William Lyon Homes (WLH) 10-Q 8 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 05, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Trading Symbol	WLH
Entity Registrant Name	WILLIAM LYON HOMES
Entity Central Index Key	1,095,996
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Common stock, Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		27,866,275
Common stock, Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		3,813,884

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
ASSETS
Cash and cash equivalents	$ 39,764	$ 50,203
Restricted cash	0	504
Receivables	6,730	14,838
Escrow proceeds receivable	2,301	3,041
Real estate inventories	1,828,847	1,675,106
Investment in joint ventures	7,274	5,413
Goodwill	66,902	66,902
Intangibles, net of accumulated amortization of $4,640 as of June 30, 2016 and December 31, 2015	6,700	6,700
Deferred income taxes, net	79,846	79,726
Other assets, net	18,526	21,017
Total Assets	2,056,890	1,923,450
LIABILITIES AND EQUITY
Accounts payable	89,093	75,881
Accrued expenses	73,855	70,324
Notes payable	239,390	175,181
Total senior notes	1,167,170	1,105,776
Total liabilities	1,330,118	1,251,981
Commitments and contingencies
Equity:
Preferred stock, par value $0.01 per share, 10,000,000 shares authorized, no shares issued and outstanding as of June 30, 2016 and December 31, 2015, respectively	0	0
Additional paid-in capital	415,344	413,810
Retained earnings	241,538	217,963
Total William Lyon Homes stockholders’ equity	657,209	632,095
Noncontrolling interests	69,563	39,374
Total equity	726,772	671,469
Total liabilities and equity	2,056,890	1,923,450
Common stock, Class A, par value $0.01 per share; 150,000,000 shares authorized; 28,894,438 and 28,363,879 shares issued, 27,866,275 and 27,657,435 outstanding at June 30, 2016 and December 31, 2015, respectively
Equity:
Common stock	289	284
Common stock, Class B, par value $0.01 per share; 30,000,000 shares authorized; 3,813,884 shares issued and outstanding at June 30, 2016 and December 31, 2015
Equity:
Common stock	38	38
Senior unsecured loan facility
LIABILITIES AND EQUITY
Total senior notes	10,692	14,066
5 3/4% Senior Notes due April 15, 2019
LIABILITIES AND EQUITY
Total senior notes	148,555	148,295
8 1/2% Senior Notes due November 15, 2020
LIABILITIES AND EQUITY
Total senior notes	422,872	422,896
7% Senior Notes due August 15, 2022
LIABILITIES AND EQUITY
Total senior notes	$ 345,661	$ 345,338

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Intangibles - Accumulated Amortization	$ 4,640	$ 4,640
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)	28,894,438	28,363,879
Common stock, shares outstanding (in shares)	27,866,275	27,657,435
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 STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Operating revenue
Home sales	$ 325,059	$ 247,740	$ 586,354	$ 437,455
Construction services	594	6,955	3,724	14,408
Operating revenue	325,653	254,695	590,078	451,863
Operating costs
Cost of sales — homes	(268,638)	(200,248)	(483,809)	(354,329)
Construction services	(548)	(5,898)	(3,372)	(11,927)
Sales and marketing	(18,112)	(14,904)	(33,105)	(27,128)
General and administrative	(16,685)	(13,415)	(34,519)	(27,363)
Amortization of intangible assets	0	(462)	0	(665)
Other	(487)	(421)	(810)	(957)
Total operating costs	(304,470)	(235,348)	(555,615)	(422,369)
Operating income (loss)	21,183	19,347	34,463	29,494
Equity in income of unconsolidated joint ventures	1,194	515	2,375	763
Other income, net	228	642	753	1,423
Income (loss) before provision for income taxes	22,605	20,504	37,591	31,680
Provision for income taxes	(7,519)	(7,254)	(12,564)	(10,824)
Net income (loss)	15,086	13,250	25,027	20,856
Less: Net income attributable to noncontrolling interests	(525)	(973)	(1,452)	(1,897)
Net income available to common stockholders	$ 14,561	$ 12,277	$ 23,575	$ 18,959
Income per common share:
Basic (in USD per share)	$ 0.40	$ 0.34	$ 0.64	$ 0.52
Diluted (in USD per share)	$ 0.38	$ 0.32	$ 0.62	$ 0.50
Weighted average common shares outstanding:
Basic (in shares)	36,786,268	36,565,369	36,719,057	36,514,962
Diluted (in shares)	38,356,722	38,026,866	38,302,047	37,876,696

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENT OF EQUITY - 6 months ended Jun. 30, 2016 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Non-Controlling Interests
Beginning Balance at Dec. 31, 2015	$ 671,469	$ 322	$ 413,810	$ 217,963	$ 39,374
Beginning Balance (in shares) at Dec. 31, 2015		32,178
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	25,027			23,575	1,452
Cash contributions from members of consolidated entities	33,963				33,963
Cash distributions to members of consolidated entities	(5,226)				(5,226)
Shares remitted to Company to satisfy employee tax obligations	(844)	$ (1)	(843)
Shares remitted to Company to satisfy employee obligations (in shares)		(70)
Stock based compensation expense	2,561	$ 6	2,555
Stock based compensation expense (in shares)		600
Reversal of excess income tax benefit from stock based awards	(178)		(178)
Ending Balance at Jun. 30, 2016	$ 726,772	$ 327	$ 415,344	$ 241,538	$ 69,563
Ending Balance (in shares) at Jun. 30, 2016		32,708

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating activities
Net income	$ 25,027	$ 20,856
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	1,005	1,407
Net change in deferred income taxes	(120)	(1,786)
Stock based compensation expense	2,561	3,157
Equity in earnings of unconsolidated joint ventures	(2,375)	(763)
Distributions from unconsolidated joint ventures	617	362
Net changes in operating assets and liabilities:
Restricted cash	504	0
Receivables	1,817	740
Escrow proceeds receivable	740	(5,338)
Real estate inventories	(123,186)	(137,049)
Other assets	1,870	(4,161)
Accounts payable	13,212	17,702
Accrued expenses	3,423	(67)
Net cash used in operating activities	(74,905)	(104,940)
Investing activities
Investments in and advances to unconsolidated joint ventures	0	(1,000)
Collection of related party note receivable	6,188	0
Purchases of property and equipment	(619)	(247)
Net cash provided by (used in) investing activities	5,569	(1,247)
Financing activities
Proceeds from borrowings on notes payable	82,869	28,394
Principal payments on notes payable	(42,099)	(11,848)
Proceeds from borrowings on Revolver	120,000	144,000
Payments on Revolver	(126,000)	(40,000)
Principal payments on subordinated amortizing notes	(3,374)	(3,368)
Payment of deferred loan costs	(214)	(799)
Proceeds from stock options exercised	0	106
Shares remitted to, or withheld by the Company for employee tax withholding	(844)	(1,632)
Excess income tax benefit from stock based awards	(178)	0
Noncontrolling interest contributions	33,963	5,625
Noncontrolling interest distributions	(5,226)	(6,417)
Net cash provided by financing activities	58,897	114,061
Net (decrease) increase in cash and cash equivalents	(10,439)	7,874
Cash and cash equivalents — beginning of period	50,203	52,771
Cash and cash equivalents — end of period	39,764	60,645
Cash paid during the period for income taxes	2,210	100
Supplemental disclosures of non-cash investing and financing activities:
Issuance of note payable related to land acquisition	$ 29,439	$ 9,500

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies	Basis of Presentation and Significant Accounting Policies Operations William Lyon Homes, a Delaware corporation (“Parent” and together with its subsidiaries, the “Company”), 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 June 30, 2016 and December 31, 2015 and revenues and expenses for the three and six month periods ended June 30, 2016 and 2015 . 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 2). The accounting policies of the joint ventures are substantially the same as those of the Company. All significant intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated financial statements were prepared from our books and records without audit and include all adjustments (consisting of only normal recurring accruals) necessary to present a fair statement of results for the interim periods presented. Readers of this quarterly report should refer to our audited consolidated financial statements as of and for the year ended December 31, 2015 , which are included in our 2015 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. From time to time the Company sells land to third parties. The Company does not consider these sales to be core to its homebuilding business, and any gain or loss recognized on these transactions is recorded in other non-operating income. During the six months ended June 30, 2016 the Company sold three parcels of land resulting in no gain or loss. A provision for warranty costs relating to the Company’s limited warranty plans is included in cost of sales and accrued expenses at the time the sale of a home is recorded. The Company generally reserves a percent of the sales price of its homes, or a set amount per home closed depending on the operating division, against the possibility of future charges relating to its warranty programs and similar potential claims. Factors that affect the Company’s warranty liability include the number of homes under warranty, historical and anticipated rates of warranty claims, and cost per claim. The Company continually assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary. Changes in the Company’s warranty liability for the six months ended June 30, 2016 and 2015 , are as follows (in thousands): Six Six Warranty liability, beginning of period $ 18,117 $ 18,155 Warranty provision during period 3,288 3,057 Warranty payments during period (6,140 ) (3,767 ) Warranty charges related to construction services projects 128 594 Warranty liability, end of period $ 15,393 $ 18,039 Interest incurred under the Company’s debt obligations, as more fully discussed in Note 6, is capitalized to qualifying real estate projects under development. Interest activity for the three and six months ended June 30, 2016 and 2015 are as follows (in thousands): Three Three Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Interest incurred $ 20,558 $ 18,611 $ 40,819 $ 36,644 Less: Interest capitalized 20,558 18,611 40,819 36,644 Interest expense, net of amounts capitalized $ — $ — $ — $ — Cash paid for interest $ 24,767 $ 23,325 $ 39,678 $ 35,025 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 June 30, 2016 and December 31, 2015 . The Company monitors the cash balances in its operating accounts, however, these cash balances could be negatively impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. To date, the Company has experienced no loss or lack of access to cash in its operating accounts. Restricted Cash Restricted cash consists of deposits made by the Company to a bank account as collateral for the use of letters of credit to guarantee the Company’s financial obligations under certain other contractual arrangements in the normal course of business. 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 six reporting segments, as discussed in Note 4, and we perform an annual goodwill impairment analysis during the fourth quarter of each fiscal year. Intangibles Recorded intangible assets primarily relate to brand names of acquired entities, construction management contracts, homes in backlog, and joint venture management fee contracts recorded in conjunction with FASB ASC Topic 852, Reorganizations ("ASC 852"), or FASB ASC Topic 805, Business Combinations ("ASC 805"). All Intangible assets with the exception of those relating to brand names were valued based on expected cash flows related to home closings, and the asset is amortized on a per unit basis, as homes under the contracts close. Our brand name intangible assets are deemed to have an indefinite useful life. Income per common share The Company computes income per common share in accordance with FASB ASC Topic 260, Earnings per Share , which requires income per common share for each class of stock to be calculated using the two-class method. The two-class method is an allocation of income between the holders of common stock and a company’s participating security holders. Basic income per common share is computed by dividing income or loss available to common stockholders by the weighted average number of shares of common stock outstanding. For purposes of determining diluted income per common share, basic income per common share is further adjusted to include the effect of potential dilutive common shares. 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, 2017, 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 consolidated financial statements and related disclosures. In February 2015, FASB issued ASU No. 2015-02 " Consolidation (Topic 810): Amendments to the Consolidation Analysis " ("ASU 2015-02"). ASU 2015-02 amends the consolidation guidance for variable interest entities and voting interest entities, among other items, by eliminating the consolidation model previously applied to limited partnerships, emphasizing the risk of loss when determining a controlling financial interest and reducing the frequency of the application of related-party guidance when determining a controlling financial interest. ASU 2015-02 is effective for public companies for interim and annual reporting periods beginning after December 15, 2015. The adoption of this ASU did not have a material impact on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “ Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ” (ASU 2016-09”). ASU 2016-09 simplifies several aspects for the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for annual and interim periods in fiscal years beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the potential impact the adoption of ASU 2016-09 will have on its consolidated financial statements.

Variable Interest Entities and

Variable Interest Entities and Noncontrolling Interests	6 Months Ended
	Jun. 30, 2016
Noncontrolling Interest [Abstract]
Variable Interest Entities and Noncontrolling Interests	Variable Interest Entities and Noncontrolling Interests As of June 30, 2016 and December 31, 2015 , the Company was party to eleven and eight joint ventures, respectively, for the purpose of land development and homebuilding activities which we have determined to be VIEs. The Company, as the managing member, has the power to direct the activities of the VIEs since it manages the daily operations and has exposure to the risks and rewards of the VIEs, based upon the allocation of income and loss per the respective joint venture agreements. Therefore, the Company is the primary beneficiary of the joint ventures, and the VIEs were consolidated as of June 30, 2016 and December 31, 2015 . As of June 30, 2016 , the assets of the consolidated VIEs totaled $242.9 million , of which $4.1 million was cash and cash equivalents and $237.3 million was real estate inventories. The liabilities of the consolidated VIEs totaled $140.9 million , primarily comprised of notes payable, accounts payable and accrued liabilities. As of December 31, 2015 , the assets of the consolidated VIEs totaled $155.0 million , of which $2.8 million was cash and cash equivalents and $148.6 million was real estate inventories. The liabilities of the consolidated VIEs totaled $97.1 million , primarily comprised of notes payable, accounts payable and accrued liabilities.

Investments in Unconsolidated J

Investments in Unconsolidated Joint Ventures	6 Months Ended
	Jun. 30, 2016
Equity Method Investments and Joint Ventures [Abstract]
Investments in Unconsolidated Joint Ventures	Investments in Unconsolidated Joint Ventures The table set forth below summarizes the combined unaudited statements of operations for our unconsolidated mortgage joint ventures that we accounted for under the equity method (in thousands): Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Revenues $ 5,311 $ 2,828 $ 9,278 $ 3,534 Cost of sales (2,597 ) (1,624 ) (4,522 ) (2,006 ) Income of unconsolidated joint ventures $ 2,714 $ 1,204 $ 4,756 $ 1,528 Income from unconsolidated joint ventures reflected in the accompanying consolidated statements of operations represents our share of the income of our unconsolidated mortgage joint ventures, which is allocated based on the provisions of the underlying joint venture operating agreements less any additional impairments recorded against our investments in joint ventures which we do not deem recoverable. For the three and six months ended June 30, 2016 , and 2015 , the Company recorded income of $1.2 million and $2.4 million , and $0.5 million and $0.8 million , respectively, from its unconsolidated joint ventures. This income was primarily attributable to our share of income related to mortgages that were generated and issued to qualifying home buyers during the periods. During the three and six months ended June 30, 2016 , and 2015 , all of our unconsolidated joint ventures were reviewed for impairment. Based on the impairment review, no joint ventures were determined to be impaired. The table set forth below summarizes the combined unaudited balance sheets for our unconsolidated joint ventures that we accounted for under the equity method (in thousands): June 30, 2016 December 31, 2015 Assets Cash $ 9,348 $ 6,340 Loans held for sale 21,885 29,312 Accounts receivable 1,076 309 Other assets 51 390 Total Assets $ 32,360 $ 36,351 Liabilities and Equity Accounts payable $ 469 $ 651 Accrued expenses 832 774 Credit lines payable 20,240 27,350 Other liabilities 12 515 Members equity 10,807 7,061 Total Liabilities and Equity $ 32,360 $ 36,351

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2016
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. The Company’s President and Chief Executive Officer has been identified as the chief operating decision maker. The Company’s chief operating decision maker directs the allocation of resources to operating segments based on the profitability and cash flows of each respective segment. The Company’s homebuilding operations design, construct and sell a wide range of homes designed to meet the specific needs in each of its markets. As such, in accordance with the aggregation criteria defined by FASB ASC Topic 280, Segment Reporting (“ASC 280”), the Company’s homebuilding operating segments have been grouped into six reportable segments: California , consisting of operating divisions in i ) Southern California, consisting of operations in Orange, Los Angeles, Riverside and San Bernardino counties; and ii ) Northern California, consisting of operations in Alameda, Contra Costa, San Joaquin, and Santa Clara counties. Arizona , consisting of operations in the Phoenix, Arizona metropolitan area. Nevada , consisting of operations in the Las Vegas, Nevada metropolitan area. Colorado , consisting of operations in the Denver, Colorado metropolitan area. Washington , consisting of operations in the Seattle, Washington metropolitan area. Oregon , consisting of operations in the Portland, Oregon metropolitan area. Corporate develops and implements strategic initiatives and supports the Company’s operating segments by centralizing key administrative functions such as finance and treasury, information technology, risk management and litigation and human resources. Segment financial information relating to the Company’s operations was as follows (in thousands): Three Three Six Six Operating revenue: California (1) $ 101,795 $ 87,661 $ 197,679 $ 174,454 Arizona 35,594 10,508 56,641 17,694 Nevada 48,655 30,771 79,396 58,013 Colorado 24,176 27,404 50,569 45,593 Washington 37,364 46,186 70,265 77,466 Oregon 78,069 52,165 135,528 78,643 Total operating revenue $ 325,653 $ 254,695 $ 590,078 $ 451,863 (1) Operating revenue in the California segment includes construction services revenue. Three Three Six Six Income before provision for income taxes California $ 7,965 $ 11,765 $ 17,888 $ 21,077 Arizona 3,496 306 4,995 610 Nevada 4,738 2,687 7,296 6,049 Colorado 872 809 1,301 639 Washington 2,445 4,319 3,868 6,892 Oregon 11,028 5,866 17,986 8,111 Corporate (7,939 ) (5,248 ) (15,743 ) (11,698 ) Income before provision for income taxes $ 22,605 $ 20,504 $ 37,591 $ 31,680 June 30, 2016 December 31, 2015 Homebuilding assets: California $ 756,983 $ 721,066 Arizona 205,461 197,828 Nevada 208,746 183,019 Colorado 121,688 118,307 Washington 329,452 249,615 Oregon 239,668 228,183 Corporate (1) 194,892 225,432 Total homebuilding assets $ 2,056,890 $ 1,923,450 (1) Comprised primarily of cash and cash equivalents, deferred income taxes, receivables, and other assets.

