Supplemental Guarantor Information

9 Months Ended

12 Months Ended

Sep. 30, 2014

Dec. 31, 2013

Supplemental Guarantor Information [Abstract]

17. Supplemental Guarantor Information

In May 2014, we completed a private offering of $200.0 million in aggregate principal amount of senior unsecured notes due 2022. The senior notes are unsecured senior obligations of the Company, which are fully and unconditionally guaranteed on an unsecured basis, jointly and severally, by certain of our subsidiaries (collectively, the “Subsidiary Guarantors”), which are wholly owned subsidiaries of the Company.

The Indenture governing the senior notes provides that the guarantees of a Guarantor will be automatically and unconditionally released and discharged: (1) upon any sale, transfer, exchange or other disposition (by merger, consolidation or otherwise) of all of the equity interests of such Guarantor after which the applicable Guarantor is no longer a “Restricted Subsidiary” (as defined in the Indenture), which sale, transfer, exchange or other disposition does not constitute an “Asset Sale” (as defined in the Indenture) or is made in compliance with applicable provisions of the Indenture; (2) upon any sale, transfer, exchange or other disposition (by merger, consolidation or otherwise) of all of the assets of such Guarantor, which sale, transfer, exchange or other disposition does not constitute an Asset Sale or is made in compliance with applicable provisions of the Indenture; provided, that after such sale, transfer, exchange or other disposition, such Guarantor is an “Immaterial Subsidiary” (as defined in the Indenture); (3) unless a default has occurred and is continuing, upon the release or discharge of such Guarantor from its guarantee of any indebtedness for borrowed money of the Company and the Guarantors so long as such Guarantor would not then otherwise be required to provide a guarantee pursuant to the Indenture; provided that if such Guarantor has incurred any indebtedness in reliance on its status as a Guarantor in compliance with applicable provisions of the Indenture, such Guarantor’s obligations under such indebtedness, as the case may be, so incurred are satisfied in full and discharged or are otherwise permitted to be incurred by a Restricted Subsidiary (other than a Guarantor) in compliance with applicable provisions of the Indenture; (4) upon the designation of such Guarantor as an “Unrestricted Subsidiary” (as defined in the Indenture), in accordance with the Indenture; (5) if the Company exercises its legal defeasance option or covenant defeasance option under the Indenture or if the obligations of the Company and the Guarantors are discharged in compliance with applicable provisions of the Indenture, upon such exercise or discharge; or (6) in connection with the dissolution of such Guarantor under applicable law in accordance with the Indenture.

As the guarantees were made in connection with the May 2014 private offering of notes, the Subsidiary Guarantors’ condensed financial information is presented as if the guarantees existed during the period presented. If any subsidiaries are released from the guarantees in future periods, the changes are reflected prospectively.

We have determined that separate, full financial statements of the Subsidiary Guarantors would not be material to investors and, accordingly, supplemental financial information is presented below:



	Unaudited Supplemental Condensed Consolidating Balance Sheet
	As of September 30, 2014 (in thousands)
			Guarantor		Non Guarantor		Elimination		Consolidated
	CCS		Subsidiaries		Subsidiaries		Entries		CCS
Assets
Cash and cash equivalents	$	93,796	$	7,908	$	—	$	—	$	101,704
Accounts receivable		—		16,105		—		—		16,105
Investment in subsidiaries		476,465		—		—		(476,465)		—
Inventories		—		461,566		—		—		461,566
Prepaid expenses and other assets		5,118		22,384		—		—		27,502
Deferred tax asset, net		719		—		—		—		719
Property and equipment, net		—		11,848		—		—		11,848
Amortizable intangible assets, net		—		5,900		—		—		5,900
Goodwill		—		13,249		—		—		13,249
Total Assets	$	576,098	$	538,960	$	—	$	(476,465)	$	638,593
Liabilities and stockholders’ equity
Liabilities
Accounts payable	$	—	$	10,102	$	—	$	—	$	10,102
Accrued expenses and other liabilities		9,772		40,902		—		—		50,674
Notes payable and revolving loan agreement		198,557		11,491		—				210,048
Total liabilities	$	208,329	$	62,495	$	—	$	—	$	270,824
Stockholders’ equity		367,769		476,465		—		(476,465)		367,769
Total liabilities and stockholders’ equity	$	576,098	$	538,960	$	—	$	(476,465)	$	638,593



