ý | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 33-0864902 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
4695 MacArthur Court, 8th Floor Newport Beach, California | 92660 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class of stock | Name of each exchange on which registered | |
Class A Common Stock, $0.01 par value | New York Stock Exchange |
Large Accelerated Filer | ¨ | Accelerated filer | x | |||
Non-accelerated filer | ¨ | Smaller reporting company | ¨ |
Class of Common Stock | Outstanding at March 6, 2017 | ||||
Common stock, Class A, par value $0.01 | 28,121,757 | ||||
Common stock, Class B, par value $0.01 | 3,813,884 |
Page No. | ||
PART I | ||
Item 1. | Business | |
Item 1A. | Risk Factors | |
Item 1B. | Unresolved Staff Comments | |
Item 2. | Properties | |
Item 3. | Legal Proceedings | |
Item 4. | Mine Safety Disclosure | |
PART II | ||
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | |
Item 6. | Selected Historical Consolidated Financial Data | |
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk | |
Item 8. | Financial Statements and Supplementary Data | |
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | |
Item 9A. | Controls and Procedures | |
Item 9B. | Other Information | |
PART III | ||
Item 10. | Directors, Executive Officers and Corporate Governance | |
Item 11. | Executive Compensation | |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | |
Item 13. | Certain Relationships and Related Transactions, and Director Independence | |
Item 14. | Principal Accountant Fees and Services | |
PART IV | ||
Item 15. | Exhibits and Financial Statement Schedules | |
Index to Financial Statements |
Item 1. | Business |
• | the issuance of 5,429,485 shares of Parent’s new Class A Common Stock, and $75 million aggregate principal amount of 12% Senior Subordinated Secured Notes due 2017, or the 12% Notes, issued by Parent’s wholly-owned subsidiary, William Lyon Homes, Inc., or California Lyon, in exchange for the claims held by the holders of an aggregate outstanding amount of $299.1 million of the formerly outstanding notes of California Lyon (neither Parent nor California Lyon received any net proceeds from the issuance of the 12% Notes), which 12% Notes were subsequently paid off in full during 2012; |
• | the amendment of California Lyon’s term loan agreement with certain lenders, or the Amended Term Loan, which resulted, among other things, in the increase in the principal amount outstanding under the loan agreement from $206 million to $235 million, the reduction in the interest rate payable under the loan agreement, and the elimination of any prepayment penalty under the loan agreement, and which Term Loan Agreement was subsequently paid off in full during 2012; |
• | the issuance, in exchange for cash and land deposits of $25 million, of 3,813,884 shares of Parent’s new Class B Common Stock, and a warrant to purchase 1,907,551 shares of Class B Common Stock; and |
• | the issuance of 7,858,404 shares of Parent’s new Convertible Preferred Stock, and 1,952,772 shares of Parent’s new Class C Common Stock in exchange for aggregate cash consideration of $60 million as well as payment for certain transaction fees. |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
California (1) | $ | 490,352 | $ | 379,310 | $ | 498,965 | |||||
Arizona (2) | 125,951 | 67,010 | 57,484 | ||||||||
Nevada (3) | 191,711 | 130,845 | 121,815 | ||||||||
Colorado (4) | 128,530 | 107,014 | 46,460 | ||||||||
Washington (5) | 154,600 | 181,258 | 65,886 | ||||||||
Oregon (6) | 311,059 | 213,491 | 66,415 | ||||||||
$ | 1,402,203 | $ | 1,078,928 | $ | 857,025 |
(1) | The California Segment during the time periods reflected above consists of operations in Orange, Los Angeles, San Diego, Riverside, San Bernardino, Alameda, Contra Costa, and San Joaquin counties. The offices are located in leased office space at 4695 MacArthur Court, 8th Floor, Newport Beach, California 92660 and 2603 Camino Ramon, Suite 450, San Ramon, CA 94583. |
(2) | The Arizona Segment consists of operations in the Phoenix metropolitan area. The offices are located in a leased office building at 8840 E. Chaparral Road, Suite 200, Scottsdale, AZ 85250. |
(3) | The Nevada Segment consists of operations in Clark and Nye counties. The offices are located in a leased office building at 1980 Festival Plaza Drive, Suite 500, Las Vegas, NV 89135. |
(4) | The Colorado Segment consists of operations in Douglas, Grand, Jefferson, and Larimer counties. The offices are located in a leased office building at 8480 East Orchard Road, Suite 1000, Greenwood Village, CO 80111. |
(5) | The Washington Segment consists of operations in King, Snohomish, and Pierce counties. The offices are located in a leased office building at 11624 SE 5th Street, Bellevue, WA 98005. Results presented for the Washington Segment are following the closing of the Polygon Acquisition on August 12, 2014. |
(6) | The Oregon Segment consists of operations in Clackamas and Washington counties. The offices are located in a leased office building at 109 East 13th Street, Vancouver WA 98660. Results presented for the Oregon Segment are following the closing of the Polygon Acquisition on August 12, 2014. |
1. | converting our lot supply into active projects; |
2. | maximizing revenue in markets with strong demand; |
3. | maintaining a low cost structure; |
4. | acquiring land positions through disciplined acquisition strategies near employment centers or transportation corridors; |
5. | leveraging an experienced management team; |
6. | deleveraging the balance sheet; and |
7. | generating returns for shareholders and generating positive cash flows. |
• | completing due diligence prior to committing to acquire land; |
• | reviewing the status of entitlements and other governmental processing to mitigate zoning and other entitlement or development risk; |
• | focusing on land as a component of a home’s cost structure, rather than on the land’s speculative value; |
• | limiting land acquisition size to reduce investment levels in any one project where possible; |
• | utilizing option, joint venture and other non-capital intensive structures to control land and reduce risk where feasible; |
• | funding land acquisitions whenever possible with non-recourse seller financing; |
• | employing centralized control of approval over all land transactions; |
• | diversifying with respect to market segments and product types; and |
• | maximizing the number of units/lots per acre to maximize revenue. |
Active Projects (by County or City) | Estimated Year of First Delivery | Estimated Number of Homes at Completion (1) | Cumulative Homes Closed as of December 31, 2016 (2) | Backlog at December 31, 2016 (3) (4) | Lots Owned as of December 31, 2016 (5) | Homes Closed for the Year Ended December 31, 2016 | Estimated Sales Price Range (6) | |||||||||||
CALIFORNIA | ||||||||||||||||||
Orange County: | ||||||||||||||||||
Anaheim | ||||||||||||||||||
Avelina | 2017 | 38 | — | 22 | 38 | — | $540,000 - 600,000 | |||||||||||
Buena Park | ||||||||||||||||||
The Covey (7) | 2016 | 67 | 24 | 6 | 43 | 24 | $ 799,000 - 860,000 | |||||||||||
Cypress | ||||||||||||||||||
Mackay Place (7) | 2016 | 47 | 34 | 2 | 13 | 34 | $ 827,000 - 900,000 | |||||||||||
Dana Point | ||||||||||||||||||
Grand Monarch | 2015 | 37 | 13 | 3 | 24 | 7 | $ 2,570,000 - 2,904,000 | |||||||||||
Ladera Ranch | ||||||||||||||||||
Artisan | 2015 | 14 | 6 | 1 | 8 | 3 | $ 2,495,000 - 3,050,000 | |||||||||||
Irvine | ||||||||||||||||||
The Vine | 2016 | 106 | 31 | 6 | 41 | 31 | $ 492,000 - 607,000 | |||||||||||
Calistoga | 2016 | 60 | 15 | 13 | 45 | 15 | $1,319,000 - $1,454,000 | |||||||||||
Rancho Mission Viejo | ||||||||||||||||||
Aurora (7) | 2016 | 94 | 57 | 8 | 37 | 57 | $ 455,250 - 586,000 | |||||||||||
Vireo (7) | 2015 | 90 | 60 | 5 | 30 | 50 | $ 566,000 - 650,000 | |||||||||||
Briosa (7) | 2016 | 50 | 1 | — | 49 | 1 | $ 945,000 - 1,045,000 | |||||||||||
Rancho Santa Margarita | ||||||||||||||||||
Dahlia Court | 2017 | 36 | — | 10 | 36 | — | $ 510,000 - 610,000 | |||||||||||
Los Angeles County: | ||||||||||||||||||
Glendora | ||||||||||||||||||
La Colina Estates | 2015 | 121 | 19 | 1 | 102 | 13 | $ 1,274,000 - 1,654,000 | |||||||||||
Lakewood | ||||||||||||||||||
Canvas | 2015 | 72 | 71 | 1 | 1 | 35 | (8) | |||||||||||
Riverside County: | ||||||||||||||||||
Riverside | ||||||||||||||||||
SkyRidge | 2014 | 90 | 22 | 7 | 68 | 4 | $ 500,000 - 560,000 | |||||||||||
TurnLeaf | ||||||||||||||||||
Crossings | 2014 | 139 | 19 | 3 | 120 | 9 | $ 503,000 - 536,000 | |||||||||||
Coventry | 2015 | 161 | 13 | — | 148 | 7 | $ 550,000 - 565,000 | |||||||||||
Eastvale | ||||||||||||||||||
Nexus | 2015 | 220 | 95 | 7 | 125 | 85 | $ 337,000 - 384,000 |
San Bernardino County: | ||||||||||||||||||
Upland | ||||||||||||||||||
The Orchards (7) | ||||||||||||||||||
Citrus Court | 2015 | 77 | 45 | 3 | 32 | 33 | $ 325,000 - 394,000 | |||||||||||
Citrus Pointe | 2015 | 132 | 44 | 4 | 88 | 35 | $ 342,000 - 409,000 | |||||||||||
Yucaipa | ||||||||||||||||||
Cedar Glen | 2015 | 143 | 133 | 6 | 10 | 63 | $ 300,000 - 328,000 | |||||||||||
Alameda County | ||||||||||||||||||
Dublin | ||||||||||||||||||
Terrace Ridge | 2015 | 36 | 36 | — | — | 21 | (8) | |||||||||||
Newark | ||||||||||||||||||
The Cove | 2016 | 108 | 8 | 20 | 19 | 8 | $ 651,000 - 756,000 | |||||||||||
The Strand | 2016 | 157 | 8 | 9 | 35 | 8 | $ 711,000 - 821,000 | |||||||||||
The Banks | 2016 | 120 | 4 | 38 | 28 | 4 | $ 840,000 - 905,000 | |||||||||||
The Tides | 2016 | 75 | 4 | 19 | 30 | 4 | $ 879,000 - 909,000 | |||||||||||
The Isles | 2016 | 82 | 3 | 26 | 29 | 3 | $ 967,000 - 1,047,000 | |||||||||||
Contra Costa County: | ||||||||||||||||||
Pittsburgh | ||||||||||||||||||
Vista Del Mar | ||||||||||||||||||
Victory II | 2014 | 104 | 100 | 4 | 4 | 38 | (8) | |||||||||||
Victory III | 2016 | 11 | 11 | — | — | 11 | (8) | |||||||||||
Brentwood | ||||||||||||||||||
Palmilla (7) | ||||||||||||||||||
Cielo | 2014 | 56 | 56 | — | — | 8 | (8) | |||||||||||
Antioch | ||||||||||||||||||
Oak Crest | 2013 | 130 | 130 | — | — | 11 | (8) | |||||||||||
San Joaquin County: | ||||||||||||||||||
Tracy | ||||||||||||||||||
Maplewood | 2014 | 59 | 59 | — | — | 10 | (8) | |||||||||||
Santa Clara County: | ||||||||||||||||||
Morgan Hill | ||||||||||||||||||
Brighton Oaks | 2015 | 110 | 110 | — | — | 63 | (8) | |||||||||||
Mountain View | ||||||||||||||||||
Guild 33 | 2015 | 33 | 33 | — | — | 27 | (8) | |||||||||||
CALIFORNIA TOTAL | 2,875 | 1,264 | 224 | 1,203 | 722 | |||||||||||||
ARIZONA | ||||||||||||||||||
Maricopa County: | ||||||||||||||||||
Queen Creek | ||||||||||||||||||
Hastings Farm | ||||||||||||||||||
Estates | 2012 | 153 | 153 | — | — | 13 | (8) | |||||||||||
Meridian | ||||||||||||||||||
Harvest | 2015 | 448 | 134 | 40 | 314 | 90 | $ 198,990 - 245,990 | |||||||||||
Homestead | 2015 | 562 | 56 | 23 | 506 | 39 | $ 236,990 - 319,990 | |||||||||||
Harmony | 2015 | 415 | 29 | 15 | 386 | 20 | $ 265,990 - 288,990 | |||||||||||
Horizons | 2016 | 161 | 9 | 12 | 152 | 9 | $ 297,990 - 373,990 | |||||||||||
Mesa | ||||||||||||||||||
Lehi Crossing | ||||||||||||||||||
Settlers Landing | 2012 | 235 | 201 | 25 | 34 | 69 | $ 237,990 - 282,990 | |||||||||||
Wagon Trail | 2013 | 244 | 152 | 45 | 92 | 52 | $ 253,490 - 320,990 | |||||||||||
Monument Ridge | 2013 | 248 | 87 | 30 | 161 | 36 | $ 282,990 - 390,990 | |||||||||||
Albany Village | 2016 | 228 | 8 | 6 | 220 | 8 | $ 190,990 - 247,990 |
Peoria | ||||||||||||||||||
Rio Vista | 2015 | 197 | 175 | 8 | 22 | 137 | $ 198,990 - 227,990 | |||||||||||
ARIZONA TOTAL | 2,891 | 1,004 | 204 | 1,887 | 473 | |||||||||||||
NEVADA | ||||||||||||||||||
Clark County: | ||||||||||||||||||
North Las Vegas | ||||||||||||||||||
Tierra Este | 2013 | 114 | 114 | — | — | 52 | (8) | |||||||||||
Las Vegas | ||||||||||||||||||
Serenity Ridge | 2013 | 108 | 108 | — | — | 11 | (8) | |||||||||||
Lyon Estates | 2014 | 81 | 73 | 5 | 8 | 43 | $ 408,000 - 532,000 | |||||||||||
Tuscan Cliffs | 2015 | 76 | 27 | 2 | 49 | 15 | $ 635,000 - 816,000 | |||||||||||
Brookshire | ||||||||||||||||||
Estates | 2015 | 35 | 27 | 1 | 8 | 24 | $ 595,000 - 643,000 | |||||||||||
Heights | 2015 | 98 | 38 | 7 | 60 | 26 | $ 347,000 - 397,000 | |||||||||||
Las Vegas - Summerlin | ||||||||||||||||||
Sterling Ridge | ||||||||||||||||||
Grand | 2014 | 137 | 82 | 7 | 55 | 27 | $ 875,000 - 958,000 | |||||||||||
Premier | 2014 | 62 | 60 | — | 2 | 11 | $ 1,244,000 - 1,357,000 | |||||||||||
Silver Ridge | 2016 | 83 | 12 | 9 | 28 | 12 | $ 1,245,000 - 1,420,000 | |||||||||||
Allegra | 2016 | 88 | 30 | 4 | 58 | 30 | $ 499,000 - 536,000 | |||||||||||
Henderson | ||||||||||||||||||
Lago Vista | 2016 | 52 | 3 | 6 | 49 | 3 | $ 765,000 - 828,000 | |||||||||||
The Peaks | 2016 | 88 | — | 5 | 88 | — | $ 475,000 - 499,000 | |||||||||||
Nye County: | ||||||||||||||||||
Pahrump | ||||||||||||||||||
Mountain Falls | ||||||||||||||||||
Series I | 2011 | 242 | 189 | 9 | 53 | 60 | $ 169,000 - 201,650 | |||||||||||
Series II | 2014 | 187 | 35 | 4 | 152 | 17 | $ 228,000 - 317,000 | |||||||||||
NEVADA TOTAL | 1,451 | 798 | 59 | 610 | 331 | |||||||||||||
COLORADO | ||||||||||||||||||
Arapahoe County | ||||||||||||||||||
Aurora Southshore | ||||||||||||||||||
Hometown | 2014 | 68 | 68 | — | — | 27 | (8) | |||||||||||
Generations | 2014 | 15 | 14 | — | 1 | 3 | $ 401,000 - 494,000 | |||||||||||
Harmony | 2015 | 10 | 10 | — | — | 4 | (8) | |||||||||||
Signature | 2015 | 7 | 6 | 1 | 1 | 5 | (8) | |||||||||||
Filing 5 | 2016 | 30 | 2 | — | 28 | 2 | $ 423,000 - 497,000 | |||||||||||
Artistry | 2016 | 61 | 17 | 16 | 44 | 17 | $ 429,000 - 490,000 | |||||||||||
New Signature | 2017 | 30 | — | 3 | 30 | — | $ 482,000 - 524,000 | |||||||||||
Centennial | ||||||||||||||||||
Greenfield | 2016 | 35 | 9 | 6 | 26 | 9 | $ 455,000 - 510,000 | |||||||||||
Douglas County | ||||||||||||||||||
Castle Rock | ||||||||||||||||||
Cliffside | 2014 | 49 | 44 | — | 5 | 17 | $ 518,000 - 596,000 | |||||||||||
Grand County | ||||||||||||||||||
Granby | ||||||||||||||||||
Granby Ranch | 2012 | 44 | 19 | — | 25 | 1 | (11) | |||||||||||
Jefferson County | ||||||||||||||||||
Arvada | ||||||||||||||||||
Candelas Sundance | 2014 | 66 | 66 | — | — | 6 | (8) |
Candelas II | ||||||||||||||||||
Generations | 2015 | 90 | 34 | 5 | 56 | 31 | $ 416,000 - 492,000 | |||||||||||
Tapestry | 2015 | 111 | 8 | 6 | 103 | 8 | $ 454,000 - 535,000 | |||||||||||
Leydon Rock | ||||||||||||||||||
Garden | 2014 | 60 | 35 | 5 | 25 | 18 | $ 411,000 - 451,000 | |||||||||||
Park | 2015 | 74 | 62 | 1 | 12 | 25 | $ 394,000 - 457,000 | |||||||||||
Larimer County | ||||||||||||||||||
Fort Collins | ||||||||||||||||||
Timnath Ranch | ||||||||||||||||||
Park | 2014 | 92 | 64 | 12 | 28 | 37 | $ 370,000 - 398,000 | |||||||||||
Sonnet | 2014 | 55 | 47 | 3 | 8 | 17 | $ 398,000 - 470,000 | |||||||||||
Loveland | ||||||||||||||||||
Lakes at Centerra | 2015 | 66 | 35 | 17 | 31 | 24 | $ 367,000 - 407,000 | |||||||||||
COLORADO TOTAL | 963 | 540 | 75 | 423 | 251 | |||||||||||||
WASHINGTON | ||||||||||||||||||
King County: | ||||||||||||||||||
The Brownstones at Issaquah Highlands | 2014 | 176 | 176 | — | — | 62 | (8) | |||||||||||
The Towns at Mill Creek Meadows | 2014 | 122 | 122 | — | — | 5 | (8) | |||||||||||
Bryant Heights SF | 2015 | 14 | 12 | — | 2 | 9 | $ 1,250,000 - 1,390,000 | |||||||||||
Bryant Heights MF | 2016 | 39 | 1 | 3 | 38 | 1 | $790,990 - 914,990 | |||||||||||
Highcroft at Sammamish | 2016 | 121 | 37 | 19 | 74 | 37 | $ 774,990 - 1,094,990 | |||||||||||
Peasley Canyon | 2016 | 153 | 35 | 8 | 65 | 35 | $ 389,490 - 469,990 | |||||||||||
Ridgeview Townhomes | 2016 | 40 | 6 | 8 | 34 | 6 | $ 449,990 - 539,990 | |||||||||||
Snohomish County: | ||||||||||||||||||
The Reserve at North Creek | 2014 | 221 | 221 | — | — | 6 | (8) | |||||||||||
Silverlake Center | 2015 | 100 | 99 | 1 | 1 | 54 | (8) | |||||||||||
Riverfront | 2016 | 425 | 6 | 13 | 419 | 6 | $ 249,990 - 502,990 | |||||||||||
Pierce County: | ||||||||||||||||||
Spanaway 230 | 2015 | 115 | 115 | — | — | 68 | (8) | |||||||||||
WASHINGTON TOTAL | 1,526 | 830 | 52 | 633 | 289 | |||||||||||||
OREGON | ||||||||||||||||||
Clackamas County: | ||||||||||||||||||
Calais at Villebois - Rumpf Alley | 2015 | 58 | 58 | — | — | 15 | (8) | |||||||||||
Calais at Villebois - Rumpf Traditional | 2015 | 26 | 26 | — | — | 11 | (8) | |||||||||||
Villebois | 2014 | 183 | 170 | — | 13 | 31 | $ 284,990 - 469,990 | |||||||||||
Villebois Zion III - Alley | 2015 | 51 | 32 | — | 19 | 16 | $ 329,990 - 399,990 | |||||||||||
Villebois Lund Cottages | 2015 | 67 | 36 | 5 | 31 | 16 | $ 299,990 - 304,990 | |||||||||||
Villebois Lund Townhomes | 2015 | 42 | 28 | — | 14 | 24 | $ 259,990 - 279,990 | |||||||||||
Villebois Lund Alley | 2016 | 96 | 11 | 6 | 85 | 9 | $ 324,990 - 369,990 | |||||||||||
Grande Pointe at Villebois | 2016 | 100 | 23 | 10 | 77 | 23 | $ 449,990 - 589,990 | |||||||||||
Villebois V Fasano | 2016 | 93 | 37 | 3 | 56 | 37 | $ 339,990 - 409,990 | |||||||||||
Villebois Village Parcel 80 | 2017 | 50 | — | 7 | 50 | — | $ 259,990 - 299,990 | |||||||||||
Villebois Village Parcel 83 | 2016 | 31 | 18 | 13 | 13 | 18 | $ 259,990 - 299,990 | |||||||||||
Washington County: | ||||||||||||||||||
Baseline Woods I | 2014 | 130 | 130 | — | — | 17 | (8) | |||||||||||
Baseline Woods II | 2015 | 102 | 102 | — | — | 54 | (8) | |||||||||||
Sequoia Village - Cornelius Pass | 2016 | 157 | 63 | 17 | 94 | 63 | $ 249,990 - 289,990 |
Murray & Weir | 2014 | 81 | 81 | — | — | 9 | (8) | |||||||||||
Twin Creeks | 2014 | 94 | 92 | 1 | 2 | 38 | $ 479,990 - 614,990 | |||||||||||
Bethany West - Alley | 2015 | 94 | 86 | 1 | 3 | 56 | $ 379,990 - 459,990 | |||||||||||
Bethany West - Cottage | 2015 | 61 | 60 | — | 1 | 44 | $ 349,990 - 389,990 | |||||||||||
Bethany West - Traditional | 2015 | 82 | 77 | — | 2 | 32 | $ 569,990 - 664,990 | |||||||||||
Bethany West - Weisenfluh | 2016 | 36 | 31 | 4 | 5 | 31 | $ 569,990 - 659,990 | |||||||||||
Bethany Round 2 - Alley | 2017 | 25 | — | 5 | 25 | — | $ 429,990 - 489,990 | |||||||||||
Bethany Round 2 - Cottage | 2017 | 13 | — | 2 | 13 | — | $ 384,990 - 429,990 | |||||||||||
BM1 North West River Terrace - Med/Std/Lrg | 2017 | 116 | — | 5 | 36 | — | $ 464,990 - 594,990 | |||||||||||
BM2 West River Terrace - Alley | 2016 | 60 | 34 | 16 | 21 | 34 | $ 364,990 - 409,990 | |||||||||||
BM2 West River Terrace - Med/Std | 2016 | 31 | 12 | 3 | 15 | 12 | $ 464,990 -564,990 | |||||||||||
BM2 West River Terrace - Townhomes | 2017 | 46 | — | 10 | 34 | — | $ 274,990 - 319,990 | |||||||||||
BM7 Dickson | 2016 | 82 | 15 | 9 | 67 | 15 | $ 549,990 - 649,990 | |||||||||||
Orenco Woods | 2015 | 71 | 71 | — | — | 28 | (8) | |||||||||||
Sunset Ridge | 2015 | 104 | 101 | 2 | 3 | 82 | $ 349,990 - 499,990 | |||||||||||
OREGON TOTAL | 2,182 | 1,394 | 119 | 679 | 715 | |||||||||||||
Future Owned and Controlled (by County) | Lots Owned or Controlled as of December 31, 2016 (9) | |||||||||||||||||
CALIFORNIA | ||||||||||||||||||
Orange County | 246 | |||||||||||||||||
Los Angeles County | 95 | |||||||||||||||||
San Bernardino County | 70 | |||||||||||||||||
San Diego County | 65 | |||||||||||||||||
Alameda County | 426 | |||||||||||||||||
Contra Costa County | 296 | |||||||||||||||||
Sonoma County | 54 | |||||||||||||||||
ARIZONA | ||||||||||||||||||
Maricopa County (10) | 3,045 | |||||||||||||||||
NEVADA | ||||||||||||||||||
Nye County (10) | 1,925 | |||||||||||||||||
Clark County | 536 | |||||||||||||||||
COLORADO | ||||||||||||||||||
Larimer County | 124 | |||||||||||||||||
Boulder County | 98 | |||||||||||||||||
Arapahoe County | 218 | |||||||||||||||||
Denver County | 698 | |||||||||||||||||
WASHINGTON | ||||||||||||||||||
King County | 882 | |||||||||||||||||
Pierce County | 814 | |||||||||||||||||
Snohomish County | 74 | |||||||||||||||||
OREGON | ||||||||||||||||||
Clackamas County | 305 | |||||||||||||||||
Washington County | 2,452 | |||||||||||||||||
TOTAL FUTURE | 12,423 | |||||||||||||||||
GRAND TOTALS | 11,888 | 5,830 | 733 | 17,858 | 2,781 |
(1) | The estimated number of homes to be built at completion is approximate and includes home sites in our backlog. Such estimated amounts are subject to change based on, among other things, future site planning, as well as zoning and permit changes, and there can be no assurance that the Company will build these homes. Further, certain projects may include lots that the Company controls, and that are also reflected in "Future Owned and Controlled." |
(2) | “Cumulative Homes Closed” represents homes closed since the project opened, and may include prior years, in addition to the homes closed during the current year presented. |
(3) | Backlog consists of homes sold under sales contracts that have not yet closed, and there can be no assurance that closings of sold homes will occur. |
(4) | Of the total homes subject to pending sales contracts as of December 31, 2016, 658 represent homes that are completed or under construction. |
(5) | Lots owned as of December 31, 2016 include lots in backlog at December 31, 2016. |
(6) | Estimated sales price range reflects the most recent pricing updates of the base price only and excludes any lot premium, buyer incentive and buyer selected options, which vary from project to project. Sales prices reflect current pricing estimates and might not be indicative of past or future pricing. Further, any potential benefit to be gained from an increase in sales price ranges as compared to previously estimated amounts may be offset by increases in costs, profit participation, and other factors. |
(7) | Project is a joint venture and is consolidated as a VIE in accordance with ASC 810, Consolidation. |
(8) | Project is completely sold out, therefore the sales price range is not applicable as of December 31, 2016. |
(9) | Includes projects with lots owned as of December 31, 2016 that are expected to open for sale and have an estimated year of first delivery of 2017 or later, as well as lots controlled as of December 31, 2016, and parcels of undeveloped land held for future sale. Certain lots controlled are under land banking arrangements which may become owned and produce deliveries during 2017. Actual homes at completion may change prior to the marketing and sales of homes in these projects and the sales price ranges for these projects are to be determined and will be based on current market conditions and other factors upon the commencement of active selling. There can be no assurance that the Company will acquire any of the controlled lots reflected in these amounts. |
(10) | Includes parcels of undeveloped land held for future sale. It is unknown when the Company plans to develop homes on this land. |
(11) | Project on hold as of December 31, 2016, therefore the sales price range is not applicable. |
Item 1A. | Risk Factors |
• | employment levels and job and personal income growth; |
• | availability and pricing of financing for homebuyers; |
• | short and long-term interest rates; |
• | overall consumer confidence and the confidence of potential homebuyers in particular; |
• | demographic trends; |
• | changes in energy prices; |
• | housing demand from population growth, household formation and other demographic changes, among other factors; |
• | U.S. and global financial system and credit market stability; |
• | private party and governmental residential consumer mortgage loan programs, and federal and state regulation of lending and appraisal practices; |
• | federal and state personal income tax rates and provisions, including provisions for the deduction of residential consumer mortgage loan interest payments and other expenses; |
• | the supply of and prices for available new or existing homes, including lender-owned homes acquired through foreclosures and short sales and homes held for sale by investors and speculators, and other housing alternatives, such as apartments and other residential rental property; |
• | homebuyer interest in our current or new product designs and community locations, and general consumer interest in purchasing a home compared to choosing other housing alternatives; and |
• | real estate taxes. |
• | reduce or delay its business activities, land acquisitions and capital expenditures; |
• | sell assets; |
• | obtain additional debt or equity capital; or |
• | restructure or refinance all or a portion of its debt, including the notes, on or before maturity. |
• | our delivering fewer homes; |
• | our selling homes at lower prices; |
• | our offering or increasing sales incentives, discounts or price concessions for our homes; |
• | our experiencing lower housing gross profit margins, particularly if we cannot raise our selling prices to cover increased land development, home construction or overhead costs; |
• | our selling fewer homes or experiencing a higher number of cancellations by homebuyers; |
• | impairments in the value of our inventory and other assets; |
• | difficulty in acquiring desirable land that meets our investment return or marketing standards, and in selling our interests in land that no longer meet such standards on favorable terms; |
• | difficulty in our acquiring raw materials and skilled management and trade labor at acceptable prices; |
• | delays in the development of land and/or the construction of our homes; and/or |
• | difficulty in securing external financing, performance bonds or letter of credit facilities on favorable terms. |
• | projections of Polygon Northwest’s future revenues; |
• | the amount of goodwill and intangibles that will result from the acquisition; |
• | acquisition costs, including transaction and integration costs; and |
• | other financial and strategic rationales and risks of the acquisition. |
• | our ability to obtain additional financing as needed for working capital, land acquisition costs, building costs, other capital expenditures, or general corporate purposes, or to refinance existing indebtedness before its scheduled maturity, may be limited; |
• | we will need to use a substantial portion of cash flow from operations to pay interest and principal on our indebtedness, which will reduce the funds available for other purposes; |
• | if we are unable to comply with the terms of the agreements governing our indebtedness, the holders of that indebtedness could accelerate that indebtedness and exercise other rights and remedies against us; |
• | if we have a higher level of indebtedness than some of our competitors, it may put us at a competitive disadvantage and reduce our flexibility in planning for, or responding to, changing conditions in the industry, including increased competition; and |
• | the terms of any refinancing may not be as favorable as the debt being refinanced. |
• | incur or guarantee additional indebtedness or issue certain equity interests; |
• | pay dividends or distributions, repurchase equity or prepay subordinated debt; |
• | make certain investments; |
• | sell assets; |
• | incur liens; |
• | create certain restrictions on the ability of restricted subsidiaries to transfer assets; |
• | enter into transactions with affiliates; |
• | create unrestricted subsidiaries; and |
• | consolidate, merge or sell all or substantially all of our assets. |
• | limited in how we conduct our business; |
• | unable to raise additional debt or equity financing to operate during general economic or business downturns; or |
• | unable to compete effectively or to take advantage of new business opportunities. |
• | reduce or delay our business activities and capital expenditures; |
• | sell assets; |
• | obtain additional debt or equity capital; or |
• | restructure or refinance all or a portion of our debt, including the notes, on or before maturity. |
• | actual or anticipated variations in our quarterly operating results; |
• | changes in market valuations of similar companies; |
• | adverse market reaction to the level of our indebtedness; |
• | market reaction to our capital markets transactions; |
• | additions or departures of key personnel; |
• | actions by stockholders; |
• | increased volatility as a result of the relative size of our public float; |
• | speculation in the press or investment community; |
• | general market, economic and political conditions, including an economic slowdown or dislocation in the global credit markets; |
• | our operating performance and the performance of other similar companies; |
• | changes in accounting principles; and |
• | passage of legislation or other regulatory developments that adversely affect us or the homebuilding industry. |
• | authorizing the issuance of undesignated preferred stock, the terms of which may be established and shares of which may be issued without stockholder approval; |
• | any action to be taken by holders of our common stock must be effected at a duly called annual or special meeting and not by written consent; |
• | special meetings of our stockholders can be called only by our board of directors, the Chairman of our board of directors, our Chief Executive Officer or our lead independent director; |
• | our dual-class voting structure that provides for five-to-one voting rights for holders of our Class B Common Stock; |
• | holders of our Class B Common Stock possess certain preemptive rights allowing them to purchase additional shares of Class B Common Stock in the event of certain issuances of Class A Common Stock, subject to certain exceptions; |
• | vacancies and newly created directorships resulting from any increase in the authorized number of directors may be filled by a majority of the directors then in office, although less than a quorum, or by a sole remaining director, but not by stockholders; |
• | our bylaws require advance notice of stockholder proposals and director nominations; |
• | an amendment to our bylaws requires a supermajority vote of stockholders; and |
• | after the conversion of all Class B Common Stock, our board of directors will be staggered into three separate classes, with classes fixed by the board, and, once staggered, the removal of directors requires a supermajority vote of stockholders. |
Item 1B. | Unresolved Staff Comments |
Item 2. | Properties |
Item 3. | Legal Proceedings |
Item 4. | Mine Safety Disclosure |
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
2016 | 2015 | ||||||||||||
Calendar Quarter Ended | High | Low | High | Low | |||||||||
March 31 | 16.42 | 7.61 | 26.21 | 17.03 | |||||||||
June 30 | 17.44 | 12.80 | 26.40 | 19.78 | |||||||||
September 30 | 19.02 | 15.18 | 26.05 | 20.23 | |||||||||
December 31 | 21.92 | 15.60 | 24.18 | 14.77 |
5/16/2013 | 12/31/2013 | 12/31/2014 | 12/31/2015 | 12/31/2016 | |||||||||||||||
William Lyon Homes | $ | 100 | $ | 86.82 | $ | 79.49 | $ | 64.71 | $ | 74.63 | |||||||||
S&P 500 Index | 100 | 113.45 | 128.98 | 130.77 | 146.41 | ||||||||||||||
S&P Composite 1500 Homebuilding Index | 100 | 91.56 | 95.47 | 101.68 | 97.51 |
Month Ended | Total Number of Shares Purchased | Average Price Per Share | |||
October 31, 2016 | — | N/A | |||
November 30, 2016 | — | N/A | |||
December 31, 2016 | 1,221 | $19.03 | |||
Total | 1,221 |
Item 6. | Selected Historical Consolidated Financial Data |
Successor (1) | Predecessor (1) | ||||||||||||||||||||||
Period From February 25, | Period From January 1, | ||||||||||||||||||||||
Year Ended December 31, | through December 31, | through February 24, | |||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | 2012 | ||||||||||||||||||
(in thousands except number of shares, per share data and number of homes) | |||||||||||||||||||||||
Statement of Operations Data: | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Home sales | $ | 1,402,203 | $ | 1,078,928 | $ | 857,025 | $ | 521,310 | $ | 244,610 | $ | 16,687 | |||||||||||
Construction services | 3,837 | 25,124 | 37,728 | 32,533 | 23,825 | 8,883 | |||||||||||||||||
Total revenues | 1,406,040 | 1,104,052 | 894,753 | 553,843 | 268,435 | 25,570 | |||||||||||||||||
Operating income (loss) | 93,968 | 80,247 | 75,473 | 51,857 | (4,873 | ) | (2,684 | ) | |||||||||||||||
Income (loss) before reorganization items and (provision) benefit from income taxes | 102,817 | 87,067 | 78,323 | 53,765 | (4,325 | ) | (4,961 | ) | |||||||||||||||
Reorganization items, net (2) | — | — | — | (464 | ) | (2,525 | ) | 233,458 | |||||||||||||||
(Provision) benefit for income taxes | (34,850 | ) | (26,806 | ) | (23,797 | ) | 82,302 | (11 | ) | — | |||||||||||||
Net income (loss) | 67,967 | 60,261 | 54,526 | 135,603 | (6,861 | ) | 228,497 | ||||||||||||||||
Net income (loss) available to common stockholders | $ | 59,696 | $ | 57,336 | $ | 44,625 | $ | 127,604 | $ | (11,602 | ) | $ | 228,383 | ||||||||||
Income (loss) per common share: | |||||||||||||||||||||||
Basic | $ | 1.62 | $ | 1.57 | $ | 1.41 | $ | 5.16 | $ | (0.93 | ) | $ | 228,383 | ||||||||||
Diluted | $ | 1.55 | $ | 1.48 | $ | 1.34 | $ | 4.95 | $ | (0.93 | ) | $ | 228,383 | ||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||
Basic | 36,764,799 | 36,546,227 | 31,753,110 | 24,736,841 | 12,489,435 | 1,000 | |||||||||||||||||
Diluted | 38,474,900 | 38,767,556 | 33,236,343 | 25,796,197 | 12,489,435 | 1,000 | |||||||||||||||||
Operating Data (including consolidated joint ventures) (unaudited): | |||||||||||||||||||||||
Number of net new home orders | 2,775 | 2,575 | 1,677 | 1,322 | 956 | 175 | |||||||||||||||||
Number of homes closed | 2,781 | 2,314 | 1,753 | 1,360 | 883 | 67 | |||||||||||||||||
Average sales price of homes closed | $ | 504 | $ | 466 | $ | 489 | $ | 383 | $ | 277 | $ | 249 | |||||||||||
Cancellation rates | 16 | % | 20 | % | 18 | % | 17 | % | 15 | % | 8 | % | |||||||||||
Backlog at end of period, number of homes | 733 | 739 | 478 | 368 | 406 | 246 | |||||||||||||||||
Backlog at end of period, aggregate sales value | $ | 410,675 | $ | 391,770 | $ | 260,127 | $ | 199,523 | $ | 115,449 | $ | 63,434 |
Successor (1) | |||||||||||||||||||
December 31, | |||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||
(in thousands) | |||||||||||||||||||
Balance Sheet Data: | |||||||||||||||||||
Cash and cash equivalents | $ | 42,612 | $ | 50,203 | $ | 52,771 | $ | 171,672 | $ | 71,075 | |||||||||
Real estate inventories—Owned | 1,771,998 | 1,675,106 | 1,404,639 | 671,790 | 421,630 | ||||||||||||||
Real estate inventories—Not owned | — | — | — | 12,960 | 39,029 | ||||||||||||||
Total assets | 1,998,151 | 1,923,450 | 1,659,724 | 1,010,411 | 581,147 | ||||||||||||||
Total debt | 1,080,650 | 1,105,776 | 925,398 | 469,355 | 338,248 | ||||||||||||||
Redeemable convertible preferred stock | — | — | — | — | 71,246 | ||||||||||||||
Total William Lyon Homes stockholders’ equity | 697,086 | 632,095 | 569,915 | 428,179 | 62,712 | ||||||||||||||
Noncontrolling interests | 66,343 | 39,374 | 27,231 | 22,615 | 9,407 |
(1) | Successor refers to William Lyon Homes and its consolidated subsidiaries on and after February 25, 2012, or the Emergence Date, after giving effect to: (i) the cancellation of shares of our common stock issued prior to February 25, 2012; (ii) the issuance of shares of new common stock, and settlement of existing debt and other adjustments in accordance with the Plan; and (iii) the application of fresh start accounting. Predecessor refers to William Lyon Homes and its consolidated subsidiaries up to the Emergence Date. In relation to the adoption of fresh start accounting in conjunction with the confirmation of the Plan, the results of operations for 2012 separately present the period from January 1, 2012 through February 24, 2012 as the pre-emergence, predecessor entity and the period from February 25, 2012 through December 31, 2012 as the successor entity. As such, the application of fresh start accounting as described in Note 1 of the “Notes to Consolidated Financial Statements” is reflected in the years ended December 31, 2016, 2015, and 2014, and the period from February 25, 2012 through December 31, 2012 and not the period from January 1, 2012 through February 24, 2012. Certain statistics including (i) net new home orders, (ii) average number of sales locations, (iii) backlog, (iv) number of homes closed, (v) homes sales revenue and (vi) average sales price of homes closed are not affected by the fresh start accounting. |
(2) | The Company recorded reorganization items of $(0.5) million, $(2.5) million, and $233.5 million during the year ended December 31, 2013, the period from February 25, 2012 through December 31, 2012, the period from January 1, 2012 through February 24, 2012 respectively. |
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Year Ended December 31, | Increase (Decrease) | ||||||||||
2016 | 2015 | Amount | % | ||||||||
Number of Net New Home Orders | |||||||||||
California | 752 | 669 | 83 | 12 | % | ||||||
Arizona | 468 | 414 | 54 | 13 | % | ||||||
Nevada | 275 | 272 | 3 | 1 | % | ||||||
Colorado | 248 | 224 | 24 | 11 | % | ||||||
Washington | 297 | 416 | (119 | ) | (29 | )% | |||||
Oregon | 735 | 580 | 155 | 27 | % | ||||||
Total | 2,775 | 2,575 | 200 | 8 | % |
Year Ended December 31, | Increase (Decrease) | |||||||
2016 | 2015 | Amount | ||||||
Cancellation Rates | ||||||||
California | 18 | % | 22 | % | (4 | )% | ||
Arizona | 12 | % | 14 | % | (2 | )% | ||
Nevada | 18 | % | 20 | % | (2 | )% | ||
Colorado | 13 | % | 19 | % | (6 | )% | ||
Washington | 16 | % | 20 | % | (4 | )% | ||
Oregon | 17 | % | 21 | % | (4 | )% | ||
Overall | 16 | % | 20 | % | (4 | )% |
Year Ended December 31, | Increase (Decrease) | ||||||||||
2016 | 2015 | Amount | % | ||||||||
Average Number of Sales Locations | |||||||||||
