Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2020	Apr. 10, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2020
Document Transition Report	false
Entity File Number	1-35796
Entity Registrant Name	TRI Pointe Group, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	61-1763235
Entity Address, Address Line One	19540 Jamboree Road
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	Irvine
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92612
City Area Code	949
Local Phone Number	438-1400
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	TPH
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		130,236,981
Entity Central Index Key	0001561680
Amendment Flag	false
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2020
Current Fiscal Year End Date	--12-31

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Assets
Cash and cash equivalents	$ 624,129	$ 329,011
Receivables	83,701	69,276
Real estate inventories	3,194,148	3,065,436
Investments in unconsolidated entities	11,091	11,745
Goodwill and other intangible assets, net	159,759	159,893
Deferred tax assets, net	46,266	49,904
Other assets	173,959	173,425
Total assets	4,293,053	3,858,690
Liabilities
Accounts payable	77,275	66,120
Accrued expenses and other liabilities	315,560	322,043
Loans payable	750,000	250,000
Senior notes, net	1,034,925	1,033,985
Total liabilities	2,177,760	1,672,148
Commitments and contingencies (Note 13)
Stockholders’ equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized; no shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively	0	0
Common stock, $0.01 par value, 500,000,000 shares authorized; 130,236,981 and 136,149,633 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively	1,302	1,361
Additional paid-in capital	478,122	581,195
Retained earnings	1,635,857	1,603,974
Total stockholders’ equity	2,115,281	2,186,530
Noncontrolling interests	12	12
Total equity	2,115,293	2,186,542
Total liabilities and equity	$ 4,293,053	$ 3,858,690

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (shares)	50,000,000	50,000,000
Preferred stock, shares issued (shares)	0	0
Preferred stock, shares outstanding (shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (shares)	500,000,000	500,000,000
Common stock, shares issued (shares)	130,236,981	136,149,663
Common stock, shares outstanding (shares)	130,236,981	136,149,663

Consolidated Statements of Operations (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Total revenues	$ 597,050	$ 494,632
Other operations expense	624	590
Sales and marketing	42,637	38,989
General and administrative	39,837	38,597
Homebuilding income from operations	39,274	(6,877)
Equity in loss of unconsolidated entities	(14)	(25)
Other income (expense), net	373	6,241
Homebuilding income (loss) before income taxes	39,633	(661)
Equity in income of unconsolidated entities	1,556	775
Financial services income before income taxes	2,071	756
Income before income taxes	41,704	95
Provision for income taxes	(9,821)	(24)
Net income	$ 31,883	$ 71
Earnings per share
Basic (in dollars per share)	$ 0.24	$ 0.00
Diluted (in dollars per share)	$ 0.24	$ 0.00
Weighted average shares outstanding
Basic (shares)	134,361,148	141,865,270
Diluted (shares)	135,038,481	142,390,163
Homebuilding
Total revenues	$ 595,456	$ 494,330
Home sales
Home sales and Land and lot sales revenue	594,838	492,703
Cost of sales and expenses	472,882	421,536
Land and lots
Home sales and Land and lot sales revenue	0	1,029
Cost of sales and expenses	202	1,495
Other operations
Total revenues	618	598
Financial Services
Home sales and Land and lot sales revenue	1,594	302
Total revenues	1,594	302
Cost of sales and expenses	$ 1,079	$ 321

Consolidated Statements of Equity (unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Total Stockholders’ Equity	Noncontrolling Interests
Beginning Balance at Dec. 31, 2018	$ 2,056,937	$ 1,417	$ 658,720	$ 1,396,787	$ 2,056,924	$ 13
Beginning Balance (shares) at Dec. 31, 2018		141,661,713
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	71			71	71
Shares issued under share-based awards	198	$ 5	193		198
Shares issued under share-based awards (shares)		548,434
Minimum tax withholding paid on behalf of employees for restricted stock units	(3,605)		(3,605)		(3,605)
Stock-based compensation expense	3,435		3,435		3,435
Ending Balance at Mar. 31, 2019	2,057,036	$ 1,422	658,743	1,396,858	2,057,023	13
Ending Balance (shares) at Mar. 31, 2019		142,210,147
Beginning Balance at Dec. 31, 2019	$ 2,186,542	$ 1,361	581,195	1,603,974	2,186,530	12
Beginning Balance (shares) at Dec. 31, 2019	136,149,663	136,149,633
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 31,883			31,883	31,883
Shares issued under share-based awards	690	$ 7	683		690
Shares issued under share-based awards (shares)		645,671
Minimum tax withholding paid on behalf of employees for restricted stock units	(5,446)		(5,446)		(5,446)
Stock-based compensation expense	3,625		3,625		3,625
Share repurchases	(102,001)	$ (66)	(101,935)		(102,001)
Share repurchases (Shares)		(6,558,323)
Ending Balance at Mar. 31, 2020	$ 2,115,293	$ 1,302	$ 478,122	$ 1,635,857	$ 2,115,281	$ 12
Ending Balance (shares) at Mar. 31, 2020	130,236,981	130,236,981

Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net income	$ 31,883	$ 71
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	5,456	5,085
Equity in income of unconsolidated entities, net	(1,542)	(750)
Deferred income taxes, net	3,638	7
Amortization of stock-based compensation	3,625	3,435
Charges for impairments and lot option abandonments	349	5,202
Changes in assets and liabilities:
Real estate inventories	(127,509)	(29,695)
Receivables	(14,425)	(6,642)
Other assets	1,154	(5,476)
Accounts payable	11,155	(14,708)
Accrued expenses and other liabilities	(5,589)	(73,446)
Returns on investments in unconsolidated entities, net	2,831	1,992
Net cash used in operating activities	(88,974)	(114,925)
Cash flows from investing activities:
Purchases of property and equipment	(8,239)	(7,224)
Proceeds from sale of property and equipment	17	7
Investments in unconsolidated entities	(929)	(231)
Net cash used in investing activities	(9,151)	(7,448)
Cash flows from financing activities:
Borrowings from debt	500,000
Repayment of debt		(10)
Debt issuance costs	0	(3,124)
Proceeds from issuance of common stock under share-based awards	690	198
Minimum tax withholding paid on behalf of employees for share-based awards	(5,446)	(3,605)
Share repurchases	(102,001)	0
Net cash provided by (used in) financing activities	393,243	(6,541)
Net increase (decrease) in cash and cash equivalents	295,118	(128,914)
Cash and cash equivalents–beginning of period	329,011	277,696
Cash and cash equivalents–end of period	$ 624,129	$ 148,782

Organization, Basis of Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization, Basis of Presentation and Summary of Significant Accounting Policies	Organization, Basis of Presentation and Summary of Significant Accounting Policies Organization TRI Pointe is engaged in the design, construction and sale of innovative single-family attached and detached homes through its portfolio of six quality brands across ten states, including Maracay in Arizona, Pardee Homes in California and Nevada, Quadrant Homes in Washington, Trendmaker Homes in Texas, TRI Pointe Homes in California, Colorado and the Carolinas and Winchester Homes in Maryland and Virginia. Basis of Presentation The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They should be read in conjunction with our consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019. In the opinion of management, all adjustments consisting of normal recurring adjustments, necessary for a fair presentation with respect to interim financial statements, have been included. The results for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for the full year ending December 31, 2020 due to seasonal variations and other factors, such as the effects of the novel coronavirus (“COVID-19”) and its influence on our future results. The consolidated financial statements include the accounts of TRI Pointe Group and its wholly owned subsidiaries, as well as other entities in which TRI Pointe Group has a controlling interest and variable interest entities (“VIEs”) in which TRI Pointe Group is the primary beneficiary. The noncontrolling interests as of March 31, 2020 and December 31, 2019 represent the outside owners’ interests in the Company’s consolidated entities. All significant intercompany accounts have been eliminated upon consolidation. Use of Estimates Our financial statements have been prepared in accordance with GAAP. The preparation of these financial statements requires our management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from our estimates. Revenue Recognition We recognize revenue in accordance with Accounting Standards Topic 606 (“ASC 606”), Revenue from Contracts with Customers. Under ASC 606, we apply the following steps to determine the timing and amount of revenue to recognize: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. Home sales revenue We generate the majority of our total revenues from home sales, which consists of our core business operation of building and delivering completed homes to homebuyers. Home sales revenue and related profit is generally recognized when title to and possession of the home is transferred to the homebuyer at the home closing date. Our performance obligation to deliver the agreed-upon home is generally satisfied in less than one year from the original contract date. Included in home sales revenue are forfeited deposits, which occur when homebuyers cancel home purchase contracts that include a nonrefundable deposit. Both revenue from forfeited deposits and deferred revenue resulting from uncompleted performance obligations existing at the time we deliver new homes to our homebuyers are immaterial. Land and lot sales revenue Historically, we have generated land and lot sales revenue from a small number of transactions, although in some years we have realized a significant amount of revenue and gross margin. We do not expect our future land and lot sales revenue to be material, but we still consider these sales to be an ordinary part of our business, thus meeting the definition of contracts with customers. Similar to our home sales, revenue from land and lot sales is typically fully recognized when the land and lot sales transactions are consummated, at which time no further performance obligations are left to be satisfied. Some of our historical land and lot sales have included future profit participation rights. We will recognize future land and lot sales revenue in the periods in which all closing conditions are met, subject to the constraint on variable consideration related to profit participation rights, if such rights exist in the sales contract. Other operations revenue The majority of our homebuilding other operations revenue relates to a ground lease at our Quadrant Homes reporting segment. We are responsible for making lease payments to the landowner, and we collect sublease payments from the buyers of the buildings. This ground lease is accounted for in accordance with ASC Topic 842, Leases. We do not recognize a material profit on this ground lease. Financial services revenues TRI Pointe Solutions is a reportable segment and is comprised of our TRI Pointe Connect mortgage financing operations, TRI Pointe Assurance title and escrow services operations, and TRI Pointe Advantage property and casualty insurance agency operations. Mortgage financing operations TRI Pointe Connect was formed as a joint venture with an established mortgage lender and is accounted for under the equity method of accounting. We record a percentage of income earned by TRI Pointe Connect based on our ownership percentage in this joint venture. TRI Pointe Connect activity appears as equity in income of unconsolidated entities under the Financial Services section of our consolidated statements of operations. Title and escrow services operations TRI Pointe Assurance provides title examinations for our homebuyers in Austin, Colorado and Maryland and both title examinations and escrow services for our homebuyers in Arizona, Nevada, Texas and Virginia. TRI Pointe Assurance is a wholly owned subsidiary of TRI Pointe and acts as a title agency for First American Title Insurance Company. Revenue from our title and escrow services operations is fully recognized at the time of the consummation of the home sales transaction, at which time no further performance obligations are left to be satisfied. TRI Pointe Assurance revenue is included in the Financial Services section of our consolidated statements of operations. Property and casualty insurance agency operations TRI Pointe Advantage is a wholly owned subsidiary of TRI Pointe and provides property and casualty insurance agency services that help facilitate the closing process in all of the markets in which we operate. The total consideration for these services, including renewal options, is estimated upon the issuance of the initial insurance policy, subject to constraint. TRI Pointe Advantage revenue is included in the Financial Services section of our consolidated statements of operations. Recently Issued Accounting Standards Not Yet Adopted In December 2019, the FASB issued Accounting Standards Update (“ASU”) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for the Company beginning after December 15, 2020. We do not expect the adoption of ASU 2019-12 to have a material impact on our consolidated financial statements. Adoption of New Accounting Standards In January 2017, the FASB issued ASU No. 2017-04, Intangibles–Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment (“ASU 2017-04”), which removes the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted, and applied prospectively. We adopted ASU 2017-04 on January 1, 2020 and our adoption did not have a material impact on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments–Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to estimate credit losses for financial instruments, including receivables from community facilities districts or similar municipalities. ASU 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted. We adopted ASU 2016-13 on January 1, 2020 and our adoption did not have a material impact on our consolidated financial statements.

Segment Information

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Segment Information

We operate two principal businesses: homebuilding and financial services.

Our homebuilding operations consist of six homebuilding brands that acquire and develop land and construct and sell single-family detached and attached homes. In accordance with ASC Topic 280, Segment Reporting, in determining the most appropriate reportable segments, we considered similar economic and other characteristics, including product types, average selling prices, gross profits, production processes, suppliers, subcontractors, regulatory environments, land acquisition results, and underlying demand and supply. Based upon these factors, our homebuilding operations are comprised of the following six reportable segments: Maracay, consisting of operations in Arizona; Pardee Homes, consisting of operations in California and Nevada; Quadrant Homes, consisting of operations in Washington; Trendmaker Homes, consisting of operations in Texas; TRI Pointe Homes, consisting of operations in California and Colorado, as well as early stage operations in the Carolinas; and Winchester Homes, consisting of operations in Maryland and Virginia.

Our TRI Pointe Solutions financial services operation is a reportable segment and is comprised of our TRI Pointe Connect mortgage financing operations, our TRI Pointe Assurance title and escrow services operations, and our TRI Pointe Advantage property and casualty insurance agency operations. For further details, see Note 1, Organization, Basis of Presentation and Summary of Significant Accounting Policies.

Corporate is a non-operating segment that develops and implements company-wide strategic initiatives and provides support to our homebuilding reporting segments by centralizing certain administrative functions, such as marketing, legal, accounting, treasury, insurance, internal audit and risk management, information technology and human resources, to benefit from economies of scale. Our Corporate non-operating segment also includes general and administrative expenses related to operating our corporate headquarters. A portion of the expenses incurred by Corporate is allocated to the homebuilding reporting segments.

The reportable segments follow the same accounting policies used for our consolidated financial statements, as described in Note 1, Organization, Basis of Presentation and Summary of Significant Accounting Policies. Operational results of each reportable segment are not necessarily indicative of the results that would have been achieved had the reportable segment been an independent, stand-alone entity during the periods presented.

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



	Three Months Ended March 31,
	2020			2019
Revenues
Maracay	$	71,752		$	39,561
Pardee Homes	178,402			134,863
Quadrant Homes	44,074			43,871
Trendmaker Homes	96,120			70,821
TRI Pointe Homes	158,670			171,791
Winchester Homes	46,438			33,423
Total homebuilding revenues	595,456			494,330
Financial services	1,594			302
Total	$	597,050		$	494,632

Income (loss) before income taxes
Maracay	$	4,562		$	1,190
Pardee Homes	33,479			(791		)
Quadrant Homes	2,697			(2,639		)
Trendmaker Homes	4,797			(1,598		)
TRI Pointe Homes	4,360			10,209
Winchester Homes	1,046			(766		)
Corporate	(11,308		)	(6,266		)
Total homebuilding income (loss) before income taxes	39,633			(661		)
Financial services	2,071			756
Total	$	41,704		$	95

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



	March 31, 2020		December 31, 2019
Real estate inventories
Maracay	$	359,299	$	338,259
Pardee Homes	1,261,573		1,218,384
Quadrant Homes	265,644		264,437
Trendmaker Homes	280,475		268,759
TRI Pointe Homes	759,637		737,662
Winchester Homes	267,520		237,935
Total	$	3,194,148	$	3,065,436

Total assets
Maracay	$	401,387	$	382,262
Pardee Homes	1,382,226		1,300,047
Quadrant Homes	328,654		331,187
Trendmaker Homes	350,155		353,610
TRI Pointe Homes	948,577		930,348
Winchester Homes	310,457		291,456
Corporate	541,751		241,357
Total homebuilding assets	4,263,207		3,830,267
Financial services	29,846		28,423
Total	$	4,293,053	$	3,858,690

Earnings Per Share

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Earnings Per Share

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



	Three Months Ended March 31,
	2020		2019
Numerator:
Net income	$	31,883	$	71
Denominator:
Basic weighted-average shares outstanding	134,361,148		141,865,270
Effect of dilutive shares:
Stock options and unvested restricted stock units	677,333		524,893
Diluted weighted-average shares outstanding	135,038,481		142,390,163
Earnings per share
Basic	$	0.24	$	0.00
Diluted	$	0.24	$	0.00
Antidilutive stock options and unvested restricted stock units not included in diluted earnings per share	2,687,357		2,864,509

Receivables

3 Months Ended

Mar. 31, 2020

Receivables [Abstract]

Receivables

Receivables consisted of the following (in thousands):



	March 31, 2020		December 31, 2019
Escrow proceeds and other accounts receivable, net	$	43,688	$	29,282
Warranty insurance receivable (Note 13)	40,013		39,994
Total receivables	$	83,701	$	69,276

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 $419,000 and $426,000 as of March 31, 2020 and December 31, 2019, respectively.

