
 
 
 
 
$ 17,300,000 
 
 
 
 
 
 
 
 
 
 
$ 17,300,000 
 
 
 
 
 
 
 
Merger with Weyerhaeuser Real Estate Company - Summary of Calculation of Fair Value of Total Consideration Transferred and Provisional Amounts Recognized (Detail) (USD $)
In Thousands, except Share data, unless otherwise specified
0 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Jul. 7, 2014
WRECO Transaction [Member]
Jul. 7, 2014
WRECO Transaction [Member]
Calculation of consideration transferred
 
 
 
 
 
TRI Pointe shares outstanding - recast (shares)
158,626,229 
161,813,750 
 
 
31,632,533 
TRI Pointe closing stock price on July 7, 2014
 
 
 
 
$ 15.85 
Consideration attributable to common stock
 
 
 
$ 501,376 
 
Consideration attributable to TRI Pointe share-based equity awards
 
 
 
1,072 
 
Total consideration transferred
 
 
 
502,448 
 
Assets acquired and liabilities assumed
 
 
 
 
 
Cash and cash equivalents
 
 
 
 
53,800 
Accounts receivable
 
 
 
 
654 
Real estate inventories
 
 
 
 
539,677 
Intangible asset
 
 
 
 
17,300 
Goodwill
139,304 
139,300 
139,300 
 
139,304 
Other assets
 
 
 
 
28,060 
Total assets acquired
 
 
 
 
778,795 
Accounts payable
 
 
 
 
(26,105)
Accrued expenses and other liabilities
 
 
 
 
(23,114)
Notes payable and other borrowings
 
 
 
 
(227,128)
Total liabilities assumed
 
 
 
 
(276,347)
Total net assets acquired
 
 
 
 
$ 502,448 
Merger with Weyerhaeuser Real Estate Company - Summary of Pro Forma Operating Results (Detail) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Business Combinations [Abstract]
 
Total revenues
$ 1,865,723 
Net income
$ 88,416 
Earnings per share – basic (dollars per share)
$ 0.55 
Earnings per share – diluted (dollars per share)
$ 0.55 
Restructuring Charges - Schedule of Restructuring Costs (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Restructuring and Related Activities [Abstract]
 
 
 
Employee-related costs
$ 99 
$ 1,546 
$ 9,211 
Lease termination costs
550 
1,800 
1,332 
Total
$ 649 
$ 3,329 
$ 10,543 
Restructuring Charges - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Restructuring Cost And Reserve [Line Items]
 
 
 
Employee-related costs
$ 99 
$ 1,546 
$ 9,211 
Stock-based compensation expense
12,612 
11,935 
7,679 
Lease termination costs
550 
1,800 
1,332 
Employee-Related Restructuring Reserves [Member]
 
 
 
Restructuring Cost And Reserve [Line Items]
 
 
 
Employee-related costs
 
 
8,300 
Stock-based compensation expense
 
 
$ 947 
Restructuring Charges - Schedule of Changes in Employee Related Restructuring Reserves (Detail) (USD $)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Restructuring Reserve [Roll Forward]
 
 
 
Current year charges
$ 649,000 
$ 3,329,000 
$ 10,543,000 
Employee-Related Restructuring Reserves [Member]
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
Accrued employee-related costs, beginning of period
220,000 
3,844,000 
4,336,000 
Current year charges
99,000 
1,546,000 
8,264,000 
Payments
(250,000)
(5,170,000)
(8,756,000)
Accrued employee-related costs, end of period
$ 69,000 
$ 220,000 
$ 3,844,000 
Restructuring Charges - Schedule of Changes in Lease Termination Related Restructuring Reserves (Detail) (USD $)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Restructuring Reserve [Roll Forward]
 
 
 
Current year charges
$ 649,000 
$ 3,329,000 
$ 10,543,000 
Lease Termination Restructuring Reserves [Member]
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
Accrued employee-related costs, beginning of period
767,000 
1,394,000 
3,506,000 
Current year charges
550,000 
1,783,000 
1,332,000 
Payments
(1,236,000)
(2,410,000)
(3,444,000)
Accrued employee-related costs, end of period
$ 81,000 
$ 767,000 
$ 1,394,000 
Segment Information - Additional Information (Detail)
12 Months Ended
Dec. 31, 2016
segment
company
business
Segment Reporting [Abstract]
 
Number of principal businesses
2 
Number of operating divisions
6 
Number of reportable segments
6 
Segment Information - Summary of Financial Information Relating to Reportable Segments (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total homebuilding revenues
$ 773,753 
$ 582,029 
$ 625,222 
$ 424,138 
$ 880,243 
$ 648,141 
$ 495,517 
$ 377,258 
$ 2,403,922 
$ 2,400,149 
$ 1,703,616 
Financial services revenues
 
 
 
 
 
 
 
 
1,220 
1,010 
0 
Total revenues
 
 
 
 
 
 
 
 
2,405,142 
2,401,159 
1,703,616 
Total homebuilding income (loss) before income taxes
 
 
 
 
 
 
 
 
296,450 
317,200 
127,989 
Financial services income (loss) before taxes
 
 
 
 
 
 
 
 
5,777 
2,060 
(25)
Income before income taxes
 
 
 
 
 
 
 
 
302,227 
319,260 
127,964 
Real estate inventories
2,910,627 
 
 
 
2,519,273 
 
 
 
2,910,627 
2,519,273 
 
Total homebuilding assets
3,557,703 
 
 
 
3,135,995 
 
 
 
3,557,703 
3,135,995 
 
Financial services assets
6,937 
 
 
 
2,076 
 
 
 
6,937 
2,076 
 
Total assets
3,564,640 
 
 
 
3,138,071 
 
 
 
3,564,640 
3,138,071 
 
Maracay Homes [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total homebuilding revenues
 
 
 
 
 
 
 
 
255,253 
185,645 
150,689 
Real estate inventories
228,965 
 
 
 
206,912 
 
 
 
228,965 
206,912 
 
Pardee Homes [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total homebuilding revenues
 
 
 
 
 
 
 
 
730,848 
670,063 
525,381 
Real estate inventories
1,098,608 
 
 
 
1,011,982 
 
 
 
1,098,608 
1,011,982 
 
Quadrant Homes [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total homebuilding revenues
 
 
 
 
 
 
 
 
213,221 
189,401 
145,377 
Real estate inventories
221,386 
 
 
 
190,038 
 
 
 
221,386 
190,038 
 
Trendmaker Homes [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total homebuilding revenues
 
 
 
 
 
 
 
 
244,001 
278,759 
281,270 
Real estate inventories
211,035 
 
 
 
199,398 
 
 
 
211,035 
199,398 
 
Tri Pointe [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total homebuilding revenues
 
 
 
 
 
 
 
 
723,186 
774,005 
324,208 
Real estate inventories
868,088 
 
 
 
659,130 
 
 
 
868,088 
659,130 
 
Winchester Homes [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total homebuilding revenues
 
 
 
 
 
 
 
 
237,413 
302,276 
276,691 
Real estate inventories
282,545 
 
 
 
251,813 
 
 
 
282,545 
251,813 
 
Operating segments [Member] |
Maracay Homes [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total homebuilding income (loss) before income taxes
 
 
 
 
 
 
 
 
17,189 
9,849 
10,845 
Total homebuilding assets
255,466 
 
 
 
227,857 
 
 
 
255,466 
227,857 
 
Operating segments [Member] |
Pardee Homes [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total homebuilding income (loss) before income taxes
 
 
 
 
 
 
 
 
204,237 
183,077 
74,898 
Total homebuilding assets
1,201,302 
 
 
 
1,089,586 
 
 
 
1,201,302 
1,089,586 
 
Operating segments [Member] |
Quadrant Homes [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total homebuilding income (loss) before income taxes
 
 
 
 
 
 
 
 
21,209 
10,478 
9,028 
Total homebuilding assets
242,208 
 
 
 
202,024 
 
 
 
242,208 
202,024 
 
Operating segments [Member] |
Trendmaker Homes [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total homebuilding income (loss) before income taxes
 
 
 
 
 
 
 
 
15,353 
25,004 
31,684 
Total homebuilding assets
225,025 
 
 
 
213,562 
 
 
 
225,025 
213,562 
 
Operating segments [Member] |
Tri Pointe [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total homebuilding income (loss) before income taxes
 
 
 
 
 
 
 
 
62,013 
104,970 
19,272 
Total homebuilding assets
1,052,400 
 
 
 
832,423 
 
 
 
1,052,400 
832,423 
 
Operating segments [Member] |
Winchester Homes [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total homebuilding income (loss) before income taxes
 
 
 
 
 
 
 
 
16,147 
22,411 
24,612 
Total homebuilding assets
305,379 
 
 
 
278,374 
 
 
 
305,379 
278,374 
 
Corporate [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total homebuilding income (loss) before income taxes
 
 
 
 
 
 
 
 
(39,698)
(38,589)
(42,350)
Total homebuilding assets
$ 275,923 
 
 
 
$ 292,169 
 
 
 
$ 275,923 
$ 292,169 
 
Segment Information - Summary of Financial Information Relating to Reportable Segments (Phantoms) (Detail) (USD $)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Segment Reporting Information [Line Items]
 