California | 20 | 18 | 2 | 11 | % | ||||||
Arizona | 8 | 7 | 1 | 14 | % | ||||||
Nevada | 12 | 11 | 1 | 9 | % | ||||||
Colorado | 10 | 13 | (3 | ) | (23 | )% | |||||
Washington | 6 | 6 | — | — | % | ||||||
Oregon | 18 | 13 | 5 | 38 | % | ||||||
Total | 74 | 68 | 6 | 9 | % |
Year Ended December 31, | Increase (Decrease) | |||||
2016 | 2015 | Amount | ||||
Monthly Absorption Rates | ||||||
California | 3.1 | 3.1 | — | |||
Arizona | 4.9 | 4.9 | — | |||
Nevada | 1.9 | 2.1 | (0.2 | ) | ||
Colorado | 2.1 | 1.4 | 0.7 | |||
Washington | 4.1 | 5.8 | (1.7) | |||
Oregon | 3.4 | 3.7 | (0.3) | |||
Overall | 3.1 | 3.2 | (0.1 | ) |
December 31, | Increase (Decrease) | |||||||||||
2016 | 2015 | Amount | % | |||||||||
Backlog (units) | ||||||||||||
California | 224 | 194 | 30 | 15 | % | |||||||
Arizona | 204 | 209 | (5 | ) | (2 | )% | ||||||
Nevada | 59 | 115 | (56 | ) | (49 | )% | ||||||
Colorado | 75 | 78 | (3 | ) | (4 | )% | ||||||
Washington | 52 | 44 | 8 | 18 | % | |||||||
Oregon | 119 | 99 | 20 | 20 | % | |||||||
Total | 733 | 739 | (6 | ) | (1 | )% |
December 31, | Increase (Decrease) | ||||||||||||||
2016 | 2015 | Amount | % | ||||||||||||
(dollars in thousands) | |||||||||||||||
Backlog (dollars) | |||||||||||||||
California | $ | 182,300 | $ | 152,673 | $ | 29,627 | 19 | % | |||||||
Arizona | 59,563 | 53,527 | 6,036 | 11 | % | ||||||||||
Nevada | 45,034 | 77,151 | (32,117 | ) | (42 | )% | |||||||||
Colorado | 39,569 | 40,952 | (1,383 | ) | (3 | )% | |||||||||
Washington | 34,789 | 24,414 | 10,375 | 42 | % | ||||||||||
Oregon | 49,420 | 43,053 | 6,367 | 15 | % | ||||||||||
Total | $ | 410,675 | $ | 391,770 | $ | 18,905 | 5 | % |
December 31, | Increase (Decrease) | ||||||||||
2016 | 2015 | Amount | % | ||||||||
Number of Homes Closed | |||||||||||
California | 722 | 633 | 89 | 14 | % | ||||||
Arizona | 473 | 252 | 221 | 88 | % | ||||||
Nevada | 331 | 230 | 101 | 44 | % | ||||||
Colorado | 251 | 230 | 21 | 9 | % | ||||||
Washington | 289 | 434 | (145 | ) | (33 | )% | |||||
Oregon | 715 | 535 | 180 | 34 | % | ||||||
Total | 2,781 | 2,314 | 467 | 20 | % |
Year Ended December 31, | Increase (Decrease) | |||||||||||||
2016 | 2015 | Amount | % | |||||||||||
(dollars in thousands) | ||||||||||||||
Home Sales Revenue | ||||||||||||||
California | $ | 490,352 | $ | 379,310 | $ | 111,042 | 29 | % | ||||||
Arizona | 125,951 | 67,010 | 58,941 | 88 | % | |||||||||
Nevada | 191,711 | 130,845 | 60,866 | 47 | % | |||||||||
Colorado | 128,530 | 107,014 | 21,516 | 20 | % | |||||||||
Washington | 154,600 | 181,258 | (26,658 | ) | (15 | )% | ||||||||
Oregon | 311,059 | 213,491 | 97,568 | 46 | % | |||||||||
Total | $ | 1,402,203 | $ | 1,078,928 | $ | 323,275 | 30 | % |
Year Ended December 31, | Increase (Decrease) | |||||||||||||
2016 | 2015 | Amount | % | |||||||||||
Average Sales Price of Homes Closed | ||||||||||||||
California | $ | 679,200 | $ | 599,200 | $ | 80,000 | 13 | % | ||||||
Arizona | 266,300 | 265,900 | 400 | — | % | |||||||||
Nevada | 579,200 | 568,900 | 10,300 | 2 | % | |||||||||
Colorado | 512,100 | 465,300 | 46,800 | 10 | % | |||||||||
Washington | 534,900 | 417,600 | 117,300 | 28 | % | |||||||||
Oregon | 435,000 | 399,000 | 36,000 | 9 | % | |||||||||
Total average | $ | 504,200 | $ | 466,300 | $ | 37,900 | 8 | % |
Year Ended December 31, | |||||||
2016 | 2015 | ||||||
(dollars in thousands) | |||||||
Home sales revenue | $ | 1,402,203 | $ | 1,078,928 | |||
Cost of home sales | 1,162,337 | 878,995 | |||||
Homebuilding gross margin | 239,866 | 199,933 | |||||
Homebuilding gross margin percentage | 17.1 | % | 18.5 | % | |||
Add: Interest in cost of sales | 57,297 | 38,416 | |||||
Add: Purchase accounting adjustments | 23,414 | 28,919 | |||||
Adjusted homebuilding gross margin | $ | 320,577 | $ | 267,268 | |||
Adjusted homebuilding gross margin percentage | 22.9 | % | 24.8 | % |
Year Ended December 31, | As a Percentage of Home Sales Revenue | ||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||
(dollars in thousands) | |||||||||||||
Sales and Marketing | $ | 72,509 | $ | 61,539 | 5.2 | % | 5.7 | % | |||||
General and Administrative | 73,398 | 59,161 | 5.2 | % | 5.5 | % | |||||||
Total Sales and Marketing & General and Administrative | $ | 145,907 | $ | 120,700 | 10.4 | % | 11.2 | % |
Year Ended December 31, | |||||||
2016 | 2015 | ||||||
Interest incurred | $ | 83,218 | $ | 76,221 | |||
Less: Interest capitalized | (83,218 | ) | (76,221 | ) | |||
Interest expense, net of amounts capitalized | $ | — | $ | — | |||
Cash paid for interest | $ | 79,734 | $ | 72,254 |
December 31, | ||||||||||||
2016 | 2015 | Amount | % | |||||||||
Lots Owned | ||||||||||||
California | 1,484 | 2,200 | (716 | ) | (33 | )% | ||||||
Arizona | 4,932 | 5,204 | (272 | ) | (5 | )% | ||||||
Nevada | 3,028 | 2,888 | 140 | 5 | % | |||||||
Colorado | 1,475 | 798 | 677 | 85 | % | |||||||
Washington | 1,367 | 1,144 | 223 | 19 | % | |||||||
Oregon | 1,340 | 1,245 | 95 | 8 | % | |||||||
Total | 13,626 | 13,479 | 147 | 1 | % | |||||||
Lots Controlled (1) | ||||||||||||
California | 971 | 601 | 370 | 62 | % | |||||||
Arizona | — | — | — | — | % | |||||||
Nevada | 43 | 554 | (511 | ) | (92 | )% | ||||||
Colorado | 86 | 134 | (48 | ) | (36 | )% | ||||||
Washington | 1,036 | 871 | 165 | 19 | % | |||||||
Oregon | 2,096 | 1,775 | 321 | 18 | % | |||||||
Total | 4,232 | 3,935 | 297 | 8 | % | |||||||
Total Lots Owned and Controlled | 17,858 | 17,414 | 444 | 3 | % |
(1) | Lots controlled may be purchased by the Company as consolidated projects or may be purchased by newly formed joint ventures. |
Year Ended December 31, | Increase (Decrease) | ||||||||||
2015 | 2014 | Amount | % | ||||||||
Number of Net New Home Orders | |||||||||||
California | 669 | 792 | (123 | ) | (16 | )% | |||||
Arizona | 414 | 201 | 213 | 106 | % | ||||||
Nevada | 272 | 237 | 35 | 15 | % | ||||||
Colorado | 224 | 152 | 72 | 47 | % | ||||||
Washington | 416 | 134 | 282 | 210 | % | ||||||
Oregon | 580 | 161 | 419 | 260 | % | ||||||
Total | 2,575 | 1,677 | 898 | 54 | % |
Year Ended December 31, | Increase (Decrease) | |||||||
2015 | 2014 | Amount | ||||||
Cancellation Rates | ||||||||
California | 22 | % | 17 | % | 5 | % | ||
Arizona | 14 | % | 13 | % | 1 | % | ||
Nevada | 20 | % | 22 | % | (2 | )% | ||
Colorado | 19 | % | 15 | % | 4 | % | ||
Washington | 20 | % | 20 | % | — | % | ||
Oregon | 21 | % | 23 | % | (2 | )% | ||
Total | 20 | % | 18 | % | 2 | % |
Year Ended December 31, | Increase (Decrease) | ||||||||||
2015 | 2014 | Amount | % | ||||||||
Average Number of Sales Locations | |||||||||||
California | 18 | 17 | 1 | 6 | % | ||||||
Arizona | 7 | 6 | 1 | 17 | % | ||||||
Nevada | 11 | 9 | 2 | 22 | % | ||||||
Colorado | 13 | 8 | 5 | 63 | % | ||||||
Washington | 6 | 2 | 4 | 200 | % | ||||||
Oregon | 13 | 2 | 11 | 550 | % | ||||||
Total | 68 | 44 | 24 | 55 | % |
Year Ended December 31, | Increase (Decrease) | ||||||
2015 | 2014 | Amount | |||||
Monthly Absorption Rates | |||||||
California | 3.1 | 3.9 | (0.8) | ||||
Arizona | 4.9 | 2.8 | 2.1 | ||||
Nevada | 2.1 | 2.2 | (0.1) | ||||
Colorado | 1.4 | 1.6 | (0.2) | ||||
Washington | 5.8 | 5.6 | 0.2 | ||||
Oregon | 3.7 | 6.7 | (3.0) | ||||
Overall | 3.2 | 3.2 | — |
December 31, | Increase (Decrease) | |||||||||||
2015 | 2014 | Amount | % | |||||||||
Backlog (units) | ||||||||||||
California | 194 | 158 | 36 | 23 | % | |||||||
Arizona | 209 | 47 | 162 | 345 | % | |||||||
Nevada | 115 | 73 | 42 | 58 | % | |||||||
Colorado | 78 | 84 | (6 | ) | (7 | )% | ||||||
Washington | 44 | 62 | (18 | ) | (29 | )% | ||||||
Oregon | 99 | 54 | 45 | 83 | % | |||||||
Total | 739 | 478 | 261 | 55 | % |
December 31, | Increase (Decrease) | ||||||||||||||
2015 | 2014 | Amount | % | ||||||||||||
(dollars in thousands) | |||||||||||||||
Backlog (dollars) | |||||||||||||||
California | $ | 152,673 | $ | 93,912 | $ | 58,761 | 63 | % | |||||||
Arizona | 53,527 | 13,408 | 40,119 | 299 | % | ||||||||||
Nevada | 77,151 | 62,847 | 14,304 | 23 | % | ||||||||||
Colorado | 40,952 | 37,935 | 3,017 | 8 | % | ||||||||||
Washington | 24,414 | 34,309 | (9,895 | ) | (29 | )% | |||||||||
Oregon | 43,053 | 17,716 | 25,337 | 143 | % | ||||||||||
Total | $ | 391,770 | $ | 260,127 | $ | 131,643 | 51 | % |
December 31, | Increase (Decrease) | ||||||||||
2015 | 2014 | Amount | % | ||||||||
Number of Homes Closed | |||||||||||
California | 633 | 840 | (207 | ) | (25 | )% | |||||
Arizona | 252 | 217 | 35 | 16 | % | ||||||
Nevada | 230 | 236 | (6 | ) | (3 | )% | |||||
Colorado | 230 | 95 | 135 | 142 | % | ||||||
Washington | 434 | 154 | 280 | 182 | % | ||||||
Oregon | 535 | 211 | 324 | 154 | % | ||||||
Total | 2,314 | 1,753 | 561 | 32 | % |
Year Ended December 31, | Increase (Decrease) | |||||||||||||
2015 | 2014 | Amount | % | |||||||||||
(dollars in thousands) | ||||||||||||||
Home Sales Revenue | ||||||||||||||
California | $ | 379,310 | $ | 498,965 | $ | (119,655 | ) | (24 | )% | |||||
Arizona | 67,010 | 57,484 | 9,526 | 17 | % | |||||||||
Nevada | 130,845 | 121,815 | 9,030 | 7 | % | |||||||||
Colorado | 107,014 | 46,460 | 60,554 | 130 | % | |||||||||
Washington | 181,258 | 65,886 | 115,372 | 175 | % | |||||||||
Oregon | 213,491 | 66,415 | 147,076 | 221 | % | |||||||||
Total | $ | 1,078,928 | $ | 857,025 | $ | 221,903 | 26 | % |
Year Ended December 31, | Increase (Decrease) | |||||||||||||
2015 | 2014 | Amount | % | |||||||||||
Average Sales Price of Homes Closed | ||||||||||||||
California | $ | 599,200 | $ | 594,000 | $ | 5,200 | 1 | % | ||||||
Arizona | 265,900 | 264,900 | 1,000 | — | % | |||||||||
Nevada | 568,900 | 516,200 | 52,700 | 10 | % | |||||||||
Colorado | 465,300 | 489,100 | (23,800 | ) | (5 | )% | ||||||||
Washington | 417,600 | 427,800 | (10,200 | ) | (2 | )% | ||||||||
Oregon | 399,000 | 314,800 | 84,200 | 27 | % | |||||||||
Total average | $ | 466,300 | $ | 488,900 | $ | (22,600 | ) | (5 | )% |
Year Ended December 31, | |||||||
2015 | 2014 | ||||||
(dollars in thousands) | |||||||
Home sales revenue | $ | 1,078,928 | $ | 857,025 | |||
Cost of home sales | 878,995 | 677,531 | |||||
Homebuilding gross margin | 199,933 | 179,494 | |||||
Homebuilding gross margin percentage | 18.5 | % | 20.9 | % | |||
Add: Interest in cost of sales | 38,416 | 26,510 | |||||
Add: Purchase accounting adjustments | 28,919 | 9,979 | |||||
Adjusted homebuilding gross margin | $ | 267,268 | $ | 215,983 | |||
Adjusted homebuilding gross margin percentage | 24.8 | % | 25.2 | % |
Year Ended December 31, | As a Percentage of Home Sales Revenue | ||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||
(dollars in thousands) | |||||||||||||
Sales and Marketing | $ | 61,539 | $ | 45,903 | 5.7 | % | 5.4 | % | |||||
General and Administrative | 59,161 | 54,626 | 5.5 | % | 6.4 | % | |||||||
Total Sales and Marketing & General and Administrative | $ | 120,700 | $ | 100,529 | 11.2 | % | 11.7 | % |
Year Ended December 31, | |||||||
2015 | 2014 | ||||||
Interest incurred | $ | 76,221 | $ | 65,560 | |||
Less: Interest capitalized | (76,221 | ) | (65,560 | ) | |||
Interest expense, net of amounts capitalized | $ | — | $ | — | |||
Cash paid for interest | $ | 72,254 | $ | 46,779 |
December 31, | ||||||||||||
2015 | 2014 | Amount | % | |||||||||
Lots Owned | ||||||||||||
California | 2,200 | 2,140 | 60 | 3 | % | |||||||
Arizona | 5,204 | 5,421 | (217 | ) | (4 | )% | ||||||
Nevada | 2,888 | 2,941 | (53 | ) | (2 | )% | ||||||
Colorado | 798 | 979 | (181 | ) | (18 | )% | ||||||
Subtotal | 11,090 | 11,481 | (391 | ) | (3 | )% | ||||||
Washington | 1,144 | 1,427 | (283 | ) | (20 | )% | ||||||
Oregon | 1,245 | 1,195 | 50 | 4 | % | |||||||
Total | 13,479 | 14,103 | (624 | ) | (4 | )% | ||||||
Lots Controlled (1) | ||||||||||||
California | 601 | 1,538 | (937 | ) | (61 | )% | ||||||
Arizona | — | — | — | — | % | |||||||
Nevada | 554 | 156 | 398 | 255 | % | |||||||
Colorado | 134 | 183 | (49 | ) | (27 | )% | ||||||
Subtotal | 1,289 | 1,877 | (588 | ) | (31 | )% | ||||||
Washington | 871 | 728 | 143 | 20 | % | |||||||
Oregon | 1,775 | 834 | 941 | 113 | % | |||||||
Total | 3,935 | 3,439 | 496 | 14 | % | |||||||
Total Lots Owned and Controlled | 17,414 | 17,542 | (128 | ) | (1 | )% |
(1) | Lots controlled may be purchased by the Company as consolidated projects or may be purchased by newly formed joint ventures. |
Covenant Requirements at | Actual at | |||||||
Financial Covenant | December 31, 2016 | December 31, 2016 | ||||||
Minimum Tangible Net Worth | $ | 536.2 | million | $ | 688.8 | million | ||
Maximum Leverage Ratio | 62.5 | % | 60.3 | % | ||||
Interest Coverage Ratio; or (1) | 1.50x | 2.26x | ||||||
Minimum Liquidity (1) | $ | 83.2 | million | $ | 150.6 | million |
Issuance Date | Facility Size | Outstanding | Maturity | Current Rate | ||||||||||
March, 2016 | $ | 33.4 | $ | 17.4 | September, 2018 | 3.69 | % | (1) | ||||||
January, 2016 | 35.0 | 21.5 | February, 2019 | 4.02 | % | (2) | ||||||||
November, 2015 | 42.5 | 20.6 | November, 2017 | 4.75 | % | (1) | ||||||||
August, 2015 (4) | 14.2 | — | (5) | August, 2017 | 4.50 | % | (1) | |||||||
August, 2015 (4) | 37.5 | — | (5) | August, 2017 | 4.75 | % | (1) | |||||||
July, 2015 | 22.5 | 13.8 | July, 2018 | 4.25 | % | (3) | ||||||||
April, 2015 | 18.5 | 2.3 | October, 2017 | 4.25 | % | (3) | ||||||||
November, 2014 | 24.0 | 7.2 | November, 2017 | 4.25 | % | (3) | ||||||||
November, 2014 | 22.0 | 9.4 | November, 2017 | 4.25 | % | (3) | ||||||||
March, 2014 | 26.0 | 9.9 | April, 2018 | 3.71 | % | (1) | ||||||||
$ | 275.6 | $ | 102.1 |
December 31, | ||||||||
2016 | 2015 | |||||||
(dollars in thousands) | ||||||||
Notes payable and Senior Notes | $ | 1,080,650 | $ | 1,105,776 | ||||
Total equity | 763,429 | 671,469 | ||||||
Total capital | $ | 1,844,079 | $ | 1,777,245 | ||||
Ratio of debt to total capital | 58.6 | % | 62.2 | % | ||||
Notes payable and Senior Notes | $ | 1,080,650 | $ | 1,105,776 | ||||
Less: Cash and cash equivalents and restricted cash | (42,612 | ) | (50,707 | ) | ||||
Net debt | 1,038,038 | 1,055,069 | ||||||
Total equity | 763,429 | 671,469 | ||||||
Total capital (net of cash) | $ | 1,801,467 | $ | 1,726,538 | ||||
Ratio of net debt to total capital (net of cash) | 57.6 | % | 61.1 | % |
• | Net cash provided by operating activities was $21.7 million in the 2016 period compared to net cash used in operating activities of $172.9 million in the 2015 period. The change was primarily a result of (i) a net decrease in spending on real estate inventories-owned of $69.6 million in the 2016 period compared to spending of $264.9 million in the 2015 period, and (ii) an increase in accrued expenses of $9.5 million in the 2016 period compared to a decrease of $15.0 million in the 2015 period, partially offset by (iii) a decrease in accounts payable of $1.6 million in the 2016 period compared to an increase of $24.1 million in the 2015 period due to timing of payments, and (iv) a decrease in receivables of $0.9 million in the 2016 period compared to an increase of $6.7 million in the 2015 period due to the timing of payments received. |
• | Net cash provided by investing activities was $5.2 million in the 2016 period compared to net cash used in investing activities of $5.8 million in the 2015 period, primarily driven by (i) an increase in proceeds from repayment of notes receivable of $6.2 million in the 2016 period for which there was no corresponding amount in the 2015 period, (ii) investment in unconsolidated joint ventures of $1.0 million in the 2015 period for which there was no corresponding amount in the 2016 period, and (iii) decreases in purchases of property and equipment of $1.0 million in the 2016 period, compared to $4.8 million in the 2015 period. |
• | Net cash used in financing activities was $34.5 million in the 2016 period compared to net cash provided by financing activities of $176.1 million in the 2015 period. The change was primarily the result of (i) proceeds from issuance of 7% Senior notes of $51.0 million in the 2015 period for which there is no corresponding amount in the 2016 period, (ii) net payments of $36.0 million against the revolving line of credit in the 2016 period compared to net borrowings of $65.0 million in the 2015 period, and (iii) net payments of notes payable of $8.1 million in the 2016 period compared to net borrowings of $61.4 million in the 2015 period, partially offset by (iv) net noncontrolling interest contributions of $18.7 million in the 2016 period compared to $9.2 million in the 2015 period. |
• | Net cash used in operating activities increased to $172.9 million in the 2015 period from $159.8 million in the 2014 period. The change was primarily a result of (i) a decrease in accrued expenses of $15.0 million in the 2015 period compared to an increase of $21.3 million in the 2014 period primarily due to the timing of payments, and (ii) an increase in accounts payable of $24.1 million in the 2015 period compared to an increase of $34.1 million in the 2014 period due to timing of payments, partially offset by (iii) a net decrease in spending on real estate inventories-owned of $264.9 million in the 2015 period primarily driven by $356.0 million in land acquisitions, compared to spending of $278.0 million in the 2014 period, and (iv) an increase in receivables of $6.7 million in the 2015 period compared to a decrease of $4.6 million in the 2014 period due to the timing of payments received. |
• | Net cash used in investing activities was $5.8 million in the 2015 period compared to $495.0 million in the 2014 period, primarily driven by (i) net cash paid of $492.4 million to acquire the assets and operations of Polygon Northwest Homes in the 2014 period, for which there was no corresponding amount in the 2015 period, (ii) purchases of property and equipment of $4.8 million in the 2015 period, compared to $2.1 million in the 2014 period, and (iii) investment in unconsolidated joint ventures of $1.0 million in the 2015 period compared to $0.5 million in the 2014 period. |
• | Net cash provided by financing activities decreased to $176.1 million in the 2015 period from $535.9 million in the 2014 period. The change was primarily the result of (i) proceeds from issuance of 7% Senior notes of $51.0 million in the 2015 period, versus $300.0 million in the 2014 period, (ii) proceeds from issuance of 5 3/4% Senior notes of $150.0 million in the 2014 period, with no comparable amount in the 2015 period, and (iii) principal payments on Subordinated amortizing notes of $6.7 million in the 2015 period, with no comparable amount in the 2014 period, offset by (iv) net borrowings of $65.0 million against the revolving line of credit in the 2015 period for which there was no comparable amount in the 2014 period, (v) net borrowings of notes payable of $61.4 million in the 2015 period, with net payments of $1.2 million in the 2014 period, and (vi) net noncontrolling interest contributions of $9.2 million in the 2015 period versus net distributions of $5.3 million in the 2014 period. |
Payments due by period | ||||||||||||||||||||
Total(1) | Less than 1 year (2017) | 1-3 years (2018-2019) | 3-5 years (2020-2021) | More than 5 years | ||||||||||||||||
Notes Payable | $ | 155,767 | $ | 43,579 | $ | 112,188 | $ | — | $ | — | ||||||||||
Notes Payable interest | 10,424 | 6,344 | 4,080 | — | — | |||||||||||||||
Subordinated Amortizing Notes | 7,225 | 7,225 | — | — | — | |||||||||||||||
Subordinated Amortizing Notes interest | 250 | 250 | — | — | — | |||||||||||||||
Senior Notes (4) | 925,000 | — | 150,000 | 425,000 | 350,000 | |||||||||||||||
Senior Notes interest | 297,203 | 69,250 | 132,031 | 80,609 | 15,313 | |||||||||||||||
Operating leases | 12,198 | 2,612 | 4,793 | 3,905 | 888 | |||||||||||||||
Surety bonds | 196,579 | 175,210 | 21,339 | 30 | — | |||||||||||||||
Purchase obligations: | ||||||||||||||||||||
Land purchases and option commitments (2) | 418,931 | 151,686 | 246,169 | 21,076 | — | |||||||||||||||
Project commitments (3) | 287,310 | 201,117 | 86,193 | — | — | |||||||||||||||
Total | $ | 2,310,887 | $ | 657,273 | $ | 756,793 | $ | 530,620 | $ | 366,201 |
(1) | The summary of contractual obligations above includes interest on all interest-bearing obligations. Interest on all fixed rate interest-bearing obligations is based on the stated rate and is calculated to the stated maturity date. Interest on all variable rate interest bearing obligations is based on the rates effective as of December 31, 2016 and is calculated to the stated maturity date. |
(2) | Represents the Company’s obligations in land purchases, lot option agreements and land banking arrangements. If the Company does not purchase the land under contract, it will forfeit its non-refundable deposit related to the land. Further, reflects the full contractual amount and there may be existing deposits that net against such amount, and the actual amount may change if the Company decides to acquire the land through a joint venture or land bank arrangement, if at all. |
(3) | Represents the Company’s homebuilding project purchase commitments for developing and building homes in the ordinary course of business. |
(4) | On January 31, 2017, California Lyon completed the sale to certain purchasers of $450.0 million in aggregate principal amount of the 5.875% Notes, in a private placement with registration rights. Parent, through California Lyon, used the net proceeds from the 5.875% Notes offering to purchase $395.6 million of the outstanding aggregate principal amount of the 8.5% Notes due 2020, pursuant to a cash tender offer and consent solicitation, and subsequently used the remaining proceeds, together with cash on hand, for the retirement of the remaining outstanding 8.5% Notes due 2020. See Note 17 for additional details regarding this refinancing transaction. |
• | historical subdivision results, and actual operating profit, base selling prices and home sales incentives; |
• | forecasted operating profit for homes in backlog; |
• | the intensity of competition within a market or sub-market, including publicly available home sales prices and home sales incentives offered by our competitors; |
• | increased levels of home foreclosures; |
• | the current sales pace for active subdivisions; |
• | subdivision specific attributes, such as location, availability of lots in the sub-market, desirability and uniqueness of subdivision location and the size and style of homes currently being offered; |
• | changes by management in the sales strategy of a given subdivision; and |
• | current local market economic and demographic conditions and related trends and forecasts. |
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk |
Year ended December 31, | Fair Value at December 31, 2016 | ||||||||||||||||||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | Thereafter | Total | |||||||||||||||||||||||||
Fixed rate debt | $ | 10,205 | $ | 21,712 | $ | 150,000 | $ | 425,000 | $ | — | $ | 350,000 | $ | 956,917 | $ | 990,545 | |||||||||||||||
Interest rate | 5.5 - 7.0% | 7.00 | % | 5.75 | % | 8.50 | % | — | 7.00 | % |
Item 8. | Financial Statements and Supplementary Data |
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
Item 9A. | Controls and Procedures |
Item 9B. | Other Information |
Item 10. | Directors, Executive Officers and Corporate Governance |
Item 11. | Executive Compensation |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
Item 13. | Certain Relationships and Related Transactions, and Director Independence |
Item 14. | Principal Accountant Fees and Services |
Item 15. | Exhibits and Financial Statement Schedules |
Page | |
Financial Statements as of December 31, 2016 and 2015, and for the years ended December 31, 2016, 2015 and 2014. | |
Report of Independent Registered Public Accounting Firm | |
Consolidated Balance Sheets | |
Consolidated Statements of Operations | |
Consolidated Statements of Equity | |
Consolidated Statements of Cash Flows | |
Notes to Consolidated Financial Statements |
Exhibit Number | Description | ||
2.1 | Purchase and Sale Agreement, dated as of June 22, 2014, by and among PNW Home Builders, L.L.C., PNW Home Builders North, L.L.C., PNW Home Builders South, L.L.C., Crescent Ventures, L.L.C. and William Lyon Homes, Inc. (incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K filed on June 23, 2014). | ||
3.1 | Third Amended and Restated Certificate of Incorporation of William Lyon Homes (incorporated by reference to William Lyon Homes’s Current Report on Form 8-K filed with the Commission on May 28, 2013). | ||
3.2 | Amended and Restated Bylaws of William Lyon Homes (incorporated by reference to William Lyon Homes’s Current Report on Form 8-K filed with the Commission on May 28, 2013). | ||
3.3 | Amended and Restated Bylaws of William Lyon Homes (Incorporated by reference to Exhibit 3.1 of the Company's Form 8-K filed July 22, 2015) | ||
4.1 | Indenture (including form of 8.5% Senior Note due 2020), dated as of November 8, 2012, by and between William Lyon Homes, Inc., William Lyon Homes, certain of William Lyon Homes’s subsidiaries (as guarantors) and U.S. Bank National Association, as trustee (incorporated by reference to William Lyon Homes’s Current Report on Form 8-K filed with the Commission on November 8, 2012). | ||
4.2 | Officers' certificate, dated October 24, 2013, delivered pursuant to the Indenture, and setting forth the terms of the notes (incorporated by reference to Exhibit 4.1 of the Company's Current Report on Form 8-K filed on October 25, 2013). |
Exhibit Number | Description | ||
4.3 | Indenture (including form of 5.75% Senior Notes due 2019), dated March 31, 2014, among William Lyon Homes, Inc., William Lyon Homes, certain of William Lyon Homes' subsidiaries (as guarantors) and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed on April 1, 2014). | ||
4.4 | Indenture (including form of 7.00% Senior Notes due 2022), dated August 11, 2014, among WLH PNW Finance Corp., the guarantors from time to time party thereto and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.1 of the Company's Form 8-K filed August 13, 2014). | ||
4.5 | Second Supplemental Indenture, dated as of August 12, 2014, among William Lyon Homes, Inc., the subsidiary guarantors named therein and U.S. Bank National Association, relating to the 8.5% Senior Notes due 2020 (incorporated by reference to Exhibit 4.3 of the Company's Form 8-K filed August 13, 2014). | ||
4.6 | First Supplemental Indenture, dated as of August 12, 2014, among William Lyon Homes, Inc., the subsidiary guarantors named therein and U.S. Bank National Association, relating to the 5.75% Senior Notes due 2019 (incorporated by reference to Exhibit 4.4 of the Company's Form 8-K filed August 13, 2014). | ||
4.7 | First Supplemental Indenture, dated as of August 12, 2014, among William Lyon Homes, Inc., William Lyon Homes, the subsidiary guarantors named therein and U.S. Bank National Association, relating to the 7.00% Senior Notes due 2022 (incorporated by reference to Exhibit 4.5 of the Company's Form 8-K filed August 13, 2014). | ||
4.8 | Second Supplemental Indenture, dated as of August 12, 2014, among William Lyon Homes, Inc., the subsidiary guarantors named therein and U.S. Bank National Association, relating to the 7.00% Senior Notes due 2022 (incorporated by reference to Exhibit 4.6 of the Company's Form 8-K filed August 13, 2014). | ||
4.9 | Indenture, dated November 21, 2014, between William Lyon Homes and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.1 to William Lyon Homes’ Current Report on Form 8-K filed with the SEC on November 21, 2014). | ||
4.10 | First Supplemental Indenture (including form of 5.50% Senior Subordinated Amortizing Notes due December 1, 2017), dated November 21, 2014, between William Lyon Homes and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.2 to William Lyon Homes’ Current Report on Form 8-K filed with the SEC on November 21, 2014). | ||
4.11 | Purchase Contract Agreement (including form of unit and form of prepaid stock purchase contract), dated November 21, 2014, among William Lyon Homes, U.S. Bank National Association, as trustee, and U.S. Bank National Association, as purchase contract agent and as attorney-in-fact for the holders from time to time as provided therein (incorporated by reference to Exhibit 4.3 to William Lyon Homes’ Current Report on Form 8-K filed with the SEC on November 21, 2014). | ||
4.12 | Officers’ Certificate, dated September 15, 2015, delivered pursuant to the Indenture dated August 11, 2014 relating to the 7.00% Senior Notes due 2022, and setting forth the terms of the Additional Notes (incorporated by reference to Exhibit 4.1 of the Company’s Form 8-K filed September 15, 2015) | ||
4.13 | Indenture dated January 31, 2017, among California Lyon, the Guarantors and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.1 of the Company’s Form 8-K filed January 31, 2017) | ||
4.14 | Form of 5.875% Senior Notes due 2025 (incorporated by reference to Exhibit 4.2 of the Company’s Form 8-K filed January 31, 2017) | ||
Exhibit Number | Description | ||
4.15 | Third Supplemental Indenture, dated January 31, 2017, among California Lyon, Parent, the guarantors party thereto and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.3 of the Company’s Form 8-K filed January 31, 2017) | ||
10.1 | Form of Indemnity Agreement, between William Lyon Homes, a Delaware corporation, and the directors and officers of William Lyon Homes (incorporated by reference to William Lyon Homes’s Annual Report on Form 10-K for the year-ended December 31, 1999). | ||
10.2 | The Presley Companies Non-Qualified Retirement Plan for Outside Directors (incorporated by reference to William Lyon Homes’s Annual Report on Form 10-K for the year-ended December 31, 2002). | ||
10.3 | Aircraft Purchase and Sale Agreement dated as of September 3, 2009, by and between Presley CMR, Inc., and Martin Aviation, Inc., or its designee (incorporated by reference to William Lyon Homes’s Current Report on Form 8-K filed with the Commission on September 10, 2009). | ||
10.4 | Secured Promissory Note dated September 9, 2009 from Martin Aviation, Inc., a California corporation payable to William Lyon Homes, Inc., a California corporation (incorporated by reference to William Lyon Homes’s Current Report on Form 8-K filed with the Commission on September 10, 2009). | ||
10.5 | Aircraft Mortgage and Security Agreement between Martin Aviation, Inc., a California corporation and William Lyon Homes, Inc., dated as of September 9, 2009 (incorporated by reference to William Lyon Homes’s Current Report on Form 8-K filed with the Commission on September 10, 2009). | ||
10.6 | Form of Class A Common Stock Registration Rights Agreement, dated as of February 25, 2012, by and among William Lyon Homes and the Holders (as defined therein) (incorporated by reference to the Company’s Current Report on Form 8-K filed with the Commission on March 6, 2012). | ||
10.7 | Class B Common Stock and Warrant Purchase Agreement, dated as of February 25, 2012, by and between William Lyon Homes and the Purchaser (as defined therein) (incorporated by reference to the Company’s Current Report on Form 8-K filed with the Commission on March 6, 2012). | ||
10.8 | Warrant to Purchase Shares of Class B Common Stock of William Lyon Homes, dated as of February 25, 2012 (incorporated by reference to the Company’s Current Report on Form 8-K filed with the Commission on March 6, 2012). | ||
10.9 | Class B Common Stock Registration Rights Agreement, dated as of February 25, 2012, by and among William Lyon Homes and the Holders (as defined therein) (incorporated by reference to the Company’s Current Report on Form 8-K filed with the Commission on March 6, 2012). | ||
10.10 | Form of Convertible Preferred Stock and Class C Common Stock Registration Rights Agreement, dated as of February 25, 2012, by and among William Lyon Homes and the Holders party thereto (incorporated by reference to the Company’s Current Report on Form 8-K filed with the Commission on March 6, 2012). | ||
10.11† | Employment Agreement, dated as of February 25, 2012, by and among William Lyon Homes, William Lyon Homes, Inc. and General William Lyon (incorporated by reference to the Company’s Current Report on Form 8-K filed with the Commission on March 6, 2012). | ||
10.12† | Employment Agreement, dated as of February 25, 2012, by and among William Lyon Homes, William Lyon Homes, Inc. and William H. Lyon (incorporated by reference to the Company’s Current Report on Form 8-K filed with the Commission on March 6, 2012). | ||
10.13† | William Lyon Homes 2012 Equity Incentive Plan (incorporated by reference to the Company’s Registration Statement on Form S-1/A filed with the Commission on December 6, 2012). | ||
Exhibit Number | Description | ||
10.14† | William Lyon Homes 2012 Equity Incentive Plan form of Stock Option Agreement (incorporated by reference to the Company’s Registration Statement on Form S-1/A filed with the Commission on December 6, 2012). | ||
10.15† | William Lyon Homes 2012 Equity Incentive Plan form of Restricted Stock Award Agreement (incorporated by reference to the Company’s Registration Statement on Form S-1/A filed with the Commission on December 6, 2012). | ||
10.16† | Form of Employment Agreement, dated September 1, 2012 (incorporated by reference to the Company’s Registration Statement on Form S-1/A filed with the Commission on December 6, 2012). | ||
10.17 | Class A Common Stock and Convertible Preferred Stock Subscription Agreement, dated October 12, 2012, by and between William Lyon Homes and WLH Recovery Acquisition LLC (incorporated by reference to the Company’s Registration Statement on Form S-1/A filed with the Commission on December 6, 2012). | ||
10.18 | Amendment of and Joinder to Class A Common Stock Registration Rights Agreement, dated October 12, 2012, by and between WLH Recovery Acquisition LLC and William Lyon Homes (incorporated by reference to the Company’s Registration Statement on Form S-1/A filed with the Commission on December 6, 2012). | ||
10.19 | Amendment of and Joinder to Convertible Preferred Stock and Class C Common Stock Registration Rights Agreement, dated October 12, 2012, by and between WLH Recovery Acquisition LLC and William Lyon Homes (incorporated by reference to the Company’s Registration Statement on Form S-1/A filed with the Commission on December 6, 2012). | ||
10.20† | William Lyon Homes 2012 Equity Incentive Plan Form of Restricted Stock Award Agreement (performance-based) (incorporated by reference to William Lyon Homes’s Form S-1 Registration Statement filed April 9, 2013 (File No. 333-187819)). | ||
10.21† | Revised Form of Employment Agreement, dated April 1, 2013 (incorporated by reference to William Lyon Homes’s Form S-1 Registration Statement filed April 9, 2013 (File No. 333-187819)). | ||
10.22† | Amendment to Employment Agreement, dated March 6, 2013, by and between William Lyon Homes, Inc., and Matthew R. Zaist (incorporated by reference to William Lyon Homes’s Form S-1 Registration Statement filed April 9, 2013 (File No. 333-187819)). | ||
10.23 | Amendment No. 1 to Warrant to Purchase Shares of Class B Common Stock (incorporated by reference to William Lyon Homes’s Current Report on Form 8-K filed with the Commission on May 28, 2013). | ||
10.24 | Form of indemnification agreement (incorporated by reference to William Lyon Homes’s Current Report on Form 8-K filed with the Commission on May 28, 2013). | ||
10.25† | Amendment No. 1 to the William Lyon Homes 2012 Equity Incentive Plan (incorporated by reference to Exhibit 10.23(a) to the Company’s Form S-1 Registration Statement filed May 6, 2013 (File No. 333-187819)). | ||
10.26 | Credit Agreement among William Lyon Homes, Inc., as Borrower, William Lyon Homes, as Parent, The Lenders from time to time party thereto, and Credit Suisse AG, as Administrative Agent, dated as of August 7, 2013 (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2013). | ||
10.27† | Amendment No. 2 to the William Lyon Homes 2012 Equity Incentive Plan (incorporated by reference to Exhibit 99.3 of the Company’s Form S-8 Registration Statement filed August 12, 2013 (File No. 333-190571)). |
Exhibit Number | Description | ||
10.28† | William Lyon Homes 2012 Equity Incentive Plan Form of Restricted Stock Award Agreement (performance-based) (incorporated by reference to Exhibit 10.42 of the Company's Form S-4 Registration Statement filed December 27, 2013 (file no. 333-193112)). | ||
10.29† | William Lyon Homes 2012 Equity Incentive Plan Form of Restricted Stock Award Agreement. (incorporated by reference to Exhibit 10.43 of the Company's Form S-4 Registration Statement filed December 27, 2013 (file no. 333-193112)). | ||
10.30† | William Lyon Homes 2012 Equity Incentive Plan Form of Stock Option Agreement. (incorporated by reference to Exhibit 10.44 of the Company's Form S-4 Registration Statement filed December 27, 2013 (file no. 333-193112)). | ||
10.31† | William Lyon Homes 2012 Equity Incentive Plan Form of Amendment No. 1 to Stock Option Agreement (Five-Year Options) (incorporated by reference to Exhibit 10.45 of the Company's Form S-4 Registration Statement filed December 27, 2013 (file no. 333-193112)). | ||
10.32 | Bridge Loan Agreement, dated as of August 12, 2014, among William Lyon Homes, Inc., as Borrower, William Lyon Homes, as Parent, the Lenders from time to time party thereto, and J.P. Morgan Chase Bank, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.1 of the Company's Form 8-K filed August 13, 2014). | ||
