Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | ||
Jun. 30, 2014 | Aug. 12, 2014 | Aug. 12, 2014 | |
Common stock, Class A | Common stock, Class B | ||
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-Q | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Jun-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q2 | ' | ' |
Trading Symbol | 'WLH | ' | ' |
Entity Registrant Name | 'WILLIAM LYON HOMES | ' | ' |
Entity Central Index Key | '0001095996 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Non-accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 27,414,186 | 3,813,884 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $102,781 | $171,672 |
Restricted cash | 504 | 854 |
Receivables | 21,859 | 20,839 |
Real estate inventories | ' | ' |
Owned | 931,186 | 671,790 |
Not owned | 0 | 12,960 |
Deferred loan costs, net | 12,075 | 9,575 |
Goodwill | 14,209 | 14,209 |
Intangibles, net of accumulated amortization of $8,726 as of June 30, 2014 and $7,611 as of December 31, 2013 | 1,651 | 2,766 |
Deferred income taxes, net valuation allowance of $3,195 as of June 30, 2014 and $3,959 as of December 31, 2013 | 91,853 | 95,580 |
Other assets, net | 13,778 | 10,166 |
Total assets | 1,189,896 | 1,010,411 |
LIABILITIES AND EQUITY | ' | ' |
Accounts payable | 31,043 | 17,099 |
Accrued expenses | 70,056 | 60,203 |
Liabilities from inventories not owned | 0 | 12,960 |
Notes payable | 35,906 | 38,060 |
Senior Notes | 580,732 | 431,295 |
Liabilities | 717,737 | 559,617 |
Commitments and contingencies | ' | ' |
Equity: | ' | ' |
Preferred stock, par value $0.01 per share, 10,000,000 shares authorized, no shares issued and outstanding as of June 30, 2014 and December 31, 2013, respectively | 0 | 0 |
Additional paid-in capital | 312,479 | 311,863 |
Retained earnings | 136,984 | 116,002 |
Total William Lyon Homes stockholdersb equity | 449,781 | 428,179 |
Noncontrolling interests | 22,378 | 22,615 |
Total equity | 472,159 | 450,794 |
Total liabilities and equity | 1,189,896 | 1,010,411 |
Common stock, Class A | ' | ' |
Equity: | ' | ' |
Common stock | 280 | 276 |
Common stock, Class B | ' | ' |
Equity: | ' | ' |
Common stock | 38 | 38 |
5 3/4% Senior Notes due April 15, 2019 | ' | ' |
LIABILITIES AND EQUITY | ' | ' |
Senior Notes | 150,000 | 0 |
8 1/2% Senior Notes due November 15, 2020 | ' | ' |
LIABILITIES AND EQUITY | ' | ' |
Senior Notes | $430,732 | $431,295 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Intangibles, accumulated amortization | $8,726 | $7,611 |
Valuation allowance | $3,195 | $3,959 |
Preferred stock, par value (in USD per share) | $0.01 | $0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, Class A | ' | ' |
Common stock, par value (in USD per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued | 28,013,340 | 27,622,283 |
Common stock, shares outstanding | 27,414,186 | 27,216,813 |
Common stock, Class B | ' | ' |
Common stock, par value (in USD per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued | 3,813,884 | 3,813,884 |
Common stock, shares outstanding | 3,813,884 | 3,813,884 |
5 3/4% Senior Notes due April 15, 2019 | ' | ' |
Stated interest rate | 5.75% | 5.75% |
8 1/2% Senior Notes due November 15, 2020 | ' | ' |
Stated interest rate | 8.50% | 8.50% |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Operating revenue | ' | ' | ' | ' |
Home sales | $168,157 | $120,648 | $308,456 | $197,082 |
Lots, land and other sales | 1,711 | 3,248 | 1,711 | 3,248 |
Construction services | 9,941 | 7,542 | 19,593 | 11,961 |
Operating revenue | 179,809 | 131,438 | 329,760 | 212,291 |
Operating costs | ' | ' | ' | ' |
Cost of sales b homes | -128,306 | -96,647 | -234,518 | -159,975 |
Cost of sales b lots, land and other | -1,320 | -2,838 | -1,320 | -2,838 |
Construction services | -8,405 | -5,299 | -16,473 | -9,337 |
Sales and marketing | -8,924 | -6,135 | -15,482 | -10,803 |
General and administrative | -11,019 | -9,292 | -23,155 | -17,816 |
Amortization of intangible assets | -502 | -360 | -1,120 | -982 |
Other | -729 | -566 | -1,291 | -1,051 |
Operating costs | -159,205 | -121,137 | -293,359 | -202,802 |
Operating income | 20,604 | 10,301 | 36,401 | 9,489 |
Interest expense, net of amounts capitalized | 0 | -1,267 | 0 | -2,551 |
Other income, net | 354 | 56 | 473 | 143 |
Income before reorganization items | 20,958 | 9,090 | 36,874 | 7,081 |
Reorganization items, net | 0 | 0 | 0 | -464 |
Income before provision for income taxes | 20,958 | 9,090 | 36,874 | 6,617 |
Provision for income taxes | -6,206 | -10 | -10,780 | -10 |
Net income | 14,752 | 9,080 | 26,094 | 6,607 |
Less: Net income attributable to noncontrolling interests | -2,467 | -1,686 | -5,112 | -1,761 |
Net income attributable to William Lyon Homes | 12,285 | 7,394 | 20,982 | 4,846 |
Preferred stock dividends | 0 | -544 | 0 | -1,528 |
Net income available to common stockholders | $12,285 | $6,850 | $20,982 | $3,318 |
Income per common share: | ' | ' | ' | ' |
Basic (in USD per share) | $0.39 | $0.31 | $0.67 | $0.18 |
Diluted (in USD per share) | $0.38 | $0.29 | $0.64 | $0.17 |
Weighted average common shares outstanding: | ' | ' | ' | ' |
Basic (in shares) | 31,224,252 | 22,103,841 | 31,159,422 | 18,297,264 |
Diluted (in shares) | 32,750,108 | 23,309,419 | 32,669,560 | 19,159,912 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENT OF EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Non-Controlling Interests [Member] | |
In Thousands, except Share data, unless otherwise specified | ||||||
Beginning Balance at Dec. 31, 2013 | $450,794 | $314 | $311,863 | $116,002 | $22,615 | |
Beginning Balance (in shares) at Dec. 31, 2013 | ' | 31,436,000 | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | |
Net income | 26,094 | ' | ' | 20,982 | 5,112 | |
Cash contributions by members of consolidated entities | 8,742 | ' | ' | ' | 8,742 | |
Cash distributions to members of consolidated entities | -14,091 | ' | ' | ' | -14,091 | |
Offering costs related to secondary sale of common stock | -105 | ' | -105 | ' | ' | |
Excercise of stock options | 285 | 1 | 284 | ' | ' | |
Exercise of stock options (in shares) | ' | 140,000 | ' | ' | ' | |
Shares remitted to Company | [1] | -1,414 | ' | -1,414 | ' | ' |
Shares remitted to Company (in shares) | [1] | ' | -85,000 | ' | ' | ' |
Stock based compensation | 1,854 | 3 | 1,851 | ' | ' | |
Stock based compensation (in shares) | ' | 336,000 | ' | ' | ' | |
Ending Balance at Jun. 30, 2014 | $472,159 | $318 | $312,479 | $136,984 | $22,378 | |
Ending Balance (in shares) at Jun. 30, 2014 | ' | 31,827,000 | ' | ' | ' | |
[1] | Represents shares remitted to the Company by employees to satisfy personal income tax liabilities resulting from share based compensation plans. |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Operating activities | ' | ' |
Net income | $26,094 | $6,607 |
Adjustments to reconcile net income to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 2,683 | 1,627 |
Provision for deferred income taxes | 3,727 | 0 |
Stock based compensation expense | 1,854 | 1,327 |
Loss on sale of property and equipment | 0 | 4 |
Net changes in operating assets and liabilities: | ' | ' |
Restricted cash | 350 | 0 |
Receivables | -1,020 | -14,582 |
Real estate inventories b owned | -257,546 | -68,905 |
Real estate inventories b not owned | 12,960 | 7,868 |
Other assets | -2,479 | 1,945 |
Accounts payable | 13,944 | 2,878 |
Accrued expenses | 9,852 | 2,404 |
Liabilities from real estate inventories not owned | -12,960 | -7,868 |
Net cash used in operating activities | -202,541 | -66,695 |
Investing activities | ' | ' |
Purchases of property and equipment | -1,640 | -1,536 |
Net cash used in investing activities | -1,640 | -1,536 |
Financing activities | ' | ' |
Proceeds from borrowings on notes payable | 34,153 | 41,260 |
Principal payments on notes payable | -38,720 | -19,115 |
Proceeds from issuance of 5 3/4% senior notes | 150,000 | 0 |
Payment of deferred loan costs | -3,560 | -370 |
Proceeds from exercise of stock options | 285 | 179,438 |
Shares remitted to Company for employee tax witholding | -1,414 | 0 |
Offering costs related to secondary sale of common stock | -105 | -15,517 |
Payment of preferred stock dividends | 0 | -2,550 |
Noncontrolling interests contributions | 8,742 | 34,848 |
Noncontrolling interests distributions | -14,091 | -14,421 |
Net cash provided by financing activities | 135,290 | 203,573 |
Net decrease in cash and cash equivalents | -68,891 | 135,342 |
Cash and cash equivalents b beginning of period | 171,672 | 71,075 |
Cash and cash equivalents b end of period | 102,781 | 206,417 |
Supplemental disclosures of non-cash investing and financing activities: | ' | ' |
Conversion of convertible preferred stock to common stock | 0 | 70,386 |
Issuance of note payable related to land acquisition | $2,413 | $16,238 |
Basis_of_Presentation_and_Sign
Basis of Presentation and Significant Accounting Policies (Notes) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
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”), is primarily engaged in designing, constructing, marketing and selling single-family detached and attached homes in California, Arizona, Nevada and Colorado (under the Village Homes brand). | ||||||||||||||||
Initial Public Offering | ||||||||||||||||
On May 21, 2013, Parent completed its initial public offering of 10,005,000 shares of Class A Common Stock, which consisted of 7,177,500 shares sold by Parent and 2,827,500 shares sold by the selling stockholder. The 10,005,000 shares in the offering were sold at a price to the public of $25.00 per share. Parent raised total net proceeds for the Company of approximately $163.7 million in the offering, after deducting the underwriting discount and offering expenses. The Company did not receive any proceeds from the sale of shares by the selling stockholder. | ||||||||||||||||
Parent's authorized capital stock consists of 190,000,000 shares, 150,000,000 of which are designated as Class A Common Stock with a par value of $0.01 per share, 30,000,000 of which are designated as Class B Common Stock with a par value of $0.01 per share and 10,000,000 of which are designated as preferred stock with a par value of $0.01 per share. | ||||||||||||||||
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 June 30, 2014 and December 31, 2013 and revenues and expenses for the three and six month periods ended June 30, 2014 and 2013. 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, and valuation of deferred tax assets. The current economic environment increases the uncertainty inherent in these estimates and assumptions. | ||||||||||||||||
The condensed 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 ("VIEs") in which the Company is considered the primary beneficiary (see Note 2). 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. | ||||||||||||||||
The condensed consolidated financial statements were prepared from our books and records without audit and include all adjustments (consisting of only normal recurring accruals) necessary to present a fair statement of results for the interim periods presented. Readers of this quarterly report should refer to our audited consolidated financial statements as of and for the year ended December 31, 2013, which are included in our 2013 Annual Report on Form 10-K, as certain disclosures that would substantially duplicate those contained in the audited financial statements have not been included in this report. | ||||||||||||||||
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 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. | ||||||||||||||||
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 approximately one to one and one quarter percent of the sales price of its homes against the possibility of future charges relating to its one-year limited warranty 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 assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary. Changes in the Company’s warranty liability for the six months ended June 30, 2014 and 2013, are as follows (in thousands): | ||||||||||||||||
Six | Six | |||||||||||||||
Months | Months | |||||||||||||||
Ended | Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Warranty liability, beginning of period | $ | 14,935 | $ | 14,317 | ||||||||||||
Warranty provision during period | 3,333 | 1,732 | ||||||||||||||
Warranty payments during period | (3,449 | ) | (2,569 | ) | ||||||||||||
Warranty charges related to pre-existing warranties during period | 360 | 226 | ||||||||||||||
Warranty charges related to construction services projects | 652 | 144 | ||||||||||||||
Warranty liability, end of period | $ | 15,831 | $ | 13,850 | ||||||||||||
Interest incurred under the Company’s debt obligations, as more fully discussed in Note 5, 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 three months ended June 30, 2014 and 2013 are as follows (in thousands): | ||||||||||||||||
Three | Three | Six | Six | |||||||||||||
Months | Months | Months | Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Interest incurred | $ | 11,919 | $ | 7,849 | $ | 21,314 | $ | 15,000 | ||||||||
Less: Interest capitalized | 11,919 | 6,582 | 21,314 | 12,449 | ||||||||||||
Interest expense, net of amounts capitalized | $ | — | $ | 1,267 | $ | — | $ | 2,551 | ||||||||
Cash paid for interest | $ | 19,051 | $ | 14,350 | $ | 19,671 | $ | 14,350 | ||||||||
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 that potentially subject the Company to concentrations of credit risk are primarily cash and cash equivalents, restricted cash, receivables, and deposits. The Company typically places its cash and cash equivalents 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 11. | ||||||||||||||||
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 June 30, 2014 and December 31, 2013. The Company monitors the cash balances in its operating accounts and adjusts the cash balances between accounts based on operational needs; 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. | ||||||||||||||||
Deferred Loan Costs | ||||||||||||||||
Deferred loan costs represent debt issuance costs and are primarily amortized to interest incurred using the straight line method which approximates the effective interest method. | ||||||||||||||||
Goodwill | ||||||||||||||||
In accordance with the provisions of ASC 350, Intangibles, Goodwill and Other, goodwill amounts are not amortized, but rather are analyzed for impairment at the reporting segment level. Goodwill is analyzed on an annual basis, or when indicators of impairment exist. We have determined that we have five reporting segments, as discussed in Note 3, and we perform an annual goodwill impairment analysis during the fourth quarter of each fiscal year. | ||||||||||||||||
Intangible Assets | ||||||||||||||||
Recorded intangible assets primarily relate to construction management contracts, homes in backlog, and joint venture management fee contracts recorded in conjunction with FASB Topic 852, Reorganizations ("ASC 852"). Such assets 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. | ||||||||||||||||
Income (loss) per common share | ||||||||||||||||
The Company computes income (loss) per common share in accordance with FASB ASC Topic 260, Earnings per Share, which requires income (loss) 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 (loss) between the holders of common stock and a company’s participating security holders. | ||||||||||||||||
Basic income (loss) 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 (loss) per common share, basic income (loss) per common share is further adjusted to include the effect of potential dilutive common shares. | ||||||||||||||||
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 is provided to reduce net deferred tax assets to an amount that is more likely than not to be realized. ASC 740 prescribes a recognition threshold and a measurement criteria 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. |
Variable_Interest_Entities_and
Variable Interest Entities and Noncontrolling Interests (Notes) | 6 Months Ended |
Jun. 30, 2014 | |
Noncontrolling Interest [Abstract] | ' |
Variable Interest Entities and Noncontrolling Interests | ' |
Variable Interest Entities and Noncontrolling Interests | |
During the six months ended June 30, 2014, the Company formed one joint venture for the purpose of land development and homebuilding activities which we have determined to be a VIE. The Company, as the managing member, has the power to direct the activities of the VIE since it manages the daily operations and has exposure to the risks and rewards of the VIE, which is based on the division of income and loss per the joint venture agreement. Therefore, the Company is the primary beneficiary of the joint venture, and the VIE was consolidated as of June 30, 2014. The Company is also party to an additional three joint ventures that were formed in prior periods, for which the Company has also determined that it is the primary beneficiary, and thus has also included them in its consolidated results as of June 30, 2014, and December 31, 2013. | |
As of June 30, 2014, the assets of the consolidated VIEs totaled $73.5 million, of which $6.7 million was cash and $63.7 million was real estate inventories. The liabilities of the consolidated VIEs totaled $35.5 million, primarily comprised of notes payable, accounts payable and accrued liabilities. | |
As of December 31, 2013, the assets of the consolidated VIEs totaled $66.4 million, of which $4.7 million was cash and $56.8 million was real estate inventories. The liabilities of the consolidated VIEs totaled $27.1 million, primarily comprised of notes payable, accounts payable and accrued liabilities. |
Segment_Information_Notes
Segment Information (Notes) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Information | ' | |||||||||||||||
Segment Information | ||||||||||||||||
The Company operates one principal homebuilding business. In accordance with FASB ASC Topic 280, Segment Reporting (“ASC 280”), the Company has determined that each of its operating divisions is an operating segment. | ||||||||||||||||