 
 
Merger related transaction costs
$ 0 
$ 0 
$ 17,960,000 
Restructuring charges
649,000 
3,329,000 
10,543,000 
Corporate [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Merger related transaction costs
0 
0 
18,000,000 
Restructuring charges
$ 0 
$ 0 
$ 5,500,000 
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, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Numerator:
 
 
 
 
 
 
 
 
 
 
 
Income available to common stockholders
 
 
 
 
 
 
 
 
$ 195,171 
$ 205,461 
$ 84,197 
Denominator:
 
 
 
 
 
 
 
 
 
 
 
Basic weighted-average shares outstanding (shares)
 
 
 
 
 
 
 
 
160,859,782 
161,692,152 
145,044,351 
Effect of dilutive shares:
 
 
 
 
 
 
 
 
 
 
 
Stock options and unvested restricted stock units (shares)
 
 
 
 
 
 
 
 
521,717 
627,606 
486,938 
Diluted weighted-average shares outstanding (shares)
 
 
 
 
 
 
 
 
161,381,499 
162,319,758 
145,531,289 
Basic
 
 
 
 
 
 
 
 
 
 
 
Basic (in dollars per share)
$ 0.36 
$ 0.22 
$ 0.46 
$ 0.18 
$ 0.53 
$ 0.31 
$ 0.34 
$ 0.09 
$ 1.21 
$ 1.27 
$ 0.58 
Diluted
 
 
 
 
 
 
 
 
 
 
 
Diluted (in dollars per share)
$ 0.36 
$ 0.22 
$ 0.46 
$ 0.18 
$ 0.52 
$ 0.31 
$ 0.34 
$ 0.09 
$ 1.21 
$ 1.27 
$ 0.58 
Antidilutive stock options not included in diluted earnings per share (in shares)
 
 
 
 
 
 
 
 
4,551,337 
2,622,391 
1,295,280 
Earnings Per Share - Additional Information (Detail)
0 Months Ended
Jul. 7, 2014
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Business Acquisition [Line Items]
 
 
 
 
 
Common stock issued and outstanding - historical (shares)
 
158,626,229 
161,813,750 
 
 
TRI Pointe shares outstanding - recast (shares)
 
158,626,229 
161,813,750 
 
 
Weyerhaeuser Real Estate Company [Member]
 
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
 
TRI Pointe shares outstanding - recast (shares)
129,700,000 
 
 
 
 
Scenario, Previously Reported [Member] |
Weyerhaeuser Real Estate Company [Member]
 
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
 
Common stock issued and outstanding - historical (shares)
100,000,000 
 
 
 
 
Common Stock [Member]
 
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
 
Number of shares resulting for each converted share (shares)
1.297 
 
 
 
 
TRI Pointe shares outstanding - recast (shares)
 
158,626,229 
161,813,750 
161,355,490 
129,700,000 
WRECO [Member] |
Scenario, Previously Reported [Member] |
Weyerhaeuser Real Estate Company [Member]
 
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
 
Common stock issued and outstanding - historical (shares)
100,000,000 
 
 
 
 
TRI Pointe shares outstanding - recast (shares)
129,700,000 
 
 
 
 
WRECO [Member] |
Common Stock [Member]
 
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
 
Number of shares resulting for each converted share (shares)
1.297 
 
 
 
 
Receivables, Net - Components of Receivables, Net (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Receivables [Abstract]
 
 
Escrow proceeds and other accounts receivable, net
$ 35,625 
$ 32,917 
Warranty insurance receivable
46,875 
10,493 
Notes and contracts receivable
0 
300 
Total receivables
$ 82,500 
$ 43,710 
Receivables, Net - Additional Information (Detail) (USD $)
Dec. 31, 2016
Dec. 31, 2015
Loans and Leases Receivable Disclosure [Line Items]
 
 
Estimated probable recoveries
$ 38,000,000 
$ 36,500,000 
Allowances for doubtful accounts
286,000 
1,700,000 
Reclassified amount [Member]
 
 
Loans and Leases Receivable Disclosure [Line Items]
 
 
Estimated probable recoveries
$ 38,000,000 
 
Real Estate Inventories - Summary of Real Estate Inventories (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Real estate inventories owned:
 
 
Homes completed or under construction
$ 659,210 
$ 575,076 
Land under development
1,824,989 
1,443,461 
Land held for future development
226,915 
295,241 
Model homes
155,039 
140,232 
Total real estate inventories owned
2,866,153 
2,454,010 
Real estate inventories not owned:
 
 
Land purchase and land option deposits
26,174 
39,055 
Consolidated inventory held by VIEs
18,300 
26,208 
Total real estate inventories not owned
44,474 
65,263 
Total real estate inventories
$ 2,910,627 
$ 2,519,273 
Real Estate Inventories - Summary of Interest Incurred, Capitalized and Expensed (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Real Estate [Abstract]
 
 
 
Interest incurred
$ 68,306 
$ 60,964 
$ 41,706 
Interest capitalized
(68,306)
(60,964)
(38,975)
Interest expensed
 
0 
2,731 
Real Estate Inventory, Capitalized Interest Costs [Roll Forward]
 
 
 
Capitalized interest in beginning inventory
140,311 
124,461 
138,233 
Interest capitalized as a cost of inventory
68,306 
60,964 
38,975 
Interest previously capitalized as a cost of inventory, included in cost of sales
(51,288)
(45,114)
(52,747)
Capitalized interest in ending inventory
$ 157,329 
$ 140,311 
$ 124,461 
Real Estate Inventories - Schedule of Real Estate Inventory Impairments and Land Option Abandonments (Detail) (USD $)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Real Estate [Abstract]
 
 
 
Real estate inventory impairments
$ 0 
$ 1,200,000 
$ 931,000 
Land and lot option abandonments and pre-acquisition costs
1,470,000 
763,000 
1,584,000 
Real estate inventory impairments and land option abandonments, Total
$ 1,470,000 
$ 1,930,000 
$ 2,515,000 
Investments in Unconsolidated Entities - Additional Information (Detail)
12 Months Ended
Dec. 31, 2016
investment
Minimum [Member]
 
Investment Holdings [Line Items]
 
Ownership percentage
7.00% 
Maximum [Member]
 
Investment Holdings [Line Items]
 
Ownership percentage
55.00% 
Homebuilding Partnerships or Limited Liability Companies [Member]
 
Investment Holdings [Line Items]
 
Number of equity investments
6 
Financial Services Limited Liability Company [Member]
 
Investment Holdings [Line Items]
 
Number of equity investments
1 
Investments in Unconsolidated Entities - Schedule of Cumulative Investment in Entities on Equity Method, Including Share of Earnings and Losses (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Schedule of Investments [Line Items]
 
 
Investments in unconsolidated entities
$ 17,546 
$ 18,999 
Limited Liability Company Interests [Member]
 
 
Schedule of Investments [Line Items]
 
 
Investments in unconsolidated entities
14,327 
15,739 
General Partnership Interests [Member]
 
 
Schedule of Investments [Line Items]
 
 
Investments in unconsolidated entities
$ 3,219 
$ 3,260 
Investments in Unconsolidated Entities - Aggregated Assets, Liabilities and Operating Results of Entities as Equity-Method Investments (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Assets
 
 
 
Total assets
$ 118,488 
$ 125,810 
 
Liabilities and equity
 
 
 
Accounts payable and other liabilities
12,844 
14,443 
 
Company’s equity
17,546 
18,999 
 
Outside interests' equity
88,098 
92,368 
 
Total liabilities and equity
118,488 
125,810 
 
Net sales
18,725 
7,326 
606 
Other operating expense
(11,315)
(6,690)
(4,290)
Other income (expense)
4 
(279)
(2)
Net income (loss)
7,414 
357 
(3,686)
Company’s equity in income (loss) of unconsolidated entities
4,989 
2,691 
(288)
Cash [Member]
 
 
 
Assets
 
 
 
Total assets
9,796 
18,641 
 
Receivables [Member]
 
 
 
Assets
 
 
 
Total assets
10,203 
13,108 
 
Real Estate Inventories [Member]
 
 
 
Assets
 
 
 
Total assets
97,402 
92,881 
 
Other Assets [Member]
 
 
 
Assets
 
 
 
Total assets
$ 1,087 
$ 1,180 
 
Variable Interest Entities - Summary of Interests in Land Option Agreements (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Variable Interest Entity [Line Items]
 
 
Deposits
$ 26,574 
$ 42,058 
Remaining Purchase Price
313,574 
377,441 
Consolidated inventory held by VIEs
18,300 
26,208 
Consolidated VIEs [Member]
 
 
Variable Interest Entity [Line Items]
 
 
Deposits
400 
3,003 
Remaining Purchase Price
17,900 
23,239 
Consolidated inventory held by VIEs
18,300 
26,208 
Unconsolidated VIEs [Member]
 
 
Variable Interest Entity [Line Items]
 
 
Deposits
2,375 
11,615 
Remaining Purchase Price
49,016 
74,590 
Other land option agreements [Member]
 
 
Variable Interest Entity [Line Items]
 
 
Deposits
23,799 
27,440 
Remaining Purchase Price
$ 246,658 
$ 279,612 
Variable Interest Entities - Additional Information (Detail) (Other land option agreements [Member], USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Other land option agreements [Member]
 