	Unaudited Supplemental Condensed Consolidating Balance Sheet
	As of December 31, 2013 (in thousands)
			Guarantor		Non Guarantor		Elimination		Consolidated
	CCS		Subsidiaries		Subsidiaries		Entries		CCS
Assets
Cash and cash equivalents	$	106,614	$	3,384	$	—	$	—	$	109,998
Accounts receivable		—		4,438		—		—		4,438
Investment in subsidiaries		169,962		—		—		(169,962)		—
Inventories		—		184,072		—		—		184,072
Prepaid expenses and other assets		547		7,868		—		—		8,415
Property and equipment, net		—		3,360		—		—		3,360
Amortizable intangible assets, net		—		1,877		—		—		1,877
Goodwill		—		479		—		—		479
Total Assets	$	277,123	$	205,478	$	—	$	(169,962)	$	312,639
Liabilities and stockholders’ equity
Liabilities
Accounts payable	$	—	$	8,313	$	—	$	—	$	8,313
Accrued expenses and other liabilities		4,655		25,703		—		—		30,358
Deferred tax liability, net		912		—		—		—		912
Notes payable and revolving loan agreement		—		1,500		—				1,500
Total liabilities	$	5,567	$	35,516	$	—	$	—	$	41,083
Stockholders’ equity		271,556		169,962		—		(169,962)		271,556
Total liabilities and stockholders’ equity	$	277,123	$	205,478	$	—	$	(169,962)	$	312,639



	Unaudited Supplemental Condensed Consolidating Statement of Operations
	For the Three Months Ended September 30, 2014 (in thousands)
			Guarantor		Non Guarantor		Elimination		Consolidated
	CCS		Subsidiaries		Subsidiaries		Entries		CCS

Home sales revenues	$	—	$	90,735	$	—	$	—	$	90,735
Cost of home sales revenues		—		70,896		—		—		70,896
Gross margin from home sales		—		19,839		—		—		19,839
Golf course and other revenue		—		1,226		—		—		1,226
Cost of golf course and other revenue		—		2,175		—		—		2,175
Gross margin from golf course and other		—		(949)		—		—		(949)
Selling, general, and administrative		3,803		8,781		—		—		12,584
Operating income		(3,803)		10,109		—		—		6,306
Other income (expense)
Equity in earnings from consolidated subsidiaries		6,503		—		—		(6,503)		—
Interest income		130		—		—		—		130
Interest expense		—		(2)		—		—		(2)
Acquisition expense		(119)		—		—		—		(119)
Other income		—		327		—		—		327
Gain/(Loss) on disposition of assets		—		55		—		—		55
Income before tax expense		2,711		10,489		—		(6,503)		6,697
Income tax expense		(1,416)		3,986		—		—		2,570
Deferred taxes on conversion to a corporation		—		—		—		—		—
Consolidated net income of Century Communities, Inc.		4,127		6,503		—		(6,503)		4,127
Net income attributable to the noncontrolling interests		—		—		—		—		—
Income attributable to common stockholders	$	4,127	$	6,503	$	—	$	(6,503)	$	4,127



	Unaudited Supplemental Condensed Consolidating Statement of Operations
	For the Three Months Ended September 30, 2013 (in thousands)
			Guarantor		Non Guarantor		Elimination		Consolidated
	CCS		Subsidiaries		Subsidiaries		Entries		CCS