Real Estate Inventories

3 Months Ended

Mar. 31, 2020

Inventory Disclosure [Abstract]

Real Estate Inventories

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



	March 31, 2020		December 31, 2019
Real estate inventories owned:
Homes completed or under construction	$	1,128,763	$	951,974
Land under development	1,532,370		1,641,354
Land held for future development	154,615		122,847
Model homes	287,491		275,204
Total real estate inventories owned	3,103,239		2,991,379
Real estate inventories not owned:
Land purchase and land option deposits	90,909		74,057
Total real estate inventories not owned	90,909		74,057
Total real estate inventories	$	3,194,148	$	3,065,436

Homes completed or under construction is comprised of costs associated with homes in various stages of construction and includes direct construction and related land acquisition and land development costs. Land under development primarily consists of land acquisition and land development costs, which include capitalized interest and real estate taxes, associated with land undergoing improvement activity. Land held for future development principally reflects land acquisition and land development costs related to land where development activity has not yet begun or has been suspended, but is expected to occur in the future. The increase in land held for future development is attributable to two projects located in the Inland Empire in California at our Pardee Homes reporting segment that were transferred from land under development.

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

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



	Three Months Ended March 31,
	2020			2019
Interest incurred	$	20,779		$	23,373
Interest capitalized	(20,779		)	(23,373		)
Interest expensed	$	—		$	—
Capitalized interest in beginning inventory	$	192,356		$	184,400
Interest capitalized as a cost of inventory	20,779			23,373
Interest previously capitalized as a cost of inventory, included in cost of sales	(16,822		)	(14,333		)
Capitalized interest in ending inventory	$	196,313		$	193,440

Interest is capitalized to real estate inventory during development and other qualifying activities. During all periods presented, we capitalized all interest incurred to real estate inventory in accordance with ASC Topic 835, Interest, as our qualified assets exceeded our debt. Interest that is capitalized to real estate inventory is included in cost of home sales or cost of land and lot sales as related units or lots are delivered. Interest that is expensed as incurred is included in other (expense) income, net.

Real Estate Inventory Impairments and Land Option Abandonments

Real estate inventory impairments and land and lot option abandonments and pre-acquisition charges consisted of the following (in thousands):



	Three Months Ended March 31,
	2020		2019
Real estate inventory impairments	$	—	$	—
Land and lot option abandonments and pre-acquisition charges	349		5,202
Total	$	349	$	5,202

Impairments of real estate inventory relate primarily to projects or communities that include homes completed or under construction. Within a project or community, there may be individual homes or parcels of land that are currently held for sale. Impairment charges recognized as a result of adjusting individual held-for-sale assets within a community to estimated fair value less cost to sell are also included in the total impairment charges. No real estate inventory impairments were recorded for the three-month periods ended March 31, 2020 or 2019.

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

3 Months Ended

Mar. 31, 2020

Equity Method Investments and Joint Ventures [Abstract]

Investments in Unconsolidated Entities

As of March 31, 2020, we held equity investments in five active homebuilding partnerships or limited liability companies and one financial services limited liability company. Our participation in these entities may be as a developer, a builder, or an investment partner. Our ownership percentage varies from 7% to 65%, depending on the investment, with no controlling interest held in any of these investments.

Unconsolidated Financial Information

Aggregated assets, liabilities and operating results of the entities we account for as equity-method investments are provided below. Because our ownership interest in these entities varies, a direct relationship does not exist between the information presented below and the amounts that are reflected on our consolidated balance sheets as our investments in unconsolidated entities or on our consolidated statements of operations as equity in income of unconsolidated entities.

Assets and liabilities of unconsolidated entities (in thousands):



	March 31, 2020		December 31, 2019
Assets
Cash	$	6,623	$	8,537
Receivables	5,840		7,393
Real estate inventories	117,447		116,760
Other assets	640		703
Total assets	$	130,550	$	133,393
Liabilities and equity
Accounts payable and other liabilities	$	7,749	$	11,009
Company’s equity	11,091		11,745
Outside interests’ equity	111,710		110,639
Total liabilities and equity	$	130,550	$	133,393

Results of operations from unconsolidated entities (in thousands):



	Three Months Ended March 31,
	2020			2019
Net sales	$	5,970		$	4,111
Other operating expense	(3,756		)	(2,752		)
Other income, net	(3		)	8
Net income	$	2,211		$	1,367
Company’s equity in income of unconsolidated entities	$	1,542		$	750

Variable Interest Entities

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entities

In the ordinary course of business, we enter into land and lot option agreements in order to procure land and residential lots for future development and the construction of homes. The use of such land and lot option agreements generally allows us to reduce the risks associated with direct land ownership and development, and reduces our capital and financial commitments. Pursuant to these land and lot option agreements, we generally provide a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. These deposits are recorded as land purchase and land option deposits under real estate inventories not owned on the accompanying consolidated balance sheets.

We analyze each of our land and lot option agreements and other similar contracts under the provisions of ASC 810, Consolidation to determine whether the land seller is a VIE and, if so, whether we are the primary beneficiary. Although we do not have legal title to the underlying land, if we are determined to be the primary beneficiary of the VIE, we will consolidate the VIE in our financial statements and reflect its assets as real estate inventory not owned included in our real estate inventories, its liabilities as debt (nonrecourse) held by VIEs in accrued expenses and other liabilities and the net equity of the VIE owners as noncontrolling interests on our consolidated balance sheets. In determining whether we are the primary beneficiary, we consider, among other things, whether we have the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance. Such activities would include, among other things, determining or limiting the scope or purpose of the VIE, selling or transferring property owned or controlled by the VIE, or arranging financing for the VIE.

Creditors of the entities with which we have land and lot option agreements have no recourse against us. The maximum exposure to loss under our land and lot option agreements is generally limited to non-refundable option deposits and any capitalized pre-acquisition costs. In some cases, we have also contracted to complete development work at a fixed cost on behalf of the landowner and budget shortfalls and savings will be borne by us. Additionally, we have entered into land banking arrangements which require us to complete development work even if we terminate the option to procure land or lots.

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



	March 31, 2020						December 31, 2019
	Deposits		Remaining Purchase Price		Consolidated Inventory Held by VIEs		Deposits		Remaining Purchase Price		Consolidated Inventory Held by VIEs
Consolidated VIEs	$	—	$	—	$	—	$	—	$	—	$	—
Unconsolidated VIEs	42,482		480,818		N/A		42,896		440,974		N/A
Other land option agreements	48,427		415,818		N/A		31,161		358,345		N/A
Total	$	90,909	$	896,636	$	—	$	74,057	$	799,319	$	—

Unconsolidated VIEs represent land option agreements that were not consolidated because we were not the primary beneficiary. Other land option agreements were not considered VIEs.

In addition to the deposits presented in the table above, our exposure to loss related to our land and lot option contracts consisted of capitalized pre-acquisition costs of $6.4 million and $6.0 million as of March 31, 2020 and December 31, 2019, respectively. These pre-acquisition costs are included in real estate inventories as land under development on our consolidated balance sheets.

Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

As of March 31, 2020 and December 31, 2019, $139.3 million of goodwill is included in goodwill and other intangible assets, net on each of the consolidated balance sheets. The Company’s goodwill balance is included in the TRI Pointe Homes reporting segment in Note 2, Segment Information.

We have two intangible assets as of March 31, 2020, comprised of an existing trade name from the acquisition of Maracay in 2006, which has a 20 year useful life, and a TRI Pointe Homes trade name resulting from the acquisition of Weyerhaeuser Real Estate Company in 2014, which has an indefinite useful life.

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



	March 31, 2020							December 31, 2019
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Goodwill	$	139,304	$	—		$	139,304	$	139,304	$	—		$	139,304
Trade names	27,979		(7,524		)	20,455		27,979		(7,390		)	20,589
Total	$	167,283	$	(7,524	)	$	159,759	$	167,283	$	(7,390	)	$	159,893

The remaining useful life of our amortizing intangible asset related to the Maracay trade name was 5.9 and 6.2 years as of March 31, 2020 and December 31, 2019, respectively. The net carrying amount related to this intangible asset was $3.2 million and $3.3 million as of March 31, 2020 and December 31, 2019, respectively. Amortization expense related to this intangible asset was $134,000 for each of the three-month periods ended March 31, 2020 and 2019. Amortization of this intangible was charged to sales and marketing expense. Our $17.3 million indefinite life intangible asset related to the TRI Pointe Homes trade name is not amortizing. All trade names and goodwill are evaluated for impairment on an annual basis or more frequently if indicators of impairment exist.

Expected amortization of our intangible asset related to Maracay for the remainder of 2020, the next four years and thereafter is (in thousands):



Remainder of 2020	$	400
2021	534
2022	534
2023	534
2024	534
Thereafter	619
Total	$	3,155

Other Assets

3 Months Ended

Mar. 31, 2020

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

Other Assets

Other assets consisted of the following (in thousands):



	March 31, 2020		December 31, 2019
Prepaid expenses	$	26,509	$	24,070
Refundable fees and other deposits	26,994		30,242
Development rights, held for future use or sale	2,159		2,213
Deferred loan costs—loans payable	4,027		4,345
Operating properties and equipment, net	60,882		57,803
Lease right-of-use assets	50,050		50,947
Other	3,338		3,805
Total	$	173,959	$	173,425

Accrued Expenses and Other Liabilities

3 Months Ended

Mar. 31, 2020

Payables and Accruals [Abstract]

Accrued Expenses and Other Liabilities

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



	March 31, 2020		December 31, 2019
Accrued payroll and related costs	$	17,884	$	42,798
Warranty reserves(Note 13)	76,487		76,607
Estimated cost for completion of real estate inventories	89,132		90,899
Customer deposits	28,048		20,390
Income tax liability to Weyerhaeuser	346		346
Accrued income taxes payable	7,757		1,530
Liability for uncertain tax positions (Note 15)	486		486
Accrued interest	18,913		11,952
Other tax liability	8,095		8,448
Lease liabilities	55,160		56,125
Other	13,252		12,462
Total	$	315,560	$	322,043

Senior Notes and Loans Payable

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Senior Notes and Loans Payable

Senior Notes

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



	March 31, 2020			December 31, 2019
4.875% Senior Notes due July 1, 2021	$	300,000		$	300,000
5.875% Senior Notes due June 15, 2024	450,000			450,000
5.250% Senior Notes due June 1, 2027	300,000			300,000
Discount and deferred loan costs	(15,075		)	(16,015		)
Total	$	1,034,925		$	1,033,985

In June 2017, TRI Pointe Group issued $300 million aggregate principal amount of 5.250% Senior Notes due 2027 (the “2027 Notes”) at 100.00% of their aggregate principal amount. Net proceeds of this issuance were $296.3 million, after debt issuance costs and discounts. The 2027 Notes mature on June 1, 2027 and interest is paid semiannually in arrears on June 1 and December 1.

In May 2016, TRI Pointe Group issued $300 million aggregate principal amount of 4.875% Senior Notes due 2021 (the “2021 Notes”) at 99.44% of their aggregate principal amount. Net proceeds of this issuance were $293.9 million, after debt issuance costs and discounts. The 2021 Notes mature on July 1, 2021 and interest is paid semiannually in arrears on January 1 and July 1.

TRI Pointe Group and its wholly owned subsidiary TRI Pointe Homes, Inc. (“TRI Pointe Homes”) are co-issuers of the $450 million aggregate principal amount 5.875% Senior Notes due 2024 (the “2024 Notes”). The 2024 Notes were issued at 98.15% of their aggregate principal amount. The net proceeds from the offering of the 2024 Notes was $429.0 million, after debt issuance costs and discounts. The 2024 Notes mature on June 15, 2024, with interest payable semiannually in arrears on June 15 and December 15.

As of March 31, 2020, there were $10.4 million of capitalized debt financing costs, included in senior notes, net on our consolidated balance sheet, related to the Senior Notes that will amortize over the lives of the Senior Notes. Accrued interest related to the Senior Notes was $16.7 million and $9.8 million as of March 31, 2020 and December 31, 2019, respectively.

Loans Payable

The Company’s outstanding loans payable consisted of the following (in thousands):



	March 31, 2020		December 31, 2019
Term loan facility	$	250,000	$	250,000
Unsecured revolving credit facility	500,000		—
Total	$	750,000	$	250,000

On March 29, 2019, the Company entered into a Second Amended and Restated Credit Agreement (the “Credit Agreement”), which amended and restated the Company’s Amended and Restated Credit Agreement, dated as of July 7, 2015. The Credit Facility (as defined below), which matures on March 29, 2023, consists of a $600 million revolving credit facility (the “Revolving Facility”) and a $250 million term loan facility (the “Term Facility” and together with the Revolving Facility, the “Credit Facility”). The Term Facility includes a 90-day delayed draw provision that allowed the Company to draw the full $250 million from the Term Facility in June 2019 in connection with the maturity of the 4.375% Senior Notes that matured on June 15, 2019. The Company may increase the Credit Facility to not more than $1 billion in the aggregate, at its request, upon satisfaction of specified conditions. The Revolving Facility contains a sublimit of $75 million for letters of credit. The Company may borrow under the Revolving Facility in the ordinary course of business to repay senior notes and fund its operations, including its land acquisition, land development and homebuilding activities. Borrowings under the Revolving Facility will be governed by, among other things, a borrowing base. Interest rates on borrowings under the Revolving Facility will be based on either a daily Eurocurrency base rate or a Eurocurrency rate, in either case, plus a spread ranging from 1.25%

to 2.00%, depending on the Company’s leverage ratio. Interest rates on borrowings under the Term Facility will be based on either a daily Eurocurrency base rate or a Eurocurrency rate, in either case, plus a spread ranging from 1.10% to 1.85%, depending on the Company’s leverage ratio.

As of March 31, 2020, we had $500 million of outstanding debt under the Revolving Facility with an interest rate of 2.15% per annum and there was $53.4 million of availability after considering the borrowing base provisions and outstanding letters of credit. As of March 31, 2020, we had $250 million outstanding debt under the Term Facility with an interest rate of 2.93%. As of March 31, 2020, there were $4.0 million of capitalized debt financing costs, included in other assets on our consolidated balance sheet, related to the Credit Facility that will amortize over the remaining term of the Credit Facility. Accrued interest, including loan commitment fees, related to the Credit Facility was $1.4 million and $1.2 million as of March 31, 2020 and December 31, 2019, respectively.

At March 31, 2020 and December 31, 2019, we had outstanding letters of credit of $46.6 million and $32.6 million, respectively. These letters of credit were issued to secure various financial obligations. We believe it is not probable that any outstanding letters of credit will be drawn upon.

Interest Incurred

During the three months ended March 31, 2020 and 2019, the Company incurred interest of $20.8 million and $23.4 million, respectively, related to all debt during the period. Included in interest incurred was amortization of deferred financing and Senior Note discount costs of $1.3 million and $1.9 million for the three months ended March 31, 2020 and 2019, respectively. Accrued interest related to all outstanding debt at March 31, 2020 and December 31, 2019 was $18.9 million and $12.0 million, respectively.

Covenant Requirements

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

Under the Credit Facility, the Company is required to comply with certain financial covenants, including those relating to consolidated tangible net worth, leverage, liquidity or interest coverage, and a spec unit inventory test. The Credit Facility also requires that at least 97.0% of consolidated tangible net worth must be attributable to the Company and its guarantor subsidiaries, subject to certain grace periods.

The Company was in compliance with all applicable financial covenants as of March 31, 2020 and December 31, 2019.