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 Executive Chairman, Chief Executive Officer and Chief Operating Officer have been identified as the chief operating decision makers. The Company’s chief operating decision makers direct 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. In accordance with the aggregation criteria defined by ASC 280, the Company’s homebuilding operating segments have been grouped into five reportable segments: Southern California, consisting of an operating division with operations in Orange, Los Angeles, Riverside, San Bernardino and San Diego counties; Northern California, consisting of an operating division with 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; and Colorado, consisting of operations in the Denver, Colorado metropolitan area, Fort Collins, and Granby, Colorado markets. | ||||||||||||||||
Corporate develops and implements strategic initiatives and supports the Company’s operating divisions 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): | ||||||||||||||||
Three | Three | Six | Six | |||||||||||||
Months | Months | Months | Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Operating revenue: | ||||||||||||||||
Southern California | $ | 115,942 | $ | 44,304 | $ | 203,321 | $ | 55,550 | ||||||||
Northern California | 19,875 | 14,988 | 46,751 | 28,325 | ||||||||||||
Arizona | 16,431 | 33,549 | 29,709 | 55,178 | ||||||||||||
Nevada | 18,392 | 17,740 | 35,541 | 32,501 | ||||||||||||
Colorado | 9,169 | 20,857 | 14,438 | 40,737 | ||||||||||||
Total operating revenue | $ | 179,809 | $ | 131,438 | $ | 329,760 | $ | 212,291 | ||||||||
Three | Three | Six | Six | |||||||||||||
Months | Months | Months | Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Income (loss) before provision for income taxes | ||||||||||||||||
Southern California | $ | 20,924 | $ | 6,100 | $ | 37,022 | $ | 5,426 | ||||||||
Northern California | 2,269 | 2,904 | 6,809 | 4,034 | ||||||||||||
Arizona | 2,321 | 3,723 | 3,672 | 4,808 | ||||||||||||
Nevada | 1,673 | 1,457 | 3,029 | 2,526 | ||||||||||||
Colorado | (453 | ) | 722 | (1,112 | ) | 1,445 | ||||||||||
Corporate | (5,776 | ) | (5,816 | ) | (12,546 | ) | (11,622 | ) | ||||||||
Income (loss) before provision for income taxes | $ | 20,958 | $ | 9,090 | $ | 36,874 | $ | 6,617 | ||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||
Homebuilding assets: | ||||||||||||||||
Southern California | $ | 355,760 | $ | 275,975 | ||||||||||||
Northern California | 210,681 | 143,693 | ||||||||||||||
Arizona | 170,878 | 157,892 | ||||||||||||||
Nevada | 127,906 | 85,695 | ||||||||||||||
Colorado | 105,021 | 60,233 | ||||||||||||||
Corporate (1) | 219,650 | 286,923 | ||||||||||||||
Total homebuilding assets | $ | 1,189,896 | $ | 1,010,411 | ||||||||||||
-1 | Comprised primarily of cash and cash equivalents, deferred income taxes, receivables, deferred loan costs, and other assets. |
Real_Estate_Inventories_Notes
Real Estate Inventories (Notes) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Real Estate [Abstract] | ' | |||||||
Real Estate Inventories | ' | |||||||
Real Estate Inventories | ||||||||
Real estate inventories consist of the following (in thousands): | ||||||||
Successor | ||||||||
30-Jun-14 | 31-Dec-13 | |||||||
Real estate inventories owned: | ||||||||
Land deposits | $ | 41,252 | $ | 46,632 | ||||
Land and land under development | 637,477 | 458,437 | ||||||
Homes completed and under construction | 212,064 | 144,736 | ||||||
Model homes | 40,393 | 21,985 | ||||||
Total | $ | 931,186 | $ | 671,790 | ||||
Real estate inventories not owned: (1) | ||||||||
Other land options contracts — land banking arrangement | $ | — | $ | 12,960 | ||||
-1 | Represents the consolidation of a land banking arrangement, net of deposits. The final lots attributable to this amount were purchased in April 2014. |
Senior_Notes_and_Secured_Indeb
Senior Notes and Secured Indebtedness (Notes) | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||
Senior Notes and Secured Indebtedness | ' | |||||||||||||||||||||||
Note 5—Senior Notes and Secured Indebtedness | ||||||||||||||||||||||||
Successor | ||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||
Notes payable: | ||||||||||||||||||||||||
Construction notes payable | $ | 29,878 | $ | 24,198 | ||||||||||||||||||||
Seller financing | 6,028 | 13,862 | ||||||||||||||||||||||
Revolving lines of credit | — | — | ||||||||||||||||||||||
Total notes payable | $ | 35,906 | $ | 38,060 | ||||||||||||||||||||
Senior notes: | ||||||||||||||||||||||||
5 3/4% Senior Notes due April 15, 2019 | $ | 150,000 | $ | — | ||||||||||||||||||||
8 1/2% Senior Notes due November 15, 2020 | 430,732 | 431,295 | ||||||||||||||||||||||
Total senior notes | $ | 580,732 | $ | 431,295 | ||||||||||||||||||||
Total notes payable and senior notes | $ | 616,638 | $ | 469,355 | ||||||||||||||||||||
As of June 30, 2014, the maturities of the Notes payable, 5 3/4% Senior Notes, and 8 1/2% Senior Notes are as follows (in thousands): | ||||||||||||||||||||||||
Year Ending December 31, | ||||||||||||||||||||||||
2014 | $ | 486 | ||||||||||||||||||||||
2015 | 5,542 | |||||||||||||||||||||||
2016 | 29,878 | |||||||||||||||||||||||
2017 | — | |||||||||||||||||||||||
2018 | — | |||||||||||||||||||||||
Thereafter | 575,000 | |||||||||||||||||||||||
$ | 610,906 | |||||||||||||||||||||||
Maturities above exclude premium of $5,732 as of June 30, 2014. | ||||||||||||||||||||||||
Senior Notes | ||||||||||||||||||||||||
5 3/4% Senior Notes Due 2019 | ||||||||||||||||||||||||
On March 31, 2014, William Lyon Homes, Inc., a California corporation and wholly-owned subsidiary of Parent (“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. | ||||||||||||||||||||||||
As of June 30, 2014, the outstanding amount of the notes was $150 million. The 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 certain of its existing and future direct and indirect wholly-owned 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, 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: | ||||||||||||||||||||||||
Year | Percentage | |||||||||||||||||||||||
15-Apr-16 | 104.313 | % | ||||||||||||||||||||||
15-Oct-16 | 102.875 | % | ||||||||||||||||||||||
15-Apr-17 | 101.438 | % | ||||||||||||||||||||||
April 15, 2018 and thereafter | 100 | % | ||||||||||||||||||||||
Prior to April 15, 2016, the 5.75% 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 April 15, 2016, California Lyon may, at its option on one or more occasions, redeem the 5.75% Notes in an aggregate principal amount not to exceed 35% of the aggregate principal amount of the 5.75% Notes issued prior to such date at a redemption price (expressed as a percentage of principal amount) of 105.75%, 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. | ||||||||||||||||||||||||
The indenture governing the 5.75% Notes contains 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 Indenture. The Company was in compliance with all such covenants as of June 30, 2014. | ||||||||||||||||||||||||
8 1/2% Senior Notes Due 2020 | ||||||||||||||||||||||||
On November 8, 2012, California Lyon completed its offering of 8 1/2% 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. | ||||||||||||||||||||||||
On October 24, 2013, California Lyon completed the sale 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, resulting in net proceeds of approximately $104.6 million. | ||||||||||||||||||||||||
As of both June 30, 2014 and December 31, 2013, the outstanding principal amount of the 8.5% Notes was $431 million. The 8.5% Notes bear interest at a rate of 8.5% per annum, payable semiannually in arrears on May 15 and November 15, and mature on November 15, 2020. The 8.5% Notes are are unconditionally guaranteed on a joint and several unsecured basis by Parent and by certain of its existing and future subsidiaries. The 8.5% Notes are California Lyon's and the guarantors' senior unsecured obligations. The 8.5% Notes and the guarantees rank senior to all of California Lyon’s and the guarantors’ existing and future subordinated debt, and rank equally in right of payment with all of California Lyon's and the guarantors' existing and future unsecured senior debt, including the 5.75% Notes. 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. | ||||||||||||||||||||||||
The indenture governing the 8.5% Notes contains 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 or make other distributions or repurchase stock; (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 Indenture. The Company was in compliance with all such covenants as of June 30, 2014. | ||||||||||||||||||||||||
Notes Payable | ||||||||||||||||||||||||
Revolving Lines of Credit | ||||||||||||||||||||||||
On August 7, 2013, California Lyon and Parent entered into a credit agreement providing for a revolving credit facility of up to $100 million (the “Revolver”). The Revolver will mature on August 5, 2016, unless terminated earlier pursuant to the terms of the Revolver. The Revolver contains an uncommitted accordion feature under which its aggregate principal amount can be increased to up to $125 million under certain circumstances, as well as a sublimit of $50 million for letters of credit. The Revolver contains various covenants, including financial covenants relating to tangible net worth, leverage, liquidity and interest coverage, as well as a limitation on investments in joint ventures and non-guarantor subsidiaries. The total amount available under the Revolver is subject to a borrowing base calculation. | ||||||||||||||||||||||||
The Revolver contains customary events of default, subject to cure periods in certain circumstances, that would result in the termination of the commitment and permit the lenders to accelerate payment on outstanding borrowings and require cash collateralization of letters of credit, 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. If a change in control of the Company occurs, the lenders may terminate the commitment and require that California Lyon repay outstanding borrowings under the Revolver and cash collateralize letters of credit. Interest rates on borrowings generally will be based on either LIBOR or a base rate, plus the applicable spread. The commitment fee on the unused portion of the Facility currently accrues at an annual rate of 0.50%. | ||||||||||||||||||||||||
Borrowings under the Revolver, the availability of which is subject to a borrowing base formula, are required to be guaranteed by Parent and certain of 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. As of June 30, 2014, the Revolver was undrawn, the Company had issued a letter of credit for $4.0 million, reducing the amount available under the Revolver. On July 3, 2014, the Revolver was amended in conjunction with a transaction occurring subsequent to the balance sheet date (see Note 12 - Subsequent Events for further information regarding this transaction). The amendment increased the maximum leverage ratio from 60% to 75% for one year following such transaction. The amendment also established a minimum borrowing base availability of $50.0 million. | ||||||||||||||||||||||||
Construction Notes Payable | ||||||||||||||||||||||||
Certain of the Company's consolidated joint ventures have entered into construction notes payable agreements. The issuance date, total availability under each facility outstanding, maturity date and interest rate are listed in the table below as of June 30, 2014: | ||||||||||||||||||||||||
Issuance Date | Facility Size | Outstanding | Maturity | Current Rate | ||||||||||||||||||||
March, 2014 | $ | 26 | $ | 3.7 | October, 2016 | 3.15 | % | -1 | ||||||||||||||||
December, 2013 | 18.6 | 10.9 | January, 2016 | 4.25 | % | -1 | ||||||||||||||||||
June, 2013 | 28 | 15.3 | June, 2016 | 4 | % | -2 | ||||||||||||||||||
$ | 72.6 | $ | 29.9 | |||||||||||||||||||||
(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 the prime rate +0.5%, with a rate floor of 4.0% . | ||||||||||||||||||||||||
Seller Financing | ||||||||||||||||||||||||
At June 30, 2014, the Company had $6.0 million of notes payable outstanding related to two land acquisitions for which seller financing was provided. The first note had a balance of $4.7 million as of June 30, 2014, bears interest at 7% per annum, is secured by the underlying land, and matures in May 2015. The second land acquisition consists of two separate notes, the first having a balance of $0.5 million as of June 30, 2014 and maturing in October 2014, and the second having a balance of $0.9 million as of June 30, 2014 and maturing in January 2015. Both notes bear interest at 4% per annum. | ||||||||||||||||||||||||
GUARANTOR AND NON-GUARANTOR FINANCIAL STATEMENTS | ||||||||||||||||||||||||
The following consolidating financial information includes: | ||||||||||||||||||||||||
(1) Consolidating balance sheets as of June 30, 2014 and December 31, 2013; consolidating statements of operations for the three and six months ended June 30, 2014 and 2013; and consolidating statements of cash flows for the six month periods ended June 30, 2014 and 2013, 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 Lyon 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 June 30, 2014 and December 31, 2013, and for the three and six month periods ended June 30, 2014 and 2013. | ||||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Unconsolidated | ||||||||||||||||||||||||
Delaware | California | Guarantor | Non-Guarantor | Eliminating | Consolidated | |||||||||||||||||||
Lyon | Lyon | Subsidiaries | Subsidiaries | Entries | Company | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 95,644 | $ | 61 | $ | 7,076 | $ | — | $ | 102,781 | ||||||||||||
Restricted cash | — | 504 | — | — | — | 504 | ||||||||||||||||||
Receivables | — | 17,294 | 1,355 | 3,210 | — | 21,859 | ||||||||||||||||||
Real estate inventories | ||||||||||||||||||||||||
Owned | — | 851,061 | 3,336 | 76,789 | — | 931,186 | ||||||||||||||||||
Deferred loan costs, net | — | 12,075 | — | — | — | 12,075 | ||||||||||||||||||
Goodwill | — | 14,209 | — | — | — | 14,209 | ||||||||||||||||||
Intangibles, net | — | 1,651 | — | — | — | 1,651 | ||||||||||||||||||
Deferred income taxes, net | — | 91,853 | — | — | — | 91,853 | ||||||||||||||||||
Other assets, net | — | 11,564 | 1,892 | 322 | — | 13,778 | ||||||||||||||||||
Investments in subsidiaries | 449,781 | (35,403 | ) | — | — | (414,378 | ) | — | ||||||||||||||||
Intercompany receivables | — | — | 229,665 | — | (229,665 | ) | — | |||||||||||||||||
Total assets | $ | 449,781 | $ | 1,060,452 | $ | 236,309 | $ | 87,397 | $ | (644,043 | ) | $ | 1,189,896 | |||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||
Accounts payable | $ | — | $ | 20,571 | $ | 5,282 | $ | 5,190 | $ | — | $ | 31,043 | ||||||||||||
Accrued expenses | — | 68,931 | 1,028 | 97 | — | 70,056 | ||||||||||||||||||
Notes payable | — | 4,660 | 1,368 | 29,878 | — | 35,906 | ||||||||||||||||||
5 3/4% Senior Notes | — | 150,000 | — | — | — | 150,000 | ||||||||||||||||||
8 1/2% Senior Notes | — | 430,732 | — | — | — | 430,732 | ||||||||||||||||||
Intercompany payables | — | 164,408 | — | 65,257 | (229,665 | ) | — | |||||||||||||||||
Total liabilities | — | 839,302 | 7,678 | 100,422 | (229,665 | ) | 717,737 | |||||||||||||||||
Equity | ||||||||||||||||||||||||
William Lyon Homes stockholders’ equity | 449,781 | 221,150 | 228,631 | (35,403 | ) | (414,378 | ) | 449,781 | ||||||||||||||||
Noncontrolling interests | — | — | 22,378 | — | 22,378 | |||||||||||||||||||
Total liabilities and equity | $ | 449,781 | $ | 1,060,452 | $ | 236,309 | $ | 87,397 | $ | (644,043 | ) | $ | 1,189,896 | |||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Unconsolidated | ||||||||||||||||||||||||
Delaware | California | Guarantor | Non-Guarantor | Eliminating | Consolidated | |||||||||||||||||||
Lyon | Lyon | Subsidiaries | Subsidiaries | Entries | Company | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 166,516 | $ | 28 | $ | 5,128 | $ | — | $ | 171,672 | ||||||||||||
Restricted cash | — | 854 | — | — | — | 854 | ||||||||||||||||||
Receivables | — | 15,742 | 72 | 5,025 | — | 20,839 | ||||||||||||||||||
Real estate inventories | ||||||||||||||||||||||||
Owned | — | 608,965 | 3,761 | 59,064 | — | 671,790 | ||||||||||||||||||
Not owned | — | 12,960 | — | — | — | 12,960 | ||||||||||||||||||
Deferred loan costs, net | — | 9,575 | — | — | — | 9,575 | ||||||||||||||||||
Goodwill | — | 14,209 | — | — | — | 14,209 | ||||||||||||||||||
Intangibles, net | — | 2,766 | — | — | — | 2,766 | ||||||||||||||||||
Deferred income taxes, net | — | 95,580 | — | — | — | 95,580 | ||||||||||||||||||
Other assets, net | — | 9,100 | 723 | 343 | — | 10,166 | ||||||||||||||||||
Investments in subsidiaries | 428,179 | 9,975 | — | — | (438,154 | ) | — | |||||||||||||||||
Intercompany receivables | — | — | 225,056 | (15 | ) | (225,041 | ) | — | ||||||||||||||||
Total assets | $ | 428,179 | $ | 946,242 | $ | 229,640 | $ | 69,545 | $ | (663,195 | ) | $ | 1,010,411 | |||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||
Accounts payable | $ | — | $ | 12,489 | $ | 1,959 | $ | 2,651 | $ | — | $ | 17,099 | ||||||||||||
Accrued expenses | — | 59,376 | 744 | 83 | — | 60,203 | ||||||||||||||||||
Liabilities from inventories not owned | — | 12,960 | — | — | — | 12,960 | ||||||||||||||||||
Notes payable | — | 12,281 | 1,762 | 24,017 | — | 38,060 | ||||||||||||||||||
8 1/2% Senior Notes | — | 431,295 | — | — | — | 431,295 | ||||||||||||||||||
Intercompany payables | — | 214,837 | — | 10,204 | (225,041 | ) | — | |||||||||||||||||
Total liabilities | — | 743,238 | 4,465 | 36,955 | (225,041 | ) | 559,617 | |||||||||||||||||
Equity | ||||||||||||||||||||||||
William Lyon Homes stockholders’ equity | 428,179 | 203,004 | 225,175 | 9,975 | (438,154 | ) | 428,179 | |||||||||||||||||
Noncontrolling interests | — | — | — | 22,615 | — | 22,615 | ||||||||||||||||||
Total liabilities and equity | $ | 428,179 | $ | 946,242 | $ | 229,640 | $ | 69,545 | $ | (663,195 | ) | $ | 1,010,411 | |||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Unconsolidated | ||||||||||||||||||||||||
Delaware | California | Guarantor | Non-Guarantor | Eliminating | Consolidated | |||||||||||||||||||
Lyon | Lyon | Subsidiaries | Subsidiaries | Entries | Company | |||||||||||||||||||
Operating revenue | ||||||||||||||||||||||||
Sales | $ | — | $ | 136,300 | $ | 23,889 | $ | 9,679 | $ | — | $ | 169,868 | ||||||||||||
