Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | ||
Sep. 30, 2014 | Nov. 10, 2014 | Nov. 10, 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-Sep-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q3 | ' | ' |
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 | ' | 27,431,347 | 3,813,884 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
ASSETS | ' | ' | ||
Cash and cash equivalents | $35,119 | $171,672 | ||
Restricted cash | 504 | 854 | ||
Receivables | 19,840 | 16,459 | ||
Escrow proceeds receivable | 14,606 | 4,380 | ||
Real estate inventories | ' | ' | ||
Owned | 1,378,432 | 671,790 | ||
Not owned | 0 | [1] | 12,960 | [1] |
Deferred loan costs, net | 25,975 | 9,575 | ||
Goodwill | 63,128 | 14,209 | ||
Intangibles, net of accumulated amortization of $8,900 as of September 30, 2014 and $7,611 as of December 31, 2013 | 7,377 | 2,766 | ||
Deferred income taxes, net valuation allowance of $3,211 as of September 30, 2014 and $3,959 as of December 31, 2013 | 91,055 | 95,580 | ||
Other assets, net | 17,613 | 10,166 | ||
Total assets | 1,653,649 | 1,010,411 | ||
LIABILITIES AND EQUITY | ' | ' | ||
Accounts payable | 47,898 | 17,099 | ||
Accrued expenses | 93,642 | 60,203 | ||
Liabilities from inventories not owned | 0 | 12,960 | ||
Notes payable | 41,264 | 38,060 | ||
Total senior notes | 1,041,707 | 469,355 | ||
Total liabilities | 1,183,247 | 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 September 30, 2014 and December 31, 2013, respectively | 0 | 0 | ||
Additional paid-in capital | 313,356 | 311,863 | ||
Retained earnings | 142,622 | 116,002 | ||
Total William Lyon Homes stockholdersb equity | 456,297 | 428,179 | ||
Noncontrolling interests | 14,105 | 22,615 | ||
Total equity | 470,402 | 450,794 | ||
Total liabilities and equity | 1,653,649 | 1,010,411 | ||
Common stock, Class A, par value $0.01 per share; 150,000,000 shares authorized; 28,078,301 and 27,622,283 shares issued, 27,430,927 and 27,216,813 outstanding at September 30, 2014 and December 31, 2013, respectively | ' | ' | ||
Equity: | ' | ' | ||
Common stock | 281 | 276 | ||
Common stock, Class B, par value $0.01 per share; 30,000,000 shares authorized; 3,813,884 shares issued and outstanding at September 30, 2014 and December 31, 2013 | ' | ' | ||
Equity: | ' | ' | ||
Common stock | 38 | 38 | ||
Senior unsecured facility | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ||
Total senior notes | 120,000 | 0 | ||
5 3/4% Senior notes due April 15, 2019 | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ||
Total senior notes | 150,000 | 0 | ||
8 1/2% Senior notes due November 15, 2020 | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ||
Total senior notes | 430,443 | 431,295 | ||
7% Senior notes due August 15, 2022 | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ||
Total senior notes | $300,000 | $0 | ||
[1] | Represents the consolidation of a land banking arrangement, net of deposits. The final lots attributable to this amount were purchased in April 2014. |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Intangibles - Accumulated Amortization | $8,900 | $7,611 |
Deferred Income Taxes - Valuation Allowance | $3,211 | $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 (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 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 (in shares) | 28,078,301 | 27,622,283 |
Common stock, shares outstanding (in shares) | 27,430,927 | 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 (in shares) | 3,813,884 | 3,813,884 |
Common stock, shares outstanding (in shares) | 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% |
7% Senior notes due August 15, 2022 | ' | ' |
Stated interest rate | 7.00% | 7.00% |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Operating revenue | ' | ' | ' | ' |
Home sales | $196,090 | $141,352 | $504,546 | $338,434 |
Lots, land and other sales | 215 | 0 | 1,926 | 3,248 |
Construction services | 10,593 | 9,478 | 30,186 | 21,439 |
Operating revenue | 206,898 | 150,830 | 536,658 | 363,121 |
Operating costs | ' | ' | ' | ' |
Cost of sales b homes | -157,565 | -107,957 | -392,083 | -267,932 |
Cost of sales b lots, land and other | -209 | 0 | -1,529 | -2,838 |
Construction services | -8,262 | -8,135 | -24,735 | -17,472 |
Sales and marketing | -12,476 | -6,679 | -27,958 | -17,482 |
General and administrative | -12,726 | -10,200 | -35,881 | -28,016 |
Transaction expenses | -5,768 | 0 | -5,768 | 0 |
Amortization of intangible assets | -174 | -191 | -1,294 | -1,173 |
Other | -454 | -695 | -1,745 | -1,746 |
Total operating costs | -197,634 | -133,857 | -490,993 | -336,659 |
Operating income | 9,264 | 16,973 | 45,665 | 26,462 |
Interest expense, net of amounts capitalized | 0 | -51 | 0 | -2,602 |
Other income, net | 357 | 114 | 830 | 257 |
Income before reorganization items | 9,621 | 17,036 | 46,495 | 24,117 |
Reorganization items, net | 0 | 0 | 0 | -464 |
Income before provision for income taxes | 9,621 | 17,036 | 46,495 | 23,653 |
Provision for income taxes | -1,999 | -6,356 | -12,779 | -6,366 |
Net income | 7,622 | 10,680 | 33,716 | 17,287 |
Less: Net income attributable to noncontrolling interests | -1,984 | -3,118 | -7,096 | -4,879 |
Net income attributable to William Lyon Homes | 5,638 | 7,562 | 26,620 | 12,408 |
Preferred stock dividends | 0 | 0 | 0 | -1,528 |
Net income available to common stockholders | $5,638 | $7,562 | $26,620 | $10,880 |
Income per common share: | ' | ' | ' | ' |
Basic (in USD per share) | $0.18 | $0.24 | $0.85 | $0.48 |
Diluted (in USD per share) | $0.17 | $0.24 | $0.81 | $0.46 |
Weighted average common shares outstanding: | ' | ' | ' | ' |
Basic (in shares) | 31,232,655 | 30,975,160 | 31,184,101 | 22,569,810 |
Diluted (in shares) | 32,760,746 | 31,895,814 | 32,725,164 | 23,446,954 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENT OF EQUITY (USD $) | Total | Common Stock | Additional Paid-In | Retained Earnings | Non- Controlling Interests | |
In Thousands, 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 | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | |
Net income | 33,716 | ' | ' | 26,620 | 7,096 | |
Noncontrolling interests contributions | 9,641 | ' | ' | ' | 9,641 | |
Noncontrolling interests distributions | -25,247 | ' | ' | ' | -25,247 | |
Exercise of stock options | 285 | 1 | 284 | ' | ' | |
Exercise of stock options (in shares) | ' | 158 | ' | ' | ' | |
Shares remitted to Company | [1] | -1,454 | ' | -1,454 | ' | ' |
Shares remitted to Company (in shares) | [1] | ' | -94 | ' | ' | ' |
Offering costs related to secondary sale of common stock | -105 | ' | -105 | ' | ' | |
Stock based compensation | 2,772 | 4 | 2,768 | ' | ' | |
Stock based compensation (in shares) | ' | 392 | ' | ' | ' | |
Ending Balance at Sep. 30, 2014 | $470,402 | $319 | $313,356 | $142,622 | $14,105 | |
Ending Balance (in shares) at Sep. 30, 2014 | ' | 31,892 | ' | ' | ' | |
[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 $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Operating activities | ' | ' |
Net income | $33,716 | $17,287 |
Adjustments to reconcile net income to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 5,240 | 2,184 |
Provision for deferred income taxes | 4,525 | 0 |
Stock based compensation expense | 2,772 | 2,207 |
Equity in earnings of unconsolidated joint ventures | -146 | 0 |
Loss on sale of property and equipment | 0 | 4 |
Net changes in operating assets and liabilities, net of the effects from Acquisition: | ' | ' |
Restricted cash | 350 | 0 |
Receivables | -3,346 | -4,033 |
Escrow proceeds receivable | -10,226 | -2,833 |
Real estate inventories b owned | -265,453 | -202,294 |
Real estate inventories b not owned | 12,960 | 18,291 |
Other assets | -3,995 | 3,110 |
Accounts payable | 29,409 | 665 |
Accrued expenses | 25,964 | 18,784 |
Liabilities from real estate inventories not owned | -12,960 | -18,291 |
Net cash used in operating activities | -181,190 | -164,919 |
Investing activities | ' | ' |
Distributions from unconsolidated joint ventures | 146 | 0 |
Cash paid for acquisitions, net | -488,785 | 0 |
Purchases of property and equipment | -1,727 | -3,359 |
Net cash used in investing activities | -490,366 | -3,359 |
Financing activities | ' | ' |
Proceeds from borrowings on notes payable | 57,947 | 51,444 |
Principal payments on notes payable | -57,155 | -45,459 |
Borrowings on senior unsecured facility | 120,000 | 0 |
Payment of deferred loan costs | -18,909 | -1,792 |
Proceeds from stock options exercised | 285 | 0 |
Proceeds from issuance of common stock | 0 | 179,438 |
Shares remitted to Company for employee tax withholding | -1,454 | 0 |
Offering costs related to sale of common stock | -105 | -15,655 |
Payment of preferred stock dividends | 0 | -2,550 |
Noncontrolling interests contributions | 9,641 | 35,399 |
Noncontrolling interests distributions | -25,247 | -21,700 |
Net cash provided by financing activities | 535,003 | 179,125 |
Net (decrease)/increase in cash and cash equivalents | -136,553 | 10,847 |
Cash and cash equivalents b beginning of period | 171,672 | 71,075 |
Cash and cash equivalents b end of period | 35,119 | 81,922 |
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 |
Accrued purchases of property, plant and equipment | 0 | 142 |
Accrued acquisition costs | 3,633 | 0 |
5 3/4% Senior notes due April 15, 2019 | ' | ' |
Financing activities | ' | ' |
Proceeds from issuance of senior notes | 150,000 | 0 |
7% Senior notes due August 15, 2022 | ' | ' |
Financing activities | ' | ' |
Proceeds from issuance of senior notes | $300,000 | $0 |
Basis_of_Presentation_and_Sign
Basis of Presentation and Significant Accounting Policies (Notes) | 9 Months Ended | |||||||||||||||
Sep. 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, Colorado (under the Village Homes brand), Washington and Oregon (each under the Polygon Northwest Homes brand). | ||||||||||||||||
Basis of Presentation | ||||||||||||||||
The preparation of the Company’s financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of the assets and liabilities as of September 30, 2014 and December 31, 2013 and revenues and expenses for the three and nine month periods ended September 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, business combinations, 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 3). The accounting policies of the joint ventures are substantially the same as those of the Company. All significant intercompany accounts and transactions have been eliminated in consolidation. | ||||||||||||||||
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 either approximately one to one and one quarter percent of the sales price of its homes, or a set amount per home closed depending on operating division, 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 nine months ended September 30, 2014 and 2013, are as follows (in thousands): | ||||||||||||||||
Nine | Nine | |||||||||||||||
Months | Months | |||||||||||||||
Ended | Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Warranty liability, beginning of period | $ | 14,935 | $ | 14,317 | ||||||||||||
Warranty provision during period | 5,343 | 3,131 | ||||||||||||||
Warranty payments during period | (4,997 | ) | (3,900 | ) | ||||||||||||
Warranty charges related to pre-existing warranties during period | 341 | 354 | ||||||||||||||
Warranty charges related to construction services projects | 591 | 267 | ||||||||||||||
Warranty liability, end of period | $ | 16,213 | $ | 14,169 | ||||||||||||
The Company began accruing for warranty costs for units closed in the Washington and Oregon segments in conjunction with their acquisition (see Note 2) at a set rate per home, however the Company did not assume any warranty liability for units closed prior to the Acquisition date. | ||||||||||||||||
Interest incurred under the Company’s debt obligations, as more fully discussed in Note 6, 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 September 30, 2014 and 2013 are as follows (in thousands): | ||||||||||||||||
Three | Three | Nine | Nine | |||||||||||||
Months | Months | Months | Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Interest incurred | $ | 17,504 | $ | 7,511 | $ | 38,818 | $ | 22,511 | ||||||||
Less: Interest capitalized | 17,504 | 7,460 | 38,818 | 19,909 | ||||||||||||
Interest expense, net of amounts capitalized | $ | — | $ | 51 | $ | — | $ | 2,602 | ||||||||
Cash paid for interest | $ | 2,925 | $ | 283 | $ | 22,596 | $ | 14,854 | ||||||||
Construction Services | ||||||||||||||||
The Company accounts for construction management agreements using the Percentage of Completion Method in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("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 12. | ||||||||||||||||
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 September 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 seven reporting segments, as discussed in Note 4, and we perform an annual goodwill impairment analysis during the fourth quarter of each fiscal year. | ||||||||||||||||
Intangible Assets | ||||||||||||||||
Recorded intangible assets primarily relate to brand names of acquired entities, construction management contracts, homes in backlog, and joint venture management fee contracts recorded in conjunction with FASB ASC Topic 852, Reorganizations ("ASC 852"), or FASB ASC Topic 805, Business Combinations ("ASC 805"). All Intangible assets with the exception of those relating to brand names were valued based on expected cash flows related to home closings, and the asset is amortized on a per unit basis, as homes under the contracts close. Our brand name intangible assets are deemed to have an indefinite useful life. | ||||||||||||||||
Income (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. | ||||||||||||||||
Impact of Recent Accounting Pronouncements | ||||||||||||||||
In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which clarifies existing accounting literature relating to how and when revenue is recognized by an entity. ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets and supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. In doing so, an entity will need to exercise a greater degree of judgment and make more estimates than under the current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price, and allocating the transaction price to each separate performance obligation. ASU 2014-09 also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts. ASU 2014-09 is effective for public companies for interim and annual reporting periods beginning after December 15, 2016, and is to be applied either retrospectively or using the cumulative effect transition method, with early adoption not permitted. The Company has not yet selected a transition method, and is currently evaluating the impact the adoption of ASU 2014-09 will have on its condensed consolidated financial statements and related disclosures. |
Acquisition_of_Polygon_Northwe
Acquisition of Polygon Northwest Homes (Notes) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||||
Acquisition of Polygon Northwest Homes | ' | ||||||||||||||||
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 William Lyon Homes, Inc., a California corporation and wholly-owned subsidiary of Parent ("California Lyon"), PNW Parent, PNW Home Builders North, L.L.C., PNW Home Builders South, L.L.C. and Crescent Ventures, L.L.C. Prior to such completion, California Lyon assigned its interests in the Purchase Agreement to Polygon WLH LLC, a newly formed Delaware limited liability company and wholly-owned subsidiary of California Lyon (“Polygon WLH”). Pursuant to the Purchase Agreement, Polygon WLH acquired, for cash, all of the membership interests of the underlying limited liability companies and certain service companies and other assets that comprised the residential homebuilding operations of PNW Parent (such operations being referred herein as "Polygon Northwest Homes") and which conducts business as Polygon Northwest Company (“Polygon”), for an aggregate cash purchase price of $520.0 million, an additional approximately $28.0 million at closing pursuant to initial working capital adjustments, plus an additional $4.3 million of consideration, a portion of which remains subject to final 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. | |||||||||||||||||
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. | |||||||||||||||||
As a result of the Acquisition, the entities comprising the business of Polygon Northwest Homes became wholly-owned direct or indirect subsidiaries of the Company, and its results are included in our condensed consolidated financial statements and related disclosures from the date of the Acquisition. For the period from August 12, 2014 through September 30, 2014, operating revenue and income before provision for income taxes from Polygon operations, were $38.9 million and $4.0 million, respectively. | |||||||||||||||||
The Acquisition was accounted for as a business combination in accordance with ASC 805. Under ASC 805, the Company recorded the acquired assets and assumed liabilities of Polygon Northwest Homes at their estimated fair values, with the excess allocated to Goodwill, as shown below. Goodwill represents the value the Company expects to achieve through the operational synergies and the expansion of the Company into new markets. The Company estimates that the entire $48.9 million of goodwill resulting from the Acquisition will be tax deductible. Goodwill will be allocated to the Washington and Oregon operating segments (see Note 4). A reconciliation of the consideration transferred as of the acquisition date is as follows: | |||||||||||||||||
Purchase consideration | $ | 552,252 | |||||||||||||||
Net proceeds received from Polygon inventory involved in land banking transactions | (59,834 | ) | |||||||||||||||
$ | 492,418 | ||||||||||||||||
As of September 30, 2014 the Company had not completed its final estimate of the fair value of the net assets of Polygon Northwest Homes, due to the Acquisition's close proximity to quarter end. As such, the estimates used as of September 30, 2014 are subject to change. The following table summarizes the preliminary amounts for acquired assets and liabilities recorded at their fair values as of the acquisition date (in thousands): | |||||||||||||||||
Assets Acquired | |||||||||||||||||
Real estate inventories | $ | 439,628 | |||||||||||||||
Goodwill | 48,919 | ||||||||||||||||
Intangible asset - brand name | 5,900 | ||||||||||||||||
Joint venture in mortgage business | 2,000 | ||||||||||||||||
Other | 545 | ||||||||||||||||
Total Assets | $ | 496,992 | |||||||||||||||
Liabilities Assumed | |||||||||||||||||
Accounts payable | $ | 603 | |||||||||||||||
Accrued expenses | 3,971 | ||||||||||||||||
Total liabilities | 4,574 | ||||||||||||||||
Net assets acquired | $ | 492,418 | |||||||||||||||
