Leases Leases

3 Months Ended

Mar. 31, 2019

Lease Expense [Abstract]

Lessee, Finance Leases [Text Block]

Leases

We have operating leases for our corporate and division offices, production facilities, model homes, and certain office and production equipment. Our leases have remaining lease terms of up to 10 years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the lease.

On January 1, 2019, we adopted ASU 2016-02, Leases (Topic 842), which requires lessees to recognize most leases on the balance sheet as ROU assets with corresponding lease liabilities. See Note 1 for additional discussion regarding the adoption of Topic 842. The ROU assets and lease liabilities are recognized based on the present value of lease payments over the lease term, discounted using our incremental borrowing rate at the commencement date of the lease. We recognize operating lease expense on a straight-line basis over the lease term.

We have elected to use the portfolio approach for certain equipment leases which have similar lease terms and payment schedules. Additionally, for certain equipment we account for the lease and non-lease components as a single lease component.

We have certain leases, primarily the leases of model homes, which have initial lease terms of twelve months or less ("Short-term leases"). We elected to exclude these leases from the recognition requirements under Topic 842, and these leases have not been included in our recognized ROU assets and lease liabilities.

We entered into a finance lease for production equipment on March 29, 2019. The finance lease is recorded in homebuilding "Property, plant and equipment, net" and "Accrued expenses and other liabilities" on the accompanying condensed consolidated balance sheets.

We did not incur any lease cost for the finance lease which commenced on March 29, 2019. The components of lease expense were as follows:

	Three Months Ended March 31, 2019
Lease expense
Operating lease expense	$	7,560
Short-term lease expense	5,605
Total lease expense	$	13,165

Other information related to leases was as follows:

	Three Months Ended March 31, 2019
Supplemental Cash Flows Information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - operating leases	$	6,563
ROU assets obtained in exchange for lease obligations:
Operating leases	$	5,980
Finance leases	$	535
Weighted-average remaining lease term (in years):
Operating leases	4.8
Finance leases	7.0
Weighted-average discount rate:
Operating leases	3.7		%
Finance leases	3.4		%

We are committed under multiple non-cancellable operating and finance leases involving office space, model homes, production facilities, automobiles and equipment. Future minimum lease payments under these leases as of March 31, 2019 were as follows:

Years Ending December 31,	Operating Leases			Finance Leases
2019	$	24,838		$	51
2020	22,182			69
2021	17,123			69
2022	13,423			69
2023	9,917			69
Thereafter	14,347			292
Total minimum lease payments	101,830			619
Less:
Imputed interest	(8,732		)	(84		)
Short-term lease payments	(6,899		)	—
Total lease liability	$	86,199		$	535

Lessee, Operating Leases [Text Block]

Leases

We have operating leases for our corporate and division offices, production facilities, model homes, and certain office and production equipment. Our leases have remaining lease terms of up to 10 years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the lease.

On January 1, 2019, we adopted ASU 2016-02, Leases (Topic 842), which requires lessees to recognize most leases on the balance sheet as ROU assets with corresponding lease liabilities. See Note 1 for additional discussion regarding the adoption of Topic 842. The ROU assets and lease liabilities are recognized based on the present value of lease payments over the lease term, discounted using our incremental borrowing rate at the commencement date of the lease. We recognize operating lease expense on a straight-line basis over the lease term.

We have elected to use the portfolio approach for certain equipment leases which have similar lease terms and payment schedules. Additionally, for certain equipment we account for the lease and non-lease components as a single lease component.

We have certain leases, primarily the leases of model homes, which have initial lease terms of twelve months or less ("Short-term leases"). We elected to exclude these leases from the recognition requirements under Topic 842, and these leases have not been included in our recognized ROU assets and lease liabilities.

We entered into a finance lease for production equipment on March 29, 2019. The finance lease is recorded in homebuilding "Property, plant and equipment, net" and "Accrued expenses and other liabilities" on the accompanying condensed consolidated balance sheets.

We did not incur any lease cost for the finance lease which commenced on March 29, 2019. The components of lease expense were as follows:

	Three Months Ended March 31, 2019
Lease expense
Operating lease expense	$	7,560
Short-term lease expense	5,605
Total lease expense	$	13,165

Other information related to leases was as follows:

	Three Months Ended March 31, 2019
Supplemental Cash Flows Information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - operating leases	$	6,563
ROU assets obtained in exchange for lease obligations:
Operating leases	$	5,980
Finance leases	$	535
Weighted-average remaining lease term (in years):
Operating leases	4.8
Finance leases	7.0
Weighted-average discount rate:
Operating leases	3.7		%
Finance leases	3.4		%

We are committed under multiple non-cancellable operating and finance leases involving office space, model homes, production facilities, automobiles and equipment. Future minimum lease payments under these leases as of March 31, 2019 were as follows:

Years Ending December 31,	Operating Leases			Finance Leases
2019	$	24,838		$	51
2020	22,182			69
2021	17,123			69
2022	13,423			69
2023	9,917			69
Thereafter	14,347			292
Total minimum lease payments	101,830			619
Less:
Imputed interest	(8,732		)	(84		)
Short-term lease payments	(6,899		)	—
Total lease liability	$	86,199		$	535