Construction services | — | 9,941 | — | — | — | 9,941 | ||||||||||||||||||
Management fees | — | 685 | — | — | (685 | ) | — | |||||||||||||||||
— | 146,926 | 23,889 | 9,679 | (685 | ) | 179,809 | ||||||||||||||||||
Operating costs | ||||||||||||||||||||||||
Cost of sales | — | (103,732 | ) | (19,466 | ) | (7,113 | ) | 685 | (129,626 | ) | ||||||||||||||
Construction services | — | (8,405 | ) | — | — | — | (8,405 | ) | ||||||||||||||||
Sales and marketing | — | (6,743 | ) | (1,620 | ) | (561 | ) | — | (8,924 | ) | ||||||||||||||
General and administrative | — | (10,220 | ) | (797 | ) | (2 | ) | — | (11,019 | ) | ||||||||||||||
Amortization of intangible assets | — | (502 | ) | — | — | — | (502 | ) | ||||||||||||||||
Other | — | (929 | ) | 19 | 181 | — | (729 | ) | ||||||||||||||||
— | (130,531 | ) | (21,864 | ) | (7,495 | ) | 685 | (159,205 | ) | |||||||||||||||
Income from subsidiaries | 12,285 | 1,949 | — | — | (14,234 | ) | — | |||||||||||||||||
Operating income | 12,285 | 18,344 | 2,025 | 2,184 | (14,234 | ) | 20,604 | |||||||||||||||||
Other income (expense), net | — | 606 | (8 | ) | (244 | ) | — | 354 | ||||||||||||||||
Income before provision for income taxes | 12,285 | 18,950 | 2,017 | 1,940 | (14,234 | ) | 20,958 | |||||||||||||||||
Provision for income taxes | — | (6,206 | ) | — | — | — | (6,206 | ) | ||||||||||||||||
Net income | 12,285 | 12,744 | 2,017 | 1,940 | (14,234 | ) | 14,752 | |||||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (2,467 | ) | — | (2,467 | ) | ||||||||||||||||
Net income (loss) attributable to William Lyon Homes | 12,285 | 12,744 | 2,017 | (527 | ) | (14,234 | ) | 12,285 | ||||||||||||||||
Net income (loss) available to common stockholders | $ | 12,285 | $ | 12,744 | $ | 2,017 | $ | (527 | ) | $ | (14,234 | ) | $ | 12,285 | ||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Unconsolidated | ||||||||||||||||||||||||
Delaware | California | Guarantor | Non-Guarantor | Eliminating | Consolidated | |||||||||||||||||||
Lyon | Lyon | Subsidiaries | Subsidiaries | Entries | Company | |||||||||||||||||||
Operating revenue | ||||||||||||||||||||||||
Sales | $ | — | $ | 62,880 | $ | 51,158 | $ | 9,858 | $ | — | $ | 123,896 | ||||||||||||
Construction services | — | 7,542 | — | — | — | 7,542 | ||||||||||||||||||
Management fees | — | 271 | — | — | (271 | ) | — | |||||||||||||||||
— | 70,693 | 51,158 | 9,858 | (271 | ) | 131,438 | ||||||||||||||||||
Operating costs | ||||||||||||||||||||||||
Cost of sales | — | (50,161 | ) | (42,719 | ) | (6,876 | ) | 271 | (99,485 | ) | ||||||||||||||
Construction services | — | (5,299 | ) | — | — | — | (5,299 | ) | ||||||||||||||||
Sales and marketing | — | (3,373 | ) | (2,480 | ) | (282 | ) | — | (6,135 | ) | ||||||||||||||
General and administrative | — | (8,867 | ) | (412 | ) | (13 | ) | — | (9,292 | ) | ||||||||||||||
Amortization of intangible assets | — | (360 | ) | — | — | (360 | ) | |||||||||||||||||
Other | — | (566 | ) | — | — | — | (566 | ) | ||||||||||||||||
— | (68,626 | ) | (45,611 | ) | (7,171 | ) | 271 | (121,137 | ) | |||||||||||||||
Income from subsidiaries | 7,394 | 5,453 | — | — | (12,847 | ) | — | |||||||||||||||||
Operating income | 7,394 | 7,520 | 5,547 | 2,687 | (12,847 | ) | 10,301 | |||||||||||||||||
Interest expense, net of amounts capitalized | — | (1,220 | ) | (47 | ) | — | — | (1,267 | ) | |||||||||||||||
Other income (expense), net | — | 391 | (10 | ) | (325 | ) | — | 56 | ||||||||||||||||
Income before reorganization items and provision for income taxes | 7,394 | 6,691 | 5,490 | 2,362 | (12,847 | ) | 9,090 | |||||||||||||||||
Provision for income taxes | — | (10 | ) | — | — | — | (10 | ) | ||||||||||||||||
Net (loss) income | 7,394 | 6,681 | 5,490 | 2,362 | (12,847 | ) | 9,080 | |||||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | (1,686 | ) | — | (1,686 | ) | |||||||||||||||||
Net (loss) income attributable to William Lyon Homes | 7,394 | 6,681 | 5,490 | 676 | (12,847 | ) | 7,394 | |||||||||||||||||
Preferred stock dividends | (544 | ) | — | — | — | — | (544 | ) | ||||||||||||||||
Net (loss) income available to common stockholders | $ | 6,850 | $ | 6,681 | $ | 5,490 | $ | 676 | $ | (12,847 | ) | $ | 6,850 | |||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Unconsolidated | ||||||||||||||||||||||||
Delaware | California | Guarantor | Non-Guarantor | Eliminating | Consolidated | |||||||||||||||||||
Lyon | Lyon | Subsidiaries | Subsidiaries | Entries | Company | |||||||||||||||||||
Operating revenue | ||||||||||||||||||||||||
Sales | $ | — | $ | 242,899 | $ | 42,437 | $ | 24,831 | $ | — | $ | 310,167 | ||||||||||||
Construction services | — | 19,593 | — | — | — | 19,593 | ||||||||||||||||||
Management fees | — | 1,140 | — | — | (1,140 | ) | — | |||||||||||||||||
— | 263,632 | 42,437 | 24,831 | (1,140 | ) | 329,760 | ||||||||||||||||||
Operating costs | ||||||||||||||||||||||||
Cost of sales | — | (184,161 | ) | (34,523 | ) | (18,294 | ) | 1,140 | (235,838 | ) | ||||||||||||||
Construction services | — | (16,473 | ) | — | — | — | (16,473 | ) | ||||||||||||||||
Sales and marketing | — | (11,432 | ) | (2,815 | ) | (1,235 | ) | — | (15,482 | ) | ||||||||||||||
General and administrative | — | (21,498 | ) | (1,655 | ) | (2 | ) | — | (23,155 | ) | ||||||||||||||
Amortization of intangible assets | — | (1,120 | ) | — | — | (1,120 | ) | |||||||||||||||||
Other | — | (1,899 | ) | 18 | 590 | — | (1,291 | ) | ||||||||||||||||
— | (236,583 | ) | (38,975 | ) | (18,941 | ) | 1,140 | (293,359 | ) | |||||||||||||||
Income from subsidiaries | 20,982 | 4,964 | — | — | (25,946 | ) | — | |||||||||||||||||
Operating income | 20,982 | 32,013 | 3,462 | 5,890 | (25,946 | ) | 36,401 | |||||||||||||||||
Interest expense, net of amounts capitalized | — | — | — | — | — | — | ||||||||||||||||||
Other income (expense), net | — | 875 | (11 | ) | (391 | ) | — | 473 | ||||||||||||||||
Income before provision for income taxes | 20,982 | 32,888 | 3,451 | 5,499 | (25,946 | ) | 36,874 | |||||||||||||||||
Provision for income taxes | — | (10,780 | ) | — | — | — | (10,780 | ) | ||||||||||||||||
Net income | 20,982 | 22,108 | 3,451 | 5,499 | (25,946 | ) | 26,094 | |||||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | (5,112 | ) | — | (5,112 | ) | |||||||||||||||||
Net income attributable to William Lyon Homes | 20,982 | 22,108 | 3,451 | 387 | (25,946 | ) | 20,982 | |||||||||||||||||
Net income available to common stockholders | $ | 20,982 | $ | 22,108 | $ | 3,451 | $ | 387 | $ | (25,946 | ) | $ | 20,982 | |||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Unconsolidated | ||||||||||||||||||||||||
Delaware | California | Guarantor | Non-Guarantor | Eliminating | Consolidated | |||||||||||||||||||
Lyon | Lyon | Subsidiaries | Subsidiaries | Entries | Company | |||||||||||||||||||
Operating revenue | ||||||||||||||||||||||||
Sales | $ | — | $ | 97,805 | $ | 92,667 | $ | 9,858 | $ | — | $ | 200,330 | ||||||||||||
Construction services | — | 11,961 | — | — | — | 11,961 | ||||||||||||||||||
Management fees | — | 271 | — | — | (271 | ) | — | |||||||||||||||||
— | 110,037 | 92,667 | 9,858 | (271 | ) | 212,291 | ||||||||||||||||||
Operating costs | — | |||||||||||||||||||||||
Cost of sales | — | (78,355 | ) | (77,933 | ) | (6,796 | ) | 271 | (162,813 | ) | ||||||||||||||
Construction services | — | (9,337 | ) | — | — | — | (9,337 | ) | ||||||||||||||||
Sales and marketing | — | (5,732 | ) | (4,561 | ) | (510 | ) | — | (10,803 | ) | ||||||||||||||
General and administrative | — | (16,699 | ) | (1,098 | ) | (19 | ) | — | (17,816 | ) | ||||||||||||||
Amortization of intangible assets | — | (982 | ) | — | — | (982 | ) | |||||||||||||||||
Other | — | (1,050 | ) | (1 | ) | — | — | (1,051 | ) | |||||||||||||||
— | (112,155 | ) | (83,593 | ) | (7,325 | ) | 271 | (202,802 | ) | |||||||||||||||
Income from subsidiaries | 4,846 | 7,667 | — | — | (12,513 | ) | — | |||||||||||||||||
Operating income | 4,846 | 5,549 | 9,074 | 2,533 | (12,513 | ) | 9,489 | |||||||||||||||||
Interest expense, net of amounts capitalized | — | (2,425 | ) | (126 | ) | — | — | (2,551 | ) | |||||||||||||||
Other income (expense), net | — | 764 | (13 | ) | (608 | ) | — | 143 | ||||||||||||||||
Income before reorganization items and provision for income taxes | 4,846 | 3,888 | 8,935 | 1,925 | (12,513 | ) | 7,081 | |||||||||||||||||
Reorganization items, net | — | (464 | ) | — | — | — | (464 | ) | ||||||||||||||||
Income before provision for income taxes | 4,846 | 3,424 | 8,935 | 1,925 | (12,513 | ) | 6,617 | |||||||||||||||||
Provision for income taxes | — | (10 | ) | — | — | — | (10 | ) | ||||||||||||||||
Net income | 4,846 | 3,414 | 8,935 | 1,925 | (12,513 | ) | 6,607 | |||||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (1,761 | ) | — | (1,761 | ) | ||||||||||||||||
Net income attributable to William Lyon Homes | 4,846 | 3,414 | 8,935 | 164 | (12,513 | ) | 4,846 | |||||||||||||||||
Preferred stock dividends | (1,528 | ) | — | — | — | — | (1,528 | ) | ||||||||||||||||
Net income available to common stockholders | $ | 3,318 | $ | 3,414 | $ | 8,935 | $ | 164 | $ | (12,513 | ) | $ | 3,318 | |||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Unconsolidated | ||||||||||||||||||||||||
Delaware | California | Guarantor | Non-Guarantor | Eliminating | Consolidated | |||||||||||||||||||
Lyon | Lyon | Subsidiaries | Subsidiaries | Entries | Company | |||||||||||||||||||
Operating activities | ||||||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (619 | ) | $ | (199,766 | ) | $ | 5,062 | $ | (7,837 | ) | $ | 619 | $ | (202,541 | ) | ||||||||
Investing activities | ||||||||||||||||||||||||
Purchases of property and equipment | — | (1,609 | ) | (31 | ) | — | — | (1,640 | ) | |||||||||||||||
Investments in subsidiaries | — | 50,342 | — | — | (50,342 | ) | — | |||||||||||||||||
Net cash provided by (used in) investing activities | — | 48,733 | (31 | ) | — | (50,342 | ) | (1,640 | ) | |||||||||||||||
Financing activities | ||||||||||||||||||||||||
Proceeds from borrowings on notes payable | — | 394 | (394 | ) | 34,153 | — | 34,153 | |||||||||||||||||
Principal payments on notes payable | — | (10,428 | ) | — | (28,292 | ) | — | (38,720 | ) | |||||||||||||||
Proceeds from issuance of 5 3/4% notes | — | 150,000 | — | — | — | 150,000 | ||||||||||||||||||
Payment of deferred loan costs | — | (3,560 | ) | — | — | — | (3,560 | ) | ||||||||||||||||
Proceeds from exercise of stock options | — | 285 | — | — | — | 285 | ||||||||||||||||||
Shares remitted to Company for employee tax witholding | — | (1,414 | ) | — | — | — | (1,414 | ) | ||||||||||||||||
Offering costs related to secondary sale of common stock | — | (105 | ) | — | — | — | (105 | ) | ||||||||||||||||
Noncontrolling interests contributions | — | — | — | 8,742 | — | 8,742 | ||||||||||||||||||
Noncontrolling interests distributions | — | — | — | (14,091 | ) | — | (14,091 | ) | ||||||||||||||||
Advances to affiliates | — | — | 5 | (45,765 | ) | 45,760 | — | |||||||||||||||||
Intercompany receivables/payables | 619 | (55,011 | ) | (4,609 | ) | 55,038 | 3,963 | — | ||||||||||||||||
Net cash provided by (used in)financing activities | 619 | 80,161 | (4,998 | ) | 9,785 | 49,723 | 135,290 | |||||||||||||||||
Net (decrease) increase in cash and cash equivalents | — | (70,872 | ) | 33 | 1,948 | — | (68,891 | ) | ||||||||||||||||
Cash and cash equivalents at beginning of period | — | 166,516 | 28 | 5,128 | — | 171,672 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 95,644 | $ | 61 | $ | 7,076 | $ | — | $ | 102,781 | ||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Unconsolidated | ||||||||||||||||||||||||
Delaware | California | Guarantor | Non-Guarantor | Eliminating | Consolidated | |||||||||||||||||||
Lyon | Lyon | Subsidiaries | Subsidiaries | Entries | Company | |||||||||||||||||||
Operating activities | ||||||||||||||||||||||||
Net cash used in operating activities | $ | — | $ | (28,146 | ) | $ | 6,674 | $ | (45,223 | ) | $ | — | $ | (66,695 | ) | |||||||||
Investing activities | ||||||||||||||||||||||||
Purchases of property and equipment | — | (1,522 | ) | (22 | ) | 8 | — | (1,536 | ) | |||||||||||||||
Investments in subsidiaries | — | (252 | ) | — | — | 252 | — | |||||||||||||||||
Net cash (used in) provided by investing activities | — | (1,774 | ) | (22 | ) | 8 | 252 | (1,536 | ) | |||||||||||||||
Financing activities | ||||||||||||||||||||||||
Proceeds on borrowings on notes payable | — | 16,764 | 1,762 | 22,734 | — | 41,260 | ||||||||||||||||||
Principal payments on notes payable | — | (12,976 | ) | — | (6,139 | ) | — | (19,115 | ) | |||||||||||||||
Payment of deferred loan costs | — | (370 | ) | — | — | — | (370 | ) | ||||||||||||||||
Proceeds from issuance of common stock | — | 179,438 | — | — | — | 179,438 | ||||||||||||||||||
Offering costs related to issuance of common stock | — | (15,517 | ) | — | — | — | (15,517 | ) | ||||||||||||||||
Payment of preferred stock dividends | — | (2,550 | ) | — | — | — | (2,550 | ) | ||||||||||||||||
Noncontrolling interests contributions | — | — | — | 34,848 | — | 34,848 | ||||||||||||||||||
Noncontrolling interests distributions | — | — | — | (14,421 | ) | — | (14,421 | ) | ||||||||||||||||
Intercompany receivables/payables | — | (163 | ) | 12,258 | 951 | (13,046 | ) | — | ||||||||||||||||
Advances to affiliates | — | — | (20,550 | ) | 7,756 | 12,794 | — | |||||||||||||||||
Net cash provided by (used in) financing activities | — | 164,626 | (6,530 | ) | 45,729 | (252 | ) | 203,573 | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents | — | 134,706 | 122 | 514 | — | 135,342 | ||||||||||||||||||
Cash and cash equivalents at beginning of period | — | 69,376 | 65 | 1,634 | — | 71,075 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 204,082 | $ | 187 | $ | 2,148 | $ | — | $ | 206,417 | ||||||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments (Notes) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
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 June 30, 2014 and December 31, 2013, the Company used the following assumptions to estimate the fair value of each type of financial instrument for which it is practicable to estimate: | ||||||||||||||||
• | 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 at quarter end is expected to be repaid within one year. | |||||||||||||||
• | 5 3/4% Senior Notes due April 15, 2019 —The 5 3/4% Senior Notes are traded over the counter and their fair values were based upon quotes from industry sources. | |||||||||||||||
• | 8 1/2% Senior Notes due November 15, 2020 —The 8 1/2% Senior Notes are traded over the counter and their fair values were based upon quotes from industry sources. | |||||||||||||||
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): | ||||||||||||||||
Successor | ||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Amount | Value | Amount | Value | |||||||||||||
Financial liabilities: | ||||||||||||||||
Notes payable | $ | 35,906 | $ | 35,906 | $ | 38,060 | $ | 38,060 | ||||||||
5 3/4% Senior Notes due 2019 | $ | 150,000 | $ | 153,750 | $ | — | $ | — | ||||||||
8 1/2% Senior Notes due 2020 | $ | 430,732 | $ | 475,490 | $ | 431,295 | $ | 466,877 | ||||||||
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 used Level 3 to measure the fair value of its Notes Payable, and Level 2 to measure the fair value of its 5 3/4% Notes and 81 /2 % Notes. The 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: | ||||||||||||||||
• | 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. | |||||||||||||||
The following table represents a reconciliation of the beginning and ending balance for the Company’s Level 3 fair value measurements: | ||||||||||||||||
Notes | ||||||||||||||||
Payable | ||||||||||||||||
(in thousands) | ||||||||||||||||
Fair value at December 31, 2013 | $ | 38,060 | ||||||||||||||
Repayments of principal (1) | (38,720 | ) | ||||||||||||||
Borrowings of principal (2) | 36,566 | |||||||||||||||
Increase in value during the period | — | |||||||||||||||
Fair value at June 30, 2014 | $ | 35,906 | ||||||||||||||
-1 | Represents the actual amount of principal repaid | |||||||||||||||
-2 | Represents the actual amount of principal borrowed |
Related_Party_Transactions_Not
Related Party Transactions (Notes) | 6 Months Ended |
Jun. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Related Party Transactions | |
On September 3, 2009, Presley CMR, Inc., a California corporation (“Presley CMR”) and a 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 “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. As part of the Company’s fresh start accounting, the note was adjusted to its fair value of $5.2 million. The discount on the fresh start adjustment is amortized over the remaining life of the note. The note requires semiannual interest payments to California Lyon of approximately $0.1 million. The note is due in September 2016. | |
For the six months ended June 30, 2013, the Company incurred charges of $0.2 million related to rent on its corporate office, from a trust of which William H. Lyon is the sole beneficiary. The lease expired in March 2013 and the Company relocated its corporate office upon expiration of the lease. The Company has entered into a lease for the new location with an unrelated third party. |
Income_Taxes_Notes
Income Taxes (Notes) | 6 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
Since inception, the Company has operated solely within the United States. | |
The Company’s effective income tax rate was 29.6% and 29.2% , and 0.1% and 0.2% for the three and six months ended June 30, 2014 and 2013, respectively. The significant drivers of the effective tax rate are allocation of income to noncontrolling interests, related party loss recapture, domestic production activities deduction, and release of valuation allowance. | |
Management assesses its deferred tax assets quarterly 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 June 30, 2014 the Company’s valuation allowance was $3.2 million due to projected excess realized built-in-losses and state net operating losses which may expire unused. In the fourth quarter of the year ended December 31, 2013, the Company recognized a $95.6 million income tax benefit that resulted from the reversal of all but $4.0 million of our deferred tax asset valuation allowance. | |