Fair Value Disclosures

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

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 March 31, 2020 and December 31, 2019, related to our financial instruments, measured at fair value on a recurring basis, is set forth below (in thousands):



		March 31, 2020				December 31, 2019
	Hierarchy	Book Value		Fair Value		Book Value		Fair Value
Senior Notes⁽¹⁾	Level 2	$	1,045,373	$	925,500	$	1,045,072	$	1,104,750
Unsecured revolving credit facility⁽²⁾	Level 2	$	500,000	$	500,000	$	—	$	—
Term loan facility⁽²⁾	Level 2	$	250,000	$	250,000	$	250,000	$	250,000

__________


⁽¹⁾	The book value of the Senior Notes is net of discounts, excluding deferred loan costs of $10.4 million and $11.1 million as of March 31, 2020 and December 31, 2019, respectively. The estimated fair value of the Senior Notes at March 31, 2020 and December 31, 2019 is based on quoted market prices.


⁽²⁾	The estimated fair value of the Credit Facility and Term Loan Facility as of March 31, 2020 approximated book value due to the variable interest rate terms of these loans.

At March 31, 2020 and December 31, 2019, the carrying value of cash and cash equivalents and receivables approximated fair value due to their short-term nature and variable interest rate terms.

Fair Value of Nonfinancial Assets

Nonfinancial assets include items such as real estate inventories and long-lived assets that are measured at fair value on a nonrecurring basis when events and circumstances indicating the carrying value is not recoverable. No carrying values were adjusted to fair value for the three months ended March 31, 2020 or the year ended December 31, 2019.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Commitments and Contingencies

3 Months Ended

Mar. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

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 $319,000 and $419,000 of legal reserves as of March 31, 2020 and December 31, 2019, 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 $40.0 million as of both March 31, 2020 and December 31, 2019, respectively. Warranty insurance receivables are recorded in receivables on the accompanying consolidated balance sheets.

Warranty reserve activity consisted of the following (in thousands):



	Three Months Ended March 31,
	2020			2019
Warranty reserves, beginning of period	$	76,607		$	71,836
Warranty reserves accrued	5,156			4,270
Warranty expenditures	(5,276		)	(5,159		)
Warranty reserves, end of period	$	76,487		$	70,947

Performance Bonds

We obtain surety bonds in the normal course of business to ensure completion of certain infrastructure improvements of our projects. The beneficiaries of the bonds are various municipalities. As of March 31, 2020 and December 31, 2019, the Company had outstanding surety bonds totaling $627.3 million and $611.6 million, respectively. As of March 31, 2020 and December 31, 2019, our estimated cost to complete obligations related to these surety bonds was $399.9 million and $382.3 million, respectively.

Lease Obligations

Under ASC 842 we recognize a right-of-use lease asset and a lease liability for contracts deemed to contain a lease at the inception of the contract. Our lease population is fully comprised of operating leases, which are now recorded at the net present value of future lease obligations existing at each balance sheet date. At the inception of a lease, or if a lease is subsequently modified, we determine whether the lease is an operating or financing lease. Key estimates involved with ASC 842 include the discount rate used to measure our future lease obligations and the lease term, where considerations include renewal options and intent to renew. Lease right-of-use assets are included in other assets and lease liabilities are included in accrued expenses and other liabilities on our consolidated balance sheet.

Operating Leases

We lease certain property and equipment under non-cancelable operating leases. Office leases are for terms of up to ten years and generally provide renewal options. In most cases, we expect that, in the normal course of business, leases that expire will be renewed or replaced by other leases. Equipment leases are typically for terms of three to four years.

Ground Leases

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

For one of these leases, we are responsible for making lease payments to the landowner, and we collect sublease payments from the buyers of the buildings. This ground lease has been subleased through 2041 to the buyers of the commercial buildings. For the second lease, the buyers of the buildings are responsible for making lease payments directly to the landowner, however, we have guaranteed the performance of the buyers/lessees. See below for additional information on leases (dollars in thousands):



	Three Months Ended March 31, 2020			Three Months Ended March 31, 2019
Lease Cost
Operating lease cost (included in SG&A expense)	$	2,338		$	2,044
Ground lease cost (included in other operations expense)	624			590
Sublease income, ground leases (included in other operations revenue)	(618		)	(598		)
Net lease cost	$	2,344		$	2,036

Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating lease cash flows (included in operating cash flows)	$	2,014		$	1,609
Ground lease cash flows (included in operating cash flows)	$	624		$	608
Right-of-use assets obtained in exchange for new operating lease liabilities	$	20		$	1,707



	March 31, 2020		December 31, 2019
Weighted-average discount rate:
Operating leases	5.9	%	5.9	%
Ground leases	10.2	%	10.2	%
Weighted-average remaining lease term (in years):
Operating leases	5.9		6.1
Ground leases	47.8		48.1

The future minimum lease payments under our operating leases are as follows (in thousands):



	Property, Equipment and Other Leases		Ground Leases ⁽¹⁾
Remaining in 2020	$	7,241	$	2,302
2021	7,198		3,070
2022	5,602		3,070
2023	4,496		3,070
2024	2,772		3,070
Thereafter	6,407		83,516
Total lease payments	$	33,716	$	98,098
Less: Interest	6,154		70,501
Present value of operating lease liabilities	$	27,562	$	27,597

⁽¹⁾Ground leases are fully subleased through 2041, representing $66.3 million of the $98.1 million future ground lease obligations.

Stock-Based Compensation

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

2013 Long-Term Incentive Plan

The Company’s stock compensation plan, the 2013 Long-Term Incentive Plan (the “2013 Incentive Plan”), was adopted by TRI Pointe in January 2013 and amended, with the approval of our stockholders, in 2014 and 2015. In addition, our board of directors amended the 2013 Incentive Plan in 2014 to prohibit repricing (other than in connection with any equity restructuring or any change in capitalization) of outstanding options or stock appreciation rights without stockholder approval. The 2013 Incentive Plan provides for the grant of equity-based awards, including options to purchase shares of common stock, stock appreciation rights, bonus stock, restricted stock, restricted stock units (“RSUs”) and performance awards. The 2013 Incentive Plan will automatically expire on the tenth anniversary of its effective date. Our board of directors may terminate or amend the 2013 Incentive Plan at any time, subject to any requirement of stockholder approval required by applicable law, rule or regulation.

As amended, the number of shares of our common stock that may be issued under the 2013 Incentive Plan is 11,727,833 shares. To the extent that shares of our common stock subject to an outstanding option, stock appreciation right, stock award or performance award granted under the 2013 Incentive Plan are not issued or delivered by reason of the expiration, termination, cancellation or forfeiture of such award or the settlement of such award in cash, then such shares of our common stock generally shall again be available under the 2013 Incentive Plan. As of March 31, 2020, there were 5,318,795 shares available for future grant under the 2013 Incentive Plan.

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



	Three Months Ended March 31,
	2020		2019
Total stock-based compensation	$	3,625	$	3,435

Stock-based compensation is charged to general and administrative expense on the accompanying consolidated statements of operations. As of March 31, 2020, total unrecognized stock-based compensation related to all stock-based awards was $30.6 million and the weighted average term over which the expense was expected to be recognized was 2.3 years.

Summary of Stock Option Activity

The following table presents a summary of stock option awards for the three months ended March 31, 2020:



	Options		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value (in thousands)
Options outstanding at December 31, 2019	891,343		$	15.03	3.4	$	994
Granted	—		—		—	—
Exercised	(56,598	)	$	12.47	—	—
Forfeited	—		$	—	—	—
Options outstanding at March 31, 2020	834,745		$	15.20	3.2	$	—
Options exercisable at March 31, 2020	834,745		$	15.20	3.2	$	—

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

Summary of Restricted Stock Unit Activity

The following table presents a summary of RSUs for the three months ended March 31, 2020:



	Restricted Stock Units		Weighted Average Grant Date Fair Value Per Share		Aggregate Intrinsic Value (in thousands)
Nonvested RSUs at December 31, 2019	3,384,351		$	12.39	$	52,694
Granted	1,411,553		$	18.71	—
Vested	(921,461	)	$	13.31	—
Forfeited	(550,994	)	$	8.92	—
Nonvested RSUs at March 31, 2020	3,323,449		$	15.40	$	30,609

RSUs that vested, as reflected in the table above, during the three months ended March 31, 2020 include previously granted time-based RSUs. RSUs that were forfeited, as reflected in the table above, during the three months ended March 31, 2020 include performance-based RSUs and time-based RSUs that were forfeited for no consideration.

On February 20, 2020, the Company granted an aggregate of 547,166 performance-based RSUs to the Company’s Chief Executive Officer, Chief Operating Officer and President, Chief Financial Officer, General Counsel, Chief Marketing Officer and Chief Human Resources Officer. These performance-based RSUs are allocated to two separate performance metrics, as follows: (i) 50% to homebuilding revenue, and (ii) 50% to pre-tax earnings. 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. Any award earned based on performance achieved may be increased or decreased by 25% based on the Company’s total stockholder return (“TSR'”) relative to its peer-group homebuilders. The performance period for these performance-based RSUs is January 1, 2020 to December 31, 2022. The fair value of these performance-based RSUs was determined to be $19.36 per share based on a Monte Carlo simulation. Each award will be expensed over the requisite service period.

On February 20, 2020, the Company granted an aggregate of 207,300 performance-based RSUs to the Company’s division presidents. These performance-based RSUs are allocated to two separate performance metrics, as follows: (i) 50% to homebuilding revenue of the applicable Company division, and (ii) 50% to pre-tax earnings of the applicable Company division. The vesting, if at all, of these performance-based RSUs may range from 0% to 100% and will be based on the applicable Company division’s percentage attainment of specified threshold, target and maximum performance goals. The performance period for these performance-based RSUs is January 1, 2020 to December 31, 2022. The fair value of these performance-based RSUs was measured using a price of $18.39, which was the closing stock price on the date of grant. Each award will be expensed over the requisite service period.

On March 9, 2020 and February 20, 2020, the Company granted an aggregate of 17,692 and 639,395, respectively, time-based RSUs to certain employees and officers. The RSUs granted vest in equal installment annually on the anniversary of the grant date over a three-year period. The fair value of each RSU granted on March 9, 2020 and February 20, 2020 was measured using a price of $14.13 and $18.39 per share, respectively, which were the closing stock prices on the dates of grant. Each award will be expensed on a straight-line basis over the vesting period.

On May 6, 2019, the Company granted an aggregate of 61,488 time-based RSUs to the non-employee members of its board of directors and 1,098 time-based RSUs to certain employees. The RSUs granted to non-employee directors vest in their entirety on the day immediately prior to the Company’s 2020 annual meeting of stockholders and the RSUs granted to employees vest in equal installments annually on the anniversary of the grant date over a three-year period. The fair value of each RSU granted on May 6, 2019 was measured using a price of $13.66 per share which was the closing stock price on the date of grant. Each award will be expensed on a straight-line basis over the vesting period.

On March 11, 2019 and February 28, 2019, the Company granted an aggregate of 3,025 and 990,723, respectively, of time-based RSUs to certain employees and officers. The RSUs granted vest in equal installments annually on the anniversary of the grant date over a three-year period. The fair value of each RSU granted on March 11, 2019 and February 28, 2019 was measured using a price of $13.22 and $12.60 per share, respectively, which were the closing stock prices on the dates of grant. Each award will be expensed on a straight-line basis over the vesting period.

On February 28, 2019, the Company granted 247,619, 238,095 and 114,285 performance-based RSUs to the Company’s Chief Executive Officer, President, and Chief Financial Officer, respectively. These performance-based RSUs are allocated to two separate performance metrics, as follows: (i) 30% to TSR, with vesting based on the Company’s TSR relative to its peer-group homebuilders; and (ii) 70% to earnings per share. The vesting, if at all, of these performance-based RSUs may range from 0% to 100% and will be based on the Company’s percentage attainment of specified threshold, target and maximum performance goals. The performance period for these performance-based RSUs is January 1, 2019 to December 31, 2021. The fair value of the performance-based RSUs related to the TSR metric was determined to be $8.16 per share based on a Monte Carlo simulation. The fair value of the performance-based RSUs related to the earnings per share goal was measured using a price of $12.60 per share, which was the closing stock price on the date of grant. Each award will be expensed over the requisite service period.

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

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes We account for income taxes in accordance with ASC Topic 740, Income Taxes (“ASC 740”), which requires an asset and liability approach for measuring deferred taxes based on temporary differences between the financial statements and tax bases of assets and liabilities using enacted tax rates for the years in which taxes are expected to be paid or recovered. Each quarter we assess our deferred tax asset to determine whether all or any portion of the asset is more likely than not unrealizable under ASC 740. We are required to establish a valuation allowance for any portion of the asset we conclude is more likely than not to be unrealizable. Our assessment considers, among other things, the nature, frequency and severity of our current and cumulative losses, forecasts of our future taxable income, the duration of statutory carryforward periods and tax planning alternatives. We had net deferred tax assets of $46.3 million and $49.9 million as of March 31, 2020 and December 31, 2019. We had a valuation allowance related to those net deferred tax assets of $3.5 million as of both March 31, 2020 and December 31, 2019. The Company will continue to evaluate both positive and negative evidence in determining the need for a valuation allowance against its deferred tax assets. Changes in positive and negative evidence, including differences between the Company’s future operating results and the estimates utilized in the determination of the valuation allowance, could result in changes in the Company’s estimate of the valuation allowance against its deferred tax assets. The accounting for deferred taxes is based upon estimates of future results. Differences between the anticipated and actual outcomes of these future results could have a material impact on the Company’s consolidated results of operations or financial position. Also, changes in existing federal and state tax laws and tax rates could affect future tax results and the valuation allowance against the Company’s deferred tax assets. TRI Pointe has certain liabilities to Weyerhaeuser Company (“Weyerhaeuser”) related to a tax sharing agreement. As of both March 31, 2020 and December 31, 2019, we had an income tax liability to Weyerhaeuser of $346,000. The income tax liability to Weyerhaeuser is recorded in accrued expenses and other liabilities on the accompanying consolidated balance sheets. During the three months ended March 31, 2019, we amended our existing tax sharing agreement with Weyerhaeuser, pursuant to which the parties agreed, among other things, that we had no further obligation to remit payment to Weyerhaeuser in connection with any potential utilization of certain deductions or losses associated with certain Weyerhaeuser entities with respect to federal and state taxes. As a result of the amendment, during the three months ended March 31, 2019, we decreased our income tax liability to Weyerhaeuser and recorded other income of $6.0 million, which is included in other income, net in the accompanying consolidated statements of operations. Our provision for income taxes totaled $9.8 million and $24,000 for the three months ended March 31, 2020 and 2019, respectively. The Company classifies any interest and penalties related to income taxes assessed by jurisdiction as part of income tax expense. The Company had $486,000 of uncertain tax positions recorded as of both March 31, 2020 and December 31, 2019. The Company has not been assessed interest or penalties by any major tax jurisdictions related to prior years.

Related Party Transactions	3 Months Ended
Related Party Transactions	Mar. 31, 2020
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions We had no related party transactions for the three months ended March 31, 2020 and 2019.

Supplemental Disclosure to Consolidated Statements of Cash Flows

3 Months Ended

Mar. 31, 2020

Supplemental Cash Flow Elements [Abstract]

Supplemental Disclosure to Consolidated Statements of Cash Flows

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



	Three Months Ended March 31,
	2020			2019
Supplemental disclosure of cash flow information:
Interest paid (capitalized), net	$	(8,220	)	$	(13,697	)
Income taxes paid (refunded), net	$	9		$	(2,538	)
Supplemental disclosures of noncash activities:
Amortization of senior note discount capitalized to real estate inventory	$	302		$	505
Amortization of deferred loan costs capitalized to real estate inventory	$	957		$	1,415

Supplemental Guarantor Information

3 Months Ended

Mar. 31, 2020

Condensed Financial Information Disclosure [Abstract]

Supplemental Guarantor Information

2021 Notes and 2027 Notes

On May 26, 2016, TRI Pointe Group issued the 2021 Notes. On June 5, 2017, TRI Pointe Group issued the 2027 Notes. All of TRI Pointe Group’s 100% owned subsidiaries that are guarantors (each a “Guarantor” and, collectively, the “Guarantors”) of the Credit Facility, including TRI Pointe Homes, are party to supplemental indentures pursuant to which they jointly and severally guarantee TRI Pointe Group’s obligations with respect to the 2021 Notes and the 2027 Notes. Each Guarantor of the 2021 Notes and the 2027 Notes is 100% owned by TRI Pointe Group, and all guarantees are full and unconditional, subject to customary exceptions pursuant to the indentures governing the 2021 Notes and the 2027 Notes, as described in the following paragraph. All of our non-Guarantor subsidiaries have nominal assets and operations and are considered minor, as defined in Rule 3-10(h) of Regulation S-X. In addition, TRI Pointe Group has no independent assets or operations, as defined in Rule 3-10(h) of Regulation S-X. There are no significant restrictions upon the ability of TRI Pointe Group or any Guarantor to obtain funds from any of their respective wholly owned subsidiaries by dividend or loan. None of the assets of our subsidiaries represent restricted net assets pursuant to Rule 4-08(e)(3) of Regulation S-X.