10.33 | Amendment No. 1 to Credit Agreement among William Lyon Homes, Inc., as Borrower, William Lyon Homes, as Parent, The Lenders from time to time party thereto, and Credit Suisse AG, as Administrative Agent, dated as of August 7, 2013 (incorporated by reference to Exhibit 10.2 of the Company's Form 10-Q filed on November 12, 2014). | ||
10.34† | Amendment No. 1 to Employment Agreement, dated as of February 25, 2012, by and among William Lyon Homes, William Lyon Homes, Inc. and General William Lyon (incorporated by reference to Exhibit 10.1 of the Company's Form 8-K filed December 31, 2014). | ||
10.35† | Amendment No. 1 to Employment Agreement, dated as of February 25, 2012, by and among William Lyon Homes, William Lyon Homes, Inc. and William H. Lyon (incorporated by reference to Exhibit 10.2 of the Company's Form 8-K filed December 31, 2014). | ||
10.36 | Amendment and Restatement Agreement dated as of March 27, 2015 among William Lyon Homes, Inc., a California corporation, as Borrower, William Lyon Homes, a Delaware corporation, as Parent, each subsidiary of the Borrower party thereto, the lenders listed on Schedule 1 thereto, and Credit Suisse AG, as administrative agent (incorporated by reference to Exhibit 10.1 of the Company's Quarterly Report on Form 10-Q filed May 8, 2015) | ||
10.37† | Employment Agreement by and among William Lyon Homes, William Lyon Homes, Inc. and William H. Lyon, dated as of March 31, 2015 (incorporated by reference to Exhibit 10.1 of the Company's Form 8-K filed April 2, 2015) | ||
10.38† | Employment Agreement by and among William Lyon Homes, William Lyon Homes, Inc. and Matthew R. Zaist, dated as of March 31, 2015 (incorporated by reference to Exhibit 10.2 of the Company's Form 8-K filed April 2, 2015) | ||
10.39† | Offer Letter by and between William Lyon Homes, Inc. and William Lyon, dated as of March 31, 2015 (incorporated by reference to Exhibit 10.3 of the Company's Form 8-K filed April 2, 2015) | ||
Exhibit Number | Description | ||
10.40 | Amendment No. 1 dated as of December 21, 2015 to the Amended and Restated Credit Agreement dated as of March 27, 2015 among William Lyon Homes, Inc., a California corporation, as Borrower, William Lyon Homes, a Delaware corporation, as Parent, the lenders from time to time party thereto, and Credit Suisse AG, as administrative agent (incorporated by reference to Exhibit 10.40 of the Company's Form 10-K filed March 11, 2016) | ||
10.41† | William Lyon Homes 2012 Equity Incentive Plan Form of Restricted Stock Award Agreement (Performance Based) (incorporated by reference to Exhibit 10.1 of the Company's Form 10-Q filed May 9, 2016) | ||
10.42† | William Lyon Homes 2012 Equity Incentive Plan Form of Restricted Stock Award Agreement (incorporated by reference to Exhibit 10.2 of the Company's Form 10-Q filed May 9, 2016) | ||
10.43† | Offer letter by and between William Lyon Homes, Inc. and General William Lyon, dated as of March 22, 2016 (incorporated by reference to Exhibit 10.1 of the Company's Form 8-K filed March 24, 2016) | ||
10.44 | Amendment and Restatement Agreement dated as of July 1, 2016 among William Lyon Homes, Inc., a California corporation, as Borrower, William Lyon Homes, a Delaware corporation, as Parent, each subsidiary of the Borrower party thereto, the lenders listed on Schedule 1 thereto, and Credit Suisse AG, as administrative agent (incorporated by reference to Exhibit 10.1 of the Company's Form 8-K filed July 7, 2016) | ||
10.45+ | Amendment No. 1 dated as of January 27, 2017 to the Second Amended and Restated Credit Agreement dated as of July 1, 2016, among William Lyon Homes, Inc., a California corporation, as Borrower, William Lyon Homes, a Delaware corporation, as Parent, the lenders from time to time party thereto, and Credit Suisse AG, as administrative agent. | ||
12.1+ | Statement Regarding the Computation of Ratio of Earnings (Loss) to Fixed Charges and Preferred Stock Dividends for the Years Ended December 31, 2016, 2015, 2014 and 2013, the Period from January 1, 2012 through February 24, 2012, and the Period from February 25, 2012 through December 31, 2012. | ||
21.1+ | List of Subsidiaries of the Company. | ||
23.1+ | Consent of KPMG LLP, Independent Registered Public Accounting Firm. | ||
31.1+ | Certification of Principal Executive Officer Required Under Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended | ||
31.2+ | Certification of Principal Financial Officer Required Under Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended | ||
32.1* | Certification of Principal Executive Officer Required Under Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended, and 18 U.S.C. Section 1350 | ||
32.2* | Certification of Principal Financial Officer Required Under Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended, and 18 U.S.C. Section 1350 | ||
101.INS* ** | XBRL Instance Document | ||
101.SCH* ** | XBRL Taxonomy Extension Schema Document | ||
101.CAL* ** | XBRL Taxonomy Extension Calculation Linkbase Document | ||
Exhibit Number | Description | ||
101.DEF* ** | XBRL Taxonomy Extension Definition Linkbase Document | ||
101.LAB* ** | XBRL Taxonomy Extension Label Linkbase Document | ||
101.PRE* ** | XBRL Taxonomy Extension Presentation Linkbase Document |
+ | Filed herewith |
† | Management contract or compensatory agreement |
* | The information in Exhibits 32.1 and 32.2 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act (including this Report), unless the Registrant specifically incorporates the foregoing information into those documents by reference. |
** | Pursuant to Rule 406T of Regulation S-T, the XBRL information will not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 and will not be deemed filed or part of a registration statement or prospectus for purposes of Sections 11 and 12 of the Securities Act of 1933, or otherwise subject to liability under those Sections. |
WILLIAM LYON HOMES, | ||
a Delaware corporation | ||
By: | /s/ Matthew R. Zaist | |
Matthew R. Zaist | ||
President & Chief Executive Officer |
Signature | Title | Date | ||
/s/ Matthew R. Zaist Matthew R. Zaist | President & Chief Executive Officer, Director (Principal Executive Officer) | March 9, 2017 | ||
/s/ Colin T. Severn Colin T. Severn | Senior Vice President, Chief Financial Officer (Principal Financial and Accounting Officer) | March 9, 2017 | ||
/s/ William H. Lyon William H. Lyon | Executive Chairman, Chairman of the Board | March 9, 2017 | ||
/s/ Douglas K. Ammerman Douglas K. Ammerman | Director | March 9, 2017 | ||
/s/ Michael Barr Michael Barr | Director | March 9, 2017 | ||
/s/ Gary H. Hunt Gary H. Hunt | Director | March 9, 2017 | ||
/s/ Matthew R. Niemann Matthew R. Niemann | Director | March 9, 2017 | ||
/s/ Thomas Harrison Thomas Harrison | Director | March 9, 2017 | ||
/s/ Lynn Carlson Schell Lynn Carlson Schell | Director | March 9, 2017 |
Page | |
Financial Statements as of December 31, 2016 and 2015, and for the years ended December 31, 2016, 2015 and 2014. | |
Report of Independent Registered Public Accounting Firm | |
Consolidated Balance Sheets | |
Consolidated Statements of Operations | |
Consolidated Statements of Equity | |
Consolidated Statements of Cash Flows | |
Notes to Consolidated Financial Statements |
December 31, | |||||||
2016 | 2015 | ||||||
ASSETS | |||||||
Cash and cash equivalents — Note 1 | $ | 42,612 | $ | 50,203 | |||
Restricted cash — Note 1 | — | 504 | |||||
Receivables | 9,538 | 14,838 | |||||
Escrow proceeds receivable | 85 | 3,041 | |||||
Real Estate Inventories - Note 6 | 1,771,998 | 1,675,106 | |||||
Investment in unconsolidated joint ventures - Note 4 | 7,282 | 5,413 | |||||
Goodwill — Note 7 | 66,902 | 66,902 | |||||
Intangibles, net of accumulated amortization of $4,640 as of December 31, 2016 and 2015 — Note 8 | 6,700 | 6,700 | |||||
Deferred income taxes, net valuation allowance of $0 at December 31, 2016 and 2015 — Note 12 | 75,751 | 79,726 | |||||
Other assets, net | 17,283 | 21,017 | |||||
Total assets | $ | 1,998,151 | $ | 1,923,450 | |||
LIABILITIES AND EQUITY | |||||||
Accounts payable | $ | 74,282 | $ | 75,881 | |||
Accrued expenses | 79,790 | 70,324 | |||||
Notes payable — Note 9 | 155,768 | 175,181 | |||||
Subordinated amortizing notes due December 1, 2017 — Note 9 | 7,225 | 14,066 | |||||
5 3/4% Senior Notes due April 15, 2019 — Note 9 | 148,826 | 148,295 | |||||
8 1/2% Senior Notes due November 15, 2020 — Note 9 | 422,817 | 422,896 | |||||
7% Senior Notes due August 15, 2022 — Note 9 | 346,014 | 345,338 | |||||
1,234,722 | 1,251,981 | ||||||
Commitments and contingencies — Note 16 | |||||||
Equity: | |||||||
William Lyon Homes stockholders’ equity — Note 14 | |||||||
Preferred stock, par value $0.01 per share; 10,000,000 authorized and no shares issued and outstanding at December 31, 2016 and 2015, respectively | — | — | |||||
Common stock, Class A, par value $0.01 per share; 150,000,000 shares authorized; 28,909,781 and 28,363,879 shares issued, 27,907,724 and 27,657,435 shares outstanding at December 31, 2016 and 2015, respectively | 290 | 284 | |||||
Common stock, Class B, par value $0.01 per share; 30,000,000 shares authorized; 3,813,884 shares issued and outstanding at December 31, 2016 and 2015, respectively | 38 | 38 | |||||
Additional paid-in capital | 419,099 | 413,810 | |||||
Retained earnings | 277,659 | 217,963 | |||||
Total William Lyon Homes stockholders’ equity | 697,086 | 632,095 | |||||
Noncontrolling interests — Note 3 | 66,343 | 39,374 | |||||
Total equity | 763,429 | 671,469 | |||||
Total liabilities and equity | $ | 1,998,151 | $ | 1,923,450 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Operating revenue | |||||||||||
Home sales | $ | 1,402,203 | $ | 1,078,928 | $ | 857,025 | |||||
Construction services — Note 1 | 3,837 | 25,124 | 37,728 | ||||||||
1,406,040 | 1,104,052 | 894,753 | |||||||||
Operating costs | |||||||||||
Cost of sales — homes | (1,162,337 | ) | (878,995 | ) | (677,531 | ) | |||||
Construction services — Note 1 | (3,485 | ) | (21,181 | ) | (30,700 | ) | |||||
Sales and marketing | (72,509 | ) | (61,539 | ) | (45,903 | ) | |||||
General and administrative | (73,398 | ) | (59,161 | ) | (54,626 | ) | |||||
Transaction expenses | — | — | (5,832 | ) | |||||||
Amortization of intangible assets — Note 8 | — | (957 | ) | (1,814 | ) | ||||||
Other | (343 | ) | (1,972 | ) | (2,874 | ) | |||||
(1,312,072 | ) | (1,023,805 | ) | (819,280 | ) | ||||||
Operating income | 93,968 | 80,247 | 75,473 | ||||||||
Equity in income of unconsolidated joint ventures | 5,606 | 3,239 | 555 | ||||||||
Other income, net | 3,243 | 3,581 | 2,295 | ||||||||
Income before provision for income taxes | 102,817 | 87,067 | 78,323 | ||||||||
Provision for income taxes — Note 12 | (34,850 | ) | (26,806 | ) | (23,797 | ) | |||||
Net income | 67,967 | 60,261 | 54,526 | ||||||||
Less: Net income attributable to noncontrolling interests | (8,271 | ) | (2,925 | ) | (9,901 | ) | |||||
Net income available to common stockholders | 59,696 | 57,336 | 44,625 | ||||||||
Income per common share: | |||||||||||
Basic | $ | 1.62 | $ | 1.57 | $ | 1.41 | |||||
Diluted | $ | 1.55 | $ | 1.48 | $ | 1.34 | |||||
Weighted average common shares outstanding: | |||||||||||
Basic | 36,764,799 | 36,546,227 | 31,753,110 | ||||||||
Diluted | 38,474,900 | 38,767,556 | 33,236,343 |
William Lyon Homes Stockholders | Non- Controlling Interest | Total | ||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Retained Earnings | ||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||
Balance — January 1, 2014 | 31,436 | $ | 314 | $ | 311,863 | $ | 116,002 | $ | 22,615 | $ | 450,794 | |||||||||||
Net income | — | — | — | 44,625 | 9,901 | 54,526 | ||||||||||||||||
Cash contributions from members of consolidated entities | — | — | — | — | 22,041 | 22,041 | ||||||||||||||||
Cash distributions to members of consolidated entities | — | — | — | — | (27,326 | ) | (27,326 | ) | ||||||||||||||
Exercise of stock options | 158 | 1 | 284 | — | — | 285 | ||||||||||||||||
Offering costs related to secondary sale of common stock | — | — | (105 | ) | — | — | (105 | ) | ||||||||||||||
Shares remitted to Company to satisfy employee personal income tax liabilities resulting from share based compensation plans | (99 | ) | — | (1,774 | ) | — | — | (1,774 | ) | |||||||||||||
Stock based compensation | 392 | 4 | 6,110 | — | — | 6,114 | ||||||||||||||||
Excess income tax benefit from stock based awards | — | — | 1,866 | — | — | 1,866 | ||||||||||||||||
Issuance of TEUs net of offering costs | — | — | 90,725 | — | — | 90,725 | ||||||||||||||||
Balance — December 31, 2014 | 31,887 | $ | 319 | $ | 408,969 | $ | 160,627 | $ | 27,231 | 597,146 | ||||||||||||
Net income | — | — | — | 57,336 | 2,925 | 60,261 | ||||||||||||||||
Cash contributions from members of consolidated entities | — | — | — | — | 19,850 | 19,850 | ||||||||||||||||
Cash distributions to members of consolidated entities | — | — | — | — | (10,632 | ) | (10,632 | ) | ||||||||||||||
Exercise of stock options | 48 | — | 106 | — | — | 106 | ||||||||||||||||
Shares remitted to Company to satisfy employee personal income tax liabilities resulting from share based compensation plans | (88 | ) | (1 | ) | (1,831 | ) | — | — | (1,832 | ) | ||||||||||||
Stock based compensation | 331 | 4 | 6,566 | — | — | 6,570 | ||||||||||||||||
Balance - December 31, 2015 | 32,178 | $ | 322 | $ | 413,810 | $ | 217,963 | $ | 39,374 | 671,469 | ||||||||||||
Net income | 59,696 | 8,271 | 67,967 | |||||||||||||||||||
Cash contributions from members of consolidated entities | 38,334 | 38,334 | ||||||||||||||||||||
Cash distributions to members of consolidated entities | (19,636 | ) | (19,636 | ) | ||||||||||||||||||
Shares remitted to Company to satisfy employee personal income tax liabilities resulting from share based compensation plans | (82 | ) | (1 | ) | (941 | ) | (942 | ) | ||||||||||||||
Stock based compensation | 628 | 7 | 6,412 | 6,419 | ||||||||||||||||||
Reversal of excess income tax benefit from stock based awards | (182 | ) | (182 | ) | ||||||||||||||||||
Balance - December 31, 2016 | 32,724 | $ | 328 | $ | 419,099 | $ | 277,659 | $ | 66,343 | 763,429 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Operating activities: | |||||||||||
Net income | $ | 67,967 | $ | 60,261 | $ | 54,526 | |||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||
Depreciation and amortization | 2,006 | 2,663 | 2,874 | ||||||||
Stock based compensation expense | 6,419 | 6,570 | 6,114 | ||||||||
Equity in income of unconsolidated joint ventures | (5,606 | ) | (3,239 | ) | (555 | ) | |||||
Distributions from unconsolidated joint ventures | 3,725 | 1,075 | 353 | ||||||||
Net change in deferred income taxes | 3,975 | 8,313 | 7,812 | ||||||||
Net changes in operating assets and liabilities, net of impact of Acquisition of Polygon Northwest Homes: | |||||||||||
Restricted cash | 504 | — | 350 | ||||||||
Receivables | (876 | ) | 6,663 | (4,554 | ) | ||||||
Escrow proceeds receivable | 2,956 | (126 | ) | 1,465 | |||||||
Real estate inventories — owned | (69,598 | ) | (264,868 | ) | (277,997 | ) | |||||
Real estate inventories — not owned | — | — | 12,960 | ||||||||
Other assets, net | 2,367 | 758 | (5,588 | ) | |||||||
Accounts payable | (1,599 | ) | 24,067 | 34,103 | |||||||
Accrued expenses | 9,466 | (15,045 | ) | 21,290 | |||||||
Liabilities from real estate inventories not owned | — | — | (12,960 | ) | |||||||
Net cash provided by (used in) operating activities | 21,706 | (172,908 | ) | (159,807 | ) | ||||||
Investing activities: | |||||||||||
Investment in and advances to unconsolidated joint ventures | — | (1,000 | ) | (500 | ) | ||||||
Cash paid for acquisitions, net | — | — | (492,418 | ) | |||||||
Proceeds from repayment of notes receivable | 6,188 | — | — | ||||||||
Purchases of property and equipment | (1,029 | ) | (4,800 | ) | (2,078 | ) | |||||
Net cash provided by (used in) investing activities | 5,159 | (5,800 | ) | (494,996 | ) |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Financing activities: | |||||||||||
Proceeds from borrowings on notes payable | 139,783 | 119,663 | 95,227 | ||||||||
Principal payments on notes payable | (147,887 | ) | (58,217 | ) | (96,465 | ) | |||||
Proceeds from issuance of 5 3/4% Senior Notes | — | — | 150,000 | ||||||||
Proceeds from issuance of 7% Senior Notes | — | 51,000 | 300,000 | ||||||||
Proceeds from issuance of bridge loan | — | — | 120,000 | ||||||||
Payments on bridge loan | — | — | (120,000 | ) | |||||||
Proceeds from borrowings on revolver | 258,000 | 229,000 | 20,000 | ||||||||
Payments on revolver | (294,000 | ) | (164,000 | ) | (20,000 | ) | |||||
Issuance of TEUs - Purchase Contracts | — | — | 94,284 | ||||||||
Offering costs related to TEUs | — | — | (3,830 | ) | |||||||
Issuance of TEUs - Amortizing notes | — | — | 20,717 | ||||||||
Principal payments on subordinated amortizing notes | (6,841 | ) | (6,651 | ) | — | ||||||
Proceeds from stock options exercised | — | 106 | 285 | ||||||||
Offering costs related to issuance of common stock | — | — | (105 | ) | |||||||
Purchase of common stock | (942 | ) | (1,832 | ) | (1,774 | ) | |||||
Excess income tax benefit from stock based awards | (182 | ) | — | 1,866 | |||||||
Payment of deferred loan costs | (1,085 | ) | (2,147 | ) | (19,018 | ) | |||||
Cash contributions from members of consolidated entities | 38,334 | 19,850 | 22,041 | ||||||||
Cash distributions to members of consolidated entities | (19,636 | ) | (10,632 | ) | (27,326 | ) | |||||
Net cash (used in) provided by financing activities | (34,456 | ) | 176,140 | 535,902 | |||||||
Net decrease in cash and cash equivalents | (7,591 | ) | (2,568 | ) | (118,901 | ) | |||||
Cash and cash equivalents — beginning of period | 50,203 | 52,771 | 171,672 | ||||||||
Cash and cash equivalents — end of period | $ | 42,612 | $ | 50,203 | $ | 52,771 | |||||
Supplemental disclosures: | |||||||||||
Cash paid for taxes | $ | 16,540 | $ | 24,955 | $ | 25,392 | |||||
Supplemental disclosures of non-cash investing and financing activities: | |||||||||||
Notes payable issued in conjunction with land acquisitions | $ | 24,692 | $ | — | $ | 2,413 | |||||
Liabilities assumed as part of cash acquisition of Polygon Northwest Homes | $ | — | $ | — | $ | 4,574 |
Year Ended December 31, 2016 | Year Ended December 31, 2015 | Year Ended December 31, 2014 | ||||||||||
Warranty liability, beginning of period | $ | 18,117 | $ | 18,155 | $ | 14,935 | ||||||
Warranty provision during period | 8,237 | 7,423 | 9,601 | |||||||||
Warranty payments during period | (12,334 | ) | (8,555 | ) | (7,409 | ) | ||||||
Warranty charges related to construction services projects | 153 | 1,094 | 1,028 | |||||||||
Warranty liability, end of period | $ | 14,173 | $ | 18,117 | $ | 18,155 |
Year Ended December 31, 2016 | Year Ended December 31, 2015 | Year Ended December 31, 2014 | |||||||||
Interest incurred | $ | 83,218 | $ | 76,221 | $ | 65,560 | |||||
Less: Interest capitalized | (83,218 | ) | (76,221 | ) | (65,560 | ) | |||||
Interest expense, net of amounts capitalized | $ | — | $ | — | $ | — | |||||
Cash paid for interest | $ | 79,734 | $ | 72,254 | $ | 46,779 |
Purchase consideration | $ | 552,252 | |
Net proceeds received from Polygon inventory involved in land banking transactions | (59,834 | ) | |
$ | 492,418 |
Assets Acquired | |||||
Real estate inventories | $ | 435,054 | |||
Goodwill | 52,693 | ||||
Intangible asset - brand name | 6,700 | ||||
Joint venture in mortgage business | 2,000 | ||||
Other | 545 | ||||
Total Assets | $ | 496,992 | |||
Liabilities Assumed | |||||
Accounts payable | $ | 603 | |||
Accrued expenses | 3,971 | ||||
Total liabilities | 4,574 | ||||
Net assets acquired | $ | 492,418 |
Year Ended December 31, 2014 | ||||
Operating revenues | $ | 1,048.6 | ||
Net income available to common stockholders | $ | 53.4 | ||
Income per share - basic | $ | 1.68 | ||
Income per share - diluted | $ | 1.61 |
Year Ended December 31, 2016 | Year Ended December 31, 2015 | Year Ended December 31, 2014 | |||||||||
Revenues | $ | 21,156 | $ | 12,314 | $ | 2,015 | |||||
Cost of sales | (10,407 | ) | (5,842 | ) | (906 | ) | |||||
Income of unconsolidated joint ventures | $ | 10,749 | $ | 6,472 | $ | 1,109 |
December 31, | ||||||||||
2016 | 2015 | |||||||||
Assets | ||||||||||
Cash | $ | 10,208 | $ | 6,340 | ||||||
Loans held for sale | 18,791 | 29,312 | ||||||||
Accounts receivable | 764 | 309 | ||||||||
Other assets | 56 | 390 | ||||||||
Total Assets | $ | 29,819 | $ | 36,351 | ||||||
Liabilities and Equity | ||||||||||
Accounts payable | $ | 694 | $ | 651 | ||||||
Accrued expenses | 1,026 | 774 | ||||||||
Credit lines payable | 17,748 | 27,350 | ||||||||
Other liabilities | 17 | 515 | ||||||||
Members equity | 10,334 | 7,061 | ||||||||
Total Liabilities and Equity | $ | 29,819 | $ | 36,351 |
Year Ended December 31, 2016 | Year Ended December 31, 2015 | Year Ended December 31, 2014 | |||||||||
Operating revenue: | |||||||||||
California (1) | $ | 494,189 | $ | 401,934 | $ | 534,982 | |||||
Arizona | 125,951 | 69,510 | 59,195 | ||||||||
Nevada | 191,711 | 130,845 | 121,815 | ||||||||
Colorado | 128,530 | 107,014 | 46,460 | ||||||||
Washington | 154,600 | 181,258 | 65,886 | ||||||||
Oregon | 311,059 | 213,491 | 66,415 | ||||||||
Total operating revenue | $ | 1,406,040 | $ | 1,104,052 | $ | 894,753 |
Year Ended December 31, 2016 | Year Ended December 31, 2015 | Year Ended December 31, 2014 | |||||||||
Income before (provision) benefit for income taxes: | |||||||||||
California | $ | 47,692 | $ | 46,752 | $ | 84,379 | |||||
Arizona | 12,004 | 5,743 | 6,112 | ||||||||
Nevada | 19,182 | 13,022 | 9,925 | ||||||||
Colorado | 6,978 | 3,291 | (271 | ) | |||||||
Washington | 9,528 | 18,652 | 6,483 | ||||||||
Oregon | 41,617 | 24,787 | 5,498 | ||||||||
Corporate | (34,184 | ) | (25,180 | ) | (33,803 | ) | |||||
Income before provision from income taxes | $ | 102,817 | $ | 87,067 | $ | 78,323 |
December 31, | December 31, | ||||||
2016 | 2015 | ||||||
Total assets: | |||||||
California | $ | 716,955 | $ | 721,066 | |||
Arizona | 191,581 | 197,828 | |||||
Nevada | 189,248 | 183,019 | |||||
Colorado | 124,580 | 118,307 | |||||
Washington | 343,973 | 249,615 | |||||
Oregon | 238,766 | 228,183 | |||||
Corporate (1) | 193,048 | 225,432 | |||||
Total assets | $ | 1,998,151 | $ | 1,923,450 |
(1) | Comprised primarily of cash and cash equivalents, receivables, deferred income taxes, and other assets. |
December 31, | |||||||
2016 | 2015 | ||||||
Real estate inventories: | |||||||
Land deposits | $ | 50,429 | $ | 61,514 | |||
Land and land under development | 1,069,001 | 1,013,650 | |||||
Homes completed and under construction | 545,310 | 495,966 | |||||
Model homes | 107,258 | 103,976 | |||||
Total | $ | 1,771,998 | $ | 1,675,106 |
December 31, | |||||||
2016 | 2015 | ||||||
California | $ | 6,801 | $ | 6,801 | |||
Arizona | 5,951 | 5,951 | |||||
Nevada | 1,457 | 1,457 | |||||
Colorado | — | — | |||||
Washington | 31,200 | 31,200 | |||||
Oregon | 21,493 | 21,493 | |||||
Total | $ | 66,902 | $ | 66,902 |
December 31, 2016 | December 31, 2015 | ||||||||||||||||||||||
Carrying Value | Accumulated Amortization | Net Carrying Amount | Carrying Value | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Brand Name - Polygon Northwest Homes | $ | 6,700 | $ | — | $ | 6,700 | $ | 6,700 | $ | — | $ | 6,700 |
December 31, | |||||||
2016 | 2015 | ||||||
Notes payable | |||||||
Revolving line of credit | $ | 29,000 | $ | 65,000 | |||
Construction notes payable | 102,076 | 110,181 | |||||
Seller financing | 24,692 | — | |||||
Total notes payable | $ | 155,768 | $ | 175,181 | |||
Subordinated amortizing notes | 7,225 | 14,066 | |||||
Senior notes | |||||||
5 3/4% Senior Notes due April 15, 2019 | 148,826 | 148,295 | |||||
8 1/2% Senior Notes due November 15, 2020 | 422,817 | 422,896 | |||||
7% Senior Notes due August 15, 2022 | 346,014 | 345,338 | |||||
Total Debt | $ | 1,080,650 | $ | 1,105,776 |
Year Ended December 31, | |||
2017 | $ | 50,805 | |
2018 | 62,785 | ||
2019 | 199,403 | ||
2020 | 425,000 | ||
2021 | — | ||
Thereafter | 350,000 | ||
$ | 1,087,993 |
Issuance Date | Facility Size | Outstanding | Maturity | Current Rate | ||||||||||
March, 2016 | $ | 33.4 | $ | 17.4 | September, 2018 | 3.69 | % | (1) | ||||||
January, 2016 | 35.0 | 21.5 | February, 2019 | 4.02 | % | (2) | ||||||||
November, 2015 | 42.5 | 20.6 | November, 2017 | 4.75 | % | (1) | ||||||||
August, 2015 (4) | 14.2 | — | (5) | August, 2017 | 4.50 | % | (1) | |||||||
August, 2015 (4) | 37.5 | — | (5) | August, 2017 | 4.75 | % | (1) | |||||||
July, 2015 | 22.5 | 13.8 | July, 2018 | 4.25 | % | (3) | ||||||||
April, 2015 | 18.5 | 2.3 | October, 2017 | 4.25 | % | (3) | ||||||||
November, 2014 | 24.0 | 7.2 | November, 2017 | 4.25 | % | (3) | ||||||||
November, 2014 | 22.0 | 9.4 | November, 2017 | 4.25 | % | (3) | ||||||||
March, 2014 | 26.0 | 9.9 | April, 2018 | 3.71 | % | (1) | ||||||||
$ | 275.6 | $ | 102.1 |
• | a prepaid stock purchase contract (a “purchase contract”); and |
• | a senior subordinated amortizing note (an “amortizing note”). |
Year | Percentage | |
April 15, 2016 | 104.313 | % |
October 15, 2016 | 102.875 | % |
April 15, 2017 | 101.438 | % |
April 15, 2018 and thereafter | 100.000 | % |
Year | Percentage | |
2016 | 104.250 | % |
2017 | 102.125 | % |
2018 and thereafter | 100.000 | % |
Year | Percentage | |
August 15, 2017 | 103.500 | % |
August 15, 2018 | 101.750 | % |
August 15, 2019 and thereafter | 100.000 | % |
Unconsolidated | |||||||||||||||||||||||
Delaware Lyon | California Lyon | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminating Entries | Consolidated Company | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 36,204 | $ | 272 | $ | 6,136 | $ | — | $ | 42,612 | |||||||||||
Receivables | — | 2,989 | 3,303 | 3,246 | — | 9,538 | |||||||||||||||||
Escrow proceeds receivable | — | 85 | — | — | — | 85 | |||||||||||||||||
Real estate inventories | — | 910,594 | 645,341 | 216,063 | — | 1,771,998 | |||||||||||||||||
Invest in unconsolidated joint ventures | — | 7,132 | 150 | — | — | 7,282 | |||||||||||||||||
Goodwill | — | 14,209 | 52,693 | — | — | 66,902 | |||||||||||||||||
Intangibles, net | — | — | 6,700 | — | — | 6,700 | |||||||||||||||||
Deferred income taxes, net | — | 75,751 | — | — | — | 75,751 | |||||||||||||||||
Other assets, net | — | 15,779 | 1,089 | 415 | — | 17,283 | |||||||||||||||||
Investments in subsidiaries | 697,086 | (23,736 | ) | (573,650 | ) | — | (99,700 | ) | — | ||||||||||||||
Intercompany receivables | — | — | 252,860 | — | (252,860 | ) | — | ||||||||||||||||
Total assets | $ | 697,086 | $ | 1,039,007 | $ | 388,758 | $ | 225,860 | $ | (352,560 | ) | $ | 1,998,151 | ||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||||
Accounts payable | $ | — | $ | 52,380 | $ | 16,416 | $ | 5,486 | $ | — | $ | 74,282 | |||||||||||
Accrued expenses | — | 75,058 | 4,634 | 98 | — | 79,790 | |||||||||||||||||
Notes payable | — | 50,713 | 2,979 | 102,076 | — | 155,768 | |||||||||||||||||
Subordinated Amortizing Notes | — | 7,225 | — | — | — | 7,225 | |||||||||||||||||
5 3/4% Senior Notes | — | 148,826 | — | — | — | 148,826 | |||||||||||||||||
8 1/2% Senior Notes | — | 422,817 | — | — | — | 422,817 | |||||||||||||||||
7% Senior Notes | — | 346,014 | — | — | — | 346,014 | |||||||||||||||||
Intercompany payables | — | 177,267 | — | 75,593 | (252,860 | ) | — | ||||||||||||||||
Total liabilities | — | 1,280,300 | 24,029 | 183,253 | (252,860 | ) | 1,234,722 | ||||||||||||||||
Equity | |||||||||||||||||||||||
William Lyon Homes stockholders’ equity | 697,086 | (241,291 | ) | 364,727 | (23,736 | ) | (99,700 | ) | 697,086 | ||||||||||||||
Noncontrolling interests | — | — | — | 66,343 | — | 66,343 | |||||||||||||||||
Total liabilities and equity | $ | 697,086 | $ | 1,039,009 | $ | 388,756 | $ | 225,860 | $ | (352,560 | ) | $ | 1,998,151 |
Unconsolidated | |||||||||||||||||||||||
Delaware Lyon | California Lyon | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminating Entries | Consolidated Company | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 44,331 | $ | 2,724 | $ | 3,148 | $ | — | $ | 50,203 | |||||||||||
Restricted cash | — | 504 | — | — | — | 504 | |||||||||||||||||
Receivables | — | 8,986 | 937 | 4,915 | — | 14,838 | |||||||||||||||||
Escrow proceeds receivable | — | 2,020 | 1,021 | — | — | 3,041 | |||||||||||||||||
Real estate inventories | — | 922,990 | 589,762 | 162,354 | — | 1,675,106 | |||||||||||||||||
Invest in unconsolidated joint ventures | — | 5,263 | 150 | — | — | 5,413 | |||||||||||||||||
Goodwill | — | 14,209 | 52,693 | — | — | 66,902 | |||||||||||||||||
Intangibles, net | — | — | 6,700 | — | — | 6,700 | |||||||||||||||||
Deferred income taxes, net | — | 79,726 | — | — | — | 79,726 | |||||||||||||||||
Other assets, net | — | 18,981 | 1,737 | 299 | — | 21,017 | |||||||||||||||||
Investments in subsidiaries | 632,095 | (34,522 | ) | (561,546 | ) | — | (36,027 | ) | — | ||||||||||||||
Intercompany receivables | — | — | 239,248 | — | (239,248 | ) | — | ||||||||||||||||
Total assets | $ | 632,095 | $ | 1,062,488 | $ | 333,426 | $ | 170,716 | $ | (275,275 | ) | $ | 1,923,450 | ||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||||
Accounts payable | $ | — | $ | 45,065 | $ | 27,807 | $ | 3,009 | $ | — | $ | 75,881 | |||||||||||
Accrued expenses | — | 62,167 | 8,059 | 98 | — | 70,324 | |||||||||||||||||
Notes payable | — | 80,915 | — | 94,266 | — | 175,181 | |||||||||||||||||
Subordinated Amortizing Notes | — | 14,066 | — | — | — | 14,066 | |||||||||||||||||
5 3/4% Senior Notes | — | 148,295 | — | — | — | 148,295 | |||||||||||||||||
8 1/2% Senior Notes | — | 422,896 | — | — | — | 422,896 | |||||||||||||||||
7% Senior Notes | — | 345,338 | — | — | — | 345,338 | |||||||||||||||||
Intercompany payables | — | 170,757 | — | 68,491 | (239,248 | ) | — | ||||||||||||||||
Total liabilities | — | 1,289,499 | 35,866 | 165,864 | (239,248 | ) | 1,251,981 | ||||||||||||||||
Equity | |||||||||||||||||||||||
William Lyon Homes stockholders’ equity | 632,095 | (227,011 | ) | 297,560 | (34,522 | ) | (36,027 | ) | 632,095 | ||||||||||||||
Noncontrolling interests | — | — | — | 39,374 | — | 39,374 | |||||||||||||||||
Total liabilities and equity | $ | 632,095 | $ | 1,062,488 | $ | 333,426 | $ | 170,716 | $ | (275,275 | ) | $ | 1,923,450 |
Unconsolidated | |||||||||||||||||||||||
Delaware Lyon | California Lyon | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminating Entries | Consolidated Company | ||||||||||||||||||
Operating revenue | |||||||||||||||||||||||
Sales | $ | — | $ | 573,191 | $ | 680,138 | $ | 148,874 | $ | — | $ | 1,402,203 | |||||||||||
Construction services | — | 3,837 | — | — | — | 3,837 | |||||||||||||||||
Management fees | — | (4,362 | ) | — | — | 4,362 | — | ||||||||||||||||
— | 572,666 | 680,138 | 148,874 | 4,362 | 1,406,040 | ||||||||||||||||||
Operating costs | |||||||||||||||||||||||
Cost of sales | — | (462,153 | ) | (564,596 | ) | (131,226 | ) | (4,362 | ) | (1,162,337 | ) | ||||||||||||
Construction services | — | (3,485 | ) | — | — | — | (3,485 | ) | |||||||||||||||
Sales and marketing | — | (27,329 | ) | (36,170 | ) | (9,010 | ) | — | (72,509 | ) | |||||||||||||
General and administrative | — | (60,141 | ) | (13,256 | ) | (1 | ) | — | (73,398 | ) | |||||||||||||
Other | — | (442 | ) | 100 | (1 | ) | — | (343 | ) | ||||||||||||||
— | (553,550 | ) | (613,922 | ) | (140,238 | ) | (4,362 | ) | (1,312,072 | ) | |||||||||||||
Income (loss) from subsidiaries | 59,696 | 8,331 | — | — | (68,027 | ) | — | ||||||||||||||||
Operating income | 59,696 | 27,447 | 66,216 | 8,636 | (68,027 | ) | 93,968 | ||||||||||||||||
Equity in income of unconsolidated joint ventures | — | 4,369 | 1,237 | — | — | 5,606 | |||||||||||||||||
Other income (expense), net | — | 4,640 | (34 | ) | (1,363 | ) | — | 3,243 | |||||||||||||||
Income (loss) before provision for income taxes | 59,696 | 36,456 | 67,419 | 7,273 | (68,027 | ) | 102,817 | ||||||||||||||||
Provision for income taxes | (34,850 | ) | — | — | — | (34,850 | ) | ||||||||||||||||
Net income (loss) | 59,696 | 1,606 | 67,419 | 7,273 | (68,027 | ) | 67,967 | ||||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (8,271 | ) | — | (8,271 | ) | |||||||||||||||
Net income (loss) available to common stockholders | $ | 59,696 | $ | 1,606 | $ | 67,419 | $ | (998 | ) | $ | (68,027 | ) | $ | 59,696 |
Unconsolidated | |||||||||||||||||||||||
Delaware Lyon | California Lyon | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminating Entries | Consolidated Company | ||||||||||||||||||
Operating revenue | |||||||||||||||||||||||
Sales | $ | — | $ | 459,990 | $ | 568,774 | $ | 50,164 | $ | — | $ | 1,078,928 | |||||||||||
Construction services | — | 25,124 | — | — | — | 25,124 | |||||||||||||||||
Management fees | — | (1,506 | ) | — | — | 1,506 | — | ||||||||||||||||
— | 483,608 | 568,774 | 50,164 | 1,506 | 1,104,052 | ||||||||||||||||||
Operating costs | |||||||||||||||||||||||
Cost of sales | — | (358,793 | ) | (475,043 | ) | (43,653 | ) | (1,506 | ) | (878,995 | ) | ||||||||||||
Construction services | — | (21,181 | ) | — | — | — | (21,181 | ) | |||||||||||||||
Sales and marketing | — | (26,626 | ) | (31,231 | ) | (3,682 | ) | — | (61,539 | ) | |||||||||||||
General and administrative | — | (47,385 | ) | (11,776 | ) | — | — | (59,161 | ) | ||||||||||||||
Amortization of intangible assets | — | (957 | ) | — | — | — | (957 | ) | |||||||||||||||
Other | — | (3,477 | ) | 1,505 | — | — | (1,972 | ) | |||||||||||||||
— | (458,419 | ) | (516,545 | ) | (47,335 | ) | (1,506 | ) | (1,023,805 | ) | |||||||||||||
Income (loss) from subsidiaries | 57,336 | (2,395 | ) | — | — | (54,941 | ) | — | |||||||||||||||
Operating income | 57,336 | 22,794 | 52,229 | 2,829 | (54,941 | ) | 80,247 | ||||||||||||||||
Equity in income of unconsolidated joint ventures | — | 1,912 | 1,327 | — | — | 3,239 | |||||||||||||||||
Other income (expense), net | — | 7,911 | 4,793 | (9,123 | ) | — | 3,581 | ||||||||||||||||
Income (loss) before provision for income taxes | 57,336 | 32,617 | 58,349 | (6,294 | ) | (54,941 | ) | 87,067 | |||||||||||||||
Provision for income taxes | — | (26,806 | ) | — | — | — | (26,806 | ) | |||||||||||||||
Net income (loss) | 57,336 | 5,811 | 58,349 | (6,294 | ) | (54,941 | ) | 60,261 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (2,925 | ) | — | (2,925 | ) | |||||||||||||||
Net income (loss) available to common stockholders | $ | 57,336 | $ | 5,811 | $ | 58,349 | $ | (9,219 | ) | $ | (54,941 | ) | $ | 57,336 |
Unconsolidated | |||||||||||||||||||||||
Delaware Lyon | California Lyon | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminating Entries | Consolidated Company | ||||||||||||||||||
Operating revenue | |||||||||||||||||||||||
Sales | $ | — | $ | 523,064 | $ | 236,245 | $ | 97,716 | $ | — | $ | 857,025 | |||||||||||
Construction services | — | 37,728 | — | — | — | 37,728 | |||||||||||||||||
Management fees | — | (2,926 | ) | — | — | 2,926 | — | ||||||||||||||||
— | 557,866 | 236,245 | 97,716 | 2,926 | 894,753 | ||||||||||||||||||
Operating costs | |||||||||||||||||||||||
Cost of sales | — | (399,183 | ) | (196,773 | ) | (78,649 | ) | (2,926 | ) | (677,531 | ) | ||||||||||||
Construction services | — | (30,700 | ) | — | — | — | (30,700 | ) | |||||||||||||||
Sales and marketing | — | (27,418 | ) | (14,186 | ) | (4,299 | ) | — | (45,903 | ) | |||||||||||||
General and administrative | — | (47,353 | ) | (7,271 | ) | (2 | ) | — | (54,626 | ) | |||||||||||||
Transaction expenses | — | (5,832 | ) | — | — | — | (5,832 | ) | |||||||||||||||
Amortization of intangible assets | — | (1,814 | ) | — | — | — | (1,814 | ) | |||||||||||||||
Other | — | (3,685 | ) | 825 | (14 | ) | — | (2,874 | ) | ||||||||||||||
— | (515,985 | ) | (217,405 | ) | (82,964 | ) | (2,926 | ) | (819,280 | ) | |||||||||||||
Income from subsidiaries | 44,625 | 11,575 | — | — | (56,200 | ) | — | ||||||||||||||||
Operating income | 44,625 | 53,456 | 18,840 | 14,752 | (56,200 | ) | 75,473 | ||||||||||||||||
Income from unconsolidated joint ventures | — | — | 555 | — | — | 555 | |||||||||||||||||
Other income (expense), net | — | 3,280 | (23 | ) | (962 | ) | — | 2,295 | |||||||||||||||
Income before provision for income taxes | 44,625 | 56,736 | 19,372 | 13,790 | (56,200 | ) | 78,323 | ||||||||||||||||
Provision for income taxes | — | (23,797 | ) | — | — | — | (23,797 | ) | |||||||||||||||
Net income | 44,625 | 32,939 | 19,372 | 13,790 | (56,200 | ) | 54,526 | ||||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (9,901 | ) | — | (9,901 | ) | |||||||||||||||
Net income available to common stockholders | $ | 44,625 | $ | 32,939 | $ | 19,372 | $ | 3,889 | $ | (56,200 | ) | $ | 44,625 |
Unconsolidated | |||||||||||||||||||||||
Delaware Lyon | California Lyon | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminating Entries | Consolidated Company | ||||||||||||||||||
Operating activities | |||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (5,295 | ) | $ | 64,780 | $ | (778 | ) | $ | (42,296 | ) | $ | 5,295 | $ | 21,706 | ||||||||
Investing activities | |||||||||||||||||||||||
Proceeds from repayment of notes receivable | 6,188 | — | — | — | 6,188 | ||||||||||||||||||
Purchases of property and equipment | — | (1,004 | ) | 85 | (110 | ) | — | (1,029 | ) | ||||||||||||||
Investments in subsidiaries | — | (2,455 | ) | 12,104 | — | (9,649 | ) | — | |||||||||||||||
Net cash provided by (used in) investing activities | — | 2,729 | 12,189 | (110 | ) | (9,649 | ) | 5,159 | |||||||||||||||
Financing activities | |||||||||||||||||||||||
Proceeds from borrowings on notes payable | — | 2,211 | — | 137,572 | — | 139,783 | |||||||||||||||||