 
Variable Interest Entity [Line Items]
 
 
Capitalized pre-acquisition costs
$ 3.6 
$ 5.0 
Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $)
12 Months Ended
Dec. 31, 2016
assets
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2016
Indefinite-Lived Trade Names [Member]
Dec. 31, 2016
Finite-Lived Trade Names [Member]
Dec. 31, 2015
Finite-Lived Trade Names [Member]
Dec. 31, 2016
Maracay Homes [Member]
Jul. 7, 2014
WRECO Transaction [Member]
Schedule Of Intangible Assets And Goodwill [Line Items]
 
 
 
 
 
 
 
 
Goodwill
$ 139,304,000 
$ 139,300,000 
$ 139,300,000 
 
 
 
 
$ 139,304,000 
Number of intangible assets
2 
 
 
 
 
 
 
 
Intangible assets useful life
 
 
 
 
 
 
20 years 
 
Remaining useful life of amortizing asset
 
 
 
 
9 years 2 months 12 days 
10 years 2 months 12 days 
 
 
Amortization expense
 
 
 
 
534,000 
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, 2016
Dec. 31, 2015
Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
 
 
 
Goodwill
$ 139,304 
$ 139,300 
$ 139,300 
Trade names, Gross Carrying Amount
27,979 
27,979 
 
Gross Carrying Amount
167,283 
167,283 
 
Accumulated Amortization
(5,788)
(5,254)
 
Trade names, Net Carrying Amount
22,191 
22,725 
 
Net Carrying Amount
$ 161,495 
$ 162,029 
 
Goodwill and Other Intangible Assets - Schedule of Expected Amortization of Intangible Asset (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
 
2017
$ 534 
2018
534 
2019
534 
2020
534 
2021
534 
Thereafter
2,221 
Total
$ 4,891 
Other Assets - Schedule of Other Assets (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
 
 
Prepaid expenses
$ 24,495 
$ 14,523 
Refundable fees and other deposits
17,731 
17,056 
Development rights, held for future use or sale
2,569 
4,360 
Deferred loan costs
2,101 
2,179 
Operating properties and equipment, net
10,884 
7,643 
Other
2,812 
3,157 
Other assets, total
$ 60,592 
$ 48,918 
Accrued Expenses and Other Liabilities - Schedule of Accrued Expenses and Other Liabilities (Detail) (USD $)
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Payables and Accruals [Abstract]
 
 
 
 
Accrued payroll and related costs
$ 33,761,000 
$ 28,264,000 
 
 
Warranty reserves
83,135,000 
45,948,000 
33,270,000 
24,449,000 
Estimated cost for completion of real estate inventories
59,531,000 
52,818,000 
 
 
Customer deposits
13,437,000 
12,132,000 
 
 
Debt (nonrecourse) held by VIEs
0 
2,442,000 
 
 
Income tax liability to Weyerhaeuser
8,589,000 
8,900,000 
 
 
Accrued income taxes payable
1,200,000 
19,279,000 
 
 
Liability for uncertain tax positions
0 
307,000 
 
 
Accrued interest
11,570,000 
2,417,000 
 
 
Accrued insurance expense
529,000 
1,402,000 
 
 
Other tax liabilities
34,961,000 
21,764,000 
 
 
Other
17,132,000 
20,590,000 
 
 
Total
263,845,000 
216,263,000 
 
 
Estimated probable recoveries
$ 38,000,000 
$ 36,500,000 
 
 
Senior Notes and Notes Payable and Other Borrowings - Schedule of Senior Notes (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Debt Instrument [Line Items]
 
 
Senior notes
$ 1,168,307 
$ 868,679 
Discount and deferred loan costs
(31,693)
(31,321)
4.375% Senior notes due 2019 [Member]
 
 
Debt Instrument [Line Items]
 
 
Senior notes
450,000 
450,000 
4.875% Senior Notes due July 1, 2021 [Member]
 
 
Debt Instrument [Line Items]
 
 
Senior notes
300,000 
0 
5.875% Senior notes due 2024 [Member]
 
 
Debt Instrument [Line Items]
 
 
Senior notes
$ 450,000 
$ 450,000 
Senior Notes and Notes Payable and Other Borrowings - Schedule of Senior Notes (Phantoms) (Detail)
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2016
Dec. 31, 2015
Jul. 7, 2015
4.375% Senior notes due 2019 [Member]
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
Interest rate on senior note (percent)
 
4.375% 
4.375% 
4.375% 
Maturity date of senior note
Jun. 15, 2019 
Jun. 15, 2019 
Jun. 15, 2019 
 
5.875% Senior notes due 2024 [Member]
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
Interest rate on senior note (percent)
 
5.875% 
5.875% 
5.875% 
Maturity date of senior note
Jun. 15, 2024 
Jun. 15, 2024 
Jun. 15, 2024 
 
Senior Notes and Notes Payable and Other Borrowings - Additional Information (Detail) (USD $)
0 Months Ended 12 Months Ended 1 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended
Jun. 13, 2014
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2016
Notes payable [Member]
Dec. 31, 2015
Notes payable [Member]
Dec. 31, 2016
Senior Notes [Member]
Dec. 31, 2015
Senior Notes [Member]
Dec. 31, 2016
Seller financed loan [Member]
Dec. 31, 2015
Seller financed loan [Member]
May 31, 2016
4.875% Senior Notes due July 1, 2021 [Member]
Senior Notes [Member]
Mar. 31, 2016
4.375% Senior notes due 2019 [Member]
Dec. 31, 2016
4.375% Senior notes due 2019 [Member]
Dec. 31, 2015
4.375% Senior notes due 2019 [Member]
Jul. 7, 2015
4.375% Senior notes due 2019 [Member]
Jul. 7, 2014
4.375% Senior notes due 2019 [Member]
Mar. 31, 2016
5.875% Senior notes due 2024 [Member]
Dec. 31, 2016
5.875% Senior notes due 2024 [Member]
Dec. 31, 2015
5.875% Senior notes due 2024 [Member]
Jul. 7, 2015
5.875% Senior notes due 2024 [Member]
Jul. 7, 2014
5.875% Senior notes due 2024 [Member]
Jun. 13, 2014
Unpaid Interest [Member]
Dec. 31, 2016
550 million revolving credit facility [Member]
Dec. 31, 2016
Unsecured revolving credit facility [Member]
Six Hundred And Twenty Five Million Revolving Credit Facility [Member]
Apr. 28, 2016
Unsecured revolving credit facility [Member]
Six Hundred And Twenty Five Million Revolving Credit Facility [Member]
Dec. 31, 2015
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]
Minimum [Member]
Dec. 31, 2016
Unsecured revolving credit facility [Member]
Six Hundred And Twenty Five Million Revolving Credit Facility [Member]
Maximum [Member]
Mar. 31, 2016
Unsecured revolving credit facility [Member]
550 million revolving credit facility [Member]
Dec. 31, 2016
Letters of credit [Member]
Six Hundred And Twenty Five Million Revolving Credit Facility [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aggregate principal amount
 
 
 
 
 
 
 
 
 
 
$ 300,000,000 
 
 
 
 
$ 450,000,000 
 
 
 
 
$ 450,000,000 
 
 
 
 
 
 
 
 
 
Interest rate on debt (percent)
 
 
 
 
 
 
 
 
7.00% 
 
4.875% 
 
4.375% 
4.375% 
4.375% 
 
 
5.875% 
5.875% 
5.875% 
 
 
2.44% 
 
 
 
 
 
 
 
Percentage of aggregate principal amount (percent)
 
 
 
 
 
 
 
 
 
 
99.44% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from issuance of debt note, net
 
 
 
 
 
 
 
 
 
 
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 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Transaction agreement date
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nov. 03, 2013 
 
 
 
 
 
 
 
 
Maturity date of senior note
 
 
 
 
 
 
 
 
 
 
 
Jun. 15, 2019 
Jun. 15, 2019 
Jun. 15, 2019 
 
 
Jun. 15, 2024 
Jun. 15, 2024 
Jun. 15, 2024 
 
 
 
 
 
 
 
 
 
 
 
Principal payment on Senior Notes
 
 
 
 
 
 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capitalization of deferred finance costs
 
2,101,000 
2,179,000 
 
 
 
20,900,000 
20,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accrued interest
 
11,570,000 
2,417,000 
 
 
 
10,700,000 
1,900,000 
519,000 
89,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
658,000 
 
407,000 
 
 
 
 
Unsecured revolving credit facility
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
625,000,000 
 
 
 
550,000,000 
75,000,000 
Debt instrument variable interest rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.45% 
2.20% 
 
 
Notes payable and other borrowings
 
200,000,000 
299,392,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
200,000,000 
 
299,392,000 
 
 
 
 
Available secured revolving credit facility
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
420,700,000 
 
 
 
 
 
 
Outstanding letters of credit
 
4,300,000 
8,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest incurred
 
68,306,000 
60,964,000 
41,706,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest capitalized
 
68,306,000 
60,964,000 
38,975,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of deferred financing costs
 
 
 
 
$ 6,500,000 
$ 5,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior Notes and Notes Payable and Other Borrowings - Components of Unsecured Revolving Credit Facility (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Debt Instrument [Line Items]
 