A Guarantor of the 2021 Notes and the 2027 Notes shall be released from all of its obligations under its guarantee if (i) all of the assets of the Guarantor have been sold; (ii) all of the equity interests of the Guarantor held by TRI Pointe Group or a subsidiary thereof have been sold; (iii) the Guarantor merges with and into TRI Pointe Group or another Guarantor, with TRI Pointe Group or such other Guarantor surviving the merger; (iv) the Guarantor is designated “unrestricted” for covenant purposes; (v) the Guarantor ceases to guarantee any indebtedness of TRI Pointe Group or any other Guarantor which gave rise to such Guarantor guaranteeing the 2021 Notes or the 2027 Notes; (vi) TRI Pointe Group exercises its legal defeasance or covenant defeasance options; or (vii) all obligations under the applicable supplemental indenture are discharged.

2024 Notes

TRI Pointe Group and TRI Pointe Homes are co-issuers of 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 2024 Notes. Each Guarantor of 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 2024 Notes, as described below.

A Guarantor of 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 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 March 31, 2020 and December 31, 2019, condensed consolidating statements of operations for the three months ended March 31, 2020 and 2019 and condensed consolidating statement of cash flows for the three months ended March 31, 2020 and 2019. 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 2024 Notes, is presented together in the column titled “Issuer”.

Condensed Consolidating Balance Sheet (in thousands):



	March 31, 2020
	Issuer		Guarantor Subsidiaries		Consolidating Adjustments			Consolidated TRI Pointe Group, Inc.
Assets
Cash and cash equivalents	$	496,116	$	128,013	$	—		$	624,129
Receivables	21,554		62,147		—			83,701
Intercompany receivables	637,118		—		(637,118		)	—
Real estate inventories	759,636		2,434,512		—			3,194,148
Investments in unconsolidated entities	—		11,091		—			11,091
Goodwill and other intangible assets, net	156,604		3,155		—			159,759
Investments in subsidiaries	1,909,197		—		(1,909,197		)	—
Deferred tax assets, net	9,020		37,246		—			46,266
Other assets	9,508		164,451		—			173,959
Total assets	$	3,998,753	$	2,840,615	$	(2,546,315	)	$	4,293,053

Liabilities
Accounts payable	$	17,173	$	60,102	$	—		$	77,275
Intercompany payables	—		637,118		(637,118		)	—
Accrued expenses and other liabilities	81,374		234,186		—			315,560
Loans payable	750,000		—		—			750,000
Senior notes	1,034,925		—		—			1,034,925
Total liabilities	1,883,472		931,406		(637,118		)	2,177,760

Equity
Total stockholders’ equity	2,115,281		1,909,197		(1,909,197		)	2,115,281
Noncontrolling interests	—		12		—			12
Total equity	2,115,281		1,909,209		(1,909,197		)	2,115,293
Total liabilities and equity	$	3,998,753	$	2,840,615	$	(2,546,315	)	$	4,293,053

Condensed Consolidating Balance Sheet (in thousands):



	December 31, 2019
	Issuer		Guarantor Subsidiaries		Consolidating Adjustments			Consolidated TRI Pointe Group, Inc.
Assets
Cash and cash equivalents	$	186,200	$	142,811	$	—		$	329,011
Receivables	26,016		43,260		—			69,276
Intercompany receivables	576,846		—		(576,846		)	—
Real estate inventories	737,662		2,327,774		—			3,065,436
Investments in unconsolidated entities	—		11,745		—			11,745
Goodwill and other intangible assets, net	156,604		3,289		—			159,893
Investments in subsidiaries	1,870,885		—		(1,870,885		)	—
Deferred tax assets, net	9,020		40,884		—			49,904
Other assets	14,676		158,749		—			173,425
Total assets	$	3,577,909	$	2,728,512	$	(2,447,731	)	$	3,858,690

Liabilities
Accounts payable	$	14,915	$	51,205	$	—		$	66,120
Intercompany payables	—		576,846		(576,846		)	—
Accrued expenses and other liabilities	92,479		229,564		—			322,043
Loans payable	250,000		—		—			250,000
Senior notes	1,033,985		—		—			1,033,985
Total liabilities	1,391,379		857,615		(576,846		)	1,672,148

Equity
Total stockholders’ equity	2,186,530		1,870,885		(1,870,885		)	2,186,530
Noncontrolling interests	—		12		—			12
Total equity	2,186,530		1,870,897		(1,870,885		)	2,186,542
Total liabilities and equity	$	3,577,909	$	2,728,512	$	(2,447,731	)	$	3,858,690

Condensed Consolidating Statement of Operations (in thousands):



	Three Months Ended March 31, 2020
	Issuer			Guarantor Subsidiaries			Consolidating Adjustments			Consolidated TRI Pointe Group, Inc.
Homebuilding:
Home sales revenue	$	158,670		$	436,168		$	—		$	594,838
Land and lot sales revenue	—			—			—			—
Other operations revenue	—			618			—			618
Total revenues	158,670			436,786			—			595,456
Cost of home sales	135,900			336,982			—			472,882
Cost of land and lot sales	—			202			—			202
Other operations expense	—			624			—			624
Sales and marketing	10,435			32,202			—			42,637
General and administrative	19,343			20,494			—			39,837
Homebuilding (loss) income from operations	(7,008		)	46,282			—			39,274
Equity in income of unconsolidated entities	—			(14		)	—			(14		)
Other income, net	192			181			—			373
Homebuilding (loss) income before income taxes	(6,816		)	46,449			—			39,633
Financial Services:
Revenues	—			1,594			—			1,594
Expenses	—			1,079			—			1,079
Equity in income of unconsolidated entities	—			1,556			—			1,556
Financial services income before income taxes	—			2,071			—			2,071
(Loss) income before income taxes	(6,816		)	48,520			—			41,704
Equity of net income of subsidiaries	38,699			—			(38,699		)	—
Provision for income taxes	—			(9,821		)	—			(9,821		)
Net income	$	31,883		$	38,699		$	(38,699	)	$	31,883

Condensed Consolidating Statement of Operations (in thousands):



	Three Months Ended March 31, 2019
	Issuer			Guarantor Subsidiaries			Consolidating Adjustments		Consolidated TRI Pointe Group, Inc.
Homebuilding:
Home sales revenue	$	171,791		$	320,912		$	—	$	492,703
Land and lot sales revenue	—			1,029			—		1,029
Other operations revenue	—			598			—		598
Total revenues	171,791			322,539			—		494,330
Cost of home sales	145,075			276,461			—		421,536
Cost of land and lot sales	—			1,495			—		1,495
Other operations expense	—			590			—		590
Sales and marketing	9,299			29,690			—		38,989
General and administrative	19,479			19,118			—		38,597
Homebuilding loss from operations	(2,062		)	(4,815		)	—		(6,877		)
Equity in loss of unconsolidated entities	—			(25		)	—		(25		)
Other income, net	6,140			101			—		6,241
Homebuilding income (loss) before income taxes	4,078			(4,739		)	—		(661		)
Financial Services:
Revenues	—			302			—		302
Expenses	—			321			—		321
Equity in income of unconsolidated entities	—			775			—		775
Financial services income before income taxes	—			756			—		756
Income (loss) before income taxes	4,078			(3,983		)	—		95
Equity of net (loss) income of subsidiaries	(4,007		)	—			4,007		—
Provision for income taxes				(24		)	—		(24		)
Net income (loss)	$	71		$	(4,007	)	$	4,007	$	71

Condensed Consolidating Statement of Cash Flows (in thousands):



	Three Months Ended March 31, 2020
	Issuer			Guarantor Subsidiaries			Consolidating Adjustments			Consolidated TRI Pointe Group, Inc.
Cash flows from operating activities:
Net cash used in operating activities	$	(21,426	)	$	(67,548	)	$	—		$	(88,974	)
Cash flows from investing activities:
Purchases of property and equipment	(2,801		)	(5,438		)	—			(8,239		)
Proceeds from sale of property and equipment	—			17			—			17
Investments in unconsolidated entities	—			(929		)	—			(929		)
Intercompany	(59,100		)	—			59,100			—
Net cash used in investing activities	(61,901		)	(6,350		)	59,100			(9,151		)
Cash flows from financing activities:
Borrowings from debt	500,000			—			—			500,000
Debt issuance costs	—			—			—			—
Proceeds from issuance of common stock under share-based awards	689			1			—			690
Minimum tax withholding paid on behalf of employees for restricted stock units	(5,445		)	(1		)	—			(5,446		)
Share repurchases	(102,001		)	—			—			(102,001		)
Intercompany	—			59,100			(59,100		)	—
Net cash provided by financing activities	393,243			59,100			(59,100		)	393,243
Net increase (decrease) in cash and cash equivalents	309,916			(14,798		)	—			295,118
Cash and cash equivalents–beginning of period	186,200			142,811			—			329,011
Cash and cash equivalents–end of period	$	496,116		$	128,013		$	—		$	624,129

Condensed Consolidating Statement of Cash Flows (in thousands):



	Three Months Ended March 31, 2019
	Issuer			Guarantor Subsidiaries			Consolidating Adjustments			Consolidated TRI Pointe Group, Inc.
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	15,054		$	(129,979	)	$	—		$	(114,925	)
Cash flows from investing activities:
Purchases of property and equipment	(2,065		)	(5,159		)	—			(7,224		)
Proceeds from sale of property and equipment	—			7			—			7
Investments in unconsolidated entities	—			(231		)	—			(231		)
Intercompany	(98,723		)	—			98,723			—
Net cash used in investing activities	(100,788		)	(5,383		)	98,723			(7,448		)
Cash flows from financing activities:
Repayment of notes payable	(10		)	—			—			(10		)
Debt issuance costs	(3,124		)	—			—			(3,124		)
Proceeds from issuance of common stock under share-based awards	198			—			—			198
Minimum tax withholding paid on behalf of employees for restricted stock units	(3,605		)	—			—			(3,605		)
Intercompany	—			98,723			(98,723		)	—
Net cash (used in) provided by financing activities	(6,541		)	98,723			(98,723		)	(6,541		)
Net decrease in cash and cash equivalents	(92,275		)	(36,639		)	—			(128,914		)
Cash and cash equivalents–beginning of period	148,129			129,567			—			277,696
Cash and cash equivalents–end of period	$	55,854		$	92,928		$	—		$	148,782

Organization, Basis of Presentation and Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Organization and Basis of Presentation

Organization

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

Basis of Presentation

The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They should be read in conjunction with our consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019. In the opinion of management, all adjustments consisting of normal recurring adjustments, necessary for a fair presentation with respect to interim financial statements, have been included. The results for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for the full year ending December 31, 2020 due to seasonal variations and other factors, such as the effects of the novel coronavirus (“COVID-19”) and its influence on our future results.

The consolidated financial statements include the accounts of TRI Pointe Group and its wholly owned subsidiaries, as well as other entities in which TRI Pointe Group has a controlling interest and variable interest entities (“VIEs”) in which TRI Pointe Group is the primary beneficiary. The noncontrolling interests as of March 31, 2020 and December 31, 2019 represent the outside owners’ interests in the Company’s consolidated entities. All significant intercompany accounts have been eliminated upon consolidation.

Use of Estimates

Our financial statements have been prepared in accordance with GAAP. The preparation of these financial statements requires our management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from our estimates.

Revenue Recognition

We recognize revenue in accordance with Accounting Standards Topic 606 (“ASC 606”), Revenue from Contracts with Customers. Under ASC 606, we apply the following steps to determine the timing and amount of revenue to recognize: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation.

Home sales revenue

We generate the majority of our total revenues from home sales, which consists of our core business operation of building and delivering completed homes to homebuyers. Home sales revenue and related profit is generally recognized when title to and possession of the home is transferred to the homebuyer at the home closing date. Our performance obligation to deliver the agreed-upon home is generally satisfied in less than one year from the original contract date. Included in home sales revenue are forfeited deposits, which occur when homebuyers cancel home purchase contracts that include a nonrefundable deposit. Both revenue from forfeited deposits and deferred revenue resulting from uncompleted performance obligations existing at the time we deliver new homes to our homebuyers are immaterial.

Land and lot sales revenue

Historically, we have generated land and lot sales revenue from a small number of transactions, although in some years we have realized a significant amount of revenue and gross margin. We do not expect our future land and lot sales revenue to be material, but we still consider these sales to be an ordinary part of our business, thus meeting the definition of contracts with customers. Similar to our home sales, revenue from land and lot sales is typically fully recognized when the land and lot sales transactions are consummated, at which time no further performance obligations are left to be satisfied. Some of our historical land and lot sales have included future profit participation rights. We will recognize future land and lot sales revenue in the periods in which all closing conditions are met, subject to the constraint on variable consideration related to profit participation rights, if such rights exist in the sales contract.

Other operations revenue

The majority of our homebuilding other operations revenue relates to a ground lease at our Quadrant Homes reporting segment. We are responsible for making lease payments to the landowner, and we collect sublease payments from the buyers of the buildings. This ground lease is accounted for in accordance with ASC Topic 842, Leases. We do not recognize a material profit on this ground lease.

Financial services revenues

TRI Pointe Solutions is a reportable segment and is comprised of our TRI Pointe Connect mortgage financing operations, TRI Pointe Assurance title and escrow services operations, and TRI Pointe Advantage property and casualty insurance agency operations.

Mortgage financing operations

TRI Pointe Connect was formed as a joint venture with an established mortgage lender and is accounted for under the equity method of accounting. We record a percentage of income earned by TRI Pointe Connect based on our ownership percentage in this joint venture. TRI Pointe Connect activity appears as equity in income of unconsolidated entities under the Financial Services section of our consolidated statements of operations.

Title and escrow services operations

TRI Pointe Assurance provides title examinations for our homebuyers in Austin, Colorado and Maryland and both title examinations and escrow services for our homebuyers in Arizona, Nevada, Texas and Virginia. TRI Pointe Assurance is a wholly owned subsidiary of TRI Pointe and acts as a title agency for First American Title Insurance Company. Revenue from our title and escrow services operations is fully recognized at the time of the consummation of the home sales transaction, at which time no further performance obligations are left to be satisfied. TRI Pointe Assurance revenue is included in the Financial Services section of our consolidated statements of operations.

Property and casualty insurance agency operations

TRI Pointe Advantage is a wholly owned subsidiary of TRI Pointe and provides property and casualty insurance agency services that help facilitate the closing process in all of the markets in which we operate. The total consideration for these services, including renewal options, is estimated upon the issuance of the initial insurance policy, subject to constraint. TRI Pointe Advantage revenue is included in the Financial Services section of our consolidated statements of operations.

Recently Issued Accounting Standards

Recently Issued Accounting Standards Not Yet Adopted

In December 2019, the FASB issued Accounting Standards Update (“ASU”) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for the Company beginning after December 15, 2020. We do not expect the adoption of ASU 2019-12 to have a material impact on our consolidated financial statements.

Adoption of New Accounting Standards

In January 2017, the FASB issued ASU No. 2017-04, Intangibles–Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment (“ASU 2017-04”), which removes the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted, and applied prospectively. We adopted ASU 2017-04 on January 1, 2020 and our adoption did not have a material impact on our consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments–Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to estimate credit losses for financial instruments, including receivables from community facilities districts or similar municipalities. ASU 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted. We adopted ASU 2016-13 on January 1, 2020 and our adoption did not have a material impact on our consolidated financial statements.