The Company determined the fair value of real estate inventories on a project level basis using a combination of discounted cash flow models, and market comparable land transactions, where available. These methods are significantly impacted by estimates relating to i) expected selling prices, ii) anticipated sales pace, iii) cost to complete estimates, iv) highest and best use of projects prior to acquisition, and v) comparable land values. These estimates were developed and used at the individual project level, and may vary significantly between projects. | |||||||||||||||||
The acquisition date fair value of the Intangible asset relating to brand name was estimated using comparable values ascribed in other recent market transactions, as well as taking into account Polygon Northwest Homes market position as a leading builder in the Seattle, WA, and Portland, OR, residential markets. This asset is deemed to have an indefinite life. Additionally, the Company acquired a non-controlling interest in a joint venture mortgage business. The fair value of this investment was estimated using the discounted cash flow method, which was significantly impacted by estimated cash flow streams and income of the joint venture. | |||||||||||||||||
Other assets, accounts payable, and accrued expenses were generally stated at historical value due to the short-term nature of these liabilities. | |||||||||||||||||
The Company recorded $5.8 million in acquisition related costs for the three and nine months ended September 30, 2014, respectively, which are included in the Condensed Consolidated Statement of Operations in Transaction expenses. Such costs were expensed as incurred in accordance with ASC 805. There were no acquisition related costs incurred during 2013. | |||||||||||||||||
Supplemental Pro Forma Information | |||||||||||||||||
The following table presents unaudited pro forma amounts for the three and nine months ended September 30, 2014 and September 30, 2013 as if the Acquisition had been completed as of January 1, 2013 (amounts in thousands, except per share data): | |||||||||||||||||
Three | Three | Nine | Nine | ||||||||||||||
Months | Months | Months | Months | ||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Operating revenues | $ | 241,726 | $ | 222,475 | $ | 688,543 | $ | 563,365 | |||||||||
Net income available to common stockholders | $ | 6,441 | $ | 8,582 | $ | 31,631 | $ | 17,299 | |||||||||
Income per share - basic | $ | 0.21 | $ | 0.28 | $ | 1.01 | $ | 0.77 | |||||||||
Income per share - diluted | $ | 0.2 | $ | 0.27 | $ | 0.97 | $ | 0.74 | |||||||||
The unaudited pro forma operating results have been determined after adjusting the unaudited operating results of Polygon Northwest Homes to reflect the estimated purchase accounting and other acquisition adjustments including interest expense associated with the debt used to fund a portion of the acquisition. The unaudited pro forma results presented above do not reflect any cost savings, operating synergies or revenue enhancements that the combined company may achieve as a result of the Acquisition, the costs to combine the operations of the Company and Polygon Northwest Homes or the costs necessary to achieve any of the foregoing cost savings, operating synergies or revenue enhancements. As such, the unaudited pro forma amounts are for comparative purposes only and may not necessarily reflect the results of operations which would have resulted had the acquisition been completed at the beginning of the applicable period or indicative of the results that will be attained in the future. |
Variable_Interest_Entities_and
Variable Interest Entities and Noncontrolling Interests (Notes) | 9 Months Ended |
Sep. 30, 2014 | |
Noncontrolling Interest [Abstract] | ' |
Variable Interest Entities and Noncontrolling Interests | ' |
Variable Interest Entities and Noncontrolling Interests | |
During the nine months ended September 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 allocation 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 September 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 September 30, 2014, and December 31, 2013. | |
As of September 30, 2014, the assets of the consolidated VIEs totaled $74.5 million, of which $8.7 million was cash and cash equivalents and $62.8 million was real estate inventories. The liabilities of the consolidated VIEs totaled $44.6 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 cash equivalents 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) | 9 Months Ended | |||||||||||||||
Sep. 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 ASC 280, prior to the acquisition of Polygon Northwest Homes (see Note 2), the Company's homebuilding operations had been grouped into five operating 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 Fort Collins and Granby, Colorado markets. During the three months ended September 30, 2014, the Company added two additional operating segments as a result of the Polygon Northwest Homes Acquisition: Oregon, with operations in the Portland, Oregon metropolitan area; and Washington, consisting of operations in the Seattle, Washington metropolitan area. | ||||||||||||||||
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 | Nine | Nine | |||||||||||||
Months | Months | Months | Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Operating revenue: | ||||||||||||||||
Southern California | $ | 76,628 | $ | 49,681 | $ | 307,090 | $ | 105,231 | ||||||||
Northern California | 29,073 | 27,790 | 48,683 | 56,115 | ||||||||||||
Arizona | 16,750 | 31,253 | 46,459 | 86,431 | ||||||||||||
Nevada | 36,540 | 23,920 | 72,081 | 56,421 | ||||||||||||
Colorado | 9,005 | 18,186 | 23,443 | 58,923 | ||||||||||||
Washington | 19,994 | — | 19,994 | — | ||||||||||||
Oregon | 18,908 | — | 18,908 | — | ||||||||||||
Total operating revenue | $ | 206,898 | $ | 150,830 | $ | 536,658 | $ | 363,121 | ||||||||
Three | Three | Nine | Nine | |||||||||||||
Months | Months | Months | Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Income before provision for income taxes | ||||||||||||||||
Southern California | $ | 9,901 | $ | 10,027 | $ | 46,923 | $ | 15,453 | ||||||||
Northern California | 3,395 | 4,706 | 10,204 | 8,740 | ||||||||||||
Arizona | 1,590 | 4,224 | 5,262 | 9,032 | ||||||||||||
Nevada | 2,709 | 3,355 | 5,738 | 5,881 | ||||||||||||
Colorado | (386 | ) | 209 | (1,498 | ) | 1,654 | ||||||||||
Washington | 2,256 | — | 2,256 | — | ||||||||||||
Oregon | 1,701 | — | 1,701 | — | ||||||||||||
Corporate | (11,545 | ) | (5,485 | ) | (24,091 | ) | (17,107 | ) | ||||||||
Income before provision for income taxes | $ | 9,621 | $ | 17,036 | $ | 46,495 | $ | 23,653 | ||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||
Homebuilding assets: | ||||||||||||||||
Southern California | $ | 340,317 | $ | 275,975 | ||||||||||||
Northern California | 228,156 | 143,693 | ||||||||||||||
Arizona | 175,950 | 157,892 | ||||||||||||||
Nevada | 130,758 | 85,695 | ||||||||||||||
Colorado | 126,959 | 60,233 | ||||||||||||||
Washington | 281,675 | — | ||||||||||||||
Oregon | 204,349 | — | ||||||||||||||
Corporate (1) | 165,485 | 286,923 | ||||||||||||||
Total homebuilding assets | $ | 1,653,649 | $ | 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) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Real Estate [Abstract] | ' | |||||||
Real Estate Inventories | ' | |||||||
Real Estate Inventories | ||||||||
Real estate inventories consist of the following (in thousands): | ||||||||
30-Sep-14 | 31-Dec-13 | |||||||
Real estate inventories owned: | ||||||||
Land deposits | $ | 70,961 | $ | 46,632 | ||||
Land and land under development | 963,964 | 458,437 | ||||||
Homes completed and under construction | 291,083 | 144,736 | ||||||
Model homes | 52,424 | 21,985 | ||||||
Total | $ | 1,378,432 | $ | 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_Secured_and_Unsec
Senior Notes, Secured, and Unsecured Indebtedness (Notes) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||
Senior Notes and Secured Indebtedness | ' | |||||||||||||||||||||||
Senior Notes, Secured, and Unsecured Indebtedness | ||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||||||||||
Notes payable: | ||||||||||||||||||||||||
Construction notes payable | $ | 37,540 | $ | 24,198 | ||||||||||||||||||||
Seller financing | 3,724 | 13,862 | ||||||||||||||||||||||
Revolving lines of credit | — | — | ||||||||||||||||||||||
Total notes payable | $ | 41,264 | $ | 38,060 | ||||||||||||||||||||
Senior unsecured facility | $ | 120,000 | $ | — | ||||||||||||||||||||
Senior notes: | ||||||||||||||||||||||||
5 3/4% Senior Notes due April 15, 2019 | $ | 150,000 | $ | — | ||||||||||||||||||||
8 1/2% Senior Notes due November 15, 2020 | 430,443 | 431,295 | ||||||||||||||||||||||
7% Senior Notes due August 15, 2022 | $ | 300,000 | $ | — | ||||||||||||||||||||
Total senior notes | $ | 880,443 | $ | 431,295 | ||||||||||||||||||||
Total notes payable and senior notes | $ | 1,041,707 | $ | 469,355 | ||||||||||||||||||||
As of September 30, 2014, the maturities of the Notes payable, Senior unsecured facility, 7% Senior Notes, 5 3/4% Senior Notes, and 8 1/2% Senior Notes are as follows (in thousands): | ||||||||||||||||||||||||
Year Ending December 31, | ||||||||||||||||||||||||
2014 | $ | 126 | ||||||||||||||||||||||
2015 | 123,598 | |||||||||||||||||||||||
2016 | 37,540 | |||||||||||||||||||||||
2017 | — | |||||||||||||||||||||||
2018 | — | |||||||||||||||||||||||
Thereafter | 875,000 | |||||||||||||||||||||||
$ | 1,036,264 | |||||||||||||||||||||||
Maturities above exclude premium of $5.4 million as of September 30, 2014. | ||||||||||||||||||||||||
Senior Notes | ||||||||||||||||||||||||
5 3/4% Senior Notes Due 2019 | ||||||||||||||||||||||||
On March 31, 2014, California Lyon completed its private placement with registration rights of 5.75% Senior Notes due 2019 (the "5.75% Notes"), in an aggregate principal amount of $150 million. The 5.75% Notes were issued at 100% of their aggregate principal amount. | ||||||||||||||||||||||||
As of September 30, 2014, the outstanding amount of the 5.75% Notes was $150 million. The 5.75% Notes bear interest at a rate of 5.75% per annum, payable semiannually in arrears on April 15 and October 15, and mature on April 15, 2019. The 5.75% Notes are unconditionally guaranteed on a joint and several unsecured basis by Parent and 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, and $300 million in aggregate principal amount of 7.00% Notes, as described above. 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 September 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 September 30, 2014 and December 31, 2013, the outstanding amount of the 8.5% Notes was $430 million, and $431 million, respectively. 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 unconditionally guaranteed on a joint and several unsecured basis by Parent and by certain of its existing and future direct and indirect wholly-owned 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 and the 7.00% Notes as described above. 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 September 30, 2014. | ||||||||||||||||||||||||
7% Senior Notes Due 2022 | ||||||||||||||||||||||||
On August 11, 2014, WLH PNW Finance Corp. (“Escrow Issuer”), completed its private placement with registration rights of 7.00% Senior Notes due 2022 (the “7.00% 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, and California Lyon assumed the obligations of the Escrow Issuer under the 2022 Notes and the related indenture by operation of law (the “Escrow Merger”). Following the Escrow Merger, California Lyon is the obligor under the 2022 Notes. | ||||||||||||||||||||||||
As of September 30, 2014, the outstanding amount of the notes was $300 million. The notes bear interest at a rate of 7.00% per annum, payable semiannually in arrears on February 15 and August 15, and mature on August 15, 2022. The 7.00% Notes are unconditionally guaranteed on a joint and several unsecured basis by Parent and certain of its existing and future direct and indirect wholly-owned subsidiaries. The 7.00% Notes and the related guarantees are California Lyon’s and the guarantors’ unsecured senior obligations and rank equally in right of payment with all of California Lyon’s and the guarantors’ existing and future unsecured senior debt, including California Lyon’s $150 million in aggregate principal amount of 5.75% Senior Notes due 2019 and $425 million in aggregate principal amount of 8.5% Senior Notes due 2020, as described below. The 7.00% Notes rank senior in right of payment to all of California Lyon’s and the guarantors’ future subordinated debt. The 7.00% Notes and the guarantees are and will be effectively junior to California Lyon’s and the guarantors’ existing and future secured debt to the extent of the value of the collateral securing such debt. | ||||||||||||||||||||||||
On or after August 15, 2017, California Lyon may redeem all or a portion of the 7.00% Notes upon not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed as percentages of the principal amount) set forth below plus accrued and unpaid interest to the applicable redemption date, if redeemed during the period beginning on each of the dates indicated below: | ||||||||||||||||||||||||
Year | Percentage | |||||||||||||||||||||||
15-Aug-17 | 103.5 | % | ||||||||||||||||||||||
15-Aug-18 | 101.75 | % | ||||||||||||||||||||||
August 15, 2019 and thereafter | 100 | % | ||||||||||||||||||||||
Prior to August 15, 2017, the 7.00% Notes may be redeemed in whole or in part at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, and accrued and unpaid interest to, the redemption date. | ||||||||||||||||||||||||
In addition, any time prior to August 15, 2017, California Lyon may, at its option on one or more occasions, redeem the 7.00% Notes in an aggregate principal amount not to exceed 35% of the aggregate principal amount of the 7.00% Notes issued prior to such date at a redemption price (expressed as a percentage of principal amount) of 107.00%, plus accrued and unpaid interest to the redemption date, with an amount equal to the net cash proceeds from one or more equity offerings by Parent. | ||||||||||||||||||||||||
The indenture governing the 7.00% 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 September 30, 2014. | ||||||||||||||||||||||||
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 bears 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, which at September 30, 2014 was 7.25%. 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 Revolver, as described below, and the Senior Unsecured Facility ranks pari passu with California Lyon’s existing and future unsecured indebtedness. | ||||||||||||||||||||||||
In addition to other covenants, the Senior Unsecured Loan Facility places limits on the Parent, California Lyon and its subsidiaries’ ability to incur liens, incur additional indebtedness, make loans and investments, engage in mergers and acquisitions, engage in asset sales, declare dividends or redeem or repurchase capital stock, alter the business conducted by the Parent, California Lyon and its subsidiaries, or transact with affiliates. The Senior Unsecured Loan Facility contains customary events of default, subject to cure periods in certain circumstances, that would permit the lenders of the Senior Unsecured Loan to accelerate payment, including: nonpayment of principal, interest and fees or other amounts; violation of covenants; cross default to certain other indebtedness; unpaid judgments; and certain bankruptcy and other insolvency events. The Company was in compliance with all such covenants as of September 30, 2014. | ||||||||||||||||||||||||
Notes Payable | ||||||||||||||||||||||||
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 September 30, 2014 (in millions): | ||||||||||||||||||||||||
Issuance Date | Facility Size | Outstanding | Maturity | Current Rate | ||||||||||||||||||||
March, 2014 | $ | 26 | $ | 4.2 | October, 2016 | 3.15 | % | -1 | ||||||||||||||||
December, 2013 | 18.6 | 14.1 | January, 2016 | 4.25 | % | -1 | ||||||||||||||||||
June, 2013 | 28 | 19.2 | June, 2016 | 4 | % | -2 | ||||||||||||||||||
$ | 72.6 | $ | 37.5 | |||||||||||||||||||||
(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 September 30, 2014, the Company had $3.7 million of notes payable outstanding related to two land acquisitions for which seller financing was provided. The first note had a balance of $3.1 million as of September 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 $0.1 million as of September 30, 2014 and maturing in October 2014, and the second having a balance of $0.5 million as of September 30, 2014 and maturing in January 2015. Both notes bear interest at 4% per annum. | ||||||||||||||||||||||||
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. On July 3, 2014, California Lyon and the lender parties thereto entered into an amendment to the Revolver, which 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, among other changes. | ||||||||||||||||||||||||
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 September 30, 2014, the Revolver was undrawn, other than a letter of credit for $4.0 million, reducing the amount available under the Revolver. | ||||||||||||||||||||||||
GUARANTOR AND NON-GUARANTOR FINANCIAL STATEMENTS | ||||||||||||||||||||||||
The following consolidating financial information includes: | ||||||||||||||||||||||||
(1) Consolidating balance sheets as of September 30, 2014 and December 31, 2013; consolidating statements of operations for the three and nine months ended September 30, 2014 and 2013; and consolidating statements of cash flows for the nine month periods ended September 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 September 30, 2014 and December 31, 2013, and for the three and nine month periods ended September 30, 2014 and 2013. | ||||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
As of September 30, 2014 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Unconsolidated | ||||||||||||||||||||||||
Delaware | California | Guarantor | Non-Guarantor | Eliminating | Consolidated | |||||||||||||||||||
Lyon | Lyon | Subsidiaries | Subsidiaries | Entries | Company | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 25,918 | $ | 195 | $ | 9,006 | $ | — | $ | 35,119 | ||||||||||||
Restricted cash | — | 504 | — | — | — | 504 | ||||||||||||||||||
Receivables | — | 16,267 | 367 | 3,206 | — | 19,840 | ||||||||||||||||||
Escrow proceeds receivable | — | 13,064 | 1,506 | 36 | — | 14,606 | ||||||||||||||||||
Real estate inventories | ||||||||||||||||||||||||
Owned | — | 748,429 | 553,977 | 76,026 | — | 1,378,432 | ||||||||||||||||||
Deferred loan costs, net | — | 25,975 | — | — | — | 25,975 | ||||||||||||||||||
Goodwill | — | 14,209 | 48,919 | — | — | 63,128 | ||||||||||||||||||
Intangibles, net | — | 1,477 | 5,900 | — | — | 7,377 | ||||||||||||||||||
Deferred income taxes, net | — | 91,055 | — | — | — | 91,055 | ||||||||||||||||||
Other assets, net | — | 14,943 | 2,301 | 369 | — | 17,613 | ||||||||||||||||||