 
Notes payable and other borrowings
$ 200,000 
$ 299,392 
Unsecured revolving credit facility [Member] |
Six Hundred And Twenty Five Million Revolving Credit Facility [Member]
 
 
Debt Instrument [Line Items]
 
 
Notes payable and other borrowings
$ 200,000 
$ 299,392 
Senior Notes and Notes Payable and Other Borrowings - Components of Seller Financed Loans (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Debt Disclosure [Abstract]
 
 
Seller financed loans
$ 13,726 
$ 2,434 
Fair Value Disclosures - Summary of Assets and Liabilities Related to Financial Instruments, Measured at Fair Value on a Recurring Basis (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Senior notes
$ 1,168,307 
$ 868,679 
Unsecured revolving credit facility
200,000 
299,392 
Seller financed loans
13,726 
2,434 
Level 2 [Member] |
Recurring [Member] |
Book Value [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Senior notes
1,189,180 
889,054 
Level 2 [Member] |
Recurring [Member] |
Book Value [Member] |
Seller financed loan [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Seller financed loans
 
2,434 
Level 2 [Member] |
Recurring [Member] |
Fair Value [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Senior notes
1,219,125 
881,460 
Level 2 [Member] |
Recurring [Member] |
Fair Value [Member] |
Seller financed loan [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Seller financed loans
13,189 
2,368 
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
 
299,392 
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
$ 177,410 
$ 299,392 
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, 2016
Dec. 31, 2015
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Deferred loan cost
$ 2,101 
$ 2,179 
Senior Notes [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
Deferred loan cost
$ 20,900 
$ 20,400 
Fair Value Disclosures - Summary of Nonfinancial Assets Measured at Fair Value on a Nonrecurring Basis (Detail) (USD $)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
 
Real estate inventory impairments
$ 0 
$ 1,200,000 
$ 931,000 
Real estate inventories
2,910,627,000 
2,519,273,000 
 
Fair Value Measurements Nonrecurring
 
 
 
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
 
Real estate inventory impairments
0 
1,167,000 
 
Real estate inventories
$ 0 
$ 28,540,000 
 
Commitments and Contingencies - Additional Information (Detail) (USD $)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Commitment And Contingencies [Line Items]
 
 
 
Legal reserve
$ 225,000 
$ 450,000 
 
Increase in warrant liability
36,826,000 
7,451,000 
199,000 
Outstanding warranty insurance receivables
46,875,000 
10,493,000 
 
Estimated probable recoveries
38,000,000 
36,500,000 
 
Rental expense
6,400,000 
6,200,000 
4,900,000 
Operating leases future commitments
56,000,000 
 
 
Operating leases guaranteed future payments
10,600,000 
 
 
Deposits
26,574,000 
42,058,000 
 
Land purchase and land option deposits
26,174,000 
39,055,000 
 
Aggregate remaining purchase price
313,600,000 
 
 
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
$ 449,600,000 
$ 414,100,000 
 
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, 2016
Dec. 31, 2015
Dec. 31, 2014
Movement in Standard Product Warranty Accrual [Roll Forward]
 
 
 
Warranty reserves, beginning of period
$ 45,948 
$ 33,270 
$ 24,449 
Warranty reserves accrued
12,712 
16,557 
11,659 
Liabilities assumed in the Merger
0 
0 
7,481 
Adjustments to pre-existing reserves(1)
36,826 
7,451 
199 
Warranty expenditures
(12,351)
(11,330)
(10,518)
Warranty reserves, end of period
$ 83,135 
$ 45,948 
$ 33,270 
Commitments and Contingencies - Schedule of Future Minimum Lease Payments under Non-Cancellable Operating Lease Agreements (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2016
Office Space Buildings And Equipment
 
Other Commitments [Line Items]
 
2017
$ 6,875 
2018
5,611 
2019
5,316 
2020
5,223 
2021
4,655 
Thereafter
5,027 
Future minimum lease payments under non-cancellable operating lease agreements
32,707 
Ground Leases
 
Other Commitments [Line Items]
 
2017
2,239 
2018
2,239 
2019
2,239 
2020
2,239 
2021
2,239 
Thereafter
74,992 
Future minimum lease payments under non-cancellable operating lease agreements
$ 86,187 
Stock-Based Compensation - Additional Information (Detail) (USD $)
12 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2016
Restricted Stock Units (RSUs) [Member]
Dec. 31, 2015
Restricted Stock Units (RSUs) [Member]
Dec. 31, 2014
Restricted Stock Units (RSUs) [Member]
Mar. 1, 2016
Restricted Stock Units (RSUs) [Member]
Employees and Officers [Member]
Mar. 5, 2015
Restricted Stock Units (RSUs) [Member]
Employees and Officers [Member]
Mar. 1, 2016
Restricted Stock Units (RSUs) [Member]
Employees and Officers [Member]
Jun. 6, 2016
Restricted Stock Units (RSUs) [Member]
Board of Directors [Member]
Aug. 12, 2015
Restricted Stock Units (RSUs) [Member]
Board of Directors [Member]
Jun. 6, 2016
Restricted Stock Units (RSUs) [Member]
Board of Directors [Member]
Mar. 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. 9, 2015
Performance-based RSUs [Member]
Chief Executive Officer [Member]
Mar. 1, 2016
Performance-based RSUs [Member]
President [Member]
Mar. 9, 2015
Performance-based RSUs [Member]
President [Member]
Mar. 1, 2016
Performance-based RSUs [Member]
Chief Financial Officer [Member]
Mar. 9, 2015
Performance-based RSUs [Member]
Chief Financial Officer [Member]
Mar. 1, 2016
Performance-based RSUs [Member]
Employees, officers and Directors [Member]
Jul. 7, 2014
WRECO Transaction [Member]
Dec. 31, 2016
2013 Incentive Plan [Member]
Jul. 16, 2014
WRECO equity incentive plans [Member]
WRECO Transaction [Member]
Mar. 1, 2016
Minimum [Member]
Performance-based RSUs [Member]
Employees, officers and Directors [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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11,727,833 
 
 
 
Shares available for future grant
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7,605,118 
 
 
 
Number of registered shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,105,953 
 
 
Exchange ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.1107 
 
 
Unrecognized stock based compensation related to all stock-based awards
$ 17,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average period, expense to recognize
1 year 8 months 19 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intrinsic value of stock option awards exercised
324,000 
642,000 
51,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grant date fair value of stock option awards granted or assumed
0 
0 
11,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intrinsic value of restricted stock units vested
 
 
 
4,600,000 
6,800,000 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grant date fair value of restricted stock awards granted or assumed
 
 
 
$ 21,800,000 
$ 18,300,000 
$ 15,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restricted stock units, vesting period
 
 
 
 
 
 
 
3 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restricted stock units, granted
 
 
 
1,904,389 
 
 
1,120,677 
440,800 
 
74,466 
69,008 
 
 
 
 
297,426 
411,804 
285,986 
384,351 
125,834 
274,536 
 
 
 
 
 
 
Closing stock price on date of grant
 
 
 
 
 
 
 
$ 14.97 
$ 10.49 
 
$ 14.49 
$ 11.75 
$ 7.55 
$ 14.57 
$ 7.90 
 
 
 
 
 
 
$ 4.76 
$ 15.85 
 
 
 
 
Allocation amount percentage
 
 
 
 
 
 
 
 
 
 
 
 
33.33% 
33.33% 
33.33% 
 
 
 
 
 
 
 
 
 
 
 
 
Performance period initiation date
 
 
 
 
 
 
 
 
 
 
 
 
Jan. 01, 2015 
Jan. 01, 2015 
Jan. 01, 2016 
 
 
 
 
 
 
 
 
 
 
 
 
Performance period expiration date
 
 
 
 
 
 
 
 
 
 
 
 
Dec. 31, 2017 
Dec. 31, 2017 
Dec. 31, 2017 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.00% 
100.00% 
Stock-Based Compensation - Summary of Fair Value of Stock Option Awards in Merger (Detail) (WRECO equity incentive plans [Member], WRECO Transaction [Member])
12 Months Ended
Dec. 31, 2016
2014 Grants [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Dividend yield
2.92% 
Expected volatility
31.71% 
Risk-free interest rate
1.57% 
Expected life (in years)
4 years 11 months 19 days 
2013 Grants[Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Dividend yield
2.23% 
Expected volatility
38.00% 
Risk-free interest rate
0.92% 
Expected life (in years)
4 years 11 months 19 days 
2012 Grants [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Dividend yield
2.94% 
Expected volatility
40.41% 
Risk-free interest rate
1.01% 
Expected life (in years)
5 years 3 months 29 days 
2011 Grants [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Dividend yield
2.48% 
Expected volatility
38.56% 
Risk-free interest rate
2.65% 
Expected life (in years)
5 years 8 months 23 days 
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, 2016
Dec. 31, 2015
Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
 
 
Total stock-based compensation
$ 12,612 
$ 11,935 
$ 7,679 
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, 2016
Dec. 31, 2015
Employee Stock Option [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Options, Outstanding, Balance
3,220,147 
 
Options, Granted
0 
 
Options, Exercised
(96,572)
 