Principal payments on notes payable | — | (18,125 | ) | — | (129,762 | ) | — | (147,887 | ) | ||||||||||||||
Proceeds from borrowings on revolver | — | 258,000 | — | — | — | 258,000 | |||||||||||||||||
Payments on revolver | — | (294,000 | ) | — | — | — | (294,000 | ) | |||||||||||||||
Principle payments on Subordinated amortizing notes | — | (6,841 | ) | — | — | — | (6,841 | ) | |||||||||||||||
Purchase of common stock | — | (942 | ) | — | — | — | (942 | ) | |||||||||||||||
Excess income tax benefit from stock based awards | — | (182 | ) | — | — | — | (182 | ) | |||||||||||||||
Payments of deferred loan costs | — | (1,085 | ) | — | — | — | (1,085 | ) | |||||||||||||||
Noncontrolling interest contributions | — | — | — | 38,334 | — | 38,334 | |||||||||||||||||
Noncontrolling interest distributions | — | — | — | (19,636 | ) | — | (19,636 | ) | |||||||||||||||
Advances to affiliates | — | — | (252 | ) | 11,784 | (11,532 | ) | — | |||||||||||||||
Intercompany receivables/payables | 5,295 | (14,672 | ) | (13,611 | ) | 7,102 | 15,886 | — | |||||||||||||||
Net cash provided by (used in) financing activities | 5,295 | (75,636 | ) | (13,863 | ) | 45,394 | 4,354 | (34,456 | ) | ||||||||||||||
Net (decrease) increase in cash and cash equivalents | — | (8,127 | ) | (2,452 | ) | 2,988 | — | (7,591 | ) | ||||||||||||||
Cash and cash equivalents at beginning of period | — | 44,331 | 2,724 | 3,148 | — | 50,203 | |||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 36,204 | $ | 272 | $ | 6,136 | $ | — | $ | 42,612 |
Unconsolidated | |||||||||||||||||||||||
Delaware Lyon | California Lyon | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminating Entries | Consolidated Company | ||||||||||||||||||
Operating activities | |||||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (4,844 | ) | $ | (123,099 | ) | $ | 26,398 | $ | (76,207 | ) | $ | 4,844 | $ | (172,908 | ) | |||||||
Investing activities | |||||||||||||||||||||||
Investment in and advances to joint ventures | — | (1,000 | ) | — | — | — | (1,000 | ) | |||||||||||||||
Purchases of property and equipment | — | (4,918 | ) | 89 | 29 | — | (4,800 | ) | |||||||||||||||
Investments in subsidiaries | — | (3,833 | ) | (12,584 | ) | — | 16,417 | — | |||||||||||||||
Net cash (used in) provided by investing activities | — | (9,751 | ) | (12,495 | ) | 29 | 16,417 | (5,800 | ) | ||||||||||||||
Financing activities | |||||||||||||||||||||||
Proceeds from borrowings on notes payable | — | 34,955 | — | 84,708 | — | 119,663 | |||||||||||||||||
Principal payments on notes payable | — | (28,924 | ) | (162 | ) | (29,131 | ) | — | (58,217 | ) | |||||||||||||
Proceeds from issuance of 7 % Senior Notes | — | 51,000 | — | — | — | 51,000 | |||||||||||||||||
Proceeds from borrowings on revolver | — | 229,000 | — | — | — | 229,000 | |||||||||||||||||
Payments on revolver | — | (164,000 | ) | — | — | — | (164,000 | ) | |||||||||||||||
Principle payments on Subordinated amortizing notes | — | (6,651 | ) | — | — | — | (6,651 | ) | |||||||||||||||
Proceeds from stock options exercised | — | 106 | — | — | — | 106 | |||||||||||||||||
Purchase of common stock | — | (1,832 | ) | — | — | — | (1,832 | ) | |||||||||||||||
Payments of deferred loan costs | (2,147 | ) | — | — | (2,147 | ) | |||||||||||||||||
Noncontrolling interest contributions | — | — | — | 19,850 | — | 19,850 | |||||||||||||||||
Noncontrolling interest distributions | — | — | — | (10,632 | ) | — | (10,632 | ) | |||||||||||||||
Advances to affiliates | — | — | (5,237 | ) | 10,658 | (5,421 | ) | — | |||||||||||||||
Intercompany receivables/payables | 4,844 | 17,212 | (6,353 | ) | 137 | (15,840 | ) | — | |||||||||||||||
Net cash provided by (used in) financing activities | 4,844 | 128,719 | (11,752 | ) | 75,590 | (21,261 | ) | 176,140 | |||||||||||||||
Net (decrease) increase in cash and cash equivalents | — | (4,131 | ) | 2,151 | (588 | ) | — | (2,568 | ) | ||||||||||||||
Cash and cash equivalents at beginning of period | — | 48,462 | 573 | 3,736 | — | 52,771 | |||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 44,331 | $ | 2,724 | $ | 3,148 | $ | — | $ | 50,203 |
Unconsolidated | |||||||||||||||||||||||
Delaware Lyon | California Lyon | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminating Entries | Consolidated Company | ||||||||||||||||||
Operating activities | |||||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (97,110 | ) | $ | 369,750 | $ | (510,453 | ) | $ | (19,104 | ) | $ | 97,110 | $ | (159,807 | ) | |||||||
Investing activities | |||||||||||||||||||||||
Investment in and advances to joint ventures | — | — | (500 | ) | — | — | (500 | ) | |||||||||||||||
Cash paid for acquisitions, net | — | (439,040 | ) | (53,378 | ) | — | — | (492,418 | ) | ||||||||||||||
Purchases of property and equipment | — | (1,826 | ) | (267 | ) | 15 | — | (2,078 | ) | ||||||||||||||
Investments in subsidiaries | — | 57,515 | 574,125 | — | (631,640 | ) | — | ||||||||||||||||
Net cash (used in) provided by investing activities | — | (383,351 | ) | 519,980 | 15 | (631,640 | ) | (494,996 | ) | ||||||||||||||
Financing activities | |||||||||||||||||||||||
Proceeds from borrowings on notes payable | — | — | — | 95,227 | — | 95,227 | |||||||||||||||||
Principal payments on notes payable | — | (11,898 | ) | (4,012 | ) | (80,555 | ) | — | (96,465 | ) | |||||||||||||
Proceeds from issuance of 5 3/4% Senior Notes | — | 150,000 | — | — | — | 150,000 | |||||||||||||||||
Proceeds from issuance of 7 % Senior Notes | — | 300,000 | — | — | — | 300,000 | |||||||||||||||||
Proceeds from issuance of bridge loan | — | 120,000 | — | — | — | 120,000 | |||||||||||||||||
Payments on bridge loan | — | (120,000 | ) | — | — | — | (120,000 | ) | |||||||||||||||
Proceeds from borrowings on revolver | — | 20,000 | — | — | — | 20,000 | |||||||||||||||||
Payments on revolver | — | (20,000 | ) | — | — | — | (20,000 | ) | |||||||||||||||
Issuance of TEUs - Purchase Contracts, net of offering costs | — | 94,284 | — | — | — | 94,284 | |||||||||||||||||
Offering costs related to issuance of TEUs | — | (3,830 | ) | — | — | — | (3,830 | ) | |||||||||||||||
Issuance of TEUs - Subordinated amortizing notes | — | 20,717 | — | — | — | 20,717 | |||||||||||||||||
Proceeds from stock options exercised | — | 285 | — | — | — | 285 | |||||||||||||||||
Offering costs related to issuance of common stock | — | (105 | ) | — | — | — | (105 | ) | |||||||||||||||
Purchase of common stock | — | (1,774 | ) | — | — | — | (1,774 | ) | |||||||||||||||
Excess income tax benefit from stock based awards | — | 1,866 | — | — | — | 1,866 | |||||||||||||||||
Payments of deferred loan costs | (19,018 | ) | — | — | (19,018 | ) | |||||||||||||||||
Noncontrolling interest contributions | — | — | — | 22,041 | — | 22,041 | |||||||||||||||||
Noncontrolling interest distributions | — | — | — | (27,326 | ) | — | (27,326 | ) | |||||||||||||||
Advances to affiliates | — | — | (99 | ) | (49,825 | ) | 49,924 | — | |||||||||||||||
Intercompany receivables/payables | 97,110 | (634,980 | ) | (4,871 | ) | 58,135 | 484,606 | — | |||||||||||||||
Net cash provided by (used in) financing activities | 97,110 | (104,453 | ) | (8,982 | ) | 17,697 | 534,530 | 535,902 | |||||||||||||||
Net (decrease) increase in cash and cash equivalents | — | (118,054 | ) | 545 | (1,392 | ) | — | (118,901 | ) | ||||||||||||||
Cash and cash equivalents at beginning of period | — | 166,516 | 28 | 5,128 | — | 171,672 | |||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 48,462 | $ | 573 | $ | 3,736 | $ | — | $ | 52,771 |
• | Notes Payable—The carrying amount is a reasonable estimate of fair value of the notes payable because market rates are unchanged and/or the outstanding balance is expected to be repaid within one year. |
• | Subordinated Amortizing Notes—The Subordinated amortizing notes are traded over the counter and their fair values were based upon quotes from industry sources. |
• | 5 3/4% Senior Notes—The 5 3/4% Senior Notes are traded over the counter and their fair value was based upon published quotes; |
• | 8 1/2% Senior Notes—The 8 1/2% Senior Notes are traded over the counter and their fair value was based upon published quotes; |
• | 7% Senior Notes—The 7% Senior Notes are traded over the counter and their fair value was based upon published quotes; |
December 31, 2016 | December 31, 2015 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Financial liabilities: | |||||||||||||||
Notes payable | $ | 155,768 | $ | 155,768 | $ | 175,181 | $ | 175,181 | |||||||
Subordinated amortizing notes | 7,225 | 7,478 | 14,066 | 12,122 | |||||||||||
5 3/4% Senior Notes due 2019 | 148,826 | 151,125 | 148,295 | 147,750 | |||||||||||
8 1/2% Senior Notes due 2020 | 422,817 | 444,125 | 422,896 | 449,438 | |||||||||||
7% Senior Notes due 2022 | 346,014 | 363,125 | 345,338 | 350,875 |
• | Level 1—quoted prices for identical assets or liabilities in active markets; |
• | Level 2—quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and |
• | Level 3—valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |
Year Ended December 31, | Year Ended December 31, | Year Ended December 31, | |||||||||
2016 | 2015 | 2014 | |||||||||
Current | |||||||||||
Federal | $ | (26,978 | ) | $ | (15,296 | ) | $ | (13,284 | ) | ||
State | (4,077 | ) | (3,350 | ) | (2,691 | ) | |||||
Deferred | |||||||||||
Federal | (1,395 | ) | (5,259 | ) | (4,748 | ) | |||||
State | (2,400 | ) | (2,901 | ) | (3,074 | ) | |||||
$ | (34,850 | ) | $ | (26,806 | ) | $ | (23,797 | ) |
Year Ended December 31, | Year Ended December 31, | Year Ended December 31, | |||||||||
2016 | 2015 | 2014 | |||||||||
Provision for federal income taxes at the statutory rate | $ | (35,986 | ) | $ | (30,473 | ) | $ | (27,413 | ) | ||
Increases/(decreases) in tax resulting from: | |||||||||||
Provision for state income taxes, net of federal income tax benefits | (4,210 | ) | (4,063 | ) | (3,784 | ) | |||||
Change in valuation allowance | — | 1,626 | 1,629 | ||||||||
Domestic production activities deduction | 2,481 | 2,087 | 1,228 | ||||||||
Nondeductible items-other | (58 | ) | (52 | ) | (84 | ) | |||||
Non-controlling interests | 2,895 | 1,024 | 3,465 | ||||||||
Change in RBIL estimate | — | 1,771 | — | ||||||||
Cancellation of indebtedness attribute reduction | — | — | (4 | ) | |||||||
Tax credits | 166 | 1,272 | 316 | ||||||||
Stock based compensation | 27 | — | — | ||||||||
Other, net | (165 | ) | 2 | 850 | |||||||
$ | (34,850 | ) | $ | (26,806 | ) | $ | (23,797 | ) |
December 31, | |||||||
2016 | 2015 | ||||||
Deferred tax assets | |||||||
Impairment and other reserves | $ | 53,806 | $ | 58,991 | |||
Compensation deductible for tax purposes when paid | 9,161 | 9,124 | |||||
Goodwill and other intangibles | — | 129 | |||||
AMT credit carryover | 1,384 | 1,384 | |||||
Unused recognized built-in loss | 18,651 | 19,053 | |||||
Net operating loss | 3,172 | 4,430 | |||||
Effect of book/tax differences for general and administrative | 6,427 | — | |||||
Other | 694 | 1,378 | |||||
93,295 | 94,489 | ||||||
Deferred tax liabilities | |||||||
Effect of book/tax differences for joint ventures | (2,706 | ) | (3,537 | ) | |||
Effect of book/tax differences for capitalized interest | (11,103 | ) | (14,566 | ) | |||
Fixed assets and intangibles | (1,716 | ) | (755 | ) | |||
Goodwill and other intangibles | (1,541 | ) | — | ||||
Other | (478 | ) | 4,095 | ||||
(17,544 | ) | (14,763 | ) | ||||
Total deferred tax assets, net | $ | 75,751 | $ | 79,726 |
Year Ended December 31, 2016 | Year Ended December 31, 2015 | Year Ended December 31, 2014 | |||||||||
Basic weighted average number of shares outstanding (1) | 36,764,799 | 36,546,227 | 31,753,110 | ||||||||
Effect of dilutive securities: | |||||||||||
Preferred shares, stock options, and warrants | 815,171 | 1,326,399 | 1,424,272 | ||||||||
Tangible Equity Units | 894,930 | 894,930 | 58,961 | ||||||||
Diluted average shares outstanding | 38,474,900 | 38,767,556 | 33,236,343 | ||||||||
Net income available to common stockholders | $ | 59,696 | $ | 57,336 | $ | 44,625 | |||||
Basic income per common share | $ | 1.62 | $ | 1.57 | $ | 1.41 | |||||
Dilutive income per common share | $ | 1.55 | $ | 1.48 | $ | 1.34 | |||||
Potentially antidilutive securities not included in the calculation of diluted income per common share (weighted average): | |||||||||||
Unvested stock options | 240,000 | 180,000 | N/A |
Year Ended December 31, 2016 | Year Ended December 31, 2015 | Year Ended December 31, 2014 | |||
Expected dividend yield | N/A | —% | N/A | ||
Risk-free interest rate | N/A | 1.71% | N/A | ||
Expected volatility | N/A | 44% | N/A | ||
Expected life (in years) | N/A | 6.75 | N/A |
Year Ended December 31, 2016 | Year Ended December 31, 2015 | Year Ended December 31, 2014 | |||||||||||||||||||||
Options | Weighted Average Exercise Price | Options | Weighted Average Exercise Price | Options | Weighted Average Exercise Price | ||||||||||||||||||
Options outstanding at beginning of year | 611,313 | $ | 15.40 | 419,238 | $ | 8.66 | 576,651 | $ | 8.66 | ||||||||||||||
Granted (1) | — | N/A | 240,000 | $ | 25.82 | — | N/A | ||||||||||||||||
Exercised | (15,000 | ) | $ | 8.66 | (47,925 | ) | $ | 8.66 | (157,413 | ) | $ | 8.66 | |||||||||||
Canceled | — | N/A | — | N/A | — | N/A | |||||||||||||||||
Options outstanding at end of year | 596,313 | $ | 15.57 | 611,313 | $ | 15.40 | 419,238 | $ | 8.66 | ||||||||||||||
Options vested and expected to vest | 596,313 | $ | 15.57 | 611,313 | $ | 15.40 | 419,238 | $ | 8.66 | ||||||||||||||
Options exercisable at end of year (2) | 356,313 | $ | 8.66 | 371,313 | $ | 8.66 | 419,238 | $ | 8.66 | ||||||||||||||
Price range of options exercised | $ | 8.66 | $ | 8.66 | $ | 8.66 | |||||||||||||||||
Price range of options outstanding | $8.66-$25.82 | $8.66-$25.82 | $ | 8.66 |
(1) | The weighted average grant date fair value of the stock options during December 31, 2015 was $12.01. |
(2) | No options vested during the years ended December 31, 2016 or 2015. The fair value of shares vested during the year ended December 31, 2014 was $1.2 million. |
Outstanding | Exercisable | |||||||||||||
Exercise Price | Number of Shares | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | Number of Shares | ||||||||||
$ | 8.66 | 356,313 | 5.75 | $ | 3,694,966 | 356,313 | ||||||||
25.82 | 240,000 | 8.25 | — | — |
Year Ended December 31, 2016 | Year Ended December 31, 2015 | Year Ended December 31, 2014 | ||||||||||||||||||
Number of Shares | Weighted Avg Grant Date Fair Value | Number of Shares | Weighted Avg Grant Date Fair Value | Number of Shares | Weighted Avg Grant Date Fair Value | |||||||||||||||
Non-vested shares at beginning of year | 225,687 | $ | 23.65 | 79,335 | $ | 24.84 | 99,661 | $ | 11.49 | |||||||||||
Granted | 291,368 | 14.14 | 208,715 | 23.11 | 79,575 | 27.70 | ||||||||||||||
Vested | (126,073 | ) | 21.81 | (55,571 | ) | 23.24 | (99,901 | ) | 13.81 | |||||||||||
Canceled (1) | (44,058 | ) | 19.06 | (6,792 | ) | 24.28 | — | N/A | ||||||||||||
Non-vested shares at end of year | 346,924 | $ | 16.91 | 225,687 | $ | 23.65 | 79,335 | $ | 24.84 |
Year Ended December 31, 2016 | Year Ended December 31, 2015 | Year Ended December 31, 2014 | ||||||||||||||||||
Number of Shares | Weighted Avg Grant Date Fair Value | Number of Shares | Weighted Avg Grant Date Fair Value | Number of Shares | Weighted Avg Grant Date Fair Value | |||||||||||||||
Non-vested shares at beginning of year | 480,757 | $ | 24.18 | 506,846 | $ | 23.84 | 291,450 | $ | 14.03 | |||||||||||
Granted | 566,092 | 13.88 | 284,809 | 23.50 | 312,551 | 29.94 | ||||||||||||||
Vested | (190,977 | ) | 20.58 | (154,467 | ) | 19.58 | (97,155 | ) | 14.03 | |||||||||||
Canceled (1) | (200,739 | ) | 23.38 | (156,431 | ) | 28.86 | — | N/A | ||||||||||||
Non-vested shares at end of year | 655,133 | $ | 17.81 | 480,757 | $ | 24.18 | 506,846 | $ | 23.84 |
Year Ending December 31 | |||
2017 | $ | 2,612 | |
2018 | 2,559 | ||
2019 | 2,235 | ||
2020 | 2,008 | ||
2021 | 1,897 | ||
Thereafter | 888 | ||
Total | $ | 12,199 |
Three Months Ended | |||||||||||||||
March 31, 2016 | June 30, 2016 | September 30, 2016 | December 31, 2016 | ||||||||||||
Home sales | $ | 261,295 | $ | 325,059 | $ | 342,628 | $ | 473,221 | |||||||
Cost of sales | (215,171 | ) | (268,638 | ) | (285,896 | ) | (392,632 | ) | |||||||
Gross profit | 46,124 | 56,421 | 56,732 | 80,589 | |||||||||||
Other income, costs and expenses, net | (36,183 | ) | (41,335 | ) | (40,218 | ) | (54,163 | ) | |||||||
Net income | 9,941 | 15,086 | 16,514 | 26,426 | |||||||||||
Net income available to common stockholders | $ | 9,014 | $ | 14,561 | $ | 13,069 | $ | 23,052 | |||||||
Income per common share: | |||||||||||||||
Basic | $ | 0.25 | $ | 0.40 | $ | 0.36 | $ | 0.63 | |||||||
Diluted | $ | 0.24 | $ | 0.38 | $ | 0.34 | $ | 0.60 |
Three Months Ended | |||||||||||||||
March 31, 2015 | June 30, 2015 | September 30, 2015 | December 31, 2015 | ||||||||||||
Home sales | $ | 189,715 | $ | 247,740 | $ | 244,311 | $ | 397,162 | |||||||
Cost of sales | (154,081 | ) | (200,248 | ) | (200,328 | ) | (324,338 | ) | |||||||
Gross profit | 35,634 | 47,492 | 43,983 | 72,824 | |||||||||||
Other income, costs and expenses, net | (28,028 | ) | (34,242 | ) | (31,706 | ) | (45,696 | ) | |||||||
Net income | 7,606 | 13,250 | 12,277 | 27,128 | |||||||||||
Net income available to common stockholders | $ | 6,682 | $ | 12,277 | $ | 12,082 | $ | 26,295 | |||||||
Income per common share: | |||||||||||||||
Basic | $ | 0.18 | $ | 0.34 | $ | 0.33 | $ | 0.72 | |||||||
Diluted | $ | 0.18 | $ | 0.32 | $ | 0.31 | $ | 0.68 |
Exhibit Number | Description | ||
2.1 | Purchase and Sale Agreement, dated as of June 22, 2014, by and among PNW Home Builders, L.L.C., PNW Home Builders North, L.L.C., PNW Home Builders South, L.L.C., Crescent Ventures, L.L.C. and William Lyon Homes, Inc. (incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K filed on June 23, 2014). | ||
3.1 | Third Amended and Restated Certificate of Incorporation of William Lyon Homes (incorporated by reference to William Lyon Homes’s Current Report on Form 8-K filed with the Commission on May 28, 2013). | ||
3.2 | Amended and Restated Bylaws of William Lyon Homes (incorporated by reference to William Lyon Homes’s Current Report on Form 8-K filed with the Commission on May 28, 2013). | ||
3.3 | Amended and Restated Bylaws of William Lyon Homes (Incorporated by reference to Exhibit 3.1 of the Company's Form 8-K filed July 22, 2015) | ||
4.1 | Indenture (including form of 8.5% Senior Note due 2020), dated as of November 8, 2012, by and between William Lyon Homes, Inc., William Lyon Homes, certain of William Lyon Homes’s subsidiaries (as guarantors) and U.S. Bank National Association, as trustee (incorporated by reference to William Lyon Homes’s Current Report on Form 8-K filed with the Commission on November 8, 2012). | ||
4.2 | Officers' certificate, dated October 24, 2013, delivered pursuant to the Indenture, and setting forth the terms of the notes (incorporated by reference to Exhibit 4.1 of the Company's Current Report on Form 8-K filed on October 25, 2013). | ||
4.3 | Indenture (including form of 5.75% Senior Notes due 2019), dated March 31, 2014, among William Lyon Homes, Inc., William Lyon Homes, certain of William Lyon Homes' subsidiaries (as guarantors) and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed on April 1, 2014). | ||
4.4 | Indenture (including form of 7.00% Senior Notes due 2022), dated August 11, 2014, among WLH PNW Finance Corp., the guarantors from time to time party thereto and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.1 of the Company's Form 8-K filed August 13, 2014). | ||
4.5 | Second Supplemental Indenture, dated as of August 12, 2014, among William Lyon Homes, Inc., the subsidiary guarantors named therein and U.S. Bank National Association, relating to the 8.5% Senior Notes due 2020 (incorporated by reference to Exhibit 4.3 of the Company's Form 8-K filed August 13, 2014). | ||
4.6 | First Supplemental Indenture, dated as of August 12, 2014, among William Lyon Homes, Inc., the subsidiary guarantors named therein and U.S. Bank National Association, relating to the 5.75% Senior Notes due 2019 (incorporated by reference to Exhibit 4.4 of the Company's Form 8-K filed August 13, 2014). | ||
4.7 | First Supplemental Indenture, dated as of August 12, 2014, among William Lyon Homes, Inc., William Lyon Homes, the subsidiary guarantors named therein and U.S. Bank National Association, relating to the 7.00% Senior Notes due 2022 (incorporated by reference to Exhibit 4.5 of the Company's Form 8-K filed August 13, 2014). | ||
Exhibit Number | Description | ||
4.8 | Second Supplemental Indenture, dated as of August 12, 2014, among William Lyon Homes, Inc., the subsidiary guarantors named therein and U.S. Bank National Association, relating to the 7.00% Senior Notes due 2022 (incorporated by reference to Exhibit 4.6 of the Company's Form 8-K filed August 13, 2014). | ||
4.9 | Indenture, dated November 21, 2014, between William Lyon Homes and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.1 to William Lyon Homes’ Current Report on Form 8-K filed with the SEC on November 21, 2014). | ||
4.10 | First Supplemental Indenture (including form of 5.50% Senior Subordinated Amortizing Notes due December 1, 2017), dated November 21, 2014, between William Lyon Homes and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.2 to William Lyon Homes’ Current Report on Form 8-K filed with the SEC on November 21, 2014). | ||
4.11 | Purchase Contract Agreement (including form of unit and form of prepaid stock purchase contract), dated November 21, 2014, among William Lyon Homes, U.S. Bank National Association, as trustee, and U.S. Bank National Association, as purchase contract agent and as attorney-in-fact for the holders from time to time as provided therein (incorporated by reference to Exhibit 4.3 to William Lyon Homes’ Current Report on Form 8-K filed with the SEC on November 21, 2014). | ||
4.12 | Officers’ Certificate, dated September 15, 2015, delivered pursuant to the Indenture dated August 11, 2014 relating to the 7.00% Senior Notes due 2022, and setting forth the terms of the Additional Notes (incorporated by reference to Exhibit 4.1 of the Company’s Form 8-K filed September 15, 2015) | ||
4.13 | Indenture dated January 31, 2017, among California Lyon, the Guarantors and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.1 of the Company’s Form 8-K filed January 31, 2017) | ||
4.14 | Form of 5.875% Senior Notes due 2025 (incorporated by reference to Exhibit 4.2 of the Company’s Form 8-K filed January 31, 2017) | ||
4.15 | Third Supplemental Indenture, dated January 31, 2017, among California Lyon, Parent, the guarantors party thereto and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.3 of the Company’s Form 8-K filed January 31, 2017) | ||
10.1 | Form of Indemnity Agreement, between William Lyon Homes, a Delaware corporation, and the directors and officers of William Lyon Homes (incorporated by reference to William Lyon Homes’s Annual Report on Form 10-K for the year-ended December 31, 1999). | ||
10.2 | The Presley Companies Non-Qualified Retirement Plan for Outside Directors (incorporated by reference to William Lyon Homes’s Annual Report on Form 10-K for the year-ended December 31, 2002). | ||
10.3 | Aircraft Purchase and Sale Agreement dated as of September 3, 2009, by and between Presley CMR, Inc., and Martin Aviation, Inc., or its designee (incorporated by reference to William Lyon Homes’s Current Report on Form 8-K filed with the Commission on September 10, 2009). | ||
10.4 | Secured Promissory Note dated September 9, 2009 from Martin Aviation, Inc., a California corporation payable to William Lyon Homes, Inc., a California corporation (incorporated by reference to William Lyon Homes’s Current Report on Form 8-K filed with the Commission on September 10, 2009). | ||
10.5 | Aircraft Mortgage and Security Agreement between Martin Aviation, Inc., a California corporation and William Lyon Homes, Inc., dated as of September 9, 2009 (incorporated by reference to William Lyon Homes’s Current Report on Form 8-K filed with the Commission on September 10, 2009). | ||
Exhibit Number | Description | ||
10.6 | Form of Class A Common Stock Registration Rights Agreement, dated as of February 25, 2012, by and among William Lyon Homes and the Holders (as defined therein) (incorporated by reference to the Company’s Current Report on Form 8-K filed with the Commission on March 6, 2012). | ||
10.7 | Class B Common Stock and Warrant Purchase Agreement, dated as of February 25, 2012, by and between William Lyon Homes and the Purchaser (as defined therein) (incorporated by reference to the Company’s Current Report on Form 8-K filed with the Commission on March 6, 2012). | ||
10.8 | Warrant to Purchase Shares of Class B Common Stock of William Lyon Homes, dated as of February 25, 2012 (incorporated by reference to the Company’s Current Report on Form 8-K filed with the Commission on March 6, 2012). | ||
10.9 | Class B Common Stock Registration Rights Agreement, dated as of February 25, 2012, by and among William Lyon Homes and the Holders (as defined therein) (incorporated by reference to the Company’s Current Report on Form 8-K filed with the Commission on March 6, 2012). | ||
10.10 | Form of Convertible Preferred Stock and Class C Common Stock Registration Rights Agreement, dated as of February 25, 2012, by and among William Lyon Homes and the Holders party thereto (incorporated by reference to the Company’s Current Report on Form 8-K filed with the Commission on March 6, 2012). | ||
10.11† | Employment Agreement, dated as of February 25, 2012, by and among William Lyon Homes, William Lyon Homes, Inc. and General William Lyon (incorporated by reference to the Company’s Current Report on Form 8-K filed with the Commission on March 6, 2012). | ||
10.12† | Employment Agreement, dated as of February 25, 2012, by and among William Lyon Homes, William Lyon Homes, Inc. and William H. Lyon (incorporated by reference to the Company’s Current Report on Form 8-K filed with the Commission on March 6, 2012). | ||
10.13† | William Lyon Homes 2012 Equity Incentive Plan (incorporated by reference to the Company’s Registration Statement on Form S-1/A filed with the Commission on December 6, 2012). | ||
10.14† | William Lyon Homes 2012 Equity Incentive Plan form of Stock Option Agreement (incorporated by reference to the Company’s Registration Statement on Form S-1/A filed with the Commission on December 6, 2012). | ||
10.15† | William Lyon Homes 2012 Equity Incentive Plan form of Restricted Stock Award Agreement (incorporated by reference to the Company’s Registration Statement on Form S-1/A filed with the Commission on December 6, 2012). | ||
10.16† | Form of Employment Agreement, dated September 1, 2012 (incorporated by reference to the Company’s Registration Statement on Form S-1/A filed with the Commission on December 6, 2012). | ||
10.17 | Class A Common Stock and Convertible Preferred Stock Subscription Agreement, dated October 12, 2012, by and between William Lyon Homes and WLH Recovery Acquisition LLC (incorporated by reference to the Company’s Registration Statement on Form S-1/A filed with the Commission on December 6, 2012). | ||
10.18 | Amendment of and Joinder to Class A Common Stock Registration Rights Agreement, dated October 12, 2012, by and between WLH Recovery Acquisition LLC and William Lyon Homes (incorporated by reference to the Company’s Registration Statement on Form S-1/A filed with the Commission on December 6, 2012). | ||
Exhibit Number | Description | ||
10.19 | Amendment of and Joinder to Convertible Preferred Stock and Class C Common Stock Registration Rights Agreement, dated October 12, 2012, by and between WLH Recovery Acquisition LLC and William Lyon Homes (incorporated by reference to the Company’s Registration Statement on Form S-1/A filed with the Commission on December 6, 2012). | ||
10.20† | William Lyon Homes 2012 Equity Incentive Plan Form of Restricted Stock Award Agreement (performance-based) (incorporated by reference to William Lyon Homes’s Form S-1 Registration Statement filed April 9, 2013 (File No. 333-187819)). | ||
10.21† | Revised Form of Employment Agreement, dated April 1, 2013 (incorporated by reference to William Lyon Homes’s Form S-1 Registration Statement filed April 9, 2013 (File No. 333-187819)). | ||
10.22† | Amendment to Employment Agreement, dated March 6, 2013, by and between William Lyon Homes, Inc., and Matthew R. Zaist (incorporated by reference to William Lyon Homes’s Form S-1 Registration Statement filed April 9, 2013 (File No. 333-187819)). | ||
10.23 | Amendment No. 1 to Warrant to Purchase Shares of Class B Common Stock (incorporated by reference to William Lyon Homes’s Current Report on Form 8-K filed with the Commission on May 28, 2013). | ||
10.24 | Form of indemnification agreement (incorporated by reference to William Lyon Homes’s Current Report on Form 8-K filed with the Commission on May 28, 2013). | ||
10.25† | Amendment No. 1 to the William Lyon Homes 2012 Equity Incentive Plan (incorporated by reference to Exhibit 10.23(a) to the Company’s Form S-1 Registration Statement filed May 6, 2013 (File No. 333-187819)). | ||
10.26 | Credit Agreement among William Lyon Homes, Inc., as Borrower, William Lyon Homes, as Parent, The Lenders from time to time party thereto, and Credit Suisse AG, as Administrative Agent, dated as of August 7, 2013 (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2013). | ||
10.27† | Amendment No. 2 to the William Lyon Homes 2012 Equity Incentive Plan (incorporated by reference to Exhibit 99.3 of the Company’s Form S-8 Registration Statement filed August 12, 2013 (File No. 333-190571)) | ||
10.28† | William Lyon Homes 2012 Equity Incentive Plan Form of Restricted Stock Award Agreement (performance-based) (incorporated by reference to Exhibit 10.42 of the Company's Form S-4 Registration Statement filed December 27, 2013 (file no. 333-193112)). | ||
10.29† | William Lyon Homes 2012 Equity Incentive Plan Form of Restricted Stock Award Agreement (incorporated by reference to Exhibit 10.43 of the Company's Form S-4 Registration Statement filed December 27, 2013 (file no. 333-193112)). | ||
10.30† | William Lyon Homes 2012 Equity Incentive Plan Form of Stock Option Agreement (incorporated by reference to Exhibit 10.44 of the Company's Form S-4 Registration Statement filed December 27, 2013 (file no. 333-193112)). | ||
10.31† | William Lyon Homes 2012 Equity Incentive Plan Form of Amendment No. 1 to Stock Option Agreement (Five-Year Options) (incorporated by reference to Exhibit 10.45 of the Company's Form S-4 Registration Statement filed December 27, 2013 (file no. 333-193112)). | ||
Exhibit Number | Description | ||
10.32 | Bridge Loan Agreement, dated as of August 12, 2014, among William Lyon Homes, Inc., as Borrower, William Lyon Homes, as Parent, the Lenders from time to time party thereto, and J.P. Morgan Chase Bank, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.1 of the Company's Form 8-K filed August 13, 2014). | ||
10.33 | Amendment No. 1 to Credit Agreement among William Lyon Homes, Inc., as Borrower, William Lyon Homes, as Parent, The Lenders from time to time party thereto, and Credit Suisse AG, as Administrative Agent, dated as of August 7, 2013 (incorporated by reference to Exhibit 10.2 of the Company's Form 10-Q filed on November 12, 2014). | ||
10.34† | Amendment No. 1 to Employment Agreement, dated as of February 25, 2012, by and among William Lyon Homes, William Lyon Homes, Inc. and General William Lyon (incorporated by reference to Exhibit 10.1 of the Company's Form 8-K filed December 31, 2014). | ||
10.35† | Amendment No. 1 to Employment Agreement, dated as of February 25, 2012, by and among William Lyon Homes, William Lyon Homes, Inc. and William H. Lyon (incorporated by reference to Exhibit 10.2 of the Company's Form 8-K filed December 31, 2014). | ||
10.36 | Amendment and Restatement Agreement dated as of March 27, 2015 among William Lyon Homes, Inc., a California corporation, as Borrower, William Lyon Homes, a Delaware corporation, as Parent, each subsidiary of the Borrower party thereto, the lenders listed on Schedule 1 thereto, and Credit Suisse AG, as administrative agent (incorporated by reference to Exhibit 10.1 of the Company's Quarterly Report on Form 10-Q filed May 8, 2015) | ||
10.37† | Employment Agreement by and among William Lyon Homes, William Lyon Homes, Inc. and William H. Lyon, dated as of March 31, 2015 (incorporated by reference to Exhibit 10.1 of the Company's Form 8-K filed April 2, 2015) | ||
10.38† | Employment Agreement by and among William Lyon Homes, William Lyon Homes, Inc. and Matthew R. Zaist, dated as of March 31, 2015 (incorporated by reference to Exhibit 10.2 of the Company's Form 8-K filed April 2, 2015) | ||
10.39† | Offer Letter by and between William Lyon Homes, Inc. and William Lyon, dated as of March 31, 2015 (incorporated by reference to Exhibit 10.3 of the Company's Form 8-K filed April 2, 2015) | ||
10.40 | Amendment No. 1 dated as of December 21, 2015 to the Amended and Restated Credit Agreement dated as of March 27, 2015 among William Lyon Homes, Inc., a California corporation, as Borrower, William Lyon Homes, a Delaware corporation, as Parent, the lenders from time to time party thereto, and Credit Suisse AG, as administrative agent (incorporated by reference to Exhibit 10.40 of the Company's Form 10-K filed March 11, 2016) | ||
10.41† | William Lyon Homes 2012 Equity Incentive Plan Form of Restricted Stock Award Agreement (Performance Based) (incorporated by reference to Exhibit 10.1 of the Company's Form 10-Q filed May 9, 2016) | ||
10.42† | William Lyon Homes 2012 Equity Incentive Plan Form of Restricted Stock Award Agreement (incorporated by reference to Exhibit 10.2 of the Company's Form 10-Q filed May 9, 2016) | ||
10.43† | Offer letter by and between William Lyon Homes, Inc. and General William Lyon, dated as of March 22, 2016 (incorporated by reference to Exhibit 10.1 of the Company's Form 8-K filed March 24, 2016) | ||
10.44 | Amendment and Restatement Agreement dated as of July 1, 2016 among William Lyon Homes, Inc., a California corporation, as Borrower, William Lyon Homes, a Delaware corporation, as Parent, each subsidiary of the Borrower party thereto, the lenders listed on Schedule 1 thereto, and Credit Suisse AG, as administrative agent (incorporated by reference to Exhibit 10.1 of the Company's Form 8-K filed July 7, 2016) |
Exhibit Number | Description | ||
10.45+ | Amendment No. 1 dated as of January 27, 2017 to the Second Amended and Restated Credit Agreement dated as of July 1, 2016, among William Lyon Homes, Inc., a California corporation, as Borrower, William Lyon Homes, a Delaware corporation, as Parent, the lenders from time to time party thereto, and Credit Suisse AG, as administrative agent. | ||
12.1+ | Statement Regarding the Computation of Ratio of Earnings (Loss) to Fixed Charges and Preferred Stock Dividends for the Years Ended December 31, 2016, 2015, 2014 and 2013, the Period from January 1, 2012 through February 24, 2012, and the Period from February 25, 2012 through December 31, 2012. | ||
21.1+ | List of Subsidiaries of the Company. | ||
23.1+ | Consent of KPMG LLP, Independent Registered Public Accounting Firm. | ||
31.1+ | Certification of Principal Executive Officer Required Under Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended | ||
31.2+ | Certification of Principal Financial Officer Required Under Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended | ||
32.1* | Certification of Principal Executive Officer Required Under Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended, and 18 U.S.C. Section 1350 | ||
32.2* | Certification of Principal Financial Officer Required Under Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended, and 18 U.S.C. Section 1350 | ||
101.INS* ** | XBRL Instance Document | ||
101.SCH* ** | XBRL Taxonomy Extension Schema Document | ||
101.CAL* ** | XBRL Taxonomy Extension Calculation Linkbase Document | ||
101.DEF* ** | XBRL Taxonomy Extension Definition Linkbase Document | ||
101.LAB* ** | XBRL Taxonomy Extension Label Linkbase Document | ||
101.PRE* ** | XBRL Taxonomy Extension Presentation Linkbase Document |
+ | Filed herewith |
† | Management contract or compensatory agreement |
* | The information in Exhibits 32.1 and 32.2 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act (including this Report), unless the Registrant specifically incorporates the foregoing information into those documents by reference. |
** | Pursuant to Rule 406T of Regulation S-T, the XBRL information will not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 and will not be deemed filed or part of a registration statement or prospectus for purposes of Sections 11 and 12 of the Securities Act of 1933, or otherwise subject to liability under those Sections. |
WILLIAM LYON HOMES, INC., | |
By /s/ Matthew R. Zaist | |
Name: Matthew R. Zaist | |
Title: President & Chief Executive Officer | |
By /s/ Jason Liljestrom | |
Name: Jason Liljestrom | |
Title: VP, General Counsel & Corp Secretary | |
WILLIAM LYON HOMES, INC., | |
By /s/ Matthew R. Zaist | |
Name: Matthew R. Zaist | |
Title: President & Chief Executive Officer | |
By /s/ Jason Liljestrom | |
Name: Jason Liljestrom | |
Title: VP, General Counsel & Corp Secretary | |
CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, individually and as Administrative Agent, | |
By /s/ William O’Daly | |
Name: William O’Daly | |
Title: Authorized Signatory | |
By /s/ D. Andrew Maletta | |
Name: D. Andrew Maletta | |
Title: Authorized Signatory |
Name of Lender: Citibank, N.A. | |
By /s/ Robert J. Kane | |
Name: Robert J. Kane | |
Title: Vice President |
Name of Lender: JPMorgan Chase Bank, N.A. | |
By /s/ Chiara W. Carter | |
Name: Chiara W. Carter | |
Title: Executive Director |
Name of Lender: Comerica Bank | |
By /s/ David Plattner | |
Name: David Plattner | |
Title: VP - Western Market |
Successor(1) | Predecessor (1) | |||||||||||
Year Ended December 31, | Period from February 25, through December 31, 2012 | Period from January 1, through February 24,2012 | ||||||||||
2016 | 2015 | 2014 | 2013 | |||||||||
Ratio of earnings to fixed charges (2) | 1.92x | 1.61x | 1.59x | 2.72x | 1.02x | — | ||||||
Excess of fixed charges to earnings (loss) (2) | $ — | $ — | $ — | $ — | $ — | $(16,050) | ||||||
Excess of combined fixed charges and preferred stock dividends to earnings (loss) (2) | $ — | $ — | $ — | $ — | $(2,097) | N/A |
(1) | Successor refers to William Lyon Homes and its consolidated subsidiaries on and after the Emergence Date, after giving effect to: (i) the cancellation of shares of our common stock issued prior to February 25, 2012; (ii) the issuance of shares of new common stock, and settlement of existing debt and other adjustments in accordance with the Plan; and (iii) the application of fresh start accounting. Predecessor refers to William Lyon Homes and its consolidated subsidiaries up to the Emergence Date. In relation to the adoption of fresh start accounting in conjunction with the confirmation of the Plan, the results of operations for 2012 separately present the period from January 1, 2012 through February 24, 2012 as the pre-emergence, predecessor entity and the period from February 25, 2012 through December 31, 2012 as the successor entity. As such, the application of fresh start accounting is reflected in the period from February 25, 2012 through December 31, 2012, and the year ended December 31, 2013, and not the period from January 1, 2012 through February 24, 2012. |
(2) | The term “fixed charges” means the sum of (a) interest expensed and capitalized, (b) amortized premiums, discounts and capitalized expenses related to indebtedness, (c) portion of rent expense considered to be interest, and (d) preference security dividend requirements of consolidated subsidiaries. The term “preference security dividend” is the amount of pre-tax earnings that is required to pay dividends on outstanding preference securities. The term “earnings” means the sum of (a) pre-tax income from continuing operations and (b) fixed charges. |
1. | I have reviewed this annual report on Form 10-K of William Lyon Homes; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures, and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
By: | /s/ MATTHEW R. ZAIST | ||
Matthew R. Zaist | |||
Chief Executive Officer, President |
1. | I have reviewed this annual report on Form 10-K of William Lyon Homes; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures, and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
By: | /s/ COLIN T. SEVERN | ||
Colin T. Severn | |||
Senior Vice President, | |||
Chief Financial Officer |
/S/ MATTHEW R. ZAIST | |
Matthew R. Zaist | |
Chief Executive Officer, President | |
March 9, 2017 |
/S/ COLIN T. SEVERN | |
Colin T. Severn | |
Senior Vice President, Chief Financial Officer | |
March 9, 2017 |
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Consolidated Statements Of Operations - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Operating revenue | |||
Home sales | $ 1,402,203 | $ 1,078,928 | $ 857,025 |
Construction services | 3,837 | 25,124 | 37,728 |
Operating revenue | 1,406,040 | 1,104,052 | 894,753 |
Operating costs | |||
Cost of sales — homes | (1,162,337) | (878,995) | (677,531) |
Construction services | (3,485) | (21,181) | (30,700) |
Sales and marketing | (72,509) | (61,539) | (45,903) |
General and administrative | (73,398) | (59,161) | (54,626) |
Transaction expenses | 0 | 0 | (5,832) |
Amortization of intangible assets | 0 | (957) | (1,814) |
Other | (343) | (1,972) | (2,874) |
Operating costs | (1,312,072) | (1,023,805) | (819,280) |
Operating income | 93,968 | 80,247 | 75,473 |
Equity in income of unconsolidated joint ventures | 5,606 | 3,239 | 555 |
Other income, net | 3,243 | 3,581 | 2,295 |
Income before provision for income taxes | 102,817 | 87,067 | 78,323 |
Provision for income taxes | (34,850) | (26,806) | (23,797) |
Net income | 67,967 | 60,261 | 54,526 |
Less: Net income attributable to noncontrolling interests | (8,271) | (2,925) | (9,901) |
Net income available to common stockholders | $ 59,696 | $ 57,336 | $ 44,625 |
Income per common share: | |||
Basic (in USD per share) | $ 1.62 | $ 1.57 | $ 1.41 |
Diluted (in USD per share) | $ 1.55 | $ 1.48 | $ 1.34 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 36,764,799 | 36,546,227 | 31,753,110 |
Diluted (in shares) | 38,474,900 | 38,767,556 | 33,236,343 |
Consolidated Statements of Cash Flows (Parenthetical) |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|
5 3/4% Senior Notes due 2019 | |||
Debt instrument interest rate | 5.75% | 5.75% | 5.75% |
7% Senior Notes due 2022 | |||
Debt instrument interest rate | 7.00% | 7.00% | 7.00% |
8 1/2% Senior Notes due 2020 | |||
Debt instrument interest rate | 8.50% | 8.50% |
Basis of Presentation and Significant Accounting Policies |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Operations William Lyon Homes, a Delaware corporation (“Parent” and together with its subsidiaries, the “Company”), are primarily engaged in designing, constructing and selling single family detached and attached homes in California, Arizona, Nevada, Colorado (currently, under the Village Homes brand), Washington and Oregon (together, currently under the Polygon Northwest Homes brand). Basis of Presentation The preparation of the Company’s financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of the assets and liabilities as of December 31, 2016 and 2015 and revenues and expenses for the years ended December 31, 2016, 2015, and 2014. Accordingly, actual results could differ from those estimates. The significant accounting policies using estimates include real estate inventories and cost of sales, impairment of real estate inventories, warranty reserves, loss contingencies, sales and profit recognition, accounting for variable interest entities, valuation of deferred tax assets, and the fair value of assets acquired and liabilities assumed in connection with acquisition accounting. The current economic environment increases the uncertainty inherent in these estimates and assumptions. The consolidated financial statements include the accounts of the Company and all majority-owned and controlled subsidiaries and joint ventures, and certain joint ventures and other entities which have been determined to be variable interest entities in which the Company is considered the primary beneficiary (see Note 3). The accounting policies of the joint ventures are substantially the same as those of the Company. All significant intercompany accounts and transactions have been eliminated in consolidation. Real Estate Inventories Real estate inventories are carried at cost net of impairment losses, if any. Real estate inventories consist primarily of land deposits, land and land under development, homes completed and under construction, and model homes. All direct and indirect land costs, offsite and onsite improvements and applicable interest and other carrying charges are capitalized to real estate projects during periods when the project is under development. Land, offsite costs and all other common costs are allocated to land parcels benefited based upon relative fair values before construction. Onsite construction costs and related carrying charges (principally interest and property taxes) are allocated to the individual homes within a phase based upon the relative sales value of the homes. The Company relieves its accumulated real estate inventories through cost of sales for the estimated cost of homes sold. Selling expenses and other marketing costs are expensed in the period incurred. The Company accounts for its real estate inventories under FASB ASC 360 Property, Plant, & Equipment (“ASC 360”). ASC 360 requires impairment losses to be recorded on real estate inventories when indicators of impairment are present and the undiscounted cash flows estimated to be generated by real estate inventories are less than the carrying amount of such assets. Indicators of impairment include a decrease in demand for housing due to softening market conditions, competitive pricing pressures, which reduce the average sales price of homes including an increase in sales incentives offered to buyers, slowing sales absorption rates (calculated as net new home orders divided by average sales locations for a given period), decreases in home values in the markets in which the Company operates, significant decreases in gross margins and a decrease in project cash flows for a particular project. For land, construction in progress, completed inventory, including model homes, and inventories not owned, the Company estimates expected cash flows at the project level by maintaining current budgets using recent historical information and current market assumptions. The Company updates project budgets and cash flows of each real estate project on an as needed basis to determine whether the estimated remaining undiscounted future cash flows of the project are more or less than the carrying amount (net book value) of the asset. If the undiscounted cash flows are more than the net book value of the project, then there is no impairment. If the undiscounted cash flows are less than the net book value of the asset, then the asset is deemed to be impaired and is written-down to its fair value. Fair value represents the amount at which an asset could be bought or sold in a current transaction between willing parties (i.e., other than a forced or liquidation sale). Management determines the estimated fair value of each project by determining the present value of estimated future cash flows at discount rates that are commensurate with the risk of each project and each domain, market or sub-market or may use recent appraisals if they more accurately reflect fair value. The estimation process involved in determining if assets have been impaired and in the determination of fair value is inherently uncertain because it requires estimates of future revenues and costs, as well as future events and conditions. Estimates of revenues and costs are supported by the Company’s budgeting process, and are based on recent sales in backlog, pricing required to get the desired pace of sales, pricing of competitive projects, incentives offered by competitors and current estimates of costs of development and construction or current appraisals. The assumptions and judgments used by the Company in the estimation process to determine the future undiscounted cash flows of a project and its fair value are inherently uncertain and require a substantial degree of judgment. The realization of the Company’s real estate inventories is dependent upon future uncertain events and market conditions. Due to the subjective nature of the estimates and assumptions used in determining the future cash flows of a project, actual results could differ materially from current estimates. Management assesses land deposits for impairment when estimated land values are deemed to be less than the agreed upon contract price. The Company considers changes in market conditions, the timing of land purchases, the ability to renegotiate with land sellers, the terms of the land option contracts in question, the availability and best use of capital, and other factors. The Company records abandoned land deposits and related pre-acquisition costs in cost of sales-lots, land and other in the consolidated statements of operations in the period that it is abandoned. A provision for warranty costs relating to the Company’s limited warranty plans is included in cost of sales and accrued expenses at the time the sale of a home is recorded. The Company generally reserves a percent of the sales price of its homes, or a set amount per home closed depending on operating segment, against the possibility of future charges relating to its warranty programs and similar potential claims. Factors that affect the Company’s warranty liability include the number of homes under warranty, historical and anticipated rates of warranty claims, and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary. Changes in the Company’s warranty liability for the years ended December 31, 2016, 2015, and 2014 are as follows (in thousands):
Interest incurred under the Company’s debt obligations, as more fully discussed in Note 9, is capitalized to qualifying real estate projects under development. Any additional interest charges related to real estate projects not under development are expensed in the period incurred. Interest activity for the years ended December 31, 2016, 2015, and 2014 are as follows (in thousands):
Construction Services The Company accounts for construction management agreements using the Percentage of Completion Method in accordance with FASB ASC Topic 605 Revenue Recognition (“ASC 605”). Under ASC 605, the Company records revenues and expenses as a contracted project progresses, and based on the percentage of costs incurred to date compared to the total estimated costs of the contract. The Company entered into construction management agreements to build, sell and market homes in certain communities. For such services, the Company will receive fees (generally 3 to 5 percent of the sales price, as defined) and may, under certain circumstances, receive additional compensation if certain financial thresholds are achieved. For the years ended December 31, 2016, 2015 and 2014, the Company recorded additional compensation of $0.2 million, $1.9 million and $3.9 million, respectively. Financial Instruments Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash investments, receivables, escrow proceeds receivable, our indebtedness, and deposits. The Company typically places its cash investments in investment grade short-term instruments. Deposits, included in other assets, are due from municipalities or utility companies and are generally collected from such entities through fees assessed to other developers. The Company is an issuer of, or subject to, financial instruments with off-balance sheet risk in the normal course of business which exposes it to credit risks. These financial instruments include letters of credit and obligations in connection with assessment district bonds. These off-balance sheet financial instruments are described in more detail in Note 16. Cash and Cash Equivalents Short-term investments with a maturity of three months or less when purchased are considered cash equivalents. The Company’s cash and cash equivalents balance exceeds federally insurable limits as of December 31, 2016 and 2015. The Company monitors the cash balances in its operating accounts; however, these cash balances could be negatively impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. To date, the Company has experienced no loss or lack of access to cash in its operating accounts. Restricted Cash Restricted cash consists of deposits made by the Company to a bank account as collateral for the use of letters of credit to guarantee the Company’s financial obligations under certain other contractual arrangements in the normal course of business. Goodwill In accordance with the provisions of ASC 350, Intangibles, Goodwill and Other, goodwill is tested for impairment on an annual basis, or more frequently if events or circumstances indicate that goodwill may be impaired. The impairment test is performed at the reporting unit level, and an impairment loss is recognized to the extent that the carrying amount of goodwill exceeds the fair value. The Company has determined that we have six reporting segments, as discussed in Note 5, and will perform an annual goodwill impairment analysis during the fourth quarter of each fiscal year. Intangible Assets Recorded intangible assets primarily relate to brand names of acquired entities, construction management contracts, homes in backlog, and joint venture management fee contracts recorded in conjunction with FASB ASC Topic 852, Reorganizations ("ASC 852"), or FASB ASC Topic 805, Business Combinations ("ASC 805"). All intangible assets with the exception of those relating to brand names were valued based on expected cash flows related to home closings, and the asset is amortized on a per unit basis, as homes under the contracts close. Our brand name intangible assets are deemed to have an indefinite useful life. Income per common share The Company computes income per common share in accordance with FASB ASC Topic 260, Earnings per Share, which requires income per common share for each class of stock to be calculated using the two-class method. The two-class method is an allocation of income between the holders of common stock and a company’s participating security holders. Basic income per common share is computed by dividing income or loss available to common stockholders by the weighted average number of shares of common stock outstanding. For purposes of determining diluted income per common share, basic income per common share is further adjusted to include the effect of potential dilutive common shares outstanding. Income Taxes Income taxes are accounted for under the provisions of Financial Accounting Standards Board ASC 740, Income Taxes, using an asset and liability approach. Deferred income taxes reflect the net effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and operating loss and tax credit carryforwards measured by applying currently enacted tax laws. A valuation allowance would be provided to reduce net deferred tax assets if it were determined that it is more likely than not to be realized. ASC 740 prescribes a recognition threshold and a measurement criterion for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be considered “more-likely-than-not” to be sustained upon examination by taxing authorities. In addition, the Company has elected to recognize interest and penalties related to uncertain tax positions in the income tax provision. Comprehensive Income or Loss The Company had no other transactions or activity, other than net income or loss, that would be considered as part of comprehensive income or loss. Impact of Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers (“ASU 2014-09”), which clarifies existing accounting literature relating to how and when revenue is recognized by an entity. ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets and supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. In doing so, an entity will need to exercise a greater degree of judgment and make more estimates than under the current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price, and allocating the transaction price to each separate performance obligation. ASU 2014-09 also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts. ASU 2014-09 is effective for public companies for interim and annual reporting periods beginning after December 15, 2017, and is to be applied either retrospectively or using the cumulative effect transition method, with early adoption not permitted. The Company does not anticipate that the adoption of ASU 2014-09 will have a material impact on its consolidated financial statements. In February 2015, FASB issued ASU No. 2015-02 "Consolidation (Topic 810): Amendments to the Consolidation Analysis" ("ASU 2015-02"). ASU 2015-02 amends the consolidation guidance for variable interest entities and voting interest entities, among other items, by eliminating the consolidation model previously applied to limited partnerships, emphasizing the risk of loss when determining a controlling financial interest and reducing the frequency of the application of related-party guidance when determining a controlling financial interest. ASU 2015-02 is effective for public companies for interim and annual reporting periods beginning after December 15, 2015. The adoption of ASU 2015-02 did not have a material impact on the Company's consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"), which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets. ASU 2016-02 requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. ASU 2016-02 is effective for annual and interim periods in fiscal years beginning after December 15, 2018. Early adoption is permitted. The Company does not anticipate that the adoption of ASU 2014-09 will have a material impact on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” ("ASU 2016-09”). ASU 2016-09 simplifies several aspects for the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for annual and interim periods in fiscal years beginning after December 15, 2016. Early adoption is permitted. The Company does not anticipate that the adoption of ASU 2014-09 will have a material impact on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). ASU 2016-15 provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. ASU 2016-15 is effective for annual and interim periods in fiscal years beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the potential impact the adoption of ASU 2016-15 will have on its consolidated financial statements. Reclassifications Certain balances on the financial statements and certain amounts presented in the notes have been reclassified in order to conform to current year presentation. |
Acquisition of Polygon Northwest Homes |
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of Polygon Northwest Homes | Acquisition of Polygon Northwest Homes On August 12, 2014 ("Acquisition date"), the Company completed its acquisition of the residential homebuilding business of PNW Home Builders, L.L.C. (“PNW Parent”) pursuant to the Purchase and Sale Agreement (the “Purchase Agreement”) dated June 22, 2014 among William Lyon Homes, Inc., a California corporation and wholly-owned subsidiary of Parent ("California Lyon"), PNW Parent, PNW Home Builders North, L.L.C., PNW Home Builders South, L.L.C. and Crescent Ventures, L.L.C. Prior to such completion, California Lyon assigned its interests in the Purchase Agreement to Polygon WLH LLC, a newly formed Delaware limited liability company and wholly-owned subsidiary of California Lyon (“Polygon WLH”). Pursuant to the Purchase Agreement, Polygon WLH acquired, for cash, all of the membership interests of the underlying limited liability companies and certain service companies and other assets that comprised the residential homebuilding operations of PNW Parent (such operations being referred herein as "Polygon Northwest Homes") and which conducts business as Polygon Northwest Company (“Polygon”), for an aggregate cash purchase price of $520.0 million, an additional approximately $28.0 million at closing pursuant to initial working capital adjustments, plus an additional $4.3 million of consideration in accordance with the terms of the Purchase Agreement (the “Polygon Acquisition”). The acquired entities now operate as two new segments of the Company under the Polygon name, one in Washington, with a core market of Seattle, and the other in Oregon, with a core market of Portland. The Company financed the Polygon Acquisition with a combination of proceeds as follows: (i) $300 million in aggregate principal amount of 7.00% senior notes due 2022, (ii) approximately $100 million of aggregate proceeds from several separate land banking arrangements for land parcels located in California, Washington and Oregon, (iii) $120 million of borrowings under a new one-year senior unsecured loan facility, which was repaid during the fourth quarter of 2014 with proceeds from the Company's Tangible Equity Unit offering (see Notes 9 and 14), and (iv) cash on hand. As a result of the Polygon Acquisition, the entities comprising the business of Polygon Northwest Homes became wholly-owned direct or indirect subsidiaries of the Company, and its results are included in our condensed consolidated financial statements and related disclosures from the Acquisition date. The Acquisition was accounted for as a business combination in accordance with ASC 805. Under ASC 805, the Company recorded the acquired assets and assumed liabilities of Polygon Northwest Homes at their estimated fair values, with the excess allocated to Goodwill, as shown below. Goodwill represents the value the Company expects to achieve through the operational synergies and the expansion of the Company into new markets. The Company estimates that the entire $52.7 million of goodwill resulting from the Acquisition will be tax deductible. Goodwill will be allocated to the Washington and Oregon operating segments (see Note 7). A reconciliation of the consideration transferred as of the acquisition date is as follows:
The Company completed its final estimate of the fair value of the net assets of Polygon Northwest Homes during August 2015. During the year ended December 31, 2015, the Company recorded a measurement period adjustment based upon information that was received subsequent to the acquisition date that related to conditions that existed as of that date. The net effect of this adjustment was to reduce the value of Real estate inventories by $6.0 million, with a corresponding increase to Goodwill. As the Company elected to early adopt ASU 2015-16 (see Note 1) this adjustment was recorded during the year ended December 31, 2015. An adjustment to reduce Cost of sales - homes was recorded during the year ended December 31, 2015 for $0.3 million to account for homes affected by this measurement period adjustment that had been delivered subsequent to the acquisition date. The following table summarizes the amounts for acquired assets and liabilities recorded at their fair values as of the acquisition date (in thousands):
The Company determined the preliminary fair value of real estate inventories on a project level basis using a combination of discounted cash flow models, and market comparable land transactions, where available. These methods are significantly impacted by estimates relating to i) expected selling prices, ii) anticipated sales pace, iii) cost to complete estimates, iv) highest and best use of projects prior to acquisition, and v) comparable land values. These estimates were developed and used at the individual project level, and may vary significantly between projects. Homes in backlog as of the acquisition date were included as a component of the valuation of real estate inventories. The acquisition date fair value of the intangible asset relating to brand name was estimated using a discounted cashflow method. This asset is deemed to have an indefinite life. Additionally, the Company acquired a non-controlling interest in a joint venture mortgage business. The fair value of this investment was estimated using the discounted cash flow method, which was significantly impacted by estimated cash flow streams and income of the joint venture, and has been ascribed an indefinite life. The acquisition date fair value of other assets, accounts payable, and accrued expenses were determined to be at historical value due to the short-term nature of these liabilities. The Company recorded $5.8 million in acquisition related costs for the year ended December 31, 2014, which is included in the Consolidated Statement of Operations in Transaction expenses. Such costs were expensed as incurred in accordance with ASC 805. There were no acquisition related costs incurred during the year ended December 31, 2015 or December 31, 2016. Supplemental Unaudited Pro Forma Information The following table presents unaudited pro forma amounts for the year ended December 31, 2014 (amounts in thousands, except per share data):
The unaudited pro forma operating results have been determined after adjusting the unaudited operating results of Polygon Northwest Homes to reflect the estimated purchase accounting and other acquisition adjustments including interest expense associated with the debt used to fund a portion of the acquisition. The unaudited pro forma results presented above do not reflect any cost savings, operating synergies or revenue enhancements that the combined company may achieve as a result of the Acquisition, the costs to combine the operations of the Company and Polygon Northwest Homes or the costs necessary to achieve any of the foregoing cost savings, operating synergies or revenue enhancements. As such, the unaudited pro forma amounts are for comparative purposes only and may not necessarily reflect the results of operations which would have resulted had the acquisition been completed at the beginning of the applicable period or indicative of the results that will be attained in the future. |
Variable Interest Entities and Noncontrolling Interests |
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Noncontrolling Interest [Abstract] | |
Variable Interest Entities and Noncontrolling Interests | Variable Interest Entities and Noncontrolling Interests The Company accounts for variable interest entities in accordance with ASC 810, Consolidation (“ASC 810”). Under ASC 810, a variable interest entity (“VIE”) is created when: (a) the equity investment at risk in the entity is not sufficient to permit the entity to finance its activities without additional subordinated financial support provided by other parties, including the equity holders; (b) the entity’s equity holders as a group either (i) lack the direct or indirect ability to make decisions about the entity, (ii) are not obligated to absorb expected losses of the entity or (iii) do not have the right to receive expected residual returns of the entity; or (c) the entity’s equity holders have voting rights that are not proportionate to their economic interests, and the activities of the entity involve or are conducted on behalf of the equity holder with disproportionately few voting rights. If an entity is deemed to be a VIE pursuant to ASC 810, the enterprise that has both (i) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (ii) the obligation to absorb the expected losses of the entity or right to receive benefits from the entity that could be potentially significant to the VIE is considered the primary beneficiary and must consolidate the VIE. In accordance with ASC 810, we perform ongoing reassessments of whether an enterprise is the primary beneficiary of a VIE. Joint Ventures As of December 31, 2016 and 2015, the Company had eleven and eight joint ventures, respectively, which were deemed to be VIEs under ASC 810 for which the Company is considered the primary beneficiary. The Company manages the joint ventures, by using its sales, development and operations teams and has significant control over these projects and therefore the power to direct the activities that most significantly impact the joint venture’s performance, in addition to being obligated to absorb expected losses or receive benefits from the joint venture, and therefore the Company is deemed to be the primary beneficiary of these VIEs. These joint ventures are each engaged in homebuilding and land development activities. Certain of these joint ventures have not obtained construction financing from outside lenders, but are financing their activities through equity contributions from each of the joint venture partners. The Company has no rights and limited obligations with respect to the liabilities of the VIEs, and none of the Company’s assets serve as collateral for the creditors of these VIEs. The assets of the joint ventures are the sole collateral for the liabilities of the joint ventures and as such, the creditors and equity investors of these joint ventures have no recourse to assets of the Company held outside of these joint ventures. The liabilities of each VIE are restricted to the assets of each VIE. Additionally, the creditors of the Company have no access to the assets of the VIEs. Income allocations and cash distributions to the Company are based on predetermined formulas between the Company and their joint venture partners as specified in the applicable partnership or operating agreements. The Company generally receives, after partners’ priority returns and return of partners’ capital, approximately 50% of the profits and cash flows from the joint ventures. During the year ended December 31, 2016, the Company formed three joint ventures for the purpose of land development and homebuilding activities. The Company, as the managing member, has the power to direct the activities of the VIEs since it manages the daily operations and has exposure to the risks and rewards of the VIEs, as based on the division of income and loss per the joint venture agreements. Therefore, the Company is the primary beneficiary of the joint ventures, and the VIEs were consolidated as of December 31, 2016 and December 31, 2015. As of December 31, 2016, the assets of the consolidated VIEs totaled $204.8 million, of which $5.8 million was cash and $200.7 million was real estate inventories. The liabilities of the consolidated VIEs totaled $107.3 million, primarily comprised of notes payable, accounts payable and accrued liabilities. As of December 31, 2015, the assets of the consolidated VIEs totaled $155.0 million, of which $2.8 million was cash and $148.6 million was real estate inventories. The liabilities of the consolidated VIEs totaled $97.1 million, primarily comprised of notes payable, accounts payable and accrued liabilities. |
Investments in Unconsolidated Joint Ventures Investments in Unconsolidated Joint Ventures |
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Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Unconsolidated Joint Ventures | Investments in Unconsolidated Joint Ventures The table set forth below summarizes the combined unaudited statements of operations for our unconsolidated mortgage joint ventures that we accounted for under the equity method (in thousands):
Income from unconsolidated joint ventures reflected in the accompanying consolidated statements of operations represents our share of the income of our unconsolidated mortgage joint ventures, which is allocated based on the provisions of the underlying joint venture operating agreements less any additional impairments recorded against our investments in joint ventures which we do not deem recoverable. For the years ended December 31, 2016, 2015 and 2014, the Company recorded income of $5.6 million, $3.2 million and $0.6 million, respectively, from its unconsolidated joint ventures. This income was primarily attributable to our share of income related to mortgages that were generated and issued to qualifying home buyers during the periods. During the years ended December 31, 2016, 2015, and 2014, all of our unconsolidated joint ventures were reviewed for impairment. Based on the impairment review, no investments in joint ventures were determined to be impaired. The table set forth below summarizes the combined unaudited balance sheets for our unconsolidated joint ventures that we accounted for under the equity method (in thousands):
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The Company operates one principal homebuilding business. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-maker in deciding how to allocate resources and in assessing performance. The Company’s President and Chief Executive Officer has been identified as the chief operating decision maker. The Company’s chief operating decision maker directs the allocation of resources to operating segments based on the profitability and cash flows of each respective segment. The Company’s homebuilding operations design, construct and sell a wide range of homes designed to meet the specific needs in each of its markets. As such, in accordance with the aggregation criteria defined by FASB ASC Topic 280, Segment Reporting (“ASC 280”), the Company’s homebuilding operating segments have been grouped into six reportable segments: California, consisting of operating divisions in i) Southern California, consisting of operations in Orange, Los Angeles, Riverside and San Bernardino counties; ii) Northern California, consisting of operations in Alameda, Contra Costa, San Joaquin, and Santa Clara counties. Arizona, consisting of operations in the Phoenix, Arizona metropolitan area. Nevada, consisting of operations in the Las Vegas, Nevada metropolitan area. Colorado, consisting of operations in the Denver, Colorado metropolitan area. Washington, consisting of operations in the Seattle, Washington metropolitan area. Oregon, consisting of operations in the Portland, Oregon metropolitan area. Corporate develops and implements strategic initiatives and supports the Company’s operating segments by centralizing key administrative functions such as finance and treasury, information technology, risk management and litigation and human resources. Segment financial information relating to the Company’s operations was as follows (in thousands):
(1) Operating revenue in the California segment includes construction services revenue.