Home sales revenues	$	—	$	41,494	$	—	$	—	$	41,494
Cost of home sales revenues		—		31,948		—		—		31,948
Gross margin from home sales		—		9,546		—		—		9,546
Golf course and other revenue		—		—		—		—		—
Cost of golf course and other revenue		—		—		—		—		—
Gross margin from golf course and other		—		—		—		—		—
Selling, general, and administrative		2,471		3,211		—		—		5,682
Operating income		(2,471)		6,335		—		—		3,864
Other income (expense)
Equity in earnings from consolidated subsidiaries		4,197		—		—		(4,197)
Interest income		98		—		—		—		98
Interest expense		—		—		—		—		—
Acquisition expense		(329)		—		—		—		(329)
Other income		—		151		—		—		151
Gain/(Loss) on disposition of assets		—		—		—		—		—
Income before tax expense		1,495		6,486		—		(4,197)		3,784
Income tax expense		(943)		2,289		—		—		1,346
Deferred taxes on conversion to a corporation		—		—		—		—		—
Consolidated net income of Century Communities, Inc.		2,438		4,197		—		(4,197)		2,438
Net income attributable to the noncontrolling interests		—		—		—		—		—
Income attributable to common stockholders	$	2,438	$	4,197	$	—	$	(4,197)	$	2,438



	Unaudited Supplemental Condensed Consolidating Statement of Operations
	For the Nine Months Ended September 30, 2014 (in thousands)
			Guarantor		Non Guarantor		Elimination		Consolidated
	CCS		Subsidiaries		Subsidiaries		Entries		CCS

Home sales revenues	$	—	$	217,734	$	—	$	—	$	217,734
Cost of home sales revenues		—		166,367		—		—		166,367
Gross margin from home sales		—		51,367		—		—		51,367
Golf course and other revenue		—		3,750		—		—		3,750
Cost of golf course and other revenue		—		4,329		—		—		4,329
Gross margin from golf course and other		—		(579)		—		—		(579)
Selling, general, and administrative		8,993		21,913		—		—		30,906
Operating income		(8,993)		28,875		—		—		19,882
Other income (expense)
Equity in earnings from consolidated subsidiaries		19,101		—		—		(19,101)		—
Interest income		267		—		—		—		267
Interest expense		—		(13)		—		—		(13)
Acquisition expense		(923)		—		—		—		(923)
Other income		—		585		—		—		585
Gain/(Loss) on disposition of assets		—		145		—		—		145
Income before tax expense		9,452		29,592		—		(19,101)		19,943
Income tax expense		(3,382)		10,491		—		—		7,109
Deferred taxes on conversion to a corporation		—		—		—		—		—
Consolidated net income of Century Communities, Inc.		12,834		19,101		—		(19,101)		12,834
Net income attributable to the noncontrolling interests		—		—		—		—		—
Income attributable to common stockholders	$	12,834	$	19,101	$	—	$	(19,101)	$	12,834



	Unaudited Supplemental Condensed Consolidating Statement of Operations
	For the Nine Months Ended September 30, 2013 (in thousands)
			Guarantor		Non Guarantor		Elimination		Consolidated
	CCS		Subsidiaries		Subsidiaries		Entries		CCS

Home sales revenues	$	—	$	106,934	$	568	$	—	$	107,502
Cost of home sales revenues		—		80,686		398		—		81,084
Gross margin from home sales		—		26,248		170		—		26,418
Golf course and other revenue		—		—		—		—		—
Cost of golf course and other revenue		—		—		—		—		—
Gross margin from golf course and other		—		—		—		—		—
Selling, general, and administrative		5,214		7,912		118		—		13,244
Operating income		(5,214)		18,336		52		—		13,174
Other income (expense)
Equity in earnings from consolidated subsidiaries		14,060		—		—		(14,060)		—
Interest income		152		—		—		—		152
Interest expense		—		—		—		—		—
Acquisition expense		(329)		—		—		—		(329)
Other income		—		332		—		—		332
Gain/(Loss) on disposition of assets		—		9		—		—		9
Income before tax expense		8,669		18,677		52		(14,060)		13,338
Income tax expense		(1,339)		4,669		—		—		3,330
Deferred taxes on conversion to a corporation		627		—		—		—		627
Consolidated net income of Century Communities, Inc.		9,381		14,008		52		(14,060)		9,381
Net income attributable to the noncontrolling interests		52		—		—		—		52
Income attributable to common stockholders	$	9,329	$	14,008	$	52	$	(14,060)	$	9,329