Real Estate Inventories

Real Estate Inventories	6 Months Ended
	Jun. 30, 2016
Real Estate [Abstract]
Real Estate Inventories	Real Estate Inventories Real estate inventories consist of the following (in thousands): June 30, 2016 December 31, 2015 Real estate inventories: Land deposits $ 65,004 $ 61,514 Land and land under development 1,034,731 1,013,650 Homes completed and under construction 616,889 495,966 Model homes 112,223 103,976 Total $ 1,828,847 $ 1,675,106

Senior Notes, Secured, and Unse

Senior Notes, Secured, and Unsecured Indebtedness	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Senior Notes, Secured, and Unsecured Indebtedness	Senior Notes, Secured, and Unsecured Indebtedness Senior notes, secured, and unsecured indebtedness consist of the following (in thousands): June 30, 2016 December 31, 2015 Notes payable: Construction notes payable $ 150,951 $ 110,181 Seller financing 29,439 — Revolving line of credit 59,000 65,000 Total notes payable 239,390 175,181 Subordinated amortizing notes 10,692 14,066 Senior notes: 5 3 / 4 % Senior Notes due April 15, 2019 148,555 148,295 8 1 / 2 % Senior Notes due November 15, 2020 422,872 422,896 7% Senior Notes due August 15, 2022 345,661 345,338 Total senior notes 917,088 916,529 Total notes payable and senior notes $ 1,167,170 $ 1,105,776 As of June 30, 2016 , the maturities of the Notes payable, Subordinated amortizing notes, 5 3 / 4 % Senior Notes, 8 1 / 2 % Senior Notes, and 7% Senior Notes are as follows (in thousands): Year Ending December 31, 2016 $ 16,636 2017 149,683 2018 44,327 2019 189,436 2020 425,000 Thereafter 350,000 $ 1,175,082 Maturities above exclude premium on the 8 1 / 2 % and 7% Senior Notes in an aggregate of $4.2 million , and deferred loan costs on the 5 3 / 4 %, 8 1 / 2 % and 7% Senior Notes of $12.1 million as of June 30, 2016 . Notes Payable Construction Notes Payable The Company and certain of its consolidated joint ventures have entered into construction notes payable agreements. These loans will be repaid with proceeds from closings and are secured by the underlying projects. The issuance date, facility size, maturity date and interest rate are listed in the table below as of June 30, 2016 (in millions): Issuance Date Facility Size Outstanding Maturity Current Rate March, 2016 $ 33.4 $ 14.9 September, 2018 3.45 % (1) January, 2016 35.0 18.3 February, 2019 3.72 % (2) November, 2015 42.5 16.3 November, 2017 4.50 % (1) August, 2015 (4) 14.2 1.7 August, 2017 4.50 % (1) August, 2015 (4) 37.5 8.3 August, 2017 4.50 % (1) July, 2015 22.5 21.2 July, 2018 4.00 % (3) April, 2015 18.5 18.4 October, 2017 4.00 % (3) November, 2014 24.0 18.2 November, 2017 4.00 % (3) November, 2014 22.0 17.0 November, 2017 4.00 % (3) March, 2014 26.0 16.6 October, 2016 3.45 % (1) $ 275.6 $ 150.9 (1) Loan bears interest at the Company's option of either LIBOR +3.0% or the prime rate +1.0% . (2) Loan bears interest at LIBOR +3.25% (3) Loan bears interest at the prime rate +0.5% . (4) Loan relates to a project that is wholly-owned by the Company. Seller Financing At June 30, 2016 , the Company had $29.4 million of notes payable outstanding related to one land acquisition for which seller financing was provided. The note bears interest a rate of 7% per annum, is secured by the underlying land, and matures in June 2018 . Revolving Line of Credit On July 1, 2016 , subsequent to the period ended June 30, 2016, William Lyon Homes, Inc., a California corporation ("California Lyon") and Parent entered into an amendment and restatement agreement (the “Amendment and Restatement Agreement”), pursuant to which its existing credit agreement providing for a revolving credit facility, as previously amended and restated on March 27, 2015 as described below, was further amended and restated in its entirety (as so further amended and restated, the “Second Amended Facility”). The Second Amended Facility amends and restates the Company’s previous $130.0 million revolving credit facility and provides for total lending commitments of $145.0 million . In addition, the Second Amended Facility has an uncommitted accordion feature under which the Company may increase the total principal amount up to a maximum aggregate of $200.0 million under certain circumstances, as well as a sublimit of $50.0 million for letters of credit. The Second Amended Facility, among other things, also amended the maturity date of the previous facility to July 1, 2019 , provided that the Second Amended Facility will terminate on January 14, 2019 (the “Springing Termination Date”) if, on the Springing Termination Date, the aggregate outstanding principal amount of California Lyon’s 5.75% senior notes due 2019 is equal to or greater than the sum of (a) 50% of the Consolidated EBITDA (as defined in the Second Amended Facility) of California Lyon, Parent, certain of the Parent’s direct and indirect wholly owned subsidiaries (together with California Lyon and Parent, the “Loan Parties”) and their Restricted Subsidiaries (as defined in the Second Amended Facility) for the four-quarter period ending September 30, 2018 , plus (b) the Liquidity (as defined in the Second Amended Facility) of the Loan Parties and their consolidated subsidiaries on the Springing Termination Date. Prior to the entry into the Second Amended Facility as described above, and as in place as of June 30, 2016 , on March 27, 201 5, California Lyon and Parent entered into an amendment and restatement agreement pursuant to which its existing credit agreement for a revolving credit facility of up to $100 million was amended and restated in its entirety (as so amended and restated, the “Amended Facility”). The Amended Facility amended and restated the Company's previous $100 million revolving credit facility and provided for total lending commitments of $130.0 million . In addition, the Amended Facility has an uncommitted accordion feature under which the Company may increase the total principal amount up to a maximum aggregate of $200.0 million under certain circumstances (up from a maximum aggregate of $125.0 million under the previous facility), as well as a sublimit of $50.0 million for letters of credit, and extended the maturity date of the previous facility by one year to August 7, 2017 . Both the Second Amended Facility and the Amended Facility that was in place at June 30, 2016 (hereinafter, as applicable, the “Amended Facility”) contain 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 Amended Facility contains customary events of default, subject to cure periods in certain circumstances, including: nonpayment of principal, interest and fees or other amounts; violation of covenants; inaccuracy of representations and warranties; cross default to certain other indebtedness; unpaid judgments; and certain bankruptcy and other insolvency events. The occurrence of any event of default could result in the termination of the commitments under the Amended Facility and permit the lenders to accelerate payment on outstanding borrowings under the Amended Facility and require cash collateralization of outstanding letters of credit. If a change in control (as defined in the Amended Facility) occurs, the lenders may terminate the commitments under the Amended Facility and require that the Company repay outstanding borrowings under the Amended Facility and cash collateralize outstanding letters of credit. Interest rates on borrowings generally will be based on either LIBOR or a base rate, plus the applicable spread. As of June 30, 2016 , the commitment fee on the unused portion of the Amended Facility accrues at an annual rate of 0.50% . The Company was in compliance with all covenants under the Amended Facility as of June 30, 2016 . Borrowings under the Amended Facility, the availability of which is subject to a borrowing base formula, are required to be guaranteed by Parent and certain of Parent’s direct and indirect wholly-owned subsidiaries, are secured by a pledge of all equity interests held by such guarantors, and may be used for general corporate purposes. As of June 30, 2016 and December 31, 2015 , the Company had $59.0 million and $65.0 million outstanding against the Amended Facility, respectively, at effective rates of 4.04% and 3.32% , respectively as well as a letter of credit for $8.6 million outstanding at both dates. Subordinated Amortizing Notes On November 21, 2014, in order to pay down amounts borrowed under the senior unsecured bridge loan facility entered into in conjunction with the Polygon Acquisition, the Company completed its public offering and sale of 1,000,000 6.50% tangible equity units (“TEUs”, or "Units"), sold for a stated amount of $100 per Unit, featuring a 17.5% conversion premium. On December 3, 2014, the Company sold an additional 150,000 TEUs pursuant to an over-allotment option granted to the underwriters. Each TEU is a unit composed of two parts: • a prepaid stock purchase contract (a “purchase contract”); and • a senior subordinated amortizing note (an “amortizing note”). Unless settled earlier at the holder’s option, each purchase contract will automatically settle on December 1, 2017 (the "mandatory settlement date"), and the Company will deliver not more than 5.2247 shares of Class A Common Stock and not less than 4.4465 shares of Class A Common Stock on the mandatory settlement date, subject to adjustment, based upon the applicable settlement rate and applicable market value of Class A Common Stock. Each amortizing note had an initial principal amount of $18.01 , bears interest at the annual rate of 5.50% and has a final installment payment date of December 1, 2017. On each March 1, June 1, September 1 and December 1, commencing on March 1, 2015, William Lyon Homes will pay equal quarterly installments of $1.6250 on each amortizing note (except for the March 1, 2015 installment payment, which was $1.8056 per amortizing note). Each installment will constitute a payment of interest and a partial repayment of principal. The amortizing notes rank equally in right of payment to all of the Company's existing and future senior indebtedness, other than borrowings under the Amended Facility and the Company's secured project level financing, which will be senior in right of payment to the obligations under the amortizing notes, in each case to the extent of the value of the assets securing such indebtedness. Each TEU may be separated into its constituent purchase contract and amortizing note on any business day during the period beginning on, and including, the business day immediately succeeding the date of initial issuance of the Units to, but excluding, the third scheduled trading day immediately preceding the mandatory settlement date. Prior to separation, the purchase contracts and amortizing notes may only be purchased and transferred together as Units. The net proceeds received from the TEU issuance were allocated between the amortizing note and the purchase contract under the relative fair value method, with amounts allocated to the purchase contract classified as additional paid-in capital. As of June 30, 2016 and December 31, 2015 , the amortizing notes had an unamortized carrying value of $10.7 million and $14.1 million , respectively. 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. In August 2014, we exchanged 100% of the initial 5.75% Notes for notes that are freely transferable and registered under the Securities Act of 1933, as amended (the “Securities Act”). As of June 30, 2016 , the outstanding principal amount of the 5.75% Notes was $150 million , excluding deferred loan costs of $1.4 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 restricted subsidiaries. The 5.75% Notes and the related guarantees are California Lyon’s and the guarantors’ unsecured senior obligations and rank equally in right of payment with all of California Lyon’s and the guarantors’ existing and future unsecured senior debt, including California Lyon’s $425 million in aggregate principal amount of 8.5% Senior Notes due 2020 and $350 million in aggregate principal amount of 7.00% Notes, each as described below. The 5.75% Notes rank senior in right of payment to all of California Lyon’s and the guarantors’ future subordinated debt. The 5.75% Notes and the guarantees are and will be effectively junior to California Lyon’s and the guarantors’ existing and future secured debt to the extent of the value of the collateral securing such debt. 8 1 / 2 % Senior Notes Due 2020 On November 8, 2012, California Lyon completed its private placement with registration rights of 8.5% Senior Notes due 2020, (the "initial 8.5% notes"), in an aggregate principal amount of $325 million . The initial 8.5% Notes were issued at 100% of their aggregate principal amount. In July 2013, we exchanged 100% of the initial 8.5% Notes for notes that are freely transferable and registered under the Securities Act. On October 24, 2013, California Lyon completed its private placement with registration rights of an additional $100.0 million in aggregate principal amount of its 8.5% Senior Notes due 2020 (the “additional 8.5 % Notes”, and together with the initial 8.5% notes, the "8.5% Notes" ) at an issue price of 106.5% of their aggregate principal amount, plus accrued interest from and including May 15, 2013, resulting in net proceeds of approximately $104.7 million . In February 2014, we exchanged 100% of the additional 8.5% Notes for notes that are freely transferable and registered under the Securities Act. As of June 30, 2016 the outstanding principal amount of the 8.5% Notes was $425 million , excluding unamortized premium of $3.3 million and deferred loan costs of $5.4 million . The 8.5% Notes bear interest at a rate of 8.5% per annum, payable semiannually in arrears on May 15 and November 15, and mature on November 15, 2020 . The 8.5% Notes are unconditionally guaranteed on a joint and several unsecured basis by Parent and by certain of its existing and future restricted subsidiaries. The 8.5% Notes and the related guarantees are California Lyon's and the guarantors' unsecured senior obligations and rank equally in right of payment with all of California Lyon’s and the guarantors’ existing and future unsecured senior debt, including the 5.75% Notes, as described above, and the 7.00% Notes, as described below. The 8.5% Notes rank senior in right of payment to all of California Lyon’s and the guarantors’ future subordinated debt. The 8.5% Notes and the guarantees are and will be effectively junior to any of California Lyon’s and the guarantors’ existing and future secured debt to the extent of the value of the collateral securing such debt. 7% Senior Notes Due 2022 On August 11, 2014, WLH PNW Finance Corp. (“Escrow Issuer”), completed its private placement with registration rights of 7.00% Senior Notes due 2022 (the “initial 7.00% Notes”), in an aggregate principal amount of $300 million . The initial 7.00% Notes were issued at 100% of their aggregate principal amount. On August 12, 2014 , in connection with the consummation of the Polygon Acquisition, Escrow Issuer merged with and into California Lyon, and California Lyon assumed the obligations of the Escrow Issuer under the initial 7.00% Notes and the related indenture by operation of law (the “Escrow Merger”). Following the Escrow Merger, California Lyon is the obligor under the initial 7.00% Notes. In January 2015, we exchanged 100% of the initial 7.00% Notes for notes that are freely transferable and registered under the Securities Act. On September 15, 2015, California Lyon completed its private placement with registration rights of an additional $50.0 million in aggregate principal amount of its 7.00% Senior Notes due 2022 (the “additional 7.00% Notes”, and together with the intial 7.00% Notes, the "7.00% Notes") at an issue price of 102.0% of their principal amount, plus accrued interest from August 15, 2015, resulting in net proceeds of approximately $50.5 million . In January 2016, we exchanged 100% of the additional 7.00% Notes for notes that are freely transferable and registered under the Securities Act. As of June 30, 2016 the outstanding amount of the 7.00% Notes was $350 million , excluding unamortized premium of $0.9 million and deferred loan costs of $5.2 million . The 7.00% Notes bear interest at a rate of 7.00% per annum, payable semiannually in arrears on February 15 and August 15, and mature on August 15, 2022 . The 7.00% Notes are unconditionally guaranteed on a joint and several unsecured basis by Parent and certain of its existing and future restricted subsidiaries. The 7.00% Notes and the related guarantees are California Lyon’s and the guarantors’ unsecured senior obligations and rank equally in right of payment with all of California Lyon’s and the guarantors’ existing and future unsecured senior debt, including California Lyon’s $150 million in aggregate principal amount of 5.75% Senior Notes due 2019 and $425 million in aggregate principal amount of 8.5% Senior Notes due 2020, each as described above. The 7.00% Notes rank senior in right of payment to all of California Lyon’s and the guarantors’ future subordinated debt. The 7.00% Notes and the guarantees are and will be effectively junior to California Lyon’s and the guarantors’ existing and future secured debt to the extent of the value of the collateral securing such debt. Senior Note Covenant Compliance The indentures governing the 5.75% Notes, the 8.5% Notes, and the 7.00% Notes contain covenants that limit the ability of Parent, California Lyon, and their restricted subsidiaries to, among other things: (i) incur or guarantee certain additional indebtedness; (ii) pay dividends, distributions, or repurchase equity or make payments in respect of subordinated indebtedness; (iii) make certain investments; (iv) sell assets; (v) incur liens; (vi) enter into agreements restricting the ability of the Company’s restricted subsidiaries to pay dividends or transfer assets; (vii) enter into transactions