William Lyon Homes (WLH) 10-Q 7 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 04, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
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		27,885,880
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	Sep. 30, 2016	Dec. 31, 2015
ASSETS
Cash and cash equivalents	$ 40,710	$ 50,203
Restricted cash	0	504
Receivables	8,121	14,838
Escrow proceeds receivable	0	3,041
Real estate inventories	1,856,034	1,675,106
Investment in joint ventures	8,414	5,413
Goodwill	66,902	66,902
Intangibles, net of accumulated amortization of $4,640 as of September 30, 2016 and December 31, 2015	6,700	6,700
Deferred income taxes, net	79,728	79,726
Other assets, net	17,321	21,017
Total Assets	2,083,930	1,923,450
LIABILITIES AND EQUITY
Accounts payable	76,921	75,881
Accrued expenses	82,012	70,324
Notes payable	259,342	175,181
Total senior notes	1,185,684	1,105,776
Total liabilities	1,344,617	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 September 30, 2016 and December 31, 2015, respectively	0	0
Additional paid-in capital	416,736	413,810
Retained earnings	254,607	217,963
Total William Lyon Homes stockholders’ equity	671,670	632,095
Noncontrolling interests	67,643	39,374
Total equity	739,313	671,469
Total liabilities and equity	2,083,930	1,923,450
Common stock, Class A, par value $0.01 per share; 150,000,000 shares authorized; 28,902,681 and 28,363,879 shares issued, 27,885,880 and 27,657,435 outstanding at September 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 September 30, 2016 and December 31, 2015
Equity:
Common stock	38	38
Senior unsecured loan facility
LIABILITIES AND EQUITY
Total senior notes	8,970	14,066
5 3/4% Senior Notes due April 15, 2019
LIABILITIES AND EQUITY
Total senior notes	148,691	148,295
8 1/2% Senior Notes due November 15, 2020
LIABILITIES AND EQUITY
Total senior notes	422,852	422,896
7% Senior Notes due August 15, 2022
LIABILITIES AND EQUITY
Total senior notes	$ 345,829	$ 345,338

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 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)	28,902,681	28,363,879
Common stock, shares outstanding (in shares)	27,885,880	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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Operating revenue
Home sales	$ 342,628	$ 244,311	$ 928,982	$ 681,766
Construction services	86	4,896	3,810	19,304
Operating revenue	342,714	249,207	932,792	701,070
Operating costs
Cost of sales — homes	(285,896)	(200,328)	(769,705)	(554,657)
Construction services	(86)	(4,146)	(3,458)	(16,073)
Sales and marketing	(18,246)	(15,352)	(51,351)	(42,480)
General and administrative	(17,360)	(13,981)	(51,879)	(41,344)
Amortization of intangible assets	0	(45)	0	(710)
Other	198	(592)	(612)	(1,549)
Total operating costs	(321,390)	(234,444)	(877,005)	(656,813)
Operating income (loss)	21,324	14,763	55,787	44,257
Equity in income of unconsolidated joint ventures	1,435	1,018	3,810	1,781
Other income, net	2,050	1,452	2,803	2,875
Income (loss) before provision for income taxes	24,809	17,233	62,400	48,913
Provision for income taxes	(8,295)	(4,956)	(20,859)	(15,780)
Net income (loss)	16,514	12,277	41,541	33,133
Less: Net income attributable to noncontrolling interests	(3,445)	(195)	(4,897)	(2,092)
Net income available to common stockholders	$ 13,069	$ 12,082	$ 36,644	$ 31,041
Income per common share:
Basic (in USD per share)	$ 0.36	$ 0.33	$ 1	$ 0.85
Diluted (in USD per share)	$ 0.34	$ 0.31	$ 0.96	$ 0.81
Weighted average common shares outstanding:
Basic (in shares)	36,801,464	36,573,099	36,746,727	36,534,554
Diluted (in shares)	38,333,027	38,507,267	38,314,021	38,400,236

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENT OF EQUITY - 9 months ended Sep. 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	41,541			36,644	4,897
Cash contributions from members of consolidated entities	36,140				36,140
Cash distributions to members of consolidated entities	(12,768)				(12,768)
Shares remitted to Company to satisfy employee tax obligations	(918)	$ (1)	(917)
Shares remitted to Company to satisfy employee tax obligations (in shares)		(75)
Stock based compensation expense	4,087	$ 6	4,081
Stock based compensation expense (in shares)		613
Reversal of excess income tax benefit from stock based awards	(238)		(238)
Ending Balance at Sep. 30, 2016	$ 739,313	$ 327	$ 416,736	$ 254,607	$ 67,643
Ending Balance (in shares) at Sep. 30, 2016		32,716

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating activities
Net income	$ 41,541	$ 33,133
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	1,506	1,936
Net change in deferred income taxes	(2)	(1,448)
Stock based compensation expense	4,087	4,828
Equity in earnings of unconsolidated joint ventures	(3,810)	(1,781)
Distributions from unconsolidated joint ventures	896	696
Net changes in operating assets and liabilities:
Restricted cash	504	0
Receivables	442	(2,322)
Escrow proceeds receivable	3,041	(2,905)
Real estate inventories	(146,678)	(323,693)
Other assets	2,806	(2,339)
Accounts payable	1,040	63,494
Accrued expenses	11,649	10,047
Net cash used in operating activities	(82,978)	(220,354)
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	(773)	(1,288)
Net cash provided by (used in) investing activities	5,415	(2,288)
Financing activities
Proceeds from borrowings on notes payable	111,992	84,926
Principal payments on notes payable	(91,250)	(21,123)
Proceeds from issuance of 7% senior notes	0	51,000
Proceeds from borrowings on Revolver	198,000	194,000
Payments on Revolver	(167,000)	(109,000)
Principal payments on subordinated amortizing notes	(5,096)	(4,999)
Payment of deferred loan costs	(792)	(1,755)
Proceeds from stock options exercised	0	106
Shares remitted to, or withheld by the Company for employee tax withholding	(918)	(1,826)
Excess income tax benefit from stock based awards	(238)	0
Noncontrolling interest contributions	36,140	13,125
Noncontrolling interest distributions	(12,768)	(8,204)
Net cash provided by financing activities	68,070	196,250
Net decrease in cash and cash equivalents	(9,493)	(26,392)
Cash and cash equivalents — beginning of period	50,203	52,771
Cash and cash equivalents — end of period	40,710	26,379
Supplemental disclosures:
Cash paid during the period for income taxes	6,914	10,731
Supplemental disclosures of non-cash investing and financing activities:
Issuance of note payable related to land acquisition	32,419	9,500
Accrued deferred loan costs	$ 43	$ 0

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	9 Months Ended
	Sep. 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 September 30, 2016 and December 31, 2015 and revenues and expenses for the three and nine month periods ended September 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 three and nine months ended September 30, 2016 the Company sold two and five parcels of land, respectively, resulting in a $2.7 million gain for both periods then ended. 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 nine months ended September 30, 2016 and 2015 , are as follows (in thousands): Nine Nine Warranty liability, beginning of period $ 18,117 $ 18,155 Warranty provision during period 7,086 4,570 Warranty payments during period (10,579 ) (5,870 ) Warranty charges related to construction services projects 128 747 Warranty liability, end of period $ 14,752 $ 17,602 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 nine months ended September 30, 2016 and 2015 are as follows (in thousands): Three Three Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Interest incurred $ 21,293 $ 19,271 $ 62,112 $ 55,915 Less: Interest capitalized 21,293 19,271 62,112 55,915 Interest expense, net of amounts capitalized $ — $ — $ — $ — Cash paid for interest $ 14,898 $ 12,565 $ 54,576 $ 47,590 Construction Services The Company accounts for construction management agreements using the Percentage of Completion Method in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 605 Revenue Recognition (“ASC 605”). Under ASC 605, the Company records revenues and expenses as a contracted project progresses, and based on the percentage of costs incurred to date compared to the total estimated costs of the contract. The Company entered into construction management agreements to build, sell and market homes in certain communities. For such services, the Company will receive fees (generally 3 to 5 percent of the sales price, as defined) and may, under certain circumstances, receive additional compensation if certain financial thresholds are achieved. Financial Instruments Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash and cash equivalents, restricted cash, receivables, and deposits. The Company typically places its cash and cash equivalents in investment grade short-term instruments. Deposits, included in other assets, are due from municipalities or utility companies and are generally collected from such entities through fees assessed to other developers. The Company is an issuer of, or subject to, financial instruments with off-balance sheet risk in the normal course of business which exposes it to credit risks. These financial instruments include letters of credit and obligations in connection with assessment district bonds. These off-balance sheet financial instruments are described in more detail in Note 12. Cash and Cash Equivalents Short-term investments with a maturity of three months or less when purchased are considered cash equivalents. The Company’s cash and cash equivalents balance exceeds federally insurable limits as of September 30, 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 February 2016, the FASB issued ASU No. 2016-02, " Leases (Topic 842) " ("ASU 2016-02"), which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets. ASU 2016-02 requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. ASU 2016-02 is effective for annual and interim periods in fiscal years beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the potential impact the adoption of ASU 2016-02 will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 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 does not expect the adoption of ASU 2016-09 will have a material effect on its consolidated financial statements. Reclassifications Certain balances on the financial statements and certain amounts presented in the notes have been reclassified in order to conform to current year presentation.