At June 30, 2014, the Company had no remaining federal net operating loss carryforwards and $80.6 million remaining state net operating loss carryforwards. State net operating loss carryforwards begin to expire in 2014. In addition, as of June 30, 2014, the Company had unused federal and state built-in losses of $69.5 million and $37.0 million, respectively. The 5 year testing period for built-in losses expires in 2017 and the unused built-in loss carryforwards begin to expire in 2033. The Company had AMT credit carryovers of $1.4 million at June 30, 2014, which have an indefinite life. | |
Effective January 1, 2007, the Company adopted the provisions of FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes-an interpretation of FASB Statement No. 109” (“FIN 48”) which is now codified as FASB ASC Topic 740, Income Taxes (“ASC 740”). 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. The Company has no unrecognized tax benefits. | |
The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. The Company is subject to U.S. federal income tax examination for calendar tax years ended 2010 through 2013 and forward. The Company is subject to various state income tax examinations for calendar tax years ended 2009 through 2013 and forward. The Company does not have any tax examinations currently in progress. |
Income_Per_Common_Share_Notes
Income Per Common Share (Notes) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Income Per Common Share | ' | |||||||||||||||
Income Per Common Share | ||||||||||||||||
Basic and diluted income per common share for the three and six months ended June 30, 2014 and 2013 were calculated as follows (in thousands, except number of shares and per share amounts): | ||||||||||||||||
Three | Three | Six | Six | |||||||||||||
Months | Months | Months | Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Basic weighted average number of common shares outstanding | 31,224,252 | 22,103,841 | 31,159,422 | 18,297,264 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Stock options, unvested common shares, and warrants | 1,525,856 | 1,205,578 | 1,510,138 | 862,648 | ||||||||||||
Diluted average shares outstanding | 32,750,108 | 23,309,419 | 32,669,560 | 19,159,912 | ||||||||||||
Net income available to common stockholders | $ | 12,285 | $ | 6,850 | $ | 20,982 | $ | 3,318 | ||||||||
Basic income per common share | $ | 0.39 | $ | 0.31 | $ | 0.67 | $ | 0.18 | ||||||||
Dilutive income per common share | $ | 0.38 | $ | 0.29 | $ | 0.64 | $ | 0.17 | ||||||||
Stock_Based_Compensation_Notes
Stock Based Compensation (Notes) | 6 Months Ended |
Jun. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Stock Based Compensation | ' |
Note 10—Stock Based Compensation | |
We account for share-based awards in accordance with ASC Topic 718, Compensation-Stock Compensation, which requires the fair value of stock-based compensation awards to be amortized as an expense over the vesting period. Stock-based compensation awards are valued at the fair value on the date of grant. Compensation expense for awards with performance based conditions is recognized over the vesting period once achievement of the performance condition is deemed probable. | |
During the three and six months ended June 30, 2014, the Company granted 925 and 48,562 shares of restricted stock, respectively, and zero and 287,739 shares of performance based restricted stock. | |
Performance-Based Restricted Stock Awards | |
With respect to all but one of the performance based restricted stock awards granted during the three and six months ended June 30, 2014, the actual number of such shares of restricted stock that will be earned (the “Earned Shares”) is subject to the Company’s achievement of a pre-established performance target as of the end of the 2014 fiscal year. The remaining grant does not contain a pre-established performance target, but the Earned Shares for such award will be 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. For each of the aforementioned awards, one-third of the Earned Shares will vest on each of the first, second and third anniversaries of the grant date, subject to each grantee’s continued service through each vesting date. Based on the assessment as of June 30, 2014, management determined that the currently available data was not sufficient to support the performance targets are probable of being achieved, and as such no compensation expense has been recognized for these awards to date. | |
Additional Restricted Stock Awards | |
With respect to the restricted stock awards granted to certain other employees during the three and six months ended June 30, 2014, representing 925 and 26,134 shares of restricted stock, respectively, 50% of the shares of restricted stock underlying such awards will vest on each of the first and second anniversaries of the grant date, 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 Parent during the three and six months ended June 30, 2014, representing zero and 22,428 shares of restricted stock, the awards vest in equal quarterly installments on each of June 1, 2014, September 1, 2014, December 1, 2014 and March 1, 2015, subject to each grantee’s continued service on the board through each vesting date. | |
Stock based compensation expense during the three and six months ended June 30, 2014 and 2013 was $0.9 million and $1.9 million, and $1.0 million and $1.3 million, respectively. |
Commitments_and_Contingencies_
Commitments and Contingencies (Notes) | 6 Months Ended | |||
Jun. 30, 2014 | ||||
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 condensed 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 June 30, 2014, 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 condensed consolidated financial statements. 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 $0.7 million and $1.4 million, and $0.4 million and $0.9 million in the three and six months ended June 30, 2014 and 2013, 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 June 30, 2014 (in thousands). | ||||
Year Ending December 31 | ||||
2014 | $ | 1,423 | ||
2015 | 1,564 | |||
2016 | 1,004 | |||
2017 | 908 | |||
2018 | 888 | |||
Thereafter | 2,831 | |||
Total | $ | 8,618 | ||
As of June 30, 2014 and December 31, 2013, the Company had $0.5 million and $0.9 million, respectively, in deposits as collateral for outstanding surety bonds to guarantee the Company’s financial obligations under certain contractual arrangements in the normal course of business. The standby letters of credit were secured by cash as reflected as restricted cash on the accompanying consolidated balance sheet. | ||||
The Company also had outstanding performance and surety bonds of $91.5 million at June 30, 2014, 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 June 30, 2014, the Company had $130.4 million of project commitments relating to the construction of projects. | ||||
See Note 5 for additional information relating to the Company’s guarantee arrangements. | ||||
In addition to the land bank agreement discussed below, the Company has entered into various purchase option agreements with third parties to acquire land. As of June 30, 2014, the Company has made non-refundable deposits of $41.0 million. The Company is under no obligation to purchase the land, but would forfeit remaining deposits if the land were not purchased. The total remaining purchase price under the option agreements is $317.7 million as of June 30, 2014. | ||||
Land Banking Arrangements | ||||
The Company enters into purchase agreements with various land sellers. As a method of acquiring land in staged takedowns, thereby minimizing the use of funds from the Company’s available cash or other corporate financing sources and limiting the Company’s risk, the Company transfers the Company’s right in such purchase agreements to entities owned by third parties (“land banking arrangements”). These entities use equity contributions and/or incur debt to finance the acquisition and development of the land. The entities grant the Company an option to acquire lots in staged takedowns. In consideration for this option, the Company makes a non-refundable deposit of 15% to 25% of the total purchase price. The Company is under no obligation to purchase the balance of the lots, but would forfeit any existing deposits and could be subject to penalties if the lots were not purchased. The Company does not have legal title to these entities or their assets and has not guaranteed their liabilities. These land banking arrangements help the Company manage the financial and market risk associated with land holdings. | ||||
The Company participated in one land banking arrangement, which was not a VIE in accordance with ASC 810, but which is consolidated in accordance with FASB ASC Topic 470, Debt (“ASC 470”). The remaining lots under the above land banking agreement were purchased by the Company during April 2014. No further obligations remain under the agreement. Under the provisions of ASC 470, the Company has determined it is economically compelled, based on certain factors, to purchase the land in the land banking arrangement. The Company has recorded the remaining purchase price of the land of $13.0 million, as of December 31, 2013, which is included in real estate inventories not owned and liabilities from inventories not owned in the accompanying consolidated balance sheet, and represented the remaining net cash to be paid on the remaining land takedowns. | ||||
Summary information with respect to the Company’s land banking arrangements is as follows as of the periods presented (dollars in thousands): | ||||
31-Dec-13 | ||||
Total number of land banking projects | 1 | |||
Total number of lots | 610 | |||
Total purchase price | $ | 161,465 | ||
Balance of lots still under option and not purchased: | ||||
Number of lots | 65 | |||
Purchase price | $ | 12,960 | ||
Forfeited deposits if lots are not purchased | $ | 9,210 | ||
Subsequent_Events_Notes
Subsequent Events (Notes) | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
Acquisition of Polygon Northwest Homes | |
On August 12, 2014, 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 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 and which conducted business as Polygon Northwest Company (“Polygon”), for an aggregate cash purchase price of $520.0 million, plus an additional approximately $28.0 million at closing pursuant to working capital adjustments reflecting, among other adjustments, additional homebuilding inventory for lots owned and controlled and a reduction in assumed liabilities including accounts payable, in each case as compared to estimates made at the time of execution of the Purchase Agreement, and which cash purchase price remains subject to final working capital adjustment in accordance with the terms of the Purchase Agreement (the “Acquisition”). The acquired entities now operate as two new divisions 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. Through the Acquisition, the Company added over 4,600 owned or controlled lots to its land portfolio in two attractive Western U.S. markets. As of the acquisition date, Polygon’s homebuilding operations had 12 active selling communities in Washington and Oregon. | |
The Company financed the Acquisition with a combination of proceeds from its issuance of $300 million in aggregate principal amount of 7.00% senior notes due 2022, cash on hand including approximately $100 million of aggregate proceeds from several separate land banking arrangements with respect to land parcels located in California, Washington and Oregon, each of which is entitled but undeveloped, and including parcels acquired in the Acquisition, and $120 million of borrowings under a new one-year senior unsecured loan facility. | |
7.00% Senior Notes due 2022 | |
On August 11, 2014, WLH PNW Finance Corp., a wholly owned subsidiary of California Lyon (“Escrow Issuer”), completed its private placement with registration rights of 7.00% Senior Notes due 2022 (the “2022 Notes”), in an aggregate principal amount of $300 million. The 2022 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 (the “Escrow Merger”), and California Lyon assumed the obligations of the Escrow Issuer under the 2022 Notes and the related indenture by operation of law. Following the Escrow Merger, California Lyon is the obligor under the 2022 Notes, and the 2022 Notes are guaranteed on a senior unsecured basis by the Company and certain of its existing and future wholly owned subsidiaries, including Polygon WLH and the entities acquired through the Acquisition. The net proceeds from the issuance of the 2022 Notes was used to fund a portion of the purchase price for the Acquisition. | |
Senior Unsecured Facility | |
On August 12, 2014, the Company entered into a senior unsecured loan facility (the “Senior Unsecured Loan Facility”), pursuant to which the Company borrowed $120 million in order to pay a portion of the purchase price for the Acquisition (the “Senior Unsecured Loan”). The Senior Unsecured Loan will bear interest at an annual rate equal to a Eurodollar rate (subject to a minimum “floor” of 1.00%), plus an initial margin, which margin will increase by 0.50% every three months after August 12, 2014 that the Senior Unsecured Loan remains outstanding, subject to an interest rate cap. The Senior Unsecured Facility will initially mature on the one-year anniversary of August 12, 2014, and may be prepaid in whole or in part prior to maturity without penalty. Any Senior Unsecured Loan that has not been previously repaid in full on or prior to the initial maturity date will be automatically converted into a senior term loan facility, which could be exchanged at the option of the lenders thereunder in whole or in part for senior exchange notes. The obligations of California Lyon under the Senior Unsecured Facility are guaranteed by the same entities that are guarantors under the existing Revolving Credit Facility, and the Senior Unsecured Facility ranks pari passu with California Lyon’s existing and future unsecured indebtedness. | |
Amendment to Revolving Credit Facility | |
On July 3, 2014, California Lyon and the lenders party thereto entered into an amendment to our $100.0 million revolving credit facility (the “Revolving Credit Facility”), which amendment, among other changes, incorporated a minimum borrowing base availability of $50.0 million and increased the maximum leverage ratio from 60% to 75% for the first four quarters following the Acquisition. | |
No other events have occurred subsequent to June 30, 2014, that has required recognition or disclosure in the Company’s financial statements. |
Basis_of_Presentation_and_Sign1
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Operations | ' |
Operations | |
William Lyon Homes, a Delaware corporation (“Parent” and together with its subsidiaries, the “Company”), is primarily engaged in designing, constructing, marketing and selling single-family detached and attached homes in California, Arizona, Nevada and Colorado (under the Village Homes brand). | |
Initial Public Offering | ' |
Initial Public Offering | |
On May 21, 2013, Parent completed its initial public offering of 10,005,000 shares of Class A Common Stock, which consisted of 7,177,500 shares sold by Parent and 2,827,500 shares sold by the selling stockholder. The 10,005,000 shares in the offering were sold at a price to the public of $25.00 per share. Parent raised total net proceeds for the Company of approximately $163.7 million in the offering, after deducting the underwriting discount and offering expenses. The Company did not receive any proceeds from the sale of shares by the selling stockholder. | |
Parent's authorized capital stock consists of 190,000,000 shares, 150,000,000 of which are designated as Class A Common Stock with a par value of $0.01 per share, 30,000,000 of which are designated as Class B Common Stock with a par value of $0.01 per share and 10,000,000 of which are designated as preferred stock with a par value of $0.01 per share. | |
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 June 30, 2014 and December 31, 2013 and revenues and expenses for the three and six month periods ended June 30, 2014 and 2013. 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, and valuation of deferred tax assets. The current economic environment increases the uncertainty inherent in these estimates and assumptions. | |
The condensed 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 ("VIEs") in which the Company is considered the primary beneficiary (see Note 2). 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. | |
The condensed consolidated financial statements were prepared from our books and records without audit and include all adjustments (consisting of only normal recurring accruals) necessary to present a fair statement of results for the interim periods presented. Readers of this quarterly report should refer to our audited consolidated financial statements as of and for the year ended December 31, 2013, which are included in our 2013 Annual Report on Form 10-K, as certain disclosures that would substantially duplicate those contained in the audited financial statements have not been included in this report. | |
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 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. | |
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 approximately one to one and one quarter percent of the sales price of its homes against the possibility of future charges relating to its one-year limited warranty 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 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 and cash equivalents, restricted cash, receivables, and deposits. The Company typically places its cash and cash equivalents 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 11. | |
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 June 30, 2014 and December 31, 2013. The Company monitors the cash balances in its operating accounts and adjusts the cash balances between accounts based on operational needs; 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. | |
Deferred Loan Costs | ' |
Deferred Loan Costs | |
Deferred loan costs represent debt issuance costs and are primarily amortized to interest incurred using the straight line method which approximates the effective interest method. | |