Segment Information

We operate two principal businesses: homebuilding and financial services.

Our homebuilding operations consist of six homebuilding brands that acquire and develop land and construct and sell single-family detached and attached homes. In accordance with ASC Topic 280, Segment Reporting, in determining the most appropriate reportable segments, we considered similar economic and other characteristics, including product types, average selling prices, gross profits, production processes, suppliers, subcontractors, regulatory environments, land acquisition results, and underlying demand and supply. Based upon these factors, our homebuilding operations are comprised of the following six reportable segments: Maracay, consisting of operations in Arizona; Pardee Homes, consisting of operations in California and Nevada; Quadrant Homes, consisting of operations in Washington; Trendmaker Homes, consisting of operations in Texas; TRI Pointe Homes, consisting of operations in California and Colorado, as well as early stage operations in the Carolinas; and Winchester Homes, consisting of operations in Maryland and Virginia.

Our TRI Pointe Solutions financial services operation is a reportable segment and is comprised of our TRI Pointe Connect mortgage financing operations, our TRI Pointe Assurance title and escrow services operations, and our TRI Pointe Advantage property and casualty insurance agency operations. For further details, see Note 1, Organization, Basis of Presentation and Summary of Significant Accounting Policies.

Corporate is a non-operating segment that develops and implements company-wide strategic initiatives and provides support to our homebuilding reporting segments by centralizing certain administrative functions, such as marketing, legal, accounting, treasury, insurance, internal audit and risk management, information technology and human resources, to benefit from economies of scale. Our Corporate non-operating segment also includes general and administrative expenses related to operating our corporate headquarters. A portion of the expenses incurred by Corporate is allocated to the homebuilding reporting segments.

The reportable segments follow the same accounting policies used for our consolidated financial statements, as described in Note 1, Organization, Basis of Presentation and Summary of Significant Accounting Policies. Operational results of each reportable segment are not necessarily indicative of the results that would have been achieved had the reportable segment been an independent, stand-alone entity during the periods presented.

Fair Value Measurements

ASC Topic 820, Fair Value Measurements and Disclosures, defines “fair value” as the price that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at measurement date and requires assets and liabilities carried at fair value to be classified and disclosed in the following three categories:


•	Level 1—Quoted prices for identical instruments in active markets


•	Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are inactive; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets at measurement date

•

Level 3—Valuations derived from techniques where one or more significant inputs or significant value drivers are unobservable in active markets at measurement date

Segment Information (Tables)

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Summary of Financial Information Relating to Reportable Segments

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



	Three Months Ended March 31,
	2020			2019
Revenues
Maracay	$	71,752		$	39,561
Pardee Homes	178,402			134,863
Quadrant Homes	44,074			43,871
Trendmaker Homes	96,120			70,821
TRI Pointe Homes	158,670			171,791
Winchester Homes	46,438			33,423
Total homebuilding revenues	595,456			494,330
Financial services	1,594			302
Total	$	597,050		$	494,632

Income (loss) before income taxes
Maracay	$	4,562		$	1,190
Pardee Homes	33,479			(791		)
Quadrant Homes	2,697			(2,639		)
Trendmaker Homes	4,797			(1,598		)
TRI Pointe Homes	4,360			10,209
Winchester Homes	1,046			(766		)
Corporate	(11,308		)	(6,266		)
Total homebuilding income (loss) before income taxes	39,633			(661		)
Financial services	2,071			756
Total	$	41,704		$	95

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



	March 31, 2020		December 31, 2019
Real estate inventories
Maracay	$	359,299	$	338,259
Pardee Homes	1,261,573		1,218,384
Quadrant Homes	265,644		264,437
Trendmaker Homes	280,475		268,759
TRI Pointe Homes	759,637		737,662
Winchester Homes	267,520		237,935
Total	$	3,194,148	$	3,065,436

Total assets
Maracay	$	401,387	$	382,262
Pardee Homes	1,382,226		1,300,047
Quadrant Homes	328,654		331,187
Trendmaker Homes	350,155		353,610
TRI Pointe Homes	948,577		930,348
Winchester Homes	310,457		291,456
Corporate	541,751		241,357
Total homebuilding assets	4,263,207		3,830,267
Financial services	29,846		28,423
Total	$	4,293,053	$	3,858,690

Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share

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



	Three Months Ended March 31,
	2020		2019
Numerator:
Net income	$	31,883	$	71
Denominator:
Basic weighted-average shares outstanding	134,361,148		141,865,270
Effect of dilutive shares:
Stock options and unvested restricted stock units	677,333		524,893
Diluted weighted-average shares outstanding	135,038,481		142,390,163
Earnings per share
Basic	$	0.24	$	0.00
Diluted	$	0.24	$	0.00
Antidilutive stock options and unvested restricted stock units not included in diluted earnings per share	2,687,357		2,864,509

Receivables (Tables)

3 Months Ended

Mar. 31, 2020

Receivables [Abstract]

Components of Receivables

Receivables consisted of the following (in thousands):



	March 31, 2020		December 31, 2019
Escrow proceeds and other accounts receivable, net	$	43,688	$	29,282
Warranty insurance receivable (Note 13)	40,013		39,994
Total receivables	$	83,701	$	69,276

Real Estate Inventories (Tables)

3 Months Ended

Mar. 31, 2020

Inventory Disclosure [Abstract]

Summary of Real Estate Inventories

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



	March 31, 2020		December 31, 2019
Real estate inventories owned:
Homes completed or under construction	$	1,128,763	$	951,974
Land under development	1,532,370		1,641,354
Land held for future development	154,615		122,847
Model homes	287,491		275,204
Total real estate inventories owned	3,103,239		2,991,379
Real estate inventories not owned:
Land purchase and land option deposits	90,909		74,057
Total real estate inventories not owned	90,909		74,057
Total real estate inventories	$	3,194,148	$	3,065,436

Summary of Interest Incurred, Capitalized and Expensed

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



	Three Months Ended March 31,
	2020			2019
Interest incurred	$	20,779		$	23,373
Interest capitalized	(20,779		)	(23,373		)
Interest expensed	$	—		$	—
Capitalized interest in beginning inventory	$	192,356		$	184,400
Interest capitalized as a cost of inventory	20,779			23,373
Interest previously capitalized as a cost of inventory, included in cost of sales	(16,822		)	(14,333		)
Capitalized interest in ending inventory	$	196,313		$	193,440

Schedule of Real Estate Inventory Impairments and Land Option Abandonments

Real estate inventory impairments and land and lot option abandonments and pre-acquisition charges consisted of the following (in thousands):



	Three Months Ended March 31,
	2020		2019
Real estate inventory impairments	$	—	$	—
Land and lot option abandonments and pre-acquisition charges	349		5,202
Total	$	349	$	5,202

Investments in Unconsolidated Entities (Tables)

3 Months Ended

Mar. 31, 2020

Equity Method Investments and Joint Ventures [Abstract]

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

Assets and liabilities of unconsolidated entities (in thousands):



	March 31, 2020		December 31, 2019
Assets
Cash	$	6,623	$	8,537
Receivables	5,840		7,393
Real estate inventories	117,447		116,760
Other assets	640		703
Total assets	$	130,550	$	133,393
Liabilities and equity
Accounts payable and other liabilities	$	7,749	$	11,009
Company’s equity	11,091		11,745
Outside interests’ equity	111,710		110,639
Total liabilities and equity	$	130,550	$	133,393

Results of operations from unconsolidated entities (in thousands):



	Three Months Ended March 31,
	2020			2019
Net sales	$	5,970		$	4,111
Other operating expense	(3,756		)	(2,752		)
Other income, net	(3		)	8
Net income	$	2,211		$	1,367
Company’s equity in income of unconsolidated entities	$	1,542		$	750

Variable Interest Entities (Tables)

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Interests in Land Option Agreements

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



	March 31, 2020						December 31, 2019
	Deposits		Remaining Purchase Price		Consolidated Inventory Held by VIEs		Deposits		Remaining Purchase Price		Consolidated Inventory Held by VIEs
Consolidated VIEs	$	—	$	—	$	—	$	—	$	—	$	—
Unconsolidated VIEs	42,482		480,818		N/A		42,896		440,974		N/A
Other land option agreements	48,427		415,818		N/A		31,161		358,345		N/A
Total	$	90,909	$	896,636	$	—	$	74,057	$	799,319	$	—

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

Goodwill and Other Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill and Other Intangible Assets

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



	March 31, 2020							December 31, 2019
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Goodwill	$	139,304	$	—		$	139,304	$	139,304	$	—		$	139,304
Trade names	27,979		(7,524		)	20,455		27,979		(7,390		)	20,589
Total	$	167,283	$	(7,524	)	$	159,759	$	167,283	$	(7,390	)	$	159,893

Schedule of Expected Amortization of Intangible Asset

Expected amortization of our intangible asset related to Maracay for the remainder of 2020, the next four years and thereafter is (in thousands):



Remainder of 2020	$	400
2021	534
2022	534
2023	534
2024	534
Thereafter	619
Total	$	3,155

Other Assets (Tables)

3 Months Ended

Mar. 31, 2020

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

Schedule of Other Assets

Other assets consisted of the following (in thousands):



	March 31, 2020		December 31, 2019
Prepaid expenses	$	26,509	$	24,070
Refundable fees and other deposits	26,994		30,242
Development rights, held for future use or sale	2,159		2,213
Deferred loan costs—loans payable	4,027		4,345
Operating properties and equipment, net	60,882		57,803
Lease right-of-use assets	50,050		50,947
Other	3,338		3,805
Total	$	173,959	$	173,425

Accrued Expenses and Other Liabilities (Tables)

3 Months Ended

Mar. 31, 2020

Payables and Accruals [Abstract]

Schedule of Accrued Expenses and Other Liabilities

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



	March 31, 2020		December 31, 2019
Accrued payroll and related costs	$	17,884	$	42,798
Warranty reserves(Note 13)	76,487		76,607
Estimated cost for completion of real estate inventories	89,132		90,899
Customer deposits	28,048		20,390
Income tax liability to Weyerhaeuser	346		346
Accrued income taxes payable	7,757		1,530
Liability for uncertain tax positions (Note 15)	486		486
Accrued interest	18,913		11,952
Other tax liability	8,095		8,448
Lease liabilities	55,160		56,125
Other	13,252		12,462
Total	$	315,560	$	322,043

Senior Notes and Loans Payable (Tables)

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Schedule of Senior Notes and Loans Payable

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



	March 31, 2020			December 31, 2019
4.875% Senior Notes due July 1, 2021	$	300,000		$	300,000
5.875% Senior Notes due June 15, 2024	450,000			450,000
5.250% Senior Notes due June 1, 2027	300,000			300,000
Discount and deferred loan costs	(15,075		)	(16,015		)
Total	$	1,034,925		$	1,033,985

The Company’s outstanding loans payable consisted of the following (in thousands):



	March 31, 2020		December 31, 2019
Term loan facility	$	250,000	$	250,000
Unsecured revolving credit facility	500,000		—
Total	$	750,000	$	250,000

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 210
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+ Details

Fair Value Disclosures (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

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

A summary of assets and liabilities at March 31, 2020 and December 31, 2019, related to our financial instruments, measured at fair value on a recurring basis, is set forth below (in thousands):



		March 31, 2020				December 31, 2019
	Hierarchy	Book Value		Fair Value		Book Value		Fair Value
Senior Notes⁽¹⁾	Level 2	$	1,045,373	$	925,500	$	1,045,072	$	1,104,750
Unsecured revolving credit facility⁽²⁾	Level 2	$	500,000	$	500,000	$	—	$	—
Term loan facility⁽²⁾	Level 2	$	250,000	$	250,000	$	250,000	$	250,000

__________


⁽¹⁾	The book value of the Senior Notes is net of discounts, excluding deferred loan costs of $10.4 million and $11.1 million as of March 31, 2020 and December 31, 2019, respectively. The estimated fair value of the Senior Notes at March 31, 2020 and December 31, 2019 is based on quoted market prices.


⁽²⁾	The estimated fair value of the Credit Facility and Term Loan Facility as of March 31, 2020 approximated book value due to the variable interest rate terms of these loans.

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Schedule of Warranty Reserves

Warranty reserve activity consisted of the following (in thousands):



	Three Months Ended March 31,
	2020			2019
Warranty reserves, beginning of period	$	76,607		$	71,836
Warranty reserves accrued	5,156			4,270
Warranty expenditures	(5,276		)	(5,159		)
Warranty reserves, end of period	$	76,487		$	70,947

Schedule of Lease Costs and Other Information

See below for additional information on leases (dollars in thousands):



	Three Months Ended March 31, 2020			Three Months Ended March 31, 2019
Lease Cost
Operating lease cost (included in SG&A expense)	$	2,338		$	2,044
Ground lease cost (included in other operations expense)	624			590
Sublease income, ground leases (included in other operations revenue)	(618		)	(598		)
Net lease cost	$	2,344		$	2,036

Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating lease cash flows (included in operating cash flows)	$	2,014		$	1,609
Ground lease cash flows (included in operating cash flows)	$	624		$	608
Right-of-use assets obtained in exchange for new operating lease liabilities	$	20		$	1,707



	March 31, 2020		December 31, 2019
Weighted-average discount rate:
Operating leases	5.9	%	5.9	%
Ground leases	10.2	%	10.2	%
Weighted-average remaining lease term (in years):
Operating leases	5.9		6.1
Ground leases	47.8		48.1

Schedule of Future Minimum Lease Payments

The future minimum lease payments under our operating leases are as follows (in thousands):



	Property, Equipment and Other Leases		Ground Leases ⁽¹⁾
Remaining in 2020	$	7,241	$	2,302
2021	7,198		3,070
2022	5,602		3,070
2023	4,496		3,070
2024	2,772		3,070
Thereafter	6,407		83,516
Total lease payments	$	33,716	$	98,098
Less: Interest	6,154		70,501
Present value of operating lease liabilities	$	27,562	$	27,597

⁽¹⁾Ground leases are fully subleased through 2041, representing $66.3 million of the $98.1 million future ground lease obligations.