Variable Interest Entities and

Variable Interest Entities and Noncontrolling Interests	9 Months Ended
	Sep. 30, 2016
Noncontrolling Interest [Abstract]
Variable Interest Entities and Noncontrolling Interests	Variable Interest Entities and Noncontrolling Interests As of September 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 September 30, 2016 and December 31, 2015 . As of September 30, 2016 , the assets of the consolidated VIEs totaled $226.1 million , of which $4.1 million was cash and cash equivalents and $221.2 million was real estate inventories. The liabilities of the consolidated VIEs totaled $129.3 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	9 Months Ended
	Sep. 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 September 30, 2016 Three Months Ended September 30, 2015 Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Revenues $ 5,397 $ 3,100 $ 14,675 $ 6,634 Cost of sales (2,521 ) (1,453 ) (7,043 ) (3,459 ) Income of unconsolidated joint ventures $ 2,876 $ 1,647 $ 7,632 $ 3,175 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 nine months ended September 30, 2016 , and 2015 , the Company recorded income of $1.4 million and $3.8 million , and $1.0 million and $1.8 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 nine months ended September 30, 2016 , and 2015 , all of our unconsolidated joint ventures were reviewed for impairment. Based on the impairment review, no investments in 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): September 30, 2016 December 31, 2015 Assets Cash $ 12,156 $ 6,340 Loans held for sale 20,525 29,312 Accounts receivable 1,081 309 Other assets 44 390 Total Assets $ 33,806 $ 36,351 Liabilities and Equity Accounts payable $ 499 $ 651 Accrued expenses 981 774 Credit lines payable 19,249 27,350 Other liabilities 18 515 Members equity 13,059 7,061 Total Liabilities and Equity $ 33,806 $ 36,351

Segment Information

Segment Information	9 Months Ended
	Sep. 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 Nine Nine Operating revenue: California (1) $ 111,520 $ 65,661 $ 309,199 $ 240,115 Arizona 28,758 21,088 85,399 38,782 Nevada 49,600 31,924 128,996 89,937 Colorado 35,316 23,864 85,885 69,457 Washington 42,247 46,905 112,512 124,371 Oregon 75,273 59,765 210,801 138,408 Total operating revenue $ 342,714 $ 249,207 $ 932,792 $ 701,070 (1) Operating revenue in the California segment includes construction services revenue. Three Three Nine Nine Income before provision for income taxes: California $ 10,364 $ 5,679 $ 28,252 $ 26,756 Arizona 2,542 1,692 7,537 2,302 Nevada 5,291 2,611 12,587 8,660 Colorado 2,342 742 3,643 1,381 Washington 2,899 5,609 6,767 12,501 Oregon 9,466 6,698 27,452 14,809 Corporate (8,095 ) (5,798 ) (23,838 ) (17,496 ) Income before provision for income taxes $ 24,809 $ 17,233 $ 62,400 $ 48,913 September 30, 2016 December 31, 2015 Homebuilding assets: California $ 756,603 $ 721,066 Arizona 203,015 197,828 Nevada 200,652 183,019 Colorado 135,680 118,307 Washington 331,313 249,615 Oregon 258,729 228,183 Corporate (1) 197,938 225,432 Total homebuilding assets $ 2,083,930 $ 1,923,450 (1) Comprised primarily of cash and cash equivalents, deferred income taxes, receivables, and other assets.

Real Estate Inventories

Real Estate Inventories	9 Months Ended
	Sep. 30, 2016
Real Estate [Abstract]
Real Estate Inventories	Real Estate Inventories Real estate inventories consist of the following (in thousands): September 30, 2016 December 31, 2015 Real estate inventories: Land deposits $ 55,612 $ 61,514 Land and land under development 1,056,781 1,013,650 Homes completed and under construction 634,621 495,966 Model homes 109,020 103,976 Total $ 1,856,034 $ 1,675,106