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Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Inventories | Real Estate Inventories Real estate inventories consist of the following (in thousands):
The Company accounts for its real estate inventories under ASC 360, which requires impairment losses to be recorded on real estate inventories when indicators of impairment are present and the undiscounted cash flows estimated to be generated by real estate inventories are less than the carrying amount of such assets. During the years ended December 31, 2016, 2015, and 2014, the Company did not record any impairments to the value of its real estate inventories. |
Goodwill |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | Goodwill As of December 31, 2016 and 2015, the Company had Goodwill $66.9 million. $14.2 million at December 31, 2016 and 2015, respectively represents the excess of enterprise value upon emergence from bankruptcy over the fair value of net tangible and identifiable intangible assets as of February 24, 2012. During the year ended December 31, 2015, the Company recorded a measurement period adjustment based upon information that was received subsequent to the acquisition date of Polygon Northwest Homes that related to conditions that existed as of that date. This adjustment increased the value of Goodwill by $6.0 million. Refer to Note 2 for further details relating to the acquisition of Polygon Northwest Homes. Goodwill by operating segment as of December 31, 2016 and 2015 is as follows (in thousands):
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Intangibles |
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Intangibles | Intangibles The carrying value and accumulated amortization of intangible assets at December 31, 2016 and December 31, 2015, by major intangible asset category, is as follows (in thousands):
The Company evaluates indefinite lived intangible assets at least annually, or more frequently if events or circumstances exist that may indicate that the asset is impaired or that its life is finite. Amortization expense related to intangible assets for the year ended December 31, 2015 was $1.0 million. As of December 31, 2015, the Company has fully amortized the value of all of the intangible assets it held with finite lives. |
Senior Notes, Secured, and Subordinated Indebtedness |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes, Secured, and Subordinated Indebtedness | Senior Notes, Secured, and Subordinated Indebtedness The Company's senior notes, secured, and subordinated indebtedness consists of the following (in thousands):
The maturities of the Company's Notes payable, Subordinated amortizing notes, 5 3/4% Senior Notes, 8 1/2% Senior Notes, and 7% Senior Notes are as follows as of December 31, 2016 (in thousands):
Maturities above exclude premium on the 8 1/2% and 7% Senior Notes in aggregate of $3,450, and deferred loan costs on the 5 3/4%, 8 1/2%, and 7% Senior Notes in aggregate of $10,793 as of December 31, 2016. Notes Payable Construction Notes Payable The Company and certain of its consolidated joint ventures have entered into construction notes payable agreements. These loans will be repaid with proceeds from closings and are secured by the underlying projects. The issuance date, facility size, maturity date and interest rate are listed in the table below as of December 31, 2016 (in millions):
(1) Loan bears interest at the Company's option of either LIBOR +3.0% or the prime rate +1.0%. (2) Loan bears interest at LIBOR +3.25%. (3) Loan bears interest at the prime rate +0.5%. (4) Loan relates to a project that is wholly-owned by the Company. (5) During the year ended December 31, 2016, the balance on this borrowing was paid in full prior to the August, 2017 maturity date, along with all accrued interest to date. The construction notes payable contain certain financial maintenance covenants. The Company was in compliance with all such covenants as of December 31, 2016. Seller Financing At December 31, 2016, the Company had $24.7 million of notes payable outstanding related to two land acquisitions for which seller financing was provided. The first note of approximately $3.0 million bears interest at a rate of 7% per annum, is secured by the underlying land, and matures in August 2017. This note was entered into with a related party. Refer to Note 11 for more details regarding the related party transaction. The second note of $21.7 million bears interest at a rate of 7% per annum, is secured by the underlying land, and matures in June 2018. Revolving Lines of Credit On July 1, 2016, California Lyon and Parent entered into an amendment and restatement agreement pursuant to which its existing credit agreement providing for a revolving credit facility, as previously amended and restated on March 27, 2015 as described below, was further amended and restated in its entirety (the "Second Amended Facility"). The Second Amended Facility amends and restates the Company’s previous $130.0 million revolving credit facility and provides for total lending commitments of $145.0 million. In addition, the Second Amended Facility has an uncommitted accordion feature under which the Company may increase the total principal amount up to a maximum aggregate of $200.0 million under certain circumstances, as well as a sublimit of $50.0 million for letters of credit. The Second Amended Facility, among other things, also amended the maturity date of the previous facility to July 1, 2019, provided that the Second Amended Facility will terminate on January 14, 2019 (the “Springing Termination Date”) if, on the Springing Termination Date, the aggregate outstanding principal amount of California Lyon’s 5.75% senior notes due 2019 is equal to or greater than the sum of (a) 50% of the Consolidated EBITDA (as defined in the Second Amended Facility) of California Lyon, Parent, certain of the Parent’s direct and indirect wholly owned subsidiaries (together with California Lyon and Parent, the “Loan Parties”) and their Restricted Subsidiaries (as defined in the Second Amended Facility) for the four-quarter period ending September 30, 2018, plus (b) the Liquidity (as defined in the Second Amended Facility) of the Loan Parties and their consolidated subsidiaries on the Springing Termination Date. Further, the Second Amended Facility amended the maximum leverage ratio covenant to extend the timing of the gradual step-downs. Specifically, pursuant to the Second Amended Facility, the maximum leverage ratio will remain at 65% from June 30, 2016 through and including December 30, 2016, will decrease to 62.5% on the last day of the 2016 fiscal year, remain at 62.5% from December 31, 2016 through and including June 29, 2017, and will further decrease to 60% on the last day of the second quarter of 2017 and remain at 60% thereafter. The Second Amended Facility did not revise any of our other financial covenants thereunder. Prior to the entry into the Second Amended Facility as described above, on March 27, 2015, California Lyon and Parent entered into an amendment and restatement agreement which amended and restated the Company's previous $100 million revolving credit facility and provided for total lending commitments of $130.0 million, an uncommitted accordion feature under which the Company could increase the total principal amount up to a maximum aggregate of $200.0 million under certain circumstances (up from a maximum aggregate of $125.0 million under the previous facility), as well as a sublimit of $50.0 million for letters of credit, and extended the maturity date of the previous facility by one year to August 7, 2017. The Second Amended Facility contains certain financial maintenance covenants, including (a) a minimum tangible net worth requirement of $451.0 million (which is subject to increase over time based on subsequent earnings and proceeds from equity offerings, as well as deferred tax assets to the extent included on the Company's financial statements), (b) a maximum leverage covenant that prohibits the leverage ratio (as defined therein) from exceeding 65%, which maximum leverage ratio decreases to 62.5% effective as of December 31, 2016, and further decreases to 60% effective as of June 30, 2017, and (c) a covenant requiring us to maintain either (i) an interest coverage ratio (EBITDA to interest incurred, as defined therein) of at least 1.50 to 1.00 or (ii) liquidity (as defined therein) of an amount not less than the greater of our consolidated interest incurred during the trailing 12 months and $50.0 million. Our compliance with these financial covenants is measured by calculations and metrics that are specifically defined or described by the terms of the Second Amended Facility and can differ in certain respects from comparable GAAP or other commonly used terms. The Second Amended Facility contains customary events of default, subject to cure periods in certain circumstances, including: nonpayment of principal, interest and fees or other amounts; violation of covenants; inaccuracy of representations and warranties; cross default to certain other indebtedness; unpaid judgments; and certain bankruptcy and other insolvency events. The occurrence of any event of default could result in the termination of the commitments under the Second Amended Facility and permit the lenders to accelerate payment on outstanding borrowings under the Second Amended Facility and require cash collateralization of outstanding letters of credit. If a change in control (as defined in the Second Amended Facility) occurs, the lenders may terminate the commitments under the Second Amended Facility and require that the Company repay outstanding borrowings under the Second Amended Facility and cash collateralize outstanding letters of credit. Interest rates on borrowings generally will be based on either LIBOR or a base rate, plus the applicable spread. The Company was in compliance with all covenants under the Second Amended Facility as of December 31, 2016. Borrowings under the Second Amended Facility, the availability of which is subject to a borrowing base formula, are required to be guaranteed by the Parent and certain of the Parent's wholly-owned subsidiaries, are secured by a pledge of all equity interests held by such guarantors, and may be used for general corporate purposes. Interest rates on borrowings generally will be based on either LIBOR or a base rate, plus the applicable spread. As of December 31, 2016, the commitment fee on the unused portion of the Second Facility accrues at an annual rate of 0.50%. As of December 31, 2016 and December 31, 2015, the Company had $29.0 million and $65.0 million outstanding against the Second Amended Facility, respectively, at effective rates of 4.75% and 3.32%, respectively. In addition, a letter of credit for $8.0 million and $8.6 million was outstanding at December 31, 2016 and December 31, 2015, respectively. In connection with the issuance of the Company’s new 5.875% Notes to pay off in full the previously outstanding 8.5% Notes in January 2017, the Company entered into an amendment to the Second Amended Facility effective as of January 27, 2017. The amendment modifies the definition of Tangible Net Worth (as defined therein) for purposes of calculating the Leverage Ratio covenant under the Second Amended Facility, so as to exclude any reduction in Tangible Net Worth that occurs as a result of the costs related to payment of any call premium or any other costs associated with the refinancing transaction and the redemption of outstanding 8.5% Notes. See Note 17 for additional information. Subordinated Amortizing Notes On November 21, 2014, in order to pay down amounts borrowed under the one-year senior unsecured facility entered into in conjunction with the acquisition of Polygon, the Company completed its public offering and sale of 1,000,000 6.50% tangible equity units (“TEUs”, or "Units"), sold for a stated amount of $100 per Unit, featuring a 17.5% conversion premium. On December 3, 2014, the Company sold an additional 150,000 TEUs pursuant to an over-allotment option granted to the underwriters. Each TEU is a unit composed of two parts:
Unless settled earlier at the holder’s option, each purchase contract will automatically settle on December 1, 2017 (the "mandatory settlement date"), and the Company will deliver not more than 5.2247 shares of Class A Common Stock and not less than 4.4465 shares of Class A Common Stock on the mandatory settlement date, subject to adjustment, based upon the applicable settlement rate and applicable market value of Class A Common Stock. Each amortizing note had an initial principal amount of $18.01, bears interest at the annual rate of 5.50% and has a final installment payment date of December 1, 2017. On each March 1, June 1, September 1 and December 1, commencing on March 1, 2015, William Lyon Homes will pay equal quarterly installments of $1.6250 on each amortizing note (except for the March 1, 2015 installment payment, which was $1.8056 per amortizing note). Each installment will constitute a payment of interest and a partial repayment of principal. The amortizing notes rank equally in right of payment to all of the Company's existing and future senior indebtedness, other than borrowings under the Amended Facility and the Company's secured project level financing, which will be senior in right of payment to the obligations under the amortizing notes, in each case to the extent of the value of the assets securing such indebtedness. Each TEU may be separated into its constituent purchase contract and amortizing note on any business day during the period beginning on, and including, the business day immediately succeeding the date of initial issuance of the Units to, but excluding, the third scheduled trading day immediately preceding the mandatory settlement date. Prior to separation, the purchase contracts and amortizing notes may only be purchased and transferred together as Units. The net proceeds received from the TEU issuance were allocated between the amortizing note and the purchase contract under the relative fair value method, with amounts allocated to the purchase contract classified as additional paid-in capital. As of December 31, 2016 and 2015, the amortizing notes had an unamortized carrying value of $7.2 million and $14.1 million, respectively. 5 3/4% Senior Notes Due 2019 On March 31, 2014, California Lyon completed its private placement with registration rights of 5.75% Senior Notes due 2019 (the "5.75% Notes"), in an aggregate principal amount of $150 million. The 5.75% Notes were issued at 100% of their aggregate principal amount. In August 2014, the Company exchanged 100% of the 5.75% Notes for notes that are freely transferable and registered under the Securities Act of 1933, as amended (the "Securities Act"). As of December 31, 2016, the outstanding principal amount of the 5.75% Notes was $150 million, excluding deferred loan costs of $1.2 million. The 5.75% Notes bear interest at a rate of 5.75% per annum, payable semiannually in arrears on April 15 and October 15, and mature on April 15, 2019. The 5.75% Notes are unconditionally guaranteed on a joint and several unsecured basis by Parent and by certain of Parent’s existing and future restricted subsidiaries. The 5.75% Notes and the related guarantees are California Lyon’s and the guarantors’ unsecured senior obligations and rank equally in right of payment with all of California Lyon’s and the guarantors’ existing and future unsecured senior debt, including California Lyon’s $425 million in aggregate principal amount of 8.5% Senior Notes due 2020, and $350 million in aggregate principal amount of 7.00% Notes, each as described below. The 5.75% Notes rank senior in right of payment to all of California Lyon’s and the guarantors’ future subordinated debt. The 5.75% Notes and the guarantees are and will be effectively junior to California Lyon’s and the guarantors’ existing and future secured debt to the extent of the value of the collateral securing such debt. On or after April 15, 2016, California Lyon may redeem all or a portion of the 5.75% Notes upon not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed as percentages of the principal amount) set forth below plus accrued and unpaid interest to the applicable redemption date, if redeemed during the period beginning on each of the dates indicated below:
8 1/2% Senior Notes Due 2020 On November 8, 2012, William Lyon Homes, Inc., a California corporation and wholly-owned subsidiary of the Company (“California Lyon”) completed its private placement with registration rights of 8.5% Senior Notes due 2020 (the "initial 8.5% Notes"), in an aggregate principal amount of $325 million. The initial 8.5% Notes were issued at 100% of their aggregate principal amount. In July 2013, the Company exchanged 100% of the initial 8.5% Notes for notes that are freely transferable and registered under the Securities Act. On October 24, 2013, California Lyon completed its private placement with registration rights of an additional $100.0 million in aggregate principal amount of its 8.5% Senior Notes due 2020 (the “additional 8.5% Notes”, and together with the initial 8.5% Notes, the "8.5% Notes") at an issue price of 106.5% of their aggregate principal amount, plus accrued interest from and including May 15, 2013, in a private placement, resulting in net proceeds of approximately $104.7 million. In February 2014, the Company exchanged 100% of the additional 8.5% Notes for notes that are freely transferable and registered under the Securities Act. As of December 31, 2016 , the outstanding principal amount of the 8.5% Notes was $425 million, excluding unamortized premium of $2.6 million and deferred loan costs of $4.8 million. The 8.5% Notes bear interest at an annual rate of 8.5% per annum, payable semiannually in arrears on May 15 and November 15, commencing on May 15, 2013, and mature on November 15, 2020. The 8.5% Notes are unconditionally guaranteed on a joint and several unsecured basis by Parent and certain of its existing and future restricted subsidiaries. The 8.5% Notes and the related guarantees are California Lyon's and the guarantors' unsecured senior obligations and rank equally in right of payment with all of California Lyon's and the guarantors' existing and future unsecured senior debt, including California Lyon's 5.75% Notes, as described above, and 7.00% Notes, as described below. The 8.5% Notes rank senior in right of payment to all of California Lyon’s and the guarantors’ future subordinated debt. The 8.5% Notes and the guarantees are and will be effectively junior to any of California Lyon’s and the guarantors’ existing and future secured debt. On or after November 15, 2016, California Lyon may redeem all or a portion of the 8.5% Notes upon not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed as percentages of the principal amount) set forth below plus accrued and unpaid interest to the applicable redemption date, if redeemed during the 12-month period beginning on November 15 of the years indicated below:
On January 31, 2017, California Lyon completed the sale to certain purchasers of $450.0 million in aggregate principal amount of 5.875% Senior Notes due 2025, or the 5.875% Notes, in a private placement with registration rights. Parent, through California Lyon, used the net proceeds from the 5.875% Notes offering to purchase $395.6 million of the outstanding aggregate principal amount of the 8.5% Notes, pursuant to a cash tender offer and consent solicitation, and subsequently used the remaining proceeds, together with cash on hand, for the retirement of the remaining outstanding 8.5% Notes. The Company incurred certain costs related to the early extinguishment of debt of the 8.5% Notes during the first quarter of 2017 in an amount of approximately $21.8 million. See Note 17 for additional details regarding this refinancing transaction. 7% Senior Notes Due 2022 On August 11, 2014, WLH PNW Finance Corp. (“Escrow Issuer”), completed its private placement with registration rights of 7.00% Senior Notes due 2022 (the “initial 7.00% Notes”), in an aggregate principal amount of $300 million. The initial 7.00% Notes were issued at 100% of their aggregate principal amount. On August 12, 2014, in connection with the consummation of the Acquisition, Escrow Issuer merged with and into California Lyon, and California Lyon assumed the obligations of the Escrow Issuer under initial 7.00% Notes and the related indenture by operation of law (the “Escrow Merger”). Following the Escrow Merger, California Lyon is the obligor under the initial 7.00% Notes. In January 2015, the Company exchanged 100% of the initial 7.00% Notes for notes that are freely transferable and registered under the Securities Act. On September 15, 2015, California Lyon completed its private placement with registration rights of an additional $50.0 million in aggregate principal amount of its 7.00% Senior Notes due 2022 (the "additional 7.00% Notes", and together with the initial 7.00% Notes, the "7.00 Notes"), at an issue price of 102.0% of their principal amount, plus accrued interest from August 15, 2015, resulting in net proceeds of approximately $50.5 million. In January 2016, the Company exchanged 100% of the additional 7.00% Notes for notes that are freely transferable and registered under the Securities Act. As of December 31, 2016, the outstanding amount of the notes was $350 million, excluding unamortized premium of $0.8 million and deferred loan costs of $4.8 million. The notes bear interest at a rate of 7.00% per annum, payable semiannually in arrears on February 15 and August 15, and mature on August 15, 2022. The 7.00% Notes are unconditionally guaranteed on a joint and several unsecured basis by Parent and certain of its existing and future restricted subsidiaries. The 7.00% Notes and the related guarantees are California Lyon’s and the guarantors’ unsecured senior obligations and rank equally in right of payment with all of California Lyon’s and the guarantors’ existing and future unsecured senior debt, including California Lyon’s $150 million in aggregate principal amount of 5.75% Senior Notes due 2019 and $425 million in aggregate principal amount of 8.5% Senior Notes due 2020, as described above. The 7.00% Notes rank senior in right of payment to all of California Lyon’s and the guarantors’ future subordinated debt. The 7.00% Notes and the guarantees are and will be effectively junior to California Lyon’s and the guarantors’ existing and future secured debt to the extent of the value of the collateral securing such debt. On or after August 15, 2017, California Lyon may redeem all or a portion of the 7.00% Notes upon not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed as percentages of the principal amount) set forth below plus accrued and unpaid interest to the applicable redemption date, if redeemed during the period beginning on each of the dates indicated below:
Prior to August 15, 2017, the 7.00% Notes may be redeemed in whole or in part at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, and accrued and unpaid interest to, the redemption date. In addition, any time prior to August 15, 2017, California Lyon may, at its option on one or more occasions, redeem the 7.00% Notes in an aggregate principal amount not to exceed 35% of the aggregate principal amount of the 7.00% Notes issued prior to such date at a redemption price (expressed as a percentage of principal amount) of 107.00%, plus accrued and unpaid interest to the redemption date, with an amount equal to the net cash proceeds from one or more equity offerings by Parent. Senior Note Covenant Compliance The indentures governing the 5.75% Notes, the 8.5% Notes, and the 7.00% Notes contain covenants that limit the ability of Parent, California Lyon, and their restricted subsidiaries to, among other things: (i) incur or guarantee certain additional indebtedness; (ii) pay dividends, distributions, or repurchase equity or make payments in respect of subordinated indebtedness; (iii) make certain investments; (iv) sell assets; (v) incur liens; (vi) enter into agreements restricting the ability of the Company’s restricted subsidiaries to pay dividends or transfer assets; (vii) enter into transactions with affiliates; (viii) create unrestricted subsidiaries; and (viii) consolidate, merge or sell all or substantially all of its assets. These covenants are subject to a number of important exceptions and qualifications as described in the indentures. The Company was in compliance with all such covenants as of December 31, 2016. GUARANTOR AND NON-GUARANTOR FINANCIAL STATEMENTS The following consolidating financial information includes: (1) Consolidating balance sheets as of December 31, 2016 and 2015; consolidating statements of operations and cash flows for the years ended December 31, 2016, 2015 and 2014, of (a) William Lyon Homes, as the parent, or “Delaware Lyon”, (b) William Lyon Homes, Inc., as the subsidiary issuer, or “California Lyon”, (c) the guarantor subsidiaries, (d) the non-guarantor subsidiaries and (e) William Lyon Homes, Inc. on a consolidated basis; and (2) Elimination entries necessary to consolidate Delaware Lyon, with William Lyon Homes, Inc. and its guarantor and non-guarantor subsidiaries. Delaware Lyons owns 100% of all of its guarantor subsidiaries and all guarantees are full and unconditional, joint and several. As a result, in accordance with Rule 3-10 (d) of Regulation S-X promulgated by the SEC, no separate financial statements are required for these subsidiaries as of December 31, 2016 and 2015, and for the years ended December 31, 2016 2015, and 2014. CONSOLIDATING BALANCE SHEET December 31, 2016 (in thousands)
CONSOLIDATING BALANCE SHEET December 31, 2015 (in thousands)
CONSOLIDATING STATEMENT OF OPERATIONS Year Ended December 31, 2016 (in thousands)
CONSOLIDATING STATEMENT OF OPERATIONS Year Ended December 31, 2015 (in thousands)
CONSOLIDATING STATEMENT OF OPERATIONS Year Ended December 31, 2014 (in thousands)
CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2016 (in thousands)
CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2015 (in thousands)
CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2014 (in thousands)
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Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments In accordance with FASB ASC Topic 820 Fair Value Measurements and Disclosure, (“ASC 820”) the Company is required to disclose the estimated fair value of financial instruments. As of December 31, 2016 and 2015, the Company used the following assumptions to estimate the fair value of each type of financial instrument for which it is practicable to estimate:
The following table excludes cash and cash equivalents, restricted cash, receivables and accounts payable, which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments. The estimated fair values of financial instruments are as follows (in thousands):
ASC 820 establishes a framework for measuring fair value, expands disclosures regarding fair value measurements and defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 requires the Company to maximize the use of observable market inputs, minimize the use of unobservable market inputs and disclose in the form of an outlined hierarchy the details of such fair value measurements. The Company utilized Level 3 inputs to determine the fair value of its Notes Payable, and Level 2 inputs to measure the fair value of its Senior Notes and Subordinated amortizing notes. ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to a fair value measurement are considered to be observable or unobservable in a marketplace. The three levels of the hierarchy are as follows:
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Related Party Transactions |
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Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In December 2016, the Company sold an unentitled remnant parcel of land located in Portland, Oregon for an overall purchase price of approximately $550,000 in cash to the Division President of our Oregon division. The purchase price was supported by an unaffiliated third party appraisal received by the Company, and the Company believes that the transaction was on terms no less favorable than it would have agreed to with unrelated parties. In August 2016, the Company acquired certain lots within a master planned community located in Aurora, Colorado, for an overall purchase price of approximately $9.3 million, from an entity managed by an affiliate of Paulson & Co., Inc. (“Paulson”). WLH Recovery Acquisition LLC, which is affiliated with, and managed by affiliates of, Paulson, holds over 5% of Parent’s outstanding Class A common stock. A portion of the acquisition price for the lots was paid in the form of a seller note with a principal amount of approximately $3.0 million (see Note 9). The Company believes that the transaction, including the terms of the seller note, was on terms no less favorable than it would have agreed to with unrelated parties. In October 2015, the Company acquired certain lots within the master planned community of Lake Las Vegas in Nevada for a cash purchase price of approximately $7.3 million, from an entity managed by an affiliate of Paulson. The Company believes that the transaction was on terms no less favorable than it would have agreed to with unrelated parties. On September 3, 2009, Presley CMR, Inc., a California corporation (“Presley CMR”) and wholly owned subsidiary of California Lyon, entered into an Aircraft Purchase and Sale Agreement (“PSA”) with an affiliate of General William Lyon to sell an aircraft. The PSA provided for an aggregate purchase price for the Aircraft of $8.3 million, (which value was the appraised fair market value of the Aircraft), which consisted of: (i) cash in the amount of $2.1 million to be paid at closing and (ii) a promissory note from the affiliate in the amount of $6.2 million. The note is secured by the Aircraft and required semiannual interest payments to California Lyon of approximately $132,000. The note provided for a maturity date in September 2016. During the year ended December 31, 2016, the promissory note was paid in full by the borrower prior to the September 2016 maturity date, along with all accrued interest to date. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes Since inception, the Company has operated solely within the United States. The following summarizes the provision from income taxes (in thousands):
Income taxes differ from the amounts computed by applying the applicable federal statutory rates due to the following (in thousands):
The Company’s effective income tax rate was 33.9%, and 30.8% for the twelve months ended December 31, 2016 and 2015, respectively. The significant drivers of the effective tax rate are allocation of income to noncontrolling interests, domestic production activities deduction, and state income taxes. Temporary differences giving rise to deferred income taxes consist of the following (in thousands):
Management assesses its deferred tax assets to determine whether all or any portion of the asset is more likely than not unrealizable under ASC 740. The Company is required to establish a valuation allowance for any portion of the asset that management concludes is more likely than not to be unrealizable. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company's assessment considers all evidence, both positive and negative, including the nature, frequency and severity of any current and cumulative losses, taxable income in carry back years, the scheduled reversal of deferred tax liabilities, tax planning strategies, and projected future taxable income in making this assessment. At December 31, 2016 the Company had no valuation allowance recorded. The Company's analysis demonstrated that even under the stress tested forecasts of future results which considered the potential impact of the negative evidence noted above, the Company would continue to generate sufficient taxable income in future periods to realize the majority of its deferred tax assets. This fact, coupled with other positive evidence described above, significantly outweighed the negative evidence and based on this analysis management concluded, in accordance with ASC 740, that it was more likely than not that the majority of its deferred tax assets as of December 31, 2013 would be realized. At December 31, 2016, the Company had no remaining federal net operating loss carryforwards and $56.2 million remaining state net operating loss carryforwards. State net operating loss carryforwards begin to expire in 2031. In addition, as of December 31, 2016, the Company had unused federal and state built-in losses of $52.1 million and $7.5 million, respectively. The 5 year testing period for built-in losses expires in 2017 and the unused built-in loss carryforwards begin to expire at the end of 2032. The Company had AMT credit carryovers of $1.4 million at December 31, 2016, which had an indefinite life. ASC 740 prescribes a recognition threshold and a measurement criterion for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be considered more likely than not to be sustained upon examination by taxing authorities. The Company records interest and penalties related to uncertain tax positions as a component of the provision for income taxes. As of December 31, 2016 and 2015, the Company had no significant uncertain tax positions. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. Due to the Company’s net operating losses incurred, the Company is subject to U.S. federal income tax examinations for calendar tax years ended 2012 through 2015 and forward. The Company is subject to various state income tax examinations for calendar tax years ended 2008 through 2015 and forward. |
Income Per Common Share |
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Income Per Common Share | Income Per Common Share Basic and diluted income per common share for the years ended December 31, 2016, 2015, and 2014 were calculated as follows (in thousands, except number of shares and per share amounts):
(1) Basic weighted average number of shares outstanding includes the minimum number of shares that are issuable under the Company’s Tangible Equity Units. This calculation assumes 5,113,475 shares included from the respective issue dates of the Company’s Tangible Equity Units. See Note 9. |
Equity |
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Dec. 31, 2015 | |
Equity [Abstract] | |
Equity | Equity Common Stock All of our outstanding shares of common stock have been validly issued and fully paid and are non-assessable. The rights of the holders of common stock will be subject to, and may be adversely affected by, the rights of the holders of preferred stock, of which there are no shares issued or outstanding as of December 31, 2016 or 2015. Holders of our common stock have no preference, exchange, sinking fund, redemption or appraisal rights and have no preemptive rights to subscribe for any of our securities, with the exception of holders of our Class B Common Stock, which do have certain preemptive rights. The Company does not intend to declare or pay cash dividends in the foreseeable future. Any determination to pay dividends to holders of our common stock will be at the discretion of our board of directors. The payment of cash dividends is restricted under the terms of certain of the agreements governing our outstanding indebtedness, including the indentures governing our senior notes. Warrants The holders of Class B common stock hold warrants to purchase 1,907,551 shares of Class B common stock at an exercise price of $17.08 per share. The expiration date of the Class B Warrants is February 24, 2022. The Warrants were assigned a value of $1.0 million in conjunction with the adoption of fresh start accounting and are recorded in additional paid-in capital. Tangible Equity Units Unless settled earlier at the holder’s option, each purchase contract will automatically settle on December 1, 2017 (the “mandatory settlement date”), and the Company will deliver not more than 5.2247 shares of Class A common stock and not less than 4.4465 shares of Class A common stock, subject to adjustment, based upon the applicable settlement rate and applicable market value of Class A common stock as defined in the purchase contract. The net proceeds from the issuance of the TEUs were allocated between the purchase contract and amortizing note based on their relative fair values. As a result, $90.7 million was allocated to additional paid-in capital in connection with the issuance of the TEUs during 2014. As of December 31, 2016, the Company has reserved the maximum number of shares issuable under the TEU purchase agreement from it's authorized but unissued shares of Class A common stock. The TEUs also contain a fundamental change provision, whereby holders can elect early settlement in shares or cash at an early settlement rate if the Company undergoes a fundamental change as defined in the TEU agreement. |
Stock Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Based Compensation | Stock Based Compensation In 2012, the Company adopted the William Lyon Homes 2012 Equity Incentive Plan (the “Plan”). The Plan was approved by the Board of Directors and the Company’s stockholders, and is administered by the Compensation Committee of the Board. The provisions of the Plan allow for a variety of stock-based compensation awards, including stock options, stock appreciation rights, or SARs, restricted stock awards, restricted stock unit awards, deferred stock awards, deferred stock unit awards, dividend equivalent awards, stock payment awards and performance awards and other stock-based awards, to certain executives, directors, and non-executives of California Lyon. The Company believes that such awards provide a means of compensation to attract and retain qualified employees and better align the interests of our employees with those of our stockholders. Option awards are granted with an exercise price equal to the market price at the date of grant. Under the Plan, 3,636,363 shares of the Company’s Class A common stock have been reserved for issuance. In 2016, 2015, and 2014, the Company granted an aggregate of 857,460 restricted shares, 493,524 restricted shares, and 392,126 restricted shares, respectively, of Class A common stock of the Company. With respect to restricted stock granted to employees during 2016, 163,269 of such shares are subject to a vesting schedule pursuant to which one-third of the shares will vest on March 1st of each of 2017, 2018 and 2019, 55,464 of such shares are subject to a vesting schedule pursuant to which one-half of the shares will vest on March 1st of each of 2017 and 2018, 3,548 of such shares have a vesting schedule pursuant to which one-half of the shares will vest on August 9th of each of 2017 and 2018, 20,697 of such shares are subject to a vesting schedule pursuant to which 100% of the shares will vest on August 9, 2018, and 7,326 of such shares have a vesting schedule pursuant to which one-half of the shares will vest on September 6th of each of 2017 and 2018, in each case subject to each grantee’s continued service through each vesting date. With respect to the restricted stock awards granted to certain non-employee directors of the Company during 2016, representing 41,064 shares of restricted stock, the awards vest in equal quarterly installments on each of June 1, 2016, September 1, 2016, December 1, 2016 and March 1, 2017, subject to each grantee’s continued service on the board through each vesting date. The Company granted performance-based restricted stock awards to certain executive employees during each of 2016, 2015 and 2014. With respect to the performance based restricted stock awards granted during 2016, 2015 and 2014, the performance based restricted stock awards vests as follows: one-third of the shares of performance based restricted stock will vest on March 1 of each of the first, second, and third years following the grant date, and all but one of such grants were subject to the Company’s achievement of pre-established performance targets as of the end of the given fiscal year, and subject to each grantee's continued service through each vesting date. The remaining grant did not contain a pre-established performance target, but the earned shares for such award were determined by the exercise of the discretion of the Compensation Committee of Parent’s Board of Directors following the end of the 2014 fiscal year, which were determined to be at the target level. During 2016, the Company achieved 96% of its performance target related to certain metrics, resulting in earned shares based on the term of the award agreements, but did not achieve its target level for another metric applicable to certain individuals. During 2015 and 2014, the Company achieved 92% and 97% of its performance targets, respectively. The Company uses the fair value method of accounting for stock options granted to employees which requires us to measure the cost of employee services received in exchange for the stock options, based on the grant date fair value of the award. The fair value of the awards is estimated using the Black-Scholes option-pricing model. The resulting cost is recognized on a straight line basis over the period during which an employee is required to provide service in exchange for the award, usually the vesting period. The fair value of each employee option awarded was estimated on the grant date using the Black-Scholes option-pricing model with the following weighted-average assumptions.
The Black-Scholes option-pricing model requires inputs such as the expected dividend yield, risk-free interest rate, expected term and expected volatility. Further, the forfeiture rate also affects the amount of aggregate compensation. These inputs are subjective and generally require significant judgment. The risk-free interest rate that we use is based on the United States Treasury yield in effect at the time of grant for zero coupon United States Treasury notes with maturities approximating each grant’s expected life. Given our limited history with employee exercise patterns, we use the “simplified” method in estimating the expected term for our employee grants. The “simplified” method is calculated as the average of the time-to-vesting and the contractual life of the options. Our expected volatility was derived from the historical volatilities of our common stock and several unrelated public companies within the homebuilding industry, because we had insufficient trading history on our common stock at the time the grants were valued. When making the selections of our peer companies within the homebuilding industry to be used in the volatility calculation, we also considered the stage of development, size and financial leverage of potential comparable companies. We estimate our forfeiture rate based on an analysis of our actual forfeitures and will continue to evaluate the appropriateness of the forfeiture rate based on actual forfeiture experience, analysis of employee turnover behavior and other factors. As of December 31, 2016, the Company has 1,083,206 shares available for grant under the Plan. Summary of Stock Option Activity Stock option activity under the Plan for the years ended December 31, 2016, 2015, and 2014 was as follows:
The following table summarizes information about stock options granted to executives, directors, and non-executives that are outstanding and exercisable at December 31, 2016:
Summary of Restricted Shares Activity During the years ended December 31, 2016, 2015, and 2014, the Company had the following activity relating to grants of time based restricted common stock:
(1) Represents shares that were canceled as result of terminations of employment. During the years ended December 31, 2016, 2015, and 2014 the Company had the following activity relating to grants of performance based restricted common stock:
(1) Represents shares that were canceled as a result of achievement of performance targets as outlined in the respective grant agreement at below the maximum levels, as well as a result of terminations of employment. In conjunction with the issuance of the equity grants in the years ended December 31, 2016, 2015 and 2014, the Company recorded stock based compensation expense of $6.4 million, $6.6 million, and $6.1 million, respectively, which is included in general and administrative expense in the consolidated statement of operations. As of December 31, 2016, $7.0 million of total unrecognized stock based compensation expense is expected to be recognized as an expense by the Company in the future over a weighted average period of 1.1 years. The total value of restricted stock awards which fully vested during the years ended December 31, 2016, 2015 and 2014 was $5.1 million, $6.0 million, and $3.8 million, respectively. For the years ended December 31, 2016, 2015 and 2014, the Company recognized an income tax benefit of $4.1 million, $3.5 million and $2.6 million related to stock based compensation, respectively. |
Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies The Company’s commitments and contingent liabilities include the usual obligations incurred by real estate developers in the normal course of business. In the opinion of management, these matters will not have a material effect on the Company’s consolidated financial position, results of operations or cash flows. The Company is a defendant in various lawsuits related to its normal business activities. We believe that the accruals we have recorded for probable and reasonably estimable losses with respect to these proceedings are adequate and that, as of December 31, 2016, it was not reasonably possible that an additional material loss had been incurred in an amount in excess of the estimated amounts already recognized on our consolidated financial statements. We evaluate our accruals for litigation and regulatory proceedings, and as appropriate, adjust them to reflect (i) the facts and circumstances known to us at the time, including information regarding negotiations, settlements, rulings and other relevant events and developments; (ii) the advice and analyses of counsel; and (iii) the assumptions and judgment of management. Similar factors and considerations are used in establishing new accruals for proceedings as to which losses have become probable and reasonably estimable at the time an evaluation is made. The outcome of any of these proceedings, including the defense and other litigation-related costs and expenses we may incur, however, is inherently uncertain and could differ significantly from the estimate reflected in a related accrual, if made. Therefore, it is possible that the ultimate outcome of any proceeding, if in excess of a related accrual or if no accrual had been made, could be material to our consolidated financial statements. We have non-cancelable operating leases primarily associated with our office facilities. Rent expense under cancelable and non-cancelable operating leases totaled $3.9 million, $3.8 million, and $3.1 million, for the years ended December 31, 2016, 2015, and 2014, respectively, and is included in general and administrative expense in our consolidated statements of operations for the respective periods. The table below shows the future minimum payments under non-cancelable operating leases at December 31, 2016 (in thousands).
In some jurisdictions in which the Company develops and constructs property, assessment district bonds are issued by municipalities to finance major infrastructure improvements. As a land owner benefited by these improvements, the Company is responsible for the assessments on its land. When properties are sold, the assessments are either prepaid or the buyers assume the responsibility for the related assessments. Assessment district bonds are recorded as liabilities in the Company’s consolidated balance sheet, if the amounts are fixed and determinable. As of December 31, 2016 and 2015, the Company is not obligated under any assessment district bonds. The Company also had outstanding performance and surety bonds of $196.6 million at December 31, 2016 related principally to its obligations for site improvements at various projects. The Company does not believe that draws upon these bonds, if any, will have a material effect on the Company’s financial position, results of operations or cash flows. As of December 31, 2016, the Company had $287.3 million of project commitments relating to the construction of projects. The Company has provided unsecured environmental indemnities to certain lenders, joint venture partners and land sellers. In each case, the Company has performed due diligence on the potential environmental risks including obtaining an independent environmental review from outside environmental consultants. These indemnities obligate the Company to reimburse the guaranteed parties for damages related to environmental matters. There is no term or damage limitation on these indemnities; however, if an environmental matter arises, the Company could have recourse against other previous owners. See Note 9 for additional information relating to the Company’s guarantee arrangements. The Company has entered into various purchase option agreements with third parties to acquire land. As of December 31, 2016, the Company has made non-refundable deposits of $50.4 million. The Company is under no obligation to purchase the land, but would forfeit remaining deposits if the land were not purchased. The total purchase price under the purchase option agreements is $418.9 million as of December 31, 2016. |
Subsequent Events |
12 Months Ended |
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Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Senior Notes Refinancing Transaction On January 31, 2017, California Lyon completed the sale to certain purchasers of $450.0 million in aggregate principal amount of 5.875% Senior Notes due 2025, or the 5.875% Notes, in a private placement with registration rights. Parent, through California Lyon, used the net proceeds from the 5.875% Notes offering to purchase $395.6 million of the outstanding aggregate principal amount of the 8.5% Notes, pursuant to a cash tender offer and consent solicitation, and subsequently used the remaining proceeds, together with cash on hand, for the retirement of the remaining outstanding 8.5% Notes, such that the entire aggregate $425.0 million of previously outstanding 8.5% Notes is now retired and extinguished. The Company incurred certain costs related to the early extinguishment of debt of the 8.5% Notes during the first quarter of 2017 in an amount of approximately $21.8 million. Amendment to Revolving Credit Facility In connection with the refinancing transaction described immediately above, the Company entered into an amendment to its Revolving Credit Facility effective as of January 27, 2017. The amendment modifies the definition of Tangible Net Worth for purposes of calculating the Leverage Ratio covenant under the Second Amended Facility, so as to exclude any reduction in Tangible Net Worth (as defined therein) that occurs as a result of the costs related to payment of any call premium or any other costs associated with the refinancing transaction and the redemption of outstanding 8.5% Notes. Share Purchase Program Authorization On February 17, 2017, the Board of Directors of the Company approved a stock repurchase program, authorizing the repurchase of up to an aggregate of $50 million of its Class A common stock. The program allows the Company to repurchase shares of Class A common stock from time to time for cash in the open market or privately negotiated transactions or other transactions, as market and business conditions warrant and subject to applicable legal requirements. The stock repurchase program does not obligate the Company to repurchase any particular amount of common stock, and it could be modified, suspended or discontinued at any time. As of this reporting date, no shares have been repurchased under this program. No other events have occurred subsequent to December 31, 2016, that would require recognition or disclosure in the Company’s financial statements. |
Unaudited Summarized Quarterly Financial Information |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaudited Summarized Quarterly Financial Information | Unaudited Summarized Quarterly Financial Information Summarized unaudited quarterly financial information for the years ended December 31, 2016 and 2015 is as follows (in thousands except per share data):
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Basis of Presentation and Significant Accounting Policies (Policies) |
12 Months Ended |
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Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The preparation of the Company’s financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of the assets and liabilities as of December 31, 2016 and 2015 and revenues and expenses for the years ended December 31, 2016, 2015, and 2014. Accordingly, actual results could differ from those estimates. The significant accounting policies using estimates include real estate inventories and cost of sales, impairment of real estate inventories, warranty reserves, loss contingencies, sales and profit recognition, accounting for variable interest entities, valuation of deferred tax assets, and the fair value of assets acquired and liabilities assumed in connection with acquisition accounting. The current economic environment increases the uncertainty inherent in these estimates and assumptions. The consolidated financial statements include the accounts of the Company and all majority-owned and controlled subsidiaries and joint ventures, and certain joint ventures and other entities which have been determined to be variable interest entities in which the Company is considered the primary beneficiary (see Note 3). The accounting policies of the joint ventures are substantially the same as those of the Company. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Real Estate Inventories | Real Estate Inventories Real estate inventories are carried at cost net of impairment losses, if any. Real estate inventories consist primarily of land deposits, land and land under development, homes completed and under construction, and model homes. All direct and indirect land costs, offsite and onsite improvements and applicable interest and other carrying charges are capitalized to real estate projects during periods when the project is under development. Land, offsite costs and all other common costs are allocated to land parcels benefited based upon relative fair values before construction. Onsite construction costs and related carrying charges (principally interest and property taxes) are allocated to the individual homes within a phase based upon the relative sales value of the homes. The Company relieves its accumulated real estate inventories through cost of sales for the estimated cost of homes sold. Selling expenses and other marketing costs are expensed in the period incurred. The Company accounts for its real estate inventories under FASB ASC 360 Property, Plant, & Equipment (“ASC 360”). ASC 360 requires impairment losses to be recorded on real estate inventories when indicators of impairment are present and the undiscounted cash flows estimated to be generated by real estate inventories are less than the carrying amount of such assets. Indicators of impairment include a decrease in demand for housing due to softening market conditions, competitive pricing pressures, which reduce the average sales price of homes including an increase in sales incentives offered to buyers, slowing sales absorption rates (calculated as net new home orders divided by average sales locations for a given period), decreases in home values in the markets in which the Company operates, significant decreases in gross margins and a decrease in project cash flows for a particular project. For land, construction in progress, completed inventory, including model homes, and inventories not owned, the Company estimates expected cash flows at the project level by maintaining current budgets using recent historical information and current market assumptions. The Company updates project budgets and cash flows of each real estate project on an as needed basis to determine whether the estimated remaining undiscounted future cash flows of the project are more or less than the carrying amount (net book value) of the asset. If the undiscounted cash flows are more than the net book value of the project, then there is no impairment. If the undiscounted cash flows are less than the net book value of the asset, then the asset is deemed to be impaired and is written-down to its fair value. Fair value represents the amount at which an asset could be bought or sold in a current transaction between willing parties (i.e., other than a forced or liquidation sale). Management determines the estimated fair value of each project by determining the present value of estimated future cash flows at discount rates that are commensurate with the risk of each project and each domain, market or sub-market or may use recent appraisals if they more accurately reflect fair value. The estimation process involved in determining if assets have been impaired and in the determination of fair value is inherently uncertain because it requires estimates of future revenues and costs, as well as future events and conditions. Estimates of revenues and costs are supported by the Company’s budgeting process, and are based on recent sales in backlog, pricing required to get the desired pace of sales, pricing of competitive projects, incentives offered by competitors and current estimates of costs of development and construction or current appraisals. The assumptions and judgments used by the Company in the estimation process to determine the future undiscounted cash flows of a project and its fair value are inherently uncertain and require a substantial degree of judgment. The realization of the Company’s real estate inventories is dependent upon future uncertain events and market conditions. Due to the subjective nature of the estimates and assumptions used in determining the future cash flows of a project, actual results could differ materially from current estimates. Management assesses land deposits for impairment when estimated land values are deemed to be less than the agreed upon contract price. The Company considers changes in market conditions, the timing of land purchases, the ability to renegotiate with land sellers, the terms of the land option contracts in question, the availability and best use of capital, and other factors. The Company records abandoned land deposits and related pre-acquisition costs in cost of sales-lots, land and other in the consolidated statements of operations in the period that it is abandoned. A provision for warranty costs relating to the Company’s limited warranty plans is included in cost of sales and accrued expenses at the time the sale of a home is recorded. The Company generally reserves a percent of the sales price of its homes, or a set amount per home closed depending on operating segment, against the possibility of future charges relating to its warranty programs and similar potential claims. Factors that affect the Company’s warranty liability include the number of homes under warranty, historical and anticipated rates of warranty claims, and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary. |
Construction Services | Construction Services The Company accounts for construction management agreements using the Percentage of Completion Method in accordance with FASB ASC Topic 605 Revenue Recognition (“ASC 605”). Under ASC 605, the Company records revenues and expenses as a contracted project progresses, and based on the percentage of costs incurred to date compared to the total estimated costs of the contract. The Company entered into construction management agreements to build, sell and market homes in certain communities. For such services, the Company will receive fees (generally 3 to 5 percent of the sales price, as defined) and may, under certain circumstances, receive additional compensation if certain financial thresholds are achieved. |
Financial Instruments | Financial Instruments Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash investments, receivables, escrow proceeds receivable, our indebtedness, and deposits. The Company typically places its cash investments in investment grade short-term instruments. Deposits, included in other assets, are due from municipalities or utility companies and are generally collected from such entities through fees assessed to other developers. The Company is an issuer of, or subject to, financial instruments with off-balance sheet risk in the normal course of business which exposes it to credit risks. These financial instruments include letters of credit and obligations in connection with assessment district bonds. These off-balance sheet financial instruments are described in more detail in Note 16. |
Cash and Cash Equivalents | Cash and Cash Equivalents Short-term investments with a maturity of three months or less when purchased are considered cash equivalents. The Company’s cash and cash equivalents balance exceeds federally insurable limits as of December 31, 2016 and 2015. The Company monitors the cash balances in its operating accounts; however, these cash balances could be negatively impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. To date, the Company has experienced no loss or lack of access to cash in its operating accounts. |
Restricted Cash | Restricted Cash Restricted cash consists of deposits made by the Company to a bank account as collateral for the use of letters of credit to guarantee the Company’s financial obligations under certain other contractual arrangements in the normal course of business. |
Goodwill | Goodwill In accordance with the provisions of ASC 350, Intangibles, Goodwill and Other, goodwill is tested for impairment on an annual basis, or more frequently if events or circumstances indicate that goodwill may be impaired. The impairment test is performed at the reporting unit level, and an impairment loss is recognized to the extent that the carrying amount of goodwill exceeds the fair value. |
Intangible Assets | Intangible Assets Recorded intangible assets primarily relate to brand names of acquired entities, construction management contracts, homes in backlog, and joint venture management fee contracts recorded in conjunction with FASB ASC Topic 852, Reorganizations ("ASC 852"), or FASB ASC Topic 805, Business Combinations ("ASC 805"). All intangible assets with the exception of those relating to brand names were valued based on expected cash flows related to home closings, and the asset is amortized on a per unit basis, as homes under the contracts close. Our brand name intangible assets are deemed to have an indefinite useful life. |
Income (loss) per common share | Income per common share The Company computes income per common share in accordance with FASB ASC Topic 260, Earnings per Share, which requires income per common share for each class of stock to be calculated using the two-class method. The two-class method is an allocation of income between the holders of common stock and a company’s participating security holders. Basic income per common share is computed by dividing income or loss available to common stockholders by the weighted average number of shares of common stock outstanding. For purposes of determining diluted income per common share, basic income per common share is further adjusted to include the effect of potential dilutive common shares outstanding. |
Income Taxes | Income Taxes Income taxes are accounted for under the provisions of Financial Accounting Standards Board ASC 740, Income Taxes, using an asset and liability approach. Deferred income taxes reflect the net effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and operating loss and tax credit carryforwards measured by applying currently enacted tax laws. A valuation allowance would be provided to reduce net deferred tax assets if it were determined that it is more likely than not to be realized. ASC 740 prescribes a recognition threshold and a measurement criterion for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be considered “more-likely-than-not” to be sustained upon examination by taxing authorities. In addition, the Company has elected to recognize interest and penalties related to uncertain tax positions in the income tax provision. |
Impact of Recent Accounting Pronouncements | Impact of Recent Accounting Pronouncements |
Reclassifications | Reclassifications Certain balances on the financial statements and certain amounts presented in the notes have been reclassified in order to conform to current year presentation. |
Basis of Presentation and Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes in Warranty Liability | Changes in the Company’s warranty liability for the years ended December 31, 2016, 2015, and 2014 are as follows (in thousands):
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Summary of Interest Activity | Interest activity for the years ended December 31, 2016, 2015, and 2014 are as follows (in thousands):
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Acquisition of Polygon Northwest Homes (Tables) |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reconciliation of Consideration Transferred as of Acquisition Date | A reconciliation of the consideration transferred as of the acquisition date is as follows:
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Summary of Preliminary Amounts of Acquired Assets and Liabilities Recorded at Fair Value | The following table summarizes the amounts for acquired assets and liabilities recorded at their fair values as of the acquisition date (in thousands):
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Summary of Unaudited Pro Forma Amounts | The following table presents unaudited pro forma amounts for the year ended December 31, 2014 (amounts in thousands, except per share data):
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Investments in Unconsolidated Joint Ventures (Tables) |
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Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Unaudited Financials for Unconsolidated Joint Ventures | The table set forth below summarizes the combined unaudited balance sheets for our unconsolidated joint ventures that we accounted for under the equity method (in thousands):
The table set forth below summarizes the combined unaudited statements of operations for our unconsolidated mortgage joint ventures that we accounted for under the equity method (in thousands):
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Segment Information (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Segment Financial Information Relating to Operations | Segment financial information relating to the Company’s operations was as follows (in thousands):
(1) Operating revenue in the California segment includes construction services revenue.
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Schedule of Homebuilding Assets |
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Real Estate Inventories (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Real Estate Inventories | Real estate inventories consist of the following (in thousands):
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Goodwill (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill by Operating Segment | Goodwill by operating segment as of December 31, 2016 and 2015 is as follows (in thousands):
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Intangibles (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Value and Accumulated Amortization of Intangible Assets | The carrying value and accumulated amortization of intangible assets at December 31, 2016 and December 31, 2015, by major intangible asset category, is as follows (in thousands):
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Senior Notes, Secured, and Subordinated Indebtedness (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Senior Notes, Secured, and Subordinated Indebtedness | The Company's senior notes, secured, and subordinated indebtedness consists of the following (in thousands):
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Schedule of Maturities of Notes Payable, Senior Unsecured Credit Facility, Subordinated Amortizing Notes and Senior Notes |
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Summary of Senior Notes Redemption Prices Percentage | On or after August 15, 2017, California Lyon may redeem all or a portion of the 7.00% Notes upon not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed as percentages of the principal amount) set forth below plus accrued and unpaid interest to the applicable redemption date, if redeemed during the period beginning on each of the dates indicated below:
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Consolidating Balance Sheet | CONSOLIDATING BALANCE SHEET December 31, 2016 (in thousands)
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Consolidating Statement of Operations | CONSOLIDATING STATEMENT OF OPERATIONS Year Ended December 31, 2016 (in thousands)
CONSOLIDATING STATEMENT OF OPERATIONS Year Ended December 31, 2015 (in thousands)
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Consolidating Statement of Cash Flows | CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2014 (in thousands)
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Fair Value of Financial Instruments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Estimated Fair Values of Financial Instruments | The estimated fair values of financial instruments are as follows (in thousands):
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of (Provision) Benefit from Income Taxes | The following summarizes the provision from income taxes (in thousands):
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Schedule of Difference in Income Taxes from Amounts Computed by Applying Federal Statutory Rates | Income taxes differ from the amounts computed by applying the applicable federal statutory rates due to the following (in thousands):
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Summary of Temporary Differences Giving Rise to Deferred Income Taxes | Temporary differences giving rise to deferred income taxes consist of the following (in thousands):
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Income Per Common Share (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Basic and Diluted (Loss) Income Per Common Share | Basic and diluted income per common share for the years ended December 31, 2016, 2015, and 2014 were calculated as follows (in thousands, except number of shares and per share amounts):
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Stock Based Compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Weighted-Average Assumptions for Fair Value of Employee Options Granted | The fair value of each employee option awarded was estimated on the grant date using the Black-Scholes option-pricing model with the following weighted-average assumptions.
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Summary of Stock Option Activity | Stock option activity under the Plan for the years ended December 31, 2016, 2015, and 2014 was as follows:
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Summary of Stock Options Outstanding and Exercisable | The following table summarizes information about stock options granted to executives, directors, and non-executives that are outstanding and exercisable at December 31, 2016:
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Restricted Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Restricted Shares Activity | During the years ended December 31, 2016, 2015, and 2014, the Company had the following activity relating to grants of time based restricted common stock:
(1) Represents shares that were canceled as result of terminations of employment. |
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Performance-Based Restricted Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Restricted Shares Activity | During the years ended December 31, 2016, 2015, and 2014 the Company had the following activity relating to grants of performance based restricted common stock:
(1) Represents shares that were canceled as a result of achievement of performance targets as outlined in the respective grant agreement at below the maximum levels, as well as a result of terminations of employment. |
Commitments and Contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Payments Under Non-Cancelable Operating Leases | The table below shows the future minimum payments under non-cancelable operating leases at December 31, 2016 (in thousands).