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

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

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



	Three Months Ended March 31,
	2020		2019
Total stock-based compensation	$	3,625	$	3,435

Summary of Stock Option Awards

The following table presents a summary of stock option awards for the three months ended March 31, 2020:



	Options		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value (in thousands)
Options outstanding at December 31, 2019	891,343		$	15.03	3.4	$	994
Granted	—		—		—	—
Exercised	(56,598	)	$	12.47	—	—
Forfeited	—		$	—	—	—
Options outstanding at March 31, 2020	834,745		$	15.20	3.2	$	—
Options exercisable at March 31, 2020	834,745		$	15.20	3.2	$	—

Summary of Restricted Stock Units

The following table presents a summary of RSUs for the three months ended March 31, 2020:



	Restricted Stock Units		Weighted Average Grant Date Fair Value Per Share		Aggregate Intrinsic Value (in thousands)
Nonvested RSUs at December 31, 2019	3,384,351		$	12.39	$	52,694
Granted	1,411,553		$	18.71	—
Vested	(921,461	)	$	13.31	—
Forfeited	(550,994	)	$	8.92	—
Nonvested RSUs at March 31, 2020	3,323,449		$	15.40	$	30,609

Supplemental Disclosure to Consolidated Statements of Cash Flows (Tables)

3 Months Ended

Mar. 31, 2020

Supplemental Cash Flow Elements [Abstract]

Supplemental Disclosure to Consolidated Statements of Cash Flows

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



	Three Months Ended March 31,
	2020			2019
Supplemental disclosure of cash flow information:
Interest paid (capitalized), net	$	(8,220	)	$	(13,697	)
Income taxes paid (refunded), net	$	9		$	(2,538	)
Supplemental disclosures of noncash activities:
Amortization of senior note discount capitalized to real estate inventory	$	302		$	505
Amortization of deferred loan costs capitalized to real estate inventory	$	957		$	1,415

Supplemental Guarantor Information (Tables)

3 Months Ended

Mar. 31, 2020

Condensed Financial Information Disclosure [Abstract]

Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet (in thousands):



	March 31, 2020
	Issuer		Guarantor Subsidiaries		Consolidating Adjustments			Consolidated TRI Pointe Group, Inc.
Assets
Cash and cash equivalents	$	496,116	$	128,013	$	—		$	624,129
Receivables	21,554		62,147		—			83,701
Intercompany receivables	637,118		—		(637,118		)	—
Real estate inventories	759,636		2,434,512		—			3,194,148
Investments in unconsolidated entities	—		11,091		—			11,091
Goodwill and other intangible assets, net	156,604		3,155		—			159,759
Investments in subsidiaries	1,909,197		—		(1,909,197		)	—
Deferred tax assets, net	9,020		37,246		—			46,266
Other assets	9,508		164,451		—			173,959
Total assets	$	3,998,753	$	2,840,615	$	(2,546,315	)	$	4,293,053

Liabilities
Accounts payable	$	17,173	$	60,102	$	—		$	77,275
Intercompany payables	—		637,118		(637,118		)	—
Accrued expenses and other liabilities	81,374		234,186		—			315,560
Loans payable	750,000		—		—			750,000
Senior notes	1,034,925		—		—			1,034,925
Total liabilities	1,883,472		931,406		(637,118		)	2,177,760

Equity
Total stockholders’ equity	2,115,281		1,909,197		(1,909,197		)	2,115,281
Noncontrolling interests	—		12		—			12
Total equity	2,115,281		1,909,209		(1,909,197		)	2,115,293
Total liabilities and equity	$	3,998,753	$	2,840,615	$	(2,546,315	)	$	4,293,053

Condensed Consolidating Balance Sheet (in thousands):



	December 31, 2019
	Issuer		Guarantor Subsidiaries		Consolidating Adjustments			Consolidated TRI Pointe Group, Inc.
Assets
Cash and cash equivalents	$	186,200	$	142,811	$	—		$	329,011
Receivables	26,016		43,260		—			69,276
Intercompany receivables	576,846		—		(576,846		)	—
Real estate inventories	737,662		2,327,774		—			3,065,436
Investments in unconsolidated entities	—		11,745		—			11,745
Goodwill and other intangible assets, net	156,604		3,289		—			159,893
Investments in subsidiaries	1,870,885		—		(1,870,885		)	—
Deferred tax assets, net	9,020		40,884		—			49,904
Other assets	14,676		158,749		—			173,425
Total assets	$	3,577,909	$	2,728,512	$	(2,447,731	)	$	3,858,690

Liabilities
Accounts payable	$	14,915	$	51,205	$	—		$	66,120
Intercompany payables	—		576,846		(576,846		)	—
Accrued expenses and other liabilities	92,479		229,564		—			322,043
Loans payable	250,000		—		—			250,000
Senior notes	1,033,985		—		—			1,033,985
Total liabilities	1,391,379		857,615		(576,846		)	1,672,148

Equity
Total stockholders’ equity	2,186,530		1,870,885		(1,870,885		)	2,186,530
Noncontrolling interests	—		12		—			12
Total equity	2,186,530		1,870,897		(1,870,885		)	2,186,542
Total liabilities and equity	$	3,577,909	$	2,728,512	$	(2,447,731	)	$	3,858,690

Condensed Consolidating Statement of Operations

Condensed Consolidating Statement of Operations (in thousands):



	Three Months Ended March 31, 2020
	Issuer			Guarantor Subsidiaries			Consolidating Adjustments			Consolidated TRI Pointe Group, Inc.
Homebuilding:
Home sales revenue	$	158,670		$	436,168		$	—		$	594,838
Land and lot sales revenue	—			—			—			—
Other operations revenue	—			618			—			618
Total revenues	158,670			436,786			—			595,456
Cost of home sales	135,900			336,982			—			472,882
Cost of land and lot sales	—			202			—			202
Other operations expense	—			624			—			624
Sales and marketing	10,435			32,202			—			42,637
General and administrative	19,343			20,494			—			39,837
Homebuilding (loss) income from operations	(7,008		)	46,282			—			39,274
Equity in income of unconsolidated entities	—			(14		)	—			(14		)
Other income, net	192			181			—			373
Homebuilding (loss) income before income taxes	(6,816		)	46,449			—			39,633
Financial Services:
Revenues	—			1,594			—			1,594
Expenses	—			1,079			—			1,079
Equity in income of unconsolidated entities	—			1,556			—			1,556
Financial services income before income taxes	—			2,071			—			2,071
(Loss) income before income taxes	(6,816		)	48,520			—			41,704
Equity of net income of subsidiaries	38,699			—			(38,699		)	—
Provision for income taxes	—			(9,821		)	—			(9,821		)
Net income	$	31,883		$	38,699		$	(38,699	)	$	31,883

Condensed Consolidating Statement of Operations (in thousands):



	Three Months Ended March 31, 2019
	Issuer			Guarantor Subsidiaries			Consolidating Adjustments		Consolidated TRI Pointe Group, Inc.
Homebuilding:
Home sales revenue	$	171,791		$	320,912		$	—	$	492,703
Land and lot sales revenue	—			1,029			—		1,029
Other operations revenue	—			598			—		598
Total revenues	171,791			322,539			—		494,330
Cost of home sales	145,075			276,461			—		421,536
Cost of land and lot sales	—			1,495			—		1,495
Other operations expense	—			590			—		590
Sales and marketing	9,299			29,690			—		38,989
General and administrative	19,479			19,118			—		38,597
Homebuilding loss from operations	(2,062		)	(4,815		)	—		(6,877		)
Equity in loss of unconsolidated entities	—			(25		)	—		(25		)
Other income, net	6,140			101			—		6,241
Homebuilding income (loss) before income taxes	4,078			(4,739		)	—		(661		)
Financial Services:
Revenues	—			302			—		302
Expenses	—			321			—		321
Equity in income of unconsolidated entities	—			775			—		775
Financial services income before income taxes	—			756			—		756
Income (loss) before income taxes	4,078			(3,983		)	—		95
Equity of net (loss) income of subsidiaries	(4,007		)	—			4,007		—
Provision for income taxes				(24		)	—		(24		)
Net income (loss)	$	71		$	(4,007	)	$	4,007	$	71

Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows (in thousands):



	Three Months Ended March 31, 2020
	Issuer			Guarantor Subsidiaries			Consolidating Adjustments			Consolidated TRI Pointe Group, Inc.
Cash flows from operating activities:
Net cash used in operating activities	$	(21,426	)	$	(67,548	)	$	—		$	(88,974	)
Cash flows from investing activities:
Purchases of property and equipment	(2,801		)	(5,438		)	—			(8,239		)
Proceeds from sale of property and equipment	—			17			—			17
Investments in unconsolidated entities	—			(929		)	—			(929		)
Intercompany	(59,100		)	—			59,100			—
Net cash used in investing activities	(61,901		)	(6,350		)	59,100			(9,151		)
Cash flows from financing activities:
Borrowings from debt	500,000			—			—			500,000
Debt issuance costs	—			—			—			—
Proceeds from issuance of common stock under share-based awards	689			1			—			690
Minimum tax withholding paid on behalf of employees for restricted stock units	(5,445		)	(1		)	—			(5,446		)
Share repurchases	(102,001		)	—			—			(102,001		)
Intercompany	—			59,100			(59,100		)	—
Net cash provided by financing activities	393,243			59,100			(59,100		)	393,243
Net increase (decrease) in cash and cash equivalents	309,916			(14,798		)	—			295,118
Cash and cash equivalents–beginning of period	186,200			142,811			—			329,011
Cash and cash equivalents–end of period	$	496,116		$	128,013		$	—		$	624,129

Condensed Consolidating Statement of Cash Flows (in thousands):



	Three Months Ended March 31, 2019
	Issuer			Guarantor Subsidiaries			Consolidating Adjustments			Consolidated TRI Pointe Group, Inc.
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	15,054		$	(129,979	)	$	—		$	(114,925	)
Cash flows from investing activities:
Purchases of property and equipment	(2,065		)	(5,159		)	—			(7,224		)
Proceeds from sale of property and equipment	—			7			—			7
Investments in unconsolidated entities	—			(231		)	—			(231		)
Intercompany	(98,723		)	—			98,723			—
Net cash used in investing activities	(100,788		)	(5,383		)	98,723			(7,448		)
Cash flows from financing activities:
Repayment of notes payable	(10		)	—			—			(10		)
Debt issuance costs	(3,124		)	—			—			(3,124		)
Proceeds from issuance of common stock under share-based awards	198			—			—			198
Minimum tax withholding paid on behalf of employees for restricted stock units	(3,605		)	—			—			(3,605		)
Intercompany	—			98,723			(98,723		)	—
Net cash (used in) provided by financing activities	(6,541		)	98,723			(98,723		)	(6,541		)
Net decrease in cash and cash equivalents	(92,275		)	(36,639		)	—			(128,914		)
Cash and cash equivalents–beginning of period	148,129			129,567			—			277,696
Cash and cash equivalents–end of period	$	55,854		$	92,928		$	—		$	148,782

Organization, Basis of Presentation and Summary of Significant Accounting Policies (Details)	Mar. 31, 2020 state brand
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of brands in portfolio (brands) \| brand	6
Number of states entity operates (states) \| state	10

Segment Information - Additional Information (Detail)	3 Months Ended
Segment Information - Additional Information (Detail)	Mar. 31, 2020 business segment
Segment Reporting Information
Number of principal lines of businesses \| business	2
All HomeBuilding Segments
Segment Reporting Information
Number of homebuilding companies	6
Number of reportable segments	6

Segment Information - Summary of Financial Information Relating to Reportable Segments (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Segment Reporting Information
Total revenues	$ 597,050	$ 494,632
Income (loss) before income taxes	41,704	95
Real estate inventories	3,194,148		$ 3,065,436
Total assets	4,293,053		3,858,690
All HomeBuilding Segments
Segment Reporting Information
Real estate inventories	3,194,148		3,065,436
Total assets	4,263,207		3,830,267
Homebuilding
Segment Reporting Information
Total revenues	595,456	494,330
Homebuilding \| All HomeBuilding Segments
Segment Reporting Information
Total revenues	595,456	494,330
Income (loss) before income taxes	39,633	(661)
Financial Services
Segment Reporting Information
Total revenues	1,594	302
Operating segments \| Maracay
Segment Reporting Information
Real estate inventories	359,299		338,259
Total assets	401,387		382,262
Operating segments \| Pardee Homes
Segment Reporting Information
Real estate inventories	1,261,573		1,218,384
Total assets	1,382,226		1,300,047
Operating segments \| Quadrant Homes
Segment Reporting Information
Real estate inventories	265,644		264,437
Total assets	328,654		331,187
Operating segments \| Trendmaker Homes
Segment Reporting Information
Real estate inventories	280,475		268,759
Total assets	350,155		353,610
Operating segments \| TRI Pointe Homes
Segment Reporting Information
Real estate inventories	759,637		737,662
Total assets	948,577		930,348
Operating segments \| Winchester Homes
Segment Reporting Information
Real estate inventories	267,520		237,935
Total assets	310,457		291,456
Operating segments \| Financial services
Segment Reporting Information
Total assets	29,846		28,423
Operating segments \| Homebuilding \| Maracay
Segment Reporting Information
Total revenues	71,752	39,561
Income (loss) before income taxes	4,562	1,190
Operating segments \| Homebuilding \| Pardee Homes
Segment Reporting Information
Total revenues	178,402	134,863
Income (loss) before income taxes	33,479	(791)
Operating segments \| Homebuilding \| Quadrant Homes
Segment Reporting Information
Total revenues	44,074	43,871
Income (loss) before income taxes	2,697	(2,639)
Operating segments \| Homebuilding \| Trendmaker Homes
Segment Reporting Information
Total revenues	96,120	70,821
Income (loss) before income taxes	4,797	(1,598)
Operating segments \| Homebuilding \| TRI Pointe Homes
Segment Reporting Information
Total revenues	158,670	171,791
Income (loss) before income taxes	4,360	10,209
Operating segments \| Homebuilding \| Winchester Homes
Segment Reporting Information
Total revenues	46,438	33,423
Income (loss) before income taxes	1,046	(766)
Operating segments \| Financial Services \| Financial services
Segment Reporting Information
Income (loss) before income taxes	2,071	756
Corporate
Segment Reporting Information
Total assets	541,751		$ 241,357
Corporate \| Homebuilding
Segment Reporting Information
Income (loss) before income taxes	$ (11,308)	$ (6,266)

Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Numerator:
Net income	$ 31,883	$ 71
Denominator:
Basic weighted-average shares outstanding (shares)	134,361,148	141,865,270
Effect of dilutive shares:
Stock options and unvested restricted stock units (shares)	677,333	524,893
Diluted weighted-average shares outstanding (shares)	135,038,481	142,390,163
Earnings per share
Basic (in dollars per share)	$ 0.24	$ 0.00
Diluted (in dollars per share)	$ 0.24	$ 0.00
Antidilutive stock options and unvested restricted stock units not included in diluted earnings per share (in shares)	2,687,357	2,864,509

Receivables - Components of Receivables (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Receivables [Abstract]
Escrow proceeds and other accounts receivable, net	$ 43,688	$ 29,282
Warranty insurance receivable (Note 13)	40,013	39,994
Total receivables	$ 83,701	$ 69,276

Receivables - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Receivables [Abstract]
Allowance for doubtful accounts	$ 419	$ 426

Real Estate Inventories - Summary of Real Estate Inventories (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Real estate inventories owned:
Homes completed or under construction	$ 1,128,763	$ 951,974
Land under development	1,532,370	1,641,354
Land held for future development	154,615	122,847
Model homes	287,491	275,204
Total real estate inventories owned	3,103,239	2,991,379
Real estate inventories not owned:
Land purchase and land option deposits	90,909	74,057
Total real estate inventories not owned	90,909	74,057
Total real estate inventories	$ 3,194,148	$ 3,065,436

Real Estate Inventories - Summary of Interest Incurred, Capitalized and Expensed (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Real Estate [Abstract]
Interest incurred	$ 20,779	$ 23,373
Interest capitalized	(20,779)	(23,373)
Interest expensed	0	0
Real Estate Inventory, Capitalized Interest Costs [Roll Forward]
Capitalized interest in beginning inventory	192,356	184,400
Interest capitalized as a cost of inventory	20,779	23,373
Interest previously capitalized as a cost of inventory, included in cost of sales	(16,822)	(14,333)
Capitalized interest in ending inventory	$ 196,313	$ 193,440

Real Estate Inventories - Schedule of Land and Lot Option Abandonments and Pre-acquisition Charges (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Real Estate [Abstract]
Real estate inventory impairments	$ 0	$ 0
Land and lot option abandonments and pre-acquisition charges	349,000	5,202,000
Total	$ 349,000	$ 5,202,000

Investments in Unconsolidated Entities - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2020 investment
Minimum
Investment Holdings [Line Items]
Ownership percentage	7.00%
Maximum
Investment Holdings [Line Items]
Ownership percentage	65.00%
Homebuilding Partnerships or Limited Liability Companies
Investment Holdings [Line Items]
Number of equity investments	5
Financial Services Limited Liability Company
Investment Holdings [Line Items]
Number of equity investments	1

Investments in Unconsolidated Entities - Aggregated Assets, Liabilities and Operating Results of Entities as Equity-Method Investments (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Assets
Total assets	$ 130,550		$ 133,393
Liabilities and equity
Accounts payable and other liabilities	7,749		11,009
Company’s equity	11,091		11,745
Outside interests’ equity	111,710		110,639
Total liabilities and equity	130,550		133,393
Net sales	5,970	$ 4,111
Other operating expense	(3,756)	(2,752)
Other income, net	(3)	8
Net income	2,211	1,367
Company’s equity in income of unconsolidated entities	1,542	$ 750
Cash
Assets
Total assets	6,623		8,537
Receivables
Assets
Total assets	5,840		7,393
Real estate inventories
Assets
Total assets	117,447		116,760
Other assets
Assets
Total assets	$ 640		$ 703