	Unaudited Supplemental Condensed Consolidating Statement of Cash Flow
	For the Nine Months Ended September 30, 2014 (in thousands)
			Guarantor		Non Guarantor		Elimination		Consolidated
	CCS		Subsidiaries		Subsidiaries		Entries		CCS

Net cash used in operating activities	$	(767)	$	(108,504)	$	—	$	—	$	(109,271)
Net cash used in investing activities	$	(287,323)	$	(178,628)	$	—	$	287,323	$	(178,628)
Financing activities:
Borrowings under revolving credit facilities	$	99,000	$	—	$	—	$	—	$	99,000
Payments on revolving credit facilities		(99,000)		—		—		—		(99,000)
Proceeds from issuance of senior notes		198,478		—		—		—		198,478
Proceeds from issuance of notes payable		—		5,894		—		—		5,894
Principal payments		—		(1,562)		—		—		(1,562)
Debt issuance costs		(5,132)		—		—		—		(5,132)
Net proceeds from issuances of common stock		81,890		—		—		—		81,890
Excess tax benefit on stock-based compensation		37		—		—		—		37
Payments from (and advances to) parent/subsidiary		—		287,323		—		(287,323)		—
Net cash provided by financing activities	$	275,273	$	291,655	$	—	$	(287,323)	$	279,605
Net increase (decrease) in cash and cash equivalents	$	(12,817)	$	4,523	$	—	$	—	$	(8,294)
Cash and cash equivalents
Beginning of period	$	106,614	$	3,384	$	—	$	—	$	109,998
End of period	$	93,796	$	7,908	$	—	$	—	$	101,704



	Unaudited Supplemental Condensed Consolidating Statement of Cash Flow
	For the Nine Months Ended September 30, 2013 (in thousands)
			Guarantor		Non Guarantor		Elimination		Consolidated
	CCS		Subsidiaries		Subsidiaries		Entries		CCS

Net cash used in operating activities	$	(965)	$	(52,278)	$	674	$	—	$	(52,569)
Net cash used in investing activities	$	(81,006)	$	(15,476)	$	—	$	81,006	$	(15,476)
Financing activities
Borrowings under revolving credit facilities	$	26,671	$	—	$	—	$	—	$	26,671
Payments on revolving credit facilities		(47,044)		—		—		—		(47,044)
Proceeds from issuance of notes payable		—		1,500		—		—		1,500
Principal payments		—		(12,833)		—		—		(12,833)
Net proceeds from issuances of common stock		223,729		—		—		—		223,729
Payments from (and advances to) parent/subsidiary		—		82,303		(1,297)		(81,006)		—
Contributions from members		1,500		—		—		—		1,500
Distributions to members		(3,830)		—		—		—		(3,830)
Distributions to noncontrolling interest		(257)		—		—		—		(257)
Net cash provided by financing activities	$	200,769	$	70,970	$	(1,297)	$	(81,006)	$	189,436
Net increase (decrease) in cash and cash equivalents	$	118,798	$	3,216	$	(623)	$	—	$	121,391
Cash and cash equivalents
Beginning of period	$	4,146	$	211	$	623	$	—	$	4,980
End of period	$	122,944	$	3,427	$	—	$	—	$	126,371

22. Supplemental Guarantor Information

We have determined that separate, full financial statements of the Subsidiary Guarantors would not be material to investors and, accordingly, supplemental financial information is presented below:



	Supplemental Condensed Consolidating Balance Sheet
	As of December 31, 2013 (in thousands)
			Guarantor		Non Guarantor		Elimination		Consolidated
	CCS		Subsidiaries		Subsidiaries		Entries		CCS
Assets
Cash and cash equivalents	$	106,614	$	3,384	$	—	$	—	$	109,998
Accounts receivable		—		4,438		—		—		4,438
Investment in and advances to subsidiaries		169,962		—		—		(169,962)		—
Inventories		—		184,072		—		—		184,072
Prepaid expenses and other assets		547		7,868		—		—		8,415
Property and equipment, net				3,360		—		—		3,360
Amortizable intangible assets, net		—		1,877		—		—		1,877
Goodwill		—		479		—		—		479
Total Assets		277,123		205,478		—		(169,962)		312,639
Liabilities and stockholders’ equity
Liabilities
Accounts payable	$	—	$	588	$	—	$	—	$	588
Accrued expenses and other liabilities		4,655		33,428		—		—		38,083
Deferred tax liability, net		912		—		—		—		912
Notes payable and revolving loan agreement		—		1,500		—				1,500
Total liabilities		5,567		35,516		—		—		41,083
Stockholders’ equity		271,556		169,962		—		(169,962)		271,556
Total liabilities and stockholders’ equity	$	277,123	$	205,478	$	—	$	(169,962)	$	312,639



	Supplemental Condensed Consolidating Balance Sheet
	As of December 31, 2012 (in thousands)
			Guarantor		Non Guarantor		Elimination		Consolidated
	CCS		Subsidiaries		Subsidiaries		Entries		CCS
Assets
Cash and cash equivalents	$	4,146	$	211	$	—	$	—	$	4,357
Cash held in trust		—		—		2,917		—		2,917
Accounts receivable		—		897		—		—		897
Investment in subsidiaries		52,127		—		—		(52,127)		—
Inventories		—		75,316		—		—		75,316
Prepaid expenses and other assets		—		2,057		—		—		2,057
Property and equipment, net		—		2,517		—		—		2,517
Assets of consolidated variable interest entities:
Cash and cash equivalents		—		—		623		—		623
Inventories		—		—		1,989		—		1,989
Total Assets	$	56,273	$	80,998	$	5,529	$	(52,127)	$	90,673
Liabilities and stockholders’ equity
Liabilities
Accounts payable	$	—	$	2,459	$	—	$	—	$	2,459
Accrued expenses and other liabilities		—		19,095		—		—		19,095
Payable to affiliates		95		—		—		—		95
Note payable and revolving loan agreement		20,373		12,833		—		—		33,206
Subordinated obligation due to member		11,244		—		—		—		11,244
Liabilities of consolidated variable interest entities:
Accrued expenses		—		—		13		—		13
Total liabilities		31,712		34,387		13		—		66,112
Stockholders’ equity		24,561		46,611		5,516		(52,127)		24,561
Total liabilities and stockholders’ equity	$	56,273	$	80,998	$	5,529	$	(52,127)	$	90,673



		Supplemental Condensed Consolidating Statement of Operations
	For the Year Ended December 31, 2013 (in thousands)
				Guarantor		Non Guarantor		Elimination		Consolidated
		CCS		Subsidiaries		Subsidiaries		Entries		CCS
Home sales revenues		$	—	$	170,565	$	568	$	—	$	171,133
Cost of home sale revenues			—		129,253		398		—		129,651
Gross margin from home sales			—		41,312		170		—		41,482
Selling general and administrative			8,571		14,933		118		—		23,622
Operating income			(8,571)		26,379		52		—		17,860
Other income (expense)
Equity in earnings from consolidated subsidiaries			19,067		—		—		(19,067)		—
Interest income			228		—		—		—		228
Interest expense			—		—		—		—		—
Other expense			—		(26)		—		—		(26)
Gain on disposition of assets			—		11		—		—		11
Income before tax expense			10,724		26,364		52		(19,067)		18,073
Income tax expense			(2,334)		7,349		—		—		5,015
Deferred taxes on conversion to a corporation			627		—		—		—		627
Consolidated net income			12,431		19,015		52		(19,067)		12,431
Net income attributable to the noncontrolling interests			52		—		—		—		52
Income attributable to common stockholders		$	12,379	$	19,015	$	52	$	(19,067)	$	12,379