with affiliates; (viii) create unrestricted subsidiaries; and (viii) consolidate, merge or sell all or substantially all of its assets. These covenants are subject to a number of important exceptions and qualifications as described in the indentures. The Company was in compliance with all such covenants as of June 30, 2016 . GUARANTOR AND NON-GUARANTOR FINANCIAL STATEMENTS The following consolidating financial information includes: (1) Consolidating balance sheets as of June 30, 2016 and December 31, 2015 ; consolidating statements of operations for the three and six months ended June 30, 2016 and 2015 ; and consolidating statements of cash flows for the six month periods ended June 30, 2016 and 2015 , 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 California Lyon and its guarantor and non-guarantor subsidiaries. Delaware Lyon owns 100% of all of its guarantor subsidiaries and all guarantees are full and unconditional, joint and several. As a result, in accordance with Rule 3-10 (d) of Regulation S-X promulgated by the SEC, no separate financial statements are required for these subsidiaries as of June 30, 2016 and December 31, 2015 , and for the three and six month periods ended June 30, 2016 and 2015 . CONDENSED CONSOLIDATING BALANCE SHEET (Unaudited) As of June 30, 2016 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company ASSETS Cash and cash equivalents $ — $ 34,723 $ 563 $ 4,478 $ — $ 39,764 Restricted cash — — — — — — Receivables — 2,810 680 3,240 — 6,730 Escrow proceeds receivable — 887 1,414 — — 2,301 Real estate inventories — 945,690 631,365 251,792 — 1,828,847 Investment in unconsolidated joint ventures — 7,124 150 — — 7,274 Goodwill — 14,209 52,693 — — 66,902 Intangibles, net — — 6,700 — — 6,700 Deferred income taxes, net — 79,846 — — — 79,846 Other assets, net — 17,056 1,176 294 — 18,526 Investments in subsidiaries 657,209 (26,354 ) (592,218 ) — (38,637 ) — Intercompany receivables — — 245,506 — (245,506 ) — Total assets $ 657,209 $ 1,075,991 $ 348,029 $ 259,804 $ (284,143 ) $ 2,056,890 LIABILITIES AND EQUITY Accounts payable $ — $ 63,320 $ 20,533 $ 5,240 $ — $ 89,093 Accrued expenses — 68,725 5,025 105 — 73,855 Notes payable — 98,481 — 140,909 — 239,390 Subordinated amortizing notes — 10,692 — — — 10,692 5 3 / 4 % Senior Notes — 148,555 — — — 148,555 8 1 / 2 % Senior Notes — 422,872 — — — 422,872 7% Senior Notes — 345,661 — — — 345,661 Intercompany payables — 175,165 — 70,341 (245,506 ) — Total liabilities — 1,333,471 25,558 216,595 (245,506 ) 1,330,118 Equity William Lyon Homes stockholders’ equity (deficit) 657,209 (257,480 ) 322,471 (26,354 ) (38,637 ) 657,209 Noncontrolling interests — — — 69,563 — 69,563 Total liabilities and equity $ 657,209 $ 1,075,991 $ 348,029 $ 259,804 $ (284,143 ) $ 2,056,890 CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2015 (in thousands) Unconsolidated Delaware California Guarantor Non-Guarantor Eliminating Consolidated ASSETS Cash and cash equivalents $ — $ 44,332 $ 2,723 $ 3,148 $ — $ 50,203 Restricted cash — 504 — — — 504 Receivables — 8,986 937 4,915 — 14,838 Escrow proceeds receivable — 2,020 1,021 — — 3,041 Real estate inventories — 922,990 589,762 162,354 — 1,675,106 Investment in unconsolidated joint ventures — 5,263 150 — — 5,413 Goodwill — 14,209 52,693 — — 66,902 Intangibles, net — — 6,700 — — 6,700 Deferred income taxes, net — 79,726 — — — 79,726 Other assets, net — 18,980 1,738 299 — 21,017 Investments in subsidiaries 632,095 (34,522 ) (561,546 ) — (36,027 ) — Intercompany receivables — — 239,248 — (239,248 ) — Total assets $ 632,095 $ 1,062,488 $ 333,426 $ 170,716 $ (275,275 ) $ 1,923,450 LIABILITIES AND EQUITY Accounts payable $ — $ 45,065 $ 27,807 $ 3,009 $ — $ 75,881 Accrued expenses — 62,167 8,059 98 — 70,324 Notes payable — 80,915 — 94,266 — 175,181 Subordinated amortizing notes — 14,066 — — — 14,066 5 3 / 4 % Senior Notes — 148,295 — — — 148,295 8 1 / 2 % Senior Notes — 422,896 — — — 422,896 7% Senior Notes — 345,338 — — — 345,338 Intercompany payables — 170,757 — 68,491 (239,248 ) — Total liabilities — 1,289,499 35,866 165,864 (239,248 ) 1,251,981 Equity William Lyon Homes stockholders’ equity (deficit) 632,095 (227,011 ) 297,560 (34,522 ) (36,027 ) 632,095 Noncontrolling interests — — — 39,374 — 39,374 Total liabilities and equity $ 632,095 $ 1,062,488 $ 333,426 $ 170,716 $ (275,275 ) $ 1,923,450 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited) Three Months Ended June 30, 2016 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company Operating revenue Sales $ — $ 137,673 $ 175,203 $ 12,183 $ — $ 325,059 Construction services — 594 — — — 594 Management fees — (366 ) — — 366 — — 137,901 175,203 12,183 366 325,653 Operating costs Cost of sales — (112,950 ) (144,473 ) (10,849 ) (366 ) (268,638 ) Construction services — (548 ) — — — (548 ) Sales and marketing — (5,925 ) (9,332 ) (2,855 ) — (18,112 ) General and administrative — (13,475 ) (3,210 ) — — (16,685 ) Other — (358 ) (129 ) — — (487 ) — (133,256 ) (157,144 ) (13,704 ) (366 ) (304,470 ) Income from subsidiaries 14,561 1,687 — — (16,248 ) — Operating income 14,561 6,332 18,059 (1,521 ) (16,248 ) 21,183 Equity in income from unconsolidated joint ventures — 859 335 — — 1,194 Other income (expense), net — 550 (6 ) (316 ) — 228 Income before provision for income taxes 14,561 7,741 18,388 (1,837 ) (16,248 ) 22,605 Provision for income taxes — (7,519 ) — — — (7,519 ) Net income 14,561 222 18,388 (1,837 ) (16,248 ) 15,086 Less: Net income attributable to noncontrolling interests — — — (525 ) — (525 ) Net income available to common stockholders $ 14,561 $ 222 $ 18,388 $ (2,362 ) $ (16,248 ) $ 14,561 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited) Three Months Ended June 30, 2015 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company Operating revenue Sales $ — $ 104,998 $ 136,263 $ 6,479 $ — $ 247,740 Construction services — 6,955 — — — 6,955 Management fees — (195 ) — — 195 — — 111,758 136,263 6,479 195 254,695 Operating costs Cost of sales — (80,482 ) (114,216 ) (5,355 ) (195 ) (200,248 ) Construction services — (5,898 ) — — — (5,898 ) Sales and marketing — (6,412 ) (7,776 ) (716 ) — (14,904 ) General and administrative — (10,669 ) (2,746 ) — — (13,415 ) Amortization of intangible assets — (462 ) — — — (462 ) Other — (646 ) 225 — — (421 ) — (104,569 ) (124,513 ) (6,071 ) (195 ) (235,348 ) Income from subsidiaries 12,277 276 — — (12,553 ) — Operating income (loss) 12,277 7,465 11,750 408 (12,553 ) 19,347 Equity in income from unconsolidated joint ventures — 245 270 — — 515 Other income (expense), net — 840 (14 ) (184 ) — 642 Income (loss) before provision for income taxes 12,277 8,550 12,006 224 (12,553 ) 20,504 Provision for income taxes — (7,254 ) — — — (7,254 ) Net income (loss) 12,277 1,296 12,006 224 (12,553 ) 13,250 Less: Net income attributable to noncontrolling interests — — — (973 ) — (973 ) Net income (loss) available to common stockholders $ 12,277 $ 1,296 $ 12,006 $ (749 ) $ (12,553 ) $ 12,277 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited) Six Months Ended June 30, 2016 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company Operating revenue Sales $ — $ 238,497 $ 313,003 $ 34,854 $ — $ 586,354 Construction services — 3,724 — — — 3,724 Management fees — (1,046 ) — — 1,046 — — 241,175 313,003 34,854 1,046 590,078 Operating costs Cost of sales — (191,829 ) (260,033 ) (30,901 ) (1,046 ) (483,809 ) Construction services — (3,372 ) — — — (3,372 ) Sales and marketing — (11,875 ) (16,957 ) (4,273 ) — (33,105 ) General and administrative — (27,481 ) (7,038 ) — — (34,519 ) Amortization of intangible assets — — — — — — Other — (727 ) (83 ) — — (810 ) — (235,284 ) (284,111 ) (35,174 ) (1,046 ) (555,615 ) Income from subsidiaries 23,575 3,924 — — (27,499 ) — Operating income (loss) 23,575 9,815 28,892 (320 ) (27,499 ) 34,463 Equity in income from unconsolidated joint ventures — 1,861 514 — — 2,375 Other income (expense), net — 1,323 (15 ) (555 ) — 753 Income (loss) before provision for income taxes 23,575 12,999 29,391 (875 ) (27,499 ) 37,591 Provision for income taxes — (12,564 ) — — (12,564 ) Net income (loss) 23,575 435 29,391 (875 ) (27,499 ) 25,027 Less: Net income attributable to noncontrolling interests — — — (1,452 ) — (1,452 ) Net income (loss) available to common stockholders $ 23,575 $ 435 $ 29,391 $ (2,327 ) $ (27,499 ) $ 23,575 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited) Six Months Ended June 30, 2015 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company Operating revenue Sales $ — $ 194,542 $ 219,397 $ 23,516 $ — $ 437,455 Construction services — 14,408 — — — 14,408 Management fees — (706 ) — — 706 — — 208,244 219,397 23,516 706 451,863 Operating costs Cost of sales — (149,358 ) (184,600 ) (19,665 ) (706 ) (354,329 ) Construction services — (11,927 ) — — — (11,927 ) Sales and marketing — (12,166 ) (13,300 ) (1,662 ) — (27,128 ) General and administrative — (21,988 ) (5,375 ) — (27,363 ) Amortization of intangible assets — (665 ) — — — (665 ) Other — (1,782 ) 825 — — (957 ) — (197,886 ) (202,450 ) (21,327 ) (706 ) (422,369 ) Income from subsidiaries 18,959 (6,468 ) — — (12,491 ) — Operating income (loss) 18,959 3,890 16,947 2,189 (12,491 ) 29,494 Equity in income from unconsolidated joint ventures — 245 518 — — 763 Other income (expense), net — 5,206 4,799 (8,582 ) — 1,423 Income (loss) before provision for income taxes 18,959 9,341 22,264 (6,393 ) (12,491 ) 31,680 Provision for income taxes — (10,824 ) — — — (10,824 ) Net income (loss) 18,959 (1,483 ) 22,264 (6,393 ) (12,491 ) 20,856 Less: Net income attributable to noncontrolling interests — — — (1,897 ) — (1,897 ) Net income (loss) available to common stockholders $ 18,959 $ (1,483 ) $ 22,264 $ (8,290 ) $ (12,491 ) $ 18,959 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) Six Months Ended June 30, 2016 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company Operating activities Net cash (used in) provided by operating activities $ (1,539 ) $ 33,612 $ (22,138 ) $ (86,379 ) $ 1,539 $ (74,905 ) Investing activities Collection of related party note receivable — 6,188 — — — 6,188 Purchases of property and equipment — (647 ) 44 (16 ) — (619 ) Investments in subsidiaries — (4,244 ) 30,672 — (26,428 ) — Net cash (used in) provided by investing activities — 1,297 30,716 (16 ) (26,428 ) 5,569 Financing activities Proceeds from borrowings on notes payable — 2,211 — 80,658 — 82,869 Principal payments on notes payable — (8,084 ) — (34,015 ) (42,099 ) Proceeds from borrowings on Revolver — 120,000 — — 120,000 Payments on Revolver — (126,000 ) — — — (126,000 ) Principal payments on subordinated amortizing notes — (3,374 ) — — — (3,374 ) Payment of deferred loan costs — (214 ) — — — (214 ) Shares remitted to or withheld by Company for employee tax withholding — (844 ) — — — (844 ) Excess income tax benefit from stock based awards — (178 ) — — — (178 ) Noncontrolling interest contributions — — — 33,963 — 33,963 Noncontrolling interest distributions — — — (5,226 ) — (5,226 ) Advances to affiliates — — (4,480 ) 10,495 (6,015 ) — Intercompany receivables/payables 1,539 (28,035 ) (6,258 ) 1,850 30,904 — Net cash provided by (used in) financing activities 1,539 (44,518 ) (10,738 ) 87,725 24,889 58,897 Net (decrease) increase in cash and cash equivalents — (9,609 ) (2,160 ) 1,330 — (10,439 ) Cash and cash equivalents at beginning of period — 44,332 2,723 3,148 — 50,203 Cash and cash equivalents at end of period $ — $ 34,723 $ 563 $ 4,478 $ — $ 39,764 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) Six Months Ended June 30, 2015 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company Operating activities Net cash (used in) provided by operating activities $ (1,631 ) $ (98,069 ) $ 13,591 $ (20,462 ) $ 1,631 $ (104,940 ) Investing activities Investments in and advances to unconsolidated joint ventures — (1,000 ) — — — (1,000 ) Purchases of property and equipment — (303 ) 41 15 — (247 ) Investments in subsidiaries — (5,004 ) (6,627 ) — 11,631 — Net cash (used in) provided by investing activities — (6,307 ) (6,586 ) 15 11,631 (1,247 ) Financing activities Proceeds from borrowings on notes payable — — — 28,394 — 28,394 Principal payments on notes payable — (2,385 ) (162 ) (9,301 ) — (11,848 ) Proceeds from borrowings on Revolver — 144,000 — — — 144,000 Payments on revolver — (40,000 ) — — — (40,000 ) Principal payments on subordinated amortizing notes — (3,368 ) — — — (3,368 ) Payment of deferred loan costs — (799 ) — — — (799 ) Proceeds from exercise of stock options — 106 — — — 106 Shares remitted to Company for employee tax witholding — (1,632 ) — — — (1,632 ) Noncontrolling interest contributions — — — 5,625 — 5,625 Noncontrolling interest distributions — — — (6,417 ) — (6,417 ) Advances to affiliates — — (4,807 ) 6,826 (2,019 ) — Intercompany receivables/payables 1,631 12,599 (1,845 ) (1,142 ) (11,243 ) — Net cash provided by (used in) financing activities 1,631 108,521 (6,814 ) 23,985 (13,262 ) 114,061 Net increase in cash and cash equivalents — 4,145 191 3,538 — 7,874 Cash and cash equivalents at beginning of period — 48,462 573 3,736 — 52,771 Cash and cash equivalents at end of period $ — $ 52,607 $ 764 $ 7,274 $ — $ 60,645

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments In accordance with FASB ASC Topic 820, Fair Value Measurements and Disclosure (“ASC 820”), the Company is required to disclose the estimated fair value of financial instruments. As of June 30, 2016 and December 31, 2015 , the Company used the following assumptions to estimate the fair value of each type of financial instrument for which it is practicable to estimate: • 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. • Subordinated amortizing notes—The Subordinated amortizing notes are traded over the counter and their fair values were based upon quotes from industry sources. • 5 3 / 4 % Senior Notes 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 are traded over the counter and their fair values were based upon quotes from industry sources. The following table excludes cash and cash equivalents, restricted cash, receivables and accounts payable, which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments. The estimated fair values of financial instruments are as follows (in thousands): June 30, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Financial liabilities: Notes payable $ 239,390 $ 239,390 $ 175,181 $ 175,181 Subordinated amortizing notes $ 10,692 $ 8,704 $ 14,066 $ 12,122 5 3 / 4 % Senior Notes due 2019 $ 148,555 $ 147,750 $ 148,295 $ 147,750 8 1 / 2 % Senior Notes due 2020 $ 422,872 $ 442,000 $ 422,896 $ 449,438 7% Senior Notes due 2022 $ 345,661 $ 348,250 $ 345,338 $ 350,875 ASC 820 establishes a framework for measuring fair value, expands disclosures regarding fair value measurements and defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 requires the Company to maximize the use of observable market inputs, minimize the use of unobservable market inputs and disclose in the form of an outlined hierarchy the details of such fair value measurements. The Company used Level 3 to measure the fair value of its Notes payable, and Level 2 to measure the fair value of its Senior notes and Subordinated amortizing notes. ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to a fair value measurement are considered to be observable or unobservable in a marketplace. The three levels of the hierarchy are as follows: • 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.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2016
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 was secured by the Aircraft and required semiannual interest payments to California Lyon of approximately $0.1 million . The note provided for a maturity date in September 2016 . During the six months ended June 30, 2016 the promissory note was paid in full by the borrower prior to the September 2016 maturity date, along with all accrued interest to date.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2016
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 33.3% and 33.4% , and 35.4% and 34.2% for the three and six months ended June 30, 2016 and 2015, respectively. The significant drivers of the effective tax rate are allocation of income to noncontrolling interests and the domestic production activities deduction. Management assesses its deferred tax assets quarterly to determine whether all or any portion of the asset is more likely than not unrealizable under ASC 740. The Company is required to establish a valuation allowance for any portion of the asset that management concludes is more likely than not to be unrealizable. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company's assessment considers all evidence, both positive and negative, including the nature, frequency and severity of any current and cumulative losses, taxable income in carry back years, the scheduled reversal of deferred tax liabilities, tax planning strategies, and projected future taxable income in making this assessment. At June 30, 2016 the Company’s had no amounts recorded as a valuation allowance against its deferred tax assets. At June 30, 2016 , the Company had no remaining federal net operating loss carryforwards and $54.6 million of remaining state net operating loss carryforwards. State net operating loss carryforwards begin to expire in 2031. In addition, as of June 30, 2016 , the Company had unused federal and state built-in losses of $53.2 million and $7.5 million , respectively. The five year testing period for built-in losses expires in 2017 and the unused built-in loss carryforwards begin to expire in 2032. The Company had AMT credit carryovers of $1.4 million at June 30, 2016 , which have an indefinite life. FASB ASC Topic 740 , Income Taxes (“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 2012 through 2015 and forward. The Company is subject to various state income tax examinations for calendar tax years ended 2008 through 2015 and forward.