Senior Notes, Secured, and Unse

Senior Notes, Secured, and Unsecured Indebtedness	9 Months Ended
	Sep. 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): September 30, 2016 December 31, 2015 Notes payable: Construction notes payable $ 130,923 $ 110,181 Seller financing 32,419 — Revolving line of credit 96,000 65,000 Total notes payable 259,342 175,181 Subordinated amortizing notes 8,970 14,066 Senior notes: 5 3 / 4 % Senior Notes due April 15, 2019 148,691 148,295 8 1 / 2 % Senior Notes due November 15, 2020 422,852 422,896 7% Senior Notes due August 15, 2022 345,829 345,338 Total senior notes 917,372 916,529 Total notes payable and senior notes $ 1,185,684 $ 1,105,776 As of September 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 $ — 2017 78,844 2018 59,814 2019 279,654 2020 425,000 Thereafter 350,000 $ 1,193,312 Maturities above exclude premium on the 8 1 / 2 % and 7% Senior Notes in an aggregate of $3.8 million , and deferred loan costs on the 5 3 / 4 %, 8 1 / 2 % and 7% Senior Notes of $11.4 million as of September 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 September 30, 2016 (in millions): Issuance Date Facility Size Outstanding Maturity Current Rate March, 2016 $ 33.4 $ 15.8 September, 2018 3.53 % (1) January, 2016 35.0 18.8 February, 2019 3.78 % (2) November, 2015 42.5 19.5 November, 2017 4.50 % (1) August, 2015 (4) 14.2 0.7 August, 2017 4.50 % (1) August, 2015 (4) 37.5 7.0 August, 2017 4.50 % (1) July, 2015 22.5 14.8 July, 2018 4.00 % (3) April, 2015 18.5 13.9 October, 2017 4.00 % (3) November, 2014 24.0 13.1 November, 2017 4.00 % (3) November, 2014 22.0 12.7 November, 2017 4.00 % (3) March, 2014 26.0 14.6 April, 2018 3.53 % (1) $ 275.6 $ 130.9 (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. The construction notes payable contain certain financial maintenance covenants. The Company was in compliance with all such covenants as of September 30, 2016 . Seller Financing At September 30, 2016 , the Company had $32.4 million of notes payable outstanding related to two land acquisitions for which seller financing was provided. The first note of approximately $3.0 million bears interest at a rate of 7% per annum, is secured by the underlying land, and matures in August 2017. This note was entered into with a related party. Refer to Note 8 for more details regarding the related party transaction. The second note of $29.4 million bears interest at 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 , California Lyon and Parent entered into an 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. Further, the Second Amended Facility amended the maximum leverage ratio covenant to extend the timing of the gradual step-downs. Specifically, pursuant to the Second Amended Facility, the maximum leverage ratio will remain at 65% from June 30, 2016 through and including December 30, 2016, will decrease to 62.5% on the last day of the 2016 fiscal year, remain at 62.5% from December 31, 2016 through and including June 29, 2017, and will further decrease to 60% on the last day of the second quarter of 2017 and remain at 60% thereafter. The Second Amended Facility did not revise any of our other financial covenants thereunder. Prior to the entry into the Second Amended Facility as described above, on March 27, 201 5, California Lyon and Parent entered into an amendment and restatement agreement which amended and restated the Company's previous $100 million revolving credit facility and provided for total lending commitments of $130.0 million , an uncommitted accordion feature under which the Company could 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 . The Second Amended Facility contains certain financial maintenance covenants, including (a) a minimum tangible net worth requirement of $451.0 million (which is subject to increase over time based on subsequent earnings and proceeds from equity offerings, as well as deferred tax assets to the extent included on the Company's financial statements), (b) a maximum leverage covenant that prohibits the leverage ratio (as defined therein) from exceeding 65% , which maximum leverage ratio decreases to 62.5% effective as of December 31, 2016, and further decreases to 60% effective as of June 30, 2017, and (c) a covenant requiring us to maintain either (i) an interest coverage ratio (EBITDA to interest incurred, as defined therein) of at least 1.50 to 1.00 or (ii) liquidity (as defined therein) of an amount not less than the greater of our consolidated interest incurred during the trailing 12 months and $50.0 million . Our compliance with these financial covenants is measured by calculations and metrics that are specifically defined or described by the terms of the Second Amended Facility and can differ in certain respects from comparable GAAP or other commonly used terms. The Second 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 Second Amended Facility and permit the lenders to accelerate payment on outstanding borrowings under the Second Amended Facility and require cash collateralization of outstanding letters of credit. If a change in control (as defined in the Second Amended Facility) occurs, the lenders may terminate the commitments under the Second Amended Facility and require that the Company repay outstanding borrowings under the Second 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. The Company was in compliance with all covenants under the Second Amended Facility as of September 30, 2016 . Borrowings under the Second Amended Facility, the availability of which is subject to a borrowing base formula, are required to be guaranteed by the Parent and certain of the Parent's wholly-owned subsidiaries, are secured by a pledge of all equity interests held by such guarantors, and may be used for general corporate purposes. Interest rates on borrowings generally will be based on either LIBOR or a base rate, plus the applicable spread. As of September 30, 2016 , the commitment fee on the unused portion of the Second Facility accrues at an annual rate of 0.50 %. As of September 30, 2016 and December 31, 2015 , the Company had $96.0 million and $65.0 million outstanding against the Second Amended Facility, respectively, at effective rates of 4.37% 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 September 30, 2016 and December 31, 2015 , the amortizing notes had an unamortized carrying value of $9.0 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 September 30, 2016 , the outstanding principal amount of the 5.75% Notes was $150 million , excluding deferred loan costs of $1.3 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 September 30, 2016 the outstanding principal amount of the 8.5% Notes was $425 million , excluding unamortized premium of $2.9 million and deferred loan costs of $5.1 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 September 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 $5.0 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 September 30, 2016 . GUARANTOR AND NON-GUARANTOR FINANCIAL STATEMENTS The following consolidating financial information includes: (1) Consolidating balance sheets as of September 30, 2016 and December 31, 2015 ; consolidating statements of operations for the three and nine months ended September 30, 2016 and 2015 ; and consolidating statements of cash flows for the nine month periods ended September 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 September 30, 2016 and December 31, 2015 , and for the three and nine month periods ended September 30, 2016 and 2015 . CONDENSED CONSOLIDATING BALANCE SHEET (Unaudited) As of September 30, 2016 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company ASSETS Cash and cash equivalents $ — $ 35,703 $ 528 $ 4,479 $ — $ 40,710 Restricted cash — — — — — — Receivables — 3,083 1,757 3,281 — 8,121 Escrow proceeds receivable — — — — — — Real estate inventories — 957,404 662,342 236,288 — 1,856,034 Investment in unconsolidated joint ventures — 8,264 150 — — 8,414 Goodwill — 14,209 52,693 — — 66,902 Intangibles, net — — 6,700 — — 6,700 Deferred income taxes, net — 79,728 — — — 79,728 Other assets, net — 15,804 1,197 320 — 17,321 Investments in subsidiaries 671,670 (25,323 ) (608,347 ) — (38,000 ) — Intercompany receivables — — 248,639 — (248,639 ) — Total assets $ 671,670 $ 1,088,872 $ 365,659 $ 244,368 $ (286,639 ) $ 2,083,930 LIABILITIES AND EQUITY Accounts payable $ — $ 54,287 $ 16,343 $ 6,291 $ — $ 76,921 Accrued expenses — 75,808 6,098 106 — 82,012 Notes payable — 133,126 2,979 123,237 — 259,342 Subordinated amortizing notes — 8,970 — — — 8,970 5 3 / 4 % Senior Notes — 148,691 — — — 148,691 8 1 / 2 % Senior Notes — 422,852 — — — 422,852 7% Senior Notes — 345,829 — — — 345,829 Intercompany payables — 176,227 — 72,412 (248,639 ) — Total liabilities — 1,365,790 25,420 202,046 (248,639 ) 1,344,617 Equity William Lyon Homes stockholders’ equity (deficit) 671,670 (276,917 ) 340,240 (25,323 ) (38,000 ) 671,670 Noncontrolling interests — (1 ) — 67,644 — 67,643 Total liabilities and equity $ 671,670 $ 1,088,872 $ 365,660 $ 244,367 $ (286,639 ) $ 2,083,930 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 September 30, 2016 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company Operating revenue Sales $ — $ 105,962 $ 181,594 $ 55,072 $ — $ 342,628 Construction services — 86 — — — 86 Management fees — (1,541 ) — — 1,541 — — 104,507 181,594 55,072 1,541 342,714 Operating costs Cost of sales — (84,652 ) (151,306 ) (48,397 ) (1,541 ) (285,896 ) Construction services — (86 ) — — — (86 ) Sales and marketing — (6,205 ) (9,774 ) (2,267 ) — (18,246 ) General and administrative — (14,268 ) (3,091 ) (1 ) — (17,360 ) Other — 140 69 (11 ) — 198 — (105,071 ) (164,102 ) (50,676 ) (1,541 ) (321,390 ) Income from subsidiaries 13,069 3,548 — — (16,617 ) — Operating income 13,069 2,984 17,492 4,396 (16,617 ) 21,324 Equity in income from unconsolidated joint ventures — 1,140 295 — — 1,435 Other income (expense), net — 2,550 (19 ) (481 ) — 2,050 Income before provision for income taxes 13,069 6,674 17,768 3,915 (16,617 ) 24,809 Provision for income taxes — (8,295 ) — — — (8,295 ) Net income 13,069 (1,621 ) 17,768 3,915 (16,617 ) 16,514 Less: Net income attributable to noncontrolling interests — — — (3,445 ) — (3,445 ) Net income available to common stockholders $ 13,069 $ (1,621 ) $ 17,768 $ 470 $ (16,617 ) $ 13,069 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited) Three Months Ended September 30, 2015 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company Operating revenue Sales $ — $ 90,594 $ 149,122 $ 4,595 $ — $ 244,311 Construction services — 4,896 — — — 4,896 Management fees — (138 ) — — 138 — — 95,352 149,122 4,595 138 249,207 Operating costs Cost of sales — (71,488 ) (124,476 ) (4,226 ) (138 ) (200,328 ) Construction services — (4,146 ) — — — (4,146 ) Sales and marketing — (6,312 ) (8,244 ) (796 ) — (15,352 ) General and administrative — (11,515 ) (2,466 ) — — (13,981 ) Amortization of intangible assets — (45 ) — — — (45 ) Other — (889 ) 297 — — (592 ) — (94,395 ) (134,889 ) (5,022 ) (138 ) (234,444 ) Income from subsidiaries 12,082 623 — — (12,705 ) — Operating income (loss) 12,082 1,580 14,233 (427 ) (12,705 ) 14,763 Equity in income from unconsolidated joint ventures — 1,018 — — — 1,018 Other income (expense), net — 1,395 368 (311 ) — 1,452 Income (loss) before provision for income taxes 12,082 3,993 14,601 (738 ) (12,705 ) 17,233 Provision for income taxes — (4,956 ) — — — (4,956 ) Net income (loss) 12,082 (963 ) 14,601 (738 ) (12,705 ) 12,277 Less: Net income attributable to noncontrolling interests — — — (195 ) — (195 ) Net income (loss) available to common stockholders $ 12,082 $ (963 ) $ 14,601 $ (933 ) $ (12,705 ) $ 12,082 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited) Nine Months Ended September 30, 2016 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company Operating revenue Sales $ — $ 344,459 $ 494,597 $ 89,926 $ — $ 928,982 Construction services — 3,810 — — — 3,810 Management fees — (2,587 ) — — 2,587 — — 345,682 494,597 89,926 2,587 932,792 Operating costs Cost of sales — (276,481 ) (411,339 ) (79,298 ) (2,587 ) (769,705 ) Construction services — (3,458 ) — — — (3,458 ) Sales and marketing — (18,080 ) (26,731 ) (6,540 ) — (51,351 ) General and administrative — (41,749 ) (10,129 ) (1 ) — (51,879 ) Other — (587 ) (14 ) (11 ) — (612 ) — (340,355 ) (448,213 ) (85,850 ) (2,587 ) (877,005 ) Income from subsidiaries 36,644 7,472 — — (44,116 ) — Operating income (loss) 36,644 12,799 46,384 4,076 (44,116 ) 55,787 Equity in income from unconsolidated joint ventures — 3,001 809 — — 3,810 Other income (expense), net — 3,873 (34 ) (1,036 ) — 2,803 Income (loss) before provision for income taxes 36,644 19,673 47,159 3,040 (44,116 ) 62,400 Provision for income taxes — (20,859 ) — — — (20,859 ) Net income (loss) 36,644 (1,186 ) 47,159 3,040 (44,116 ) 41,541 Less: Net income attributable to noncontrolling interests — — — (4,897 ) — (4,897 ) Net income (loss) available to common stockholders $ 36,644 $ (1,186 ) $ 47,159 $ (1,857 ) $ (44,116 ) $ 36,644 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited) Nine Months Ended September 30, 2015 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company Operating revenue Sales $ — $ 285,136 $ 368,519 $ 28,111 $ — $ 681,766 Construction services — 19,304 — — — 19,304 Management fees — (844 ) — — 844 — — 303,596 368,519 28,111 844 701,070 Operating costs Cost of sales — (220,846 ) (309,076 ) (23,891 ) (844 ) (554,657 ) Construction services — (16,073 ) — — — (16,073 ) Sales and marketing — (18,478 ) (21,544 ) (2,458 ) — (42,480 ) General and administrative — (33,503 ) (7,841 ) — (41,344 ) Amortization of intangible assets — (710 ) — — — (710 ) Other — (2,671 ) 1,122 — — (1,549 ) — (292,281 ) (337,339 ) (26,349 ) (844 ) (656,813 ) Income from subsidiaries 31,041 (5,845 ) — — (25,196 ) — Operating income (loss) 31,041 5,470 31,180 1,762 (25,196 ) 44,257 Equity in income from unconsolidated joint ventures — 1,781 — — — 1,781 Other income (expense), net — 6,083 5,685 (8,893 ) — 2,875 Income (loss) before provision for income taxes 31,041 13,334 36,865 (7,131 ) (25,196 ) 48,913 Provision for income taxes — (15,780 ) — — — (15,780 ) Net income (loss) 31,041 (2,446 ) 36,865 (7,131 ) (25,196 ) 33,133 Less: Net income attributable to noncontrolling interests — — — (2,092 ) — (2,092 ) Net income (loss) available to common stockholders $ 31,041 $ (2,446 ) $ 36,865 $ (9,223 ) $ (25,196 ) $ 31,041 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) Nine Months Ended September 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 $ (2,931 ) $ 18,174 $ (35,182 ) $ (65,970 ) $ 2,931 $ (82,978 ) Investing activities Collection of related party note receivable — 6,188 — — — 6,188 Purchases of property and equipment — (809 ) 56 (20 ) — (773 ) Investments in subsidiaries — (1,727 ) 46,801 — (45,074 ) — Net cash (used in) provided by investing activities — 3,652 46,857 (20 ) (45,074 ) 5,415 Financing activities Proceeds from borrowings on notes payable — 2,211 — 109,781 — 111,992 Principal payments on notes payable — (10,440 ) — (80,810 ) — (91,250 ) Proceeds from borrowings on Revolver — 198,000 — — — 198,000 Payments on Revolver — (167,000 ) — — — (167,000 ) Principal payments on subordinated amortizing notes — (5,096 ) — — — (5,096 ) Payment of deferred loan costs — (792 ) — — — (792 ) Purchase of common stock — (918 ) — — — (918 ) Excess income tax benefit from stock based awards — (238 ) — — — (238 ) Noncontrolling interest contributions — — — 36,140 — 36,140 Noncontrolling interest distributions — — — (12,768 ) — (12,768 ) Advances to affiliates — — (4,479 ) 11,056 (6,577 ) — Intercompany receivables/payables 2,931 (46,182 ) (9,391 ) 3,922 48,720 — Net cash provided by (used in) financing activities 2,931 (30,455 ) (13,870 ) 67,321 42,143 68,070 Net (decrease) increase in cash and cash equivalents — (8,629 ) (2,195 ) 1,331 — (9,493 ) Cash and cash equivalents at beginning of period — 44,332 2,723 3,148 — 50,203 Cash and cash equivalents at end of period $ — $ 35,703 $ 528 $ 4,479 $ — $ 40,710 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) Nine Months Ended September 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 $ (3,108 ) $ (148,129 ) $ (19,212 ) $ (52,390 ) $ 2,485 $ (220,354 ) Investing activities Investments in and advances to unconsolidated joint ventures — (1,000 ) — — — (1,000 ) Purchases of property and equipment — (1,375 ) 65 22 — (1,288 ) Investments in subsidiaries — (6,572 ) 27,885 — (21,313 ) — Net cash (used