Options, Forfeited
(152,205)
 
Options, Outstanding, Balance
2,971,370 
3,220,147 
Options exercisable at December 31, 2016
2,599,661 
 
Weighted Average Exercise Price, Outstanding, Balance
$ 13.12 
 
Weighted Average Exercise Price, Exercised
$ 9.47 
 
Weighted Average Exercise Price, Forfeited
$ 12.39 
 
Weighted Average Exercise Price, Outstanding, Balance
$ 13.12 
$ 13.12 
Weighted Average Exercise Price, Options exercisable at December 31, 2016
$ 13.08 
 
Weighted Average Remaining Contractual Life, Outstanding
4 years 4 months 24 days 
5 years 2 months 12 days 
Weighted Average Remaining Contractual Life, Options exercisable at December 31, 2016
4 years 
 
Aggregate Intrinsic Value, Outstanding, Balance
$ 1,568 
$ 3,081 
Aggregate Intrinsic Value, Outstanding, Options exercisable at December 31, 2016
$ 1,568 
 
Stock-Based Compensation - Summary of Fair Value of Stock Option Awards (Detail) (2013 Incentive Plan [Member], 2014 Grants [Member])
12 Months Ended
Dec. 31, 2014
2013 Incentive Plan [Member] |
2014 Grants [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Dividend yield
0.00% 
Expected volatility
63.01% 
Risk-free interest rate
1.96% 
Expected life (in years)
6 years 
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, 2016
Restricted Stock Units (RSUs) [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Nonvested Restricted Stock Units, Beginning Balance
1,958,033 
Nonvested Restricted Stock Units, Granted
1,904,389 
Nonvested Restricted Stock Units, Vested
(431,761)
Nonvested Restricted Stock Units, Forfeited
(17,942)
Nonvested Restricted Stock Units, Ending Balance
3,412,719 
Weighted Average Grant Date Fair Value, Beginning Balance
$ 12.21 
Weighted Average Grant Date Fair Value, Granted
$ 8.41 
Weighted Average Grant Date Fair Value, Vested
$ 14.53 
Weighted Average Grant Date Fair Value, Forfeited
$ 12.13 
Weighted Average Grant Date Fair Value, Ending Balance
$ 9.77 
Aggregate Intrinsic Value, Beginning Balance
$ 24,808 
Aggregate Intrinsic Value, Granted
21,862 
Aggregate Intrinsic Value, Ending Balance
$ 39,178 
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, 2016
Dec. 31, 2015
Dec. 31, 2014
Current:
 
 
 
Federal
$ 90,387 
$ 91,343 
$ (109,565)
State
8,744 
6,715 
5,339 
Total current taxes
99,131 
98,058 
(104,226)
Deferred:
 
 
 
Federal
5,749 
8,296 
147,797 
State
1,214 
5,725 
196 
Total deferred taxes
6,963 
14,021 
147,993 
Total income tax expense
$ 106,094 
$ 112,079 
$ 43,767 
Income Taxes - Additional Information (Detail) (USD $)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2014
Dec. 31, 2015
Income Tax Contingency [Line Items]
 
 
 
Effective tax rate differs from federal statutory rate
35.00% 
 
 
Deferred tax assets, net
$ 123,223,000 
 
$ 130,657,000 
Liabilities for uncertain tax positions
0 
 
307,000 
Valuation allowance related to deferred tax assets
323,000 
 
4,361,000 
Unpaid interest amount
0 
 
35,000 
Income tax provision that would have increased if computed on separate return basis
 
5,800,000 
 
State and Local Jurisdiction
 
 
 
Income Tax Contingency [Line Items]
 
 
 
Net operating loss carryforward
460,900,000 
 
 
Valuation allowance related to deferred tax assets
$ 323,000 
 
$ 4,400,000 
State and Local Jurisdiction |
Minimum [Member]
 
 
 
Income Tax Contingency [Line Items]
 
 
 
Net operating loss carryforward, expire date
Dec. 31, 2017 
 
 
State and Local Jurisdiction |
Maximum [Member]
 
 
 
Income Tax Contingency [Line Items]
 
 
 
Net operating loss carryforward, expire date
Dec. 31, 2034 
 
 
Income Taxes - Effective Tax Rate Differs from Federal Statutory Rate (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Income Tax Disclosure [Abstract]
 
 
 
Taxes at the U.S. federal statutory rate
$ 105,779 
$ 111,846 
$ 44,788 
State income taxes, net of federal tax impact
9,539 
9,627 
3,822 
Tax loss on the sale of WRI
0 
0 
(5,786)
Non-deductible transaction costs
305 
0 
2,594 
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount
(4,038)
(1,872)
0 
Other, net
(5,491)
(7,522)
(1,651)
Total income tax expense
$ 106,094 
$ 112,079 
$ 43,767 
Effective income tax rate
35.10% 
35.10% 
34.20% 
Income Taxes - Components of Deferred Income Tax Assets (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Deferred tax assets:
 
 
Impairment and other valuation reserves
$ 73,890 
$ 89,057 
Incentive compensation
8,322 
3,617 
Indirect costs capitalized
25,377 
20,266 
Net operating loss carryforwards (state)
24,583 
29,461 
Transaction costs
(924)
(833)
State taxes
2,985 
2,903 
Other costs and expenses
15,214 
13,641 
Gross deferred tax assets
149,447 
158,112 
Valuation allowance
(323)
(4,361)
Deferred tax assets, net of valuation allowance
149,124 
153,751 
Deferred tax liabilities:
 
 
Interest capitalized
(814)
268 
Basis difference in inventory
(14,186)
(14,128)
Fixed assets
(1,101)
1,274 
Intangibles
(8,456)
(9,015)
Other
(1,344)
(1,493)
Deferred tax liabilities
(25,901)
(23,094)
Net deferred tax assets
$ 123,223 
$ 130,657 
Income Taxes - Schedule of Gross Unrecognized Tax Benefits (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Income Tax Disclosure [Abstract]
 
 
Balance at beginning of year
$ 272 
$ 14,857 
Decreases related to prior year tax positions
(272)
(1,706)
Decreases related to current year tax positions
0 
(12,879)
Balance at end of year
$ 0 
$ 272 
Income Taxes - Schedule of Pro Forma Income from Continuing Operations and Pro Forma Earnings Per Share (Detail) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Income Tax Disclosure [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes as reported in the accompanying financial statements
 
 
 
 
 
 
 
 
$ 302,227 
$ 319,260 
$ 127,964 
Provision for income taxes assuming computation on a separate return basis
 
 
 
 
 
 
 
 
(106,094)
(112,079)
(49,553)
Pro forma income
 
 
 
 
 
 
 
 
196,133 
207,181 
78,411 
Net income attributable to noncontrolling interests
(224)
(311)
(267)
(160)
(281)
393 
(1,832)
0 
(962)
(1,720)
0 
Pro forma net income available to common stockholders
 
 
 
 
 
 
 
 
$ 195,171 
$ 205,461 
$ 78,411 
Pro forma earnings (loss) per share - basic (dollars per share)
 
 
 
 
 
 
 
 
$ 1.21 
$ 1.27 
$ 0.54 
Pro forma earnings (loss) per share - diluted (dollars per share)
 
 
 
 
 
 
 
 
$ 1.21 
$ 1.27 
$ 0.54 
Related Party Transactions - Schedule of Allocated Corporate General and Administrative Expenses (Detail) (Weyerhaeuser [Member], USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Weyerhaeuser [Member]
 
 
 
Related Party Transaction [Line Items]
 
 
 
General and administrative
$ 0 
$ 0 
$ 10,735 
Related Party Transactions - Additional Information (Detail) (USD $)
12 Months Ended 1 Months Ended 1 Months Ended 6 Months Ended 1 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Weyerhaeuser [Member]
Oct. 31, 2016
CALIFORNIA
Starwood Capital Group [Member]
lot
May 31, 2015
CALIFORNIA
Starwood Capital Group [Member]
lot
May 31, 2016
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
Jun. 30, 2014
COLORADO
Starwood Capital Group [Member]
lot
Related Party Transaction [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Payment to acquire mineral rights from WRECO
 
 
$ 4,800,000 
 
 
 
 
 
 
 
 
 
Payment to acquire land from WRECO
 
 
21,200,000 
 
 
 
 
 
 
 
 
 
Income tax liability to Weyerhaeuser
8,589,000 
8,900,000 
 
 
 
 
 
 
 
 
 
 
Number of lots acquired
 
 
 
27 
52 
 
161 
93 
126 
257 
46 
46 
Payment for acquiring lots
 
 
 
$ 9,600,000 
$ 18,400,000 
 
$ 60,000,000 
$ 25,500,000 
$ 4,200,000 
$ 8,600,000 
$ 2,800,000 
$ 2,700,000 
Percentage of common stock
 
 
 
 
 
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, 2016
Dec. 31, 2015
Dec. 31, 2014
Supplemental disclosure of cash flow information:
 
 
 
Interest, net of amounts capitalized of $50,029, $60,964 and $38,975
$ 0 
$ 0 
$ 1,372 
Income taxes
117,215 
69,917 
43,005 
Supplemental disclosures of noncash activities:
 
 
 