Goodwill | ' |
Goodwill | |
In accordance with the provisions of ASC 350, Intangibles, Goodwill and Other, goodwill amounts are not amortized, but rather are analyzed for impairment at the reporting segment level. Goodwill is analyzed on an annual basis, or when indicators of impairment exist. We have determined that we have five reporting segments, as discussed in Note 3, and we perform an annual goodwill impairment analysis during the fourth quarter of each fiscal year. | |
Intangible Assets | ' |
Intangible Assets | |
Recorded intangible assets primarily relate to construction management contracts, homes in backlog, and joint venture management fee contracts recorded in conjunction with FASB Topic 852, Reorganizations ("ASC 852"). Such assets 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. | |
Income (loss) per common share | ' |
Income (loss) per common share | |
The Company computes income (loss) per common share in accordance with FASB ASC Topic 260, Earnings per Share, which requires income (loss) 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 (loss) between the holders of common stock and a company’s participating security holders. | |
Basic income (loss) 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 (loss) per common share, basic income (loss) per common share is further adjusted to include the effect of potential dilutive common shares. | |
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 is provided to reduce net deferred tax assets to an amount that is more likely than not to be realized. ASC 740 prescribes a recognition threshold and a measurement criteria 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. |
Basis_of_Presentation_and_Sign2
Basis of Presentation and Significant Accounting Policies (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||
Summary of Changes in Warranty Liability | ' | |||||||||||||||
Changes in the Company’s warranty liability for the six months ended June 30, 2014 and 2013, are as follows (in thousands): | ||||||||||||||||
Six | Six | |||||||||||||||
Months | Months | |||||||||||||||
Ended | Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Warranty liability, beginning of period | $ | 14,935 | $ | 14,317 | ||||||||||||
Warranty provision during period | 3,333 | 1,732 | ||||||||||||||
Warranty payments during period | (3,449 | ) | (2,569 | ) | ||||||||||||
Warranty charges related to pre-existing warranties during period | 360 | 226 | ||||||||||||||
Warranty charges related to construction services projects | 652 | 144 | ||||||||||||||
Warranty liability, end of period | $ | 15,831 | $ | 13,850 | ||||||||||||
Schedule of Interest Incurred under Company's Debt Obligations | ' | |||||||||||||||
Interest activity for the three months ended June 30, 2014 and 2013 are as follows (in thousands): | ||||||||||||||||
Three | Three | Six | Six | |||||||||||||
Months | Months | Months | Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Interest incurred | $ | 11,919 | $ | 7,849 | $ | 21,314 | $ | 15,000 | ||||||||
Less: Interest capitalized | 11,919 | 6,582 | 21,314 | 12,449 | ||||||||||||
Interest expense, net of amounts capitalized | $ | — | $ | 1,267 | $ | — | $ | 2,551 | ||||||||
Cash paid for interest | $ | 19,051 | $ | 14,350 | $ | 19,671 | $ | 14,350 | ||||||||
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Financial Information Relating to Operations | ' | |||||||||||||||
Segment financial information relating to the Company’s operations was as follows (in thousands): | ||||||||||||||||
Three | Three | Six | Six | |||||||||||||
Months | Months | Months | Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Operating revenue: | ||||||||||||||||
Southern California | $ | 115,942 | $ | 44,304 | $ | 203,321 | $ | 55,550 | ||||||||
Northern California | 19,875 | 14,988 | 46,751 | 28,325 | ||||||||||||
Arizona | 16,431 | 33,549 | 29,709 | 55,178 | ||||||||||||
Nevada | 18,392 | 17,740 | 35,541 | 32,501 | ||||||||||||
Colorado | 9,169 | 20,857 | 14,438 | 40,737 | ||||||||||||
Total operating revenue | $ | 179,809 | $ | 131,438 | $ | 329,760 | $ | 212,291 | ||||||||
Three | Three | Six | Six | |||||||||||||
Months | Months | Months | Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Income (loss) before provision for income taxes | ||||||||||||||||
Southern California | $ | 20,924 | $ | 6,100 | $ | 37,022 | $ | 5,426 | ||||||||
Northern California | 2,269 | 2,904 | 6,809 | 4,034 | ||||||||||||
Arizona | 2,321 | 3,723 | 3,672 | 4,808 | ||||||||||||
Nevada | 1,673 | 1,457 | 3,029 | 2,526 | ||||||||||||
Colorado | (453 | ) | 722 | (1,112 | ) | 1,445 | ||||||||||
Corporate | (5,776 | ) | (5,816 | ) | (12,546 | ) | (11,622 | ) | ||||||||
Income (loss) before provision for income taxes | $ | 20,958 | $ | 9,090 | $ | 36,874 | $ | 6,617 | ||||||||
Segment Schedule of Homebuilding Assets | ' | |||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||
Homebuilding assets: | ||||||||||||||||
Southern California | $ | 355,760 | $ | 275,975 | ||||||||||||
Northern California | 210,681 | 143,693 | ||||||||||||||
Arizona | 170,878 | 157,892 | ||||||||||||||
Nevada | 127,906 | 85,695 | ||||||||||||||
Colorado | 105,021 | 60,233 | ||||||||||||||
Corporate (1) | 219,650 | 286,923 | ||||||||||||||
Total homebuilding assets | $ | 1,189,896 | $ | 1,010,411 | ||||||||||||
-1 | Comprised primarily of cash and cash equivalents, deferred income taxes, receivables, deferred loan costs, and other assets. |
Real_Estate_Inventories_Tables
Real Estate Inventories (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Real Estate [Abstract] | ' | |||||||
Schedule Of Real Estate Inventories | ' | |||||||
Real estate inventories consist of the following (in thousands): | ||||||||
Successor | ||||||||
30-Jun-14 | 31-Dec-13 | |||||||
Real estate inventories owned: | ||||||||
Land deposits | $ | 41,252 | $ | 46,632 | ||||
Land and land under development | 637,477 | 458,437 | ||||||
Homes completed and under construction | 212,064 | 144,736 | ||||||
Model homes | 40,393 | 21,985 | ||||||
Total | $ | 931,186 | $ | 671,790 | ||||
Real estate inventories not owned: (1) | ||||||||
Other land options contracts — land banking arrangement | $ | — | $ | 12,960 | ||||
-1 | Represents the consolidation of a land banking arrangement, net of deposits. The final lots attributable to this amount were purchased in April 2014. |
Senior_Notes_and_Secured_Indeb1
Senior Notes and Secured Indebtedness (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||
Details of Notes Payable and Senior Notes | ' | |||||||||||||||||||||||
Successor | ||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||
Notes payable: | ||||||||||||||||||||||||
Construction notes payable | $ | 29,878 | $ | 24,198 | ||||||||||||||||||||
Seller financing | 6,028 | 13,862 | ||||||||||||||||||||||
Revolving lines of credit | — | — | ||||||||||||||||||||||
Total notes payable | $ | 35,906 | $ | 38,060 | ||||||||||||||||||||
Senior notes: | ||||||||||||||||||||||||
5 3/4% Senior Notes due April 15, 2019 | $ | 150,000 | $ | — | ||||||||||||||||||||
8 1/2% Senior Notes due November 15, 2020 | 430,732 | 431,295 | ||||||||||||||||||||||
Total senior notes | $ | 580,732 | $ | 431,295 | ||||||||||||||||||||
Total notes payable and senior notes | $ | 616,638 | $ | 469,355 | ||||||||||||||||||||
Maturities of Notes Payable and Senior Notes | ' | |||||||||||||||||||||||
Certain of the Company's consolidated joint ventures have entered into construction notes payable agreements. The issuance date, total availability under each facility outstanding, maturity date and interest rate are listed in the table below as of June 30, 2014: | ||||||||||||||||||||||||
Issuance Date | Facility Size | Outstanding | Maturity | Current Rate | ||||||||||||||||||||
March, 2014 | $ | 26 | $ | 3.7 | October, 2016 | 3.15 | % | -1 | ||||||||||||||||
December, 2013 | 18.6 | 10.9 | January, 2016 | 4.25 | % | -1 | ||||||||||||||||||
June, 2013 | 28 | 15.3 | June, 2016 | 4 | % | -2 | ||||||||||||||||||
$ | 72.6 | $ | 29.9 | |||||||||||||||||||||
(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 the prime rate +0.5%, with a rate floor of 4.0% . | ||||||||||||||||||||||||
As of June 30, 2014, the maturities of the Notes payable, 5 3/4% Senior Notes, and 8 1/2% Senior Notes are as follows (in thousands): | ||||||||||||||||||||||||
Year Ending December 31, | ||||||||||||||||||||||||
2014 | $ | 486 | ||||||||||||||||||||||
2015 | 5,542 | |||||||||||||||||||||||
2016 | 29,878 | |||||||||||||||||||||||
2017 | — | |||||||||||||||||||||||
2018 | — | |||||||||||||||||||||||
Thereafter | 575,000 | |||||||||||||||||||||||
$ | 610,906 | |||||||||||||||||||||||
Summary of Senior Notes Redemption Prices Percentage | ' | |||||||||||||||||||||||
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: | ||||||||||||||||||||||||
Year | Percentage | |||||||||||||||||||||||
15-Apr-16 | 104.313 | % | ||||||||||||||||||||||
15-Oct-16 | 102.875 | % | ||||||||||||||||||||||
15-Apr-17 | 101.438 | % | ||||||||||||||||||||||
April 15, 2018 and thereafter | 100 | % | ||||||||||||||||||||||
Condensed Consolidating Balance Sheet | ' | |||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Unconsolidated | ||||||||||||||||||||||||
Delaware | California | Guarantor | Non-Guarantor | Eliminating | Consolidated | |||||||||||||||||||
Lyon | Lyon | Subsidiaries | Subsidiaries | Entries | Company | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 95,644 | $ | 61 | $ | 7,076 | $ | — | $ | 102,781 | ||||||||||||
Restricted cash | — | 504 | — | — | — | 504 | ||||||||||||||||||
Receivables | — | 17,294 | 1,355 | 3,210 | — | 21,859 | ||||||||||||||||||
Real estate inventories | ||||||||||||||||||||||||
Owned | — | 851,061 | 3,336 | 76,789 | — | 931,186 | ||||||||||||||||||
Deferred loan costs, net | — | 12,075 | — | — | — | 12,075 | ||||||||||||||||||
Goodwill | — | 14,209 | — | — | — | 14,209 | ||||||||||||||||||
Intangibles, net | — | 1,651 | — | — | — | 1,651 | ||||||||||||||||||
Deferred income taxes, net | — | 91,853 | — | — | — | 91,853 | ||||||||||||||||||
Other assets, net | — | 11,564 | 1,892 | 322 | — | 13,778 | ||||||||||||||||||
Investments in subsidiaries | 449,781 | (35,403 | ) | — | — | (414,378 | ) | — | ||||||||||||||||
Intercompany receivables | — | — | 229,665 | — | (229,665 | ) | — | |||||||||||||||||
Total assets | $ | 449,781 | $ | 1,060,452 | $ | 236,309 | $ | 87,397 | $ | (644,043 | ) | $ | 1,189,896 | |||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||
Accounts payable | $ | — | $ | 20,571 | $ | 5,282 | $ | 5,190 | $ | — | $ | 31,043 | ||||||||||||
Accrued expenses | — | 68,931 | 1,028 | 97 | — | 70,056 | ||||||||||||||||||
Notes payable | — | 4,660 | 1,368 | 29,878 | — | 35,906 | ||||||||||||||||||
5 3/4% Senior Notes | — | 150,000 | — | — | — | 150,000 | ||||||||||||||||||
8 1/2% Senior Notes | — | 430,732 | — | — | — | 430,732 | ||||||||||||||||||
Intercompany payables | — | 164,408 | — | 65,257 | (229,665 | ) | — | |||||||||||||||||
Total liabilities | — | 839,302 | 7,678 | 100,422 | (229,665 | ) | 717,737 | |||||||||||||||||
Equity | ||||||||||||||||||||||||
William Lyon Homes stockholders’ equity | 449,781 | 221,150 | 228,631 | (35,403 | ) | (414,378 | ) | 449,781 | ||||||||||||||||
Noncontrolling interests | — | — | 22,378 | — | 22,378 | |||||||||||||||||||
Total liabilities and equity | $ | 449,781 | $ | 1,060,452 | $ | 236,309 | $ | 87,397 | $ | (644,043 | ) | $ | 1,189,896 | |||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Unconsolidated | ||||||||||||||||||||||||
Delaware | California | Guarantor | Non-Guarantor | Eliminating | Consolidated | |||||||||||||||||||
Lyon | Lyon | Subsidiaries | Subsidiaries | Entries | Company | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 166,516 | $ | 28 | $ | 5,128 | $ | — | $ | 171,672 | ||||||||||||
Restricted cash | — | 854 | — | — | — | 854 | ||||||||||||||||||
Receivables | — | 15,742 | 72 | 5,025 | — | 20,839 | ||||||||||||||||||
Real estate inventories | ||||||||||||||||||||||||
Owned | — | 608,965 | 3,761 | 59,064 | — | 671,790 | ||||||||||||||||||
Not owned | — | 12,960 | — | — | — | 12,960 | ||||||||||||||||||
Deferred loan costs, net | — | 9,575 | — | — | — | 9,575 | ||||||||||||||||||
Goodwill | — | 14,209 | — | — | — | 14,209 | ||||||||||||||||||
Intangibles, net | — | 2,766 | — | — | — | 2,766 | ||||||||||||||||||
Deferred income taxes, net | — | 95,580 | — | — | — | 95,580 | ||||||||||||||||||
Other assets, net | — | 9,100 | 723 | 343 | — | 10,166 | ||||||||||||||||||
Investments in subsidiaries | 428,179 | 9,975 | — | — | (438,154 | ) | — | |||||||||||||||||
Intercompany receivables | — | — | 225,056 | (15 | ) | (225,041 | ) | — | ||||||||||||||||
Total assets | $ | 428,179 | $ | 946,242 | $ | 229,640 | $ | 69,545 | $ | (663,195 | ) | $ | 1,010,411 | |||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||
Accounts payable | $ | — | $ | 12,489 | $ | 1,959 | $ | 2,651 | $ | — | $ | 17,099 | ||||||||||||
Accrued expenses | — | 59,376 | 744 | 83 | — | 60,203 | ||||||||||||||||||
Liabilities from inventories not owned | — | 12,960 | — | — | — | 12,960 | ||||||||||||||||||
Notes payable | — | 12,281 | 1,762 | 24,017 | — | 38,060 | ||||||||||||||||||
8 1/2% Senior Notes | — | 431,295 | — | — | — | 431,295 | ||||||||||||||||||
Intercompany payables | — | 214,837 | — | 10,204 | (225,041 | ) | — | |||||||||||||||||
Total liabilities | — | 743,238 | 4,465 | 36,955 | (225,041 | ) | 559,617 | |||||||||||||||||
Equity | ||||||||||||||||||||||||
William Lyon Homes stockholders’ equity | 428,179 | 203,004 | 225,175 | 9,975 | (438,154 | ) | 428,179 | |||||||||||||||||
Noncontrolling interests | — | — | — | 22,615 | — | 22,615 | ||||||||||||||||||
Total liabilities and equity | $ | 428,179 | $ | 946,242 | $ | 229,640 | $ | 69,545 | $ | (663,195 | ) | $ | 1,010,411 | |||||||||||
Condensed Consolidating Statement of Operations | ' | |||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Unconsolidated | ||||||||||||||||||||||||
Delaware | California | Guarantor | Non-Guarantor | Eliminating | Consolidated | |||||||||||||||||||
Lyon | Lyon | Subsidiaries | Subsidiaries | Entries | Company | |||||||||||||||||||
Operating revenue | ||||||||||||||||||||||||
Sales | $ | — | $ | 136,300 | $ | 23,889 | $ | 9,679 | $ | — | $ | 169,868 | ||||||||||||
Construction services | — | 9,941 | — | — | — | 9,941 | ||||||||||||||||||
Management fees | — | 685 | — | — | (685 | ) | — | |||||||||||||||||
— | 146,926 | 23,889 | 9,679 | (685 | ) | 179,809 | ||||||||||||||||||
Operating costs | ||||||||||||||||||||||||
Cost of sales | — | (103,732 | ) | (19,466 | ) | (7,113 | ) | 685 | (129,626 | ) | ||||||||||||||
Construction services | — | (8,405 | ) | — | — | — | (8,405 | ) | ||||||||||||||||
Sales and marketing | — | (6,743 | ) | (1,620 | ) | (561 | ) | — | (8,924 | ) | ||||||||||||||
General and administrative | — | (10,220 | ) | (797 | ) | (2 | ) | — | (11,019 | ) | ||||||||||||||
Amortization of intangible assets | — | (502 | ) | — | — | — | (502 | ) | ||||||||||||||||
Other | — | (929 | ) | 19 | 181 | — | (729 | ) | ||||||||||||||||
— | (130,531 | ) | (21,864 | ) | (7,495 | ) | 685 | (159,205 | ) | |||||||||||||||
Income from subsidiaries | 12,285 | 1,949 | — | — | (14,234 | ) | — | |||||||||||||||||
Operating income | 12,285 | 18,344 | 2,025 | 2,184 | (14,234 | ) | 20,604 | |||||||||||||||||
Other income (expense), net | — | 606 | (8 | ) | (244 | ) | — | 354 | ||||||||||||||||
Income before provision for income taxes | 12,285 | 18,950 | 2,017 | 1,940 | (14,234 | ) | 20,958 | |||||||||||||||||
Provision for income taxes | — | (6,206 | ) | — | — | — | (6,206 | ) | ||||||||||||||||
Net income | 12,285 | 12,744 | 2,017 | 1,940 | (14,234 | ) | 14,752 | |||||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (2,467 | ) | — | (2,467 | ) | ||||||||||||||||
Net income (loss) attributable to William Lyon Homes | 12,285 | 12,744 | 2,017 | (527 | ) | (14,234 | ) | 12,285 | ||||||||||||||||
Net income (loss) available to common stockholders | $ | 12,285 | $ | 12,744 | $ | 2,017 | $ | (527 | ) | $ | (14,234 | ) | $ | 12,285 | ||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Unconsolidated | ||||||||||||||||||||||||
Delaware | California | Guarantor | Non-Guarantor | Eliminating | Consolidated | |||||||||||||||||||
Lyon | Lyon | Subsidiaries | Subsidiaries | Entries | Company | |||||||||||||||||||
Operating revenue | ||||||||||||||||||||||||
Sales | $ | — | $ | 62,880 | $ | 51,158 | $ | 9,858 | $ | — | $ | 123,896 | ||||||||||||
Construction services | — | 7,542 | — | — | — | 7,542 | ||||||||||||||||||
Management fees | — | 271 | — | — | (271 | ) | — | |||||||||||||||||
— | 70,693 | 51,158 | 9,858 | (271 | ) | 131,438 | ||||||||||||||||||
Operating costs | ||||||||||||||||||||||||
Cost of sales | — | (50,161 | ) | (42,719 | ) | (6,876 | ) | 271 | (99,485 | ) | ||||||||||||||
Construction services | — | (5,299 | ) | — | — | — | (5,299 | ) | ||||||||||||||||
Sales and marketing | — | (3,373 | ) | (2,480 | ) | (282 | ) | — | (6,135 | ) | ||||||||||||||
General and administrative | — | (8,867 | ) | (412 | ) | (13 | ) | — | (9,292 | ) | ||||||||||||||
Amortization of intangible assets | — | (360 | ) | — | — | (360 | ) | |||||||||||||||||
Other | — | (566 | ) | — | — | — | (566 | ) | ||||||||||||||||
— | (68,626 | ) | (45,611 | ) | (7,171 | ) | 271 | (121,137 | ) | |||||||||||||||
Income from subsidiaries | 7,394 | 5,453 | — | — | (12,847 | ) | — | |||||||||||||||||
Operating income | 7,394 | 7,520 | 5,547 | 2,687 | (12,847 | ) | 10,301 | |||||||||||||||||
Interest expense, net of amounts capitalized | — | (1,220 | ) | (47 | ) | — | — | (1,267 | ) | |||||||||||||||
Other income (expense), net | — | 391 | (10 | ) | (325 | ) | — | 56 | ||||||||||||||||
Income before reorganization items and provision for income taxes | 7,394 | 6,691 | 5,490 | 2,362 | (12,847 | ) | 9,090 | |||||||||||||||||
Provision for income taxes | — | (10 | ) | — | — | — | (10 | ) | ||||||||||||||||
Net (loss) income | 7,394 | 6,681 | 5,490 | 2,362 | (12,847 | ) | 9,080 | |||||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | (1,686 | ) | — | (1,686 | ) | |||||||||||||||||
Net (loss) income attributable to William Lyon Homes | 7,394 | 6,681 | 5,490 | 676 | (12,847 | ) | 7,394 | |||||||||||||||||