Investments in subsidiaries | 456,296 | (35,547 | ) | (599,212 | ) | — | 178,463 | — | ||||||||||||||||
Intercompany receivables | — | — | 231,084 | — | (231,084 | ) | — | |||||||||||||||||
Total assets | $ | 456,296 | $ | 916,294 | $ | 245,037 | $ | 88,643 | $ | (52,621 | ) | $ | 1,653,649 | |||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||
Accounts payable | $ | — | $ | 35,965 | $ | 5,363 | $ | 6,570 | $ | — | $ | 47,898 | ||||||||||||
Accrued expenses | — | 88,080 | 5,460 | 102 | — | 93,642 | ||||||||||||||||||
Notes payable | — | 3,077 | 647 | 37,540 | — | 41,264 | ||||||||||||||||||
Senior unsecured facility | — | 120,000 | — | — | — | 120,000 | ||||||||||||||||||
5 3/4% Senior Notes | — | 150,000 | — | — | — | 150,000 | ||||||||||||||||||
8 1/2% Senior Notes | — | 430,443 | — | — | — | 430,443 | ||||||||||||||||||
7% Senior Notes | — | 300,000 | — | — | — | 300,000 | ||||||||||||||||||
Intercompany payables | — | 165,211 | — | 65,873 | (231,084 | ) | — | |||||||||||||||||
Total liabilities | — | 1,292,776 | 11,470 | 110,085 | (231,084 | ) | 1,183,247 | |||||||||||||||||
Equity | ||||||||||||||||||||||||
William Lyon Homes stockholders’ equity | 456,296 | (376,482 | ) | 233,567 | (35,547 | ) | 178,463 | 456,297 | ||||||||||||||||
Noncontrolling interests | — | — | — | 14,105 | — | 14,105 | ||||||||||||||||||
Total liabilities and equity | $ | 456,296 | $ | 916,294 | $ | 245,037 | $ | 88,643 | $ | (52,621 | ) | $ | 1,653,649 | |||||||||||
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 | — | 11,429 | 5 | 5,025 | — | 16,459 | ||||||||||||||||||
Escrow proceeds receivable | — | 4,313 | 67 | — | — | 4,380 | ||||||||||||||||||
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 September 30, 2014 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Unconsolidated | ||||||||||||||||||||||||
Delaware | California | Guarantor | Non-Guarantor | Eliminating | Consolidated | |||||||||||||||||||
Lyon | Lyon | Subsidiaries | Subsidiaries | Entries | Company | |||||||||||||||||||
Operating revenue | ||||||||||||||||||||||||
Sales | $ | — | $ | 113,716 | $ | 64,656 | $ | 17,933 | $ | — | $ | 196,305 | ||||||||||||
Construction services | — | 10,593 | — | — | — | 10,593 | ||||||||||||||||||
Management fees | — | 455 | — | — | (455 | ) | — | |||||||||||||||||
— | 124,764 | 64,656 | 17,933 | (455 | ) | 206,898 | ||||||||||||||||||
Operating costs | ||||||||||||||||||||||||
Cost of sales | — | (88,778 | ) | (54,828 | ) | (14,623 | ) | 455 | (157,774 | ) | ||||||||||||||
Construction services | — | (8,262 | ) | — | — | — | (8,262 | ) | ||||||||||||||||
Sales and marketing | — | (7,636 | ) | (3,856 | ) | (984 | ) | — | (12,476 | ) | ||||||||||||||
General and administrative | — | (11,532 | ) | (1,194 | ) | — | — | (12,726 | ) | |||||||||||||||
Transaction expenses | — | (5,768 | ) | — | — | — | (5,768 | ) | ||||||||||||||||
Amortization of intangible assets | — | (174 | ) | — | — | — | (174 | ) | ||||||||||||||||
Other | — | (620 | ) | 164 | 2 | — | (454 | ) | ||||||||||||||||
— | (122,770 | ) | (59,714 | ) | (15,605 | ) | 455 | (197,634 | ) | |||||||||||||||
Income from subsidiaries | 5,638 | 907 | — | — | (6,545 | ) | — | |||||||||||||||||
Operating income | 5,638 | 2,901 | 4,942 | 2,328 | (6,545 | ) | 9,264 | |||||||||||||||||
Other income (expense), net | — | 685 | (4 | ) | (324 | ) | — | 357 | ||||||||||||||||
Income before provision for income taxes | 5,638 | 3,586 | 4,938 | 2,004 | (6,545 | ) | 9,621 | |||||||||||||||||
Provision for income taxes | — | (1,999 | ) | — | — | — | (1,999 | ) | ||||||||||||||||
Net income | 5,638 | 1,587 | 4,938 | 2,004 | (6,545 | ) | 7,622 | |||||||||||||||||
Less: Net income attributable to noncontrolling interests | — | 483 | — | (2,467 | ) | — | (1,984 | ) | ||||||||||||||||
Net income (loss) attributable to William Lyon Homes | 5,638 | 2,070 | 4,938 | (463 | ) | (6,545 | ) | 5,638 | ||||||||||||||||
Net income (loss) available to common stockholders | $ | 5,638 | $ | 2,070 | $ | 4,938 | $ | (463 | ) | $ | (6,545 | ) | $ | 5,638 | ||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Unconsolidated | ||||||||||||||||||||||||
Delaware | California | Guarantor | Non-Guarantor | Eliminating | Consolidated | |||||||||||||||||||
Lyon | Lyon | Subsidiaries | Subsidiaries | Entries | Company | |||||||||||||||||||
Operating revenue | ||||||||||||||||||||||||
Sales | $ | — | $ | 76,178 | $ | 48,487 | $ | 16,687 | $ | — | $ | 141,352 | ||||||||||||
Construction services | — | 9,478 | — | — | — | 9,478 | ||||||||||||||||||
Management fees | — | 456 | — | — | (456 | ) | — | |||||||||||||||||
— | 86,112 | 48,487 | 16,687 | (456 | ) | 150,830 | ||||||||||||||||||
Operating costs | ||||||||||||||||||||||||
Cost of sales | — | (55,968 | ) | (40,519 | ) | (11,926 | ) | 456 | (107,957 | ) | ||||||||||||||
Construction services | — | (8,135 | ) | — | — | — | (8,135 | ) | ||||||||||||||||
Sales and marketing | — | (4,108 | ) | (2,256 | ) | (315 | ) | — | (6,679 | ) | ||||||||||||||
General and administrative | — | (9,473 | ) | (726 | ) | (1 | ) | — | (10,200 | ) | ||||||||||||||
Amortization of intangible assets | — | (191 | ) | — | — | — | (191 | ) | ||||||||||||||||
Other | — | (695 | ) | — | — | — | (695 | ) | ||||||||||||||||
— | (78,570 | ) | (43,501 | ) | (12,242 | ) | 456 | (133,857 | ) | |||||||||||||||
Income from subsidiaries | 12,716 | 5,804 | — | — | (18,520 | ) | — | |||||||||||||||||
Operating income | 12,716 | 13,346 | 4,986 | 4,445 | (18,520 | ) | 16,973 | |||||||||||||||||
Interest expense, net of amounts capitalized | — | (51 | ) | — | — | — | (51 | ) | ||||||||||||||||
Other income (expense), net | — | 423 | (9 | ) | (300 | ) | — | 114 | ||||||||||||||||
Income before provision for income taxes | 12,716 | 13,718 | 4,977 | 4,145 | (18,520 | ) | 17,036 | |||||||||||||||||
Provision for income taxes | — | (6,356 | ) | — | — | — | (6,356 | ) | ||||||||||||||||
Net (loss) income | 12,716 | 7,362 | 4,977 | 4,145 | (18,520 | ) | 10,680 | |||||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (3,118 | ) | — | (3,118 | ) | ||||||||||||||||
Net (loss) income attributable to William Lyon Homes | 12,716 | 7,362 | 4,977 | 1,027 | (18,520 | ) | 7,562 | |||||||||||||||||
Preferred stock dividends | — | — | — | — | — | — | ||||||||||||||||||
Net (loss) income available to common stockholders | $ | 12,716 | $ | 7,362 | $ | 4,977 | $ | 1,027 | $ | (18,520 | ) | $ | 7,562 | |||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Unconsolidated | ||||||||||||||||||||||||
Delaware | California | Guarantor | Non-Guarantor | Eliminating | Consolidated | |||||||||||||||||||
Lyon | Lyon | Subsidiaries | Subsidiaries | Entries | Company | |||||||||||||||||||
Operating revenue | ||||||||||||||||||||||||
Sales | $ | — | $ | 343,449 | $ | 107,093 | $ | 55,930 | $ | — | $ | 506,472 | ||||||||||||
Construction services | — | 30,186 | — | — | — | 30,186 | ||||||||||||||||||
Management fees | — | 1,672 | — | — | (1,672 | ) | — | |||||||||||||||||
— | 375,307 | 107,093 | 55,930 | (1,672 | ) | 536,658 | ||||||||||||||||||
Operating costs | ||||||||||||||||||||||||
Cost of sales | — | (262,360 | ) | (89,351 | ) | (43,573 | ) | 1,672 | (393,612 | ) | ||||||||||||||
Construction services | — | (24,735 | ) | — | — | — | (24,735 | ) | ||||||||||||||||
Sales and marketing | — | (18,526 | ) | (6,671 | ) | (2,761 | ) | — | (27,958 | ) | ||||||||||||||
General and administrative | — | (33,030 | ) | (2,849 | ) | (2 | ) | — | (35,881 | ) | ||||||||||||||
Transaction expenses | — | (5,768 | ) | — | — | — | (5,768 | ) | ||||||||||||||||
Amortization of intangible assets | — | (1,294 | ) | — | — | — | (1,294 | ) | ||||||||||||||||
Other | — | (1,917 | ) | 182 | (10 | ) | — | (1,745 | ) | |||||||||||||||
— | (347,630 | ) | (98,689 | ) | (46,346 | ) | 1,672 | (490,993 | ) | |||||||||||||||
Income from subsidiaries | 26,620 | 7,730 | — | — | (34,350 | ) | — | |||||||||||||||||
Operating income | 26,620 | 35,407 | 8,404 | 9,584 | (34,350 | ) | 45,665 | |||||||||||||||||
Interest expense, net of amounts capitalized | — | — | — | — | — | — | ||||||||||||||||||
Other income (expense), net | — | 1,550 | (15 | ) | (705 | ) | — | 830 | ||||||||||||||||
Income before provision for income taxes | 26,620 | 36,957 | 8,389 | 8,879 | (34,350 | ) | 46,495 | |||||||||||||||||
Provision for income taxes | — | (12,779 | ) | — | — | — | (12,779 | ) | ||||||||||||||||
Net income | 26,620 | 24,178 | 8,389 | 8,879 | (34,350 | ) | 33,716 | |||||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (7,096 | ) | — | (7,096 | ) | ||||||||||||||||
Net income attributable to William Lyon Homes | 26,620 | 24,178 | 8,389 | 1,783 | (34,350 | ) | 26,620 | |||||||||||||||||
Net income available to common stockholders | $ | 26,620 | $ | 24,178 | $ | 8,389 | $ | 1,783 | $ | (34,350 | ) | $ | 26,620 | |||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Unconsolidated | ||||||||||||||||||||||||
Delaware | California | Guarantor | Non-Guarantor | Eliminating | Consolidated | |||||||||||||||||||
Lyon | Lyon | Subsidiaries | Subsidiaries | Entries | Company | |||||||||||||||||||
Operating revenue | ||||||||||||||||||||||||
Sales | $ | — | $ | 173,032 | $ | 142,105 | $ | 26,545 | $ | — | $ | 341,682 | ||||||||||||
Construction services | — | 21,439 | — | — | — | 21,439 | ||||||||||||||||||
Management fees | — | (727 | ) | — | — | 727 | — | |||||||||||||||||
— | 193,744 | 142,105 | 26,545 | 727 | 363,121 | |||||||||||||||||||
Operating costs | ||||||||||||||||||||||||
Cost of sales | — | (132,270 | ) | (119,051 | ) | (18,722 | ) | (727 | ) | (270,770 | ) | |||||||||||||
Construction services | — | (17,472 | ) | — | — | — | (17,472 | ) | ||||||||||||||||
Sales and marketing | — | (9,826 | ) | (6,867 | ) | (789 | ) | — | (17,482 | ) | ||||||||||||||
General and administrative | — | (26,162 | ) | (1,835 | ) | (19 | ) | — | (28,016 | ) | ||||||||||||||
Amortization of intangible assets | — | (1,173 | ) | — | — | — | (1,173 | ) | ||||||||||||||||
Other | — | (1,744 | ) | (2 | ) | — | — | (1,746 | ) | |||||||||||||||
— | (188,647 | ) | (127,755 | ) | (19,530 | ) | (727 | ) | (336,659 | ) | ||||||||||||||
Income from subsidiaries | 17,562 | 13,800 | — | — | (31,362 | ) | — | |||||||||||||||||
Operating income | 17,562 | 18,897 | 14,350 | 7,015 | (31,362 | ) | 26,462 | |||||||||||||||||
Interest expense, net of amounts capitalized | — | (2,476 | ) | (126 | ) | — | — | (2,602 | ) | |||||||||||||||
Other income (expense), net | — | 1,184 | (20 | ) | (907 | ) | — | 257 | ||||||||||||||||
Income before reorganization items and provision for income taxes | 17,562 | 17,605 | 14,204 | 6,108 | (31,362 | ) | 24,117 | |||||||||||||||||
Reorganization items, net | — | (464 | ) | — | — | — | (464 | ) | ||||||||||||||||
Income before provision for income taxes | 17,562 | 17,141 | 14,204 | 6,108 | (31,362 | ) | 23,653 | |||||||||||||||||
Provision for income taxes | — | (6,366 | ) | — | — | — | (6,366 | ) | ||||||||||||||||
Net income | 17,562 | 10,775 | 14,204 | 6,108 | (31,362 | ) | 17,287 | |||||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (4,879 | ) | — | (4,879 | ) | ||||||||||||||||
Net income attributable to William Lyon Homes | 17,562 | 10,775 | 14,204 | 1,229 | (31,362 | ) | 12,408 | |||||||||||||||||
Preferred stock dividends | (1,528 | ) | — | — | — | — | (1,528 | ) | ||||||||||||||||
Net income available to common stockholders | $ | 16,034 | $ | 10,775 | $ | 14,204 | $ | 1,229 | $ | (31,362 | ) | $ | 10,880 | |||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Nine Months Ended September 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 | $ | (1,496 | ) | $ | 358,000 | $ | (536,794 | ) | $ | (2,396 | ) | $ | 1,496 | $ | (181,190 | ) | ||||||||
Investing activities | ||||||||||||||||||||||||
Distributions from unconsolidated joint ventures | — | 146 | — | — | — | 146 | ||||||||||||||||||
Cash paid for acquisitions, net | — | (437,599 | ) | (51,186 | ) | — | — | (488,785 | ) | |||||||||||||||
Purchases of property and equipment | — | (1,447 | ) | (288 | ) | 8 | — | (1,727 | ) | |||||||||||||||
Investments in subsidiaries | — | 56,889 | 595,575 | — | (652,464 | ) | — | |||||||||||||||||
Net cash provided by (used in) investing activities | — | (382,011 | ) | 544,101 | 8 | (652,464 | ) | (490,366 | ) | |||||||||||||||
Financing activities | ||||||||||||||||||||||||
Proceeds from borrowings on notes payable | — | 1,113 | (1,114 | ) | 57,948 | — | 57,947 | |||||||||||||||||
Principal payments on notes payable | — | (12,730 | ) | — | (44,425 | ) | — | (57,155 | ) | |||||||||||||||
Proceeds from issuance of 5 3/4% notes | — | 150,000 | — | — | — | 150,000 | ||||||||||||||||||
Proceeds from issuance of 7% senior notes | — | 300,000 | — | — | — | 300,000 | ||||||||||||||||||
Borrowings on senior unsecured facility | — | 120,000 | — | — | — | 120,000 | ||||||||||||||||||
Payment of deferred loan costs | — | (18,909 | ) | — | — | — | (18,909 | ) | ||||||||||||||||
Proceeds from exercise of stock options | — | 285 | — | — | — | 285 | ||||||||||||||||||
Shares remitted to Company for employee tax withholding | — | (1,454 | ) | — | — | — | (1,454 | ) | ||||||||||||||||
Offering costs related to secondary sale of common stock | — | (105 | ) | — | — | — | (105 | ) | ||||||||||||||||
Noncontrolling interests contributions | — | — | — | 9,641 | — | 9,641 | ||||||||||||||||||
Noncontrolling interests distributions | — | — | — | (25,247 | ) | — | (25,247 | ) | ||||||||||||||||
Advances to affiliates | — | — | 2 | (47,305 | ) | 47,303 | — | |||||||||||||||||
Intercompany receivables/payables | 1,496 | (654,787 | ) | (6,028 | ) | 55,654 | 603,665 | — | ||||||||||||||||
Net cash provided by (used in)financing activities | 1,496 | (116,587 | ) | (7,140 | ) | 6,266 | 650,968 | 535,003 | ||||||||||||||||
Net (decrease) increase in cash and cash equivalents | — | (140,598 | ) | 167 | 3,878 | — | (136,553 | ) | ||||||||||||||||
Cash and cash equivalents at beginning of period | — | 166,516 | 28 | 5,128 | — | 171,672 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 25,918 | $ | 195 | $ | 9,006 | $ | — | $ | 35,119 | ||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Nine Months Ended September 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 | $ | — | $ | (142,959 | ) | $ | 12,221 | $ | (34,181 | ) | $ | — | $ | (164,919 | ) | |||||||||
Investing activities | ||||||||||||||||||||||||
Purchases of property and equipment | — | (3,299 | ) | (57 | ) | (3 | ) | — | (3,359 | ) | ||||||||||||||
Investments in subsidiaries | — | 4,804 | — | — | (4,804 | ) | — | |||||||||||||||||
Net cash (used in) provided by investing activities | — | 1,505 | (57 | ) | (3 | ) | (4,804 | ) | (3,359 | ) | ||||||||||||||
Financing activities | ||||||||||||||||||||||||
Proceeds on borrowings on notes payable | — | 16,790 | 1,762 | 32,892 | — | 51,444 | ||||||||||||||||||
Principal payments on notes payable | — | (26,360 | ) | — | (19,099 | ) | — | (45,459 | ) | |||||||||||||||
Payment of deferred loan costs | — | (1,792 | ) | — | — | — | (1,792 | ) | ||||||||||||||||
Proceeds from issuance of common stock | — | 179,438 | — | — | — | 179,438 | ||||||||||||||||||
Offering costs related to issuance of common stock | — | (15,655 | ) | — | — | — | (15,655 | ) | ||||||||||||||||
Payment of preferred stock dividends | — | (2,550 | ) | — | — | — | (2,550 | ) | ||||||||||||||||
Noncontrolling interests contributions | — | — | — | 35,399 | — | 35,399 | ||||||||||||||||||
Noncontrolling interests distributions | — | — | — | (21,700 | ) | — | (21,700 | ) | ||||||||||||||||
Intercompany receivables/payables | — | 183 | (12,902 | ) | 923 | 11,796 | — | |||||||||||||||||
Advances to affiliates | — | — | (776 | ) | 7,768 | (6,992 | ) | — | ||||||||||||||||
Net cash provided by (used in) financing activities | — | 150,054 | (11,916 | ) | 36,183 | 4,804 | 179,125 | |||||||||||||||||
Net increase (decrease) in cash and cash equivalents | — | 8,600 | 248 | 1,999 | — | 10,847 | ||||||||||||||||||
Cash and cash equivalents at beginning of period | — | 69,376 | 65 | 1,634 | — | 71,075 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 77,976 | $ | 313 | $ | 3,633 | $ | — | $ | 81,922 | ||||||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments (Notes) | 9 Months Ended | |||||||||||||||
Sep. 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 September 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. | |||||||||||||||
• | Senior unsecured facility—The carrying amount is a reasonable estimate of fair value of the Senior unsecured facility as the facility was issued during the current period and the rate has not changed since issuance. | |||||||||||||||
• | 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. | |||||||||||||||
• | 7% Senior Notes due August 15, 2022 —The 7% Senior Notes were issued during the current quarter, 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): | ||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Amount | Value | Amount | Value | |||||||||||||
Financial liabilities: | ||||||||||||||||
Notes payable | $ | 41,264 | $ | 41,264 | $ | 38,060 | $ | 38,060 | ||||||||
Senior unsecured facility | $ | 120,000 | $ | 120,000 | $ | — | $ | — | ||||||||
5 3/4% Senior Notes due 2019 | $ | 150,000 | $ | 148,125 | $ | — | $ | — | ||||||||
8 1/2% Senior Notes due 2020 | $ | 430,443 | $ | 460,063 | $ | 431,295 | $ | 466,877 | ||||||||
7% Senior Notes due 2022 | $ | 300,000 | $ | 306,750 | $ | — | $ | — | ||||||||
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 Senior unsecured facility, and Level 2 to measure the fair value of its Senior 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) | (57,156 | ) | ||||||||||||||
Borrowings of principal (2) | 60,360 | |||||||||||||||
Increase in value during the period | — | |||||||||||||||
Fair value at September 30, 2014 | $ | 41,264 | ||||||||||||||
-1 | Represents the actual amount of principal repaid | |||||||||||||||
-2 | Represents the actual amount of principal borrowed |
Related_Party_Transactions_Not
Related Party Transactions (Notes) | 9 Months Ended |
Sep. 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 nine months ended September 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) | 9 Months Ended |
Sep. 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 20.8% and 27.5%, and 37.3% and 26.9% for the three and nine months ended September 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 September 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 September 30, 2014, the Company had no remaining federal net operating loss carryforwards and $77.6 million remaining state net operating loss carryforwards. State net operating loss carryforwards begin to expire in 2014. In addition, as of September 30, 2014, the Company had unused federal and state built-in losses of $71.4 million and $38.4 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 September 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 2011 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) | 9 Months Ended | |||||||||||||||