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 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 September 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 since inception 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): September 30, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Financial liabilities: Notes payable $ 259,342 $ 259,342 $ 175,181 $ 175,181 Subordinated amortizing notes $ 8,970 $ 8,432 $ 14,066 $ 12,122 5 3 / 4 % Senior Notes due 2019 $ 148,691 $ 153,375 $ 148,295 $ 147,750 8 1 / 2 % Senior Notes due 2020 $ 422,852 $ 445,188 $ 422,896 $ 449,438 7% Senior Notes due 2022 $ 345,829 $ 360,500 $ 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	9 Months Ended
	Sep. 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 nine months ended September 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. In August 2016 the Company acquired certain lots within a master planned community located in Aurora, Colorado, for an overall purchase price of approximately $9.3 million , from an entity managed by an affiliate of Paulson & Co., Inc. (“Paulson”). WLH Recovery Acquisition LLC, which is affiliated with, and managed by affiliates of, Paulson, holds over 5% of Parent’s outstanding Class A common stock. A portion of the acquisition price for the lots was paid in the form of a seller note with a principal amount of approximately $3.0 million (see Note 6). The Company believes that the transaction, including the terms of the seller note, was on terms no less favorable than it would have agreed to with unrelated parties.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 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 33.4% and 33.4% , and 28.8% and 32.3% for the three and nine months ended September 30, 2016 and 2015, respectively. The significant drivers of the effective tax rate are allocation of income to noncontrolling interests, change in the valuation allowance of deferred tax assets, 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 September 30, 2016 the Company’s had no amounts recorded as a valuation allowance against its deferred tax assets. At September 30, 2016 , the Company had no remaining federal net operating loss carryforwards and $54.7 million of remaining state net operating loss carryforwards. State net operating loss carryforwards begin to expire in 2031. In addition, as of September 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 September 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	9 Months Ended
	Sep. 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 nine months ended September 30, 2016 and 2015 were calculated as follows (in thousands, except number of shares and per share amounts): Three Three Nine Nine Basic weighted average number of common shares outstanding 36,801,464 36,573,099 36,746,727 36,534,554 Effect of dilutive securities: Stock options, unvested common shares, and warrants 636,633 1,465,119 672,364 1,396,633 Tangible equity units 894,930 469,049 894,930 469,049 Diluted average shares outstanding 38,333,027 38,507,267 38,314,021 38,400,236 Net income available to common stockholders $ 13,069 $ 12,082 $ 36,644 $ 31,041 Basic income per common share $ 0.36 $ 0.33 $ 1.00 $ 0.85 Dilutive income per common share $ 0.34 $ 0.31 $ 0.96 $ 0.81 Antidilutive securities not included in the calculation of diluted income per common share (weighted average): Unvested stock options 240,000 240,000 240,000 160,000 Warrants 1,907,551 — 1,907,551 —

Stock Based Compensation

Stock Based Compensation	9 Months Ended
	Sep. 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 three and nine months ended September 30, 2016 , the Company granted 31,571 and 291,368 shares of restricted stock, respectively. During the nine months ended September 30, 2016 , the Company granted 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 nine months ended September 30, 2016 and 2015 of $1.5 million and $4.1 million , and $1.6 million and $4.8 million , respectively. Performance-Based Restricted Stock Awards With respect to the performance based restricted stock awards granted to certain employees during the nine months ended September 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 probability assessment as of September 30, 2016 , management determined that the currently available data was sufficient to support that the achievement of the minimum threshold for one of the performance targets is probable, and as such, compensation expense of $0.3 million has been recognized for these awards to date. Restricted Stock Awards With respect to the restricted stock awards granted to certain employees during the three and nine months ended September 30, 2016 , representing 250,304 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, 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, 3,548 of such shares have a vesting schedule pursuant to which one-half of the shares will vest on August 9th of each of 2017 and 2018, 20,697 of such shares are subject to a vesting schedule pursuant to which 100% of the shares will vest on August 9, 2018, and 7,326 of such shares have a vesting schedule pursuant to which one-half of the shares will vest on September 6th 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 nine months ended September 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	9 Months Ended
	Sep. 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 September 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 $1.0 million and $2.9 million , and $1.1 million and $2.8 million , respectively, in the three and nine months ended September 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 September 30, 2016 (in thousands). Year Ending December 31, 2016 $ 569 2017 2,516 2018 2,475 2019 2,226 2020 2,008 Thereafter 2,785 Total $ 12,579 As of September 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 $195.9 million at September 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 September 30, 2016 , the Company had $238.5 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 September 30, 2016 , the Company has made non-refundable deposits of $55.6 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 $447.3 million as of September 30, 2016 .

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events No events have occurred subsequent to September 30, 2016 , that would require recognition or disclosure in the Company’s financial statements.