Income Per Common Share

Income Per Common Share	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Income Per Common Share	Income Per Common Share Basic and diluted income per common share for the three and six months ended June 30, 2016 and 2015 were calculated as follows (in thousands, except number of shares and per share amounts): Three Three Six Six Basic weighted average number of common shares outstanding 36,786,268 36,565,369 36,719,057 36,514,962 Effect of dilutive securities: Stock options, unvested common shares, and warrants 675,524 1,461,497 688,060 1,361,734 Tangible equity units 894,930 — 894,930 — Diluted average shares outstanding 38,356,722 38,026,866 38,302,047 37,876,696 Net income available to common stockholders $ 14,561 $ 12,277 $ 23,575 $ 18,959 Basic income per common share $ 0.40 $ 0.34 $ 0.64 $ 0.52 Dilutive income per common share $ 0.38 $ 0.32 $ 0.62 $ 0.50 Antidilutive securities not included in the calculation of diluted income per common share (weighted average): Unvested stock options 240,000 240,000 240,000 120,000 Warrants 1,907,551 — 1,907,551 — Tangible equity units — 894,930 — 894,930

Stock Based Compensation

Stock Based Compensation	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Based Compensation	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 six months ended June 30, 2016 , the Company granted 259,797 shares of restricted stock, and 566,092 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. The Company recorded total stock based compensation expense during the three and six months ended June 30, 2016 and 2015 of $1.1 million and $2.6 million , and $1.8 million and $3.2 million , respectively. Performance-Based Restricted Stock Awards With respect to the performance based restricted stock awards granted to certain employees during the six months ended June 30, 2016 , the actual number of such shares of restricted stock that will be earned (the “Earned Shares”) is subject to the Company’s achievement of pre-established performance targets as of the end of the 2016 fiscal year. For each of the aforementioned awards, one-third of the Earned Shares will vest on March 1st of each of 2017, 2018 and 2019, subject to each grantee’s continued service through each vesting date. Based on the assessment as of June 30, 2016 , management determined that the currently available data was not sufficient to support that the achievement of performance targets is probable, and as such no compensation expense has been recognized for these awards to date. Restricted Stock Awards With respect to the restricted stock awards granted to certain employees during the six months ended June 30, 2016 , representing 218,733 shares of restricted stock, 163,269 of such shares are subject to a vesting schedule pursuant to which one-third of the shares will vest on March 1st of each of 2017, 2018 and 2019, and 55,464 of such shares are subject to a vesting schedule pursuant to which one-half of the shares will vest on March 1st of each of 2017 and 2018, in each case subject to each grantee’s continued service through each vesting date. With respect to the restricted stock awards granted to certain non-employee directors of the Company during the six months ended June 30, 2016 , representing 41,064 shares of restricted stock, the awards vest in equal quarterly installments on each of June 1, 2016, September 1, 2016, December 1, 2016 and March 1, 2017, subject to each grantee’s continued service on the board through each vesting date.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The Company’s commitments and contingent liabilities include the usual obligations incurred by real estate developers in the normal course of business. In the opinion of management, these matters will not have a material effect on the Company’s condensed consolidated financial position, results of operations or cash flows. The Company is a defendant in various lawsuits related to its normal business activities. We believe that the accruals we have recorded for probable and reasonably estimable losses with respect to these proceedings are adequate and that, as of June 30, 2016 , it was not reasonably possible that an additional material loss had been incurred in an amount in excess of the estimated amounts already recognized on our condensed consolidated financial statements. We evaluate our accruals for litigation and regulatory proceedings, and as appropriate, adjust them to reflect (i) the facts and circumstances known to us at the time, including information regarding negotiations, settlements, rulings and other relevant events and developments; (ii) the advice and analyses of counsel; and (iii) the assumptions and judgment of management. Similar factors and considerations are used in establishing new accruals for proceedings as to which losses have become probable and reasonably estimable at the time an evaluation is made. The outcome of any of these proceedings, including the defense and other litigation-related costs and expenses we may incur, however, is inherently uncertain and could differ significantly from the estimate reflected in a related accrual, if made. Therefore, it is possible that the ultimate outcome of any proceeding, if in excess of a related accrual or if no accrual had been made, could be material to our consolidated financial statements. We have non-cancelable operating leases primarily associated with our office facilities. Rent expense under cancelable and non-cancelable operating leases totaled $0.9 million and $1.9 million , and $0.8 million and $1.7 million , respectively, in the three and six months ended June 30, 2016 and 2015 , respectively, and is included in general and administrative expense in our consolidated statements of operations for the respective periods. The table below shows the future minimum payments under non-cancelable operating leases at June 30, 2016 (in thousands). Year Ending December 31, 2016 $ 1,099 2017 2,271 2018 2,264 2019 2,053 2020 1,832 Thereafter 2,603 Total $ 12,122 As of June 30, 2016 and December 31, 2015 , the Company had $0.0 million and $0.5 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 $174.3 million at June 30, 2016 , related principally to its obligations for site improvements at various projects. The Company does not believe that draws upon these bonds, if any, will have a material effect on the Company’s financial position, results of operations or cash flows. As of June 30, 2016 , the Company had $277.0 million of project commitments relating to the construction of projects. See Note 6 for additional information relating to the Company’s guarantee arrangements. The Company has entered into various purchase option agreements with third parties to acquire land. As of June 30, 2016 , the Company has made non-refundable deposits of $65.0 million . The Company is under no obligation to purchase the land, but would forfeit remaining deposits if the land were not purchased. The total remaining purchase price under the option agreements is $456.9 million as of June 30, 2016 .

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Other than the amendment and restatement to the Company’s revolving credit facility discussed in Note 6, no other events have occurred subsequent to June 30, 2016 , that would require recognition or disclosure in the Company’s financial statements.

Significant Accounting Policies

Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2016
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 June 30, 2016 and December 31, 2015 and revenues and expenses for the three and six month periods ended June 30, 2016 and 2015 . 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 2). The accounting policies of the joint ventures are substantially the same as those of the Company. All significant intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated financial statements were prepared from our books and records without audit and include all adjustments (consisting of only normal recurring accruals) necessary to present a fair statement of results for the interim periods presented. Readers of this quarterly report should refer to our audited consolidated financial statements as of and for the year ended December 31, 2015 , which are included in our 2015 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. From time to time the Company sells land to third parties. The Company does not consider these sales to be core to its homebuilding business, and any gain or loss recognized on these transactions is recorded in other non-operating income. During the six months ended June 30, 2016 the Company sold three parcels of land resulting in no gain or loss. A provision for warranty costs relating to the Company’s limited warranty plans is included in cost of sales and accrued expenses at the time the sale of a home is recorded. The Company generally reserves a percent of the sales price of its homes, or a set amount per home closed depending on the operating division, against the possibility of future charges relating to its warranty programs and similar potential claims. Factors that affect the Company’s warranty liability include the number of homes under warranty, historical and anticipated rates of warranty claims, and cost per claim. The Company continually 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.
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.
Cash and Cash Equivalents	Cash and Cash Equivalents Short-term investments with a maturity of three months or less when purchased are considered cash equivalents. The Company’s cash and cash equivalents balance exceeds federally insurable limits as of June 30, 2016 and December 31, 2015 . The Company monitors the cash balances in its operating accounts, however, these cash balances could be negatively impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets.
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 six reporting segments, as discussed in Note 4, and we perform an annual goodwill impairment analysis during the fourth quarter of each fiscal year.
Intangibles	Intangibles Recorded intangible assets primarily relate to brand names of acquired entities, construction management contracts, homes in backlog, and joint venture management fee contracts recorded in conjunction with FASB ASC Topic 852, Reorganizations ("ASC 852"), or FASB ASC Topic 805, Business Combinations ("ASC 805"). All Intangible assets with the exception of those relating to brand names were valued based on expected cash flows related to home closings, and the asset is amortized on a per unit basis, as homes under the contracts close. Our brand name intangible assets are deemed to have an indefinite useful life.
Income per common share	Income per common share The Company computes income per common share in accordance with FASB ASC Topic 260, Earnings per Share , which requires income per common share for each class of stock to be calculated using the two-class method. The two-class method is an allocation of income between the holders of common stock and a company’s participating security holders. Basic income per common share is computed by dividing income or loss available to common stockholders by the weighted average number of shares of common stock outstanding. For purposes of determining diluted income per common share, basic income per common share is further adjusted to include the effect of potential dilutive common shares.
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.
Impact of Recent Accounting Pronouncements	Impact of Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which clarifies existing accounting literature relating to how and when revenue is recognized by an entity. ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets and supersedes the revenue recognition requirements in Topic 605, Revenue Recognition , and most industry-specific guidance. ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. In doing so, an entity will need to exercise a greater degree of judgment and make more estimates than under the current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price, and allocating the transaction price to each separate performance obligation. ASU 2014-09 also supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts . ASU 2014-09 is effective for public companies for interim and annual reporting periods beginning after December 15, 2017, and is to be applied either retrospectively or using the cumulative effect transition method, with early adoption not permitted. The Company has not yet selected a transition method, and is currently evaluating the impact the adoption of ASU 2014-09 will have on its consolidated financial statements and related disclosures. In February 2015, FASB issued ASU No. 2015-02 " Consolidation (Topic 810): Amendments to the Consolidation Analysis " ("ASU 2015-02"). ASU 2015-02 amends the consolidation guidance for variable interest entities and voting interest entities, among other items, by eliminating the consolidation model previously applied to limited partnerships, emphasizing the risk of loss when determining a controlling financial interest and reducing the frequency of the application of related-party guidance when determining a controlling financial interest. ASU 2015-02 is effective for public companies for interim and annual reporting periods beginning after December 15, 2015. The adoption of this ASU did not have a material impact on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “ Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ” (ASU 2016-09”). ASU 2016-09 simplifies several aspects for the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for annual and interim periods in fiscal years beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the potential impact the adoption of ASU 2016-09 will have on its consolidated financial statements.

Basis of Presentation and Sig21

Basis of Presentation and Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Summary of Changes in Warranty Liability	Changes in the Company’s warranty liability for the six months ended June 30, 2016 and 2015 , are as follows (in thousands): Six Six Warranty liability, beginning of period $ 18,117 $ 18,155 Warranty provision during period 3,288 3,057 Warranty payments during period (6,140 ) (3,767 ) Warranty charges related to construction services projects 128 594 Warranty liability, end of period $ 15,393 $ 18,039
Schedule of Interest Activity	Interest activity for the three and six months ended June 30, 2016 and 2015 are as follows (in thousands): Three Three Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Interest incurred $ 20,558 $ 18,611 $ 40,819 $ 36,644 Less: Interest capitalized 20,558 18,611 40,819 36,644 Interest expense, net of amounts capitalized $ — $ — $ — $ — Cash paid for interest $ 24,767 $ 23,325 $ 39,678 $ 35,025

Investments in Unconsolidated22

Investments in Unconsolidated Joint Ventures (Tables)	6 Months Ended
	Jun. 30, 2016
Equity Method Investments and Joint Ventures [Abstract]
Summary of Unaudited Financials for Unconsolidated Joint Ventures	The table set forth below summarizes the combined unaudited balance sheets for our unconsolidated joint ventures that we accounted for under the equity method (in thousands): June 30, 2016 December 31, 2015 Assets Cash $ 9,348 $ 6,340 Loans held for sale 21,885 29,312 Accounts receivable 1,076 309 Other assets 51 390 Total Assets $ 32,360 $ 36,351 Liabilities and Equity Accounts payable $ 469 $ 651 Accrued expenses 832 774 Credit lines payable 20,240 27,350 Other liabilities 12 515 Members equity 10,807 7,061 Total Liabilities and Equity $ 32,360 $ 36,351 The table set forth below summarizes the combined unaudited statements of operations for our unconsolidated mortgage joint ventures that we accounted for under the equity method (in thousands): Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 Revenues $ 5,311 $ 2,828 $ 9,278 $ 3,534 Cost of sales (2,597 ) (1,624 ) (4,522 ) (2,006 ) Income of unconsolidated joint ventures $ 2,714 $ 1,204 $ 4,756 $ 1,528

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Schedule of Segment Financial Information Relating to Operations	Segment financial information relating to the Company’s operations was as follows (in thousands): Three Three Six Six Operating revenue: California (1) $ 101,795 $ 87,661 $ 197,679 $ 174,454 Arizona 35,594 10,508 56,641 17,694 Nevada 48,655 30,771 79,396 58,013 Colorado 24,176 27,404 50,569 45,593 Washington 37,364 46,186 70,265 77,466 Oregon 78,069 52,165 135,528 78,643 Total operating revenue $ 325,653 $ 254,695 $ 590,078 $ 451,863 (1) Operating revenue in the California segment includes construction services revenue. Three Three Six Six Income before provision for income taxes California $ 7,965 $ 11,765 $ 17,888 $ 21,077 Arizona 3,496 306 4,995 610 Nevada 4,738 2,687 7,296 6,049 Colorado 872 809 1,301 639 Washington 2,445 4,319 3,868 6,892 Oregon 11,028 5,866 17,986 8,111 Corporate (7,939 ) (5,248 ) (15,743 ) (11,698 ) Income before provision for income taxes $ 22,605 $ 20,504 $ 37,591 $ 31,680
Schedule of Segment Homebuilding Assets	June 30, 2016 December 31, 2015 Homebuilding assets: California $ 756,983 $ 721,066 Arizona 205,461 197,828 Nevada 208,746 183,019 Colorado 121,688 118,307 Washington 329,452 249,615 Oregon 239,668 228,183 Corporate (1) 194,892 225,432 Total homebuilding assets $ 2,056,890 $ 1,923,450 (1) Comprised primarily of cash and cash equivalents, deferred income taxes, receivables, and other assets.