Variable Interest Entities - Summary of Interests in Land Option Agreements (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Variable Interest Entity
Deposits	$ 90,909	$ 74,057
Remaining Purchase Price	896,636	799,319
Consolidated inventory held by VIEs	0	0
Consolidated VIEs
Variable Interest Entity
Deposits	0	0
Remaining Purchase Price	0	0
Consolidated inventory held by VIEs	0	0
Unconsolidated VIEs
Variable Interest Entity
Deposits	42,482	42,896
Remaining Purchase Price	480,818	440,974
Other land option agreements
Variable Interest Entity
Deposits	48,427	31,161
Remaining Purchase Price	$ 415,818	$ 358,345

Variable Interest Entities - Additional Information (Detail) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Other land option agreements
Variable Interest Entity
Capitalized pre-acquisition costs	$ 6.4	$ 6.0

Goodwill and Other Intangible Assets - Schedule of Goodwill and Other Intangible Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 139,304	$ 139,304
Trade names, Gross Carrying Amount	27,979	27,979
Gross Carrying Amount	167,283	167,283
Accumulated Amortization	(7,524)	(7,390)
Trade names, Net Carrying Amount	20,455	20,589
Net Carrying Amount	$ 159,759	$ 159,893

Goodwill and Other Intangible Assets - Additional Information (Detail) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020 USD ($) asset	Mar. 31, 2019 USD ($)	Dec. 31, 2018	Dec. 31, 2019 USD ($)
Schedule Of Intangible Assets And Goodwill [Line Items]
Goodwill	$ 139,304			$ 139,304
Number of intangible assets \| asset	2
Net carrying amount of intangible asset	$ 3,155			3,300
Trade Names
Schedule Of Intangible Assets And Goodwill [Line Items]
Indefinite life intangible asset	$ 17,300
Trade Names
Schedule Of Intangible Assets And Goodwill [Line Items]
Remaining useful life of amortizing asset	5 years 10 months 24 days		6 years 2 months 12 days
Amortization expense	$ 134	$ 134
Maracay
Schedule Of Intangible Assets And Goodwill [Line Items]
Intangible assets useful life	20 years
WRECO Transaction
Schedule Of Intangible Assets And Goodwill [Line Items]
Goodwill	$ 139,300			$ 139,300

Goodwill and Other Intangible Assets - Schedule of Expected Amortization of Intangible Asset (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2020	$ 400
2021	534
2022	534
2023	534
2024	534
Thereafter	619
Total	$ 3,155	$ 3,300

Other Assets - Schedule of Other Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid expenses	$ 26,509	$ 24,070
Refundable fees and other deposits	26,994	30,242
Development rights, held for future use or sale	2,159	2,213
Deferred loan costs—loans payable	4,027	4,345
Operating properties and equipment, net	60,882	57,803
Lease right-of-use assets	50,050	50,947
Other	3,338	3,805
Total	$ 173,959	$ 173,425

Accrued Expenses and Other Liabilities - Schedule of Accrued Expenses and Other Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Accrued payroll and related costs	$ 17,884	$ 42,798
Warranty reserves (Note 13)	76,487	76,607	$ 70,947	$ 71,836
Estimated cost for completion of real estate inventories	89,132	90,899
Customer deposits	28,048	20,390
Income tax liability to Weyerhaeuser	346	346
Accrued income taxes payable	7,757	1,530
Liability for uncertain tax positions (Note 15)	486	486
Accrued interest	18,913	11,952
Other tax liability	8,095	8,448
Lease liabilities	55,160	56,125
Other	13,252	12,462
Total	$ 315,560	$ 322,043

Senior Notes and Loans Payable - Schedule of Senior Notes (Detail) - Senior Notes - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Debt Instrument
Discount and deferred loan costs	$ (15,075)	$ (16,015)
Total	1,034,925	1,033,985
4.875% Senior notes due July 1, 2021
Debt Instrument
Senior notes (gross)	300,000	300,000
5.875% Senior notes due June 15, 2024
Debt Instrument
Senior notes (gross)	450,000	450,000
5.250% Senior notes due June 1, 2027
Debt Instrument
Senior notes (gross)	$ 300,000	$ 300,000

Senior Notes and Loans Payable - Schedule of Senior Notes (Phantoms) (Detail) - Senior Notes	Mar. 31, 2020	Mar. 29, 2019	Jun. 30, 2017	May 31, 2016
4.375% Senior notes due June 15, 2019
Debt Instrument
Interest rate on senior note (percent)		4.375%
4.875% Senior notes due July 1, 2021
Debt Instrument
Interest rate on senior note (percent)	4.875%			4.875%
5.875% Senior notes due June 15, 2024
Debt Instrument
Interest rate on senior note (percent)	5.875%
5.250% Senior notes due June 1, 2027
Debt Instrument
Interest rate on senior note (percent)	5.25%		5.25%

Senior Notes and Loans Payable - Additional Information (Detail) - USD ($)	1 Months Ended			3 Months Ended
	Jun. 30, 2019	Jun. 30, 2017	May 31, 2016	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Mar. 29, 2019
Debt Instrument
Repurchased principal					$ 10,000
Capitalization of deferred finance costs				$ 4,027,000		$ 4,345,000
Accrued interest				18,913,000		11,952,000
Loans payable				750,000,000		250,000,000
Interest incurred				20,779,000	23,373,000
Amortization of deferred financing costs				1,300,000	$ 1,900,000
Senior Notes
Debt Instrument
Capitalization of deferred finance costs				10,400,000		11,100,000
Accrued interest				$ 16,700,000		9,800,000
5.250% Senior notes due June 1, 2027 \| Senior Notes
Debt Instrument
Aggregate principal amount		$ 300,000,000
Interest rate on debt instrument (percent)		5.25%		5.25%
Debt issuance, percentage of aggregate principal (percent)		100.00%
Proceeds from issuance of senior notes, net		$ 296,300,000
4.875% Senior notes due July 1, 2021 \| Senior Notes
Debt Instrument
Aggregate principal amount			$ 300,000,000
Interest rate on debt instrument (percent)			4.875%	4.875%
Debt issuance, percentage of aggregate principal (percent)			99.44%
Proceeds from issuance of senior notes, net			$ 293,900,000
4.375% Senior notes due June 15, 2019 \| Senior Notes
Debt Instrument
Interest rate on debt instrument (percent)							4.375%
5.875% Senior notes due June 15, 2024 \| Senior Notes
Debt Instrument
Aggregate principal amount				$ 450,000,000
Interest rate on debt instrument (percent)				5.875%
Debt issuance, percentage of aggregate principal (percent)				98.15%
Proceeds from issuance of senior notes, net				$ 429,000,000.0
The Facility
Debt Instrument
Maximum borrowing capacity under facility							$ 1,000,000,000
Consolidated tangible net worth attributed to Company required under covenants (percent)				97.00%
The Revolving Facility \| The Revolving Facility
Debt Instrument
Capitalization of deferred finance costs				$ 4,000,000.0
Accrued interest				1,400,000		1,200,000
Borrowing capacity of credit facility							600,000,000
Loans payable				$ 500,000,000		0
Interest rate of outstanding debt (percent)				2.15%
Available secured revolving credit facility				$ 53,400,000
The Revolving Facility \| The Revolving Facility \| Minimum
Debt Instrument
Debt instrument variable interest rate (percent)				1.25%
The Revolving Facility \| The Revolving Facility \| Maximum
Debt Instrument
Debt instrument variable interest rate (percent)				2.00%
The Revolving Facility \| Letters of credit
Debt Instrument
Maximum borrowing capacity under facility							75,000,000
Outstanding letters of credit				$ 46,600,000		32,600,000
The Term Facility \| Term Loan
Debt Instrument
Borrowing capacity of credit facility				250,000,000			$ 250,000,000
Expected draw from the Term Facility	$ 250,000,000
Loans payable				$ 250,000,000		$ 250,000,000
Interest rate of outstanding debt (percent)				2.93%
The Term Facility \| Term Loan \| Minimum
Debt Instrument
Debt instrument variable interest rate (percent)				1.10%
The Term Facility \| Term Loan \| Maximum
Debt Instrument
Debt instrument variable interest rate (percent)				1.85%

Senior Notes and Loans Payable - Schedule of Outstanding Loans Payable (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Line of Credit Facility
Loans payable	$ 750,000	$ 250,000
The Revolving Facility \| The Revolving Facility
Line of Credit Facility
Loans payable	500,000	0
Term Loan \| The Term Facility
Line of Credit Facility
Loans payable	$ 250,000	$ 250,000

Fair Value Disclosures - Summary of Assets and Liabilities Related to Financial Instruments, Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Deferred loan costs—loans payable	$ 4,027	$ 4,345
Senior Notes
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Deferred loan costs—loans payable	10,400	11,100
Level 2 \| Recurring \| Unsecured revolving credit facility \| Book Value
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Financial instruments	500,000	0
Level 2 \| Recurring \| Unsecured revolving credit facility \| Fair Value
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Financial instruments	500,000	0
Level 2 \| Recurring \| The Term Facility \| Book Value
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Financial instruments	250,000	250,000
Level 2 \| Recurring \| The Term Facility \| Fair Value
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Financial instruments	250,000	250,000
Level 2 \| Recurring \| Senior Notes \| Book Value
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Financial instruments	1,045,373	1,045,072
Level 2 \| Recurring \| Senior Notes \| Fair Value
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Financial instruments	$ 925,500	$ 1,104,750

Commitments and Contingencies - Additional Information (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 1987 lease lease_extension lease_renewal	Mar. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Commitment And Contingencies
Legal reserves		$ 319	$ 419
Outstanding warranty insurance receivables		40,013	39,994
Estimated remaining liabilities related to surety bonds		13,252	12,462
Surety bonds
Commitment And Contingencies
Outstanding surety bonds		627,300	611,600
Estimated remaining liabilities related to surety bonds		$ 399,900	$ 382,300
Office Leases
Commitment And Contingencies
Lease obligation original term		10 years
Equipment Leases \| Minimum
Commitment And Contingencies
Lease obligation original term		3 years
Equipment Leases \| Maximum
Commitment And Contingencies
Lease obligation original term		4 years
Ground lease
Commitment And Contingencies
Lease obligation original term	55 years
Number of properties subject to ground leases \| lease	2
Ten Year Renewal Option \| Ground lease
Commitment And Contingencies
Number of lease extensions \| lease_renewal	3
Term of lease extension	10 years
Forty-five Year Renewal Option \| Ground lease
Commitment And Contingencies
Lease obligation original term	45 years
Number of properties subject to ground leases \| lease	1
Extension Through 2071 \| Ground lease
Commitment And Contingencies
Number of ground leases extended \| lease_extension	1

Commitments and Contingencies - Schedule of Warranty Reserves (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Movement in Standard Product Warranty Accrua
Warranty reserves, beginning of period	$ 76,607	$ 71,836
Warranty reserves accrued	5,156	4,270
Warranty expenditures	(5,276)	(5,159)
Warranty reserves, end of period	$ 76,487	$ 70,947

Commitments and Contingencies - Schedule of Lease Costs and Other Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Lessee, Lease, Description
Net lease cost	$ 2,344	$ 2,036
Right-of-use assets obtained in exchange for new operating lease liabilities	20	1,707
Operating Leases
Lessee, Lease, Description
Lease cost	2,338	2,044
Cash paid for amounts included in the measurement of lease liabilities	$ 2,014	1,609
Weighted-average discount rate (percent)	5.90%		5.90%
Weighted-average remaining lease term (in years):	5 years 10 months 24 days		6 years 1 month 6 days
Ground lease
Lessee, Lease, Description
Lease cost	$ 624	590
Sublease income, ground leases (included in other operations revenue)	(618)	(598)
Cash paid for amounts included in the measurement of lease liabilities	$ 624	$ 608
Weighted-average discount rate (percent)	10.20%		10.20%
Weighted-average remaining lease term (in years):	47 years 9 months 18 days		48 years 1 month 6 days

Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Lessee, Lease, Description
Present value of operating lease liabilities	$ 55,160	$ 56,125
Operating Leases
Lessee, Lease, Description
Remaining in 2020	7,241
2021	7,198
2022	5,602
2023	4,496
2024	2,772
Thereafter	6,407
Total lease payments	33,716
Less: Interest	6,154
Present value of operating lease liabilities	27,562
Ground lease
Lessee, Lease, Description
Remaining in 2020	2,302
2021	3,070
2022	3,070
2023	3,070
2024	3,070
Thereafter	83,516
Total lease payments	98,098
Less: Interest	70,501
Present value of operating lease liabilities	27,597
Future expected payments to be received under sublease	$ 66,300

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions							3 Months Ended
	Mar. 09, 2020	Feb. 20, 2020	May 06, 2019	Mar. 11, 2019	Mar. 11, 2019	Feb. 28, 2019	Mar. 31, 2020	May 07, 2018	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award
Unrecognized stock based compensation related to all stock-based awards							$ 30.6
Weighted average period, expense to recognize							2 years 3 months 18 days
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock units, granted (shares)							1,411,553
Granted (in dollars per share)							$ 18.71
Fair value of RSUs (in dollars per share)							$ 15.40		$ 12.39
Restricted Stock Units (RSUs) \| Time-vested RSUs
Share-based Compensation Arrangement by Share-based Payment Award
Vesting rights (percent)						30.00%
Restricted Stock Units (RSUs) \| Performance-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award
Vesting rights (percent)						70.00%
Restricted Stock Units (RSUs) \| Performance-based RSUs \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award
Vesting rights (percent)						0.00%
Restricted Stock Units (RSUs) \| Performance-based RSUs \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award
Vesting rights (percent)						100.00%
Restricted Stock Units (RSUs) \| Officers
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock units, granted (shares)		547,166
Potential change in TSR (percent)		25.00%
Granted (in dollars per share)		$ 19.36
Restricted Stock Units (RSUs) \| Officers \| Homebuilding revenue
Share-based Compensation Arrangement by Share-based Payment Award
Performance percentage (percent)		50.00%
Restricted Stock Units (RSUs) \| Officers \| Pre-tax earnings
Share-based Compensation Arrangement by Share-based Payment Award
Performance percentage (percent)		50.00%
Restricted Stock Units (RSUs) \| Non-employee Members on Board of Directors
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock units, granted (shares)			61,488
Restricted Stock Units (RSUs) \| Certain employees
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock units, granted (shares)			1,098
Restricted Stock Units (RSUs) \| Certain Employees and Directors
Share-based Compensation Arrangement by Share-based Payment Award
Share-based compensation arrangement by share-based payment award, award vesting period			3 years
Closing stock price on date of grant (in dollars per share)			$ 13.66
Restricted Stock Units (RSUs) \| Employees and Officers
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock units, granted (shares)	17,692	639,395
Closing stock price on date of grant (in dollars per share)	$ 14.13	$ 18.39
Restricted Stock Units (RSUs) \| Employees and Officers \| Time-vested RSUs
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock units, granted (shares)				3,025		990,723
Share-based compensation arrangement by share-based payment award, award vesting period					3 years			3 years
Closing stock price on date of grant (in dollars per share)				$ 13.22	$ 13.22	$ 12.60
Restricted Stock Units (RSUs) \| Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock units, granted (shares)						247,619
Restricted Stock Units (RSUs) \| President
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock units, granted (shares)		207,300				238,095
Granted (in dollars per share)		$ 18.39
Restricted Stock Units (RSUs) \| President \| Homebuilding revenue
Share-based Compensation Arrangement by Share-based Payment Award
Performance percentage (percent)		50.00%
Restricted Stock Units (RSUs) \| President \| Pre-tax earnings
Share-based Compensation Arrangement by Share-based Payment Award
Performance percentage (percent)		50.00%
Restricted Stock Units (RSUs) \| Chief Financial Officer
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock units, granted (shares)						114,285
Restricted Stock Units (RSUs) \| Employees Officers And Directors \| Performance-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award
Closing stock price on date of grant (in dollars per share)						$ 12.60
Fair value of RSUs (in dollars per share)						$ 8.16
2013 Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award
Common stock (shares)							11,727,833
Shares available for future grant (shares)							5,318,795