Significant Accounting Policies

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 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 September 30, 2016 and December 31, 2015 and revenues and expenses for the three and nine month periods ended September 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 three and nine months ended September 30, 2016 the Company sold two and five parcels of land, respectively, resulting in a $2.7 million gain for both periods then ended. 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 September 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 February 2016, the FASB issued ASU No. 2016-02, " Leases (Topic 842) " ("ASU 2016-02"), which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets. ASU 2016-02 requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. ASU 2016-02 is effective for annual and interim periods in fiscal years beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the potential impact the adoption of ASU 2016-02 will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 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 does not expect the adoption of ASU 2016-09 will have a material effect on its consolidated financial statements.
Reclassification	Reclassifications Certain balances on the financial statements and certain amounts presented in the notes have been reclassified in order to conform to current year presentation

Basis of Presentation and Sig21

Basis of Presentation and Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Summary of Changes in Warranty Liability	Changes in the Company’s warranty liability for the nine months ended September 30, 2016 and 2015 , are as follows (in thousands): Nine Nine Warranty liability, beginning of period $ 18,117 $ 18,155 Warranty provision during period 7,086 4,570 Warranty payments during period (10,579 ) (5,870 ) Warranty charges related to construction services projects 128 747 Warranty liability, end of period $ 14,752 $ 17,602
Schedule of Interest Activity	Interest activity for the three and nine months ended September 30, 2016 and 2015 are as follows (in thousands): Three Three Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Interest incurred $ 21,293 $ 19,271 $ 62,112 $ 55,915 Less: Interest capitalized 21,293 19,271 62,112 55,915 Interest expense, net of amounts capitalized $ — $ — $ — $ — Cash paid for interest $ 14,898 $ 12,565 $ 54,576 $ 47,590

Investments in Unconsolidated22

Investments in Unconsolidated Joint Ventures (Tables)	9 Months Ended
	Sep. 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 statements of operations for our unconsolidated mortgage joint ventures that we accounted for under the equity method (in thousands): Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Revenues $ 5,397 $ 3,100 $ 14,675 $ 6,634 Cost of sales (2,521 ) (1,453 ) (7,043 ) (3,459 ) Income of unconsolidated joint ventures $ 2,876 $ 1,647 $ 7,632 $ 3,175 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): September 30, 2016 December 31, 2015 Assets Cash $ 12,156 $ 6,340 Loans held for sale 20,525 29,312 Accounts receivable 1,081 309 Other assets 44 390 Total Assets $ 33,806 $ 36,351 Liabilities and Equity Accounts payable $ 499 $ 651 Accrued expenses 981 774 Credit lines payable 19,249 27,350 Other liabilities 18 515 Members equity 13,059 7,061 Total Liabilities and Equity $ 33,806 $ 36,351

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 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 Nine Nine Operating revenue: California (1) $ 111,520 $ 65,661 $ 309,199 $ 240,115 Arizona 28,758 21,088 85,399 38,782 Nevada 49,600 31,924 128,996 89,937 Colorado 35,316 23,864 85,885 69,457 Washington 42,247 46,905 112,512 124,371 Oregon 75,273 59,765 210,801 138,408 Total operating revenue $ 342,714 $ 249,207 $ 932,792 $ 701,070 (1) Operating revenue in the California segment includes construction services revenue. Three Three Nine Nine Income before provision for income taxes: California $ 10,364 $ 5,679 $ 28,252 $ 26,756 Arizona 2,542 1,692 7,537 2,302 Nevada 5,291 2,611 12,587 8,660 Colorado 2,342 742 3,643 1,381 Washington 2,899 5,609 6,767 12,501 Oregon 9,466 6,698 27,452 14,809 Corporate (8,095 ) (5,798 ) (23,838 ) (17,496 ) Income before provision for income taxes $ 24,809 $ 17,233 $ 62,400 $ 48,913
Schedule of Segment Homebuilding Assets	September 30, 2016 December 31, 2015 Homebuilding assets: California $ 756,603 $ 721,066 Arizona 203,015 197,828 Nevada 200,652 183,019 Colorado 135,680 118,307 Washington 331,313 249,615 Oregon 258,729 228,183 Corporate (1) 197,938 225,432 Total homebuilding assets $ 2,083,930 $ 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)	9 Months Ended
	Sep. 30, 2016
Real Estate [Abstract]
Summary of Real Estate Inventories	Real estate inventories consist of the following (in thousands): September 30, 2016 December 31, 2015 Real estate inventories: Land deposits $ 55,612 $ 61,514 Land and land under development 1,056,781 1,013,650 Homes completed and under construction 634,621 495,966 Model homes 109,020 103,976 Total $ 1,856,034 $ 1,675,106