Real Estate Inventories (Tables

Real Estate Inventories (Tables)	6 Months Ended
	Jun. 30, 2016
Real Estate [Abstract]
Summary of Real Estate Inventories	Real estate inventories consist of the following (in thousands): June 30, 2016 December 31, 2015 Real estate inventories: Land deposits $ 65,004 $ 61,514 Land and land under development 1,034,731 1,013,650 Homes completed and under construction 616,889 495,966 Model homes 112,223 103,976 Total $ 1,828,847 $ 1,675,106

Senior Notes, Secured, and Un25

Senior Notes, Secured, and Unsecured Indebtedness (Tables)	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Schedule of Debt	Senior notes, secured, and unsecured indebtedness consist of the following (in thousands): June 30, 2016 December 31, 2015 Notes payable: Construction notes payable $ 150,951 $ 110,181 Seller financing 29,439 — Revolving line of credit 59,000 65,000 Total notes payable 239,390 175,181 Subordinated amortizing notes 10,692 14,066 Senior notes: 5 3 / 4 % Senior Notes due April 15, 2019 148,555 148,295 8 1 / 2 % Senior Notes due November 15, 2020 422,872 422,896 7% Senior Notes due August 15, 2022 345,661 345,338 Total senior notes 917,088 916,529 Total notes payable and senior notes $ 1,167,170 $ 1,105,776
Schedule of Maturities of Notes Payable and Senior Notes	As of June 30, 2016 , the maturities of the Notes payable, Subordinated amortizing notes, 5 3 / 4 % Senior Notes, 8 1 / 2 % Senior Notes, and 7% Senior Notes are as follows (in thousands): Year Ending December 31, 2016 $ 16,636 2017 149,683 2018 44,327 2019 189,436 2020 425,000 Thereafter 350,000 $ 1,175,082 The issuance date, facility size, maturity date and interest rate are listed in the table below as of June 30, 2016 (in millions): Issuance Date Facility Size Outstanding Maturity Current Rate March, 2016 $ 33.4 $ 14.9 September, 2018 3.45 % (1) January, 2016 35.0 18.3 February, 2019 3.72 % (2) November, 2015 42.5 16.3 November, 2017 4.50 % (1) August, 2015 (4) 14.2 1.7 August, 2017 4.50 % (1) August, 2015 (4) 37.5 8.3 August, 2017 4.50 % (1) July, 2015 22.5 21.2 July, 2018 4.00 % (3) April, 2015 18.5 18.4 October, 2017 4.00 % (3) November, 2014 24.0 18.2 November, 2017 4.00 % (3) November, 2014 22.0 17.0 November, 2017 4.00 % (3) March, 2014 26.0 16.6 October, 2016 3.45 % (1) $ 275.6 $ 150.9 (1) Loan bears interest at the Company's option of either LIBOR +3.0% or the prime rate +1.0% . (2) Loan bears interest at LIBOR +3.25% (3) Loan bears interest at the prime rate +0.5% . (4) Loan relates to a project that is wholly-owned by the Company.
Condensed Consolidating Balance Sheet	CONDENSED CONSOLIDATING BALANCE SHEET (Unaudited) As of June 30, 2016 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company ASSETS Cash and cash equivalents $ — $ 34,723 $ 563 $ 4,478 $ — $ 39,764 Restricted cash — — — — — — Receivables — 2,810 680 3,240 — 6,730 Escrow proceeds receivable — 887 1,414 — — 2,301 Real estate inventories — 945,690 631,365 251,792 — 1,828,847 Investment in unconsolidated joint ventures — 7,124 150 — — 7,274 Goodwill — 14,209 52,693 — — 66,902 Intangibles, net — — 6,700 — — 6,700 Deferred income taxes, net — 79,846 — — — 79,846 Other assets, net — 17,056 1,176 294 — 18,526 Investments in subsidiaries 657,209 (26,354 ) (592,218 ) — (38,637 ) — Intercompany receivables — — 245,506 — (245,506 ) — Total assets $ 657,209 $ 1,075,991 $ 348,029 $ 259,804 $ (284,143 ) $ 2,056,890 LIABILITIES AND EQUITY Accounts payable $ — $ 63,320 $ 20,533 $ 5,240 $ — $ 89,093 Accrued expenses — 68,725 5,025 105 — 73,855 Notes payable — 98,481 — 140,909 — 239,390 Subordinated amortizing notes — 10,692 — — — 10,692 5 3 / 4 % Senior Notes — 148,555 — — — 148,555 8 1 / 2 % Senior Notes — 422,872 — — — 422,872 7% Senior Notes — 345,661 — — — 345,661 Intercompany payables — 175,165 — 70,341 (245,506 ) — Total liabilities — 1,333,471 25,558 216,595 (245,506 ) 1,330,118 Equity William Lyon Homes stockholders’ equity (deficit) 657,209 (257,480 ) 322,471 (26,354 ) (38,637 ) 657,209 Noncontrolling interests — — — 69,563 — 69,563 Total liabilities and equity $ 657,209 $ 1,075,991 $ 348,029 $ 259,804 $ (284,143 ) $ 2,056,890 CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2015 (in thousands) Unconsolidated Delaware California Guarantor Non-Guarantor Eliminating Consolidated ASSETS Cash and cash equivalents $ — $ 44,332 $ 2,723 $ 3,148 $ — $ 50,203 Restricted cash — 504 — — — 504 Receivables — 8,986 937 4,915 — 14,838 Escrow proceeds receivable — 2,020 1,021 — — 3,041 Real estate inventories — 922,990 589,762 162,354 — 1,675,106 Investment in unconsolidated joint ventures — 5,263 150 — — 5,413 Goodwill — 14,209 52,693 — — 66,902 Intangibles, net — — 6,700 — — 6,700 Deferred income taxes, net — 79,726 — — — 79,726 Other assets, net — 18,980 1,738 299 — 21,017 Investments in subsidiaries 632,095 (34,522 ) (561,546 ) — (36,027 ) — Intercompany receivables — — 239,248 — (239,248 ) — Total assets $ 632,095 $ 1,062,488 $ 333,426 $ 170,716 $ (275,275 ) $ 1,923,450 LIABILITIES AND EQUITY Accounts payable $ — $ 45,065 $ 27,807 $ 3,009 $ — $ 75,881 Accrued expenses — 62,167 8,059 98 — 70,324 Notes payable — 80,915 — 94,266 — 175,181 Subordinated amortizing notes — 14,066 — — — 14,066 5 3 / 4 % Senior Notes — 148,295 — — — 148,295 8 1 / 2 % Senior Notes — 422,896 — — — 422,896 7% Senior Notes — 345,338 — — — 345,338 Intercompany payables — 170,757 — 68,491 (239,248 ) — Total liabilities — 1,289,499 35,866 165,864 (239,248 ) 1,251,981 Equity William Lyon Homes stockholders’ equity (deficit) 632,095 (227,011 ) 297,560 (34,522 ) (36,027 ) 632,095 Noncontrolling interests — — — 39,374 — 39,374 Total liabilities and equity $ 632,095 $ 1,062,488 $ 333,426 $ 170,716 $ (275,275 ) $ 1,923,450
Condensed Consolidating Statement of Operations	CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited) Three Months Ended June 30, 2016 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company Operating revenue Sales $ — $ 137,673 $ 175,203 $ 12,183 $ — $ 325,059 Construction services — 594 — — — 594 Management fees — (366 ) — — 366 — — 137,901 175,203 12,183 366 325,653 Operating costs Cost of sales — (112,950 ) (144,473 ) (10,849 ) (366 ) (268,638 ) Construction services — (548 ) — — — (548 ) Sales and marketing — (5,925 ) (9,332 ) (2,855 ) — (18,112 ) General and administrative — (13,475 ) (3,210 ) — — (16,685 ) Other — (358 ) (129 ) — — (487 ) — (133,256 ) (157,144 ) (13,704 ) (366 ) (304,470 ) Income from subsidiaries 14,561 1,687 — — (16,248 ) — Operating income 14,561 6,332 18,059 (1,521 ) (16,248 ) 21,183 Equity in income from unconsolidated joint ventures — 859 335 — — 1,194 Other income (expense), net — 550 (6 ) (316 ) — 228 Income before provision for income taxes 14,561 7,741 18,388 (1,837 ) (16,248 ) 22,605 Provision for income taxes — (7,519 ) — — — (7,519 ) Net income 14,561 222 18,388 (1,837 ) (16,248 ) 15,086 Less: Net income attributable to noncontrolling interests — — — (525 ) — (525 ) Net income available to common stockholders $ 14,561 $ 222 $ 18,388 $ (2,362 ) $ (16,248 ) $ 14,561 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited) Three Months Ended June 30, 2015 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company Operating revenue Sales $ — $ 104,998 $ 136,263 $ 6,479 $ — $ 247,740 Construction services — 6,955 — — — 6,955 Management fees — (195 ) — — 195 — — 111,758 136,263 6,479 195 254,695 Operating costs Cost of sales — (80,482 ) (114,216 ) (5,355 ) (195 ) (200,248 ) Construction services — (5,898 ) — — — (5,898 ) Sales and marketing — (6,412 ) (7,776 ) (716 ) — (14,904 ) General and administrative — (10,669 ) (2,746 ) — — (13,415 ) Amortization of intangible assets — (462 ) — — — (462 ) Other — (646 ) 225 — — (421 ) — (104,569 ) (124,513 ) (6,071 ) (195 ) (235,348 ) Income from subsidiaries 12,277 276 — — (12,553 ) — Operating income (loss) 12,277 7,465 11,750 408 (12,553 ) 19,347 Equity in income from unconsolidated joint ventures — 245 270 — — 515 Other income (expense), net — 840 (14 ) (184 ) — 642 Income (loss) before provision for income taxes 12,277 8,550 12,006 224 (12,553 ) 20,504 Provision for income taxes — (7,254 ) — — — (7,254 ) Net income (loss) 12,277 1,296 12,006 224 (12,553 ) 13,250 Less: Net income attributable to noncontrolling interests — — — (973 ) — (973 ) Net income (loss) available to common stockholders $ 12,277 $ 1,296 $ 12,006 $ (749 ) $ (12,553 ) $ 12,277 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited) Six Months Ended June 30, 2016 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company Operating revenue Sales $ — $ 238,497 $ 313,003 $ 34,854 $ — $ 586,354 Construction services — 3,724 — — — 3,724 Management fees — (1,046 ) — — 1,046 — — 241,175 313,003 34,854 1,046 590,078 Operating costs Cost of sales — (191,829 ) (260,033 ) (30,901 ) (1,046 ) (483,809 ) Construction services — (3,372 ) — — — (3,372 ) Sales and marketing — (11,875 ) (16,957 ) (4,273 ) — (33,105 ) General and administrative — (27,481 ) (7,038 ) — — (34,519 ) Amortization of intangible assets — — — — — — Other — (727 ) (83 ) — — (810 ) — (235,284 ) (284,111 ) (35,174 ) (1,046 ) (555,615 ) Income from subsidiaries 23,575 3,924 — — (27,499 ) — Operating income (loss) 23,575 9,815 28,892 (320 ) (27,499 ) 34,463 Equity in income from unconsolidated joint ventures — 1,861 514 — — 2,375 Other income (expense), net — 1,323 (15 ) (555 ) — 753 Income (loss) before provision for income taxes 23,575 12,999 29,391 (875 ) (27,499 ) 37,591 Provision for income taxes — (12,564 ) — — (12,564 ) Net income (loss) 23,575 435 29,391 (875 ) (27,499 ) 25,027 Less: Net income attributable to noncontrolling interests — — — (1,452 ) — (1,452 ) Net income (loss) available to common stockholders $ 23,575 $ 435 $ 29,391 $ (2,327 ) $ (27,499 ) $ 23,575 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited) Six Months Ended June 30, 2015 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company Operating revenue Sales $ — $ 194,542 $ 219,397 $ 23,516 $ — $ 437,455 Construction services — 14,408 — — — 14,408 Management fees — (706 ) — — 706 — — 208,244 219,397 23,516 706 451,863 Operating costs Cost of sales — (149,358 ) (184,600 ) (19,665 ) (706 ) (354,329 ) Construction services — (11,927 ) — — — (11,927 ) Sales and marketing — (12,166 ) (13,300 ) (1,662 ) — (27,128 ) General and administrative — (21,988 ) (5,375 ) — (27,363 ) Amortization of intangible assets — (665 ) — — — (665 ) Other — (1,782 ) 825 — — (957 ) — (197,886 ) (202,450 ) (21,327 ) (706 ) (422,369 ) Income from subsidiaries 18,959 (6,468 ) — — (12,491 ) — Operating income (loss) 18,959 3,890 16,947 2,189 (12,491 ) 29,494 Equity in income from unconsolidated joint ventures — 245 518 — — 763 Other income (expense), net — 5,206 4,799 (8,582 ) — 1,423 Income (loss) before provision for income taxes 18,959 9,341 22,264 (6,393 ) (12,491 ) 31,680 Provision for income taxes — (10,824 ) — — — (10,824 ) Net income (loss) 18,959 (1,483 ) 22,264 (6,393 ) (12,491 ) 20,856 Less: Net income attributable to noncontrolling interests — — — (1,897 ) — (1,897 ) Net income (loss) available to common stockholders $ 18,959 $ (1,483 ) $ 22,264 $ (8,290 ) $ (12,491 ) $ 18,959
Condensed Consolidating Statement of Cash Flows	CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) Six Months Ended June 30, 2016 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company Operating activities Net cash (used in) provided by operating activities $ (1,539 ) $ 33,612 $ (22,138 ) $ (86,379 ) $ 1,539 $ (74,905 ) Investing activities Collection of related party note receivable — 6,188 — — — 6,188 Purchases of property and equipment — (647 ) 44 (16 ) — (619 ) Investments in subsidiaries — (4,244 ) 30,672 — (26,428 ) — Net cash (used in) provided by investing activities — 1,297 30,716 (16 ) (26,428 ) 5,569 Financing activities Proceeds from borrowings on notes payable — 2,211 — 80,658 — 82,869 Principal payments on notes payable — (8,084 ) — (34,015 ) (42,099 ) Proceeds from borrowings on Revolver — 120,000 — — 120,000 Payments on Revolver — (126,000 ) — — — (126,000 ) Principal payments on subordinated amortizing notes — (3,374 ) — — — (3,374 ) Payment of deferred loan costs — (214 ) — — — (214 ) Shares remitted to or withheld by Company for employee tax withholding — (844 ) — — — (844 ) Excess income tax benefit from stock based awards — (178 ) — — — (178 ) Noncontrolling interest contributions — — — 33,963 — 33,963 Noncontrolling interest distributions — — — (5,226 ) — (5,226 ) Advances to affiliates — — (4,480 ) 10,495 (6,015 ) — Intercompany receivables/payables 1,539 (28,035 ) (6,258 ) 1,850 30,904 — Net cash provided by (used in) financing activities 1,539 (44,518 ) (10,738 ) 87,725 24,889 58,897 Net (decrease) increase in cash and cash equivalents — (9,609 ) (2,160 ) 1,330 — (10,439 ) Cash and cash equivalents at beginning of period — 44,332 2,723 3,148 — 50,203 Cash and cash equivalents at end of period $ — $ 34,723 $ 563 $ 4,478 $ — $ 39,764 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) Six Months Ended June 30, 2015 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company Operating activities Net cash (used in) provided by operating activities $ (1,631 ) $ (98,069 ) $ 13,591 $ (20,462 ) $ 1,631 $ (104,940 ) Investing activities Investments in and advances to unconsolidated joint ventures — (1,000 ) — — — (1,000 ) Purchases of property and equipment — (303 ) 41 15 — (247 ) Investments in subsidiaries — (5,004 ) (6,627 ) — 11,631 — Net cash (used in) provided by investing activities — (6,307 ) (6,586 ) 15 11,631 (1,247 ) Financing activities Proceeds from borrowings on notes payable — — — 28,394 — 28,394 Principal payments on notes payable — (2,385 ) (162 ) (9,301 ) — (11,848 ) Proceeds from borrowings on Revolver — 144,000 — — — 144,000 Payments on revolver — (40,000 ) — — — (40,000 ) Principal payments on subordinated amortizing notes — (3,368 ) — — — (3,368 ) Payment of deferred loan costs — (799 ) — — — (799 ) Proceeds from exercise of stock options — 106 — — — 106 Shares remitted to Company for employee tax witholding — (1,632 ) — — — (1,632 ) Noncontrolling interest contributions — — — 5,625 — 5,625 Noncontrolling interest distributions — — — (6,417 ) — (6,417 ) Advances to affiliates — — (4,807 ) 6,826 (2,019 ) — Intercompany receivables/payables 1,631 12,599 (1,845 ) (1,142 ) (11,243 ) — Net cash provided by (used in) financing activities 1,631 108,521 (6,814 ) 23,985 (13,262 ) 114,061 Net increase in cash and cash equivalents — 4,145 191 3,538 — 7,874 Cash and cash equivalents at beginning of period — 48,462 573 3,736 — 52,771 Cash and cash equivalents at end of period $ — $ 52,607 $ 764 $ 7,274 $ — $ 60,645

Fair Value of Financial Instr26

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Schedule of Estimated Fair Values of Financial Instruments	The estimated fair values of financial instruments are as follows (in thousands): June 30, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Financial liabilities: Notes payable $ 239,390 $ 239,390 $ 175,181 $ 175,181 Subordinated amortizing notes $ 10,692 $ 8,704 $ 14,066 $ 12,122 5 3 / 4 % Senior Notes due 2019 $ 148,555 $ 147,750 $ 148,295 $ 147,750 8 1 / 2 % Senior Notes due 2020 $ 422,872 $ 442,000 $ 422,896 $ 449,438 7% Senior Notes due 2022 $ 345,661 $ 348,250 $ 345,338 $ 350,875