Sep. 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 nine months ended September 30, 2014 and 2013 were calculated as follows (in thousands, except number of shares and per share amounts): | ||||||||||||||||
Three | Three | Nine | Nine | |||||||||||||
Months | Months | Months | Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Basic weighted average number of common shares outstanding | 31,232,655 | 30,975,160 | 31,184,101 | 22,569,810 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Stock options, unvested common shares, and warrants | 1,528,091 | 920,654 | 1,541,063 | 877,144 | ||||||||||||
Diluted average shares outstanding | 32,760,746 | 31,895,814 | 32,725,164 | 23,446,954 | ||||||||||||
Net income available to common stockholders | $ | 5,638 | $ | 7,562 | $ | 26,620 | $ | 10,880 | ||||||||
Basic income per common share | $ | 0.18 | $ | 0.24 | $ | 0.85 | $ | 0.48 | ||||||||
Dilutive income per common share | $ | 0.17 | $ | 0.24 | $ | 0.81 | $ | 0.46 | ||||||||
Stock_Based_Compensation_Notes
Stock Based Compensation (Notes) | 9 Months Ended |
Sep. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Stock Based Compensation | ' |
Note 11—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 nine months ended September 30, 2014, the Company granted 31,013 and 79,575 shares of restricted stock, respectively, and 24,812 and 312,551 shares of performance based restricted stock. On the Consolidated Balance Sheets and Statement of Equity, the Company considers unvested shares of restricted stock to be issued, but not outstanding. | |
Performance-Based Restricted Stock Awards | |
With respect to all but one of the performance based restricted stock awards granted during the three and nine months ended September 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 March 1st of each of 2015, 2016 and 2017, subject to each grantee’s continued service through each vesting date. Based on the assessment as of September 30, 2014, management determined that the currently available data was not sufficient to support that achievement of performance targets was probable, 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 nine months ended September 30, 2014, representing 31,013 and 57,147 shares of restricted stock, respectively, for all but two of such awards 50% of the shares of restricted stock underlying such awards will vest on each of the first and second anniversaries of the grant date, and for the remaining two awards 100% of the shares of restricted stock underlying such awards will vest on the second anniversary of the grant date, in each case subject to each grantee’s continued service through each vesting date. With respect to the restricted stock awards granted to certain non-employee directors of Parent during the three and nine months ended September 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 nine months ended September 30, 2014 and 2013 was $0.9 million and $2.8 million, and $0.9 million and $2.2 million, respectively. |
Commitments_and_Contingencies_
Commitments and Contingencies (Notes) | 9 Months Ended | |||
Sep. 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 September 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 $0.8 million and $2.1 million, and $0.4 million and $1.3 million in the three and nine months ended September 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 September 30, 2014 (in thousands). | ||||
Year Ending December 31 | ||||
2014 | $ | 577 | ||
2015 | 1,648 | |||
2016 | 1,233 | |||
2017 | 910 | |||
2018 | 897 | |||
Thereafter | 2,832 | |||
Total | $ | 8,097 | ||
As of September 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 $92.2 million at September 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 September 30, 2014, the Company had $133.5 million of project commitments relating to the construction of projects. | ||||
See Note 6 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 September 30, 2014, the Company has made non-refundable deposits of $69.5 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 $463.9 million as of September 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. As discussed above, with exception of the arrangement discussed below, these amounts are included in the total remaining purchase price listed above. | ||||
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. |
Subsequent_Events_Notes
Subsequent Events (Notes) | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
No events have occurred subsequent to September 30, 2014, that would require recognition or disclosure in the Company’s financial statements. |
Basis_of_Presentation_and_Sign1
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 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, Colorado (under the Village Homes brand), Washington and Oregon (each under the Polygon Northwest Homes brand). | |
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 September 30, 2014 and December 31, 2013 and revenues and expenses for the three and nine month periods ended September 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, business combinations, 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 3). The accounting policies of the joint ventures are substantially the same as those of the Company. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
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 either approximately one to one and one quarter percent of the sales price of its homes, or a set amount per home closed depending on operating division, 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 Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("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 12. | |
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 September 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 seven reporting segments, as discussed in Note 4, 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 brand names of acquired entities, construction management contracts, homes in backlog, and joint venture management fee contracts recorded in conjunction with FASB ASC Topic 852, Reorganizations ("ASC 852"), or FASB ASC Topic 805, Business Combinations ("ASC 805"). All Intangible assets with the exception of those relating to brand names were valued based on expected cash flows related to home closings, and the asset is amortized on a per unit basis, as homes under the contracts close. Our brand name intangible assets are deemed to have an indefinite useful life. | |
Income (loss) per common share | ' |
Income (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) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||
Summary of Changes in Warranty Liability | ' | |||||||||||||||
Changes in the Company’s warranty liability for the nine months ended September 30, 2014 and 2013, are as follows (in thousands): | ||||||||||||||||
Nine | Nine | |||||||||||||||
Months | Months | |||||||||||||||
Ended | Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Warranty liability, beginning of period | $ | 14,935 | $ | 14,317 | ||||||||||||
Warranty provision during period | 5,343 | 3,131 | ||||||||||||||
Warranty payments during period | (4,997 | ) | (3,900 | ) | ||||||||||||
Warranty charges related to pre-existing warranties during period | 341 | 354 | ||||||||||||||
Warranty charges related to construction services projects | 591 | 267 | ||||||||||||||
Warranty liability, end of period | $ | 16,213 | $ | 14,169 | ||||||||||||
Schedule of Interest Incurred under Company's Debt Obligations | ' | |||||||||||||||
Interest activity for the three months ended September 30, 2014 and 2013 are as follows (in thousands): | ||||||||||||||||
Three | Three | Nine | Nine | |||||||||||||
Months | Months | Months | Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Interest incurred | $ | 17,504 | $ | 7,511 | $ | 38,818 | $ | 22,511 | ||||||||
Less: Interest capitalized | 17,504 | 7,460 | 38,818 | 19,909 | ||||||||||||
Interest expense, net of amounts capitalized | $ | — | $ | 51 | $ | — | $ | 2,602 | ||||||||
Cash paid for interest | $ | 2,925 | $ | 283 | $ | 22,596 | $ | 14,854 | ||||||||
Acquisition_of_Polygon_Northwe1
Acquisition of Polygon Northwest Homes (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||||
Reconciliation of Consideration Transferred as of Acquisition Date | ' | ||||||||||||||||
A reconciliation of the consideration transferred as of the acquisition date is as follows: | |||||||||||||||||
Purchase consideration | $ | 552,252 | |||||||||||||||
Net proceeds received from Polygon inventory involved in land banking transactions | (59,834 | ) | |||||||||||||||
$ | 492,418 | ||||||||||||||||
Summary of Acquired Assets and Liabilities Recorded at Fair Value | ' | ||||||||||||||||
The following table summarizes the preliminary amounts for acquired assets and liabilities recorded at their fair values as of the acquisition date (in thousands): | |||||||||||||||||
Assets Acquired | |||||||||||||||||
Real estate inventories | $ | 439,628 | |||||||||||||||
Goodwill | 48,919 | ||||||||||||||||
Intangible asset - brand name | 5,900 | ||||||||||||||||
Joint venture in mortgage business | 2,000 | ||||||||||||||||
Other | 545 | ||||||||||||||||
Total Assets | $ | 496,992 | |||||||||||||||
Liabilities Assumed | |||||||||||||||||
Accounts payable | $ | 603 | |||||||||||||||
Accrued expenses | 3,971 | ||||||||||||||||
Total liabilities | 4,574 | ||||||||||||||||
Net assets acquired | $ | 492,418 | |||||||||||||||
Summary of Pro Forma Amounts of Polygon Northwest Homes Acquisition | ' | ||||||||||||||||
The following table presents unaudited pro forma amounts for the three and nine months ended September 30, 2014 and September 30, 2013 as if the Acquisition had been completed as of January 1, 2013 (amounts in thousands, except per share data): | |||||||||||||||||
Three | Three | Nine | Nine | ||||||||||||||
Months | Months | Months | Months | ||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Operating revenues | $ | 241,726 | $ | 222,475 | $ | 688,543 | $ | 563,365 | |||||||||
Net income available to common stockholders | $ | 6,441 | $ | 8,582 | $ | 31,631 | $ | 17,299 | |||||||||
Income per share - basic | $ | 0.21 | $ | 0.28 | $ | 1.01 | $ | 0.77 | |||||||||
Income per share - diluted | $ | 0.2 | $ | 0.27 | $ | 0.97 | $ | 0.74 | |||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||
Sep. 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 | Nine | Nine | |||||||||||||
Months | Months | Months | Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Operating revenue: | ||||||||||||||||
Southern California | $ | 76,628 | $ | 49,681 | $ | 307,090 | $ | 105,231 | ||||||||
Northern California | 29,073 | 27,790 | 48,683 | 56,115 | ||||||||||||
Arizona | 16,750 | 31,253 | 46,459 | 86,431 | ||||||||||||
Nevada | 36,540 | 23,920 | 72,081 | 56,421 | ||||||||||||
Colorado | 9,005 | 18,186 | 23,443 | 58,923 | ||||||||||||
Washington | 19,994 | — | 19,994 | — | ||||||||||||
Oregon | 18,908 | — | 18,908 | — | ||||||||||||
Total operating revenue | $ | 206,898 | $ | 150,830 | $ | 536,658 | $ | 363,121 | ||||||||
Three | Three | Nine | Nine | |||||||||||||
Months | Months | Months | Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Income before provision for income taxes | ||||||||||||||||
Southern California | $ | 9,901 | $ | 10,027 | $ | 46,923 | $ | 15,453 | ||||||||
Northern California | 3,395 | 4,706 | 10,204 | 8,740 | ||||||||||||
Arizona | 1,590 | 4,224 | 5,262 | 9,032 | ||||||||||||
Nevada | 2,709 | 3,355 | 5,738 | 5,881 | ||||||||||||
Colorado | (386 | ) | 209 | (1,498 | ) | 1,654 | ||||||||||
Washington | 2,256 | — | 2,256 | — | ||||||||||||
Oregon | 1,701 | — | 1,701 | — | ||||||||||||
Corporate | (11,545 | ) | (5,485 | ) | (24,091 | ) | (17,107 | ) | ||||||||
Income before provision for income taxes | $ | 9,621 | $ | 17,036 | $ | 46,495 | $ | 23,653 | ||||||||
Segment Schedule of Homebuilding Assets | ' | |||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||
Homebuilding assets: | ||||||||||||||||
Southern California | $ | 340,317 | $ | 275,975 | ||||||||||||
Northern California | 228,156 | 143,693 | ||||||||||||||
Arizona | 175,950 | 157,892 | ||||||||||||||
Nevada | 130,758 | 85,695 | ||||||||||||||
Colorado | 126,959 | 60,233 | ||||||||||||||
Washington | 281,675 | — | ||||||||||||||
Oregon | 204,349 | — | ||||||||||||||
Corporate (1) | 165,485 | 286,923 | ||||||||||||||
Total homebuilding assets | $ | 1,653,649 | $ | 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) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Real Estate [Abstract] | ' | |||||||
Schedule of Real Estate Inventories | ' | |||||||
Real estate inventories consist of the following (in thousands): | ||||||||
30-Sep-14 | 31-Dec-13 | |||||||
Real estate inventories owned: | ||||||||
Land deposits | $ | 70,961 | $ | 46,632 | ||||
Land and land under development | 963,964 | 458,437 | ||||||
Homes completed and under construction | 291,083 | 144,736 | ||||||
Model homes | 52,424 | 21,985 | ||||||
Total | $ | 1,378,432 | $ | 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_Secured_and_Unsec1
Senior Notes, Secured, and Unsecured Indebtedness (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||
Details of Notes Payable and Senior Notes | ' | |||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||||||||||
Notes payable: | ||||||||||||||||||||||||
Construction notes payable | $ | 37,540 | $ | 24,198 | ||||||||||||||||||||
Seller financing | 3,724 | 13,862 | ||||||||||||||||||||||
Revolving lines of credit | — | — | ||||||||||||||||||||||
Total notes payable | $ | 41,264 | $ | 38,060 | ||||||||||||||||||||
Senior unsecured facility | $ | 120,000 | $ | — | ||||||||||||||||||||
Senior notes: | ||||||||||||||||||||||||
5 3/4% Senior Notes due April 15, 2019 | $ | 150,000 | $ | — | ||||||||||||||||||||
8 1/2% Senior Notes due November 15, 2020 | 430,443 | 431,295 | ||||||||||||||||||||||
7% Senior Notes due August 15, 2022 | $ | 300,000 | $ | — | ||||||||||||||||||||
Total senior notes | $ | 880,443 | $ | 431,295 | ||||||||||||||||||||
Total notes payable and senior notes | $ | 1,041,707 | $ | 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 September 30, 2014 (in millions): | ||||||||||||||||||||||||
Issuance Date | Facility Size | Outstanding | Maturity | Current Rate | ||||||||||||||||||||
March, 2014 | $ | 26 | $ | 4.2 | October, 2016 | 3.15 | % | -1 | ||||||||||||||||
December, 2013 | 18.6 | 14.1 | January, 2016 | 4.25 | % | -1 | ||||||||||||||||||
June, 2013 | 28 | 19.2 | June, 2016 | 4 | % | -2 | ||||||||||||||||||
$ | 72.6 | $ | 37.5 | |||||||||||||||||||||
(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 September 30, 2014, the maturities of the Notes payable, Senior unsecured facility, 7% Senior Notes, 5 3/4% Senior Notes, and 8 1/2% Senior Notes are as follows (in thousands): | ||||||||||||||||||||||||
Year Ending December 31, | ||||||||||||||||||||||||
2014 | $ | 126 | ||||||||||||||||||||||
2015 | 123,598 | |||||||||||||||||||||||
2016 | 37,540 | |||||||||||||||||||||||
2017 | — | |||||||||||||||||||||||
2018 | — | |||||||||||||||||||||||
Thereafter | 875,000 | |||||||||||||||||||||||
$ | 1,036,264 | |||||||||||||||||||||||
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 | % | ||||||||||||||||||||||
On or after August 15, 2017, California Lyon may redeem all or a portion of the 7.00% Notes upon not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed as percentages of the principal amount) set forth below plus accrued and unpaid interest to the applicable redemption date, if redeemed during the period beginning on each of the dates indicated below: | ||||||||||||||||||||||||
Year | Percentage | |||||||||||||||||||||||
15-Aug-17 | 103.5 | % | ||||||||||||||||||||||
15-Aug-18 | 101.75 | % | ||||||||||||||||||||||
August 15, 2019 and thereafter | 100 | % | ||||||||||||||||||||||
Condensed Consolidating Balance Sheet | ' | |||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
As of September 30, 2014 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Unconsolidated | ||||||||||||||||||||||||
Delaware | California | Guarantor | Non-Guarantor | Eliminating | Consolidated | |||||||||||||||||||
Lyon | Lyon | Subsidiaries | Subsidiaries | Entries | Company | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 25,918 | $ | 195 | $ | 9,006 | $ | — | $ | 35,119 | ||||||||||||
Restricted cash | — | 504 | — | — | — | 504 | ||||||||||||||||||
Receivables | — | 16,267 | 367 | 3,206 | — | 19,840 | ||||||||||||||||||
Escrow proceeds receivable | — | 13,064 | 1,506 | 36 | — | 14,606 | ||||||||||||||||||
Real estate inventories | ||||||||||||||||||||||||
Owned | — | 748,429 | 553,977 | 76,026 | — | 1,378,432 | ||||||||||||||||||
Deferred loan costs, net | — | 25,975 | — | — | — | 25,975 | ||||||||||||||||||
Goodwill | — | 14,209 | 48,919 | — | — | 63,128 | ||||||||||||||||||
Intangibles, net | — | 1,477 | 5,900 | — | — | 7,377 | ||||||||||||||||||
Deferred income taxes, net | — | 91,055 | — | — | — | 91,055 | ||||||||||||||||||
Other assets, net | — | 14,943 | 2,301 | 369 | — | 17,613 | ||||||||||||||||||
Investments in subsidiaries | 456,296 | (35,547 | ) | (599,212 | ) | — | 178,463 | — | ||||||||||||||||
Intercompany receivables | — | — | 231,084 | — | (231,084 | ) | — | |||||||||||||||||
Total assets | $ | 456,296 | $ | 916,294 | $ | 245,037 | $ | 88,643 | $ | (52,621 | ) | $ | 1,653,649 | |||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||
Accounts payable | $ | — | $ | 35,965 | $ | 5,363 | $ | 6,570 | $ | — | $ | 47,898 | ||||||||||||
Accrued expenses | — | 88,080 | 5,460 | 102 | — | 93,642 | ||||||||||||||||||
Notes payable | — | 3,077 | 647 | 37,540 | — | 41,264 | ||||||||||||||||||
Senior unsecured facility | — | 120,000 | — | — | — | 120,000 | ||||||||||||||||||
5 3/4% Senior Notes | — | 150,000 | — | — | — | 150,000 | ||||||||||||||||||
8 1/2% Senior Notes | — | 430,443 | — | — | — | 430,443 | ||||||||||||||||||
7% Senior Notes | — | 300,000 | — | — | — | 300,000 | ||||||||||||||||||
Intercompany payables | — | 165,211 | — | 65,873 | (231,084 | ) | — | |||||||||||||||||
Total liabilities | — | 1,292,776 | 11,470 | 110,085 | (231,084 | ) | 1,183,247 | |||||||||||||||||
Equity | ||||||||||||||||||||||||
William Lyon Homes stockholders’ equity | 456,296 | (376,482 | ) | 233,567 | (35,547 | ) | 178,463 | 456,297 | ||||||||||||||||
Noncontrolling interests | — | — | — | 14,105 | — | 14,105 | ||||||||||||||||||
Total liabilities and equity | $ | 456,296 | $ | 916,294 | $ | 245,037 | $ | 88,643 | $ | (52,621 | ) | $ | 1,653,649 | |||||||||||
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 | — | 11,429 | 5 | 5,025 | — | 16,459 | ||||||||||||||||||
Escrow proceeds receivable | — | 4,313 | 67 | — | — | 4,380 | ||||||||||||||||||
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 September 30, 2014 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Unconsolidated | ||||||||||||||||||||||||