Senior Notes, Secured, and Un25

Senior Notes, Secured, and Unsecured Indebtedness (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Schedule of Debt	Senior notes, secured, and unsecured indebtedness consist of the following (in thousands): September 30, 2016 December 31, 2015 Notes payable: Construction notes payable $ 130,923 $ 110,181 Seller financing 32,419 — Revolving line of credit 96,000 65,000 Total notes payable 259,342 175,181 Subordinated amortizing notes 8,970 14,066 Senior notes: 5 3 / 4 % Senior Notes due April 15, 2019 148,691 148,295 8 1 / 2 % Senior Notes due November 15, 2020 422,852 422,896 7% Senior Notes due August 15, 2022 345,829 345,338 Total senior notes 917,372 916,529 Total notes payable and senior notes $ 1,185,684 $ 1,105,776
Schedule of Maturities of Notes Payable and Senior Notes	As of September 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 $ — 2017 78,844 2018 59,814 2019 279,654 2020 425,000 Thereafter 350,000 $ 1,193,312 The issuance date, facility size, maturity date and interest rate are listed in the table below as of September 30, 2016 (in millions): Issuance Date Facility Size Outstanding Maturity Current Rate March, 2016 $ 33.4 $ 15.8 September, 2018 3.53 % (1) January, 2016 35.0 18.8 February, 2019 3.78 % (2) November, 2015 42.5 19.5 November, 2017 4.50 % (1) August, 2015 (4) 14.2 0.7 August, 2017 4.50 % (1) August, 2015 (4) 37.5 7.0 August, 2017 4.50 % (1) July, 2015 22.5 14.8 July, 2018 4.00 % (3) April, 2015 18.5 13.9 October, 2017 4.00 % (3) November, 2014 24.0 13.1 November, 2017 4.00 % (3) November, 2014 22.0 12.7 November, 2017 4.00 % (3) March, 2014 26.0 14.6 April, 2018 3.53 % (1) $ 275.6 $ 130.9 (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 September 30, 2016 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company ASSETS Cash and cash equivalents $ — $ 35,703 $ 528 $ 4,479 $ — $ 40,710 Restricted cash — — — — — — Receivables — 3,083 1,757 3,281 — 8,121 Escrow proceeds receivable — — — — — — Real estate inventories — 957,404 662,342 236,288 — 1,856,034 Investment in unconsolidated joint ventures — 8,264 150 — — 8,414 Goodwill — 14,209 52,693 — — 66,902 Intangibles, net — — 6,700 — — 6,700 Deferred income taxes, net — 79,728 — — — 79,728 Other assets, net — 15,804 1,197 320 — 17,321 Investments in subsidiaries 671,670 (25,323 ) (608,347 ) — (38,000 ) — Intercompany receivables — — 248,639 — (248,639 ) — Total assets $ 671,670 $ 1,088,872 $ 365,659 $ 244,368 $ (286,639 ) $ 2,083,930 LIABILITIES AND EQUITY Accounts payable $ — $ 54,287 $ 16,343 $ 6,291 $ — $ 76,921 Accrued expenses — 75,808 6,098 106 — 82,012 Notes payable — 133,126 2,979 123,237 — 259,342 Subordinated amortizing notes — 8,970 — — — 8,970 5 3 / 4 % Senior Notes — 148,691 — — — 148,691 8 1 / 2 % Senior Notes — 422,852 — — — 422,852 7% Senior Notes — 345,829 — — — 345,829 Intercompany payables — 176,227 — 72,412 (248,639 ) — Total liabilities — 1,365,790 25,420 202,046 (248,639 ) 1,344,617 Equity William Lyon Homes stockholders’ equity (deficit) 671,670 (276,917 ) 340,240 (25,323 ) (38,000 ) 671,670 Noncontrolling interests — (1 ) — 67,644 — 67,643 Total liabilities and equity $ 671,670 $ 1,088,872 $ 365,660 $ 244,367 $ (286,639 ) $ 2,083,930 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 September 30, 2016 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company Operating revenue Sales $ — $ 105,962 $ 181,594 $ 55,072 $ — $ 342,628 Construction services — 86 — — — 86 Management fees — (1,541 ) — — 1,541 — — 104,507 181,594 55,072 1,541 342,714 Operating costs Cost of sales — (84,652 ) (151,306 ) (48,397 ) (1,541 ) (285,896 ) Construction services — (86 ) — — — (86 ) Sales and marketing — (6,205 ) (9,774 ) (2,267 ) — (18,246 ) General and administrative — (14,268 ) (3,091 ) (1 ) — (17,360 ) Other — 140 69 (11 ) — 198 — (105,071 ) (164,102 ) (50,676 ) (1,541 ) (321,390 ) Income from subsidiaries 13,069 3,548 — — (16,617 ) — Operating income 13,069 2,984 17,492 4,396 (16,617 ) 21,324 Equity in income from unconsolidated joint ventures — 1,140 295 — — 1,435 Other income (expense), net — 2,550 (19 ) (481 ) — 2,050 Income before provision for income taxes 13,069 6,674 17,768 3,915 (16,617 ) 24,809 Provision for income taxes — (8,295 ) — — — (8,295 ) Net income 13,069 (1,621 ) 17,768 3,915 (16,617 ) 16,514 Less: Net income attributable to noncontrolling interests — — — (3,445 ) — (3,445 ) Net income available to common stockholders $ 13,069 $ (1,621 ) $ 17,768 $ 470 $ (16,617 ) $ 13,069 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited) Three Months Ended September 30, 2015 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company Operating revenue Sales $ — $ 90,594 $ 149,122 $ 4,595 $ — $ 244,311 Construction services — 4,896 — — — 4,896 Management fees — (138 ) — — 138 — — 95,352 149,122 4,595 138 249,207 Operating costs Cost of sales — (71,488 ) (124,476 ) (4,226 ) (138 ) (200,328 ) Construction services — (4,146 ) — — — (4,146 ) Sales and marketing — (6,312 ) (8,244 ) (796 ) — (15,352 ) General and administrative — (11,515 ) (2,466 ) — — (13,981 ) Amortization of intangible assets — (45 ) — — — (45 ) Other — (889 ) 297 — — (592 ) — (94,395 ) (134,889 ) (5,022 ) (138 ) (234,444 ) Income from subsidiaries 12,082 623 — — (12,705 ) — Operating income (loss) 12,082 1,580 14,233 (427 ) (12,705 ) 14,763 Equity in income from unconsolidated joint ventures — 1,018 — — — 1,018 Other income (expense), net — 1,395 368 (311 ) — 1,452 Income (loss) before provision for income taxes 12,082 3,993 14,601 (738 ) (12,705 ) 17,233 Provision for income taxes — (4,956 ) — — — (4,956 ) Net income (loss) 12,082 (963 ) 14,601 (738 ) (12,705 ) 12,277 Less: Net income attributable to noncontrolling interests — — — (195 ) — (195 ) Net income (loss) available to common stockholders $ 12,082 $ (963 ) $ 14,601 $ (933 ) $ (12,705 ) $ 12,082 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited) Nine Months Ended September 30, 2016 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company Operating revenue Sales $ — $ 344,459 $ 494,597 $ 89,926 $ — $ 928,982 Construction services — 3,810 — — — 3,810 Management fees — (2,587 ) — — 2,587 — — 345,682 494,597 89,926 2,587 932,792 Operating costs Cost of sales — (276,481 ) (411,339 ) (79,298 ) (2,587 ) (769,705 ) Construction services — (3,458 ) — — — (3,458 ) Sales and marketing — (18,080 ) (26,731 ) (6,540 ) — (51,351 ) General and administrative — (41,749 ) (10,129 ) (1 ) — (51,879 ) Other — (587 ) (14 ) (11 ) — (612 ) — (340,355 ) (448,213 ) (85,850 ) (2,587 ) (877,005 ) Income from subsidiaries 36,644 7,472 — — (44,116 ) — Operating income (loss) 36,644 12,799 46,384 4,076 (44,116 ) 55,787 Equity in income from unconsolidated joint ventures — 3,001 809 — — 3,810 Other income (expense), net — 3,873 (34 ) (1,036 ) — 2,803 Income (loss) before provision for income taxes 36,644 19,673 47,159 3,040 (44,116 ) 62,400 Provision for income taxes — (20,859 ) — — — (20,859 ) Net income (loss) 36,644 (1,186 ) 47,159 3,040 (44,116 ) 41,541 Less: Net income attributable to noncontrolling interests — — — (4,897 ) — (4,897 ) Net income (loss) available to common stockholders $ 36,644 $ (1,186 ) $ 47,159 $ (1,857 ) $ (44,116 ) $ 36,644 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS (Unaudited) Nine Months Ended September 30, 2015 (in thousands) Unconsolidated Delaware Lyon California Lyon Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminating Entries Consolidated Company Operating revenue Sales $ — $ 285,136 $ 368,519 $ 28,111 $ — $ 681,766 Construction services — 19,304 — — — 19,304 Management fees — (844 ) — — 844 — — 303,596 368,519 28,111 844 701,070 Operating costs Cost of sales — (220,846 ) (309,076 ) (23,891 ) (844 ) (554,657 ) Construction services — (16,073 ) — — — (16,073 ) Sales and marketing — (18,478 ) (21,544 ) (2,458 ) — (42,480 ) General and administrative — (33,503 ) (7,841 ) — (41,344 ) Amortization of intangible assets — (710 ) — — — (710 ) Other — (2,671 ) 1,122 — — (1,549 ) — (292,281 ) (337,339 ) (26,349 ) (844 ) (656,813 ) Income from subsidiaries 31,041 (5,845 ) — — (25,196 ) — Operating income (loss) 31,041 5,470 31,180 1,762 (25,196 ) 44,257 Equity in income from unconsolidated joint ventures — 1,781 — — — 1,781 Other income (expense), net — 6,083 5,685 (8,893 ) — 2,875 Income (loss) before provision for income taxes 31,041 13,334 36,865 (7,131 ) (25,196 ) 48,913 Provision for income taxes — (15,780 ) — — — (15,780 ) Net income (loss) 31,041 (2,446 ) 36,865 (7,131 ) (25,196 ) 33,133 Less: Net income attributable to noncontrolling interests — — — (2,092 ) — (2,092 ) Net income (loss) available to common stockholders $ 31,041 $ (2,446 ) $ 36,865 $ (9,223 ) $ (25,196 ) $ 31,041
Condensed Consolidating Statement of Cash Flows	CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) Nine Months Ended September 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 $ (2,931 ) $ 18,174 $ (35,182 ) $ (65,970 ) $ 2,931 $ (82,978 ) Investing activities Collection of related party note receivable — 6,188 — — — 6,188 Purchases of property and equipment — (809 ) 56 (20 ) — (773 ) Investments in subsidiaries — (1,727 ) 46,801 — (45,074 ) — Net cash (used in) provided by investing activities — 3,652 46,857 (20 ) (45,074 ) 5,415 Financing activities Proceeds from borrowings on notes payable — 2,211 — 109,781 — 111,992 Principal payments on notes payable — (10,440 ) — (80,810 ) — (91,250 ) Proceeds from borrowings on Revolver — 198,000 — — — 198,000 Payments on Revolver — (167,000 ) — — — (167,000 ) Principal payments on subordinated amortizing notes — (5,096 ) — — — (5,096 ) Payment of deferred loan costs — (792 ) — — — (792 ) Purchase of common stock — (918 ) — — — (918 ) Excess income tax benefit from stock based awards — (238 ) — — — (238 ) Noncontrolling interest contributions — — — 36,140 — 36,140 Noncontrolling interest distributions — — — (12,768 ) — (12,768 ) Advances to affiliates — — (4,479 ) 11,056 (6,577 ) — Intercompany receivables/payables 2,931 (46,182 ) (9,391 ) 3,922 48,720 — Net cash provided by (used in) financing activities 2,931 (30,455 ) (13,870 ) 67,321 42,143 68,070 Net (decrease) increase in cash and cash equivalents — (8,629 ) (2,195 ) 1,331 — (9,493 ) Cash and cash equivalents at beginning of period — 44,332 2,723 3,148 — 50,203 Cash and cash equivalents at end of period $ — $ 35,703 $ 528 $ 4,479 $ — $ 40,710 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Unaudited) Nine Months Ended September 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 $ (3,108 ) $ (148,129 ) $ (19,212 ) $ (52,390 ) $ 2,485 $ (220,354 ) Investing activities Investments in and advances to unconsolidated joint ventures — (1,000 ) — — — (1,000 ) Purchases of property and equipment — (1,375 ) 65 22 — (1,288 ) Investments in subsidiaries — (6,572 ) 27,885 — (21,313 ) — Net cash (used in) provided by investing activities — (8,947 ) 27,950 22 (21,313 ) (2,288 ) Financing activities Proceeds from borrowings on notes payable — 30,415 — 54,511 — 84,926 Principal payments on notes payable — (8,725 ) (162 ) (12,236 ) — (21,123 ) Proceeds from issuance of 7% notes — 51,000 — — — 51,000 Proceeds from borrowings on Revolver — 194,000 — — — 194,000 Payments on revolver — (109,000 ) — — — (109,000 ) Principal payments on subordinated amortizing notes — (4,999 ) — — — (4,999 ) Payment of deferred loan costs — (1,755 ) — — — (1,755 ) Proceeds from exercise of stock options — 106 — — — 106 Shares remitted to Company for employee tax witholding — (1,826 ) — — — (1,826 ) Noncontrolling interest contributions — — — 13,125 — 13,125 Noncontrolling interest distributions — — — (8,204 ) — (8,204 ) Advances to affiliates — — (4,810 ) 9,327 (4,517 ) — Intercompany receivables/payables 3,108 (21,706 ) (3,412 ) (1,335 ) 23,345 — Net cash provided by (used in) financing activities 3,108 127,510 (8,384 ) 55,188 18,828 196,250 Net increase in cash and cash equivalents — (29,566 ) 354 2,820 — (26,392 ) Cash and cash equivalents at beginning of period — 48,462 573 3,736 — 52,771 Cash and cash equivalents at end of period $ — $ 18,896 $ 927 $ 6,556 $ — $ 26,379

Fair Value of Financial Instr26

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 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): September 30, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Financial liabilities: Notes payable $ 259,342 $ 259,342 $ 175,181 $ 175,181 Subordinated amortizing notes $ 8,970 $ 8,432 $ 14,066 $ 12,122 5 3 / 4 % Senior Notes due 2019 $ 148,691 $ 153,375 $ 148,295 $ 147,750 8 1 / 2 % Senior Notes due 2020 $ 422,852 $ 445,188 $ 422,896 $ 449,438 7% Senior Notes due 2022 $ 345,829 $ 360,500 $ 345,338 $ 350,875