Income Per Common Share (Tables

Income Per Common Share (Tables)	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Income Per Common Share Calculation	Basic and diluted income per common share for the three and six months ended June 30, 2016 and 2015 were calculated as follows (in thousands, except number of shares and per share amounts): Three Three Six Six Basic weighted average number of common shares outstanding 36,786,268 36,565,369 36,719,057 36,514,962 Effect of dilutive securities: Stock options, unvested common shares, and warrants 675,524 1,461,497 688,060 1,361,734 Tangible equity units 894,930 — 894,930 — Diluted average shares outstanding 38,356,722 38,026,866 38,302,047 37,876,696 Net income available to common stockholders $ 14,561 $ 12,277 $ 23,575 $ 18,959 Basic income per common share $ 0.40 $ 0.34 $ 0.64 $ 0.52 Dilutive income per common share $ 0.38 $ 0.32 $ 0.62 $ 0.50 Antidilutive securities not included in the calculation of diluted income per common share (weighted average): Unvested stock options 240,000 240,000 240,000 120,000 Warrants 1,907,551 — 1,907,551 — Tangible equity units — 894,930 — 894,930

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Payments Under Non-Cancelable Operating Leases	The table below shows the future minimum payments under non-cancelable operating leases at June 30, 2016 (in thousands). Year Ending December 31, 2016 $ 1,099 2017 2,271 2018 2,264 2019 2,053 2020 1,832 Thereafter 2,603 Total $ 12,122

Basis of Presentation and Sig29

Basis of Presentation and Significant Accounting Policies - Narrative (Details)	6 Months Ended
	Jun. 30, 2016USD ($)Propertysegment
Significant Accounting Policies [Line Items]
Number of Parcels of Land Sold | Property	3
Gain (loss) on sale of land | $	$ 0
Number of reportable segments | segment	6
Minimum
Significant Accounting Policies [Line Items]
Percentage of sales price from construction management agreements	3.00%
Maximum
Significant Accounting Policies [Line Items]
Percentage of sales price from construction management agreements	5.00%

Basis of Presentation and Sig30

Basis of Presentation and Significant Accounting Policies - Summary of Changes in Warranty Liability (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Movement in Standard Product Warranty Accrual [Roll Forward]
Warranty liability, beginning of period	$ 18,117	$ 18,155
Warranty provision during period	3,288	3,057
Warranty payments during period	(6,140)	(3,767)
Warranty charges related to construction services projects	128	594
Warranty liability, end of period	$ 15,393	$ 18,039

Basis of Presentation and Sig31

Basis of Presentation and Significant Accounting Policies - Schedule of Interest Activity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Accounting Policies [Abstract]
Interest incurred	$ 20,558	$ 18,611	$ 40,819	$ 36,644
Less: Interest capitalized	20,558	18,611	40,819	36,644
Interest expense, net of amounts capitalized	0	0	0	0
Cash paid for interest	$ 24,767	$ 23,325	$ 39,678	$ 35,025

Variable Interest Entities an32

Variable Interest Entities and Noncontrolling Interests - Narrative (Details) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2016USD ($)joint_venture	Dec. 31, 2015USD ($)joint_venture
Noncontrolling Interest [Line Items]
Number of joint ventures | joint_venture	11	8
Consolidated variable interest entities, assets	$ 242.9	$ 155
Consolidated variable interest entities, liabilities	140.9	97.1
Cash
Noncontrolling Interest [Line Items]
Consolidated variable interest entities, assets	4.1	2.8
Real estate
Noncontrolling Interest [Line Items]
Consolidated variable interest entities, assets	$ 237.3	$ 148.6

Investments in Unconsolidated33

Investments in Unconsolidated Joint Ventures - Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Schedule of Equity Method Investments [Line Items]
Total operating revenue	$ 325,653	$ 254,695	$ 590,078	$ 451,863
Cost of sales	(304,470)	(235,348)	(555,615)	(422,369)
Operating income (loss)	21,183	19,347	34,463	29,494
Unconsolidated joint venture income	1,194	515	2,375	763
Joint Ventures
Schedule of Equity Method Investments [Line Items]
Total operating revenue	5,311	2,828	9,278	3,534
Cost of sales	(2,597)	(1,624)	(4,522)	(2,006)
Operating income (loss)	$ 2,714	$ 1,204	$ 4,756	$ 1,528

Investments in Unconsolidated34

Investments in Unconsolidated Joint Ventures - Financial Position (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
ASSETS
Other assets	$ 18,526	$ 21,017
Total Assets	2,056,890	1,923,450
LIABILITIES AND EQUITY
Accounts payable	89,093	75,881
Accrued expenses	73,855	70,324
Total liabilities and equity	2,056,890	1,923,450
Joint Ventures
ASSETS
Cash	9,348	6,340
Loans held for sale	21,885	29,312
Accounts receivable	1,076	309
Other assets	51	390
Total Assets	32,360	36,351
LIABILITIES AND EQUITY
Accounts payable	469	651
Accrued expenses	832	774
Credit lines payable	20,240	27,350
Other liabilities	12	515
Members equity	10,807	7,061
Total liabilities and equity	$ 32,360	$ 36,351

Segment Information - Narrative

Segment Information - Narrative (Details)	6 Months Ended
	Jun. 30, 2016segment
Segment Reporting [Abstract]
Number of operating segments	1
Number of reportable segments	6

Segment Information - Schedule

Segment Information - Schedule of Segment Financial Information Relating to Operations (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Operating revenue
Total operating revenue		$ 325,653	$ 254,695	$ 590,078	$ 451,863
Income before provision for income taxes
Income before provision for income taxes		22,605	20,504	37,591	31,680
Corporate
Income before provision for income taxes
Income before provision for income taxes		(7,939)	(5,248)	(15,743)	(11,698)
California | Reportable Operating Segments
Operating revenue
Total operating revenue	[1]	101,795	87,661	197,679	174,454
Income before provision for income taxes
Income before provision for income taxes		7,965	11,765	17,888	21,077
Arizona | Reportable Operating Segments
Operating revenue
Total operating revenue		35,594	10,508	56,641	17,694
Income before provision for income taxes
Income before provision for income taxes		3,496	306	4,995	610
Nevada | Reportable Operating Segments
Operating revenue
Total operating revenue		48,655	30,771	79,396	58,013
Income before provision for income taxes
Income before provision for income taxes		4,738	2,687	7,296	6,049
Colorado | Reportable Operating Segments
Operating revenue
Total operating revenue		24,176	27,404	50,569	45,593
Income before provision for income taxes
Income before provision for income taxes		872	809	1,301	639
Washington | Reportable Operating Segments
Operating revenue
Total operating revenue		37,364	46,186	70,265	77,466
Income before provision for income taxes
Income before provision for income taxes		2,445	4,319	3,868	6,892
Oregon | Reportable Operating Segments
Operating revenue
Total operating revenue		78,069	52,165	135,528	78,643
Income before provision for income taxes
Income before provision for income taxes		$ 11,028	$ 5,866	$ 17,986	$ 8,111
[1]	Operating revenue in the California segment includes construction services revenue.

Segment Information - Schedul37

Segment Information - Schedule of Segment Homebuilding Assets (Details) - USD ($) $ in Thousands		Jun. 30, 2016	Dec. 31, 2015
Homebuilding assets:
Total homebuilding assets		$ 2,056,890	$ 1,923,450
Corporate
Homebuilding assets:
Total homebuilding assets	[1]	194,892	225,432
California | Reportable Operating Segments
Homebuilding assets:
Total homebuilding assets		756,983	721,066
Arizona | Reportable Operating Segments
Homebuilding assets:
Total homebuilding assets		205,461	197,828
Nevada | Reportable Operating Segments
Homebuilding assets:
Total homebuilding assets		208,746	183,019
Colorado | Reportable Operating Segments
Homebuilding assets:
Total homebuilding assets		121,688	118,307
Washington | Reportable Operating Segments
Homebuilding assets:
Total homebuilding assets		329,452	249,615
Oregon | Reportable Operating Segments
Homebuilding assets:
Total homebuilding assets		$ 239,668	$ 228,183
[1]	Comprised primarily of cash and cash equivalents, deferred income taxes, receivables, and other assets.

Real Estate Inventories - Summa

Real Estate Inventories - Summary of Real Estate Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Real estate inventories:
Land deposits	$ 65,004	$ 61,514
Land and land under development	1,034,731	1,013,650
Homes completed and under construction	616,889	495,966
Model homes	112,223	103,976
Total	$ 1,828,847	$ 1,675,106

Senior Notes, Secured, and Un39

Senior Notes, Secured, and Unsecured Indebtedness - Schedule of Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	Nov. 21, 2014	Aug. 11, 2014	Mar. 31, 2014	Nov. 08, 2012
Debt Instrument [Line Items]
Total notes payable	$ 239,390	$ 175,181
Total debt	1,167,170	1,105,776
Subordinated amortizing notes
Debt Instrument [Line Items]
Total debt	10,692	14,066
Stated interest rate			5.50%
5 3/4% Senior Notes due April 15, 2019
Debt Instrument [Line Items]
Total debt	$ 148,555	$ 148,295
Stated interest rate	5.75%	5.75%
8 1/2% Senior Notes due November 15, 2020
Debt Instrument [Line Items]
Total debt	$ 422,872	$ 422,896
Stated interest rate	8.50%	8.50%
7% Senior Notes due August 15, 2022
Debt Instrument [Line Items]
Total debt	$ 345,661	$ 345,338
Stated interest rate	7.00%	7.00%
Construction notes payable
Debt Instrument [Line Items]
Total notes payable	$ 150,951	$ 110,181
Seller financing
Debt Instrument [Line Items]
Total notes payable	29,439	0
Senior notes
Debt Instrument [Line Items]
Total debt	917,088	916,529
Senior notes | 5 3/4% Senior Notes due April 15, 2019
Debt Instrument [Line Items]
Total debt	$ 148,555	148,295
Stated interest rate	5.75%				5.75%
Senior notes | 8 1/2% Senior Notes due November 15, 2020
Debt Instrument [Line Items]
Total debt	$ 422,872	422,896
Stated interest rate	8.50%					8.50%
Senior notes | 7% Senior Notes due August 15, 2022
Debt Instrument [Line Items]
Total debt	$ 345,661	$ 345,338
Stated interest rate	7.00%			7.00%

Senior Notes, Secured, and Un40

Senior Notes, Secured, and Unsecured Indebtedness - Schedule of Maturities of Notes Payable, Senior Unsecured Facility, 5 3/4% and 8 1/2% Senior Notes (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Total debt	$ 1,167,170	$ 1,105,776
Senior Notes and Subordinated Amortizing Notes
Debt Instrument [Line Items]
2,016	16,636
2,017	149,683
2,018	44,327
2,019	189,436
2,020	425,000
Thereafter	350,000
Total debt	$ 1,175,082

Senior Notes, Secured, and Un41

Senior Notes, Secured, and Unsecured Indebtedness - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	Aug. 11, 2014	Mar. 31, 2014	Nov. 08, 2012
Debt Instrument [Line Items]
Deferred loan costs	$ 12,100
Notes payable	$ 239,390	$ 175,181
8 1/2% Senior Notes due November 15, 2020
Debt Instrument [Line Items]
Stated interest rate	8.50%	8.50%
7% Senior Notes due August 15, 2022
Debt Instrument [Line Items]
Stated interest rate	7.00%	7.00%
5 3/4% Senior Notes due April 15, 2019
Debt Instrument [Line Items]
Stated interest rate	5.75%	5.75%
8 1/2% and 7% Senior Notes
Debt Instrument [Line Items]
Unamortized premium	$ 4,200
Senior notes | 8 1/2% Senior Notes due November 15, 2020
Debt Instrument [Line Items]
Stated interest rate	8.50%				8.50%
Unamortized premium	$ 3,300
Deferred loan costs	$ 5,400
Senior notes | 7% Senior Notes due August 15, 2022
Debt Instrument [Line Items]
Stated interest rate	7.00%		7.00%
Unamortized premium	$ 900
Deferred loan costs	$ 5,200
Senior notes | 5 3/4% Senior Notes due April 15, 2019
Debt Instrument [Line Items]
Stated interest rate	5.75%			5.75%
Deferred loan costs	$ 1,400
Seller financing
Debt Instrument [Line Items]
Notes payable	$ 29,439	$ 0

Senior Notes, Secured, and Un42

Senior Notes, Secured, and Unsecured Indebtedness - Schedule of Maturities of Construction Notes Payable (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Total notes payable	$ 239,390	$ 175,181
Construction Loans
Debt Instrument [Line Items]
Total notes payable	275,600
Outstanding	150,900
Construction Loans | March 2016 Construction Notes Payable
Debt Instrument [Line Items]
Total notes payable	33,400
Outstanding	$ 14,900
Current Rate	3.45%
Construction Loans | January 2016 Construction Notes Payable
Debt Instrument [Line Items]
Total notes payable	$ 35,000
Outstanding	$ 18,300
Current Rate	3.72%
Construction Loans | November 2015 Construction Notes Payable
Debt Instrument [Line Items]
Total notes payable	$ 42,500
Outstanding	$ 16,300
Current Rate	4.50%
Construction Loans | August 2015 Construction Notes Payable
Debt Instrument [Line Items]
Total notes payable	$ 14,200
Outstanding	$ 1,700
Current Rate	4.50%
Construction Loans | August 2015 Construction Notes Payable
Debt Instrument [Line Items]
Total notes payable	$ 37,500
Outstanding	$ 8,300
Current Rate	4.50%
Construction Loans | July 2015 Construction Notes Payable
Debt Instrument [Line Items]
Total notes payable	$ 22,500
Outstanding	$ 21,200
Current Rate	4.00%
Construction Loans | April 2015 Construction Notes Payable
Debt Instrument [Line Items]
Total notes payable	$ 18,500
Outstanding	$ 18,400
Current Rate	4.00%
Construction Loans | November 2014 Construction Notes Payable
Debt Instrument [Line Items]
Total notes payable	$ 24,000
Outstanding	$ 18,200
Current Rate	4.00%
Construction Loans | November 2014 Construction Notes Payable
Debt Instrument [Line Items]
Total notes payable	$ 22,000
Outstanding	$ 17,000
Current Rate	4.00%
Construction Loans | March 2014 Construction Notes Payable
Debt Instrument [Line Items]
Total notes payable	$ 26,000
Outstanding	$ 16,600
Current Rate	3.45%

Senior Notes, Secured, and Un43

Senior Notes, Secured, and Unsecured Indebtedness - Schedule of Maturities of Construction Notes Payable (Footnote) (Details)	6 Months Ended
	Jun. 30, 2016
Construction Notes Payable, March 2014, August 2015, November 2015, March 2016 | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	3.00%
Construction Notes Payable, March 2014, August 2015, November 2015, March 2016 | Prime rate
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%
Construction Notes Payable, January 2016 | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	3.25%
Construction Notes Payable, November 2014, April 2015, July 2015 | Prime rate
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%

Senior Notes, Secured, and Un44

Senior Notes, Secured, and Unsecured Indebtedness - Revolving Line of Credit - Narrative (Details) - USD ($)	Jul. 01, 2016	Jun. 30, 2016	Dec. 31, 2015	Mar. 27, 2015	Mar. 31, 2014
Debt Instrument [Line Items]
Notes payable		$ 239,390,000	$ 175,181,000
5 3/4% Senior Notes due April 15, 2019
Debt Instrument [Line Items]
Stated interest rate		5.75%	5.75%
Revolving Credit Facility
Debt Instrument [Line Items]
Effective rate		4.04%	3.32%
Revolving Credit Facility | Amended Facility
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 130,000,000		$ 130,000,000
Additional capacity under accordion feature				200,000,000
Commitment fee percentage		0.50%
Revolving Credit Facility | Original Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity				100,000,000
Additional capacity under accordion feature				125,000,000
Letter of Credit
Debt Instrument [Line Items]
Outstanding letter of credit		$ 8,600,000
Letter of Credit | Amended Facility
Debt Instrument [Line Items]
Minimum borrowing capacity				$ 50,000,000
Outstanding letter of credit		$ 8,600,000
Senior Notes | 5 3/4% Senior Notes due April 15, 2019
Debt Instrument [Line Items]
Stated interest rate		5.75%			5.75%
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Notes payable		$ 59,000,000	$ 65,000,000
Subsequent Event | Revolving Credit Facility | Second Amended Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 145,000,000
Additional capacity under accordion feature	$ 200,000,000
Debt instrument, subjective acceleration clause, percentage of EBITDA, minimum	50.00%
Subsequent Event | Letter of Credit | Second Amended Facility
Debt Instrument [Line Items]
Minimum borrowing capacity	$ 50,000,000