Delaware | California | Guarantor | Non-Guarantor | Eliminating | Consolidated | |||||||||||||||||||
Lyon | Lyon | Subsidiaries | Subsidiaries | Entries | Company | |||||||||||||||||||
Operating revenue | ||||||||||||||||||||||||
Sales | $ | — | $ | 113,716 | $ | 64,656 | $ | 17,933 | $ | — | $ | 196,305 | ||||||||||||
Construction services | — | 10,593 | — | — | — | 10,593 | ||||||||||||||||||
Management fees | — | 455 | — | — | (455 | ) | — | |||||||||||||||||
— | 124,764 | 64,656 | 17,933 | (455 | ) | 206,898 | ||||||||||||||||||
Operating costs | ||||||||||||||||||||||||
Cost of sales | — | (88,778 | ) | (54,828 | ) | (14,623 | ) | 455 | (157,774 | ) | ||||||||||||||
Construction services | — | (8,262 | ) | — | — | — | (8,262 | ) | ||||||||||||||||
Sales and marketing | — | (7,636 | ) | (3,856 | ) | (984 | ) | — | (12,476 | ) | ||||||||||||||
General and administrative | — | (11,532 | ) | (1,194 | ) | — | — | (12,726 | ) | |||||||||||||||
Transaction expenses | — | (5,768 | ) | — | — | — | (5,768 | ) | ||||||||||||||||
Amortization of intangible assets | — | (174 | ) | — | — | — | (174 | ) | ||||||||||||||||
Other | — | (620 | ) | 164 | 2 | — | (454 | ) | ||||||||||||||||
— | (122,770 | ) | (59,714 | ) | (15,605 | ) | 455 | (197,634 | ) | |||||||||||||||
Income from subsidiaries | 5,638 | 907 | — | — | (6,545 | ) | — | |||||||||||||||||
Operating income | 5,638 | 2,901 | 4,942 | 2,328 | (6,545 | ) | 9,264 | |||||||||||||||||
Other income (expense), net | — | 685 | (4 | ) | (324 | ) | — | 357 | ||||||||||||||||
Income before provision for income taxes | 5,638 | 3,586 | 4,938 | 2,004 | (6,545 | ) | 9,621 | |||||||||||||||||
Provision for income taxes | — | (1,999 | ) | — | — | — | (1,999 | ) | ||||||||||||||||
Net income | 5,638 | 1,587 | 4,938 | 2,004 | (6,545 | ) | 7,622 | |||||||||||||||||
Less: Net income attributable to noncontrolling interests | — | 483 | — | (2,467 | ) | — | (1,984 | ) | ||||||||||||||||
Net income (loss) attributable to William Lyon Homes | 5,638 | 2,070 | 4,938 | (463 | ) | (6,545 | ) | 5,638 | ||||||||||||||||
Net income (loss) available to common stockholders | $ | 5,638 | $ | 2,070 | $ | 4,938 | $ | (463 | ) | $ | (6,545 | ) | $ | 5,638 | ||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Unconsolidated | ||||||||||||||||||||||||
Delaware | California | Guarantor | Non-Guarantor | Eliminating | Consolidated | |||||||||||||||||||
Lyon | Lyon | Subsidiaries | Subsidiaries | Entries | Company | |||||||||||||||||||
Operating revenue | ||||||||||||||||||||||||
Sales | $ | — | $ | 76,178 | $ | 48,487 | $ | 16,687 | $ | — | $ | 141,352 | ||||||||||||
Construction services | — | 9,478 | — | — | — | 9,478 | ||||||||||||||||||
Management fees | — | 456 | — | — | (456 | ) | — | |||||||||||||||||
— | 86,112 | 48,487 | 16,687 | (456 | ) | 150,830 | ||||||||||||||||||
Operating costs | ||||||||||||||||||||||||
Cost of sales | — | (55,968 | ) | (40,519 | ) | (11,926 | ) | 456 | (107,957 | ) | ||||||||||||||
Construction services | — | (8,135 | ) | — | — | — | (8,135 | ) | ||||||||||||||||
Sales and marketing | — | (4,108 | ) | (2,256 | ) | (315 | ) | — | (6,679 | ) | ||||||||||||||
General and administrative | — | (9,473 | ) | (726 | ) | (1 | ) | — | (10,200 | ) | ||||||||||||||
Amortization of intangible assets | — | (191 | ) | — | — | — | (191 | ) | ||||||||||||||||
Other | — | (695 | ) | — | — | — | (695 | ) | ||||||||||||||||
— | (78,570 | ) | (43,501 | ) | (12,242 | ) | 456 | (133,857 | ) | |||||||||||||||
Income from subsidiaries | 12,716 | 5,804 | — | — | (18,520 | ) | — | |||||||||||||||||
Operating income | 12,716 | 13,346 | 4,986 | 4,445 | (18,520 | ) | 16,973 | |||||||||||||||||
Interest expense, net of amounts capitalized | — | (51 | ) | — | — | — | (51 | ) | ||||||||||||||||
Other income (expense), net | — | 423 | (9 | ) | (300 | ) | — | 114 | ||||||||||||||||
Income before provision for income taxes | 12,716 | 13,718 | 4,977 | 4,145 | (18,520 | ) | 17,036 | |||||||||||||||||
Provision for income taxes | — | (6,356 | ) | — | — | — | (6,356 | ) | ||||||||||||||||
Net (loss) income | 12,716 | 7,362 | 4,977 | 4,145 | (18,520 | ) | 10,680 | |||||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (3,118 | ) | — | (3,118 | ) | ||||||||||||||||
Net (loss) income attributable to William Lyon Homes | 12,716 | 7,362 | 4,977 | 1,027 | (18,520 | ) | 7,562 | |||||||||||||||||
Preferred stock dividends | — | — | — | — | — | — | ||||||||||||||||||
Net (loss) income available to common stockholders | $ | 12,716 | $ | 7,362 | $ | 4,977 | $ | 1,027 | $ | (18,520 | ) | $ | 7,562 | |||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Unconsolidated | ||||||||||||||||||||||||
Delaware | California | Guarantor | Non-Guarantor | Eliminating | Consolidated | |||||||||||||||||||
Lyon | Lyon | Subsidiaries | Subsidiaries | Entries | Company | |||||||||||||||||||
Operating revenue | ||||||||||||||||||||||||
Sales | $ | — | $ | 343,449 | $ | 107,093 | $ | 55,930 | $ | — | $ | 506,472 | ||||||||||||
Construction services | — | 30,186 | — | — | — | 30,186 | ||||||||||||||||||
Management fees | — | 1,672 | — | — | (1,672 | ) | — | |||||||||||||||||
— | 375,307 | 107,093 | 55,930 | (1,672 | ) | 536,658 | ||||||||||||||||||
Operating costs | ||||||||||||||||||||||||
Cost of sales | — | (262,360 | ) | (89,351 | ) | (43,573 | ) | 1,672 | (393,612 | ) | ||||||||||||||
Construction services | — | (24,735 | ) | — | — | — | (24,735 | ) | ||||||||||||||||
Sales and marketing | — | (18,526 | ) | (6,671 | ) | (2,761 | ) | — | (27,958 | ) | ||||||||||||||
General and administrative | — | (33,030 | ) | (2,849 | ) | (2 | ) | — | (35,881 | ) | ||||||||||||||
Transaction expenses | — | (5,768 | ) | — | — | — | (5,768 | ) | ||||||||||||||||
Amortization of intangible assets | — | (1,294 | ) | — | — | — | (1,294 | ) | ||||||||||||||||
Other | — | (1,917 | ) | 182 | (10 | ) | — | (1,745 | ) | |||||||||||||||
— | (347,630 | ) | (98,689 | ) | (46,346 | ) | 1,672 | (490,993 | ) | |||||||||||||||
Income from subsidiaries | 26,620 | 7,730 | — | — | (34,350 | ) | — | |||||||||||||||||
Operating income | 26,620 | 35,407 | 8,404 | 9,584 | (34,350 | ) | 45,665 | |||||||||||||||||
Interest expense, net of amounts capitalized | — | — | — | — | — | — | ||||||||||||||||||
Other income (expense), net | — | 1,550 | (15 | ) | (705 | ) | — | 830 | ||||||||||||||||
Income before provision for income taxes | 26,620 | 36,957 | 8,389 | 8,879 | (34,350 | ) | 46,495 | |||||||||||||||||
Provision for income taxes | — | (12,779 | ) | — | — | — | (12,779 | ) | ||||||||||||||||
Net income | 26,620 | 24,178 | 8,389 | 8,879 | (34,350 | ) | 33,716 | |||||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (7,096 | ) | — | (7,096 | ) | ||||||||||||||||
Net income attributable to William Lyon Homes | 26,620 | 24,178 | 8,389 | 1,783 | (34,350 | ) | 26,620 | |||||||||||||||||
Net income available to common stockholders | $ | 26,620 | $ | 24,178 | $ | 8,389 | $ | 1,783 | $ | (34,350 | ) | $ | 26,620 | |||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Unconsolidated | ||||||||||||||||||||||||
Delaware | California | Guarantor | Non-Guarantor | Eliminating | Consolidated | |||||||||||||||||||
Lyon | Lyon | Subsidiaries | Subsidiaries | Entries | Company | |||||||||||||||||||
Operating revenue | ||||||||||||||||||||||||
Sales | $ | — | $ | 173,032 | $ | 142,105 | $ | 26,545 | $ | — | $ | 341,682 | ||||||||||||
Construction services | — | 21,439 | — | — | — | 21,439 | ||||||||||||||||||
Management fees | — | (727 | ) | — | — | 727 | — | |||||||||||||||||
— | 193,744 | 142,105 | 26,545 | 727 | 363,121 | |||||||||||||||||||
Operating costs | ||||||||||||||||||||||||
Cost of sales | — | (132,270 | ) | (119,051 | ) | (18,722 | ) | (727 | ) | (270,770 | ) | |||||||||||||
Construction services | — | (17,472 | ) | — | — | — | (17,472 | ) | ||||||||||||||||
Sales and marketing | — | (9,826 | ) | (6,867 | ) | (789 | ) | — | (17,482 | ) | ||||||||||||||
General and administrative | — | (26,162 | ) | (1,835 | ) | (19 | ) | — | (28,016 | ) | ||||||||||||||
Amortization of intangible assets | — | (1,173 | ) | — | — | — | (1,173 | ) | ||||||||||||||||
Other | — | (1,744 | ) | (2 | ) | — | — | (1,746 | ) | |||||||||||||||
— | (188,647 | ) | (127,755 | ) | (19,530 | ) | (727 | ) | (336,659 | ) | ||||||||||||||
Income from subsidiaries | 17,562 | 13,800 | — | — | (31,362 | ) | — | |||||||||||||||||
Operating income | 17,562 | 18,897 | 14,350 | 7,015 | (31,362 | ) | 26,462 | |||||||||||||||||
Interest expense, net of amounts capitalized | — | (2,476 | ) | (126 | ) | — | — | (2,602 | ) | |||||||||||||||
Other income (expense), net | — | 1,184 | (20 | ) | (907 | ) | — | 257 | ||||||||||||||||
Income before reorganization items and provision for income taxes | 17,562 | 17,605 | 14,204 | 6,108 | (31,362 | ) | 24,117 | |||||||||||||||||
Reorganization items, net | — | (464 | ) | — | — | — | (464 | ) | ||||||||||||||||
Income before provision for income taxes | 17,562 | 17,141 | 14,204 | 6,108 | (31,362 | ) | 23,653 | |||||||||||||||||
Provision for income taxes | — | (6,366 | ) | — | — | — | (6,366 | ) | ||||||||||||||||
Net income | 17,562 | 10,775 | 14,204 | 6,108 | (31,362 | ) | 17,287 | |||||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (4,879 | ) | — | (4,879 | ) | ||||||||||||||||
Net income attributable to William Lyon Homes | 17,562 | 10,775 | 14,204 | 1,229 | (31,362 | ) | 12,408 | |||||||||||||||||
Preferred stock dividends | (1,528 | ) | — | — | — | — | (1,528 | ) | ||||||||||||||||
Net income available to common stockholders | $ | 16,034 | $ | 10,775 | $ | 14,204 | $ | 1,229 | $ | (31,362 | ) | $ | 10,880 | |||||||||||
Condensed Consolidating Statement of Cash Flows | ' | |||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Nine Months Ended September 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 | $ | (1,496 | ) | $ | 358,000 | $ | (536,794 | ) | $ | (2,396 | ) | $ | 1,496 | $ | (181,190 | ) | ||||||||
Investing activities | ||||||||||||||||||||||||
Distributions from unconsolidated joint ventures | — | 146 | — | — | — | 146 | ||||||||||||||||||
Cash paid for acquisitions, net | — | (437,599 | ) | (51,186 | ) | — | — | (488,785 | ) | |||||||||||||||
Purchases of property and equipment | — | (1,447 | ) | (288 | ) | 8 | — | (1,727 | ) | |||||||||||||||
Investments in subsidiaries | — | 56,889 | 595,575 | — | (652,464 | ) | — | |||||||||||||||||
Net cash provided by (used in) investing activities | — | (382,011 | ) | 544,101 | 8 | (652,464 | ) | (490,366 | ) | |||||||||||||||
Financing activities | ||||||||||||||||||||||||
Proceeds from borrowings on notes payable | — | 1,113 | (1,114 | ) | 57,948 | — | 57,947 | |||||||||||||||||
Principal payments on notes payable | — | (12,730 | ) | — | (44,425 | ) | — | (57,155 | ) | |||||||||||||||
Proceeds from issuance of 5 3/4% notes | — | 150,000 | — | — | — | 150,000 | ||||||||||||||||||
Proceeds from issuance of 7% senior notes | — | 300,000 | — | — | — | 300,000 | ||||||||||||||||||
Borrowings on senior unsecured facility | — | 120,000 | — | — | — | 120,000 | ||||||||||||||||||
Payment of deferred loan costs | — | (18,909 | ) | — | — | — | (18,909 | ) | ||||||||||||||||
Proceeds from exercise of stock options | — | 285 | — | — | — | 285 | ||||||||||||||||||
Shares remitted to Company for employee tax withholding | — | (1,454 | ) | — | — | — | (1,454 | ) | ||||||||||||||||
Offering costs related to secondary sale of common stock | — | (105 | ) | — | — | — | (105 | ) | ||||||||||||||||
Noncontrolling interests contributions | — | — | — | 9,641 | — | 9,641 | ||||||||||||||||||
Noncontrolling interests distributions | — | — | — | (25,247 | ) | — | (25,247 | ) | ||||||||||||||||
Advances to affiliates | — | — | 2 | (47,305 | ) | 47,303 | — | |||||||||||||||||
Intercompany receivables/payables | 1,496 | (654,787 | ) | (6,028 | ) | 55,654 | 603,665 | — | ||||||||||||||||
Net cash provided by (used in)financing activities | 1,496 | (116,587 | ) | (7,140 | ) | 6,266 | 650,968 | 535,003 | ||||||||||||||||
Net (decrease) increase in cash and cash equivalents | — | (140,598 | ) | 167 | 3,878 | — | (136,553 | ) | ||||||||||||||||
Cash and cash equivalents at beginning of period | — | 166,516 | 28 | 5,128 | — | 171,672 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 25,918 | $ | 195 | $ | 9,006 | $ | — | $ | 35,119 | ||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Nine Months Ended September 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 | $ | — | $ | (142,959 | ) | $ | 12,221 | $ | (34,181 | ) | $ | — | $ | (164,919 | ) | |||||||||
Investing activities | ||||||||||||||||||||||||
Purchases of property and equipment | — | (3,299 | ) | (57 | ) | (3 | ) | — | (3,359 | ) | ||||||||||||||
Investments in subsidiaries | — | 4,804 | — | — | (4,804 | ) | — | |||||||||||||||||
Net cash (used in) provided by investing activities | — | 1,505 | (57 | ) | (3 | ) | (4,804 | ) | (3,359 | ) | ||||||||||||||
Financing activities | ||||||||||||||||||||||||
Proceeds on borrowings on notes payable | — | 16,790 | 1,762 | 32,892 | — | 51,444 | ||||||||||||||||||
Principal payments on notes payable | — | (26,360 | ) | — | (19,099 | ) | — | (45,459 | ) | |||||||||||||||
Payment of deferred loan costs | — | (1,792 | ) | — | — | — | (1,792 | ) | ||||||||||||||||
Proceeds from issuance of common stock | — | 179,438 | — | — | — | 179,438 | ||||||||||||||||||
Offering costs related to issuance of common stock | — | (15,655 | ) | — | — | — | (15,655 | ) | ||||||||||||||||
Payment of preferred stock dividends | — | (2,550 | ) | — | — | — | (2,550 | ) | ||||||||||||||||
Noncontrolling interests contributions | — | — | — | 35,399 | — | 35,399 | ||||||||||||||||||
Noncontrolling interests distributions | — | — | — | (21,700 | ) | — | (21,700 | ) | ||||||||||||||||
Intercompany receivables/payables | — | 183 | (12,902 | ) | 923 | 11,796 | — | |||||||||||||||||
Advances to affiliates | — | — | (776 | ) | 7,768 | (6,992 | ) | — | ||||||||||||||||
Net cash provided by (used in) financing activities | — | 150,054 | (11,916 | ) | 36,183 | 4,804 | 179,125 | |||||||||||||||||
Net increase (decrease) in cash and cash equivalents | — | 8,600 | 248 | 1,999 | — | 10,847 | ||||||||||||||||||
Cash and cash equivalents at beginning of period | — | 69,376 | 65 | 1,634 | — | 71,075 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 77,976 | $ | 313 | $ | 3,633 | $ | — | $ | 81,922 | ||||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Estimated Fair Values of Financial Instruments | ' | |||||||||||||||
The estimated fair values of financial instruments are as follows (in thousands): | ||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Amount | Value | Amount | Value | |||||||||||||
Financial liabilities: | ||||||||||||||||
Notes payable | $ | 41,264 | $ | 41,264 | $ | 38,060 | $ | 38,060 | ||||||||
Senior unsecured facility | $ | 120,000 | $ | 120,000 | $ | — | $ | — | ||||||||
5 3/4% Senior Notes due 2019 | $ | 150,000 | $ | 148,125 | $ | — | $ | — | ||||||||
8 1/2% Senior Notes due 2020 | $ | 430,443 | $ | 460,063 | $ | 431,295 | $ | 466,877 | ||||||||
7% Senior Notes due 2022 | $ | 300,000 | $ | 306,750 | $ | — | $ | — | ||||||||
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) | (57,156 | ) | ||||||||||||||
Borrowings of principal (2) | 60,360 | |||||||||||||||
Increase in value during the period | — | |||||||||||||||
Fair value at September 30, 2014 | $ | 41,264 | ||||||||||||||
-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) | 9 Months Ended | |||||||||||||||
Sep. 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 nine months ended September 30, 2014 and 2013 were calculated as follows (in thousands, except number of shares and per share amounts): | ||||||||||||||||
Three | Three | Nine | Nine | |||||||||||||
Months | Months | Months | Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Basic weighted average number of common shares outstanding | 31,232,655 | 30,975,160 | 31,184,101 | 22,569,810 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Stock options, unvested common shares, and warrants | 1,528,091 | 920,654 | 1,541,063 | 877,144 | ||||||||||||
Diluted average shares outstanding | 32,760,746 | 31,895,814 | 32,725,164 | 23,446,954 | ||||||||||||
Net income available to common stockholders | $ | 5,638 | $ | 7,562 | $ | 26,620 | $ | 10,880 | ||||||||
Basic income per common share | $ | 0.18 | $ | 0.24 | $ | 0.85 | $ | 0.48 | ||||||||
Dilutive income per common share | $ | 0.17 | $ | 0.24 | $ | 0.81 | $ | 0.46 | ||||||||
Commitments_and_Contingencies_1
Commitments and Contingencies (Tables) | 9 Months Ended | |||
Sep. 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 September 30, 2014 (in thousands). | ||||
Year Ending December 31 | ||||
2014 | $ | 577 | ||
2015 | 1,648 | |||
2016 | 1,233 | |||
2017 | 910 | |||
2018 | 897 | |||
Thereafter | 2,832 | |||
Total | $ | 8,097 | ||
Basis_of_Presentation_and_Sign3
Basis of Presentation and Significant Accounting Policies - Narrative (Details) | 9 Months Ended |
Sep. 30, 2014 | |
segment | |
Significant Accounting Policies [Line Items] | ' |
Real estate warranty period | '1 year |
Number of reportable segments | 7 |
Minimum | ' |
Significant Accounting Policies [Line Items] | ' |
Percentage of home sale price reserved | 1.00% |
Percentage of service revenue | 3.00% |
Maximum | ' |
Significant Accounting Policies [Line Items] | ' |
Percentage of home sale price reserved | 1.25% |
Percentage of service revenue | 5.00% |
Basis_of_Presentation_and_Sign4
Basis of Presentation and Significant Accounting Policies - Summary of Changes in Warranty Liability (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Accounting Policies [Abstract] | ' | ' |
Warranty liability, beginning of period | $14,935 | $14,317 |
Warranty provision during period | 5,343 | 3,131 |
Warranty payments during period | -4,997 | -3,900 |
Warranty charges related to pre-existing warranties during period | 341 | 354 |
Warranty charges related to construction services projects | 591 | 267 |
Warranty liability, end of period | $16,213 | $14,169 |
Basis_of_Presentation_and_Sign5
Basis of Presentation and Significant Accounting Policies - Schedule of Interest Incurred under Company's Debt Obligations (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Accounting Policies [Abstract] | ' | ' | ' | ' |
Interest incurred | $17,504 | $7,511 | $38,818 | $22,511 |
Less: Interest capitalized | 17,504 | 7,460 | 38,818 | 19,909 |
Interest expense, net of amounts capitalized | 0 | 51 | 0 | 2,602 |
Cash paid for interest | $2,925 | $283 | $22,596 | $14,854 |
Acquisition_of_Polygon_Northwe2
Acquisition of Polygon Northwest Homes Acquisition of Polygon Northwest Homes - Narrative (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 2 Months Ended | ||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Aug. 12, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Aug. 11, 2014 | Sep. 30, 2014 | Aug. 11, 2014 | Aug. 12, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