Increase in real estate inventory due to distribution of land from an unconsolidated joint venture
0 
0 
5,052 
Distribution to Weyerhaeuser of excluded assets and liabilities
0 
0 
126,687 
Amounts owed to Weyerhaeuser related to the tax sharing agreement
0 
0 
15,688 
Noncash settlement of debt payable to Weyerhaeuser
0 
0 
70,082 
Accrued liabilities related to the purchase of operating properties and equipment
1,828 
3,976 
0 
Amortization of senior note discount capitalized to real estate inventory
1,815 
1,552 
804 
Amortization of deferred loan costs capitalized to real estate inventory
4,642 
3,820 
0 
Effect of net consolidation and de-consolidation of variable interest entities:
 
 
 
(Decrease) increase in consolidated real estate inventory not owned
(316)
5,297 
6,343 
Increase in deposits on real estate under option or contract and other assets
0 
0 
780 
Increase in accrued expenses and other liabilities
0 
300 
0 
Increase (decrease) in noncontrolling interests
316 
(5,597)
(7,123)
Merger:
 
 
 
Fair value of assets, excluding cash acquired
0 
0 
724,995 
Liabilities assumed
$ 0 
$ 0 
$ (276,347)
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, 2016
Dec. 31, 2015
Dec. 31, 2014
Supplemental Cash Flow Elements [Abstract]
 
 
 
Interest capitalized
$ 53,028 
$ 60,964 
$ 38,975 
Supplemental Guarantor Information - Condensed Consolidating Balance Sheet (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Assets
 
 
 
 
Cash and cash equivalents
$ 208,657 
$ 214,485 
$ 170,629 
$ 4,510 
Receivables
82,500 
43,710 
 
 
Intercompany receivables
0 
0 
 
 
Real estate inventories
2,910,627 
2,519,273 
 
 
Investments in unconsolidated entities
17,546 
18,999 
 
 
Goodwill and other intangible assets, net
161,495 
162,029 
 
 
Investments in subsidiaries
0 
0 
 
 
Deferred tax assets, net
123,223 
130,657 
 
 
Other assets
60,592 
48,918 
 
 
Total assets
3,564,640 
3,138,071 
 
 
Liabilities
 
 
 
 
Accounts payable
70,252 
64,840 
 
 
Intercompany payables
0 
0 
 
 
Accrued expenses and other liabilities
263,845 
216,263 
 
 
Unsecured revolving credit facility
200,000 
299,392 
 
 
Seller financed loans
13,726 
2,434 
 
 
Senior notes
1,168,307 
868,679 
 
 
Total liabilities
1,716,130 
1,451,608 
 
 
Equity
 
 
 
 
Total stockholders’ equity
1,829,447 
1,664,683 
 
 
Noncontrolling interests
19,063 
21,780 
 
 
Total equity
1,848,510 
1,686,463 
1,472,476 
825,517 
Total liabilities and equity
3,564,640 
3,138,071 
 
 
Reporting Entity [Member] |
Issuer [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
141,568 
147,771 
105,888 
0 
Receivables
26,692 
17,358 
 
 
Intercompany receivables
775,321 
783,956 
 
 
Real estate inventories
868,088 
657,221 
 
 
Investments in unconsolidated entities
0 
0 
 
 
Goodwill and other intangible assets, net
156,604 
156,604 
 
 
Investments in subsidiaries
1,285,295 
1,093,261 
 
 
Deferred tax assets, net
15,644 
19,061 
 
 
Other assets
11,401 
12,219 
 
 
Total assets
3,280,613 
2,887,451 
 
 
Liabilities
 
 
 
 
Accounts payable
20,637 
20,444 
 
 
Intercompany payables
0 
0 
 
 
Accrued expenses and other liabilities
48,496 
32,219 
 
 
Unsecured revolving credit facility
200,000 
299,392 
 
 
Seller financed loans
13,726 
2,034 
 
 
Senior notes
1,168,307 
868,679 
 
 
Total liabilities
1,451,166 
1,222,768 
 
 
Equity
 
 
 
 
Total stockholders’ equity
1,829,447 
1,664,683 
 
 
Noncontrolling interests
0 
0 
 
 
Total equity
1,829,447 
1,664,683 
 
 
Total liabilities and equity
3,280,613 
2,887,451 
 
 
Reporting Entity [Member] |
Guarantor Subsidiaries [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
67,089 
66,714 
64,741 
4,510 
Receivables
55,808 
26,352 
 
 
Intercompany receivables
0 
0 
 
 
Real estate inventories
2,042,539 
1,862,052 
 
 
Investments in unconsolidated entities
17,546 
18,999 
 
 
Goodwill and other intangible assets, net
4,891 
5,425 
 
 
Investments in subsidiaries
0 
0 
 
 
Deferred tax assets, net
107,579 
111,596 
 
 
Other assets
49,191 
36,699 
 
 
Total assets
2,344,643 
2,127,837 
 
 
Liabilities
 
 
 
 
Accounts payable
49,615 
44,396 
 
 
Intercompany payables
775,321 
783,956 
 
 
Accrued expenses and other liabilities
215,349 
184,044 
 
 
Unsecured revolving credit facility
0 
0 
 
 
Seller financed loans
0 
400 
 
 
Senior notes
0 
0 
 
 
Total liabilities
1,040,285 
1,012,796 
 
 
Equity
 
 
 
 
Total stockholders’ equity
1,285,295 
1,093,261 
 
 
Noncontrolling interests
19,063 
21,780 
 
 
Total equity
1,304,358 
1,115,041 
 
 
Total liabilities and equity
2,344,643 
2,127,837 
 
 
Consolidating Adjustments [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
0 
0 
0 
0 
Receivables
0 
0 
 
 
Intercompany receivables
(775,321)
(783,956)
 
 
Real estate inventories
0 
0 
 
 
Investments in unconsolidated entities
0 
0 
 
 
Goodwill and other intangible assets, net
0 
0 
 
 
Investments in subsidiaries
(1,285,295)
(1,093,261)
 
 
Deferred tax assets, net
0 
0 
 
 
Other assets
0 
0 
 
 
Total assets
(2,060,616)
(1,877,217)
 
 
Liabilities
 
 
 
 
Accounts payable
0 
0 
 
 
Intercompany payables
(775,321)
(783,956)
 
 
Accrued expenses and other liabilities
0 
0 
 
 
Unsecured revolving credit facility
0 
0 
 
 
Seller financed loans
0 
0 
 
 
Senior notes
0 
0 
 
 
Total liabilities
(775,321)
(783,956)
 
 
Equity
 
 
 
 
Total stockholders’ equity
(1,285,295)
(1,093,261)
 
 
Noncontrolling interests
0 
0 
 
 
Total equity
(1,285,295)
(1,093,261)
 
 
Total liabilities and equity
$ (2,060,616)
$ (1,877,217)
 
 
Supplemental Guarantor Information - Condensed Consolidating Statement of Operations (Detail) (USD $)
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Homebuilding:
 
 
 
 
 
 
 
 
 
 
 
Home sales revenue
 
 
 
 
 
 
 
 
$ 2,329,336,000 
$ 2,291,264,000 
$ 1,646,274,000 
Land and lot sales revenue
 
 
 
 
 
 
 
 
72,272,000 
101,284,000 
47,660,000 
Other operations revenue
 
 
 
 
 
 
 
 
2,314,000 
7,601,000 
9,682,000 
Total revenues
773,753,000 
582,029,000 
625,222,000 
424,138,000 
880,243,000 
648,141,000 
495,517,000 
377,258,000 
2,403,922,000 
2,400,149,000 
1,703,616,000 
Cost of home sales
 
 
 
 
 
 
 
 
1,836,327,000 
1,808,776,000 
1,318,617,000 
Cost of land and lot sales
 
 
 
 
 
 
 
 
17,367,000 
35,089,000 
37,906,000 
Other operations expense
 
 
 
 
 
 
 
 
2,247,000 
4,360,000 
3,346,000 
Impairments and lot option abandonments
 
 
 
 
 
 
 
 
1,470,000 
1,930,000 
2,515,000 
Sales and marketing
 
 
 
 
 
 
 
 
127,903,000 
116,217,000 
103,600,000 
General and administrative
 
 
 
 
 
 
 
 
123,470,000 
117,496,000 
82,358,000 
Restructuring charges
 
 
 
 
 
 
 
 
649,000 
3,329,000 
10,543,000 
Homebuilding income from operations
 
 
 
 
 
 
 
 
295,959,000 
314,882,000 
147,246,000 
Equity in loss of unconsolidated entities
 
 
 
 
 
 
 
 
179,000 
1,460,000 
(278,000)
Transaction expenses
 
 
 
 
 
 
 
 
0 
0 
(17,960,000)
Other income (loss), net
 
 
 
 
 
 
 
 
312,000 
858,000 
(1,019,000)
Homebuilding income before income taxes
 
 
 
 
 
 
 
 
296,450,000 
317,200,000 
127,989,000 
Financial Services:
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
1,220,000 
1,010,000 
0 
Expenses
 
 
 
 
 
 
 
 
253,000 
181,000 
15,000 
Equity in income (loss) of unconsolidated entities
 
 
 
 
 
 
 
 
4,810,000 
1,231,000 
(10,000)
Financial services income (loss) before income taxes
 