Income Per Common Share (Tables

Income Per Common Share (Tables)	9 Months Ended
	Sep. 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 nine months ended September 30, 2016 and 2015 were calculated as follows (in thousands, except number of shares and per share amounts): Three Three Nine Nine Basic weighted average number of common shares outstanding 36,801,464 36,573,099 36,746,727 36,534,554 Effect of dilutive securities: Stock options, unvested common shares, and warrants 636,633 1,465,119 672,364 1,396,633 Tangible equity units 894,930 469,049 894,930 469,049 Diluted average shares outstanding 38,333,027 38,507,267 38,314,021 38,400,236 Net income available to common stockholders $ 13,069 $ 12,082 $ 36,644 $ 31,041 Basic income per common share $ 0.36 $ 0.33 $ 1.00 $ 0.85 Dilutive income per common share $ 0.34 $ 0.31 $ 0.96 $ 0.81 Antidilutive securities not included in the calculation of diluted income per common share (weighted average): Unvested stock options 240,000 240,000 240,000 160,000 Warrants 1,907,551 — 1,907,551 —

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 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 September 30, 2016 (in thousands). Year Ending December 31, 2016 $ 569 2017 2,516 2018 2,475 2019 2,226 2020 2,008 Thereafter 2,785 Total $ 12,579

Basis of Presentation and Sig29

Basis of Presentation and Significant Accounting Policies - Narrative (Details) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2016USD ($)Property	Sep. 30, 2016USD ($)Propertysegment
Significant Accounting Policies [Line Items]
Number of parcels of land sold | Property	2	5
Gain (loss) on sale of land | $	$ 2.7	$ 2.7
Number of reportable segments | segment		6
Minimum
Significant Accounting Policies [Line Items]
Percentage of sales price fee from construction management agreements		3.00%
Maximum
Significant Accounting Policies [Line Items]
Percentage of sales price fee 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	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Movement in Standard Product Warranty Accrual [Roll Forward]
Warranty liability, beginning of period	$ 18,117	$ 18,155
Warranty provision during period	7,086	4,570
Warranty payments during period	(10,579)	(5,870)
Warranty charges related to construction services projects	128	747
Warranty liability, end of period	$ 14,752	$ 17,602

Basis of Presentation and Sig31

Basis of Presentation and Significant Accounting Policies - Schedule of Interest Activity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Accounting Policies [Abstract]
Interest incurred	$ 21,293	$ 19,271	$ 62,112	$ 55,915
Less: Interest capitalized	21,293	19,271	62,112	55,915
Interest expense, net of amounts capitalized	0	0	0	0
Cash paid for interest	$ 14,898	$ 12,565	$ 54,576	$ 47,590

Variable Interest Entities an32

Variable Interest Entities and Noncontrolling Interests - Narrative (Details) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 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	$ 226.1	$ 155
Consolidated variable interest entities, liabilities	129.3	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	$ 221.2	$ 148.6

Investments in Unconsolidated33

Investments in Unconsolidated Joint Ventures - Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Schedule of Equity Method Investments [Line Items]
Revenues	$ 342,714	$ 249,207	$ 932,792	$ 701,070
Cost of sales	(321,390)	(234,444)	(877,005)	(656,813)
Operating income (loss)	21,324	14,763	55,787	44,257
Unconsolidated joint venture income	1,435	1,018	3,810	1,781
Joint Ventures
Schedule of Equity Method Investments [Line Items]
Revenues	5,397	3,100	14,675	6,634
Cost of sales	(2,521)	(1,453)	(7,043)	(3,459)
Operating income (loss)	$ 2,876	$ 1,647	$ 7,632	$ 3,175

Investments in Unconsolidated34

Investments in Unconsolidated Joint Ventures - Financial Position (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
ASSETS
Other assets	$ 17,321	$ 21,017
Total Assets	2,083,930	1,923,450
LIABILITIES AND EQUITY
Accounts payable	76,921	75,881
Accrued expenses	82,012	70,324
Total liabilities and equity	2,083,930	1,923,450
Joint Ventures
ASSETS
Cash	12,156	6,340
Loans held for sale	20,525	29,312
Accounts receivable	1,081	309
Other assets	44	390
Total Assets	33,806	36,351
LIABILITIES AND EQUITY
Accounts payable	499	651
Accrued expenses	981	774
Credit lines payable	19,249	27,350
Other liabilities	18	515
Members equity	13,059	7,061
Total liabilities and equity	$ 33,806	$ 36,351

Segment Information - Narrative

Segment Information - Narrative (Details)	9 Months Ended
	Sep. 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		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Operating revenue
Total operating revenue		$ 342,714	$ 249,207	$ 932,792	$ 701,070
Income before provision for income taxes:
Income before provision for income taxes		24,809	17,233	62,400	48,913
Corporate
Income before provision for income taxes:
Income before provision for income taxes		(8,095)	(5,798)	(23,838)	(17,496)
California
Operating revenue
Total operating revenue	[1]	111,520	65,661	309,199	240,115
California | Reportable Operating Segments
Income before provision for income taxes:
Income before provision for income taxes		10,364	5,679	28,252	26,756
Arizona
Operating revenue
Total operating revenue		28,758	21,088	85,399	38,782
Arizona | Reportable Operating Segments
Income before provision for income taxes:
Income before provision for income taxes		2,542	1,692	7,537	2,302
Nevada
Operating revenue
Total operating revenue		49,600	31,924	128,996	89,937
Nevada | Reportable Operating Segments
Income before provision for income taxes:
Income before provision for income taxes		5,291	2,611	12,587	8,660
Colorado
Operating revenue
Total operating revenue		35,316	23,864	85,885	69,457
Colorado | Reportable Operating Segments
Income before provision for income taxes:
Income before provision for income taxes		2,342	742	3,643	1,381
Washington
Operating revenue
Total operating revenue		42,247	46,905	112,512	124,371
Washington | Reportable Operating Segments
Income before provision for income taxes:
Income before provision for income taxes		2,899	5,609	6,767	12,501
Oregon
Operating revenue
Total operating revenue		75,273	59,765	210,801	138,408
Oregon | Reportable Operating Segments
Income before provision for income taxes:
Income before provision for income taxes		$ 9,466	$ 6,698	$ 27,452	$ 14,809
[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	Sep. 30, 2016	Dec. 31, 2015
Homebuilding assets:
Total homebuilding assets	$ 2,083,930	$ 1,923,450
Corporate
Homebuilding assets:
Total homebuilding assets	197,938	225,432
California | Reportable Operating Segments
Homebuilding assets:
Total homebuilding assets	756,603	721,066
Arizona | Reportable Operating Segments
Homebuilding assets:
Total homebuilding assets	203,015	197,828
Nevada | Reportable Operating Segments
Homebuilding assets:
Total homebuilding assets	200,652	183,019
Colorado | Reportable Operating Segments
Homebuilding assets:
Total homebuilding assets	135,680	118,307
Washington | Reportable Operating Segments
Homebuilding assets:
Total homebuilding assets	331,313	249,615
Oregon | Reportable Operating Segments
Homebuilding assets:
Total homebuilding assets	$ 258,729	$ 228,183

Real Estate Inventories - Summa

Real Estate Inventories - Summary of Real Estate Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Real estate inventories:
Land deposits	$ 55,612	$ 61,514
Land and land under development	1,056,781	1,013,650
Homes completed and under construction	634,621	495,966
Model homes	109,020	103,976
Total	$ 1,856,034	$ 1,675,106

Senior Notes, Secured, and Un39

Senior Notes, Secured, and Unsecured Indebtedness - Schedule of Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Nov. 21, 2014	Aug. 11, 2014	Mar. 31, 2014	Nov. 08, 2012
Debt Instrument [Line Items]
Total notes payable	$ 259,342	$ 175,181
Total debt	1,185,684	1,105,776
Subordinated amortizing notes
Debt Instrument [Line Items]
Total debt	8,970	14,066
Stated interest rate			5.50%
5 3/4% Senior Notes due April 15, 2019
Debt Instrument [Line Items]
Total debt	$ 148,691	$ 148,295
Stated interest rate	5.75%	5.75%
8 1/2% Senior Notes due November 15, 2020
Debt Instrument [Line Items]
Total debt	$ 422,852	$ 422,896
Stated interest rate	8.50%	8.50%
7% Senior Notes due August 15, 2022
Debt Instrument [Line Items]
Total debt	$ 345,829	$ 345,338
Stated interest rate	7.00%	7.00%
Construction notes payable
Debt Instrument [Line Items]
Total notes payable	$ 130,923	$ 110,181
Seller financing
Debt Instrument [Line Items]
Total notes payable	32,419	0
Senior notes
Debt Instrument [Line Items]
Total debt	917,372	916,529
Senior notes | 5 3/4% Senior Notes due April 15, 2019
Debt Instrument [Line Items]
Total debt	$ 148,691	$ 148,295
Stated interest rate	5.75%	5.75%			5.75%
Senior notes | 8 1/2% Senior Notes due November 15, 2020
Debt Instrument [Line Items]
Total debt	$ 422,852	$ 422,896
Stated interest rate	8.50%	8.50%				8.50%
Senior notes | 7% Senior Notes due August 15, 2022
Debt Instrument [Line Items]
Total debt	$ 345,829	$ 345,338
Stated interest rate	7.00%	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	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Total debt	$ 1,185,684	$ 1,105,776
Senior Notes and Subordinated Amortizing Notes
Debt Instrument [Line Items]
2,016	0
2,017	78,844
2,018	59,814
2,019	279,654
2,020	425,000
Thereafter	350,000
Total debt	$ 1,193,312