Preferred stock dividends | (544 | ) | — | — | — | — | (544 | ) | ||||||||||||||||
Net (loss) income available to common stockholders | $ | 6,850 | $ | 6,681 | $ | 5,490 | $ | 676 | $ | (12,847 | ) | $ | 6,850 | |||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Unconsolidated | ||||||||||||||||||||||||
Delaware | California | Guarantor | Non-Guarantor | Eliminating | Consolidated | |||||||||||||||||||
Lyon | Lyon | Subsidiaries | Subsidiaries | Entries | Company | |||||||||||||||||||
Operating revenue | ||||||||||||||||||||||||
Sales | $ | — | $ | 242,899 | $ | 42,437 | $ | 24,831 | $ | — | $ | 310,167 | ||||||||||||
Construction services | — | 19,593 | — | — | — | 19,593 | ||||||||||||||||||
Management fees | — | 1,140 | — | — | (1,140 | ) | — | |||||||||||||||||
— | 263,632 | 42,437 | 24,831 | (1,140 | ) | 329,760 | ||||||||||||||||||
Operating costs | ||||||||||||||||||||||||
Cost of sales | — | (184,161 | ) | (34,523 | ) | (18,294 | ) | 1,140 | (235,838 | ) | ||||||||||||||
Construction services | — | (16,473 | ) | — | — | — | (16,473 | ) | ||||||||||||||||
Sales and marketing | — | (11,432 | ) | (2,815 | ) | (1,235 | ) | — | (15,482 | ) | ||||||||||||||
General and administrative | — | (21,498 | ) | (1,655 | ) | (2 | ) | — | (23,155 | ) | ||||||||||||||
Amortization of intangible assets | — | (1,120 | ) | — | — | (1,120 | ) | |||||||||||||||||
Other | — | (1,899 | ) | 18 | 590 | — | (1,291 | ) | ||||||||||||||||
— | (236,583 | ) | (38,975 | ) | (18,941 | ) | 1,140 | (293,359 | ) | |||||||||||||||
Income from subsidiaries | 20,982 | 4,964 | — | — | (25,946 | ) | — | |||||||||||||||||
Operating income | 20,982 | 32,013 | 3,462 | 5,890 | (25,946 | ) | 36,401 | |||||||||||||||||
Interest expense, net of amounts capitalized | — | — | — | — | — | — | ||||||||||||||||||
Other income (expense), net | — | 875 | (11 | ) | (391 | ) | — | 473 | ||||||||||||||||
Income before provision for income taxes | 20,982 | 32,888 | 3,451 | 5,499 | (25,946 | ) | 36,874 | |||||||||||||||||
Provision for income taxes | — | (10,780 | ) | — | — | — | (10,780 | ) | ||||||||||||||||
Net income | 20,982 | 22,108 | 3,451 | 5,499 | (25,946 | ) | 26,094 | |||||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | (5,112 | ) | — | (5,112 | ) | |||||||||||||||||
Net income attributable to William Lyon Homes | 20,982 | 22,108 | 3,451 | 387 | (25,946 | ) | 20,982 | |||||||||||||||||
Net income available to common stockholders | $ | 20,982 | $ | 22,108 | $ | 3,451 | $ | 387 | $ | (25,946 | ) | $ | 20,982 | |||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Unconsolidated | ||||||||||||||||||||||||
Delaware | California | Guarantor | Non-Guarantor | Eliminating | Consolidated | |||||||||||||||||||
Lyon | Lyon | Subsidiaries | Subsidiaries | Entries | Company | |||||||||||||||||||
Operating revenue | ||||||||||||||||||||||||
Sales | $ | — | $ | 97,805 | $ | 92,667 | $ | 9,858 | $ | — | $ | 200,330 | ||||||||||||
Construction services | — | 11,961 | — | — | — | 11,961 | ||||||||||||||||||
Management fees | — | 271 | — | — | (271 | ) | — | |||||||||||||||||
— | 110,037 | 92,667 | 9,858 | (271 | ) | 212,291 | ||||||||||||||||||
Operating costs | — | |||||||||||||||||||||||
Cost of sales | — | (78,355 | ) | (77,933 | ) | (6,796 | ) | 271 | (162,813 | ) | ||||||||||||||
Construction services | — | (9,337 | ) | — | — | — | (9,337 | ) | ||||||||||||||||
Sales and marketing | — | (5,732 | ) | (4,561 | ) | (510 | ) | — | (10,803 | ) | ||||||||||||||
General and administrative | — | (16,699 | ) | (1,098 | ) | (19 | ) | — | (17,816 | ) | ||||||||||||||
Amortization of intangible assets | — | (982 | ) | — | — | (982 | ) | |||||||||||||||||
Other | — | (1,050 | ) | (1 | ) | — | — | (1,051 | ) | |||||||||||||||
— | (112,155 | ) | (83,593 | ) | (7,325 | ) | 271 | (202,802 | ) | |||||||||||||||
Income from subsidiaries | 4,846 | 7,667 | — | — | (12,513 | ) | — | |||||||||||||||||
Operating income | 4,846 | 5,549 | 9,074 | 2,533 | (12,513 | ) | 9,489 | |||||||||||||||||
Interest expense, net of amounts capitalized | — | (2,425 | ) | (126 | ) | — | — | (2,551 | ) | |||||||||||||||
Other income (expense), net | — | 764 | (13 | ) | (608 | ) | — | 143 | ||||||||||||||||
Income before reorganization items and provision for income taxes | 4,846 | 3,888 | 8,935 | 1,925 | (12,513 | ) | 7,081 | |||||||||||||||||
Reorganization items, net | — | (464 | ) | — | — | — | (464 | ) | ||||||||||||||||
Income before provision for income taxes | 4,846 | 3,424 | 8,935 | 1,925 | (12,513 | ) | 6,617 | |||||||||||||||||
Provision for income taxes | — | (10 | ) | — | — | — | (10 | ) | ||||||||||||||||
Net income | 4,846 | 3,414 | 8,935 | 1,925 | (12,513 | ) | 6,607 | |||||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (1,761 | ) | — | (1,761 | ) | ||||||||||||||||
Net income attributable to William Lyon Homes | 4,846 | 3,414 | 8,935 | 164 | (12,513 | ) | 4,846 | |||||||||||||||||
Preferred stock dividends | (1,528 | ) | — | — | — | — | (1,528 | ) | ||||||||||||||||
Net income available to common stockholders | $ | 3,318 | $ | 3,414 | $ | 8,935 | $ | 164 | $ | (12,513 | ) | $ | 3,318 | |||||||||||
Condensed Consolidating Statement of Cash Flows | ' | |||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Unconsolidated | ||||||||||||||||||||||||
Delaware | California | Guarantor | Non-Guarantor | Eliminating | Consolidated | |||||||||||||||||||
Lyon | Lyon | Subsidiaries | Subsidiaries | Entries | Company | |||||||||||||||||||
Operating activities | ||||||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (619 | ) | $ | (199,766 | ) | $ | 5,062 | $ | (7,837 | ) | $ | 619 | $ | (202,541 | ) | ||||||||
Investing activities | ||||||||||||||||||||||||
Purchases of property and equipment | — | (1,609 | ) | (31 | ) | — | — | (1,640 | ) | |||||||||||||||
Investments in subsidiaries | — | 50,342 | — | — | (50,342 | ) | — | |||||||||||||||||
Net cash provided by (used in) investing activities | — | 48,733 | (31 | ) | — | (50,342 | ) | (1,640 | ) | |||||||||||||||
Financing activities | ||||||||||||||||||||||||
Proceeds from borrowings on notes payable | — | 394 | (394 | ) | 34,153 | — | 34,153 | |||||||||||||||||
Principal payments on notes payable | — | (10,428 | ) | — | (28,292 | ) | — | (38,720 | ) | |||||||||||||||
Proceeds from issuance of 5 3/4% notes | — | 150,000 | — | — | — | 150,000 | ||||||||||||||||||
Payment of deferred loan costs | — | (3,560 | ) | — | — | — | (3,560 | ) | ||||||||||||||||
Proceeds from exercise of stock options | — | 285 | — | — | — | 285 | ||||||||||||||||||
Shares remitted to Company for employee tax witholding | — | (1,414 | ) | — | — | — | (1,414 | ) | ||||||||||||||||
Offering costs related to secondary sale of common stock | — | (105 | ) | — | — | — | (105 | ) | ||||||||||||||||
Noncontrolling interests contributions | — | — | — | 8,742 | — | 8,742 | ||||||||||||||||||
Noncontrolling interests distributions | — | — | — | (14,091 | ) | — | (14,091 | ) | ||||||||||||||||
Advances to affiliates | — | — | 5 | (45,765 | ) | 45,760 | — | |||||||||||||||||
Intercompany receivables/payables | 619 | (55,011 | ) | (4,609 | ) | 55,038 | 3,963 | — | ||||||||||||||||
Net cash provided by (used in)financing activities | 619 | 80,161 | (4,998 | ) | 9,785 | 49,723 | 135,290 | |||||||||||||||||
Net (decrease) increase in cash and cash equivalents | — | (70,872 | ) | 33 | 1,948 | — | (68,891 | ) | ||||||||||||||||
Cash and cash equivalents at beginning of period | — | 166,516 | 28 | 5,128 | — | 171,672 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 95,644 | $ | 61 | $ | 7,076 | $ | — | $ | 102,781 | ||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Unconsolidated | ||||||||||||||||||||||||
Delaware | California | Guarantor | Non-Guarantor | Eliminating | Consolidated | |||||||||||||||||||
Lyon | Lyon | Subsidiaries | Subsidiaries | Entries | Company | |||||||||||||||||||
Operating activities | ||||||||||||||||||||||||
Net cash used in operating activities | $ | — | $ | (28,146 | ) | $ | 6,674 | $ | (45,223 | ) | $ | — | $ | (66,695 | ) | |||||||||
Investing activities | ||||||||||||||||||||||||
Purchases of property and equipment | — | (1,522 | ) | (22 | ) | 8 | — | (1,536 | ) | |||||||||||||||
Investments in subsidiaries | — | (252 | ) | — | — | 252 | — | |||||||||||||||||
Net cash (used in) provided by investing activities | — | (1,774 | ) | (22 | ) | 8 | 252 | (1,536 | ) | |||||||||||||||
Financing activities | ||||||||||||||||||||||||
Proceeds on borrowings on notes payable | — | 16,764 | 1,762 | 22,734 | — | 41,260 | ||||||||||||||||||
Principal payments on notes payable | — | (12,976 | ) | — | (6,139 | ) | — | (19,115 | ) | |||||||||||||||
Payment of deferred loan costs | — | (370 | ) | — | — | — | (370 | ) | ||||||||||||||||
Proceeds from issuance of common stock | — | 179,438 | — | — | — | 179,438 | ||||||||||||||||||
Offering costs related to issuance of common stock | — | (15,517 | ) | — | — | — | (15,517 | ) | ||||||||||||||||
Payment of preferred stock dividends | — | (2,550 | ) | — | — | — | (2,550 | ) | ||||||||||||||||
Noncontrolling interests contributions | — | — | — | 34,848 | — | 34,848 | ||||||||||||||||||
Noncontrolling interests distributions | — | — | — | (14,421 | ) | — | (14,421 | ) | ||||||||||||||||
Intercompany receivables/payables | — | (163 | ) | 12,258 | 951 | (13,046 | ) | — | ||||||||||||||||
Advances to affiliates | — | — | (20,550 | ) | 7,756 | 12,794 | — | |||||||||||||||||
Net cash provided by (used in) financing activities | — | 164,626 | (6,530 | ) | 45,729 | (252 | ) | 203,573 | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents | — | 134,706 | 122 | 514 | — | 135,342 | ||||||||||||||||||
Cash and cash equivalents at beginning of period | — | 69,376 | 65 | 1,634 | — | 71,075 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 204,082 | $ | 187 | $ | 2,148 | $ | — | $ | 206,417 | ||||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Estimated Fair Values of Financial Instruments | ' | |||||||||||||||
The estimated fair values of financial instruments are as follows (in thousands): | ||||||||||||||||
Successor | ||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Amount | Value | Amount | Value | |||||||||||||
Financial liabilities: | ||||||||||||||||
Notes payable | $ | 35,906 | $ | 35,906 | $ | 38,060 | $ | 38,060 | ||||||||
5 3/4% Senior Notes due 2019 | $ | 150,000 | $ | 153,750 | $ | — | $ | — | ||||||||
8 1/2% Senior Notes due 2020 | $ | 430,732 | $ | 475,490 | $ | 431,295 | $ | 466,877 | ||||||||
Fair Value of Debt | ' | |||||||||||||||
The following table represents a reconciliation of the beginning and ending balance for the Company’s Level 3 fair value measurements: | ||||||||||||||||
Notes | ||||||||||||||||
Payable | ||||||||||||||||
(in thousands) | ||||||||||||||||
Fair value at December 31, 2013 | $ | 38,060 | ||||||||||||||
Repayments of principal (1) | (38,720 | ) | ||||||||||||||
Borrowings of principal (2) | 36,566 | |||||||||||||||
Increase in value during the period | — | |||||||||||||||
Fair value at June 30, 2014 | $ | 35,906 | ||||||||||||||
-1 | Represents the actual amount of principal repaid | |||||||||||||||
-2 | Represents the actual amount of principal borrowed |
Income_Per_Common_Share_Tables
Income Per Common Share (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Basic and Diluted Income (Loss) Per Common Share | ' | |||||||||||||||
Basic and diluted income per common share for the three and six months ended June 30, 2014 and 2013 were calculated as follows (in thousands, except number of shares and per share amounts): | ||||||||||||||||
Three | Three | Six | Six | |||||||||||||
Months | Months | Months | Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Basic weighted average number of common shares outstanding | 31,224,252 | 22,103,841 | 31,159,422 | 18,297,264 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Stock options, unvested common shares, and warrants | 1,525,856 | 1,205,578 | 1,510,138 | 862,648 | ||||||||||||
Diluted average shares outstanding | 32,750,108 | 23,309,419 | 32,669,560 | 19,159,912 | ||||||||||||
Net income available to common stockholders | $ | 12,285 | $ | 6,850 | $ | 20,982 | $ | 3,318 | ||||||||
Basic income per common share | $ | 0.39 | $ | 0.31 | $ | 0.67 | $ | 0.18 | ||||||||
Dilutive income per common share | $ | 0.38 | $ | 0.29 | $ | 0.64 | $ | 0.17 | ||||||||
Commitments_and_Contingencies_1
Commitments and Contingencies (Tables) | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Future Minimum Payments under Non-Cancelable Operating Leases | ' | |||
The table below shows the future minimum payments under non-cancelable operating leases at June 30, 2014 (in thousands). | ||||
Year Ending December 31 | ||||
2014 | $ | 1,423 | ||
2015 | 1,564 | |||
2016 | 1,004 | |||
2017 | 908 | |||
2018 | 888 | |||
Thereafter | 2,831 | |||
Total | $ | 8,618 | ||
Summary of Company's Consolidated Land Banking Arrangement | ' | |||
Summary information with respect to the Company’s land banking arrangements is as follows as of the periods presented (dollars in thousands): | ||||
31-Dec-13 | ||||
Total number of land banking projects | 1 | |||
Total number of lots | 610 | |||
Total purchase price | $ | 161,465 | ||
Balance of lots still under option and not purchased: | ||||
Number of lots | 65 | |||
Purchase price | $ | 12,960 | ||
Forfeited deposits if lots are not purchased | $ | 9,210 | ||
Basis_of_Presentation_and_Sign3
Basis of Presentation and Significant Accounting Policies - Summary of Changes in Warranty Liability (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Accounting Policies [Abstract] | ' | ' |
Warranty liability, beginning of period | $14,935 | $14,317 |
Warranty provision during period | 3,333 | 1,732 |
Warranty payments during period | -3,449 | -2,569 |
Warranty charges related to pre-existing warranties during period | 360 | 226 |
Warranty charges related to construction services projects | 652 | 144 |
Warranty liability, end of period | $15,831 | $13,850 |
Basis_of_Presentation_and_Sign4
Basis of Presentation and Significant Accounting Policies - Schedule of Interest Incurred under Company's Debt Obligations (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Accounting Policies [Abstract] | ' | ' | ' | ' |
Interest incurred | $11,919 | $7,849 | $21,314 | $15,000 |
Less: Interest capitalized | 11,919 | 6,582 | 21,314 | 12,449 |
Interest expense, net of amounts capitalized | 0 | 1,267 | 0 | 2,551 |
Cash paid for interest | $19,051 | $14,350 | $19,671 | $14,350 |
Basis_of_Presentation_and_Sign5
Basis of Presentation and Significant Accounting Policies - Additional Information (Details) (USD $) | 0 Months Ended | 6 Months Ended | |
In Millions, except Share data, unless otherwise specified | 21-May-13 | Jun. 30, 2014 | Dec. 31, 2013 |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Proceeds from Issuance of Common Stock, Net of Issuance Costs | $163.70 | ' | ' |
Capital stock, shares authorized (in shares) | ' | 190,000,000 | ' |
Preferred stock, shares authorized (in shares) | ' | 10,000,000 | 10,000,000 |
Preferred stock, par value (in USD per share) | ' | $0.01 | $0.01 |
Real estate warranty period | ' | '1 year | ' |
Common stock, Class A | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Common stock issued during period (in shares) | 10,005,000 | ' | ' |
Common stock, IPO price (in USD per share) | $25 | ' | ' |
Common stock, shares authorized (in shares) | ' | 150,000,000 | 150,000,000 |
Common stock, par value (in USD per share) | ' | $0.01 | $0.01 |
Common stock, Class B | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Common stock, shares authorized (in shares) | ' | 30,000,000 | 30,000,000 |
Common stock, par value (in USD per share) | ' | $0.01 | $0.01 |
Parent Company | Common stock, Class A | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Common stock issued during period (in shares) | 7,177,500 | ' | ' |
Selling Stockholders | Common stock, Class A | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Common stock issued during period (in shares) | 2,827,500 | ' | ' |
Minimum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Percentage of service revenue | ' | 3.00% | ' |
Percentage of home sale price reserved | ' | 1.00% | ' |
Maximum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Percentage of service revenue | ' | 5.00% | ' |
Percentage of home sale price reserved | ' | 1.25% | ' |
Variable_Interest_Entities_and1
Variable Interest Entities and Noncontrolling Interests - Additional Information (Details) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Joint_Ventures | Joint_Ventures | |
Noncontrolling Interest [Line Items] | ' | ' |
Number Of Joint Ventures | 1 | ' |
Number of Joint Ventures Formed in Prior Periods | ' | 3 |
Consolidated variable interest entities, assets | $73.50 | $66.40 |
Consolidated variable interest entities, liabilities | 35.5 | 27.1 |
Real Estate | ' | ' |
Noncontrolling Interest [Line Items] | ' | ' |
Consolidated variable interest entities, assets | 63.7 | 56.8 |
Cash | ' | ' |
Noncontrolling Interest [Line Items] | ' | ' |
Consolidated variable interest entities, assets | $6.70 | $4.70 |
Segment_Information_Segment_Fi
Segment Information - Segment Financial Information Relating to Operations (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Operating revenue: | ' | ' | ' | ' |
Total operating revenues | $179,809 | $131,438 | $329,760 | $212,291 |
Net income (loss) | ' | ' | ' | ' |
Income (loss) before provision for income taxes | 20,958 | 9,090 | 36,874 | 6,617 |
Reportable Geographical Components | Southern California | ' | ' | ' | ' |
Operating revenue: | ' | ' | ' | ' |
Total operating revenues | 115,942 | 44,304 | 203,321 | 55,550 |
Net income (loss) | ' | ' | ' | ' |
Income (loss) before provision for income taxes | 20,924 | 6,100 | 37,022 | 5,426 |
Reportable Geographical Components | Northern California | ' | ' | ' | ' |
Operating revenue: | ' | ' | ' | ' |
Total operating revenues | 19,875 | 14,988 | 46,751 | 28,325 |
Net income (loss) | ' | ' | ' | ' |
Income (loss) before provision for income taxes | 2,269 | 2,904 | 6,809 | 4,034 |
Reportable Geographical Components | Arizona | ' | ' | ' | ' |
Operating revenue: | ' | ' | ' | ' |