segment | segment | Polygon Northwest Homes | Polygon Northwest Homes | Polygon Northwest Homes | 7% Senior notes due August 15, 2022 | 7% Senior notes due August 15, 2022 | 7% Senior notes due August 15, 2022 | 7% Senior notes due August 15, 2022 | 7% Senior notes due August 15, 2022 | Senior unsecured loan facility | Polygon Northwest Homes | General and administrative expense | |||||
segment | segment | Senior notes | Senior notes | Senior notes | Polygon Northwest Homes | ||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash purchase price | ' | ' | ' | ' | ' | ' | $520,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Working capital adjustments | ' | ' | ' | ' | ' | ' | 28,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional consideration, partly subject to final adjustment | ' | ' | ' | ' | ' | ' | 4,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of operating segments as a result of acquired business | ' | ' | 5 | 1 | ' | ' | 2 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000,000 | 300,000,000 | ' | ' | ' |
Stated interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.00% | 7.00% | ' | 7.00% | 7.00% | ' | ' | ' |
Proceeds from land banking arrangements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' |
Total senior notes | 880,443,000 | ' | ' | 880,443,000 | ' | 431,295,000 | ' | ' | ' | ' | ' | ' | ' | ' | 120,000,000 | ' | ' |
Operation revenues | 206,898,000 | 150,830,000 | ' | 536,658,000 | 363,121,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38,900,000 | ' |
Income before provision for income taxes | 9,621,000 | 17,036,000 | ' | 46,495,000 | 23,653,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' |
Goodwill, expected tax deductible amount | ' | ' | ' | ' | ' | ' | ' | 48,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition related costs | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | $5,800,000 |
Acquisition_of_Polygon_Northwe3
Acquisition of Polygon Northwest Homes - Reconciliation of Consideration Transferred as of Acquisition Date (Details) (Polygon Northwest Homes, USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Aug. 12, 2014 |
Polygon Northwest Homes | ' |
Business Acquisition [Line Items] | ' |
Purchase consideration | $552,252 |
Net proceeds received from Polygon inventory involved in land banking transactions | -59,834 |
Total consideration transferred | $492,418 |
Acquisition_of_Polygon_Northwe4
Acquisition of Polygon Northwest Homes - Summary of Acquired Assets and Liabilities Recorded at Fair Value (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Aug. 12, 2014 |
In Thousands, unless otherwise specified | Polygon Northwest Homes | ||
Assets Acquired | ' | ' | ' |
Real estate inventories | ' | ' | $439,628 |
Goodwill | 63,128 | 14,209 | 48,919 |
Intangible asset - brand name | ' | ' | 5,900 |
Joint venture in mortgage business | ' | ' | 2,000 |
Other | ' | ' | 545 |
Total Assets | ' | ' | 496,992 |
Liabilities Assumed | ' | ' | ' |
Accounts payable | ' | ' | 603 |
Accrued Liabilities | ' | ' | 3,971 |
Total liabilities | ' | ' | 4,574 |
Assets, Net | ' | ' | $492,418 |
Acquisition_of_Polygon_Northwe5
Acquisition of Polygon Northwest Homes - Summary of Pro Forma Amounts of Polygon Northwest Homes Acquisition (Details) (Polygon Northwest Homes, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Polygon Northwest Homes | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Operating revenues | $241,726 | $222,475 | $688,543 | $563,365 |
Net income available to common stockholders | $6,441 | $8,582 | $31,631 | $17,299 |
Income per share - basic (in USD per share) | $0.21 | $0.28 | $1.01 | $0.77 |
Income per share - diluted (in USD per share) | $0.20 | $0.27 | $0.97 | $0.74 |
Variable_Interest_Entities_and1
Variable Interest Entities and Noncontrolling Interests - Narrative (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
joint_venture | joint_venture | |
Joint_Ventures | ||
Noncontrolling Interest [Line Items] | ' | ' |
Number of joint ventures | 1 | ' |
Number of joint ventures formed in prior periods | 3 | 3 |
Consolidated variable interest entities, assets | $74.50 | $66.40 |
Consolidated variable interest entities, liabilities | 44.6 | 27.1 |
Cash | ' | ' |
Noncontrolling Interest [Line Items] | ' | ' |
Consolidated variable interest entities, assets | 8.7 | 4.7 |
Real estate | ' | ' |
Noncontrolling Interest [Line Items] | ' | ' |
Consolidated variable interest entities, assets | $62.80 | $56.80 |
Segment_Information_Narrative_
Segment Information - Narrative (Details) | 6 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended |
Jun. 30, 2014 | Sep. 30, 2014 | Aug. 12, 2014 | Sep. 30, 2014 | |
segment | segment | Polygon Northwest Homes | Polygon Northwest Homes | |
segment | segment | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Number of operating segments | 5 | 1 | 2 | 2 |
Segment_Information_Segment_Fi
Segment Information - Segment Financial Information Relating to Operations (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Operating revenue | ' | ' | ' | ' |
Total operating revenue | $206,898 | $150,830 | $536,658 | $363,121 |
Income before provision for income taxes | ' | ' | ' | ' |
Income before provision for income taxes | 9,621 | 17,036 | 46,495 | 23,653 |
Reportable Geographical Components | Southern California | ' | ' | ' | ' |
Operating revenue | ' | ' | ' | ' |
Total operating revenue | 76,628 | 49,681 | 307,090 | 105,231 |
Income before provision for income taxes | ' | ' | ' | ' |
Income before provision for income taxes | 9,901 | 10,027 | 46,923 | 15,453 |
Reportable Geographical Components | Northern California | ' | ' | ' | ' |
Operating revenue | ' | ' | ' | ' |
Total operating revenue | 29,073 | 27,790 | 48,683 | 56,115 |
Income before provision for income taxes | ' | ' | ' | ' |
Income before provision for income taxes | 3,395 | 4,706 | 10,204 | 8,740 |
Reportable Geographical Components | Arizona | ' | ' | ' | ' |
Operating revenue | ' | ' | ' | ' |
Total operating revenue | 16,750 | 31,253 | 46,459 | 86,431 |
Income before provision for income taxes | ' | ' | ' | ' |
Income before provision for income taxes | 1,590 | 4,224 | 5,262 | 9,032 |
Reportable Geographical Components | Nevada | ' | ' | ' | ' |
Operating revenue | ' | ' | ' | ' |
Total operating revenue | 36,540 | 23,920 | 72,081 | 56,421 |
Income before provision for income taxes | ' | ' | ' | ' |
Income before provision for income taxes | 2,709 | 3,355 | 5,738 | 5,881 |
Reportable Geographical Components | Colorado | ' | ' | ' | ' |
Operating revenue | ' | ' | ' | ' |
Total operating revenue | 9,005 | 18,186 | 23,443 | 58,923 |
Income before provision for income taxes | ' | ' | ' | ' |
Income before provision for income taxes | -386 | 209 | -1,498 | 1,654 |
Reportable Geographical Components | Washington | ' | ' | ' | ' |
Operating revenue | ' | ' | ' | ' |
Total operating revenue | 19,994 | 0 | 19,994 | 0 |
Income before provision for income taxes | ' | ' | ' | ' |
Income before provision for income taxes | 2,256 | 0 | 2,256 | 0 |
Reportable Geographical Components | Oregon | ' | ' | ' | ' |
Operating revenue | ' | ' | ' | ' |
Total operating revenue | 18,908 | 0 | 18,908 | 0 |
Income before provision for income taxes | ' | ' | ' | ' |
Income before provision for income taxes | 1,701 | 0 | 1,701 | 0 |
Reportable Geographical Components | Corporate | ' | ' | ' | ' |
Income before provision for income taxes | ' | ' | ' | ' |
Income before provision for income taxes | ($11,545) | ($5,485) | ($24,091) | ($17,107) |
Segment_Information_Segment_Sc
Segment Information - Segment Schedule of Homebuilding Assets (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Homebuilding assets: | ' | ' | ||
Total homebuilding assets | $1,653,649 | $1,010,411 | ||
Southern California | Reportable Geographical Components | ' | ' | ||
Homebuilding assets: | ' | ' | ||
Total homebuilding assets | 340,317 | 275,975 | ||
Northern California | Reportable Geographical Components | ' | ' | ||
Homebuilding assets: | ' | ' | ||
Total homebuilding assets | 228,156 | 143,693 | ||
Arizona | Reportable Geographical Components | ' | ' | ||
Homebuilding assets: | ' | ' | ||
Total homebuilding assets | 175,950 | 157,892 | ||
Nevada | Reportable Geographical Components | ' | ' | ||
Homebuilding assets: | ' | ' | ||
Total homebuilding assets | 130,758 | 85,695 | ||
Colorado | Reportable Geographical Components | ' | ' | ||
Homebuilding assets: | ' | ' | ||
Total homebuilding assets | 126,959 | 60,233 | ||
Washington | Reportable Geographical Components | ' | ' | ||
Homebuilding assets: | ' | ' | ||
Total homebuilding assets | 281,675 | 0 | ||
Oregon | Reportable Geographical Components | ' | ' | ||
Homebuilding assets: | ' | ' | ||
Total homebuilding assets | 204,349 | 0 | ||
Corporate | Reportable Geographical Components | ' | ' | ||
Homebuilding assets: | ' | ' | ||
Total homebuilding assets | $165,485 | [1] | $286,923 | [1] |
[1] | Comprised primarily of cash and cash equivalents, deferred income taxes, receivables, deferred loan costs, and other assets. |
Real_Estate_Inventories_Summar
Real Estate Inventories - Summary of Real Estate Inventories (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Real estate inventories owned: | ' | ' | ||
Land deposits | $70,961 | $46,632 | ||
Land and land under development | 963,964 | 458,437 | ||
Homes completed and under construction | 291,083 | 144,736 | ||
Model homes | 52,424 | 21,985 | ||
Total | 1,378,432 | 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_Secured_and_Unsec2
Senior Notes, Secured, and Unsecured Indebtedness - Details of Notes Payable and Senior Notes (Details) (USD $) | Sep. 30, 2014 | Aug. 12, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |||
Notes payable: | ' | ' | ' |
Total notes payable | $41,264 | ' | $38,060 |
Senior notes: | ' | ' | ' |
Total senior notes | 880,443 | ' | 431,295 |
Total notes payable and senior notes | 1,041,707 | ' | 469,355 |
Senior unsecured loan facility | ' | ' | ' |
Senior notes: | ' | ' | ' |
Total senior notes | ' | 120,000 | ' |
Total notes payable and senior notes | 120,000 | ' | 0 |
5 3/4% Senior notes due April 15, 2019 | ' | ' | ' |
Senior notes: | ' | ' | ' |
Total notes payable and senior notes | 150,000 | ' | 0 |
8 1/2% Senior notes due November 15, 2020 | ' | ' | ' |
Senior notes: | ' | ' | ' |
Total notes payable and senior notes | 430,443 | ' | 431,295 |
7% Senior notes due August 15, 2022 | ' | ' | ' |
Senior notes: | ' | ' | ' |
Total notes payable and senior notes | 300,000 | ' | 0 |
Construction Loan Payable | ' | ' | ' |
Notes payable: | ' | ' | ' |
Total notes payable | 37,540 | ' | 24,198 |
Seller financing | ' | ' | ' |
Notes payable: | ' | ' | ' |
Total notes payable | 3,724 | ' | 13,862 |
Revolving Credit Facility | ' | ' | ' |
Notes payable: | ' | ' | ' |
Total notes payable | $0 | ' | $0 |
Senior_Notes_Secured_and_Unsec3
Senior Notes, Secured, and Unsecured Indebtedness - Maturities of Notes Payable, Senior Unsecured Facility, 5 3/4% and 8 1/2% Senior Notes (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ' | ' |
Total notes payable and senior notes | $1,041,707,000 | $469,355,000 |
Senior notes | ' | ' |
Debt Instrument [Line Items] | ' | ' |
2014 | 126,000 | ' |
2015 | 123,598,000 | ' |
2016 | 37,540,000 | ' |
2017 | 0 | ' |
2018 | 0 | ' |
Thereafter | 875,000,000 | ' |
Total notes payable and senior notes | 1,036,264,000 | ' |
Unamortized premium | $5,400,000 | ' |
Senior_Notes_Secured_and_Unsec4
Senior Notes, Secured, and Unsecured Indebtedness - Senior Notes - Narrative (Details) (USD $) | 0 Months Ended | 0 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||||||||||||||
Sep. 03, 2009 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Aug. 11, 2014 | Sep. 30, 2014 | Aug. 11, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | Oct. 24, 2013 | Nov. 08, 2012 | Sep. 30, 2014 | Oct. 24, 2013 | Nov. 08, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
7% Senior notes due August 15, 2022 | 7% Senior notes due August 15, 2022 | 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 | Senior notes | Senior notes | Senior notes | Senior notes | California Lyon | California Lyon | California Lyon | California Lyon | California Lyon | California Lyon | Minimum | Minimum | Maximum | Maximum | ||||
7% Senior notes due August 15, 2022 | 7% Senior notes due August 15, 2022 | 7% Senior notes due August 15, 2022 | 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 | 7% Senior notes due August 15, 2022 | 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 | |||||||||||
7% Senior notes due August 15, 2022 | 5 3/4% Senior notes due April 15, 2019 | 7% Senior notes due August 15, 2022 | 5 3/4% Senior notes due April 15, 2019 | 7% Senior notes due August 15, 2022 | 5 3/4% Senior notes due April 15, 2019 | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stated interest rate | ' | ' | ' | 7.00% | 7.00% | 5.75% | 5.75% | 8.50% | 8.50% | ' | ' | 7.00% | 7.00% | ' | 5.75% | 5.75% | ' | ' | 8.50% | ' | 8.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $300,000,000 | $300,000,000 | ' | ' | $150,000,000 | ' | ' | $425,000,000 | $100,000,000 | $325,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | 100.00% | ' | ' | 106.50% | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total senior notes | ' | 1,041,707,000 | 469,355,000 | 300,000,000 | 0 | 150,000,000 | 0 | 430,443,000 | 431,295,000 | 1,036,264,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000,000 | 150,000,000 | 430,443,000 | 431,295,000 | ' | ' | ' | ' | ' | ' |
Maturity date | 30-Sep-16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15-Apr-19 | ' | ' | ' | 15-Nov-20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption notice period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | '30 days | '60 days | '60 days |
Redemption price, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | ' | ' | ' | ' |
California Lyon redemption percentage of aggregate principal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 35.00% | ' | ' | ' | ' |
California Lyon redemption price, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 107.00% | 105.75% | ' | ' | ' | ' |
Net proceeds from issuance of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $104,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior_Notes_Secured_and_Unsec5
Senior Notes, Secured, and Unsecured Indebtedness - Summary of Senior Notes Redemption Prices Percentage for 5 3/4% Senior Notes (Details) (Senior notes, 5 3/4% Senior notes due April 15, 2019) | 9 Months Ended |
Sep. 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_Secured_and_Unsec6
Senior Notes, Secured, and Unsecured Indebtedness Senior Notes, Secured, and Unsecured Indebtedness - Summary of Senior Notes Redemption Prices Percentage for 7% Senior Notes (Details) (Senior notes, 7% Senior notes due August 15, 2022) | 9 Months Ended |
Sep. 30, 2014 | |
Senior notes | 7% Senior notes due August 15, 2022 | ' |
Debt Instrument [Line Items] | ' |
15-Aug-17 | 103.50% |
15-Aug-18 | 101.75% |
August 15, 2019 and thereafter | 100.00% |
Senior_Notes_Secured_and_Unsec7
Senior Notes, Secured, and Unsecured Indebtedness Senior Notes, Secured, and Unsecured Indebtedness - Senior Unsecured Facility - Narrative (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Aug. 12, 2014 | Sep. 30, 2014 | Aug. 12, 2014 |
In Thousands, unless otherwise specified | Senior unsecured loan facility | Senior unsecured loan facility | Senior unsecured loan facility | ||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Total senior notes | $880,443 | $431,295 | ' | ' | $120,000 |
Variable rate basis | ' | ' | 'Eurodollar rate | ' | ' |
Basis spread on variable rate | ' | ' | 1.00% | ' | ' |
Debt Instrument, Interest Rate, Increase (Decrease) | ' | ' | 0.50% | ' | ' |
Derivative, Cap Interest Rate | ' | ' | ' | 7.25% | ' |
Debt Instrument, Maturity Period | ' | ' | '1 year | ' | ' |
Senior_Notes_Secured_and_Unsec8
Senior Notes, Secured, and Unsecured Indebtedness - Maturities of Construction Notes Payable (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 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] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total notes payable | $41,264,000 | $38,060,000 | ' | ' | ' | $72,600,000 | $26,000,000 | $18,600,000 | $28,000,000 | |||
Outstanding | ' | ' | ' | ' | ' | $37,500,000 | $4,200,000 | $14,100,000 | $19,200,000 | |||
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_Secured_and_Unsec9
Senior Notes, Secured, and Unsecured Indebtedness - Notes Payable - Narrative (Details) (USD $) | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||
Sep. 03, 2009 | Sep. 30, 2014 | Dec. 31, 2013 | Jul. 03, 2014 | Jul. 02, 2014 | Aug. 07, 2013 | Sep. 30, 2014 | Jul. 03, 2014 | Aug. 07, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
land_acquisition | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Seller financing | Seller financing | Seller financing | Seller financing | Seller financing | |||
Revolving Credit Facility Agreement | Revolving Credit Facility Agreement | Revolving Credit Facility Agreement | Revolving Credit Facility Agreement | Revolving Credit Facility Agreement | Revolving Credit Facility Agreement | First note | First note | Second note | ||||||
Seller Financing Notes Payable Maturing May 2015 | Seller Financing Notes Payable, Notes Maturing October 2014 | Seller Financing Notes Payable Maturing January 2015 | ||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes payable | ' | $41,264,000 | $38,060,000 | ' | ' | ' | ' | ' | ' | $3,724,000 | $13,862,000 | $3,100,000 | $100,000 | $500,000 |
Number of land acquisitions | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stated interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | ' | 7.00% | ' | ' |
Maturity date | 30-Sep-16 | ' | ' | ' | ' | 5-Aug-16 | ' | ' | ' | ' | ' | 31-May-15 | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' |
Additional capacity under accordion feature | ' | ' | ' | ' | ' | ' | ' | ' | 125,000,000 | ' | ' | ' | ' | ' |
Minimum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | 50,000,000 | ' | ' | ' | ' | ' |
Maximum leverage ratio | ' | ' | ' | 75.00% | 60.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fee percentage | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' |
Outstanding letter of credit | ' | ' | ' | ' | ' | ' | $4,000,000 | ' | ' | ' | ' | ' | ' | ' |
Recovered_Sheet1
Senior Notes, Secured, and Unsecured Indebtedness - Guarantor and Non-Guarantor Financial Statements - Narrative (Details) (Parent) | Sep. 30, 2014 |
Parent | ' |
Debt Instrument [Line Items] | ' |
Ownership percentage | 100.00% |
Recovered_Sheet2
Senior Notes, Secured, and Unsecured Indebtedness - Condensed Consolidating Balance Sheet (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||||
ASSETS | ' | ' | ' | ' | ||
Cash and cash equivalents | $35,119 | $171,672 | $81,922 | $71,075 | ||