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Unaudited Summarized Quarterly Financial Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarized Unaudited Quarterly Financial Information | Summarized unaudited quarterly financial information for the years ended December 31, 2016 and 2015 is as follows (in thousands except per share data):
|
Basis of Presentation and Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Class of Stock [Line Items] | |||
Percentage of home sale price reserved | 1.00% | ||
Additional construction fee compensation | $ 0.2 | $ 1.9 | $ 3.9 |
Minimum | |||
Class of Stock [Line Items] | |||
Percentage of revenue generated by contractual services | 3.00% | ||
Maximum | |||
Class of Stock [Line Items] | |||
Percentage of revenue generated by contractual services | 5.00% |
Basis of Presentation and Significant Accounting Policies - Summary of Changes in Warranty Liability (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Warranty liability, beginning of period | $ 14,173 | $ 18,117 | $ 18,155 | $ 14,935 |
Warranty provision during period | 8,237 | 7,423 | 9,601 | |
Warranty payments during period | 12,334 | 8,555 | 7,409 | |
Warranty charges related to construction services projects | 153 | 1,094 | 1,028 | |
Warranty liability, end of period | $ 14,173 | $ 18,117 | $ 18,155 |
Basis of Presentation and Significant Accounting Policies - Summary of Interest Activity (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Accounting Policies [Abstract] | |||
Interest incurred | $ 83,218 | $ 76,221 | $ 65,560 |
Less: Interest capitalized | (83,218) | (76,221) | (65,560) |
Interest expense, net of amounts capitalized | 0 | 0 | 0 |
Cash paid for interest | $ 79,734 | $ 72,254 | $ 46,779 |
Basis of Presentation and Significant Accounting Policies - Recent Accountinng Pronouncements (Details) - Senior Notes $ in Thousands |
Dec. 31, 2016
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
Deferred loan costs | $ 10,793 |
5 3/4% Senior Notes due 2019 | |
Debt Instrument [Line Items] | |
Deferred loan costs | 1,200 |
8 1/2% Senior Notes due 2020 | |
Debt Instrument [Line Items] | |
Deferred loan costs | 4,800 |
7% Senior Notes due 2022 | |
Debt Instrument [Line Items] | |
Deferred loan costs | $ 4,800 |
Acquisition of Polygon Northwest Homes - Schedule of Reconciliation of Consideration Transferred as of Acquisition Date (Details) - Polygon Northwest Homes $ in Thousands |
Aug. 12, 2014
USD ($)
|
---|---|
Business Acquisition [Line Items] | |
Purchase consideration | $ 552,252 |
Net proceeds received from Polygon inventory involved in land banking transactions | (59,834) |
Total consideration transferred | $ 492,418 |
Acquisition of Polygon Northwest Homes - Summary of Preliminary Amounts of Acquired Assets and Liabilities Recorded at Fair Value (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
Aug. 12, 2014 |
---|---|---|---|
Assets Acquired | |||
Goodwill | $ 66,902 | $ 66,902 | |
Polygon Northwest Homes | |||
Assets Acquired | |||
Real estate inventories | $ 435,054 | ||
Goodwill | 52,693 | ||
Intangible asset - brand name | 6,700 | ||
Joint venture in mortgage business | 2,000 | ||
Other | 545 | ||
Total Assets | 496,992 | ||
Liabilities Assumed | |||
Accounts payable | 603 | ||
Accrued expenses | 3,971 | ||
Total liabilities | 4,574 | ||
Net assets acquired | $ 492,418 |
Acquisition of Polygon Northwest Homes - Summary of Unaudited Pro Forma Amounts (Details) - Polygon Northwest Homes |
12 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
$ / shares
| |
Business Acquisition [Line Items] | |
Operating revenues | $ | $ 1,048,600 |
Net income available to common stockholders | $ | $ 53,400 |
Income per share - basic (in USD per share) | $ / shares | $ 1.68 |
Income per share - diluted (in USD per share) | $ / shares | $ 1.61 |
Variable Interest Entities and Noncontrolling Interests - Narrative (Details) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2016
USD ($)
joint_venture
|
Dec. 31, 2015
USD ($)
joint_venture
|
|
Noncontrolling Interest [Line Items] | ||
Number of joint ventures | joint_venture | 11 | 8 |
Percentage of profits and cash flows receivable from joint ventures | 50.00% | |
Number of joint ventures formed | joint_venture | 3 | |
Consolidated variable interest entities, assets | $ 204.8 | $ 155.0 |
Consolidated variable interest entities, liabilities | 107.3 | 97.1 |
Cash | ||
Noncontrolling Interest [Line Items] | ||
Consolidated variable interest entities, assets | 5.8 | 2.8 |
Real Estate | ||
Noncontrolling Interest [Line Items] | ||
Consolidated variable interest entities, assets | $ 200.7 | $ 148.6 |
Investments in Unconsolidated Joint Ventures Investments in Unconsolidated Joint Ventures - Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Schedule of Equity Method Investments [Line Items] | |||||||||||
Total operating revenue | $ 473,221 | $ 342,628 | $ 325,059 | $ 261,295 | $ 397,162 | $ 244,311 | $ 247,740 | $ 189,715 | $ 1,406,040 | $ 1,104,052 | $ 894,753 |
Cost of sales | (1,312,072) | (1,023,805) | (819,280) | ||||||||
Income of unconsolidated joint ventures | 93,968 | 80,247 | 75,473 | ||||||||
Equity in income of unconsolidated joint ventures | 5,606 | 3,239 | 555 | ||||||||
Other assets, net | 17,283 | 21,017 | 17,283 | 21,017 | |||||||
Total assets | 1,998,151 | 1,923,450 | 1,998,151 | 1,923,450 | |||||||
Accounts payable | 74,282 | 75,881 | 74,282 | 75,881 | |||||||
Accrued expenses | 79,790 | 70,324 | 79,790 | 70,324 | |||||||
Total liabilities and equity | 1,998,151 | 1,923,450 | 1,998,151 | 1,923,450 | |||||||
Joint Ventures | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Total operating revenue | 21,156 | 12,314 | 2,015 | ||||||||
Cost of sales | (10,407) | (5,842) | (906) | ||||||||
Income of unconsolidated joint ventures | 10,749 | 6,472 | $ 1,109 | ||||||||
Cash | 10,208 | 6,340 | 10,208 | 6,340 | |||||||
Loans held for sale | 18,791 | 29,312 | 18,791 | 29,312 | |||||||
Accounts receivable | 764 | 309 | 764 | 309 | |||||||
Other assets, net | 56 | 390 | 56 | 390 | |||||||
Total assets | 29,819 | 36,351 | 29,819 | 36,351 | |||||||
Accounts payable | 694 | 651 | 694 | 651 | |||||||
Accrued expenses | 1,026 | 774 | 1,026 | 774 | |||||||
Credit lines payable | 17,748 | 27,350 | 17,748 | 27,350 | |||||||
Other liabilities | 17 | 515 | 17 | 515 | |||||||
Members equity | 10,334 | 7,061 | 10,334 | 7,061 | |||||||
Total liabilities and equity | $ 29,819 | $ 36,351 | $ 29,819 | $ 36,351 |
Segment Information - Narrative (Details) |
12 Months Ended |
---|---|
Dec. 31, 2016
segment
| |
Segment Reporting [Abstract] | |
Segment Reporting Information, Description of Products and Services | 1 |
Number of operating segments | 6 |
Segment Information - Schedule of Homebuilding Assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
||
---|---|---|---|---|
Total assets: | ||||
Total assets | $ 1,998,151 | $ 1,923,450 | ||
California | ||||
Total assets: | ||||
Total assets | 716,955 | 721,066 | ||
Arizona | ||||
Total assets: | ||||
Total assets | 191,581 | 197,828 | ||
Nevada | ||||
Total assets: | ||||
Total assets | 189,248 | 183,019 | ||
Colorado | ||||
Total assets: | ||||
Total assets | 124,580 | 118,307 | ||
Washington | ||||
Total assets: | ||||
Total assets | 343,973 | 249,615 | ||
Oregon | ||||
Total assets: | ||||
Total assets | 238,766 | 228,183 | ||
Corporate | ||||
Total assets: | ||||
Total assets | [1] | $ 193,048 | $ 225,432 | |
|
Real Estate Inventories - Summary of Real Estate Inventories (Details) - USD ($) |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2016 |
|
Real estate inventories: | ||||
Land deposits | $ 61,514,000 | $ 50,429,000 | ||
Land and land under development | 1,013,650,000 | 1,069,001,000 | ||
Homes completed and under construction | 495,966,000 | 545,310,000 | ||
Model homes | 103,976,000 | 107,258,000 | ||
Total | 1,675,106,000 | $ 1,771,998,000 | ||
Impairment loss on real estate assets | $ 0 | $ 0 | $ 0 |
Goodwill - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Goodwill [Line Items] | ||||
Goodwill | $ 66,902 | $ 66,902 | ||
Excess of enterprice value from emergence from bankruptcy over fair value of net tangible and identifiable intangible assets | $ 14,200 | $ 14,200 | ||
Fair Value Adjustment to Inventory | ||||
Goodwill [Line Items] | ||||
Measurement period adjustment, increase in goodwill | $ 6,000 |
Goodwill - Schedule of Goodwill by Operating Segment (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Goodwill [Line Items] | ||
Total | $ 66,902 | $ 66,902 |
California | ||
Goodwill [Line Items] | ||
Total | 6,801 | 6,801 |
Arizona | ||
Goodwill [Line Items] | ||
Total | 5,951 | 5,951 |
Nevada | ||
Goodwill [Line Items] | ||
Total | 1,457 | 1,457 |
Colorado | ||
Goodwill [Line Items] | ||
Total | 0 | 0 |
Washington | ||
Goodwill [Line Items] | ||
Total | 31,200 | 31,200 |
Oregon | ||
Goodwill [Line Items] | ||
Total | $ 21,493 | $ 21,493 |
Intangibles - Schedule of Carrying Value and Accumulated Amortization of Intangible Assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (4,640) | $ (4,640) |
Net Carrying Amount | 6,700 | 6,700 |
Brand Name - Polygon Northwest Homes | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Value | 6,700 | 6,700 |
Accumulated Amortization | 0 | 0 |
Net Carrying Amount | $ 6,700 | $ 6,700 |
Intangibles - Narrative (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense related to intangible assets | $ 0 | $ 957 | $ 1,814 |
Senior Notes, Secured, and Subordinated Indebtedness - Schedule of Senior Notes, Secured, and Subordinated Indebtedness (Details) - USD ($) $ in Thousands |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Sep. 03, 2009 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Dec. 03, 2014 |
Aug. 11, 2014 |
Nov. 08, 2012 |
|
Notes payable: | ||||||||
Total notes payable | $ 155,768 | $ 175,181 | ||||||
Total Debt | 1,080,650 | 1,105,776 | ||||||
Debt instrument, maturity date | Sep. 30, 2016 | |||||||
Subordinated amortizing notes | ||||||||
Notes payable: | ||||||||
Total Debt | 7,225 | 14,066 | ||||||
Stated interest rate | 5.50% | |||||||
5 3/4% Senior Notes due 2019 | ||||||||
Notes payable: | ||||||||
Total Debt | $ 148,826 | $ 148,295 | ||||||
Stated interest rate | 5.75% | 5.75% | 5.75% | |||||
8 1/2% Senior Notes due 2020 | ||||||||
Notes payable: | ||||||||
Total Debt | $ 422,817 | $ 422,896 | ||||||
Stated interest rate | 8.50% | 8.50% | ||||||
7% Senior Notes due 2022 | ||||||||
Notes payable: | ||||||||
Total Debt | $ 346,014 | $ 345,338 | ||||||
Stated interest rate | 7.00% | 7.00% | 7.00% | |||||
Construction Notes Payable | ||||||||
Notes payable: | ||||||||
Total notes payable | $ 102,076 | $ 110,181 | ||||||
Seller Financing | ||||||||
Notes payable: | ||||||||
Total notes payable | 24,692 | 0 | ||||||
Line of Credit | ||||||||
Notes payable: | ||||||||
Total notes payable | $ 29,000 | $ 65,000 | ||||||
Senior Notes | 5 3/4% Senior Notes due 2019 | ||||||||
Notes payable: | ||||||||
Stated interest rate | 5.75% | 5.75% | 5.75% | |||||
Debt instrument, maturity date | Apr. 15, 2019 | |||||||
Senior Notes | 8 1/2% Senior Notes due 2020 | ||||||||
Notes payable: | ||||||||
Stated interest rate | 8.50% | 8.50% | 8.50% | |||||
Debt instrument, maturity date | Nov. 15, 2020 | Nov. 15, 2020 | ||||||
Senior Notes | 7% Senior Notes due 2022 | ||||||||
Notes payable: | ||||||||
Stated interest rate | 7.00% | 7.00% | 7.00% | |||||
Debt instrument, maturity date | Aug. 15, 2022 |
Senior Notes, Secured, and Subordinated Indebtedness - Schedule of Maturities of Notes Payable, Senior Unsecured Credit Facility, Subordinated Amortizing Notes and Senior Notes (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Debt Instrument [Line Items] | ||
Long-term Debt | $ 1,087,993 | |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 50,805 | |
Notes payable | 155,768 | $ 175,181 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 62,785 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 199,403 | |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 425,000 | |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 0 | |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 350,000 | |
Construction Notes Payable Agreement | ||
Debt Instrument [Line Items] | ||
Notes payable | 275,600 | |
Outstanding | 102,100 | |
November 2015 Construction Notes Payable Due 2017 | Construction Notes Payable Agreement | ||
Debt Instrument [Line Items] | ||
Notes payable | 42,500 | |
Outstanding | $ 20,600 | |
Current Rate | 4.75% | |
August 2015 Construction Notes Payable Due 2017 | Construction Notes Payable Agreement | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 14,200 | |
Outstanding | $ 0 | |
Current Rate | 4.50% | |
August 2015 Construction Notes Payable Due 2017 | Construction Notes Payable Agreement | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 37,500 | |
Outstanding | $ 0 | |
Current Rate | 4.75% | |
July 2015 Construction Notes Payable Due 2018 | Construction Notes Payable Agreement | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 22,500 | |
Outstanding | $ 13,800 | |
Current Rate | 4.25% | |
April 2015 Construction Notes Payable Due 2017 | Construction Notes Payable Agreement | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 18,500 | |
Outstanding | $ 2,300 | |
Current Rate | 4.25% | |
November 2014 Construction Notes Payable Due 2017 | Construction Notes Payable Agreement | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 24,000 | |
Outstanding | $ 7,200 | |
Current Rate | 4.25% | |
November 2014 Construction Notes Payable Due 2017 | Construction Notes Payable Agreement | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 22,000 | |
Outstanding | $ 9,400 | |
Current Rate | 4.25% | |
March 2014 Construction Notes Payable Due 2016 | Construction Notes Payable Agreement | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 26,000 | |
Outstanding | $ 9,900 | |
Current Rate | 3.71% |
Senior Notes, Secured, and Subordinated Indebtedness - Schedule of Maturities of Notes Payable, Senior Unsecured Credit Facility, Subordinated Amortizing Notes and Senior Notes (Footnote) (Details) |
12 Months Ended |
---|---|
Dec. 31, 2016 | |
December 2013, March 2014, August 2015, November 2015 Construction Notes Payable | London Interbank Offered Rate (LIBOR) | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 3.00% |
December 2013, March 2014, August 2015, November 2015 Construction Notes Payable | Prime Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.00% |
November 2014, April 2015, July 2015 Construction Notes Payable | Prime Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 0.50% |
Senior Notes, Secured, and Subordinated Indebtedness - Narrative (Details) |
12 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2016
USD ($)
|
Sep. 15, 2015
USD ($)
|
Mar. 31, 2015 |
Nov. 21, 2014
$ / shares
shares
|
Aug. 11, 2014
USD ($)
|
Oct. 24, 2013
USD ($)
|
Nov. 08, 2012
USD ($)
|
Sep. 03, 2009 |
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
land_acquisition
|
Jun. 30, 2017 |
Jun. 30, 2016
USD ($)
|
Mar. 27, 2015
USD ($)
|
Mar. 26, 2015
USD ($)
|
Dec. 31, 2014 |
Dec. 03, 2014
$ / note
shares
|
|
Debt Instrument [Line Items] | ||||||||||||||||
Total notes payable | $ 155,768,000 | $ 175,181,000 | ||||||||||||||
Debt instrument, maturity date | Sep. 30, 2016 | |||||||||||||||
Long-term debt, gross | $ 1,080,650,000 | 1,105,776,000 | ||||||||||||||
Land Acquisition Note 1 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument interest rate | 7.00% | |||||||||||||||
Principal amount | $ 3,000,000 | |||||||||||||||
Land Acquisition Note 2 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument interest rate | 7.00% | |||||||||||||||
Principal amount | $ 21,700,000 | |||||||||||||||
Subordinated amortizing notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument interest rate | 5.50% | |||||||||||||||
Initial principal amount of each amortizing note | $ / note | 18.01 | |||||||||||||||
Quarterly installment on each amortizing note | $ / note | 1.6250 | |||||||||||||||
First installment payment per amortizing note | $ / note | 1.8056 | |||||||||||||||
Long-term debt, gross | $ 7,225,000 | $ 14,066,000 | ||||||||||||||
5 3/4% Senior Notes due 2019 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument interest rate | 5.75% | 5.75% | 5.75% | |||||||||||||
Long-term debt, gross | $ 148,826,000 | $ 148,295,000 | ||||||||||||||
8 1/2% Senior Notes due 2020 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument interest rate | 8.50% | 8.50% | ||||||||||||||
Long-term debt, gross | $ 422,817,000 | $ 422,896,000 | ||||||||||||||
7% Senior Notes due 2022 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument interest rate | 7.00% | 7.00% | 7.00% | |||||||||||||
Long-term debt, gross | $ 346,014,000 | $ 345,338,000 | ||||||||||||||
Revolving Credit Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum borrowing capacity | $ 200,000,000 | |||||||||||||||
Tangible Net Worth Requirement | $ 451,000,000 | |||||||||||||||
Additional capacity under accordion feature | 130,000,000 | $ 125,000,000 | ||||||||||||||
Sublimit for letters of credit | 100,000,000 | |||||||||||||||
Current rate | 4.75% | 3.32% | ||||||||||||||
Revolving Credit Facility | Revolving Credit Facility Agreement | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum borrowing capacity | $ 130,000,000.0 | |||||||||||||||
Commitment fee | 50.00% | |||||||||||||||
Letters of credit outstanding, amount | $ 8,000,000 | $ 8,600,000 | ||||||||||||||
Revolving Credit Facility | Second Amended Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum borrowing capacity | $ 145,000,000.0 | |||||||||||||||
Additional capacity under accordion feature | $ 200,000,000.0 | |||||||||||||||
Debt Instrument, Subjective Acceleration Clause, Percentage of EBITDA, Minimum | 50.00% | |||||||||||||||
Debt Instrument, Covenant, Leverage Ratio, Maximum | 65.00% | |||||||||||||||
Debt Instrument, Covenant, Interest Coverage Ratio, Minimum | 1.50 | |||||||||||||||
Debt Instrument, Covenant, Interest Coverage Ratio, Maximum Liquidity Used in Calculation | $ 50,000,000.0 | |||||||||||||||
Letter of Credit [Member] | Revolving Credit Facility Agreement | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Sublimit for letters of credit | $ 50,000,000.0 | |||||||||||||||
Letter of Credit [Member] | Second Amended Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Sublimit for letters of credit | $ 50,000,000.0 | |||||||||||||||
Seller Financing | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Total notes payable | 24,692,000 | $ 0 | ||||||||||||||
Number of land acquisitions | land_acquisition | 2 | |||||||||||||||
Senior Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Deferred loan costs | 10,793,000 | |||||||||||||||
Senior Notes | Senior Notes Due 2020 and 2022 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt premium | 3,450,000 | |||||||||||||||
Senior Notes | 5 3/4% Senior Notes due 2019 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Deferred loan costs | $ 1,200,000 | |||||||||||||||
Debt instrument interest rate | 5.75% | 5.75% | 5.75% | |||||||||||||
Debt instrument, maturity date | Apr. 15, 2019 | |||||||||||||||
Principal amount | $ 150,000,000 | |||||||||||||||
Percentage of issuance price on face value | 100.00% | |||||||||||||||
Senior Notes | 8 1/2% Senior Notes due 2020 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt premium | 2,600,000 | |||||||||||||||
Deferred loan costs | $ 4,800,000 | |||||||||||||||
Debt instrument interest rate | 8.50% | 8.50% | 8.50% | |||||||||||||
Debt instrument, maturity date | Nov. 15, 2020 | Nov. 15, 2020 | ||||||||||||||
Principal amount | $ 100,000,000.0 | $ 325,000,000 | $ 425,000,000 | |||||||||||||
Percentage of issuance price on face value | 106.50% | 100.00% | ||||||||||||||
Notice period for redemption of notes (in days) | 60 days | |||||||||||||||
Proceeds from issuance of debt | $ 104,700,000 | |||||||||||||||
Senior note | $ 425,000,000 | |||||||||||||||
Interest at an annual rate | 8.50% | |||||||||||||||
First requisite repayment date | May 15, 2013 | |||||||||||||||
Debt instrument redemption date | Nov. 15, 2016 | |||||||||||||||
Senior Notes | 7% Senior Notes due 2022 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt premium | $ 800,000 | |||||||||||||||
Deferred loan costs | $ 4,800,000 | |||||||||||||||
Debt instrument interest rate | 7.00% | 7.00% | 7.00% | |||||||||||||
Debt instrument, maturity date | Aug. 15, 2022 | |||||||||||||||
Principal amount | $ 50,000,000.0 | $ 300,000,000 | $ 350,000,000 | |||||||||||||
Percentage of issuance price on face value | 102.00% | 100.00% | ||||||||||||||
Proceeds from issuance of debt | $ 50,500,000 | |||||||||||||||
Line of Credit | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Total notes payable | $ 29,000,000 | $ 65,000,000 | ||||||||||||||
Current rate | 62.50% | |||||||||||||||
Minimum | Senior Notes | 7% Senior Notes due 2022 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Notice period for redemption of notes (in days) | 30 days | |||||||||||||||
Maximum | Senior Notes | 7% Senior Notes due 2022 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Notice period for redemption of notes (in days) | 60 days | |||||||||||||||
California Lyon | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Total notes payable | $ 50,713,000 | 80,915,000 | ||||||||||||||
California Lyon | Subordinated amortizing notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt, gross | 7,225,000 | 14,066,000 | ||||||||||||||
California Lyon | 5 3/4% Senior Notes due 2019 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt, gross | 148,826,000 | 148,295,000 | ||||||||||||||
California Lyon | 8 1/2% Senior Notes due 2020 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt, gross | 422,817,000 | 422,896,000 | ||||||||||||||
California Lyon | 7% Senior Notes due 2022 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt, gross | $ 346,014,000 | $ 345,338,000 | ||||||||||||||
California Lyon | Senior Notes | 5 3/4% Senior Notes due 2019 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Notice period for redemption of notes (in days) | 30 days | |||||||||||||||
California Lyon | Senior Notes | 7% Senior Notes due 2022 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Percentage of redemption price of principal amount | 100.00% | |||||||||||||||
Maximum redemption percentage of aggregate principal amount | 35.00% | |||||||||||||||
Percent redemption price | 107.00% | |||||||||||||||
William Lyon Homes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Ownership rate | 100.00% | |||||||||||||||
Tangible Equity Units | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Number of tangible equity units issued (in units) | shares | 1,000,000 | 150,000 | ||||||||||||||
Stated rate | 6.50% | |||||||||||||||
Price per unit (in USD per unit) | $ / shares | $ 100 | |||||||||||||||
Conversion premium | 17.50% | |||||||||||||||
Scenario, Forecast | Revolving Credit Facility | Second Amended Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Covenant, Leverage Ratio, Maximum | 60.00% | |||||||||||||||
Common Class A | Minimum | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Number of securities called by each warrant or right | shares | 4.4465 | |||||||||||||||
Common Class A | Maximum | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Number of securities called by each warrant or right | shares | 5.2247 |
Senior Notes, Secured, and Subordinated Indebtedness - Summary of Senior Notes Redemption Prices Percentage (Details) - Senior Notes |
12 Months Ended |
---|---|
Dec. 31, 2016 | |
April 2016 | 5 3/4% Senior Notes due 2019 | |
Debt Instrument [Line Items] | |
Percentage of redemption price of principal amount | 104.313% |
October 2016 | 5 3/4% Senior Notes due 2019 | |
Debt Instrument [Line Items] | |
Percentage of redemption price of principal amount | 102.875% |
April 2017 | 5 3/4% Senior Notes due 2019 | |
Debt Instrument [Line Items] | |
Percentage of redemption price of principal amount | 101.438% |
April 2018 and Thereafter | 5 3/4% Senior Notes due 2019 | |
Debt Instrument [Line Items] | |
Percentage of redemption price of principal amount | 100.00% |
November 2016 | 8 1/2% Senior Notes due 2020 | |
Debt Instrument [Line Items] | |
Percentage of redemption price of principal amount | 104.25% |
November 2017 | 8 1/2% Senior Notes due 2020 | |
Debt Instrument [Line Items] | |
Percentage of redemption price of principal amount | 102.125% |
November 2018 and Thereafter | 8 1/2% Senior Notes due 2020 | |
Debt Instrument [Line Items] | |
Percentage of redemption price of principal amount | 100.00% |
August 2017 | 7% Senior Notes due 2022 | |
Debt Instrument [Line Items] | |
Percentage of redemption price of principal amount | 103.50% |
August 2018 | 7% Senior Notes due 2022 | |
Debt Instrument [Line Items] | |
Percentage of redemption price of principal amount | 101.75% |
August 2019 and Thereafter | 7% Senior Notes due 2022 | |
Debt Instrument [Line Items] | |
Percentage of redemption price of principal amount | 100.00% |
Senior Notes, Secured, and Subordinated Indebtedness - Consolidating Balance Sheet (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
---|---|---|---|---|
ASSETS | ||||
Cash and cash equivalents | $ 42,612 | $ 50,203 | $ 52,771 | $ 171,672 |
Restricted cash | 0 | 504 | ||
Receivables | 9,538 | 14,838 | ||
Escrow proceeds receivable | 85 | 3,041 | ||
Real estate inventories | 1,771,998 | 1,675,106 | ||
Investment in unconsolidated joint ventures | 7,282 | 5,413 | ||
Goodwill | 66,902 | 66,902 | ||
Intangibles, net of accumulated amortization of $4,640 and $3,683 and as of December 31, 2015 and 2014, respectively | 6,700 | 6,700 | ||
Deferred income taxes, net | 75,751 | 79,726 | ||
Other assets, net | 17,283 | 21,017 | ||
Investments in subsidiaries | 0 | 0 | ||
Intercompany receivables | 0 | 0 | ||
Total assets | 1,998,151 | 1,923,450 | ||
LIABILITIES AND EQUITY | ||||
Accounts payable | 74,282 | 75,881 | ||
Accrued expenses | 79,790 | 70,324 | ||
Notes payable | 155,768 | 175,181 | ||
Long-term debt, gross | 1,080,650 | 1,105,776 | ||
Intercompany payables | 0 | 0 | ||
Total liabilities | 1,234,722 | 1,251,981 | ||
Equity | ||||
William Lyon Homes stockholders’ equity | 697,086 | 632,095 | ||
Noncontrolling interests | 66,343 | 39,374 | ||
Total liabilities and equity | 1,998,151 | 1,923,450 | ||
Delaware Lyon | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | |||
Receivables | 0 | 0 | ||
Escrow proceeds receivable | 0 | 0 | ||
Real estate inventories | 0 | 0 | ||
Investment in unconsolidated joint ventures | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangibles, net of accumulated amortization of $4,640 and $3,683 and as of December 31, 2015 and 2014, respectively | 0 | 0 | ||
Deferred income taxes, net | 0 | 0 | ||
Other assets, net | 0 | 0 | ||
Investments in subsidiaries | 697,086 | 632,095 | ||
Intercompany receivables | 0 | 0 | ||
Total assets | 697,086 | 632,095 | ||
LIABILITIES AND EQUITY | ||||
Accounts payable | 0 | 0 | ||
Accrued expenses | 0 | 0 | ||
Notes payable | 0 | 0 | ||
Intercompany payables | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Equity | ||||
William Lyon Homes stockholders’ equity | 697,086 | 632,095 | ||
Noncontrolling interests | 0 | 0 | ||
Total liabilities and equity | 697,086 | 632,095 | ||
California Lyon | ||||
ASSETS | ||||
Cash and cash equivalents | 36,204 | 44,331 | 48,462 | 166,516 |
Restricted cash | 504 | |||
Receivables | 2,989 | 8,986 | ||
Escrow proceeds receivable | 85 | 2,020 | ||
Real estate inventories | 910,594 | 922,990 | ||
Investment in unconsolidated joint ventures | 7,132 | 5,263 | ||
Goodwill | 14,209 | 14,209 | ||
Intangibles, net of accumulated amortization of $4,640 and $3,683 and as of December 31, 2015 and 2014, respectively | 0 | 0 | ||
Deferred income taxes, net | 75,751 | 79,726 | ||
Other assets, net | 15,779 | 18,981 | ||
Investments in subsidiaries | (23,736) | (34,522) | ||
Intercompany receivables | 0 | 0 | ||
Total assets | 1,039,007 | 1,062,488 | ||
LIABILITIES AND EQUITY | ||||
Accounts payable | 52,380 | 45,065 | ||
Accrued expenses | 75,058 | 62,167 | ||
Notes payable | 50,713 | 80,915 | ||
Intercompany payables | 177,267 | 170,757 | ||
Total liabilities | 1,280,300 | 1,289,499 | ||
Equity | ||||
William Lyon Homes stockholders’ equity | (241,291) | (227,011) | ||
Noncontrolling interests | 0 | 0 | ||
Total liabilities and equity | 1,039,009 | 1,062,488 | ||
Guarantor Subsidiaries | ||||
ASSETS | ||||
Cash and cash equivalents | 272 | 2,724 | 573 | 28 |
Restricted cash | 0 | |||
Receivables | 3,303 | 937 | ||
Escrow proceeds receivable | 0 | 1,021 | ||
Real estate inventories | 645,341 | 589,762 | ||
Investment in unconsolidated joint ventures | 150 | 150 | ||
Goodwill | 52,693 | 52,693 | ||
Intangibles, net of accumulated amortization of $4,640 and $3,683 and as of December 31, 2015 and 2014, respectively | 6,700 | 6,700 | ||
Deferred income taxes, net | 0 | 0 | ||
Other assets, net | 1,089 | 1,737 | ||
Investments in subsidiaries | (573,650) | (561,546) | ||
Intercompany receivables | 252,860 | 239,248 | ||
Total assets | 388,758 | 333,426 | ||
LIABILITIES AND EQUITY | ||||
Accounts payable | 16,416 | 27,807 | ||
Accrued expenses | 4,634 | 8,059 | ||
Notes payable | 2,979 | 0 | ||
Intercompany payables | 0 | 0 | ||
Total liabilities | 24,029 | 35,866 | ||
Equity | ||||
William Lyon Homes stockholders’ equity | 364,727 | 297,560 | ||
Noncontrolling interests | 0 | 0 | ||
Total liabilities and equity | 388,756 | 333,426 | ||
Non-Guarantor Subsidiaries | ||||
ASSETS | ||||
Cash and cash equivalents | 6,136 | 3,148 | 3,736 | 5,128 |
Restricted cash | 0 | |||
Receivables | 3,246 | 4,915 | ||
Escrow proceeds receivable | 0 | 0 | ||
Real estate inventories | 216,063 | 162,354 | ||
Investment in unconsolidated joint ventures | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangibles, net of accumulated amortization of $4,640 and $3,683 and as of December 31, 2015 and 2014, respectively | 0 | 0 | ||
Deferred income taxes, net | 0 | 0 | ||
Other assets, net | 415 | 299 | ||
Investments in subsidiaries | 0 | 0 | ||
Intercompany receivables | 0 | 0 | ||
Total assets | 225,860 | 170,716 | ||
LIABILITIES AND EQUITY | ||||
Accounts payable | 5,486 | 3,009 | ||
Accrued expenses | 98 | 98 | ||
Notes payable | 102,076 | 94,266 | ||
Intercompany payables | 75,593 | 68,491 | ||
Total liabilities | 183,253 | 165,864 | ||
Equity | ||||
William Lyon Homes stockholders’ equity | (23,736) | (34,522) | ||
Noncontrolling interests | 66,343 | 39,374 | ||
Total liabilities and equity | 225,860 | 170,716 | ||
Eliminating Entries | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Restricted cash | 0 | |||
Receivables | 0 | 0 | ||
Escrow proceeds receivable | 0 | 0 | ||
Real estate inventories | 0 | 0 | ||
Investment in unconsolidated joint ventures | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangibles, net of accumulated amortization of $4,640 and $3,683 and as of December 31, 2015 and 2014, respectively | 0 | 0 | ||
Deferred income taxes, net | 0 | 0 | ||
Other assets, net | 0 | 0 | ||
Investments in subsidiaries | (99,700) | (36,027) | ||
Intercompany receivables | (252,860) | (239,248) | ||
Total assets | (352,560) | (275,275) | ||
LIABILITIES AND EQUITY | ||||
Accounts payable | 0 | 0 | ||
Accrued expenses | 0 | 0 | ||
Notes payable | 0 | 0 | ||
Intercompany payables | (252,860) | (239,248) | ||
Total liabilities | (252,860) | (239,248) | ||
Equity | ||||
William Lyon Homes stockholders’ equity | (99,700) | (36,027) | ||
Noncontrolling interests | 0 | 0 | ||
Total liabilities and equity | (352,560) | (275,275) | ||
Subordinated amortizing notes | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt, gross | 7,225 | 14,066 | ||
Subordinated amortizing notes | Delaware Lyon | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt, gross | 0 | 0 | ||
Subordinated amortizing notes | California Lyon | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt, gross | 7,225 | 14,066 | ||
Subordinated amortizing notes | Guarantor Subsidiaries | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt, gross | 0 | 0 | ||
Subordinated amortizing notes | Non-Guarantor Subsidiaries | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt, gross | 0 | 0 | ||
Subordinated amortizing notes | Eliminating Entries | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt, gross | 0 | 0 | ||
5 3/4% Senior Notes due 2019 | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt, gross | 148,826 | 148,295 | ||
5 3/4% Senior Notes due 2019 | Delaware Lyon | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt, gross | 0 | 0 | ||
5 3/4% Senior Notes due 2019 | California Lyon | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt, gross | 148,826 | 148,295 | ||
5 3/4% Senior Notes due 2019 | Guarantor Subsidiaries | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt, gross | 0 | 0 | ||
5 3/4% Senior Notes due 2019 | Non-Guarantor Subsidiaries | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt, gross | 0 | 0 | ||
5 3/4% Senior Notes due 2019 | Eliminating Entries | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt, gross | 0 | 0 | ||
8 1/2% Senior Notes due 2020 | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt, gross | 422,817 | 422,896 | ||
8 1/2% Senior Notes due 2020 | Delaware Lyon | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt, gross | 0 | 0 | ||
8 1/2% Senior Notes due 2020 | California Lyon | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt, gross | 422,817 | 422,896 | ||
8 1/2% Senior Notes due 2020 | Guarantor Subsidiaries | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt, gross | 0 | 0 | ||
8 1/2% Senior Notes due 2020 | Non-Guarantor Subsidiaries | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt, gross | 0 | 0 | ||
8 1/2% Senior Notes due 2020 | Eliminating Entries | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt, gross | 0 | 0 | ||
7% Senior Notes due 2022 | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt, gross | 346,014 | 345,338 | ||
7% Senior Notes due 2022 | Delaware Lyon | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt, gross | 0 | 0 | ||
7% Senior Notes due 2022 | California Lyon | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt, gross | 346,014 | 345,338 | ||
7% Senior Notes due 2022 | Guarantor Subsidiaries | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt, gross | 0 | 0 | ||
7% Senior Notes due 2022 | Non-Guarantor Subsidiaries | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt, gross | 0 | 0 | ||
7% Senior Notes due 2022 | Eliminating Entries | ||||
LIABILITIES AND EQUITY | ||||
Long-term debt, gross | $ 0 | $ 0 |
Senior Notes, Secured, and Subordinated Indebtedness - Consolidating Statement of Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Mar. 31, 2014 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Operating revenue | ||||||||||||
Sales | $ 1,402,203 | $ 1,078,928 | $ 857,025 | |||||||||
Construction services | 3,837 | 25,124 | 37,728 | |||||||||
Management fees | 0 | 0 | 0 | |||||||||
Operating revenue | $ 473,221 | $ 342,628 | $ 325,059 | $ 261,295 | $ 397,162 | $ 244,311 | $ 247,740 | $ 189,715 | 1,406,040 | 1,104,052 | 894,753 | |
Operating costs | ||||||||||||
Cost of sales | (1,162,337) | (878,995) | (677,531) | |||||||||
Construction services | (3,485) | (21,181) | (30,700) | |||||||||
Sales and marketing | (72,509) | (61,539) | (45,903) | |||||||||
General and administrative | (73,398) | (59,161) | (54,626) | |||||||||
Transaction expenses | 0 | 0 | (5,832) | |||||||||
Amortization of intangible assets | 0 | (957) | (1,814) | |||||||||
Other | (343) | (1,972) | (2,874) | |||||||||
Operating costs | (1,312,072) | (1,023,805) | (819,280) | |||||||||
(Loss) income from subsidiaries | 0 | 0 | 0 | |||||||||
Operating income | 93,968 | 80,247 | 75,473 | |||||||||
Equity in income of unconsolidated joint ventures | 5,606 | 3,239 | 555 | |||||||||
Interest expense, net of amounts capitalized | 0 | 0 | 0 | |||||||||
Other income (expense), net | 3,243 | 3,581 | 2,295 | |||||||||
(Loss) income before provision for income taxes | 102,817 | 87,067 | 78,323 | |||||||||
Benefit (provision) for income taxes | $ (23,797) | (34,850) | (26,806) | (23,797) | ||||||||
Net income | $ 26,426 | $ 16,514 | $ 15,086 | $ 9,941 | $ 27,128 | $ 12,277 | $ 13,250 | $ 7,606 | 67,967 | 60,261 | 54,526 | |
Less: Net income attributable to noncontrolling interests | (8,271) | (2,925) | (9,901) | |||||||||
Net income attributable to William Lyon Homes | 59,696 | 57,336 | 44,625 | |||||||||
Net income available to common stockholders | 59,696 | 57,336 | 44,625 | |||||||||
Delaware Lyon | ||||||||||||
Operating revenue | ||||||||||||
Sales | 0 | 0 | 0 | |||||||||
Construction services | 0 | 0 | 0 | |||||||||
Management fees | 0 | 0 | 0 | |||||||||
Operating revenue | 0 | 0 | 0 | |||||||||
Operating costs | ||||||||||||
Cost of sales | 0 | 0 | 0 | |||||||||
Construction services | 0 | 0 | 0 | |||||||||
Sales and marketing | 0 | 0 | 0 | |||||||||
General and administrative | 0 | 0 | 0 | |||||||||
Transaction expenses | 0 | |||||||||||
Amortization of intangible assets | 0 | 0 | ||||||||||
Other | 0 | 0 | 0 | |||||||||
Operating costs | 0 | 0 | 0 | |||||||||
(Loss) income from subsidiaries | 59,696 | 57,336 | 44,625 | |||||||||
Operating income | 59,696 | 57,336 | 44,625 | |||||||||
Equity in income of unconsolidated joint ventures | 0 | 0 | 0 | |||||||||
Other income (expense), net | 0 | 0 | 0 | |||||||||
(Loss) income before provision for income taxes | 59,696 | 57,336 | 44,625 | |||||||||
Benefit (provision) for income taxes | 0 | 0 | ||||||||||
Net income | 59,696 | 57,336 | 44,625 | |||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||
Net income available to common stockholders | 59,696 | 57,336 | 44,625 | |||||||||
California Lyon | ||||||||||||
Operating revenue | ||||||||||||
Sales | 573,191 | 459,990 | 523,064 | |||||||||
Construction services | 3,837 | 25,124 | 37,728 | |||||||||
Management fees | (4,362) | (1,506) | (2,926) | |||||||||
Operating revenue | 572,666 | 483,608 | 557,866 | |||||||||
Operating costs | ||||||||||||
Cost of sales | (462,153) | (358,793) | (399,183) | |||||||||
Construction services | (3,485) | (21,181) | (30,700) | |||||||||
Sales and marketing | (27,329) | (26,626) | (27,418) | |||||||||
General and administrative | (60,141) | (47,385) | (47,353) | |||||||||
Transaction expenses | (5,832) | |||||||||||
Amortization of intangible assets | (957) | (1,814) | ||||||||||
Other | (442) | (3,477) | (3,685) | |||||||||
Operating costs | (553,550) | (458,419) | (515,985) | |||||||||
(Loss) income from subsidiaries | 8,331 | (2,395) | 11,575 | |||||||||
Operating income | 27,447 | 22,794 | 53,456 | |||||||||
Equity in income of unconsolidated joint ventures | 4,369 | 1,912 | 0 | |||||||||