 
 
 
 
 
 
 
5,777,000 
2,060,000 
(25,000)
Income before income taxes
 
 
 
 
 
 
 
 
302,227,000 
319,260,000 
127,964,000 
Provision for income taxes
 
 
 
 
 
 
 
 
(106,094,000)
(112,079,000)
(43,767,000)
Equity of net income (loss) of subsidiaries
 
 
 
 
 
 
 
 
0 
0 
0 
Net income
58,085,000 
35,145,000 
74,193,000 
28,710,000 
85,353,000 
49,769,000 
56,762,000 
15,297,000 
196,133,000 
207,181,000 
84,197,000 
Net income attributable to noncontrolling interests
(224,000)
(311,000)
(267,000)
(160,000)
(281,000)
393,000 
(1,832,000)
0 
(962,000)
(1,720,000)
0 
Denominator:
 
 
 
 
 
 
 
 
195,171,000 
205,461,000 
84,197,000 
Reporting Entity [Member] |
Issuer [Member]
 
 
 
 
 
 
 
 
 
 
 
Homebuilding:
 
 
 
 
 
 
 
 
 
 
 
Home sales revenue
 
 
 
 
 
 
 
 
723,186,000 
774,005,000 
324,219,000 
Land and lot sales revenue
 
 
 
 
 
 
 
 
0 
0 
0 
Other operations revenue
 
 
 
 
 
 
 
 
0 
0 
(12,000)
Total revenues
 
 
 
 
 
 
 
 
723,186,000 
774,005,000 
324,207,000 
Cost of home sales
 
 
 
 
 
 
 
 
607,316,000 
624,791,000 
271,579,000 
Cost of land and lot sales
 
 
 
 
 
 
 
 
0 
0 
0 
Other operations expense
 
 
 
 
 
 
 
 
0 
0 
0 
Sales and marketing
 
 
 
 
 
 
 
 
29,092,000 
26,792,000 
9,678,000 
General and administrative
 
 
 
 
 
 
 
 
59,327,000 
55,611,000 
16,532,000 
Restructuring charges
 
 
 
 
 
 
 
 
0 
(169,000)
0 
Homebuilding income from operations
 
 
 
 
 
 
 
 
27,451,000 
66,980,000 
26,418,000 
Equity in loss of unconsolidated entities
 
 
 
 
 
 
 
 
0 
0 
0 
Transaction expenses
 
 
 
 
 
 
 
 
 
 
(7,138,000)
Other income (loss), net
 
 
 
 
 
 
 
 
149,000 
(127,000)
17,000 
Homebuilding income before income taxes
 
 
 
 
 
 
 
 
27,600,000 
66,853,000 
19,297,000 
Financial Services:
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
0 
0 
0 
Expenses
 
 
 
 
 
 
 
 
0 
0 
0 
Equity in income (loss) of unconsolidated entities
 
 
 
 
 
 
 
 
0 
0 
0 
Financial services income (loss) before income taxes
 
 
 
 
 
 
 
 
0 
0 
0 
Income before income taxes
 
 
 
 
 
 
 
 
27,600,000 
66,853,000 
19,297,000 
Provision for income taxes
 
 
 
 
 
 
 
 
(11,322,000)
(20,001,000)
(11,586,000)
Equity of net income (loss) of subsidiaries
 
 
 
 
 
 
 
 
178,893,000 
158,609,000 
76,486,000 
Net income
 
 
 
 
 
 
 
 
195,171,000 
205,461,000 
 
Net income attributable to noncontrolling interests
 
 
 
 
 
 
 
 
0 
0 
 
Denominator:
 
 
 
 
 
 
 
 
195,171,000 
205,461,000 
84,197,000 
Reporting Entity [Member] |
Guarantor Subsidiaries [Member]
 
 
 
 
 
 
 
 
 
 
 
Homebuilding:
 
 
 
 
 
 
 
 
 
 
 
Home sales revenue
 
 
 
 
 
 
 
 
1,606,150,000 
1,517,259,000 
1,322,055,000 
Land and lot sales revenue
 
 
 
 
 
 
 
 
72,272,000 
101,284,000 
47,660,000 
Other operations revenue
 
 
 
 
 
 
 
 
2,314,000 
7,601,000 
9,694,000 
Total revenues
 
 
 
 
 
 
 
 
1,680,736,000 
1,626,144,000 
1,379,409,000 
Cost of home sales
 
 
 
 
 
 
 
 
1,229,011,000 
1,183,985,000 
1,047,038,000 
Cost of land and lot sales
 
 
 
 
 
 
 
 
17,367,000 
35,089,000 
37,906,000 
Other operations expense
 
 
 
 
 
 
 
 
2,247,000 
4,360,000 
3,346,000 
Sales and marketing
 
 
 
 
 
 
 
 
98,811,000 
89,425,000 
93,922,000 
General and administrative
 
 
 
 
 
 
 
 
64,143,000 
61,885,000 
65,826,000 
Restructuring charges
 
 
 
 
 
 
 
 
649,000 
3,498,000 
10,543,000 
Homebuilding income from operations
 
 
 
 
 
 
 
 
268,508,000 
247,902,000 
120,828,000 
Equity in loss of unconsolidated entities
 
 
 
 
 
 
 
 
179,000 
1,460,000 
(278,000)
Transaction expenses
 
 
 
 
 
 
 
 
 
 
(10,822,000)
Other income (loss), net
 
 
 
 
 
 
 
 
163,000 
985,000 
(1,036,000)
Homebuilding income before income taxes
 
 
 
 
 
 
 
 
268,850,000 
250,347,000 
108,692,000 
Financial Services:
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
1,220,000 
1,010,000 
0 
Expenses
 
 
 
 
 
 
 
 
253,000 
181,000 
15,000 
Equity in income (loss) of unconsolidated entities
 
 
 
 
 
 
 
 
4,810,000 
1,231,000 
(10,000)
Financial services income (loss) before income taxes
 
 
 
 
 
 
 
 
5,777,000 
2,060,000 
(25,000)
Income before income taxes
 
 
 
 
 
 
 
 
274,627,000 
252,407,000 
108,667,000 
Provision for income taxes
 
 
 
 
 
 
 
 
(94,772,000)
(92,078,000)
(32,181,000)
Equity of net income (loss) of subsidiaries
 
 
 
 
 
 
 
 
0 
0 
0 
Net income
 
 
 
 
 
 
 
 
179,855,000 
160,329,000 
 
Net income attributable to noncontrolling interests
 
 
 
 
 
 
 
 
(962,000)
(1,720,000)
 
Denominator:
 
 
 
 
 
 
 
 
178,893,000 
158,609,000 
76,486,000 
Consolidating Adjustments [Member]
 
 
 
 
 
 
 
 
 
 
 
Homebuilding:
 
 
 
 
 
 
 
 
 
 
 
Home sales revenue
 
 
 
 
 
 
 
 
0 
0 
0 
Land and lot sales revenue
 
 
 
 
 
 
 
 
0 
0 
0 
Other operations revenue
 
 
 
 
 
 
 
 
0 
0 
0 
Total revenues
 
 
 
 
 
 
 
 
0 
0 
0 
Cost of home sales
 
 
 
 
 
 
 
 
0 
0 
0 
Cost of land and lot sales
 
 
 
 
 
 
 
 
0 
0 
0 
Other operations expense
 
 
 
 
 
 
 
 
0 
0 
0 
Sales and marketing
 
 
 
 
 
 
 
 
0 
0 
0 
General and administrative
 
 
 
 
 
 
 
 
0 
0 
0 
Restructuring charges
 
 
 
 
 
 
 
 
0 
0 
0 
Homebuilding income from operations
 
 
 
 
 
 
 
 
0 
0 
0 
Equity in loss of unconsolidated entities
 
 
 
 
 
 
 
 
0 
0 
0 
Transaction expenses
 
 
 
 
 
 
 
 
 
 
0 
Other income (loss), net
 
 
 
 
 
 
 
 
0 
0 
0 
Homebuilding income before income taxes
 
 
 
 
 
 
 
 
0 
0 
0 
Financial Services:
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
0 
0 
0 
Expenses
 
 
 
 
 
 
 
 
0 
0 
0 
Equity in income (loss) of unconsolidated entities
 
 
 
 
 
 
 
 
0 
0 
0 
Financial services income (loss) before income taxes
 
 
 
 
 
 
 
 
0 
0 
0 
Income before income taxes
 
 
 
 
 
 
 
 
0 
0 
0 
Provision for income taxes
 
 
 
 
 
 
 
 
0 
0 
0 
Equity of net income (loss) of subsidiaries
 
 
 
 
 
 
 
 
(178,893,000)
(158,609,000)
(76,486,000)
Net income
 
 
 
 
 
 
 
 
(178,893,000)
(158,609,000)
 
Net income attributable to noncontrolling interests
 
 
 
 
 
 
 
 
0 
0 
 
Denominator:
 
 
 
 
 
 
 
 
$ (178,893,000)
$ (158,609,000)
$ (76,486,000)
Supplemental Guarantor Information - Condensed Consolidating Statement of Cash Flows (Detail) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Cash flows from operating activities
 
 
 