	Supplemental Condensed Consolidating Statement of Operations
	For the Year Ended December 31, 2012 (in thousands)
			Guarantor		Non Guarantor		Elimination		Consolidated
	CCS		Subsidiaries		Subsidiaries		Entries		CCS
Home sales revenues	$	—	$	90,847	$	5,183	$	—	$	96,030
Cost of home sale revenues		—		72,331		3,117		—		75,448
Gross margin from home sales		—		18,516		2,066		—		20,582
Selling general and administrative		3,617		9,065		814		—		13,496
Operating income		(3,617)		9,451		1,252		—		7,086
Other income (expense)
Equity in earnings from consolidated subsidiaries		11,045		—		—		(11,045)		—
Interest income		11		—		—		—		11
Interest expense		—		—		—		—		—
Other income		—		293		49		—		342
Gain on disposition of assets		—		—		—		—		—
Income before tax expense		7,439		9,744		1,301		(11,045)		7,439
Income tax expense		—		—		—		—		—
Deferred taxes on conversion to a corporation		—		—		—		—		—
Consolidated net income		7,439		9,744		1,301		(11,045)		7,439
Net income attributable to the noncontrolling interests		1,301		—		—		—		1,301
Income attributable to common stockholders	$	6,138	$	9,744	$	1,301	$	(11,045)	$	6,138



	Supplemental Condensed Consolidating Statement of Cash Flow
	For the Year Ended December 31, 2013 (in thousands)
			Guarantor		Non Guarantor		Elimination		Consolidated
	CCS		Subsidiaries		Subsidiaries		Entries		CCS
Net cash used in operating activities	$	(976)	$	(69,865)	$	3,343	$	—	$	(67,498)
Net cash used in investing activities	$	(96,663)	$	(16,258)	$	—	$	96,663	$	(16,258)
Financing activities
Borrowings under revolving credit facilities	$	26,671	$	—	$	—	$	—	$	26,671
Payments on revolving credit facilities		(47,044)		—		—		—		(47,044)
Proceeds from issuance of notes payable		—		5,763		—		—		5,763
Principal payments		—		(17,096)		—		—		(17,096)
Debt issuance costs		—		—		—		—		—
Net proceeds from issuances of common stock		223,760		—		—		—		223,760
Payments from (and advances to) parent/subsidiary		—		100,629		(3,966)		(96,663)		—
Contributions from members		1,500		—		—		—		1,500
Distributions to members		(3,830)		—		—				(3,830)
Distributions to noncontrolling interest		(950)		—		—		—		(950)
Net cash provided by financing activities	$	200,107	$	89,296	$	(3,966)	$	(96,663)	$	188,774
Net increase (decrease) in cash and cash equivalents	$	102,468	$	3,173	$	(623)	$	—	$	105,018
Cash and cash equivalents
Beginning of period	$	4,146	$	211	$	623	$	—	$	4,980
End of period	$	106,614	$	3,384	$	—	$	—	$	109,998



	Supplemental Condensed Consolidating Statement of Cash Flow
	For the Year Ended December 31, 2012 (in thousands)
			Guarantor		Non Guarantor		Elimination		Consolidated
	CCS		Subsidiaries		Subsidiaries		Entries		CCS

Net cash used in operating activities	$	(3,606)	$	(11,090)	$	(1,205)	$	—	$	(15,901)
Net cash used in investing activities	$	(5,878	$	(839)	$	—	$	5,878	$	(839)
Financing activities:
Borrowings under line of credit	$	31,500	$	—	$	—	$	—	$	31,500
Payments on line of credit		(16,335)		—		—		—		(16,335)
Proceeds from debt issuances		—		11,123		—		—		11,123
Principal payments		—		(1,256)		—		—		(1,256)
Principal payments on long term debt - related party		—		(1,854)		—		—		(1,854)
Payments from (and advances to) parent/subsidiary		—		4,093		1,785		(5,878)		—
Distributions to members		(6,309)		—		—		—		(6,309)
Distributions to noncontrolling interest		(1,015)		—		—		—		(1,015)
Net cash provided by financing activities	$	7,841	$	12,106	$	1,785	$	(5,878)	$	15,854
Net increase (decrease) in cash and cash equivalents		(1,643)		177		580		—		(886)
Cash and cash equivalents
Beginning of period		5,789		34		43		—		5,866
End of period	$	4,146	$	211	$	623	$	—	$	4,980