Senior Notes, Secured, and Un45

Senior Notes, Secured, and Unsecured Indebtedness - Subordinated Amortizing Notes - Narrative (Details) $ / shares in Units, $ in Thousands	Nov. 21, 2014$ / shares$ / noteshares	Jun. 30, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 03, 2014shares
Debt Instrument [Line Items]
Total debt | $		$ 1,167,170	$ 1,105,776
Subordinated amortizing notes
Debt Instrument [Line Items]
Initial principal amount | $ / note	18.01
Stated interest rate	5.50%
Quarterly installments amount per amortizing note (in USD per note) | $ / note	1.6250
Installment payment amount per amortizing note (in USD per note) | $ / note	1.8056
Total debt | $		10,692	14,066
Senior unsecured loan facility
Debt Instrument [Line Items]
Total debt | $		$ 10,692	$ 14,066
Maximum | Common stock, Class A
Debt Instrument [Line Items]
Shares delivered on mandatory settlement date (in shares) | shares	5.2247
Minimum | Common stock, Class A
Debt Instrument [Line Items]
Shares delivered on mandatory settlement date (in shares) | shares	4.4465
Tangible Equity Units
Debt Instrument [Line Items]
Number of TEUs sold (in shares) | shares	1,000,000			150,000
Stated rate	6.50%
Share price (in USD per share) | $ / shares	$ 100
Percent conversion premium	17.50%

Senior Notes, Secured, and Un46

Senior Notes, Secured, and Unsecured Indebtedness - Senior Notes - Narrative (Details) - USD ($)

Sep. 15, 2015

Aug. 11, 2014

Mar. 31, 2014

Oct. 24, 2013

Nov. 08, 2012

Sep. 03, 2009

Jan. 31, 2016

Jan. 31, 2015

Aug. 31, 2014

Feb. 28, 2014

Jul. 31, 2013

Jun. 30, 2016

Dec. 31, 2015

Debt Instrument [Line Items]

Deferred loan costs

$ 12,100,000

Maturity date

Sep. 30, 2016

5 3/4% Senior Notes due April 15, 2019

Debt Instrument [Line Items]

Stated interest rate

5.75%

5.75%

8 1/2% Senior Notes due November 15, 2020

Debt Instrument [Line Items]

Stated interest rate

8.50%

8.50%

7% Senior Notes due August 15, 2022

Debt Instrument [Line Items]

Stated interest rate

7.00%

7.00%

Senior notes | 5 3/4% Senior Notes due April 15, 2019

Debt Instrument [Line Items]

Stated interest rate

5.75%

5.75%

Principal amount

$ 150,000,000

Percentage of principal amount

100.00%

Percent exchanged

100.00%

Deferred loan costs

$ 1,400,000

Maturity date

Apr. 15, 2019

Senior notes | 8 1/2% Senior Notes due November 15, 2020

Debt Instrument [Line Items]

Stated interest rate

8.50%

8.50%

Principal amount

$ 100,000,000

$ 325,000,000

$ 425,000,000

Percentage of principal amount

106.50%

100.00%

Percent exchanged

100.00%

100.00%

Deferred loan costs

$ 5,400,000

Maturity date

Nov. 15, 2020

Net proceeds from issuance of debt

$ 104,700,000

Outstanding amount

$ 425,000,000

Unamortized premium

$ 3,300,000

Senior notes | 7% Senior Notes due August 15, 2022

Debt Instrument [Line Items]

Stated interest rate

7.00%

7.00%

Principal amount

$ 50,000,000

$ 300,000,000

$ 350,000,000

Percentage of principal amount

102.00%

100.00%

Percent exchanged

100.00%

Deferred loan costs

5,200,000

Net proceeds from issuance of debt

$ 50,500,000

Expected percent exchanged

100.00%

Outstanding amount

350,000,000

Unamortized premium

$ 900,000

Senior Notes, Secured, and Un47

Senior Notes, Secured, and Unsecured Indebtedness - Guarantor and Non-Guarantor Financial Statements - Narrative (Details)	Jun. 30, 2016
Parent
Debt Instrument [Line Items]
Ownership percentage	100.00%

Senior Notes, Secured, and Un48

Senior Notes, Secured, and Unsecured Indebtedness - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
ASSETS
Cash and cash equivalents	$ 39,764	$ 50,203	$ 60,645	$ 52,771
Restricted cash	0	504
Receivables	6,730	14,838
Escrow proceeds receivable	2,301	3,041
Real estate inventories	1,828,847	1,675,106
Investment in unconsolidated joint ventures	7,274	5,413
Goodwill	66,902	66,902
Intangibles, net	6,700	6,700
Deferred income taxes, net	79,846	79,726
Other assets, net	18,526	21,017
Investments in subsidiaries	0	0
Intercompany receivables	0	0
Total Assets	2,056,890	1,923,450
LIABILITIES AND EQUITY
Accounts payable	89,093	75,881
Accrued expenses	73,855	70,324
Notes payable	239,390	175,181
Total debt	1,167,170	1,105,776
Intercompany payables	0	0
Total liabilities	1,330,118	1,251,981
Equity
William Lyon Homes stockholders’ equity (deficit)	657,209	632,095
Noncontrolling interests	69,563	39,374
Total liabilities and equity	2,056,890	1,923,450
Subordinated amortizing notes
LIABILITIES AND EQUITY
Total debt	10,692	14,066
5 3/4% Senior Notes due April 15, 2019
LIABILITIES AND EQUITY
Total debt	148,555	148,295
8 1/2% Senior Notes due November 15, 2020
LIABILITIES AND EQUITY
Total debt	422,872	422,896
7% Senior Notes due August 15, 2022
LIABILITIES AND EQUITY
Total debt	345,661	345,338
Reporting Entities | 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	0	0
Investment in unconsolidated joint ventures	0	0
Goodwill	0	0
Intangibles, net	0	0
Deferred income taxes, net	0	0
Other assets, net	0	0
Investments in subsidiaries	657,209	632,095
Intercompany receivables	0	0
Total Assets	657,209	632,095
LIABILITIES AND EQUITY
Accounts payable	0	0
Accrued expenses	0	0
Notes payable	0	0
Intercompany payables	0	0
Total liabilities	0	0
Equity
William Lyon Homes stockholders’ equity (deficit)	657,209	632,095
Noncontrolling interests	0	0
Total liabilities and equity	657,209	632,095
Reporting Entities | Delaware Lyon | Subordinated amortizing notes
LIABILITIES AND EQUITY
Total debt	0	0
Reporting Entities | Delaware Lyon | 5 3/4% Senior Notes due April 15, 2019
LIABILITIES AND EQUITY
Total debt	0	0
Reporting Entities | Delaware Lyon | 8 1/2% Senior Notes due November 15, 2020
LIABILITIES AND EQUITY
Total debt	0	0
Reporting Entities | Delaware Lyon | 7% Senior Notes due August 15, 2022
LIABILITIES AND EQUITY
Total debt	0	0
Reporting Entities | California Lyon
ASSETS
Cash and cash equivalents	34,723	44,332	52,607	48,462
Restricted cash	0	504
Receivables	2,810	8,986
Escrow proceeds receivable	887	2,020
Real estate inventories	945,690	922,990
Investment in unconsolidated joint ventures	7,124	5,263
Goodwill	14,209	14,209
Intangibles, net	0	0
Deferred income taxes, net	79,846	79,726
Other assets, net	17,056	18,980
Investments in subsidiaries	(26,354)	(34,522)
Intercompany receivables	0	0
Total Assets	1,075,991	1,062,488
LIABILITIES AND EQUITY
Accounts payable	63,320	45,065
Accrued expenses	68,725	62,167
Notes payable	98,481	80,915
Intercompany payables	175,165	170,757
Total liabilities	1,333,471	1,289,499
Equity
William Lyon Homes stockholders’ equity (deficit)	(257,480)	(227,011)
Noncontrolling interests	0	0
Total liabilities and equity	1,075,991	1,062,488
Reporting Entities | California Lyon | Subordinated amortizing notes
LIABILITIES AND EQUITY
Total debt	10,692	14,066
Reporting Entities | California Lyon | 5 3/4% Senior Notes due April 15, 2019
LIABILITIES AND EQUITY
Total debt	148,555	148,295
Reporting Entities | California Lyon | 8 1/2% Senior Notes due November 15, 2020
LIABILITIES AND EQUITY
Total debt	422,872	422,896
Reporting Entities | California Lyon | 7% Senior Notes due August 15, 2022
LIABILITIES AND EQUITY
Total debt	345,661	345,338
Reporting Entities | Guarantor Subsidiaries
ASSETS
Cash and cash equivalents	563	2,723	764	573
Restricted cash	0	0
Receivables	680	937
Escrow proceeds receivable	1,414	1,021
Real estate inventories	631,365	589,762
Investment in unconsolidated joint ventures	150	150
Goodwill	52,693	52,693
Intangibles, net	6,700	6,700
Deferred income taxes, net	0	0
Other assets, net	1,176	1,738
Investments in subsidiaries	(592,218)	(561,546)
Intercompany receivables	245,506	239,248
Total Assets	348,029	333,426
LIABILITIES AND EQUITY
Accounts payable	20,533	27,807
Accrued expenses	5,025	8,059
Notes payable	0	0
Intercompany payables	0	0
Total liabilities	25,558	35,866
Equity
William Lyon Homes stockholders’ equity (deficit)	322,471	297,560
Noncontrolling interests	0	0
Total liabilities and equity	348,029	333,426
Reporting Entities | Guarantor Subsidiaries | Subordinated amortizing notes
LIABILITIES AND EQUITY
Total debt	0	0
Reporting Entities | Guarantor Subsidiaries | 5 3/4% Senior Notes due April 15, 2019
LIABILITIES AND EQUITY
Total debt	0	0
Reporting Entities | Guarantor Subsidiaries | 8 1/2% Senior Notes due November 15, 2020
LIABILITIES AND EQUITY
Total debt	0	0
Reporting Entities | Guarantor Subsidiaries | 7% Senior Notes due August 15, 2022
LIABILITIES AND EQUITY
Total debt	0	0
Reporting Entities | Non-Guarantor Subsidiaries
ASSETS
Cash and cash equivalents	4,478	3,148	7,274	3,736
Restricted cash	0	0
Receivables	3,240	4,915
Escrow proceeds receivable	0	0
Real estate inventories	251,792	162,354
Investment in unconsolidated joint ventures	0	0
Goodwill	0	0
Intangibles, net	0	0
Deferred income taxes, net	0	0
Other assets, net	294	299
Investments in subsidiaries	0	0
Intercompany receivables	0	0
Total Assets	259,804	170,716
LIABILITIES AND EQUITY
Accounts payable	5,240	3,009
Accrued expenses	105	98
Notes payable	140,909	94,266
Intercompany payables	70,341	68,491
Total liabilities	216,595	165,864
Equity
William Lyon Homes stockholders’ equity (deficit)	(26,354)	(34,522)
Noncontrolling interests	69,563	39,374
Total liabilities and equity	259,804	170,716
Reporting Entities | Non-Guarantor Subsidiaries | Subordinated amortizing notes
LIABILITIES AND EQUITY
Total debt	0	0
Reporting Entities | Non-Guarantor Subsidiaries | 5 3/4% Senior Notes due April 15, 2019
LIABILITIES AND EQUITY
Total debt	0	0
Reporting Entities | Non-Guarantor Subsidiaries | 8 1/2% Senior Notes due November 15, 2020
LIABILITIES AND EQUITY
Total debt	0	0
Reporting Entities | Non-Guarantor Subsidiaries | 7% Senior Notes due August 15, 2022
LIABILITIES AND EQUITY
Total debt	0	0
Consolidation, 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	0	0
Investment in unconsolidated joint ventures	0	0
Goodwill	0	0
Intangibles, net	0	0
Deferred income taxes, net	0	0
Other assets, net	0	0
Investments in subsidiaries	(38,637)	(36,027)
Intercompany receivables	(245,506)	(239,248)
Total Assets	(284,143)	(275,275)
LIABILITIES AND EQUITY
Accounts payable	0	0
Accrued expenses	0	0
Notes payable	0	0
Intercompany payables	(245,506)	(239,248)
Total liabilities	(245,506)	(239,248)
Equity
William Lyon Homes stockholders’ equity (deficit)	(38,637)	(36,027)
Noncontrolling interests	0	0
Total liabilities and equity	(284,143)	(275,275)
Consolidation, Eliminations | Subordinated amortizing notes
LIABILITIES AND EQUITY
Total debt	0	0
Consolidation, Eliminations | 5 3/4% Senior Notes due April 15, 2019
LIABILITIES AND EQUITY
Total debt	0	0
Consolidation, Eliminations | 8 1/2% Senior Notes due November 15, 2020
LIABILITIES AND EQUITY
Total debt	0	0
Consolidation, Eliminations | 7% Senior Notes due August 15, 2022
LIABILITIES AND EQUITY
Total debt	$ 0	$ 0

Senior Notes, Secured, and Un49

Senior Notes, Secured, and Unsecured Indebtedness - Condensed Consolidating Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Operating revenue
Sales	$ 325,059	$ 247,740	$ 586,354	$ 437,455
Construction services	594	6,955	3,724	14,408
Management fees	0	0	0	0
Operating revenue	325,653	254,695	590,078	451,863
Operating costs
Cost of sales — homes	(268,638)	(200,248)	(483,809)	(354,329)
Construction services	(548)	(5,898)	(3,372)	(11,927)
Sales and marketing	(18,112)	(14,904)	(33,105)	(27,128)
General and administrative	(16,685)	(13,415)	(34,519)	(27,363)
Amortization of intangible assets	0	(462)	0	(665)
Other	(487)	(421)	(810)	(957)
Total operating costs	(304,470)	(235,348)	(555,615)	(422,369)
Income from subsidiaries	0	0	0	0
Operating income (loss)	21,183	19,347	34,463	29,494
Equity in income of unconsolidated joint ventures	1,194	515	2,375	763
Other income (expense), net	228	642	753	1,423
Income (loss) before provision for income taxes	22,605	20,504	37,591	31,680
Provision for income taxes	(7,519)	(7,254)	(12,564)	(10,824)
Net income (loss)	15,086	13,250	25,027	20,856
Less: Net income attributable to noncontrolling interests	(525)	(973)	(1,452)	(1,897)
Net income available to common stockholders	14,561	12,277	23,575	18,959
Reporting Entities | 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 — homes	0	0	0	0
Construction services	0	0	0	0
Sales and marketing	0	0	0	0
General and administrative	0	0	0	0
Amortization of intangible assets		0	0	0
Other	0	0	0	0
Total operating costs	0	0	0	0
Income from subsidiaries	14,561	12,277	23,575	18,959
Operating income (loss)	14,561	12,277	23,575	18,959
Equity in income of unconsolidated joint ventures	0	0	0	0
Other income (expense), net	0	0	0	0
Income (loss) before provision for income taxes	14,561	12,277	23,575	18,959
Provision for income taxes	0	0	0	0
Net income (loss)	14,561	12,277	23,575	18,959
Less: Net income attributable to noncontrolling interests	0	0	0	0
Net income available to common stockholders	14,561	12,277	23,575	18,959
Reporting Entities | California Lyon
Operating revenue
Sales	137,673	104,998	238,497	194,542
Construction services	594	6,955	3,724	14,408
Management fees	(366)	(195)	(1,046)	(706)
Operating revenue	137,901	111,758	241,175	208,244
Operating costs
Cost of sales — homes	(112,950)	(80,482)	(191,829)	(149,358)
Construction services	(548)	(5,898)	(3,372)	(11,927)
Sales and marketing	(5,925)	(6,412)	(11,875)	(12,166)
General and administrative	(13,475)	(10,669)	(27,481)	(21,988)
Amortization of intangible assets		(462)	0	(665)
Other	(358)	(646)	(727)	(1,782)
Total operating costs	(133,256)	(104,569)	(235,284)	(197,886)
Income from subsidiaries	1,687	276	3,924	(6,468)
Operating income (loss)	6,332	7,465	9,815	3,890
Equity in income of unconsolidated joint ventures	859	245	1,861	245
Other income (expense), net	550	840	1,323	5,206
Income (loss) before provision for income taxes	7,741	8,550	12,999	9,341
Provision for income taxes	(7,519)	(7,254)	(12,564)	(10,824)
Net income (loss)	222	1,296	435	(1,483)
Less: Net income attributable to noncontrolling interests	0	0	0	0
Net income available to common stockholders	222	1,296	435	(1,483)
Reporting Entities | Guarantor Subsidiaries
Operating revenue
Sales	175,203	136,263	313,003	219,397
Construction services	0	0	0	0
Management fees	0	0	0	0
Operating revenue	175,203	136,263	313,003	219,397
Operating costs
Cost of sales — homes	(144,473)	(114,216)	(260,033)	(184,600)
Construction services	0	0	0	0
Sales and marketing	(9,332)	(7,776)	(16,957)	(13,300)
General and administrative	(3,210)	(2,746)	(7,038)	(5,375)
Amortization of intangible assets		0	0	0
Other	(129)	225	(83)	825
Total operating costs	(157,144)	(124,513)	(284,111)	(202,450)
Income from subsidiaries	0	0	0	0
Operating income (loss)	18,059	11,750	28,892	16,947
Equity in income of unconsolidated joint ventures	335	270	514	518
Other income (expense), net	(6)	(14)	(15)	4,799
Income (loss) before provision for income taxes	18,388	12,006	29,391	22,264
Provision for income taxes	0	0	0	0
Net income (loss)	18,388	12,006	29,391	22,264
Less: Net income attributable to noncontrolling interests	0	0	0	0
Net income available to common stockholders	18,388	12,006	29,391	22,264
Reporting Entities | Non-Guarantor Subsidiaries
Operating revenue
Sales	12,183	6,479	34,854	23,516
Construction services	0	0	0	0
Management fees	0	0	0	0
Operating revenue	12,183	6,479	34,854	23,516
Operating costs
Cost of sales — homes	(10,849)	(5,355)	(30,901)	(19,665)
Construction services	0	0	0	0
Sales and marketing	(2,855)	(716)	(4,273)	(1,662)
General and administrative	0	0	0	0
Amortization of intangible assets		0	0	0
Other	0	0	0	0
Total operating costs	(13,704)	(6,071)	(35,174)	(21,327)
Income from subsidiaries	0	0	0	0
Operating income (loss)	(1,521)	408	(320)	2,189
Equity in income of unconsolidated joint ventures	0	0	0	0
Other income (expense), net	(316)	(184)	(555)	(8,582)
Income (loss) before provision for income taxes	(1,837)	224	(875)	(6,393)
Provision for income taxes	0	0		0
Net income (loss)	(1,837)	224	(875)	(6,393)
Less: Net income attributable to noncontrolling interests	(525)	(973)	(1,452)	(1,897)
Net income available to common stockholders	(2,362)	(749)	(2,327)	(8,290)
Consolidation, Eliminations
Operating revenue
Sales	0	0	0	0
Construction services	0	0	0	0
Management fees	366	195	1,046	706
Operating revenue	366	195	1,046	706
Operating costs
Cost of sales — homes	(366)	(195)	(1,046)	(706)
Construction services	0	0	0	0
Sales and marketing	0	0	0	0
General and administrative	0	0	0
Amortization of intangible assets		0	0	0
Other	0	0	0	0
Total operating costs	(366)	(195)	(1,046)	(706)
Income from subsidiaries	(16,248)	(12,553)	(27,499)	(12,491)
Operating income (loss)	(16,248)	(12,553)	(27,499)	(12,491)
Equity in income of unconsolidated joint ventures	0	0	0	0
Other income (expense), net	0	0	0	0
Income (loss) before provision for income taxes	(16,248)	(12,553)	(27,499)	(12,491)
Provision for income taxes	0	0	0	0
Net income (loss)	(16,248)	(12,553)	(27,499)	(12,491)
Less: Net income attributable to noncontrolling interests	0	0	0	0
Net income available to common stockholders	$ (16,248)	$ (12,553)	$ (27,499)	$ (12,491)