Restricted cash | 504 | 854 | ' | ' | ||
Receivables | 19,840 | 16,459 | ' | ' | ||
Escrow proceeds receivable | 14,606 | 4,380 | ' | ' | ||
Real estate inventories | ' | ' | ' | ' | ||
Owned | 1,378,432 | 671,790 | ' | ' | ||
Not owned | 0 | [1] | 12,960 | [1] | ' | ' |
Deferred loan costs, net | 25,975 | 9,575 | ' | ' | ||
Goodwill | 63,128 | 14,209 | ' | ' | ||
Intangibles, net | 7,377 | 2,766 | ' | ' | ||
Deferred income taxes, net | 91,055 | 95,580 | ' | ' | ||
Other assets, net | 17,613 | 10,166 | ' | ' | ||
Investments in subsidiaries | 0 | 0 | ' | ' | ||
Intercompany receivables | 0 | 0 | ' | ' | ||
Total assets | 1,653,649 | 1,010,411 | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ' | ' | ||
Accounts payable | 47,898 | 17,099 | ' | ' | ||
Accrued expenses | 93,642 | 60,203 | ' | ' | ||
Liabilities from inventories not owned | 0 | 12,960 | ' | ' | ||
Total notes payable | 41,264 | 38,060 | ' | ' | ||
Total senior notes | 1,041,707 | 469,355 | ' | ' | ||
Intercompany payables | 0 | 0 | ' | ' | ||
Total liabilities | 1,183,247 | 559,617 | ' | ' | ||
Equity | ' | ' | ' | ' | ||
William Lyon Homes stockholdersb equity | 456,297 | 428,179 | ' | ' | ||
Noncontrolling interests | 14,105 | 22,615 | ' | ' | ||
Total liabilities and equity | 1,653,649 | 1,010,411 | ' | ' | ||
Delaware Lyon | ' | ' | ' | ' | ||
ASSETS | ' | ' | ' | ' | ||
Cash and cash equivalents | 0 | 0 | 0 | 0 | ||
Restricted cash | 0 | 0 | ' | ' | ||
Receivables | 0 | 0 | ' | ' | ||
Escrow proceeds receivable | 0 | 0 | ' | ' | ||
Real estate inventories | ' | ' | ' | ' | ||
Owned | 0 | 0 | ' | ' | ||
Not owned | ' | 0 | ' | ' | ||
Deferred loan costs, net | 0 | 0 | ' | ' | ||
Goodwill | 0 | 0 | ' | ' | ||
Intangibles, net | 0 | 0 | ' | ' | ||
Deferred income taxes, net | 0 | 0 | ' | ' | ||
Other assets, net | 0 | 0 | ' | ' | ||
Investments in subsidiaries | 456,296 | 428,179 | ' | ' | ||
Intercompany receivables | 0 | 0 | ' | ' | ||
Total assets | 456,296 | 428,179 | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ' | ' | ||
Accounts payable | 0 | 0 | ' | ' | ||
Accrued expenses | 0 | 0 | ' | ' | ||
Liabilities from inventories not owned | ' | 0 | ' | ' | ||
Total notes payable | 0 | 0 | ' | ' | ||
Intercompany payables | 0 | 0 | ' | ' | ||
Total liabilities | 0 | 0 | ' | ' | ||
Equity | ' | ' | ' | ' | ||
William Lyon Homes stockholdersb equity | 456,296 | 428,179 | ' | ' | ||
Noncontrolling interests | 0 | 0 | ' | ' | ||
Total liabilities and equity | 456,296 | 428,179 | ' | ' | ||
California Lyon | ' | ' | ' | ' | ||
ASSETS | ' | ' | ' | ' | ||
Cash and cash equivalents | 25,918 | 166,516 | 77,976 | 69,376 | ||
Restricted cash | 504 | 854 | ' | ' | ||
Receivables | 16,267 | 11,429 | ' | ' | ||
Escrow proceeds receivable | 13,064 | 4,313 | ' | ' | ||
Real estate inventories | ' | ' | ' | ' | ||
Owned | 748,429 | 608,965 | ' | ' | ||
Not owned | ' | 12,960 | ' | ' | ||
Deferred loan costs, net | 25,975 | 9,575 | ' | ' | ||
Goodwill | 14,209 | 14,209 | ' | ' | ||
Intangibles, net | 1,477 | 2,766 | ' | ' | ||
Deferred income taxes, net | 91,055 | 95,580 | ' | ' | ||
Other assets, net | 14,943 | 9,100 | ' | ' | ||
Investments in subsidiaries | -35,547 | 9,975 | ' | ' | ||
Intercompany receivables | 0 | 0 | ' | ' | ||
Total assets | 916,294 | 946,242 | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ' | ' | ||
Accounts payable | 35,965 | 12,489 | ' | ' | ||
Accrued expenses | 88,080 | 59,376 | ' | ' | ||
Liabilities from inventories not owned | ' | 12,960 | ' | ' | ||
Total notes payable | 3,077 | 12,281 | ' | ' | ||
Intercompany payables | 165,211 | 214,837 | ' | ' | ||
Total liabilities | 1,292,776 | 743,238 | ' | ' | ||
Equity | ' | ' | ' | ' | ||
William Lyon Homes stockholdersb equity | -376,482 | 203,004 | ' | ' | ||
Noncontrolling interests | 0 | 0 | ' | ' | ||
Total liabilities and equity | 916,294 | 946,242 | ' | ' | ||
Guarantor Subsidiaries | ' | ' | ' | ' | ||
ASSETS | ' | ' | ' | ' | ||
Cash and cash equivalents | 195 | 28 | 313 | 65 | ||
Restricted cash | 0 | 0 | ' | ' | ||
Receivables | 367 | 5 | ' | ' | ||
Escrow proceeds receivable | 1,506 | 67 | ' | ' | ||
Real estate inventories | ' | ' | ' | ' | ||
Owned | 553,977 | 3,761 | ' | ' | ||
Not owned | ' | 0 | ' | ' | ||
Deferred loan costs, net | 0 | 0 | ' | ' | ||
Goodwill | 48,919 | 0 | ' | ' | ||
Intangibles, net | 5,900 | 0 | ' | ' | ||
Deferred income taxes, net | 0 | 0 | ' | ' | ||
Other assets, net | 2,301 | 723 | ' | ' | ||
Investments in subsidiaries | -599,212 | 0 | ' | ' | ||
Intercompany receivables | 231,084 | 225,056 | ' | ' | ||
Total assets | 245,037 | 229,640 | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ' | ' | ||
Accounts payable | 5,363 | 1,959 | ' | ' | ||
Accrued expenses | 5,460 | 744 | ' | ' | ||
Liabilities from inventories not owned | ' | 0 | ' | ' | ||
Total notes payable | 647 | 1,762 | ' | ' | ||
Intercompany payables | 0 | 0 | ' | ' | ||
Total liabilities | 11,470 | 4,465 | ' | ' | ||
Equity | ' | ' | ' | ' | ||
William Lyon Homes stockholdersb equity | 233,567 | 225,175 | ' | ' | ||
Noncontrolling interests | 0 | 0 | ' | ' | ||
Total liabilities and equity | 245,037 | 229,640 | ' | ' | ||
Non-Guarantor Subsidiaries | ' | ' | ' | ' | ||
ASSETS | ' | ' | ' | ' | ||
Cash and cash equivalents | 9,006 | 5,128 | 3,633 | 1,634 | ||
Restricted cash | 0 | 0 | ' | ' | ||
Receivables | 3,206 | 5,025 | ' | ' | ||
Escrow proceeds receivable | 36 | 0 | ' | ' | ||
Real estate inventories | ' | ' | ' | ' | ||
Owned | 76,026 | 59,064 | ' | ' | ||
Not owned | ' | 0 | ' | ' | ||
Deferred loan costs, net | 0 | 0 | ' | ' | ||
Goodwill | 0 | 0 | ' | ' | ||
Intangibles, net | 0 | 0 | ' | ' | ||
Deferred income taxes, net | 0 | 0 | ' | ' | ||
Other assets, net | 369 | 343 | ' | ' | ||
Investments in subsidiaries | 0 | 0 | ' | ' | ||
Intercompany receivables | 0 | -15 | ' | ' | ||
Total assets | 88,643 | 69,545 | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ' | ' | ||
Accounts payable | 6,570 | 2,651 | ' | ' | ||
Accrued expenses | 102 | 83 | ' | ' | ||
Liabilities from inventories not owned | ' | 0 | ' | ' | ||
Total notes payable | 37,540 | 24,017 | ' | ' | ||
Intercompany payables | 65,873 | 10,204 | ' | ' | ||
Total liabilities | 110,085 | 36,955 | ' | ' | ||
Equity | ' | ' | ' | ' | ||
William Lyon Homes stockholdersb equity | -35,547 | 9,975 | ' | ' | ||
Noncontrolling interests | 14,105 | 22,615 | ' | ' | ||
Total liabilities and equity | 88,643 | 69,545 | ' | ' | ||
Eliminations | ' | ' | ' | ' | ||
ASSETS | ' | ' | ' | ' | ||
Cash and cash equivalents | 0 | 0 | 0 | 0 | ||
Restricted cash | 0 | 0 | ' | ' | ||
Receivables | 0 | 0 | ' | ' | ||
Escrow proceeds receivable | 0 | 0 | ' | ' | ||
Real estate inventories | ' | ' | ' | ' | ||
Owned | 0 | 0 | ' | ' | ||
Not owned | ' | 0 | ' | ' | ||
Deferred loan costs, net | 0 | 0 | ' | ' | ||
Goodwill | 0 | 0 | ' | ' | ||
Intangibles, net | 0 | 0 | ' | ' | ||
Deferred income taxes, net | 0 | 0 | ' | ' | ||
Other assets, net | 0 | 0 | ' | ' | ||
Investments in subsidiaries | 178,463 | -438,154 | ' | ' | ||
Intercompany receivables | -231,084 | -225,041 | ' | ' | ||
Total assets | -52,621 | -663,195 | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ' | ' | ||
Accounts payable | 0 | 0 | ' | ' | ||
Accrued expenses | 0 | 0 | ' | ' | ||
Liabilities from inventories not owned | ' | 0 | ' | ' | ||
Total notes payable | 0 | 0 | ' | ' | ||
Intercompany payables | -231,084 | -225,041 | ' | ' | ||
Total liabilities | -231,084 | -225,041 | ' | ' | ||
Equity | ' | ' | ' | ' | ||
William Lyon Homes stockholdersb equity | 178,463 | -438,154 | ' | ' | ||
Noncontrolling interests | 0 | 0 | ' | ' | ||
Total liabilities and equity | -52,621 | -663,195 | ' | ' | ||
Senior unsecured loan facility | ' | ' | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ' | ' | ||
Total senior notes | 120,000 | 0 | ' | ' | ||
Senior unsecured loan facility | Delaware Lyon | ' | ' | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ' | ' | ||
Total senior notes | 0 | ' | ' | ' | ||
Senior unsecured loan facility | California Lyon | ' | ' | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ' | ' | ||
Total senior notes | 120,000 | ' | ' | ' | ||
Senior unsecured loan facility | Guarantor Subsidiaries | ' | ' | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ' | ' | ||
Total senior notes | 0 | ' | ' | ' | ||
Senior unsecured loan facility | Non-Guarantor Subsidiaries | ' | ' | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ' | ' | ||
Total senior notes | 0 | ' | ' | ' | ||
Senior unsecured loan facility | Eliminations | ' | ' | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ' | ' | ||
Total senior notes | 0 | ' | ' | ' | ||
5 3/4% Senior notes due April 15, 2019 | ' | ' | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ' | ' | ||
Total senior notes | 150,000 | 0 | ' | ' | ||
5 3/4% Senior notes due April 15, 2019 | Delaware Lyon | ' | ' | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ' | ' | ||
Total senior notes | 0 | ' | ' | ' | ||
5 3/4% Senior notes due April 15, 2019 | California Lyon | ' | ' | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ' | ' | ||
Total senior notes | 150,000 | ' | ' | ' | ||
5 3/4% Senior notes due April 15, 2019 | Guarantor Subsidiaries | ' | ' | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ' | ' | ||
Total senior notes | 0 | ' | ' | ' | ||
5 3/4% Senior notes due April 15, 2019 | Non-Guarantor Subsidiaries | ' | ' | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ' | ' | ||
Total senior notes | 0 | ' | ' | ' | ||
5 3/4% Senior notes due April 15, 2019 | Eliminations | ' | ' | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ' | ' | ||
Total senior notes | 0 | ' | ' | ' | ||
8 1/2% Senior notes due November 15, 2020 | ' | ' | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ' | ' | ||
Total senior notes | 430,443 | 431,295 | ' | ' | ||
8 1/2% Senior notes due November 15, 2020 | Delaware Lyon | ' | ' | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ' | ' | ||
Total senior notes | 0 | 0 | ' | ' | ||
8 1/2% Senior notes due November 15, 2020 | California Lyon | ' | ' | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ' | ' | ||
Total senior notes | 430,443 | 431,295 | ' | ' | ||
8 1/2% Senior notes due November 15, 2020 | Guarantor Subsidiaries | ' | ' | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ' | ' | ||
Total senior notes | 0 | 0 | ' | ' | ||
8 1/2% Senior notes due November 15, 2020 | Non-Guarantor Subsidiaries | ' | ' | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ' | ' | ||
Total senior notes | 0 | 0 | ' | ' | ||
8 1/2% Senior notes due November 15, 2020 | Eliminations | ' | ' | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ' | ' | ||
Total senior notes | 0 | 0 | ' | ' | ||
7% Senior notes due August 15, 2022 | ' | ' | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ' | ' | ||
Total senior notes | 300,000 | 0 | ' | ' | ||
7% Senior notes due August 15, 2022 | Delaware Lyon | ' | ' | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ' | ' | ||
Total senior notes | 0 | ' | ' | ' | ||
7% Senior notes due August 15, 2022 | California Lyon | ' | ' | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ' | ' | ||
Total senior notes | 300,000 | ' | ' | ' | ||
7% Senior notes due August 15, 2022 | Guarantor Subsidiaries | ' | ' | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ' | ' | ||
Total senior notes | 0 | ' | ' | ' | ||
7% Senior notes due August 15, 2022 | Non-Guarantor Subsidiaries | ' | ' | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ' | ' | ||
Total senior notes | 0 | ' | ' | ' | ||
7% Senior notes due August 15, 2022 | Eliminations | ' | ' | ' | ' | ||
LIABILITIES AND EQUITY | ' | ' | ' | ' | ||
Total senior notes | $0 | ' | ' | ' | ||
[1] | Represents the consolidation of a land banking arrangement, net of deposits. The final lots attributable to this amount were purchased in April 2014. |
Recovered_Sheet3
Senior Notes, Secured, and Unsecured Indebtedness - Condensed Consolidating Statement of Operations (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Operating revenue | ' | ' | ' | ' | ' |
Sales | $196,305 | ' | $141,352 | $506,472 | $341,682 |
Construction services | 10,593 | ' | 9,478 | 30,186 | 21,439 |
Management fees | 0 | ' | 0 | 0 | 0 |
Operating revenue | 206,898 | ' | 150,830 | 536,658 | 363,121 |
Operating costs | ' | ' | ' | ' | ' |
Cost of sales | -157,774 | ' | -107,957 | -393,612 | -270,770 |
Construction services | -8,262 | ' | -8,135 | -24,735 | -17,472 |
Sales and marketing | -12,476 | ' | -6,679 | -27,958 | -17,482 |
General and administrative | -12,726 | ' | -10,200 | -35,881 | -28,016 |
Transaction expenses | -5,768 | ' | 0 | -5,768 | 0 |
Amortization of intangible assets | -174 | ' | -191 | -1,294 | -1,173 |
Other | -454 | ' | -695 | -1,745 | -1,746 |
Total operating costs | -197,634 | ' | -133,857 | -490,993 | -336,659 |
Income from subsidiaries | 0 | ' | 0 | 0 | 0 |
Operating income | 9,264 | ' | 16,973 | 45,665 | 26,462 |
Interest expense, net of amounts capitalized | 0 | ' | -51 | 0 | -2,602 |
Other income (expense), net | 357 | ' | 114 | 830 | 257 |
Income before reorganization items | 9,621 | ' | 17,036 | 46,495 | 24,117 |
Reorganization items, net | 0 | ' | 0 | 0 | -464 |
Income before provision for income taxes | 9,621 | ' | 17,036 | 46,495 | 23,653 |
Provision for income taxes | -1,999 | 95,600 | -6,356 | -12,779 | -6,366 |
Net income | 7,622 | ' | 10,680 | 33,716 | 17,287 |
Less: Net income attributable to noncontrolling interests | -1,984 | ' | -3,118 | -7,096 | -4,879 |
Net income (loss) attributable to William Lyon Homes | 5,638 | ' | 7,562 | 26,620 | 12,408 |
Preferred stock dividends | 0 | ' | 0 | 0 | -1,528 |
Net income (loss) available to common stockholders | 5,638 | ' | 7,562 | 26,620 | 10,880 |
Delaware Lyon | ' | ' | ' | ' | ' |
Operating revenue | ' | ' | ' | ' | ' |
Sales | 0 | ' | 0 | 0 | 0 |
Construction services | 0 | ' | 0 | 0 | 0 |
Management fees | 0 | ' | 0 | 0 | 0 |
Operating revenue | 0 | ' | 0 | 0 | 0 |
Operating costs | ' | ' | ' | ' | ' |
Cost of sales | 0 | ' | 0 | 0 | 0 |
Construction services | 0 | ' | 0 | 0 | 0 |
Sales and marketing | 0 | ' | 0 | 0 | 0 |
General and administrative | 0 | ' | 0 | 0 | 0 |
Transaction expenses | 0 | ' | ' | 0 | ' |
Amortization of intangible assets | 0 | ' | 0 | 0 | 0 |
Other | 0 | ' | 0 | 0 | 0 |
Total operating costs | 0 | ' | 0 | 0 | 0 |
Income from subsidiaries | 5,638 | ' | 12,716 | 26,620 | 17,562 |
Operating income | 5,638 | ' | 12,716 | 26,620 | 17,562 |
Interest expense, net of amounts capitalized | ' | ' | 0 | 0 | 0 |
Other income (expense), net | 0 | ' | 0 | 0 | 0 |
Income before reorganization items | ' | ' | ' | ' | 17,562 |
Reorganization items, net | ' | ' | ' | ' | 0 |
Income before provision for income taxes | 5,638 | ' | 12,716 | 26,620 | 17,562 |
Provision for income taxes | 0 | ' | 0 | 0 | 0 |
Net income | 5,638 | ' | 12,716 | 26,620 | 17,562 |
Less: Net income attributable to noncontrolling interests | 0 | ' | 0 | 0 | 0 |
Net income (loss) attributable to William Lyon Homes | 5,638 | ' | 12,716 | 26,620 | 17,562 |
Preferred stock dividends | ' | ' | 0 | ' | -1,528 |
Net income (loss) available to common stockholders | 5,638 | ' | 12,716 | 26,620 | 16,034 |
California Lyon | ' | ' | ' | ' | ' |
Operating revenue | ' | ' | ' | ' | ' |
Sales | 113,716 | ' | 76,178 | 343,449 | 173,032 |
Construction services | 10,593 | ' | 9,478 | 30,186 | 21,439 |
Management fees | 455 | ' | 456 | 1,672 | -727 |
Operating revenue | 124,764 | ' | 86,112 | 375,307 | 193,744 |
Operating costs | ' | ' | ' | ' | ' |
Cost of sales | -88,778 | ' | -55,968 | -262,360 | -132,270 |
Construction services | -8,262 | ' | -8,135 | -24,735 | -17,472 |
Sales and marketing | -7,636 | ' | -4,108 | -18,526 | -9,826 |
General and administrative | -11,532 | ' | -9,473 | -33,030 | -26,162 |
Transaction expenses | -5,768 | ' | ' | -5,768 | ' |
Amortization of intangible assets | -174 | ' | -191 | -1,294 | -1,173 |
Other | -620 | ' | -695 | -1,917 | -1,744 |
Total operating costs | -122,770 | ' | -78,570 | -347,630 | -188,647 |
Income from subsidiaries | 907 | ' | 5,804 | 7,730 | 13,800 |
Operating income | 2,901 | ' | 13,346 | 35,407 | 18,897 |
Interest expense, net of amounts capitalized | ' | ' | -51 | 0 | -2,476 |
Other income (expense), net | 685 | ' | 423 | 1,550 | 1,184 |
Income before reorganization items | ' | ' | ' | ' | 17,605 |
Reorganization items, net | ' | ' | ' | ' | -464 |
Income before provision for income taxes | 3,586 | ' | 13,718 | 36,957 | 17,141 |
Provision for income taxes | -1,999 | ' | -6,356 | -12,779 | -6,366 |
Net income | 1,587 | ' | 7,362 | 24,178 | 10,775 |
Less: Net income attributable to noncontrolling interests | 483 | ' | 0 | 0 | 0 |
Net income (loss) attributable to William Lyon Homes | 2,070 | ' | 7,362 | 24,178 | 10,775 |
Preferred stock dividends | ' | ' | 0 | ' | 0 |
Net income (loss) available to common stockholders | 2,070 | ' | 7,362 | 24,178 | 10,775 |
Guarantor Subsidiaries | ' | ' | ' | ' | ' |
Operating revenue | ' | ' | ' | ' | ' |
Sales | 64,656 | ' | 48,487 | 107,093 | 142,105 |
Construction services | 0 | ' | 0 | 0 | 0 |
Management fees | 0 | ' | 0 | 0 | 0 |
Operating revenue | 64,656 | ' | 48,487 | 107,093 | 142,105 |
Operating costs | ' | ' | ' | ' | ' |
Cost of sales | -54,828 | ' | -40,519 | -89,351 | -119,051 |
Construction services | 0 | ' | 0 | 0 | 0 |
Sales and marketing | -3,856 | ' | -2,256 | -6,671 | -6,867 |
General and administrative | -1,194 | ' | -726 | -2,849 | -1,835 |
Transaction expenses | 0 | ' | ' | 0 | ' |
Amortization of intangible assets | 0 | ' | 0 | 0 | 0 |
Other | 164 | ' | 0 | 182 | -2 |
Total operating costs | -59,714 | ' | -43,501 | -98,689 | -127,755 |
Income from subsidiaries | 0 | ' | 0 | 0 | 0 |
Operating income | 4,942 | ' | 4,986 | 8,404 | 14,350 |
Interest expense, net of amounts capitalized | ' | ' | 0 | 0 | -126 |
Other income (expense), net | -4 | ' | -9 | -15 | -20 |
Income before reorganization items | ' | ' | ' | ' | 14,204 |
Reorganization items, net | ' | ' | ' | ' | 0 |
Income before provision for income taxes | 4,938 | ' | 4,977 | 8,389 | 14,204 |
Provision for income taxes | 0 | ' | 0 | 0 | 0 |
Net income | 4,938 | ' | 4,977 | 8,389 | 14,204 |
Less: Net income attributable to noncontrolling interests | 0 | ' | 0 | 0 | 0 |
Net income (loss) attributable to William Lyon Homes | 4,938 | ' | 4,977 | 8,389 | 14,204 |
Preferred stock dividends | ' | ' | 0 | ' | 0 |
Net income (loss) available to common stockholders | 4,938 | ' | 4,977 | 8,389 | 14,204 |
Non-Guarantor Subsidiaries | ' | ' | ' | ' | ' |
Operating revenue | ' | ' | ' | ' | ' |
Sales | 17,933 | ' | 16,687 | 55,930 | 26,545 |
Construction services | 0 | ' | 0 | 0 | 0 |
Management fees | 0 | ' | 0 | 0 | 0 |
Operating revenue | 17,933 | ' | 16,687 | 55,930 | 26,545 |
Operating costs | ' | ' | ' | ' | ' |
Cost of sales | -14,623 | ' | -11,926 | -43,573 | -18,722 |
Construction services | 0 | ' | 0 | 0 | 0 |