Net cash provided by operating activities
$ (158,310)
$ 31,005 
$ (113,370)
Cash flows from investing activities:
 
 
 
Purchases of property and equipment
(3,985)
(809)
(7,850)
Cash acquired in the Merger
0 
0 
53,800 
Investments in unconsolidated entities
(32)
(1,468)
(1,311)
Distributions from unconsolidated entities
0 
1,415 
0 
Intercompany
0 
0 
0 
Net cash (used in) provided by investing activities
(4,008)
(862)
44,662 
Proceeds from sale of property and equipment
9 
0 
23 
Cash flows from financing activities:
 
 
 
Borrowings from debt
541,069 
140,000 
987,298 
Repayment of debt
(330,858)
(112,851)
(53,051)
Debt issuance costs
(5,062)
(2,688)
(23,000)
Net repayments of debt held by variable interest entities
(2,442)
(6,769)
3,903 
Contributions from noncontrolling interests
1,955 
5,990 
1,895 
Distributions to noncontrolling interests
(5,318)
(9,823)
(19,143)
Proceeds from issuance of common stock under share-based awards
587 
1,616 
176 
Excess tax benefits of share-based awards
0 
428 
1,757 
Minimum tax withholding paid on behalf of employees for share-based awards
(1,359)
(2,190)
0 
Share repurchases
(42,082)
 
 
Intercompany
0 
0 
0 
Net cash provided by financing activities
156,490 
13,713 
234,827 
Bridge commitment fee
0 
0 
(10,322)
Changes in debt payable to Weyerhaeuser
0 
0 
(623,589)
Change in book overdrafts
0 
0 
(22,491)
Distributions to Weyerhaeuser
0 
0 
(8,606)
Net (decrease) increase in cash and cash equivalents
(5,828)
43,856 
166,119 
Cash and cash equivalents - beginning of year
214,485 
170,629 
4,510 
Cash and cash equivalents - end of year
208,657 
214,485 
170,629 
Reporting Entity [Member] |
Issuer [Member]
 
 
 
Cash flows from operating activities
 
 
 
Net cash provided by operating activities
(179,397)
1,714 
(62,715)
Cash flows from investing activities:
 
 
 
Purchases of property and equipment
(1,603)
(1,063)
(2,293)
Cash acquired in the Merger
 
 
53,800 
Investments in unconsolidated entities
0 
0 
0 
Distributions from unconsolidated entities
 
0 
 
Intercompany
12,102 
16,717 
69,971 
Net cash (used in) provided by investing activities
10,499 
15,654 
121,478 
Proceeds from sale of property and equipment
0 
 
0 
Cash flows from financing activities:
 
 
 
Borrowings from debt
541,069 
140,000 
100,000 
Repayment of debt
(330,458)
(112,651)
(53,051)
Debt issuance costs
(5,062)
(2,688)
0 
Net repayments of debt held by variable interest entities
0 
0 
0 
Contributions from noncontrolling interests
0 
0 
0 
Distributions to noncontrolling interests
0 
0 
0 
Proceeds from issuance of common stock under share-based awards
587 
1,616 
176 
Excess tax benefits of share-based awards
 
428 
0 
Minimum tax withholding paid on behalf of employees for share-based awards
(1,359)
(2,190)
 
Share repurchases
(42,082)
 
 
Intercompany
0 
0 
0 
Net cash provided by financing activities
162,695 
24,515 
47,125 
Bridge commitment fee
 
 
0 
Changes in debt payable to Weyerhaeuser
 
 
0 
Change in book overdrafts
 
 
0 
Distributions to Weyerhaeuser
 
 
0 
Net (decrease) increase in cash and cash equivalents
(6,203)
41,883 
105,888 
Cash and cash equivalents - beginning of year
147,771 
105,888 
0 
Cash and cash equivalents - end of year
141,568 
147,771 
105,888 
Reporting Entity [Member] |
Guarantor Subsidiaries [Member]
 
 
 
Cash flows from operating activities
 
 
 
Net cash provided by operating activities
21,087 
29,291 
(50,655)
Cash flows from investing activities:
 
 
 
Purchases of property and equipment
(2,382)
254 
(5,557)
Cash acquired in the Merger
 
 
0 
Investments in unconsolidated entities
(32)
(1,468)
(1,311)
Distributions from unconsolidated entities
 
1,415 
 
Intercompany
0 
0 
0 
Net cash (used in) provided by investing activities
(2,405)
201 
(6,845)
Proceeds from sale of property and equipment
9 
 
23 
Cash flows from financing activities:
 
 
 
Borrowings from debt
0 
0 
887,298 
Repayment of debt
(400)
(200)
0 
Debt issuance costs
0 
0 
(23,000)
Net repayments of debt held by variable interest entities
(2,442)
(6,769)
3,903 
Contributions from noncontrolling interests
1,955 
5,990 
1,895 
Distributions to noncontrolling interests
(5,318)
(9,823)
(19,143)
Proceeds from issuance of common stock under share-based awards
0 
0 
0 
Excess tax benefits of share-based awards
 
0 
1,757 
Minimum tax withholding paid on behalf of employees for share-based awards
0 
0 
 
Share repurchases
0 
 
 
Intercompany
(12,102)
(16,717)
(69,971)
Net cash provided by financing activities
(18,307)
(27,519)
117,731 
Bridge commitment fee
 
 
(10,322)
Changes in debt payable to Weyerhaeuser
 
 
(623,589)
Change in book overdrafts
 
 
(22,491)
Distributions to Weyerhaeuser
 
 
(8,606)
Net (decrease) increase in cash and cash equivalents
375 
1,973 
60,231 
Cash and cash equivalents - beginning of year
66,714 
64,741 
4,510 
Cash and cash equivalents - end of year
67,089 
66,714 
64,741 
Consolidating Adjustments [Member]
 
 
 
Cash flows from operating activities
 
 
 
Net cash provided by operating activities
0 
0 
0 
Cash flows from investing activities:
 
 
 
Purchases of property and equipment
0 
0 
0 
Cash acquired in the Merger
 
 
0 
Investments in unconsolidated entities
0 
0 
0 
Distributions from unconsolidated entities
 
0 
 
Intercompany
(12,102)
(16,717)
(69,971)
Net cash (used in) provided by investing activities
(12,102)
(16,717)
(69,971)
Proceeds from sale of property and equipment
0 
 
0 
Cash flows from financing activities:
 
 
 
Borrowings from debt
0 
0 
0 
Repayment of debt
0 
0 
0 
Debt issuance costs
0 
0 
0 
Net repayments of debt held by variable interest entities
0 
0 
0 
Contributions from noncontrolling interests
0 
0 
0 
Distributions to noncontrolling interests
0 
0 
0 
Proceeds from issuance of common stock under share-based awards
0 
0 
0 
Excess tax benefits of share-based awards
 
0 
0 
Minimum tax withholding paid on behalf of employees for share-based awards
0 
0 
 
Share repurchases
0 
 
 
Intercompany
12,102 
16,717 
69,971 
Net cash provided by financing activities
12,102 
16,717 
69,971 
Bridge commitment fee
 
 
0 
Changes in debt payable to Weyerhaeuser
 
 
0 
Change in book overdrafts
 
 
0 
Distributions to Weyerhaeuser
 
 
0 
Net (decrease) increase in cash and cash equivalents
0 
0 
0 
Cash and cash equivalents - beginning of year
0 
0 
0 
Cash and cash equivalents - end of year
$ 0 
$ 0 
$ 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, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Quarterly Financial Information Disclosure [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Total revenues
$ 773,753 
$ 582,029 
$ 625,222 
$ 424,138 
$ 880,243 
$ 648,141 
$ 495,517 
$ 377,258 
$ 2,403,922 
$ 2,400,149 
$ 1,703,616 
Cost of homes sales and other
617,684 
464,632 
447,781 
325,844 
680,006 
511,564 
353,878 
302,777 
 
 
 
Impairments and lot option abandonments
 
 
 
 
 
 
 
 
1,470 
1,930 
2,515 
Gross margin
156,069 
117,397 
177,441 
98,294 
200,237 
136,577 
141,639 
74,481 
 
 
 
Net income
58,085 
35,145 
74,193 
28,710 
85,353 
49,769 
56,762 
15,297 
196,133 
207,181 
84,197 
Net (income) loss attributable to noncontrolling interests
(224)
(311)
(267)
(160)
(281)
393 
(1,832)
0 
(962)
(1,720)
0 
Net income available to common stockholders
$ 57,861 
$ 34,834 
$ 73,926 
$ 28,550 
$ 85,072 
$ 50,162 
$ 54,930 
$ 15,297 
$ 195,171 
$ 205,461 
$ 84,197 
Earnings per share
 
 
 
 
 
 
 
 
 
 
 
Basic (in dollars per share)
$ 0.36 
$ 0.22 
$ 0.46 
$ 0.18 
$ 0.53 
$ 0.31 
$ 0.34 
$ 0.09 
$ 1.21 
$ 1.27 
$ 0.58 
Diluted (in dollars per share)
$ 0.36 
$ 0.22 
$ 0.46 
$ 0.18 
$ 0.52 
$ 0.31 
$ 0.34 
$ 0.09 
$ 1.21 
$ 1.27 
$ 0.58