Senior Notes, Secured, and Un50

Senior Notes, Secured, and Unsecured Indebtedness - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating activities
Net cash (used in) provided by operating activities	$ (74,905)	$ (104,940)
Investing activities
Collection of related party note receivable	6,188	0
Investments in and advances to unconsolidated joint ventures		(1,000)
Purchases of property and equipment	(619)	(247)
Investments in subsidiaries	0	0
Net cash provided by (used in) investing activities	5,569	(1,247)
Financing activities
Proceeds from borrowings on notes payable	82,869	28,394
Principal payments on notes payable	(42,099)	(11,848)
Proceeds from borrowings on Revolver	120,000	144,000
Payments on Revolver	(126,000)	(40,000)
Principal payments on subordinated amortizing notes	(3,374)	(3,368)
Payment of deferred loan costs	(214)	(799)
Proceeds from stock options exercised	0	106
Shares remitted to, or withheld by the Company for employee tax withholding	(844)	(1,632)
Excess income tax benefit from stock based awards	(178)	0
Noncontrolling interest contributions	33,963	5,625
Noncontrolling interest distributions	(5,226)	(6,417)
Advances to affiliates	0	0
Intercompany receivables/payables	0	0
Net cash provided by financing activities	58,897	114,061
Net (decrease) increase in cash and cash equivalents	(10,439)	7,874
Cash and cash equivalents — beginning of period	50,203	52,771
Cash and cash equivalents — end of period	39,764	60,645
Reporting Entities | Delaware Lyon
Operating activities
Net cash (used in) provided by operating activities	(1,539)	(1,631)
Investing activities
Collection of related party note receivable	0
Investments in and advances to unconsolidated joint ventures		0
Purchases of property and equipment	0	0
Investments in subsidiaries	0	0
Net cash provided by (used in) investing activities	0	0
Financing activities
Proceeds from borrowings on notes payable	0	0
Principal payments on notes payable	0	0
Proceeds from borrowings on Revolver	0	0
Payments on Revolver	0	0
Principal payments on subordinated amortizing notes	0	0
Payment of deferred loan costs	0	0
Proceeds from stock options exercised		0
Shares remitted to, or withheld by the Company for employee tax withholding	0	0
Excess income tax benefit from stock based awards	0
Noncontrolling interest contributions	0	0
Noncontrolling interest distributions	0	0
Advances to affiliates	0	0
Intercompany receivables/payables	1,539	1,631
Net cash provided by financing activities	1,539	1,631
Net (decrease) increase in cash and cash equivalents	0	0
Cash and cash equivalents — beginning of period	0	0
Cash and cash equivalents — end of period	0	0
Reporting Entities | California Lyon
Operating activities
Net cash (used in) provided by operating activities	33,612	(98,069)
Investing activities
Collection of related party note receivable	6,188
Investments in and advances to unconsolidated joint ventures		(1,000)
Purchases of property and equipment	(647)	(303)
Investments in subsidiaries	(4,244)	(5,004)
Net cash provided by (used in) investing activities	1,297	(6,307)
Financing activities
Proceeds from borrowings on notes payable	2,211	0
Principal payments on notes payable	(8,084)	(2,385)
Proceeds from borrowings on Revolver	120,000	144,000
Payments on Revolver	(126,000)	(40,000)
Principal payments on subordinated amortizing notes	(3,374)	(3,368)
Payment of deferred loan costs	(214)	(799)
Proceeds from stock options exercised		106
Shares remitted to, or withheld by the Company for employee tax withholding	(844)	(1,632)
Excess income tax benefit from stock based awards	(178)
Noncontrolling interest contributions	0	0
Noncontrolling interest distributions	0	0
Advances to affiliates	0	0
Intercompany receivables/payables	(28,035)	12,599
Net cash provided by financing activities	(44,518)	108,521
Net (decrease) increase in cash and cash equivalents	(9,609)	4,145
Cash and cash equivalents — beginning of period	44,332	48,462
Cash and cash equivalents — end of period	34,723	52,607
Reporting Entities | Guarantor Subsidiaries
Operating activities
Net cash (used in) provided by operating activities	(22,138)	13,591
Investing activities
Collection of related party note receivable	0
Investments in and advances to unconsolidated joint ventures		0
Purchases of property and equipment	44	41
Investments in subsidiaries	30,672	(6,627)
Net cash provided by (used in) investing activities	30,716	(6,586)
Financing activities
Proceeds from borrowings on notes payable	0	0
Principal payments on notes payable	0	(162)
Proceeds from borrowings on Revolver	0	0
Payments on Revolver	0	0
Principal payments on subordinated amortizing notes	0	0
Payment of deferred loan costs	0	0
Proceeds from stock options exercised		0
Shares remitted to, or withheld by the Company for employee tax withholding	0	0
Excess income tax benefit from stock based awards	0
Noncontrolling interest contributions	0	0
Noncontrolling interest distributions	0	0
Advances to affiliates	(4,480)	(4,807)
Intercompany receivables/payables	(6,258)	(1,845)
Net cash provided by financing activities	(10,738)	(6,814)
Net (decrease) increase in cash and cash equivalents	(2,160)	191
Cash and cash equivalents — beginning of period	2,723	573
Cash and cash equivalents — end of period	563	764
Reporting Entities | Non-Guarantor Subsidiaries
Operating activities
Net cash (used in) provided by operating activities	(86,379)	(20,462)
Investing activities
Collection of related party note receivable	0
Investments in and advances to unconsolidated joint ventures		0
Purchases of property and equipment	(16)	15
Investments in subsidiaries	0	0
Net cash provided by (used in) investing activities	(16)	15
Financing activities
Proceeds from borrowings on notes payable	80,658	28,394
Principal payments on notes payable	(34,015)	(9,301)
Proceeds from borrowings on Revolver	0	0
Payments on Revolver	0	0
Principal payments on subordinated amortizing notes	0	0
Payment of deferred loan costs	0	0
Proceeds from stock options exercised		0
Shares remitted to, or withheld by the Company for employee tax withholding	0	0
Excess income tax benefit from stock based awards	0
Noncontrolling interest contributions	33,963	5,625
Noncontrolling interest distributions	(5,226)	(6,417)
Advances to affiliates	10,495	6,826
Intercompany receivables/payables	1,850	(1,142)
Net cash provided by financing activities	87,725	23,985
Net (decrease) increase in cash and cash equivalents	1,330	3,538
Cash and cash equivalents — beginning of period	3,148	3,736
Cash and cash equivalents — end of period	4,478	7,274
Consolidation, Eliminations
Operating activities
Net cash (used in) provided by operating activities	1,539	1,631
Investing activities
Collection of related party note receivable	0
Investments in and advances to unconsolidated joint ventures		0
Purchases of property and equipment	0	0
Investments in subsidiaries	(26,428)	11,631
Net cash provided by (used in) investing activities	(26,428)	11,631
Financing activities
Proceeds from borrowings on notes payable	0	0
Principal payments on notes payable		0
Proceeds from borrowings on Revolver		0
Payments on Revolver	0	0
Principal payments on subordinated amortizing notes	0	0
Payment of deferred loan costs	0	0
Proceeds from stock options exercised		0
Shares remitted to, or withheld by the Company for employee tax withholding	0	0
Excess income tax benefit from stock based awards	0
Noncontrolling interest contributions	0	0
Noncontrolling interest distributions	0	0
Advances to affiliates	(6,015)	(2,019)
Intercompany receivables/payables	30,904	(11,243)
Net cash provided by financing activities	24,889	(13,262)
Net (decrease) increase in cash and cash equivalents	0	0
Cash and cash equivalents — beginning of period	0	0
Cash and cash equivalents — end of period	$ 0	$ 0

Fair Value of Financial Instr51

Fair Value of Financial Instruments - Schedule of Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Financial liabilities:
Notes payable, fair value	$ 239,390	$ 175,181
Subordinated amortizing notes
Financial liabilities:
Long-term Debt, Fair Value	8,704	12,122
5 3/4% Senior Notes due April 15, 2019
Financial liabilities:
Long-term Debt, Fair Value	$ 147,750	$ 147,750
Stated interest rate	5.75%	5.75%
8 1/2% Senior Notes due November 15, 2020
Financial liabilities:
Long-term Debt, Fair Value	$ 442,000	$ 449,438
Stated interest rate	8.50%	8.50%
7% Senior Notes due August 15, 2022
Financial liabilities:
Long-term Debt, Fair Value	$ 348,250	$ 350,875
Stated interest rate	7.00%	7.00%
Carrying Amount
Financial liabilities:
Notes payable, fair value	$ 239,390	$ 175,181
Carrying Amount | Subordinated amortizing notes
Financial liabilities:
Long-term Debt, Fair Value	10,692	14,066
Carrying Amount | 5 3/4% Senior Notes due April 15, 2019
Financial liabilities:
Long-term Debt, Fair Value	148,555	148,295
Carrying Amount | 8 1/2% Senior Notes due November 15, 2020
Financial liabilities:
Long-term Debt, Fair Value	422,872	422,896
Carrying Amount | 7% Senior Notes due August 15, 2022
Financial liabilities:
Long-term Debt, Fair Value	$ 345,661	$ 345,338

Related Party Transactions - Na

Related Party Transactions - Narrative (Details) $ in Millions	Sep. 03, 2009USD ($)
Related Party Transactions [Abstract]
Aggregate purchase price of aircraft	$ 8.3
Cash paid on sale of aircraft	2.1
Promissory note from the affiliate	6.2
Semiannual interest payments received	$ 0.1
Maturity date	Sep. 30, 2016

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Taxes [Line Items]
Effective income tax rate	33.30%	35.40%	33.40%	34.20%
Valuation allowance	$ 0		$ 0
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 carryforwards	0		0
Unused built-in losses	53,200,000		53,200,000
State
Income Taxes [Line Items]
Operating loss carryforwards	54,600,000		54,600,000
Unused built-in losses	$ 7,500,000		$ 7,500,000

Income Per Common Share - Sched

Income Per Common Share - Schedule of Basic and Diluted Income Per Common Share Calculation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Basic weighted average number of common shares outstanding (in shares)	36,786,268	36,565,369	36,719,057	36,514,962
Effect of dilutive securities:
Stock options, unvested common shares, and warrants (in shares)	675,524	1,461,497	688,060	1,361,734
Tangible equity units (in shares)	894,930	0	894,930	0
Diluted average shares outstanding (in shares)	38,356,722	38,026,866	38,302,047	37,876,696
Net income available to common stockholders	$ 14,561	$ 12,277	$ 23,575	$ 18,959
Basic income per common share (in USD per share)	$ 0.40	$ 0.34	$ 0.64	$ 0.52
Dilutive income per common share (in USD per share)	$ 0.38	$ 0.32	$ 0.62	$ 0.50
Unvested Stock Options
Antidilutive securities not included in the calculation of diluted income per common share (weighted average):
Antidilutive securities (in shares)	240,000	240,000	240,000	120,000
Warrants
Antidilutive securities not included in the calculation of diluted income per common share (weighted average):
Antidilutive securities (in shares)	1,907,551	0	1,907,551	0
Tangible Equity Units
Antidilutive securities not included in the calculation of diluted income per common share (weighted average):
Antidilutive securities (in shares)	0	894,930	0	894,930

Stock Based Compensation - Narr

Stock Based Compensation - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 1,100,000	$ 1,800,000	$ 2,561,000	$ 3,157,000
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of stock (in shares)			259,797
Restricted stock | Other Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of stock (in shares)			218,733
Restricted stock | Non Employee Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of stock (in shares)			41,064
Restricted stock | Share-based Compensation Award, Tranche One | Non Employee Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards, vesting percentage			25.00%
Restricted stock | Share-based Compensation Award, Tranche Two | Non Employee Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards, vesting percentage			25.00%
Restricted stock | Share-based Compensation Award, Tranche Three | Non Employee Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards, vesting percentage			25.00%
Restricted stock | Share-based Compensation Award, Tranche Four | Non Employee Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards, vesting percentage			25.00%
Three Year Vesting Restricted Stock | Other Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of stock (in shares)			163,269
Three Year Vesting Restricted Stock | Share-based Compensation Award, Tranche One | Other Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards, vesting percentage			33.33%
Three Year Vesting Restricted Stock | Share-based Compensation Award, Tranche Two | Other Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards, vesting percentage			33.33%
Three Year Vesting Restricted Stock | Share-based Compensation Award, Tranche Three | Other Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards, vesting percentage			33.33%
Two Year Vesting Restricted Stock | Other Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of stock (in shares)			55,464
Two Year Vesting Restricted Stock | Share-based Compensation Award, Tranche One | Other Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards, vesting percentage			50.00%
Two Year Vesting Restricted Stock | Share-based Compensation Award, Tranche Two | Other Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards, vesting percentage			50.00%
Performance Based Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of stock (in shares)			566,092
Compensation expense recognized			$ 0
Performance Based Restricted Stock | Share-based Compensation Award, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards, vesting percentage			33.33%
Performance Based Restricted Stock | Share-based Compensation Award, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards, vesting percentage			33.33%
Performance Based Restricted Stock | Share-based Compensation Award, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards, vesting percentage			33.33%

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Loss Contingencies [Line Items]
Rent expense under cancelable and non-cancelable operating leases	$ 0.9	$ 0.8	$ 1.9	$ 1.7
Deposits as collateral for outstanding surety bonds	0		0		$ 0.5
Outstanding performance and surety bonds	174.3		174.3
Non-refundable deposits	65		65
Remaining purchase price of land	456.9		456.9
Project construction commitment
Loss Contingencies [Line Items]
Other commitment	$ 277		$ 277

Commitments and Contingencies57

Commitments and Contingencies - Schedule of Future Minimum Payments Under Non-Cancelable Operating Leases (Details) $ in Thousands	Jun. 30, 2016USD ($)
Future Minimum Payments Under Non-cancelable Operating Leases
2,016	$ 1,099
2,017	2,271
2,018	2,264
2,019	2,053
2,020	1,832
Thereafter	2,603
Total	$ 12,122