Stock-Based Compensation - Summary of Compensation Expense Recognized Related to all Stock-Based Awards (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share-based Payment Arrangement [Abstract]
Total stock-based compensation	$ 3,625	$ 3,435

Stock-Based Compensation - Summary of Stock Option Awards (Detail) - Employee Stock Option - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Beginning balance (shares)	891,343
Granted (shares)	0
Exercised (shares)	(56,598)
Forfeited (shares)	0
Ending balance (shares)	834,745	891,343
Options exercisable at end of period (shares)	834,745
Weighted Average Exercise Price Per Share
Beginning balance (in dollars per share)	$ 15.03
Granted (in dollars per share)	0
Exercised (in dollars per share)	12.47
Forfeited (in dollars per share)	0
Ending balance (in dollars per share)	15.20	$ 15.03
Exercisable at end of period (in dollars per share)	$ 15.20
Weighted average contractual life	3 years 2 months 12 days	3 years 4 months 24 days
Weighted average options exercisable	3 years 2 months 12 days
Aggregate intrinsic value, Beginning balance	$ 994
Aggregate intrinsic value, Ending balance	0	$ 994
Aggregate intrinsic value, Exercisable at end of period	$ 0

Stock-Based Compensation - Summary of Restricted Stock Units (Detail) - Restricted Stock Units (RSUs) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested RSU's beginning balance (shares) \| shares	3,384,351
Granted (shares) \| shares	1,411,553
Vested (shares) \| shares	(921,461)
Forfeited (shares) \| shares	(550,994)
Nonvested RSU's ending balance (shares) \| shares	3,323,449
Weighted Average Grant Date Fair Value Per Share
Beginning balance (in dollars per share) \| $ / shares	$ 12.39
Granted (in dollars per share) \| $ / shares	18.71
Vested (in dollars per share) \| $ / shares	13.31
Forfeited (in dollars per share) \| $ / shares	8.92
Ending balance (in dollars per share) \| $ / shares	$ 15.40
Aggregate intrinsic value, Beginning balance \| $	$ 52,694
Aggregate intrinsic value, Granted \| $	0
Aggregate intrinsic value, Ending balance \| $	$ 30,609

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Income Tax Contingency
Deferred tax assets, net	$ 46,266		$ 49,904
Valuation allowance related to net deferred tax assets	3,500		3,500
Other income (expense), net	373	$ 6,241
Provision for income taxes	9,821	24
Liability for uncertain tax positions	486		486
Weyerhaeuser
Income Tax Contingency
Other income (expense), net		$ 6,000
Accrued Expenses And Other Liabilities \| Weyerhaeuser
Income Tax Contingency
Income tax liability	$ 346		$ 346

Related Party Transactions - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Related Party Transactions [Abstract]
Related party transactions	$ 0	$ 0

Supplemental Disclosure to Consolidated Statements of Cash Flows (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Supplemental disclosure of cash flow information:
Interest paid (capitalized), net	$ (8,220)	$ (13,697)
Income taxes paid (refunded), net	9	(2,538)
Supplemental disclosures of noncash activities:
Amortization of senior note discount capitalized to real estate inventory	302	505
Amortization of deferred loan costs capitalized to real estate inventory	$ 957	$ 1,415

Supplemental Guarantor Information - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Assets
Cash and cash equivalents	$ 624,129	$ 329,011
Receivables	83,701	69,276
Intercompany receivables	0	0
Real estate inventories	3,194,148	3,065,436
Investments in unconsolidated entities	11,091	11,745
Goodwill and other intangible assets, net	159,759	159,893
Investments in subsidiaries	0	0
Deferred tax assets, net	46,266	49,904
Other assets	173,959	173,425
Total assets	4,293,053	3,858,690
Liabilities
Accounts payable	77,275	66,120
Intercompany payables	0	0
Accrued expenses and other liabilities	315,560	322,043
Loans payable	750,000	250,000
Senior notes	1,034,925	1,033,985
Total liabilities	2,177,760	1,672,148
Equity
Total stockholders’ equity	2,115,281	2,186,530
Noncontrolling interests	12	12
Total equity	2,115,293	2,186,542	$ 2,057,036	$ 2,056,937
Total liabilities and equity	4,293,053	3,858,690
Reporting Entity \| Issuer
Assets
Cash and cash equivalents	496,116	186,200
Receivables	21,554	26,016
Intercompany receivables	637,118	576,846
Real estate inventories	759,636	737,662
Investments in unconsolidated entities	0	0
Goodwill and other intangible assets, net	156,604	156,604
Investments in subsidiaries	1,909,197	1,870,885
Deferred tax assets, net	9,020	9,020
Other assets	9,508	14,676
Total assets	3,998,753	3,577,909
Liabilities
Accounts payable	17,173	14,915
Intercompany payables	0	0
Accrued expenses and other liabilities	81,374	92,479
Loans payable	750,000	250,000
Senior notes	1,034,925	1,033,985
Total liabilities	1,883,472	1,391,379
Equity
Total stockholders’ equity	2,115,281	2,186,530
Noncontrolling interests	0	0
Total equity	2,115,281	2,186,530
Total liabilities and equity	3,998,753	3,577,909
Reporting Entity \| Guarantor Subsidiaries
Assets
Cash and cash equivalents	128,013	142,811
Receivables	62,147	43,260
Intercompany receivables	0	0
Real estate inventories	2,434,512	2,327,774
Investments in unconsolidated entities	11,091	11,745
Goodwill and other intangible assets, net	3,155	3,289
Investments in subsidiaries	0	0
Deferred tax assets, net	37,246	40,884
Other assets	164,451	158,749
Total assets	2,840,615	2,728,512
Liabilities
Accounts payable	60,102	51,205
Intercompany payables	637,118	576,846
Accrued expenses and other liabilities	234,186	229,564
Loans payable	0	0
Senior notes	0	0
Total liabilities	931,406	857,615
Equity
Total stockholders’ equity	1,909,197	1,870,885
Noncontrolling interests	12	12
Total equity	1,909,209	1,870,897
Total liabilities and equity	2,840,615	2,728,512
Consolidating Adjustments
Assets
Cash and cash equivalents	0	0
Receivables	0	0
Intercompany receivables	(637,118)	(576,846)
Real estate inventories	0	0
Investments in unconsolidated entities	0	0
Goodwill and other intangible assets, net	0	0
Investments in subsidiaries	(1,909,197)	(1,870,885)
Deferred tax assets, net	0	0
Other assets	0	0
Total assets	(2,546,315)	(2,447,731)
Liabilities
Accounts payable	0	0
Intercompany payables	(637,118)	(576,846)
Accrued expenses and other liabilities	0	0
Loans payable	0	0
Senior notes	0	0
Total liabilities	(637,118)	(576,846)
Equity
Total stockholders’ equity	(1,909,197)	(1,870,885)
Noncontrolling interests	0	0
Total equity	(1,909,197)	(1,870,885)
Total liabilities and equity	$ (2,546,315)	$ (2,447,731)

Supplemental Guarantor Information - Condensed Consolidating Statement of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Condensed Financial Statements, Captions
Total revenues	$ 597,050	$ 494,632
Other operations expense	624	590
Sales and marketing	42,637	38,989
General and administrative	39,837	38,597
Homebuilding income from operations	39,274	(6,877)
Equity in loss of unconsolidated entities	(14)	(25)
Other income, net	373	6,241
Homebuilding income before income taxes	39,633	(661)
Equity in income of unconsolidated entities	1,556	775
Financial services income before income taxes	2,071	756
Income before income taxes	41,704	95
Equity of net income of subsidiaries	0	0
Provision for income taxes	(9,821)	(24)
Net income	31,883	71
Reporting Entity \| Issuer
Condensed Financial Statements, Captions
Other operations expense	0	0
Sales and marketing	10,435	9,299
General and administrative	19,343	19,479
Homebuilding income from operations	(7,008)	(2,062)
Equity in loss of unconsolidated entities	0	0
Other income, net	192	6,140
Homebuilding income before income taxes	(6,816)	4,078
Equity in income of unconsolidated entities	0	0
Financial services income before income taxes	0	0
Income before income taxes	(6,816)	4,078
Equity of net income of subsidiaries	38,699	(4,007)
Provision for income taxes	0
Net income	31,883	71
Reporting Entity \| Guarantor Subsidiaries
Condensed Financial Statements, Captions
Other operations expense	624	590
Sales and marketing	32,202	29,690
General and administrative	20,494	19,118
Homebuilding income from operations	46,282	(4,815)
Equity in loss of unconsolidated entities	(14)	(25)
Other income, net	181	101
Homebuilding income before income taxes	46,449	(4,739)
Equity in income of unconsolidated entities	1,556	775
Financial services income before income taxes	2,071	756
Income before income taxes	48,520	(3,983)
Equity of net income of subsidiaries	0	0
Provision for income taxes	(9,821)	(24)
Net income	38,699	(4,007)
Consolidating Adjustments
Condensed Financial Statements, Captions
Other operations expense	0	0
Sales and marketing	0	0
General and administrative	0	0
Homebuilding income from operations	0	0
Equity in loss of unconsolidated entities	0	0
Other income, net	0	0
Homebuilding income before income taxes	0	0
Equity in income of unconsolidated entities	0	0
Financial services income before income taxes	0	0
Income before income taxes	0	0
Equity of net income of subsidiaries	(38,699)	4,007
Provision for income taxes	0	0
Net income	(38,699)	4,007
Homebuilding
Condensed Financial Statements, Captions
Total revenues	595,456	494,330
Homebuilding \| Reporting Entity \| Issuer
Condensed Financial Statements, Captions
Total revenues	158,670	171,791
Homebuilding \| Reporting Entity \| Guarantor Subsidiaries
Condensed Financial Statements, Captions
Total revenues	436,786	322,539
Homebuilding \| Consolidating Adjustments
Condensed Financial Statements, Captions
Total revenues	0	0
Home sales
Condensed Financial Statements, Captions
Home sales and Land and lot sales revenue	594,838	492,703
Cost of sales and expenses	472,882	421,536
Home sales \| Reporting Entity \| Issuer
Condensed Financial Statements, Captions
Home sales and Land and lot sales revenue	158,670	171,791
Cost of sales and expenses	135,900	145,075
Home sales \| Reporting Entity \| Guarantor Subsidiaries
Condensed Financial Statements, Captions
Home sales and Land and lot sales revenue	436,168	320,912
Cost of sales and expenses	336,982	276,461
Home sales \| Consolidating Adjustments
Condensed Financial Statements, Captions
Home sales and Land and lot sales revenue	0	0
Cost of sales and expenses	0	0
Land and lots
Condensed Financial Statements, Captions
Home sales and Land and lot sales revenue	0	1,029
Cost of sales and expenses	202	1,495
Land and lots \| Reporting Entity \| Issuer
Condensed Financial Statements, Captions
Home sales and Land and lot sales revenue	0	0
Cost of sales and expenses	0	0
Land and lots \| Reporting Entity \| Guarantor Subsidiaries
Condensed Financial Statements, Captions
Home sales and Land and lot sales revenue	0	1,029
Cost of sales and expenses	202	1,495
Land and lots \| Consolidating Adjustments
Condensed Financial Statements, Captions
Home sales and Land and lot sales revenue	0	0
Cost of sales and expenses	0	0
Other operations
Condensed Financial Statements, Captions
Total revenues	618	598
Other operations \| Reporting Entity \| Issuer
Condensed Financial Statements, Captions
Total revenues	0	0
Other operations \| Reporting Entity \| Guarantor Subsidiaries
Condensed Financial Statements, Captions
Total revenues	618	598
Other operations \| Consolidating Adjustments
Condensed Financial Statements, Captions
Total revenues	0	0
Financial Services
Condensed Financial Statements, Captions
Home sales and Land and lot sales revenue	1,594	302
Total revenues	1,594	302
Cost of sales and expenses	1,079	321
Financial Services \| Reporting Entity \| Issuer
Condensed Financial Statements, Captions
Home sales and Land and lot sales revenue	0	0
Cost of sales and expenses	0	0
Financial Services \| Reporting Entity \| Guarantor Subsidiaries
Condensed Financial Statements, Captions
Home sales and Land and lot sales revenue	1,594	302
Cost of sales and expenses	1,079	321
Financial Services \| Consolidating Adjustments
Condensed Financial Statements, Captions
Home sales and Land and lot sales revenue	0	0
Cost of sales and expenses	$ 0	$ 0

Supplemental Guarantor Information - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net cash used in operating activities	$ (88,974)	$ (114,925)
Cash flows from investing activities:
Purchases of property and equipment	(8,239)	(7,224)
Proceeds from sale of property and equipment	17	7
Investments in unconsolidated entities	(929)	(231)
Intercompany	0	0
Net cash used in investing activities	(9,151)	(7,448)
Cash flows from financing activities:
Borrowings from debt	500,000
Repayment of notes payable		(10)
Debt issuance costs	0	(3,124)
Proceeds from issuance of common stock under share-based awards	690	198
Minimum tax withholding paid on behalf of employees for share-based awards	(5,446)	(3,605)
Share repurchases	(102,001)	0
Intercompany	0	0
Net cash provided by (used in) financing activities	393,243	(6,541)
Net increase (decrease) in cash and cash equivalents	295,118	(128,914)
Cash and cash equivalents–beginning of period	329,011	277,696
Cash and cash equivalents–end of period	624,129	148,782
Reporting Entity \| Issuer
Cash flows from operating activities:
Net cash used in operating activities	(21,426)	15,054
Cash flows from investing activities:
Purchases of property and equipment	(2,801)	(2,065)
Proceeds from sale of property and equipment	0	0
Investments in unconsolidated entities	0	0
Intercompany	(59,100)	(98,723)
Net cash used in investing activities	(61,901)	(100,788)
Cash flows from financing activities:
Borrowings from debt	500,000
Repayment of notes payable		(10)
Debt issuance costs	0	(3,124)
Proceeds from issuance of common stock under share-based awards	689	198
Minimum tax withholding paid on behalf of employees for share-based awards	(5,445)	(3,605)
Share repurchases	(102,001)
Intercompany	0	0
Net cash provided by (used in) financing activities	393,243	(6,541)
Net increase (decrease) in cash and cash equivalents	309,916	(92,275)
Cash and cash equivalents–beginning of period	186,200	148,129
Cash and cash equivalents–end of period	496,116	55,854
Reporting Entity \| Guarantor Subsidiaries
Cash flows from operating activities:
Net cash used in operating activities	(67,548)	(129,979)
Cash flows from investing activities:
Purchases of property and equipment	(5,438)	(5,159)
Proceeds from sale of property and equipment	17	7
Investments in unconsolidated entities	(929)	(231)
Intercompany	0	0
Net cash used in investing activities	(6,350)	(5,383)
Cash flows from financing activities:
Borrowings from debt	0
Repayment of notes payable		0
Debt issuance costs	0	0
Proceeds from issuance of common stock under share-based awards	1	0
Minimum tax withholding paid on behalf of employees for share-based awards	(1)	0
Share repurchases	0
Intercompany	59,100	98,723
Net cash provided by (used in) financing activities	59,100	98,723
Net increase (decrease) in cash and cash equivalents	(14,798)	(36,639)
Cash and cash equivalents–beginning of period	142,811	129,567
Cash and cash equivalents–end of period	128,013	92,928
Consolidating Adjustments
Cash flows from operating activities:
Net cash used in operating activities	0	0
Cash flows from investing activities:
Purchases of property and equipment	0	0
Proceeds from sale of property and equipment	0	0
Investments in unconsolidated entities	0	0
Intercompany	59,100	98,723
Net cash used in investing activities	59,100	98,723
Cash flows from financing activities:
Borrowings from debt	0
Repayment of notes payable		0
Debt issuance costs	0	0
Proceeds from issuance of common stock under share-based awards	0	0
Minimum tax withholding paid on behalf of employees for share-based awards	0	0
Share repurchases	0
Intercompany	(59,100)	(98,723)
Net cash provided by (used in) financing activities	(59,100)	(98,723)
Net increase (decrease) in cash and cash equivalents	0	0
Cash and cash equivalents–beginning of period	0	0
Cash and cash equivalents–end of period	$ 0	$ 0