Other income (expense), net | 4,640 | 7,911 | 3,280 | |||||||||
(Loss) income before provision for income taxes | 36,456 | 32,617 | 56,736 | |||||||||
Benefit (provision) for income taxes | (34,850) | (26,806) | (23,797) | |||||||||
Net income | 1,606 | 5,811 | 32,939 | |||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||
Net income available to common stockholders | 1,606 | 5,811 | 32,939 | |||||||||
Guarantor Subsidiaries | ||||||||||||
Operating revenue | ||||||||||||
Sales | 680,138 | 568,774 | 236,245 | |||||||||
Construction services | 0 | 0 | 0 | |||||||||
Management fees | 0 | 0 | 0 | |||||||||
Operating revenue | 680,138 | 568,774 | 236,245 | |||||||||
Operating costs | ||||||||||||
Cost of sales | (564,596) | (475,043) | (196,773) | |||||||||
Construction services | 0 | 0 | 0 | |||||||||
Sales and marketing | (36,170) | (31,231) | (14,186) | |||||||||
General and administrative | (13,256) | (11,776) | (7,271) | |||||||||
Transaction expenses | 0 | |||||||||||
Amortization of intangible assets | 0 | 0 | ||||||||||
Other | 100 | 1,505 | 825 | |||||||||
Operating costs | (613,922) | (516,545) | (217,405) | |||||||||
(Loss) income from subsidiaries | 0 | 0 | 0 | |||||||||
Operating income | 66,216 | 52,229 | 18,840 | |||||||||
Equity in income of unconsolidated joint ventures | 1,237 | 1,327 | 555 | |||||||||
Other income (expense), net | (34) | 4,793 | (23) | |||||||||
(Loss) income before provision for income taxes | 67,419 | 58,349 | 19,372 | |||||||||
Benefit (provision) for income taxes | 0 | 0 | 0 | |||||||||
Net income | 67,419 | 58,349 | 19,372 | |||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||
Net income available to common stockholders | 67,419 | 58,349 | 19,372 | |||||||||
Non-Guarantor Subsidiaries | ||||||||||||
Operating revenue | ||||||||||||
Sales | 148,874 | 50,164 | 97,716 | |||||||||
Construction services | 0 | 0 | 0 | |||||||||
Management fees | 0 | 0 | 0 | |||||||||
Operating revenue | 148,874 | 50,164 | 97,716 | |||||||||
Operating costs | ||||||||||||
Cost of sales | (131,226) | (43,653) | (78,649) | |||||||||
Construction services | 0 | 0 | 0 | |||||||||
Sales and marketing | (9,010) | (3,682) | (4,299) | |||||||||
General and administrative | (1) | 0 | (2) | |||||||||
Transaction expenses | 0 | |||||||||||
Amortization of intangible assets | 0 | 0 | ||||||||||
Other | (1) | 0 | (14) | |||||||||
Operating costs | (140,238) | (47,335) | (82,964) | |||||||||
(Loss) income from subsidiaries | 0 | 0 | 0 | |||||||||
Operating income | 8,636 | 2,829 | 14,752 | |||||||||
Equity in income of unconsolidated joint ventures | 0 | 0 | 0 | |||||||||
Other income (expense), net | (1,363) | (9,123) | (962) | |||||||||
(Loss) income before provision for income taxes | 7,273 | (6,294) | 13,790 | |||||||||
Benefit (provision) for income taxes | 0 | 0 | 0 | |||||||||
Net income | 7,273 | (6,294) | 13,790 | |||||||||
Less: Net income attributable to noncontrolling interests | (8,271) | (2,925) | (9,901) | |||||||||
Net income available to common stockholders | (998) | (9,219) | 3,889 | |||||||||
Eliminating Entries | ||||||||||||
Operating revenue | ||||||||||||
Sales | 0 | 0 | 0 | |||||||||
Construction services | 0 | 0 | 0 | |||||||||
Management fees | 4,362 | 1,506 | 2,926 | |||||||||
Operating revenue | 4,362 | 1,506 | 2,926 | |||||||||
Operating costs | ||||||||||||
Cost of sales | (4,362) | (1,506) | (2,926) | |||||||||
Construction services | 0 | 0 | 0 | |||||||||
Sales and marketing | 0 | 0 | 0 | |||||||||
General and administrative | 0 | 0 | 0 | |||||||||
Transaction expenses | 0 | |||||||||||
Amortization of intangible assets | 0 | 0 | ||||||||||
Other | 0 | 0 | 0 | |||||||||
Operating costs | (4,362) | (1,506) | (2,926) | |||||||||
(Loss) income from subsidiaries | (68,027) | (54,941) | (56,200) | |||||||||
Operating income | (68,027) | (54,941) | (56,200) | |||||||||
Equity in income of unconsolidated joint ventures | 0 | 0 | 0 | |||||||||
Other income (expense), net | 0 | 0 | 0 | |||||||||
(Loss) income before provision for income taxes | (68,027) | (54,941) | (56,200) | |||||||||
Benefit (provision) for income taxes | 0 | 0 | 0 | |||||||||
Net income | (68,027) | (54,941) | (56,200) | |||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||
Net income available to common stockholders | $ (68,027) | $ (54,941) | $ (56,200) |
Senior Notes, Secured, and Subordinated Indebtedness - Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Operating activities: | |||
Net cash (used in) provided by operating activities | $ 21,706 | $ (172,908) | $ (159,807) |
Investing activities: | |||
Investment in and advances to joint ventures | 0 | (1,000) | (500) |
Proceeds from repayment of notes receivable | 6,188 | ||
Cash paid for acquisitions, net | 0 | 0 | (492,418) |
Purchases of property and equipment | (1,029) | (4,800) | (2,078) |
Investments in subsidiaries | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | 5,159 | (5,800) | (494,996) |
Financing activities: | |||
Proceeds from borrowings on notes payable | 139,783 | 119,663 | 95,227 |
Principal payments on notes payable | (147,887) | (58,217) | (96,465) |
Proceeds from issuance of bridge loan | 0 | 0 | 120,000 |
Payments on bridge loan | 0 | 0 | (120,000) |
Proceeds from borrowings on revolver | 258,000 | 229,000 | 20,000 |
Payments on revolver | (294,000) | (164,000) | (20,000) |
Repayments of Subordinated Debt | (6,841) | (6,651) | 0 |
Issuance of TEUs - Purchase Contracts, net of offering costs | 0 | 0 | 94,284 |
Offering costs related to TEUs | 0 | 0 | (3,830) |
Issuance of TEUs - Subordinated amortizing notes | 0 | 0 | 20,717 |
Proceeds from stock options exercised | 0 | 106 | 285 |
Offering costs related to issuance of common stock | 0 | 0 | (105) |
Purchase of common stock | (942) | (1,832) | (1,774) |
Excess income tax benefit from stock based awards | (182) | 0 | 1,866 |
Payment of deferred loan costs | (1,085) | (2,147) | (19,018) |
Noncontrolling interest contributions | 38,334 | 19,850 | 22,041 |
Noncontrolling interest distributions | (19,636) | (10,632) | (27,326) |
Advances to affiliates | 0 | 0 | 0 |
Intercompany receivables/payables | 0 | 0 | 0 |
Net cash (used in) provided by financing activities | (34,456) | 176,140 | 535,902 |
Net (decrease) increase in cash and cash equivalents | (7,591) | (2,568) | (118,901) |
Cash and cash equivalents — beginning of period | 50,203 | 52,771 | 171,672 |
Cash and cash equivalents — end of period | 42,612 | 50,203 | 52,771 |
Delaware Lyon | |||
Operating activities: | |||
Net cash (used in) provided by operating activities | (5,295) | (4,844) | (97,110) |
Investing activities: | |||
Investment in and advances to joint ventures | 0 | 0 | |
Cash paid for acquisitions, net | 0 | ||
Purchases of property and equipment | 0 | 0 | 0 |
Investments in subsidiaries | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | 0 | 0 | 0 |
Financing activities: | |||
Proceeds from borrowings on notes payable | 0 | 0 | 0 |
Principal payments on notes payable | 0 | 0 | 0 |
Proceeds from issuance of bridge loan | 0 | ||
Payments on bridge loan | 0 | ||
Proceeds from borrowings on revolver | 0 | 0 | 0 |
Payments on revolver | 0 | 0 | 0 |
Repayments of Subordinated Debt | 0 | 0 | |
Issuance of TEUs - Purchase Contracts, net of offering costs | 0 | ||
Offering costs related to TEUs | 0 | ||
Issuance of TEUs - Subordinated amortizing notes | 0 | ||
Proceeds from stock options exercised | 0 | 0 | |
Offering costs related to issuance of common stock | 0 | ||
Purchase of common stock | 0 | 0 | 0 |
Excess income tax benefit from stock based awards | 0 | 0 | |
Payment of deferred loan costs | 0 | ||
Noncontrolling interest contributions | 0 | 0 | 0 |
Noncontrolling interest distributions | 0 | 0 | 0 |
Advances to affiliates | 0 | 0 | 0 |
Intercompany receivables/payables | 5,295 | 4,844 | 97,110 |
Net cash (used in) provided by financing activities | 5,295 | 4,844 | 97,110 |
Net (decrease) increase in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents — beginning of period | 0 | 0 | 0 |
Cash and cash equivalents — end of period | 0 | 0 | 0 |
California Lyon | |||
Operating activities: | |||
Net cash (used in) provided by operating activities | 64,780 | (123,099) | 369,750 |
Investing activities: | |||
Investment in and advances to joint ventures | (1,000) | 0 | |
Proceeds from repayment of notes receivable | 6,188 | ||
Cash paid for acquisitions, net | (439,040) | ||
Purchases of property and equipment | (1,004) | (4,918) | (1,826) |
Investments in subsidiaries | (2,455) | (3,833) | 57,515 |
Net cash provided by (used in) investing activities | 2,729 | (9,751) | (383,351) |
Financing activities: | |||
Proceeds from borrowings on notes payable | 2,211 | 34,955 | 0 |
Principal payments on notes payable | (18,125) | (28,924) | (11,898) |
Proceeds from issuance of bridge loan | 120,000 | ||
Payments on bridge loan | (120,000) | ||
Proceeds from borrowings on revolver | 258,000 | 229,000 | 20,000 |
Payments on revolver | (294,000) | (164,000) | (20,000) |
Repayments of Subordinated Debt | (6,841) | (6,651) | |
Issuance of TEUs - Purchase Contracts, net of offering costs | 94,284 | ||
Offering costs related to TEUs | (3,830) | ||
Issuance of TEUs - Subordinated amortizing notes | 20,717 | ||
Proceeds from stock options exercised | 106 | 285 | |
Offering costs related to issuance of common stock | (105) | ||
Purchase of common stock | (942) | (1,832) | (1,774) |
Excess income tax benefit from stock based awards | (182) | 1,866 | |
Payment of deferred loan costs | (1,085) | (2,147) | (19,018) |
Noncontrolling interest contributions | 0 | 0 | 0 |
Noncontrolling interest distributions | 0 | 0 | 0 |
Advances to affiliates | 0 | 0 | 0 |
Intercompany receivables/payables | (14,672) | 17,212 | (634,980) |
Net cash (used in) provided by financing activities | (75,636) | 128,719 | (104,453) |
Net (decrease) increase in cash and cash equivalents | (8,127) | (4,131) | (118,054) |
Cash and cash equivalents — beginning of period | 44,331 | 48,462 | 166,516 |
Cash and cash equivalents — end of period | 36,204 | 44,331 | 48,462 |
Guarantor Subsidiaries | |||
Operating activities: | |||
Net cash (used in) provided by operating activities | (778) | 26,398 | (510,453) |
Investing activities: | |||
Investment in and advances to joint ventures | 0 | (500) | |
Proceeds from repayment of notes receivable | 0 | ||
Cash paid for acquisitions, net | (53,378) | ||
Purchases of property and equipment | 85 | 89 | (267) |
Investments in subsidiaries | 12,104 | (12,584) | 574,125 |
Net cash provided by (used in) investing activities | 12,189 | (12,495) | 519,980 |
Financing activities: | |||
Proceeds from borrowings on notes payable | 0 | 0 | 0 |
Principal payments on notes payable | 0 | (162) | (4,012) |
Proceeds from issuance of bridge loan | 0 | ||
Payments on bridge loan | 0 | ||
Proceeds from borrowings on revolver | 0 | 0 | 0 |
Payments on revolver | 0 | 0 | 0 |
Repayments of Subordinated Debt | 0 | 0 | |
Issuance of TEUs - Purchase Contracts, net of offering costs | 0 | ||
Offering costs related to TEUs | 0 | ||
Issuance of TEUs - Subordinated amortizing notes | 0 | ||
Proceeds from stock options exercised | 0 | 0 | |
Offering costs related to issuance of common stock | 0 | ||
Purchase of common stock | 0 | 0 | 0 |
Excess income tax benefit from stock based awards | 0 | 0 | |
Payment of deferred loan costs | 0 | ||
Noncontrolling interest contributions | 0 | 0 | 0 |
Noncontrolling interest distributions | 0 | 0 | 0 |
Advances to affiliates | (252) | (5,237) | (99) |
Intercompany receivables/payables | (13,611) | (6,353) | (4,871) |
Net cash (used in) provided by financing activities | (13,863) | (11,752) | (8,982) |
Net (decrease) increase in cash and cash equivalents | (2,452) | 2,151 | 545 |
Cash and cash equivalents — beginning of period | 2,724 | 573 | 28 |
Cash and cash equivalents — end of period | 272 | 2,724 | 573 |
Non-Guarantor Subsidiaries | |||
Operating activities: | |||
Net cash (used in) provided by operating activities | (42,296) | (76,207) | (19,104) |
Investing activities: | |||
Investment in and advances to joint ventures | 0 | 0 | |
Proceeds from repayment of notes receivable | 0 | ||
Cash paid for acquisitions, net | 0 | ||
Purchases of property and equipment | (110) | 29 | 15 |
Investments in subsidiaries | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | (110) | 29 | 15 |
Financing activities: | |||
Proceeds from borrowings on notes payable | 137,572 | 84,708 | 95,227 |
Principal payments on notes payable | (129,762) | (29,131) | (80,555) |
Proceeds from issuance of bridge loan | 0 | ||
Payments on bridge loan | 0 | ||
Proceeds from borrowings on revolver | 0 | 0 | 0 |
Payments on revolver | 0 | 0 | 0 |
Repayments of Subordinated Debt | 0 | 0 | |
Issuance of TEUs - Purchase Contracts, net of offering costs | 0 | ||
Offering costs related to TEUs | 0 | ||
Issuance of TEUs - Subordinated amortizing notes | 0 | ||
Proceeds from stock options exercised | 0 | 0 | |
Offering costs related to issuance of common stock | 0 | ||
Purchase of common stock | 0 | 0 | 0 |
Excess income tax benefit from stock based awards | 0 | 0 | |
Payment of deferred loan costs | 0 | 0 | 0 |
Noncontrolling interest contributions | 38,334 | 19,850 | 22,041 |
Noncontrolling interest distributions | (19,636) | (10,632) | (27,326) |
Advances to affiliates | 11,784 | 10,658 | (49,825) |
Intercompany receivables/payables | 7,102 | 137 | 58,135 |
Net cash (used in) provided by financing activities | 45,394 | 75,590 | 17,697 |
Net (decrease) increase in cash and cash equivalents | 2,988 | (588) | (1,392) |
Cash and cash equivalents — beginning of period | 3,148 | 3,736 | 5,128 |
Cash and cash equivalents — end of period | 6,136 | 3,148 | 3,736 |
Eliminating Entries | |||
Operating activities: | |||
Net cash (used in) provided by operating activities | 5,295 | 4,844 | 97,110 |
Investing activities: | |||
Investment in and advances to joint ventures | 0 | 0 | |
Proceeds from repayment of notes receivable | 0 | ||
Cash paid for acquisitions, net | 0 | ||
Purchases of property and equipment | 0 | 0 | 0 |
Investments in subsidiaries | (9,649) | 16,417 | (631,640) |
Net cash provided by (used in) investing activities | (9,649) | 16,417 | (631,640) |
Financing activities: | |||
Proceeds from borrowings on notes payable | 0 | 0 | 0 |
Principal payments on notes payable | 0 | 0 | 0 |
Proceeds from issuance of bridge loan | 0 | ||
Payments on bridge loan | 0 | ||
Proceeds from borrowings on revolver | 0 | 0 | 0 |
Payments on revolver | 0 | 0 | 0 |
Repayments of Subordinated Debt | 0 | 0 | |
Issuance of TEUs - Purchase Contracts, net of offering costs | 0 | ||
Offering costs related to TEUs | 0 | ||
Issuance of TEUs - Subordinated amortizing notes | 0 | ||
Proceeds from stock options exercised | 0 | 0 | |
Offering costs related to issuance of common stock | 0 | ||
Purchase of common stock | 0 | 0 | 0 |
Excess income tax benefit from stock based awards | 0 | 0 | |
Payment of deferred loan costs | 0 | 0 | 0 |
Noncontrolling interest contributions | 0 | 0 | 0 |
Noncontrolling interest distributions | 0 | 0 | 0 |
Advances to affiliates | (11,532) | (5,421) | 49,924 |
Intercompany receivables/payables | 15,886 | (15,840) | 484,606 |
Net cash (used in) provided by financing activities | 4,354 | (21,261) | 534,530 |
Net (decrease) increase in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents — beginning of period | 0 | 0 | 0 |
Cash and cash equivalents — end of period | 0 | 0 | 0 |
5 3/4% Senior Notes due 2019 | |||
Financing activities: | |||
Proceeds from issuance of Senior Notes | 0 | 0 | 150,000 |
5 3/4% Senior Notes due 2019 | Delaware Lyon | |||
Financing activities: | |||
Proceeds from issuance of Senior Notes | 0 | ||
5 3/4% Senior Notes due 2019 | California Lyon | |||
Financing activities: | |||
Proceeds from issuance of Senior Notes | 150,000 | ||
5 3/4% Senior Notes due 2019 | Guarantor Subsidiaries | |||
Financing activities: | |||
Proceeds from issuance of Senior Notes | 0 | ||
5 3/4% Senior Notes due 2019 | Non-Guarantor Subsidiaries | |||
Financing activities: | |||
Proceeds from issuance of Senior Notes | 0 | ||
5 3/4% Senior Notes due 2019 | Eliminating Entries | |||
Financing activities: | |||
Proceeds from issuance of Senior Notes | 0 | ||
7% Senior Notes due 2022 | |||
Financing activities: | |||
Proceeds from issuance of Senior Notes | $ 0 | 51,000 | 300,000 |
7% Senior Notes due 2022 | Delaware Lyon | |||
Financing activities: | |||
Proceeds from issuance of Senior Notes | 0 | 0 | |
7% Senior Notes due 2022 | California Lyon | |||
Financing activities: | |||
Proceeds from issuance of Senior Notes | 51,000 | 300,000 | |
7% Senior Notes due 2022 | Guarantor Subsidiaries | |||
Financing activities: | |||
Proceeds from issuance of Senior Notes | 0 | 0 | |
7% Senior Notes due 2022 | Non-Guarantor Subsidiaries | |||
Financing activities: | |||
Proceeds from issuance of Senior Notes | 0 | 0 | |
7% Senior Notes due 2022 | Eliminating Entries | |||
Financing activities: | |||
Proceeds from issuance of Senior Notes | $ 0 | $ 0 |
Senior Notes, Secured, and Subordinated Indebtedness Construction Notes Payable (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Debt Instrument [Line Items] | ||
Notes payable | $ 155,768 | $ 175,181 |
Construction Loans | ||
Debt Instrument [Line Items] | ||
Notes payable | 275,600 | |
Outstanding | 102,100 | |
Construction Loans | March 2016 Construction Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | 33,400 | |
Outstanding | $ 17,400 | |
Current rate | 3.69% | |
Construction Loans | January 2016 Construction Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 35,000 | |
Outstanding | $ 21,500 | |
Current rate | 4.02% | |
Construction Loans | November 2015 Construction Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 42,500 | |
Outstanding | $ 20,600 | |
Current rate | 4.75% | |
Construction Loans | August 2015 Construction Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 14,200 | |
Outstanding | $ 0 | |
Current rate | 4.50% | |
Construction Loans | August 2015 Construction Notes Payable | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 37,500 | |
Outstanding | $ 0 | |
Current rate | 4.75% | |
Construction Loans | July 2015 Construction Notes Payable | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 22,500 | |
Outstanding | $ 13,800 | |
Current rate | 4.25% | |
Construction Loans | April 2015 Construction Notes Payable | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 18,500 | |
Outstanding | $ 2,300 | |
Current rate | 4.25% | |
Construction Loans | November 2014 Construction Notes Payable | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 24,000 | |
Outstanding | $ 7,200 | |
Current rate | 4.25% | |
Construction Loans | November 2014 Construction Notes Payable | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 22,000 | |
Outstanding | $ 9,400 | |
Current rate | 4.25% | |
Construction Loans | March 2014 Construction Notes Payable | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 26,000 | |
Outstanding | $ 9,900 | |
Current rate | 3.71% |
Fair Value of Financial Instruments - Schedule of Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Financial liabilities: | ||
Notes payable | $ 155,768 | $ 175,181 |
Notes payable, fair value | 155,768 | 175,181 |
Long-term debt, gross | 1,080,650 | 1,105,776 |
Subordinated amortizing notes | ||
Financial liabilities: | ||
Long-term debt, gross | 7,225 | 14,066 |
Long-term debt, fair value | 7,478 | 12,122 |
5 3/4% Senior Notes due 2019 | ||
Financial liabilities: | ||
Long-term debt, gross | 148,826 | 148,295 |
Long-term debt, fair value | 151,125 | 147,750 |
8 1/2% Senior Notes due 2020 | ||
Financial liabilities: | ||
Long-term debt, gross | 422,817 | 422,896 |
Long-term debt, fair value | 444,125 | 449,438 |
7% Senior Notes due 2022 | ||
Financial liabilities: | ||
Long-term debt, gross | 346,014 | 345,338 |
Long-term debt, fair value | $ 363,125 | $ 350,875 |
Related Party Transactions - Narrative (Details) - USD ($) |
1 Months Ended | ||||
---|---|---|---|---|---|
Sep. 03, 2009 |
Aug. 31, 2016 |
Oct. 31, 2015 |
Dec. 31, 2016 |
Dec. 01, 2016 |
|
Related Party Transaction [Line Items] | |||||
Related Party Land Sale to Employee | $ 550,000 | ||||
Aggregate purchase price of aircraft | $ 8,300,000 | ||||
Cash paid on sale of aircraft | 2,100,000 | ||||
Promissory note from the affiliate | 6,200,000 | ||||
Semiannual interest payments receivable | $ 132,000 | ||||
Note maturity date | Sep. 30, 2016 | ||||
Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Cash purchase price of certain lots at a master planned community | $ 9,300,000 | ||||
Certain Lots, Lake Las Vegas | California Lyon | |||||
Related Party Transaction [Line Items] | |||||
Purchase consideration | $ 7,300,000 | ||||
Paulson & Co. Inc. [Member] | Investor [Member] | |||||
Related Party Transaction [Line Items] | |||||
Ownership Percentage in Company, Related Party | 5.00% | ||||
Seller Financing | |||||
Related Party Transaction [Line Items] | |||||
Notes Payable, Related Parties | $ 3,000,000 |
Income Taxes - Summary of (Provision) Benefit from Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2014 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Current | ||||
Federal | $ (13,284) | $ (26,978) | $ (15,296) | |
State | (2,691) | (4,077) | (3,350) | |
Deferred | ||||
Federal | (4,748) | (1,395) | (5,259) | |
State | (3,074) | (2,400) | (2,901) | |
(Provision) benefit from income taxes | $ (23,797) | $ (34,850) | $ (26,806) | $ (23,797) |
Income Taxes - Schedule of Difference in Income Taxes from Amounts Computed by Applying Federal Statutory Rates (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Mar. 31, 2014 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Tax Disclosure [Abstract] | ||||||
Provision for federal income taxes at the statutory rate | $ (27,413) | $ (35,986) | $ (30,473) | |||
Increases/(decreases) in tax resulting from: | ||||||
Provision for state income taxes, net of federal income tax benefits | (3,784) | (4,210) | (4,063) | |||
Change in valuation allowance | 1,629 | 0 | 1,626 | |||
Domestic production activities deduction | 1,228 | 2,481 | 2,087 | |||
Nondeductible items-other | (84) | (58) | (52) | |||
Non-controlling interests | 3,465 | 2,895 | 1,024 | |||
Change in RBIL estimate | 0 | 0 | 1,771 | |||
Cancellation of indebtedness attribute reduction | (4) | 0 | 0 | |||
Tax credits | 316 | 166 | 1,272 | |||
Effective Income Tax Rate Reconciliation, Deduction, Amount | $ 0 | $ 0 | 27 | |||
Other, net | 850 | (165) | 2 | |||
(Provision) benefit from income taxes | $ (23,797) | $ (34,850) | $ (26,806) | $ (23,797) |
Income Taxes - Summary of Temporary Differences Giving Rise to Deferred Income Taxes (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Deferred tax assets | ||
Impairment and other reserves | $ 53,806 | $ 58,991 |
Compensation deductible for tax purposes when paid | 9,161 | 9,124 |
Goodwill and other intangibles | 0 | 129 |
AMT credit carryover | 1,384 | 1,384 |
Unused recognized built-in loss | 18,651 | 19,053 |
Net operating loss | 3,172 | 4,430 |
Deferred Tax Assets Effect Of Book Or Tax Differences For Capped Interest Or General And Administrative | 6,427 | 0 |
Other | 694 | 1,378 |
Deferred tax assets | 93,295 | 94,489 |
Deferred tax liabilities | ||
Effect of book/tax differences for joint ventures | (2,706) | (3,537) |
Effect of book/tax differences for capitalized interest | (11,103) | (14,566) |
Fixed assets and intangibles | (1,716) | (755) |
Deferred Tax Liabilities, Goodwill and Intangible Assets | (1,541) | 0 |
Other | (478) | 4,095 |
Deferred tax liabilities | (17,544) | (14,763) |
Total deferred tax assets, net | $ 75,751 | $ 79,726 |
Income Taxes - Narrative (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income Tax Disclosure [Line Items] | ||
Effective income tax rate | 33.90% | 30.80% |
Valuation allowance | $ 0 | $ 0 |
AMT credit carryover | 1,384 | $ 1,384 |
Federal | ||
Income Tax Disclosure [Line Items] | ||
Net operating loss carryforwards | 0 | |
Unused built-in losses | 52,100 | |
State | ||
Income Tax Disclosure [Line Items] | ||
Net operating loss carryforwards | 56,200 | |
Unused built-in losses | $ 7,500 |
Income Per Common Share - Summary of Basic and Diluted (Loss) Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Mar. 31, 2014 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||||||
Basic weighted average number of shares outstanding (in shares) | 36,764,799 | 36,546,227 | 31,753,110 | |||||||||
Effect of dilutive securities: | ||||||||||||
Diluted average shares outstanding (in shares) | 38,474,900 | 38,767,556 | 33,236,343 | |||||||||
Net (loss) income available to common stockholders | $ 23,052 | $ 13,069 | $ 14,561 | $ 9,014 | $ 26,295 | $ 12,082 | $ 12,277 | $ 6,682 | $ 44,625 | $ 59,696 | ||
Net income available to common stockholders | $ 26,426 | $ 16,514 | $ 15,086 | $ 9,941 | $ 27,128 | $ 12,277 | $ 13,250 | $ 7,606 | $ 67,967 | $ 60,261 | $ 54,526 | |
Basic income per common share (in USD per share) | $ 0.63 | $ 0.36 | $ 0.40 | $ 0.25 | $ 0.72 | $ 0.33 | $ 0.34 | $ 0.18 | $ 1.62 | $ 1.57 | $ 1.41 | |
Diluted income per common share (in USD per share) | $ 0.60 | $ 0.34 | $ 0.38 | $ 0.24 | $ 0.68 | $ 0.31 | $ 0.32 | $ 0.18 | $ 1.55 | $ 1.48 | $ 1.34 | |
Potentially antidilutive securities not included in the calculation of diluted income per common share (weighted average): | ||||||||||||
Number of equity units | 5,113,475 | 5,113,475 | ||||||||||
Unvested stock options | ||||||||||||
Potentially antidilutive securities not included in the calculation of diluted income per common share (weighted average): | ||||||||||||
Potentially antidilutive securities note included in the calculation of diluted loss per common share | 240,000 | 180,000 | ||||||||||
Preferred shares, stock options, and warrants | ||||||||||||
Effect of dilutive securities: | ||||||||||||
Dilutive securities (in shares) | 1,424,272 | 815,171 | 1,326,399 | |||||||||
Tangible Equity Units | ||||||||||||
Effect of dilutive securities: | ||||||||||||
Dilutive securities (in shares) | 58,961 | 894,930 | 894,930 |
Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2016 |
|
Class of Stock [Line Items] | |||
Warrants expiration date | February 24, 2022 | ||
Number of equity units | 5,113,475 | ||
Issuance of TEUs net of offering costs | $ 90,725 | ||
Common stock, Class B, par value $0.01 per share; 30,000,000 shares authorized; 3,813,884 shares issued and outstanding at December 31, 2016 and 2015, respectively | |||
Class of Stock [Line Items] | |||
Common stock, shares issued to purchase warrants (in shares) | 1,907,551 | ||
Warrants to purchase common stock price per share (in USD per share) | $ 17.08 | ||
Warrants [Member] | |||
Class of Stock [Line Items] | |||
Adoption of fresh start accounting | $ 1,000 | ||
Common Class A | Maximum | |||
Class of Stock [Line Items] | |||
Number of equity units | 5.2247 | ||
Common Class A | Minimum | |||
Class of Stock [Line Items] | |||
Number of equity units | 4.4465 | ||
Additional Paid-In Capital | |||
Class of Stock [Line Items] | |||
Issuance of TEUs net of offering costs | $ 90,700 | $ 90,725 |
Stock Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|
Apr. 01, 2015 |
Mar. 31, 2014 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Mar. 31, 2016 |
Dec. 31, 2013 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance target, percent achieved | 96.00% | 97.00% | |||||
Shares available for grant (in shares) | 1,083,206 | ||||||
Stock based compensation expense | $ 6,419 | $ 6,570 | $ 6,114 | ||||
Total unrecognized stock based compensation expense | $ 7,000 | ||||||
Unrecognized stock based compensation expense, weighted average recognition period | 1 year 1 month | ||||||
Total value of restricted stock awards vested | $ 3,800 | $ 5,100 | 6,000 | ||||
Recognized tax benefit | $ 2,600 | $ 4,100 | $ 3,500 | ||||
Common Class A | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares reserved for issuance (in shares) | 3,636,363 | ||||||
Restricted shares granted (in shares) | 392,126 | 857,460 | 493,524 | ||||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted shares granted (in shares) | 79,575 | 291,368 | 208,715 | ||||
Time-Based Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage of performance based restricted stock awards | 92.00% | ||||||
Performance-Based Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted shares granted (in shares) | 312,551 | 566,092 | 284,809 | ||||
Vesting percentage of performance based restricted stock awards | 33.33% | ||||||
2012 Equity Incentive Plan | Common Class A | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Exercise price per share (in USD per share) | $ 25.82 | ||||||
Share-based Compensation Award, Tranche Three | 2012 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options expected to vest (in shares) | 120,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||||
Share-based Compensation Award, Tranche Four | 2012 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options expected to vest (in shares) | 120,000 | ||||||
Other Employee [Member] | Three Year Vesting Restricted Stock [Member] [Domain] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted shares granted (in shares) | 163,269 | ||||||
Other Employee [Member] | Two Year Vesting Restricted Stock, March Schedule [Domain] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted shares granted (in shares) | 55,464 | ||||||
Other Employee [Member] | Two Year Vesting Restricted Stock, August Schedule [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted shares granted (in shares) | 3,548 | ||||||
Other Employee [Member] | One Year Vesting Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted shares granted (in shares) | 20,697 | ||||||
Other Employee [Member] | Two Year Vesting Restricted Stock, September Schedule [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted shares granted (in shares) | 7,326 | ||||||
Non Employee Director [Member] | Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted shares granted (in shares) | 41,064 |
Stock Based Compensation - Summary of Weighted-Average Assumptions for Fair Value of Employee Options Granted (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Expected dividend yield | 0.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 0.0 | $ 1.2 |
Risk-free interest rate | 1.71% | |
Expected volatility | 44.00% | |
Expected life (in years) | 6 years 9 months |
Stock Based Compensation - Summary of Stock Option Activity (Details) - $ / shares |
3 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2014 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||||||
Options outstanding at beginning of year (in shares) | 576,651 | 611,313 | 419,238 | 576,651 | |||||
Granted (in shares) | [1] | 0 | 0 | 240,000 | |||||
Exercised (in shares) | (157,413) | (15,000) | (47,925) | ||||||
Canceled (in shares) | 0 | 0 | 0 | ||||||
Options outstanding at end of year (in shares) | 596,313 | 611,313 | 419,238 | ||||||
Options vested and expected to vest (in shares) | 596,313 | 611,313 | 419,238 | ||||||
Options exercisable at end of year (in shares) | [2] | 356,313 | 371,313 | 419,238 | |||||
Price range of options exercised (in USD per share) | $ 8.66 | $ 8.66 | $ 8.66 | ||||||
Price range of options outstanding (in USD per share) | $ 8.66 | ||||||||
Weighted Average Exercise Price, Options outstanding at beginning of year (in USD per share) | $ 8.66 | 15.40 | 8.66 | 8.66 | |||||
Weighted Average Exercise Prices, Granted (in USD per share) | 25.82 | ||||||||
Weighted Average Exercise Price, Exercised (in USD per share) | 8.66 | 8.66 | 8.66 | ||||||
Weighted Average Exercise Price, Options outstanding at end of year (in USD per share) | 15.57 | 15.40 | 8.66 | ||||||
Weighted Average Exercise Price, Options vested and expected to vest (in USD per share) | 15.57 | 15.40 | 8.66 | ||||||
Weighted Average Exercise Price, Options exercisable at end of year (in USD per share) | [2] | 8.66 | 8.66 | $ 8.66 | |||||
Minimum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||||||
Price range of options outstanding (in USD per share) | 8.66 | 8.66 | |||||||
Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||||||
Price range of options outstanding (in USD per share) | $ 25,820.00 | $ 25,820.00 | |||||||
|
Stock Based Compensation - Summary of Stock Option Activity (Footnote) (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Weighted average grant date fair value of stock options (in USD per share) | $ 12.01 | |
Fair value of shares vested | $ 0.0 | $ 1.2 |
Stock Based Compensation - Summary of Stock Options Outstanding and Exercisable (Details) - USD ($) |
3 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|
Mar. 31, 2014 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Exercise Price (in USD per share) | $ 8.66 | ||||||
Number of Shares (in shares) | 596,313 | 611,313 | 419,238 | 576,651 | |||
Options exercisable at end of year (in shares) | [1] | 356,313 | 371,313 | 419,238 | |||
Granted in Prior Years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Exercise Price (in USD per share) | $ 8.66 | ||||||
Number of Shares (in shares) | 356,313 | ||||||
Weighted Average Remaining Contractual Term (in years) | 5 years 9 months | ||||||
Aggregate Intrinsic Value | $ 3,694,965.81 | ||||||
Options exercisable at end of year (in shares) | 356,313 | ||||||
Granted in Current Year | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Exercise Price (in USD per share) | $ 25.82 | ||||||
Number of Shares (in shares) | 240,000 | ||||||
Weighted Average Remaining Contractual Term (in years) | 8 years 3 months | ||||||
Aggregate Intrinsic Value | $ 0 | ||||||
Options exercisable at end of year (in shares) | 0 | ||||||
|
Stock Based Compensation - Summary of Restricted Shares Activity (Details) - $ / shares |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2014 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |||
Non-vested shares at beginning of year (in shares) | 99,661 | 225,687 | 79,335 |
Granted (in shares) | 79,575 | 291,368 | 208,715 |
Vested (in shares) | (99,901) | (126,073) | (55,571) |
Canceled (in shares) | 0 | (44,058) | (6,792) |
Non-vested shares at end of year (in shares) | 346,924 | 225,687 | |
Weighted Average Grant Date Fair Value, Non-vested shares at beginning of year (in USD per share) | $ 11.49 | $ 23.65 | $ 24.84 |
Weighted Average Grant Date Fair Value, Granted (in USD per share) | 27.70 | 14.14 | 23.11 |
Weighted Average Grant Date Fair Value, Vested (in USD per share) | $ 13.81 | 21.81 | 23.24 |
Weighted Average Grant Date Fair Value, Canceled (in USD per share) | 19.06 | 24.28 | |
Weighted Average Grant Date Fair Value, Non-vested shares at end of year (in USD per share) | $ 16.91 | $ 23.65 | |
Performance-Based Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |||
Non-vested shares at beginning of year (in shares) | 291,450 | 480,757 | 506,846 |
Granted (in shares) | 312,551 | 566,092 | 284,809 |
Vested (in shares) | (97,155) | (190,977) | (154,467) |
Canceled (in shares) | 0 | (200,739) | (156,431) |
Non-vested shares at end of year (in shares) | 655,133 | 480,757 | |
Weighted Average Grant Date Fair Value, Non-vested shares at beginning of year (in USD per share) | $ 14.03 | $ 24.18 | $ 23.84 |
Weighted Average Grant Date Fair Value, Granted (in USD per share) | 29.94 | 13.88 | 23.50 |
Weighted Average Grant Date Fair Value, Vested (in USD per share) | $ 14.03 | 20.58 | 19.58 |
Weighted Average Grant Date Fair Value, Canceled (in USD per share) | 23.38 | 28.86 | |
Weighted Average Grant Date Fair Value, Non-vested shares at end of year (in USD per share) | $ 17.81 | $ 24.18 |
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2014 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Loss Contingencies [Line Items] | |||
Rent expense under cancelable and non-cancelable operating leases | $ 3.1 | $ 3.9 | $ 3.8 |
Outstanding performance and surety bonds | 196.6 | ||
Non-refundable deposits | 50.4 | ||
Remaining purchase price of land | 418.9 | ||
Project Construction Commitment | |||
Loss Contingencies [Line Items] | |||
Construction project commitments | $ 287.3 |
Commitments and Contingencies - Schedule of Future Minimum Payments Under Non-Cancelable Operating Leases (Details) $ in Thousands |
Dec. 31, 2016
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
2017 | $ 2,612 |
2018 | 2,559 |
2019 | 2,235 |
2020 | 2,008 |
2021 | 1,897 |
Thereafter | 888 |
Total | $ 12,199 |
Subsequent Events Senior Notes Refinancing Transaction (Details) - USD ($) |
1 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 08, 2017 |
Feb. 17, 2017 |
Jan. 31, 2017 |
Dec. 31, 2016 |
Oct. 24, 2013 |
Nov. 08, 2012 |
|
8 1/2% Senior Notes due 2020 | Senior Notes | ||||||
Subsequent Event [Line Items] | ||||||
Aggregate principal amount | $ 425,000,000 | $ 100,000,000.0 | $ 325,000,000 | |||
Senior note | $ 425,000,000 | |||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Stock Repurchase Program, Authorized Amount | $ 50,000,000 | |||||
Subsequent Event [Member] | Eight Point Five Percent Senior Notes Due Two Thousand Twenty [Member] | Senior Notes | ||||||
Subsequent Event [Line Items] | ||||||
Aggregate principal amount | $ 450,000,000 | |||||
Subsequent Event [Member] | 8 1/2% Senior Notes due 2020 | Senior Notes | ||||||
Subsequent Event [Line Items] | ||||||
Early Repayment of Senior Debt | 395,600,000 | |||||
Senior note | $ 425,000,000 | |||||
Extinguishment of Senior Note 8.5% | $ 21,800,000 |
Unaudited Summarized Quarterly Financial Information - Summarized Unaudited Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Mar. 31, 2014 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Home sales | $ 473,221 | $ 342,628 | $ 325,059 | $ 261,295 | $ 397,162 | $ 244,311 | $ 247,740 | $ 189,715 | $ 1,406,040 | $ 1,104,052 | $ 894,753 | |
Cost of sales | (392,632) | (285,896) | (268,638) | (215,171) | (324,338) | (200,328) | (200,248) | (154,081) | ||||
Gross profit | 80,589 | 56,732 | 56,421 | 46,124 | 72,824 | 43,983 | 47,492 | 35,634 | ||||
Other income, costs and expenses, net | (54,163) | (40,218) | (41,335) | (36,183) | (45,696) | (31,706) | (34,242) | (28,028) | ||||
Net income | 26,426 | 16,514 | 15,086 | 9,941 | 27,128 | 12,277 | 13,250 | 7,606 | 67,967 | $ 60,261 | $ 54,526 | |
Net (loss) income available to common stockholders | $ 23,052 | $ 13,069 | $ 14,561 | $ 9,014 | $ 26,295 | $ 12,082 | $ 12,277 | $ 6,682 | $ 44,625 | $ 59,696 | ||
Income per common share: | ||||||||||||
Basic (in USD per share) | $ 0.63 | $ 0.36 | $ 0.40 | $ 0.25 | $ 0.72 | $ 0.33 | $ 0.34 | $ 0.18 | $ 1.62 | $ 1.57 | $ 1.41 | |
Diluted (in USD per share) | $ 0.60 | $ 0.34 | $ 0.38 | $ 0.24 | $ 0.68 | $ 0.31 | $ 0.32 | $ 0.18 | $ 1.55 | $ 1.48 | $ 1.34 |
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