Sales and marketing | -984 | ' | -315 | -2,761 | -789 |
General and administrative | 0 | ' | -1 | -2 | -19 |
Transaction expenses | 0 | ' | ' | 0 | ' |
Amortization of intangible assets | 0 | ' | 0 | 0 | 0 |
Other | 2 | ' | 0 | -10 | 0 |
Total operating costs | -15,605 | ' | -12,242 | -46,346 | -19,530 |
Income from subsidiaries | 0 | ' | 0 | 0 | 0 |
Operating income | 2,328 | ' | 4,445 | 9,584 | 7,015 |
Interest expense, net of amounts capitalized | ' | ' | 0 | 0 | 0 |
Other income (expense), net | -324 | ' | -300 | -705 | -907 |
Income before reorganization items | ' | ' | ' | ' | 6,108 |
Reorganization items, net | ' | ' | ' | ' | 0 |
Income before provision for income taxes | 2,004 | ' | 4,145 | 8,879 | 6,108 |
Provision for income taxes | 0 | ' | 0 | 0 | 0 |
Net income | 2,004 | ' | 4,145 | 8,879 | 6,108 |
Less: Net income attributable to noncontrolling interests | -2,467 | ' | -3,118 | -7,096 | -4,879 |
Net income (loss) attributable to William Lyon Homes | -463 | ' | 1,027 | 1,783 | 1,229 |
Preferred stock dividends | ' | ' | 0 | ' | 0 |
Net income (loss) available to common stockholders | -463 | ' | 1,027 | 1,783 | 1,229 |
Eliminations | ' | ' | ' | ' | ' |
Operating revenue | ' | ' | ' | ' | ' |
Sales | 0 | ' | 0 | 0 | 0 |
Construction services | 0 | ' | 0 | 0 | 0 |
Management fees | -455 | ' | -456 | -1,672 | 727 |
Operating revenue | -455 | ' | -456 | -1,672 | 727 |
Operating costs | ' | ' | ' | ' | ' |
Cost of sales | 455 | ' | 456 | 1,672 | -727 |
Construction services | 0 | ' | 0 | 0 | 0 |
Sales and marketing | 0 | ' | 0 | 0 | 0 |
General and administrative | 0 | ' | 0 | 0 | 0 |
Transaction expenses | 0 | ' | ' | 0 | ' |
Amortization of intangible assets | 0 | ' | 0 | 0 | 0 |
Other | 0 | ' | 0 | 0 | 0 |
Total operating costs | 455 | ' | 456 | 1,672 | -727 |
Income from subsidiaries | -6,545 | ' | -18,520 | -34,350 | -31,362 |
Operating income | -6,545 | ' | -18,520 | -34,350 | -31,362 |
Interest expense, net of amounts capitalized | ' | ' | 0 | 0 | 0 |
Other income (expense), net | 0 | ' | 0 | 0 | 0 |
Income before reorganization items | ' | ' | ' | ' | -31,362 |
Reorganization items, net | ' | ' | ' | ' | 0 |
Income before provision for income taxes | -6,545 | ' | -18,520 | -34,350 | -31,362 |
Provision for income taxes | 0 | ' | 0 | 0 | 0 |
Net income | -6,545 | ' | -18,520 | -34,350 | -31,362 |
Less: Net income attributable to noncontrolling interests | 0 | ' | 0 | 0 | 0 |
Net income (loss) attributable to William Lyon Homes | -6,545 | ' | -18,520 | -34,350 | -31,362 |
Preferred stock dividends | ' | ' | 0 | ' | 0 |
Net income (loss) available to common stockholders | ($6,545) | ' | ($18,520) | ($34,350) | ($31,362) |
Recovered_Sheet4
Senior Notes, Secured, and Unsecured Indebtedness - Condensed Consolidating Statement of Cash Flows (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Operating activities | ' | ' |
Net cash (used in) provided by operating activities | ($181,190) | ($164,919) |
Investing activities | ' | ' |
Distributions from unconsolidated joint ventures | 146 | 0 |
Cash paid for acquisitions, net | -488,785 | 0 |
Purchases of property and equipment | -1,727 | -3,359 |
Investments in subsidiaries | 0 | 0 |
Net cash used in investing activities | -490,366 | -3,359 |
Financing activities | ' | ' |
Proceeds from borrowings on notes payable | 57,947 | 51,444 |
Principal payments on notes payable | -57,155 | -45,459 |
Borrowings on senior unsecured facility | 120,000 | 0 |
Payment of deferred loan costs | -18,909 | -1,792 |
Proceeds from stock options exercised | 285 | 0 |
Proceeds from issuance of common stock | 0 | 179,438 |
Shares remitted to Company for employee tax withholding | -1,454 | 0 |
Offering costs related to secondary sale of common stock | -105 | -15,655 |
Payment of preferred stock dividends | 0 | -2,550 |
Noncontrolling interests contributions | 9,641 | 35,399 |
Noncontrolling interests distributions | -25,247 | -21,700 |
Advances to affiliates | 0 | 0 |
Intercompany receivables/payables | 0 | 0 |
Net cash provided by (used in)financing activities | 535,003 | 179,125 |
Net (decrease) increase in cash and cash equivalents | -136,553 | 10,847 |
Cash and cash equivalents b beginning of period | 171,672 | 71,075 |
Cash and cash equivalents b end of period | 35,119 | 81,922 |
Delaware Lyon | ' | ' |
Operating activities | ' | ' |
Net cash (used in) provided by operating activities | -1,496 | 0 |
Investing activities | ' | ' |
Distributions from unconsolidated joint ventures | 0 | ' |
Cash paid for acquisitions, net | 0 | ' |
Purchases of property and equipment | 0 | 0 |
Investments in subsidiaries | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Financing activities | ' | ' |
Proceeds from borrowings on notes payable | 0 | 0 |
Principal payments on notes payable | 0 | 0 |
Borrowings on senior unsecured facility | 0 | ' |
Payment of deferred loan costs | 0 | 0 |
Proceeds from stock options exercised | 0 | ' |
Proceeds from issuance of common stock | ' | 0 |
Shares remitted to Company for employee tax withholding | 0 | ' |
Offering costs related to secondary sale of common stock | 0 | 0 |
Payment of preferred stock dividends | ' | 0 |
Noncontrolling interests contributions | 0 | 0 |
Noncontrolling interests distributions | 0 | 0 |
Advances to affiliates | 0 | 0 |
Intercompany receivables/payables | 1,496 | 0 |
Net cash provided by (used in)financing activities | 1,496 | 0 |
Net (decrease) increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents b beginning of period | 0 | 0 |
Cash and cash equivalents b end of period | 0 | 0 |
California Lyon | ' | ' |
Operating activities | ' | ' |
Net cash (used in) provided by operating activities | 358,000 | -142,959 |
Investing activities | ' | ' |
Distributions from unconsolidated joint ventures | 146 | ' |
Cash paid for acquisitions, net | -437,599 | ' |
Purchases of property and equipment | -1,447 | -3,299 |
Investments in subsidiaries | 56,889 | 4,804 |
Net cash used in investing activities | -382,011 | 1,505 |
Financing activities | ' | ' |
Proceeds from borrowings on notes payable | 1,113 | 16,790 |
Principal payments on notes payable | -12,730 | -26,360 |
Borrowings on senior unsecured facility | 120,000 | ' |
Payment of deferred loan costs | -18,909 | -1,792 |
Proceeds from stock options exercised | 285 | ' |
Proceeds from issuance of common stock | ' | 179,438 |
Shares remitted to Company for employee tax withholding | -1,454 | ' |
Offering costs related to secondary sale of common stock | -105 | -15,655 |
Payment of preferred stock dividends | ' | -2,550 |
Noncontrolling interests contributions | 0 | 0 |
Noncontrolling interests distributions | 0 | 0 |
Advances to affiliates | 0 | 0 |
Intercompany receivables/payables | -654,787 | 183 |
Net cash provided by (used in)financing activities | -116,587 | 150,054 |
Net (decrease) increase in cash and cash equivalents | -140,598 | 8,600 |
Cash and cash equivalents b beginning of period | 166,516 | 69,376 |
Cash and cash equivalents b end of period | 25,918 | 77,976 |
Guarantor Subsidiaries | ' | ' |
Operating activities | ' | ' |
Net cash (used in) provided by operating activities | -536,794 | 12,221 |
Investing activities | ' | ' |
Distributions from unconsolidated joint ventures | 0 | ' |
Cash paid for acquisitions, net | -51,186 | ' |
Purchases of property and equipment | -288 | -57 |
Investments in subsidiaries | 595,575 | 0 |
Net cash used in investing activities | 544,101 | -57 |
Financing activities | ' | ' |
Proceeds from borrowings on notes payable | -1,114 | 1,762 |
Principal payments on notes payable | 0 | 0 |
Borrowings on senior unsecured facility | 0 | ' |
Payment of deferred loan costs | 0 | 0 |
Proceeds from stock options exercised | 0 | ' |
Proceeds from issuance of common stock | ' | 0 |
Shares remitted to Company for employee tax withholding | 0 | ' |
Offering costs related to secondary sale of common stock | 0 | 0 |
Payment of preferred stock dividends | ' | 0 |
Noncontrolling interests contributions | 0 | 0 |
Noncontrolling interests distributions | 0 | 0 |
Advances to affiliates | 2 | -776 |
Intercompany receivables/payables | -6,028 | -12,902 |
Net cash provided by (used in)financing activities | -7,140 | -11,916 |
Net (decrease) increase in cash and cash equivalents | 167 | 248 |
Cash and cash equivalents b beginning of period | 28 | 65 |
Cash and cash equivalents b end of period | 195 | 313 |
Non-Guarantor Subsidiaries | ' | ' |
Operating activities | ' | ' |
Net cash (used in) provided by operating activities | -2,396 | -34,181 |
Investing activities | ' | ' |
Distributions from unconsolidated joint ventures | 0 | ' |
Cash paid for acquisitions, net | 0 | ' |
Purchases of property and equipment | 8 | -3 |
Investments in subsidiaries | 0 | 0 |
Net cash used in investing activities | 8 | -3 |
Financing activities | ' | ' |
Proceeds from borrowings on notes payable | 57,948 | 32,892 |
Principal payments on notes payable | -44,425 | -19,099 |
Borrowings on senior unsecured facility | 0 | ' |
Payment of deferred loan costs | 0 | 0 |
Proceeds from stock options exercised | 0 | ' |
Proceeds from issuance of common stock | ' | 0 |
Shares remitted to Company for employee tax withholding | 0 | ' |
Offering costs related to secondary sale of common stock | 0 | 0 |
Payment of preferred stock dividends | ' | 0 |
Noncontrolling interests contributions | 9,641 | 35,399 |
Noncontrolling interests distributions | -25,247 | -21,700 |
Advances to affiliates | -47,305 | 7,768 |
Intercompany receivables/payables | 55,654 | 923 |
Net cash provided by (used in)financing activities | 6,266 | 36,183 |
Net (decrease) increase in cash and cash equivalents | 3,878 | 1,999 |
Cash and cash equivalents b beginning of period | 5,128 | 1,634 |
Cash and cash equivalents b end of period | 9,006 | 3,633 |
Eliminations | ' | ' |
Operating activities | ' | ' |
Net cash (used in) provided by operating activities | 1,496 | 0 |
Investing activities | ' | ' |
Distributions from unconsolidated joint ventures | 0 | ' |
Cash paid for acquisitions, net | 0 | ' |
Purchases of property and equipment | 0 | 0 |
Investments in subsidiaries | -652,464 | -4,804 |
Net cash used in investing activities | -652,464 | -4,804 |
Financing activities | ' | ' |
Proceeds from borrowings on notes payable | 0 | 0 |
Principal payments on notes payable | 0 | 0 |
Borrowings on senior unsecured facility | 0 | ' |
Payment of deferred loan costs | 0 | 0 |
Proceeds from stock options exercised | 0 | ' |
Proceeds from issuance of common stock | ' | 0 |
Shares remitted to Company for employee tax withholding | 0 | ' |
Offering costs related to secondary sale of common stock | 0 | 0 |
Payment of preferred stock dividends | ' | 0 |
Noncontrolling interests contributions | 0 | 0 |
Noncontrolling interests distributions | 0 | 0 |
Advances to affiliates | 47,303 | -6,992 |
Intercompany receivables/payables | 603,665 | 11,796 |
Net cash provided by (used in)financing activities | 650,968 | 4,804 |
Net (decrease) increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents b beginning of period | 0 | 0 |
Cash and cash equivalents b end of period | 0 | 0 |
5 3/4% Senior notes due April 15, 2019 | ' | ' |
Financing activities | ' | ' |
Proceeds from issuance of senior notes | 150,000 | 0 |
5 3/4% Senior notes due April 15, 2019 | Delaware Lyon | ' | ' |
Financing activities | ' | ' |
Proceeds from issuance of senior notes | 0 | ' |
5 3/4% Senior notes due April 15, 2019 | California Lyon | ' | ' |
Financing activities | ' | ' |
Proceeds from issuance of senior notes | 150,000 | ' |
5 3/4% Senior notes due April 15, 2019 | Guarantor Subsidiaries | ' | ' |
Financing activities | ' | ' |
Proceeds from issuance of senior notes | 0 | ' |
5 3/4% Senior notes due April 15, 2019 | Non-Guarantor Subsidiaries | ' | ' |
Financing activities | ' | ' |
Proceeds from issuance of senior notes | 0 | ' |
5 3/4% Senior notes due April 15, 2019 | Eliminations | ' | ' |
Financing activities | ' | ' |
Proceeds from issuance of senior notes | 0 | ' |
7% Senior notes due August 15, 2022 | ' | ' |
Financing activities | ' | ' |
Proceeds from issuance of senior notes | 300,000 | 0 |
7% Senior notes due August 15, 2022 | Delaware Lyon | ' | ' |
Financing activities | ' | ' |
Proceeds from issuance of senior notes | 0 | ' |
7% Senior notes due August 15, 2022 | California Lyon | ' | ' |
Financing activities | ' | ' |
Proceeds from issuance of senior notes | 300,000 | ' |
7% Senior notes due August 15, 2022 | Guarantor Subsidiaries | ' | ' |
Financing activities | ' | ' |
Proceeds from issuance of senior notes | 0 | ' |
7% Senior notes due August 15, 2022 | Non-Guarantor Subsidiaries | ' | ' |
Financing activities | ' | ' |
Proceeds from issuance of senior notes | 0 | ' |
7% Senior notes due August 15, 2022 | Eliminations | ' | ' |
Financing activities | ' | ' |
Proceeds from issuance of senior notes | $0 | ' |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Estimated Fair Values of Financial Instruments (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial liabilities: | ' | ' |
Notes payable | $41,264 | $38,060 |
Notes payable, fair value | 41,264 | 38,060 |
Total senior notes | 1,041,707 | 469,355 |
Senior unsecured loan facility | ' | ' |
Financial liabilities: | ' | ' |
Total senior notes | 120,000 | 0 |
Long-term Debt, Fair Value | 120,000 | 0 |
5 3/4% Senior notes due April 15, 2019 | ' | ' |
Financial liabilities: | ' | ' |
Total senior notes | 150,000 | 0 |
Long-term Debt, Fair Value | 148,125 | 0 |
Stated interest rate | 5.75% | 5.75% |
8 1/2% Senior notes due November 15, 2020 | ' | ' |
Financial liabilities: | ' | ' |
Total senior notes | 430,443 | 431,295 |
Long-term Debt, Fair Value | 460,063 | 466,877 |
Stated interest rate | 8.50% | 8.50% |
7% Senior notes due August 15, 2022 | ' | ' |
Financial liabilities: | ' | ' |
Total senior notes | 300,000 | 0 |
Long-term Debt, Fair Value | $306,750 | $0 |
Stated interest rate | 7.00% | 7.00% |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments - Fair Value of Debt (Details) (Note Payable, USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | |
Note Payable | ' | |
Fair Value Measurements Of Financial Instruments [Line Items] | ' | |
Fair value at December 31, 2013 | $38,060 | |
Repayments of principal | -57,156 | [1] |
Borrowings of principal | 60,360 | [2] |
Increase in value during the period | 0 | |
Fair value at September 30, 2014 | $41,264 | |
[1] | Represents the actual amount of principal repaid | |
[2] | Represents the actual amount of principal borrowed |
Related_Party_Transactions_Nar
Related Party Transactions - Narrative (Details) (USD $) | 0 Months Ended | 1 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 03, 2009 | Mar. 31, 2013 | Sep. 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_Narrative_Details
Income Taxes - Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Effective income tax rate | 20.80% | ' | 37.30% | 27.50% | 26.90% |
Valuation allowance | $3,211,000 | $3,959,000 | ' | $3,211,000 | ' |
Income tax expense (benefit) | 1,999,000 | -95,600,000 | 6,356,000 | 12,779,000 | 6,366,000 |
Testing Period | ' | ' | ' | '5 years | ' |
AMT credit carryovers | 1,400,000 | ' | ' | 1,400,000 | ' |
Unrecognized tax benefits | 0 | ' | ' | 0 | ' |
Federal | ' | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Operating loss carry forwards | 0 | ' | ' | 0 | ' |
Unused built-in losses | 71,400,000 | ' | ' | 71,400,000 | ' |
State | ' | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Operating loss carry forwards | 77,600,000 | ' | ' | 77,600,000 | ' |
Unused built-in losses | $38,400,000 | ' | ' | $38,400,000 | ' |
Income_Per_Common_Share_Basic_
Income Per Common Share - Basic and Diluted Income (Loss) Per Common Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Basic weighted average number of common shares outstanding (in shares) | 31,232,655 | 30,975,160 | 31,184,101 | 22,569,810 |
Effect of dilutive securities: | ' | ' | ' | ' |
Stock options, unvested common shares, and warrants (in shares) | 1,528,091 | 920,654 | 1,541,063 | 877,144 |
Diluted average shares outstanding (in shares) | 32,760,746 | 31,895,814 | 32,725,164 | 23,446,954 |
Net income available to common stockholders | $5,638 | $7,562 | $26,620 | $10,880 |
Basic income per common share (in USD per share) | $0.18 | $0.24 | $0.85 | $0.48 |
Dilutive income per common share (in USD per share) | $0.17 | $0.24 | $0.81 | $0.46 |
Stock_Based_Compensation_Narra
Stock Based Compensation - Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock based compensation expense | $900 | $900 | $2,772 | $2,207 |
Performance Based Restricted Stock | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Issuance of stock (in shares) | 24,812 | ' | 312,551 | ' |
Stock awards, vesting percentage | ' | ' | 33.33% | ' |
Restricted stock | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Issuance of stock (in shares) | 31,013 | ' | 79,575 | ' |
Restricted stock | Other Employee | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Issuance of stock (in shares) | 31,013 | ' | 57,147 | ' |
Number of award type not vesting on first and second anniversary of grant date | ' | ' | 2 | ' |
Restricted stock | Non Employee Director | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Issuance of stock (in shares) | 0 | ' | 22,428 | ' |
Stock awards, vesting percentage | ' | ' | 25.00% | ' |
First and Second Anniversary of Grant Date | Restricted stock | Other Employee | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock awards, vesting percentage | ' | ' | 50.00% | ' |
Second Anniversary of Grant Date | Restricted stock | Other Employee | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Number of award type | ' | ' | 2 | ' |
Stock awards, vesting percentage | ' | ' | 100.00% | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies - Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Project | Project | ||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' |
Rent expense under cancelable and non-cancelable operating leases | $0.80 | $0.40 | $2.10 | $1.30 | ' |
Collateral for outstanding irrevocable | 0.5 | ' | 0.5 | ' | 0.9 |
Outstanding performance and surety bonds | 92.2 | ' | 92.2 | ' | ' |
Non-refundable deposits | 69.5 | ' | 69.5 | ' | ' |
Remaining purchase price of land | 463.9 | ' | 463.9 | ' | ' |
Number of land banking projects | 1 | ' | 1 | ' | ' |
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 | ' | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' |
Purchase price | ' | ' | ' | ' | 13 |
Project construction commitment | ' | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' |
Other Commitment | $133.50 | ' | $133.50 | ' | ' |
Commitments_and_Contingencies_3
Commitments and Contingencies - Future Minimum Payments Under Non-Cancelable Operating Leases (Details) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
2014 | $577 |
2015 | 1,648 |
2016 | 1,233 |
2017 | 910 |
2018 | 897 |
Thereafter | 2,832 |
Total | $8,097 |