Total operating revenues | 16,431 | 33,549 | 29,709 | 55,178 |
Net income (loss) | ' | ' | ' | ' |
Income (loss) before provision for income taxes | 2,321 | 3,723 | 3,672 | 4,808 |
Reportable Geographical Components | Nevada | ' | ' | ' | ' |
Operating revenue: | ' | ' | ' | ' |
Total operating revenues | 18,392 | 17,740 | 35,541 | 32,501 |
Net income (loss) | ' | ' | ' | ' |
Income (loss) before provision for income taxes | 1,673 | 1,457 | 3,029 | 2,526 |
Reportable Geographical Components | Colorado | ' | ' | ' | ' |
Operating revenue: | ' | ' | ' | ' |
Total operating revenues | 9,169 | 20,857 | 14,438 | 40,737 |
Net income (loss) | ' | ' | ' | ' |
Income (loss) before provision for income taxes | -453 | 722 | -1,112 | 1,445 |
Reportable Geographical Components | Corporate | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | ' |
Income (loss) before provision for income taxes | ($5,776) | ($5,816) | ($12,546) | ($11,622) |
Segment_Information_Consists_o
Segment Information - Consists of Write-Off of Land Option Deposits and Pre-acquisition Costs (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Homebuilding assets: | ' | ' | ||
Total homebuilding assets | $1,189,896 | $1,010,411 | ||
Southern California | Reportable Geographical Components | ' | ' | ||
Homebuilding assets: | ' | ' | ||
Total homebuilding assets | 355,760 | 275,975 | ||
Northern California | Reportable Geographical Components | ' | ' | ||
Homebuilding assets: | ' | ' | ||
Total homebuilding assets | 210,681 | 143,693 | ||
Arizona | Reportable Geographical Components | ' | ' | ||
Homebuilding assets: | ' | ' | ||
Total homebuilding assets | 170,878 | 157,892 | ||
Nevada | Reportable Geographical Components | ' | ' | ||
Homebuilding assets: | ' | ' | ||
Total homebuilding assets | 127,906 | 85,695 | ||
Colorado | Reportable Geographical Components | ' | ' | ||
Homebuilding assets: | ' | ' | ||
Total homebuilding assets | 105,021 | 60,233 | ||
Corporate | Reportable Geographical Components | ' | ' | ||
Homebuilding assets: | ' | ' | ||
Total homebuilding assets | $219,650 | [1] | $286,923 | [1] |
[1] | Comprised primarily of cash and cash equivalents, deferred income taxes, receivables, deferred loan costs, and other assets. |
Segment_Information_Narrative_
Segment Information Narrative (Details) | 6 Months Ended |
Jun. 30, 2014 | |
segment | |
Segment Reporting [Abstract] | ' |
Number of operating segments | 1 |
Number of reportable segments | 5 |
Real_Estate_Inventories_Summar
Real Estate Inventories - Summary of Real Estate Inventories (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Real estate inventories owned: | ' | ' | ||
Total | $931,186 | $671,790 | ||
Real estate inventories not owned: | ' | ' | ||
Other land options contracts b land banking arrangement | 0 | 12,960 | ||
Successor | ' | ' | ||
Real estate inventories owned: | ' | ' | ||
Land deposits | 41,252 | 46,632 | ||
Land and land under development | 637,477 | 458,437 | ||
Homes completed and under construction | 212,064 | 144,736 | ||
Model homes | 40,393 | 21,985 | ||
Total | 931,186 | 671,790 | ||
Real estate inventories not owned: | ' | ' | ||
Other land options contracts b land banking arrangement | $0 | [1] | $12,960 | [1] |
[1] | Represents the consolidation of a land banking arrangement, net of deposits. The final lots attributable to this amount were purchased in April 2014. |
Senior_Notes_and_Secured_Indeb2
Senior Notes and Secured Indebtedness - Details of Notes Payable and Senior Notes (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Notes payable: | ' | ' |
Facility Size | $35,906 | $38,060 |
Senior notes: | ' | ' |
Outstanding amount | 580,732 | 431,295 |
Total notes payable and senior notes | 616,638 | 469,355 |
5 3/4% Senior Notes due April 15, 2019 | ' | ' |
Senior notes: | ' | ' |
Outstanding amount | 150,000 | 0 |
8 1/2% Senior Notes due November 15, 2020 | ' | ' |
Senior notes: | ' | ' |
Outstanding amount | 430,732 | 431,295 |
Construction Loan Payable | ' | ' |
Notes payable: | ' | ' |
Facility Size | 29,878 | 24,198 |
Seller Financing | ' | ' |
Notes payable: | ' | ' |
Facility Size | 6,028 | 13,862 |
Revolving Credit Facility | ' | ' |
Notes payable: | ' | ' |
Facility Size | $0 | $0 |
Senior_Notes_and_Secured_Indeb3
Senior Notes and Secured Indebtedness - Maturities of Notes Payable and 5 3/4% and 8 1/2% Senior Notes (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Total notes payable and senior notes | $616,638 | $469,355 |
Senior Notes | ' | ' |
Debt Instrument [Line Items] | ' | ' |
2014 | 486 | ' |
2015 | 5,542 | ' |
2016 | 29,878 | ' |
2017 | 0 | ' |
2018 | 0 | ' |
Thereafter | 575,000 | ' |
Total notes payable and senior notes | 610,906 | ' |
Premium amount excluded from future debt maturities disclosure | $5,732 | ' |
Senior_Notes_and_Secured_Indeb4
Senior Notes and Secured Indebtedness - Summary of Senior Notes Redemption Prices Percentage (Details) (Senior Notes, 5 3/4% Senior Notes due April 15, 2019) | 6 Months Ended |
Jun. 30, 2014 | |
Senior Notes | 5 3/4% Senior Notes due April 15, 2019 | ' |
Debt Instrument [Line Items] | ' |
15-Apr-16 | 104.31% |
15-Oct-16 | 102.88% |
15-Apr-17 | 101.44% |
April 15, 2018 and thereafter | 100.00% |
Senior_Notes_and_Secrued_Indeb
Senior Notes and Secrued Indebtedness - Maturities of Construction Notes Payable (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |||
March 2014 Construction Notes Payable | March 2014 Construction Notes Payable | June 2013 Construction Notes Payable | Construction Loans | Construction Loans | Construction Loans | Construction Loans | ||||||
London Interbank Offered Rate (LIBOR) | Prime Rate | March 2014 Construction Notes Payable | December 2013 Construction Notes Payable | June 2013 Construction Notes Payable | ||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Facility Size | $35,906,000 | $38,060,000 | ' | ' | ' | $72,600,000 | $26,000,000 | $18,600,000 | $28,000,000 | |||
Outstanding | ' | ' | ' | ' | ' | $29,900,000 | $3,700,000 | $10,900,000 | $15,300,000 | |||
Current Rate | ' | ' | ' | ' | ' | ' | 3.15% | [1] | 4.25% | [1] | 4.00% | [2] |
Basis spread on variable rate | ' | ' | 3.00% | 1.00% | 0.50% | ' | ' | ' | ' | |||
Minimum stated interest rate | ' | ' | ' | ' | 4.00% | ' | ' | ' | ' | |||
[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 the prime rate +0.5%, with a rate floor of 4.0% . |
Senior_Notes_and_Secured_Indeb5
Senior Notes and Secured Indebtedness - Senior Notes - Additional Information (Details) (USD $) | 0 Months Ended | 0 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 6 Months Ended | |||||||||||||
Sep. 03, 2009 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Oct. 24, 2013 | Nov. 08, 2012 | Jun. 30, 2014 | Oct. 24, 2013 | Nov. 08, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
5 3/4% Senior Notes due April 15, 2019 | 5 3/4% Senior Notes due April 15, 2019 | 8 1/2% Senior Notes due November 15, 2020 | 8 1/2% Senior Notes due November 15, 2020 | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | California Lyon | California Lyon | Minimum | Maximum | ||||
5 3/4% Senior Notes due April 15, 2019 | 5 3/4% Senior Notes due April 15, 2019 | 5 3/4% Senior Notes due April 15, 2019 | 8 1/2% Senior Notes due November 15, 2020 | 8 1/2% Senior Notes due November 15, 2020 | 8 1/2% Senior Notes due November 15, 2020 | 8 1/2% Senior Notes due November 15, 2020 | 8 1/2% Senior Notes due November 15, 2020 | 5 3/4% Senior Notes due April 15, 2019 | Senior Notes | Senior Notes | Senior Notes | ||||||||
5 3/4% Senior Notes due April 15, 2019 | 5 3/4% Senior Notes due April 15, 2019 | 5 3/4% Senior Notes due April 15, 2019 | |||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stated interest rate | ' | ' | ' | 5.75% | 5.75% | 8.50% | 8.50% | ' | 5.75% | 5.75% | ' | ' | 8.50% | ' | 8.50% | ' | ' | ' | ' |
Principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | $150,000,000 | ' | ' | $425,000,000 | $100,000,000 | $325,000,000 | ' | ' | ' | ' |
Percentage of principal amount | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | 106.50% | 100.00% | ' | ' | ' | ' | ' | ' | ' |
Outstanding amount | ' | 580,732,000 | 431,295,000 | 150,000,000 | 0 | 430,732,000 | 431,295,000 | ' | ' | ' | ' | ' | ' | ' | ' | 150,000,000 | ' | ' | ' |
Maturity date | 30-Sep-16 | ' | ' | ' | ' | ' | ' | ' | 15-Apr-19 | ' | ' | ' | 15-Nov-20 | ' | ' | ' | ' | ' | ' |
Redemption notice period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | '60 days |
Redemption percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' |
Redemption percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' |
Redemption percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 105.75% | ' | ' |
Net proceeds from issuance of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $104,600,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Senior_Notes_and_Secured_Indeb6
Senior Notes and Secured Indebtedness - Notes Payable - Additional Information (Details) (USD $) | 0 Months Ended | 0 Months Ended | 6 Months Ended | 6 Months Ended | 0 Months Ended | ||||||||
Sep. 03, 2009 | Jun. 30, 2014 | Dec. 31, 2013 | Aug. 07, 2013 | Jun. 30, 2014 | Aug. 07, 2013 | Aug. 07, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jul. 03, 2014 | |
Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Line of Credit | Seller Financing | Seller Financing | Seller Financing | Seller Financing | Seller Financing | Subsequent Event | ||||
Revolving Credit Facility Agreement | Revolving Credit Facility Agreement | Revolving Credit Facility Agreement | Revolving Credit Facility Agreement | Notes Payable One | Notes Payable One | Notes Payable Two | Revolving Credit Facility | ||||||
Seller Financing Notes Payable Maturing May 2015 | Seller Financing Notes Payable, Notes Maturing October 2014 | Seller Financing Notes Payable Maturing January 2015 | Revolving Credit Facility Agreement | ||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | $100,000,000 | $50,000,000 | ' | ' | ' | ' | ' | ' |
Maturity date | 30-Sep-16 | ' | ' | 5-Aug-16 | ' | ' | ' | ' | ' | 31-May-15 | ' | ' | ' |
Additional capacity under accordion feature | ' | ' | ' | ' | ' | 125,000,000 | ' | ' | ' | ' | ' | ' | ' |
Commitment fee percentage | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding letter of credit | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum leverage ratio | ' | ' | ' | ' | 60.00% | ' | ' | ' | ' | ' | ' | ' | 75.00% |
Minimum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 |
Facility Size | ' | $35,906,000 | $38,060,000 | ' | ' | ' | ' | $6,028,000 | $13,862,000 | $4,700,000 | $500,000 | $900,000 | ' |
Stated interest rate | ' | ' | ' | ' | ' | ' | ' | 4.00% | ' | 7.00% | ' | ' | ' |
Senior_Notes_and_Secured_Indeb7
Senior Notes and Secured Indebtedness - Additional Information (Details) (Delaware Lyon) | Jun. 30, 2014 |
Delaware Lyon | ' |
Debt Instrument [Line Items] | ' |
Ownership percentage | 100.00% |
Senior_Notes_and_Secured_Indeb8
Senior Notes and Secured Indebtedness - Condensed Consolidating Balance Sheet (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | $102,781 | $171,672 | $206,417 | $71,075 |
Restricted cash | 504 | 854 | ' | ' |
Receivables | 21,859 | 20,839 | ' | ' |
Real estate inventories | ' | ' | ' | ' |
Owned | 931,186 | 671,790 | ' | ' |
Not owned | 0 | 12,960 | ' | ' |
Deferred loan costs | 12,075 | 9,575 | ' | ' |
Goodwill | 14,209 | 14,209 | ' | ' |
Intangibles, net | 1,651 | 2,766 | ' | ' |
Deferred income taxes, net | 91,853 | 95,580 | ' | ' |
Other assets | 13,778 | 10,166 | ' | ' |
Total assets | 1,189,896 | 1,010,411 | ' | ' |
LIABILITIES AND EQUITY | ' | ' | ' | ' |
Accounts payable | 31,043 | 17,099 | ' | ' |
Accrued expenses | 70,056 | 60,203 | ' | ' |
Liabilities from inventories not owned | 0 | 12,960 | ' | ' |
Facility Size | 35,906 | 38,060 | ' | ' |
Senior Notes | 580,732 | 431,295 | ' | ' |
Liabilities | 717,737 | 559,617 | ' | ' |
Equity (deficit) | ' | ' | ' | ' |
William Lyon Homes stockholders' equity (deficit) | 449,781 | 428,179 | ' | ' |
Noncontrolling interest | 22,378 | 22,615 | ' | ' |
Total liabilities and equity | 1,189,896 | 1,010,411 | ' | ' |
Delaware Lyon | ' | ' | ' | ' |
Real estate inventories | ' | ' | ' | ' |
Investments in subsidiaries | 449,781 | 428,179 | ' | ' |
Total assets | 449,781 | 428,179 | ' | ' |
Equity (deficit) | ' | ' | ' | ' |
William Lyon Homes stockholders' equity (deficit) | 449,781 | 428,179 | ' | ' |
Total liabilities and equity | 449,781 | 428,179 | ' | ' |
California Lyon | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | 95,644 | 166,516 | 204,082 | 69,376 |
Restricted cash | 504 | 854 | ' | ' |
Receivables | 17,294 | 15,742 | ' | ' |
Real estate inventories | ' | ' | ' | ' |
Owned | 851,061 | 608,965 | ' | ' |
Not owned | ' | 12,960 | ' | ' |
Deferred loan costs | 12,075 | 9,575 | ' | ' |
Goodwill | 14,209 | 14,209 | ' | ' |
Intangibles, net | 1,651 | 2,766 | ' | ' |
Deferred income taxes, net | 91,853 | 95,580 | ' | ' |
Other assets | 11,564 | 9,100 | ' | ' |
Investments in subsidiaries | -35,403 | 9,975 | ' | ' |
Intercompany receivables | 0 | 0 | ' | ' |
Total assets | 1,060,452 | 946,242 | ' | ' |
LIABILITIES AND EQUITY | ' | ' | ' | ' |
Accounts payable | 20,571 | 12,489 | ' | ' |
Accrued expenses | 68,931 | 59,376 | ' | ' |
Liabilities from inventories not owned | ' | 12,960 | ' | ' |
Facility Size | 4,660 | 12,281 | ' | ' |
Intercompany payables | 164,408 | 214,837 | ' | ' |
Liabilities | 839,302 | 743,238 | ' | ' |
Equity (deficit) | ' | ' | ' | ' |
William Lyon Homes stockholders' equity (deficit) | 221,150 | 203,004 | ' | ' |
Total liabilities and equity | 1,060,452 | 946,242 | ' | ' |
Guarantor Subsidiaries | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | 61 | 28 | 187 | 65 |
Receivables | 1,355 | 72 | ' | ' |
Real estate inventories | ' | ' | ' | ' |
Owned | 3,336 | 3,761 | ' | ' |
Other assets | 1,892 | 723 | ' | ' |
Intercompany receivables | 229,665 | 225,056 | ' | ' |
Total assets | 236,309 | 229,640 | ' | ' |
LIABILITIES AND EQUITY | ' | ' | ' | ' |
Accounts payable | 5,282 | 1,959 | ' | ' |
Accrued expenses | 1,028 | 744 | ' | ' |
Facility Size | 1,368 | 1,762 | ' | ' |
Intercompany payables | 0 | ' | ' | ' |
Liabilities | 7,678 | 4,465 | ' | ' |
Equity (deficit) | ' | ' | ' | ' |
William Lyon Homes stockholders' equity (deficit) | 228,631 | 225,175 | ' | ' |
Total liabilities and equity | 236,309 | 229,640 | ' | ' |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | 7,076 | 5,128 | 2,148 | 1,634 |
Receivables | 3,210 | 5,025 | ' | ' |
Real estate inventories | ' | ' | ' | ' |
Owned | 76,789 | 59,064 | ' | ' |
Other assets | 322 | 343 | ' | ' |
Intercompany receivables | 0 | -15 | ' | ' |
Total assets | 87,397 | 69,545 | ' | ' |
LIABILITIES AND EQUITY | ' | ' | ' | ' |
Accounts payable | 5,190 | 2,651 | ' | ' |
Accrued expenses | 97 | 83 | ' | ' |
Facility Size | 29,878 | 24,017 | ' | ' |
Intercompany payables | 65,257 | 10,204 | ' | ' |
Liabilities | 100,422 | 36,955 | ' | ' |
Equity (deficit) | ' | ' | ' | ' |
William Lyon Homes stockholders' equity (deficit) | -35,403 | 9,975 | ' | ' |
Noncontrolling interest | 22,378 | 22,615 | ' | ' |
Total liabilities and equity | 87,397 | 69,545 | ' | ' |
Eliminations | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | 0 | ' | 0 | 0 |
Real estate inventories | ' | ' | ' | ' |
Investments in subsidiaries | -414,378 | -438,154 | ' | ' |
Intercompany receivables | -229,665 | -225,041 | ' | ' |
Total assets | -644,043 | -663,195 | ' | ' |
LIABILITIES AND EQUITY | ' | ' | ' | ' |
Intercompany payables | -229,665 | -225,041 | ' | ' |
Liabilities | -229,665 | -225,041 | ' | ' |
Equity (deficit) | ' | ' | ' | ' |
William Lyon Homes stockholders' equity (deficit) | -414,378 | -438,154 | ' | ' |
Total liabilities and equity | -644,043 | -663,195 | ' | ' |
5 3/4% Senior Notes due April 15, 2019 | ' | ' | ' | ' |
LIABILITIES AND EQUITY | ' | ' | ' | ' |
Senior Notes | 150,000 | 0 | ' | ' |
5 3/4% Senior Notes due April 15, 2019 | California Lyon | ' | ' | ' | ' |
LIABILITIES AND EQUITY | ' | ' | ' | ' |
Senior Notes | 150,000 | ' | ' | ' |
8 1/2% Senior Notes due November 15, 2020 | ' | ' | ' | ' |
LIABILITIES AND EQUITY | ' | ' | ' | ' |
Senior Notes | 430,732 | 431,295 | ' | ' |
8 1/2% Senior Notes due November 15, 2020 | California Lyon | ' | ' | ' | ' |
LIABILITIES AND EQUITY | ' | ' | ' | ' |
Senior Notes | $430,732 | ' | ' | ' |
Senior_Notes_and_Secured_Indeb9
Senior Notes and Secured Indebtedness - Condensed Consolidating Statement of Operations (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Operating revenue: | ' | ' | ' | ' |
Sales | $169,868 | $123,896 | $310,167 | $200,330 |
Construction services | 9,941 | 7,542 | 19,593 | 11,961 |
Operating revenue | 179,809 | 131,438 | 329,760 | 212,291 |
Operating costs | ' | ' | ' | ' |
Cost of sales | -129,626 | -99,485 | -235,838 | -162,813 |
Construction services | -8,405 | -5,299 | -16,473 | -9,337 |
Sales and marketing | -8,924 | -6,135 | -15,482 | -10,803 |
General and administrative | -11,019 | -9,292 | -23,155 | -17,816 |
Amortization of intangible assets | -502 | -360 | -1,120 | -982 |
Other | -729 | -566 | -1,291 | -1,051 |
Operating costs | -159,205 | -121,137 | -293,359 | -202,802 |
Operating income | 20,604 | 10,301 | 36,401 | 9,489 |
Interest expense, net of amounts capitalized | 0 | -1,267 | 0 | -2,551 |
Other income (expense), net | 354 | 56 | 473 | 143 |
Income before reorganization items | 20,958 | 9,090 | 36,874 | 7,081 |
Reorganization items, net | 0 | 0 | 0 | -464 |
Income before provision for income taxes | 20,958 | 9,090 | 36,874 | 6,617 |
Provision for income taxes | -6,206 | -10 | -10,780 | -10 |
Net income | 14,752 | 9,080 | 26,094 | 6,607 |
Less: Net income attributable to noncontrolling interests | -2,467 | -1,686 | -5,112 | -1,761 |
Net income attributable to William Lyon Homes | 12,285 | 7,394 | 20,982 | 4,846 |
Preferred stock dividends | 0 | -544 | 0 | -1,528 |
Net (loss) income available to common stockholders | 12,285 | 6,850 | 20,982 | 3,318 |
Delaware Lyon | ' | ' | ' | ' |
Operating costs | ' | ' | ' | ' |
Income from subsidiaries | 12,285 | 7,394 | 20,982 | 4,846 |
Operating income | 12,285 | 7,394 | 20,982 | 4,846 |
Income before reorganization items | ' | 7,394 | ' | 4,846 |
Income before provision for income taxes | 12,285 | ' | 20,982 | 4,846 |
Net income | 12,285 | 7,394 | 20,982 | 4,846 |
Net income attributable to William Lyon Homes | 12,285 | 7,394 | 20,982 | 4,846 |
Preferred stock dividends | ' | -544 | ' | -1,528 |
Net (loss) income available to common stockholders | 12,285 | 6,850 | 20,982 | 3,318 |
California Lyon | ' | ' | ' | ' |
Operating revenue: | ' | ' | ' | ' |
Sales | 136,300 | 62,880 | 242,899 | 97,805 |
Construction services | 9,941 | 7,542 | 19,593 | 11,961 |
Management fees | 685 | 271 | 1,140 | 271 |
Operating revenue | 146,926 | 70,693 | 263,632 | 110,037 |
Operating costs | ' | ' | ' | ' |
Cost of sales | -103,732 | -50,161 | -184,161 | -78,355 |
Construction services | -8,405 | -5,299 | -16,473 | -9,337 |
Sales and marketing | -6,743 | -3,373 | -11,432 | -5,732 |
General and administrative | -10,220 | -8,867 | -21,498 | -16,699 |
Amortization of intangible assets | -502 | -360 | -1,120 | -982 |
Other | -929 | -566 | -1,899 | -1,050 |
Operating costs | -130,531 | -68,626 | -236,583 | -112,155 |
Income from subsidiaries | 1,949 | 5,453 | 4,964 | 7,667 |
Operating income | 18,344 | 7,520 | 32,013 | 5,549 |
Interest expense, net of amounts capitalized | ' | -1,220 | ' | -2,425 |
Other income (expense), net | 606 | 391 | 875 | 764 |
Income before reorganization items | ' | 6,691 | ' | 3,888 |
Reorganization items, net | ' | ' | ' | -464 |
Income before provision for income taxes | 18,950 | ' | 32,888 | 3,424 |
Provision for income taxes | -6,206 | -10 | -10,780 | -10 |
Net income | 12,744 | 6,681 | 22,108 | 3,414 |
Net income attributable to William Lyon Homes | 12,744 | 6,681 | 22,108 | 3,414 |
Net (loss) income available to common stockholders | 12,744 | 6,681 | 22,108 | 3,414 |
Guarantor Subsidiaries | ' | ' | ' | ' |
Operating revenue: | ' | ' | ' | ' |
Sales | 23,889 | 51,158 | 42,437 | 92,667 |
Operating revenue | 23,889 | 51,158 | 42,437 | 92,667 |
Operating costs | ' | ' | ' | ' |
Cost of sales | -19,466 | -42,719 | -34,523 | -77,933 |
Sales and marketing | -1,620 | -2,480 | -2,815 | -4,561 |
General and administrative | -797 | -412 | -1,655 | -1,098 |
Other | 19 | 0 | 18 | -1 |
Operating costs | -21,864 | -45,611 | -38,975 | -83,593 |
Operating income | 2,025 | 5,547 | 3,462 | 9,074 |
Interest expense, net of amounts capitalized | ' | -47 | ' | -126 |
Other income (expense), net | -8 | -10 | -11 | -13 |
Income before reorganization items | ' | 5,490 | ' | 8,935 |
Income before provision for income taxes | 2,017 | ' | 3,451 | 8,935 |
Net income | 2,017 | 5,490 | 3,451 | 8,935 |
Net income attributable to William Lyon Homes | 2,017 | 5,490 | 3,451 | 8,935 |
Net (loss) income available to common stockholders | 2,017 | 5,490 | 3,451 | 8,935 |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Operating revenue: | ' | ' | ' | ' |
Sales | 9,679 | 9,858 | 24,831 | 9,858 |
Operating revenue | 9,679 | 9,858 | 24,831 | 9,858 |
Operating costs | ' | ' | ' | ' |
Cost of sales | -7,113 | -6,876 | -18,294 | -6,796 |
Sales and marketing | -561 | -282 | -1,235 | -510 |
General and administrative | -2 | -13 | -2 | -19 |
Other | 181 | 0 | 590 | 0 |
Operating costs | -7,495 | -7,171 | -18,941 | -7,325 |
Operating income | 2,184 | 2,687 | 5,890 | 2,533 |
Interest expense, net of amounts capitalized | ' | 0 | ' | 0 |
Other income (expense), net | -244 | -325 | -391 | -608 |
Income before reorganization items | ' | 2,362 | ' | 1,925 |
Income before provision for income taxes | 1,940 | ' | 5,499 | 1,925 |
Net income | 1,940 | 2,362 | 5,499 | 1,925 |
Less: Net income attributable to noncontrolling interests | -2,467 | -1,686 | -5,112 | -1,761 |
Net income attributable to William Lyon Homes | -527 | 676 | 387 | 164 |
Net (loss) income available to common stockholders | -527 | 676 | 387 | 164 |
Eliminations | ' | ' | ' | ' |
Operating revenue: | ' | ' | ' | ' |
Management fees | -685 | -271 | -1,140 | -271 |
Operating revenue | -685 | -271 | -1,140 | -271 |
Operating costs | ' | ' | ' | ' |
Cost of sales | 685 | 271 | 1,140 | 271 |
Operating costs | 685 | 271 | 1,140 | 271 |
Income from subsidiaries | -14,234 | -12,847 | -25,946 | -12,513 |
Operating income | -14,234 | -12,847 | -25,946 | -12,513 |
Income before reorganization items | ' | -12,847 | ' | -12,513 |
Income before provision for income taxes | -14,234 | ' | -25,946 | -12,513 |
Net income | -14,234 | -12,847 | -25,946 | -12,513 |
Net income attributable to William Lyon Homes | -14,234 | -12,847 | -25,946 | -12,513 |
Net (loss) income available to common stockholders | ($14,234) | ($12,847) | ($25,946) | ($12,513) |
Recovered_Sheet1
Senior Notes and Secured Indebtedness - Condensed Consolidating Statement of Cash Flows (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Operating activities | ' | ' |
Net cash used in operating activities | ($202,541) | ($66,695) |
Investing activities | ' | ' |
Purchases of property and equipment | -1,640 | -1,536 |
Net cash used in investing activities | -1,640 | -1,536 |
Financing activities | ' | ' |
Proceeds from borrowings on notes payable | 34,153 | 41,260 |
Principal payments on notes payable | -38,720 | -19,115 |
Proceeds from issuance of 5 3/4% senior notes | 150,000 | 0 |
Payment of deferred loan costs | -3,560 | -370 |
Proceeds from exercise of stock options | 285 | 179,438 |
Shares remitted to Company for employee tax witholding | -1,414 | 0 |
Payments of Stock Issuance Costs | -105 | -15,517 |
Payment of preferred stock dividends | 0 | -2,550 |
Noncontrolling interests contributions | 8,742 | 34,848 |
Noncontrolling interests distributions | -14,091 | -14,421 |
Intercompany receivables/payables | 0 | 0 |
Advances to affiliates | 0 | 0 |
Net cash provided by financing activities | 135,290 | 203,573 |
Net decrease in cash and cash equivalents | -68,891 | 135,342 |
Cash and cash equivalents b beginning of period | 171,672 | 71,075 |
Cash and cash equivalents b end of period | 102,781 | 206,417 |
Delaware Lyon | ' | ' |
Operating activities | ' | ' |
Net cash used in operating activities | -619 | ' |
Financing activities | ' | ' |
Intercompany receivables/payables | 619 | ' |
Net cash provided by financing activities | 619 | ' |
California Lyon | ' | ' |
Operating activities | ' | ' |
Net cash used in operating activities | -199,766 | -28,146 |
Investing activities | ' | ' |
Purchases of property and equipment | -1,609 | -1,522 |
Investments in subsidiaries | 50,342 | -252 |
Net cash used in investing activities | 48,733 | -1,774 |
Financing activities | ' | ' |
Proceeds from borrowings on notes payable | 394 | 16,764 |
Principal payments on notes payable | -10,428 | -12,976 |
Proceeds from issuance of 5 3/4% senior notes | 150,000 | ' |
Payment of deferred loan costs | -3,560 | -370 |
Proceeds from exercise of stock options | 285 | 179,438 |
Shares remitted to Company for employee tax witholding | -1,414 | ' |
Payments of Stock Issuance Costs | -105 | -15,517 |
Payment of preferred stock dividends | ' | -2,550 |
Noncontrolling interests distributions | 0 | ' |
Intercompany receivables/payables | -55,011 | -163 |
Net cash provided by financing activities | 80,161 | 164,626 |
Net decrease in cash and cash equivalents | -70,872 | 134,706 |
Cash and cash equivalents b beginning of period | 166,516 | 69,376 |
Cash and cash equivalents b end of period | 95,644 | 204,082 |
Guarantor Subsidiaries | ' | ' |
Operating activities | ' | ' |
Net cash used in operating activities | 5,062 | 6,674 |
Investing activities | ' | ' |
Purchases of property and equipment | -31 | -22 |
Net cash used in investing activities | -31 | -22 |
Financing activities | ' | ' |
Proceeds from borrowings on notes payable | -394 | 1,762 |
Intercompany receivables/payables | -4,609 | 12,258 |
Advances to affiliates | 5 | -20,550 |
Net cash provided by financing activities | -4,998 | -6,530 |
Net decrease in cash and cash equivalents | 33 | 122 |
Cash and cash equivalents b beginning of period | 28 | 65 |
Cash and cash equivalents b end of period | 61 | 187 |
Non-Guarantor Subsidiaries | ' | ' |
Operating activities | ' | ' |
Net cash used in operating activities | -7,837 | -45,223 |
Investing activities | ' | ' |
Purchases of property and equipment | 0 | 8 |
Net cash used in investing activities | 0 | 8 |
Financing activities | ' | ' |
Proceeds from borrowings on notes payable | 34,153 | 22,734 |
Principal payments on notes payable | -28,292 | -6,139 |
Noncontrolling interests contributions | 8,742 | 34,848 |
Noncontrolling interests distributions | -14,091 | -14,421 |
Intercompany receivables/payables | 55,038 | 951 |
Advances to affiliates | -45,765 | 7,756 |
Net cash provided by financing activities | 9,785 | 45,729 |
Net decrease in cash and cash equivalents | 1,948 | 514 |
Cash and cash equivalents b beginning of period | 5,128 | 1,634 |
Cash and cash equivalents b end of period | 7,076 | 2,148 |
Eliminations | ' | ' |
Operating activities | ' | ' |
Net cash used in operating activities | 619 | ' |
Investing activities | ' | ' |
Investments in subsidiaries | -50,342 | 252 |
Net cash used in investing activities | -50,342 | 252 |
Financing activities | ' | ' |
Intercompany receivables/payables | 3,963 | -13,046 |
Advances to affiliates | 45,760 | 12,794 |
Net cash provided by financing activities | 49,723 | -252 |
Net decrease in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents b beginning of period | ' | 0 |
Cash and cash equivalents b end of period | $0 | $0 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Estimated Fair Values of Financial Instruments (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial liabilities: | ' | ' |
Facility Size | $35,906 | $38,060 |
Notes payable, Fair Value | 35,906 | 38,060 |
Senior Notes | 580,732 | 431,295 |
5 3/4% Senior Notes due April 15, 2019 | ' | ' |
Financial liabilities: | ' | ' |
Stated interest rate | 5.75% | 5.75% |
Senior Notes | 150,000 | 0 |
Senior Notes, Fair Value | 153,750 | 0 |
8 1/2% Senior Notes due November 15, 2020 | ' | ' |
Financial liabilities: | ' | ' |
Stated interest rate | 8.50% | 8.50% |
Senior Notes | 430,732 | 431,295 |
Senior Notes, Fair Value | $475,490 | $466,877 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments - Fair Value of Debt (Details) (Note Payable, USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | |
Note Payable | ' | |
Fair Value Measurements Of Financial Instruments [Line Items] | ' | |
Fair value at December 31, 2013 | $38,060 | |
Repayments of principal | -38,720 | [1] |
Borrowings of principal | 36,566 | [2] |
Increase in value during the period | 0 | |
Fair value at June 30, 2014 | $35,906 | |
[1] | Represents the actual amount of principal repaid | |
[2] | Represents the actual amount of principal borrowed |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Details) (USD $) | 0 Months Ended | 6 Months Ended | |
In Millions, unless otherwise specified | Sep. 03, 2009 | Jun. 30, 2014 | Jun. 30, 2013 |
Related Party Transactions [Abstract] | ' | ' | ' |
Aggregate purchase price of aircraft | $8.30 | ' | ' |
Cash paid on sale of aircraft | 2.1 | ' | ' |
Promissory note from the affiliate | 6.2 | ' | ' |
Adjusted fair value | 5.2 | ' | ' |
Semiannual interest payments received | 0.1 | ' | ' |
Maturity date | 30-Sep-16 | ' | ' |
Charges related to the rent expense | ' | ' | $0.20 |
Current lease expiry date | ' | 31-Mar-13 | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Effective income tax rate | 29.60% | ' | 0.10% | 29.20% | 0.20% |
Valuation allowance | $3,195,000 | $3,959,000 | ' | $3,195,000 | ' |
Income tax benefit resulting from deferred tax asset valuation reversal | ' | 95,600,000 | ' | ' | ' |
Testing Period | ' | ' | ' | '5 years | ' |
AMT credit carryovers | 1,400,000 | ' | ' | 1,400,000 | ' |
Federal | ' | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Unused built-in losses | 69,500,000 | ' | ' | 69,500,000 | ' |
State | ' | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Operating loss carry forwards | 80,600,000 | ' | ' | 80,600,000 | ' |
Unused built-in losses | $37,000,000 | ' | ' | $37,000,000 | ' |
Income_Per_Common_Share_Basic_
Income Per Common Share - Basic and Diluted Income (Loss) per Common Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Basic weighted average number of common shares outstanding | 31,224,252 | 22,103,841 | 31,159,422 | 18,297,264 |
Effect of dilutive securities: | ' | ' | ' | ' |
Stock options, unvested common shares, and warrants | 1,525,856 | 1,205,578 | 1,510,138 | 862,648 |
Diluted average shares outstanding | 32,750,108 | 23,309,419 | 32,669,560 | 19,159,912 |
Net income available to common stockholders | $12,285 | $6,850 | $20,982 | $3,318 |
Basic income per common share (in USD per share) | $0.39 | $0.31 | $0.67 | $0.18 |
Dilutive income per common share (in USD per share) | $0.38 | $0.29 | $0.64 | $0.17 |
Stock_Based_Compensation_Addit
Stock Based Compensation - Additional Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock based compensation expense | $900 | $1,000 | $1,854 | $1,327 |
Performance Based Restricted Stock [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Issuance of stock, shares | 0 | ' | 287,739 | ' |
Stock awards, vesting percentage | ' | ' | 33.33% | ' |
Restricted stock [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Issuance of stock, shares | 925 | ' | 48,562 | ' |
Restricted stock [Member] | Other Employee [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Issuance of stock, shares | 925 | ' | 26,134 | ' |
Stock awards, vesting percentage | ' | ' | 50.00% | ' |
Restricted stock [Member] | Non Employee Director [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Issuance of stock, shares | 0 | ' | 22,428 | ' |
Stock awards, vesting percentage | ' | ' | 25.00% | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies - Additional Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' |
Rent expense under cancelable and non-cancelable operating leases | $700,000 | $400,000 | $1,400,000 | $900,000 | ' |
Collateral for outstanding irrevocable | 500,000 | ' | 500,000 | ' | 900,000 |
Outstanding performance and surety bonds | 91,500,000 | ' | 91,500,000 | ' | ' |
Non-refundable deposits | 41,000,000 | ' | 41,000,000 | ' | ' |
Remaining purchase price of land | 317,700,000 | ' | 317,700,000 | ' | ' |
Total purchase price | ' | ' | ' | ' | 161,465,000 |
Minimum | ' | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' |
Non-refundable deposit | 15.00% | ' | 15.00% | ' | ' |
Maximum | ' | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' |
Non-refundable deposit | 25.00% | ' | 25.00% | ' | ' |
Balance Of Lots Still Under Option And Not Purchased [Member] | ' | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' |
Total purchase price | ' | ' | ' | ' | 12,960,000 |
Project Construction Commitment [Member] | ' | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' |
Other Commitment | $130,400,000 | ' | $130,400,000 | ' | ' |
Commitments_and_Contingencies_3
Commitments and Contingencies - Future Minimum Payments Under Non-Cancelable Operating Leases (Details) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
2014 | $1,423 |
2015 | 1,564 |
2016 | 1,004 |
2017 | 908 |
2018 | 888 |
Thereafter | 2,831 |
Total | $8,618 |
Commitments_and_Contingencies_4
Commitments and Contingencies - Summary of Company's Consolidated Land Banking Arrangements (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | lot |
Project | |
Noncontrolling Interest [Line Items] | ' |
Total number of land banking projects | 1 |
Total number of lots | 610 |
Total purchase price | $161,465 |
Balance Of Lots Still Under Option And Not Purchased [Member] | ' |
Noncontrolling Interest [Line Items] | ' |
Total number of lots | 65 |
Total purchase price | 12,960 |
Forfeited deposits if lots are not purchased | $9,210 |
Subsequent_Events_Acquisition_
Subsequent Events - Acquisition (Details) (USD $) | 0 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | ||||||
Sep. 03, 2009 | Jun. 30, 2014 | Aug. 12, 2014 | Aug. 07, 2013 | Jun. 30, 2014 | Aug. 07, 2013 | Jul. 03, 2014 | Aug. 11, 2014 | Aug. 11, 2014 | Aug. 12, 2014 | Aug. 12, 2014 | Aug. 12, 2014 | Aug. 12, 2014 | |
segment | Subsequent Event | Revolving Credit Facility Agreement | Revolving Credit Facility Agreement | Revolving Credit Facility Agreement | Revolving Credit Facility Agreement | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Eurodollar | Eurodollar | ||
PNW Home Builders | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | 7.00% Senior Notes due 2022 | 7.00% Senior Notes due 2022 | Senior Unsecured Loan Facility | Senior Unsecured Loan Facility | Senior Notes | Senior Notes | |||
lot | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Senior Unsecured Loan Facility | Senior Unsecured Loan Facility | ||||||
division | Subsequent Event | Subsequent Event | |||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments to acquire business | ' | ' | $520,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Working capital adjustments | ' | ' | 28,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of operating segments as a result of acquired business | ' | 1 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of lots acquired | ' | ' | 4,600 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of active selling communities | ' | ' | 12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount | ' | ' | ' | ' | ' | ' | ' | ' | 300,000,000 | ' | ' | ' | ' |
Stated interest rate | ' | ' | ' | ' | ' | ' | ' | ' | 7.00% | ' | ' | ' | ' |
Proceeds from land banking arrangements | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' |
Short-term borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 120,000,000 | ' | ' |
Percentage of principal amount | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' |
Variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Eurodollar rate |
Minimum stated interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' |
Interest rate marginal increase | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' |
Maturity date | 30-Sep-16 | ' | ' | 5-Aug-16 | ' | ' | ' | ' | ' | 12-Aug-14 | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' |
Minimum borrowing capacity | ' | ' | ' | ' | ' | ' | $50,000,000 | ' | ' | ' | ' | ' | ' |
Maximum leverage ratio | ' | ' | ' | ' | 60.00% | ' | 75.00% | ' | ' | ' | ' | ' | ' |