Senior Notes, Secured, and Un41

Senior Notes, Secured, and Unsecured Indebtedness - Narrative (Details) $ in Thousands	Sep. 30, 2016USD ($)land_acquisition	Dec. 31, 2015USD ($)	Aug. 11, 2014	Mar. 31, 2014	Nov. 08, 2012
Debt Instrument [Line Items]
Deferred loan costs	$ 11,400
Notes payable	$ 259,342	$ 175,181
Number of land acquisitions using seller financing | land_acquisition	2
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	$ 3,800
Senior notes | 8 1/2% Senior Notes due November 15, 2020
Debt Instrument [Line Items]
Stated interest rate	8.50%	8.50%			8.50%
Unamortized premium	$ 2,900
Deferred loan costs	$ 5,100
Senior notes | 7% Senior Notes due August 15, 2022
Debt Instrument [Line Items]
Stated interest rate	7.00%	7.00%	7.00%
Unamortized premium	$ 900
Deferred loan costs	$ 5,000
Senior notes | 5 3/4% Senior Notes due April 15, 2019
Debt Instrument [Line Items]
Stated interest rate	5.75%	5.75%		5.75%
Deferred loan costs	$ 1,300
Seller financing
Debt Instrument [Line Items]
Notes payable	$ 32,419	$ 0
Seller financing | Note Payable Maturing in August 2017
Debt Instrument [Line Items]
Stated interest rate	7.00%
Notes payable	$ 3,000
Seller financing | Note Payable Maturing in June 2018
Debt Instrument [Line Items]
Stated interest rate	7.00%
Notes payable	$ 29,400

Senior Notes, Secured, and Un42

Senior Notes, Secured, and Unsecured Indebtedness - Schedule of Maturities of Construction Notes Payable (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Total notes payable	$ 259,342	$ 175,181
Construction Loans
Debt Instrument [Line Items]
Total notes payable	275,600
Outstanding	130,900
Construction Loans | March 2016 Construction Notes Payable
Debt Instrument [Line Items]
Total notes payable	33,400
Outstanding	$ 15,800
Current Rate	3.53%
Construction Loans | January 2016 Construction Notes Payable
Debt Instrument [Line Items]
Total notes payable	$ 35,000
Outstanding	$ 18,800
Current Rate	3.78%
Construction Loans | November 2015 Construction Notes Payable
Debt Instrument [Line Items]
Total notes payable	$ 42,500
Outstanding	$ 19,500
Current Rate	4.50%
Construction Loans | August 2015 Construction Notes Payable
Debt Instrument [Line Items]
Total notes payable	$ 14,200
Outstanding	$ 700
Current Rate	4.50%
Construction Loans | August 2015 Construction Notes Payable
Debt Instrument [Line Items]
Total notes payable	$ 37,500
Outstanding	$ 7,000
Current Rate	4.50%
Construction Loans | July 2015 Construction Notes Payable
Debt Instrument [Line Items]
Total notes payable	$ 22,500
Outstanding	$ 14,800
Current Rate	4.00%
Construction Loans | April 2015 Construction Notes Payable
Debt Instrument [Line Items]
Total notes payable	$ 18,500
Outstanding	$ 13,900
Current Rate	4.00%
Construction Loans | November 2014 Construction Notes Payable
Debt Instrument [Line Items]
Total notes payable	$ 24,000
Outstanding	$ 13,100
Current Rate	4.00%
Construction Loans | November 2014 Construction Notes Payable
Debt Instrument [Line Items]
Total notes payable	$ 22,000
Outstanding	$ 12,700
Current Rate	4.00%
Construction Loans | March 2014 Construction Notes Payable
Debt Instrument [Line Items]
Total notes payable	$ 26,000
Outstanding	$ 14,600
Current Rate	3.53%

Senior Notes, Secured, and Un43

Senior Notes, Secured, and Unsecured Indebtedness - Schedule of Maturities of Construction Notes Payable (Footnote) (Details)	9 Months Ended
	Sep. 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	Jun. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015	Mar. 27, 2015	Mar. 31, 2014
Debt Instrument [Line Items]
Notes payable					$ 259,342,000	$ 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					4.37%	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		50.00%
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, Covenant, Tangible Net Worth, Minimum					$ 451,000,000
Debt instrument, subjective acceleration clause, percentage of EBITDA, minimum	50.00%
Debt Instrument, Covenant, Leverage Ratio, Maximum					65.00%
Debt Instrument, Covenant, Interest Coverage Ratio, Minimum					1.50
Debt Instrument, Covenant, Interest Coverage Ratio, Maximum Liquidity Used in Calculation					$ 50,000,000
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
Letter of Credit | Second Amended Facility
Debt Instrument [Line Items]
Minimum borrowing capacity	$ 50,000,000
Senior Notes | 5 3/4% Senior Notes due April 15, 2019
Debt Instrument [Line Items]
Stated interest rate					5.75%	5.75%		5.75%
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Notes payable					$ 96,000,000	$ 65,000,000
Scenario, Forecast | Revolving Credit Facility | Second Amended Facility
Debt Instrument [Line Items]
Debt Instrument, Covenant, Leverage Ratio, Maximum			60.00%	62.50%

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	Sep. 30, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 03, 2014shares
Debt Instrument [Line Items]
Total debt | $		$ 1,185,684	$ 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 | $		8,970	14,066
Senior unsecured loan facility
Debt Instrument [Line Items]
Total debt | $		$ 8,970	$ 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	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Deferred loan costs												$ 11,400,000
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%	5.75%
Principal amount			$ 150,000,000									$ 150,000,000
Percentage of principal amount			100.00%
Percent exchanged									100.00%
Deferred loan costs												$ 1,300,000
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%	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												$ 5,100,000
Maturity date												Nov. 15, 2020
Net proceeds from issuance of debt				$ 104,700,000
Outstanding amount												$ 425,000,000
Unamortized premium												$ 2,900,000
Senior notes | 7% Senior Notes due August 15, 2022
Debt Instrument [Line Items]
Stated interest rate		7.00%										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												5,000,000
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)	Sep. 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	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014	Nov. 21, 2014	Aug. 11, 2014	Mar. 31, 2014	Nov. 08, 2012
ASSETS
Cash and cash equivalents	$ 40,710	$ 50,203	$ 26,379	$ 52,771
Restricted cash	0	504
Receivables	8,121	14,838
Escrow proceeds receivable	0	3,041
Real estate inventories	1,856,034	1,675,106
Investment in unconsolidated joint ventures	8,414	5,413
Goodwill	66,902	66,902
Intangibles, net	6,700	6,700
Deferred income taxes, net	79,728	79,726
Other assets, net	17,321	21,017
Investments in subsidiaries	0	0
Intercompany receivables	0	0
Total Assets	2,083,930	1,923,450
LIABILITIES AND EQUITY
Accounts payable	76,921	75,881
Accrued expenses	82,012	70,324
Notes payable	259,342	175,181
Total debt	1,185,684	1,105,776
Intercompany payables	0	0
Total liabilities	1,344,617	1,251,981
Equity
William Lyon Homes stockholders’ equity (deficit)	671,670	632,095
Noncontrolling interests	67,643	39,374
Total liabilities and equity	2,083,930	1,923,450
Subordinated amortizing notes
LIABILITIES AND EQUITY
Total debt	8,970	14,066
Equity
Stated interest rate					5.50%
5 3/4% Senior Notes due April 15, 2019
LIABILITIES AND EQUITY
Total debt	$ 148,691	$ 148,295
Equity
Stated interest rate	5.75%	5.75%
8 1/2% Senior Notes due November 15, 2020
LIABILITIES AND EQUITY
Total debt	$ 422,852	$ 422,896
Equity
Stated interest rate	8.50%	8.50%
7% Senior Notes due August 15, 2022
LIABILITIES AND EQUITY
Total debt	$ 345,829	$ 345,338
Equity
Stated interest rate	7.00%	7.00%
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	671,670	632,095
Intercompany receivables	0	0
Total Assets	671,670	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)	671,670	632,095
Noncontrolling interests	0	0
Total liabilities and equity	671,670	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	35,703	44,332	18,896	48,462
Restricted cash	0	504
Receivables	3,083	8,986
Escrow proceeds receivable	0	2,020
Real estate inventories	957,404	922,990
Investment in unconsolidated joint ventures	8,264	5,263
Goodwill	14,209	14,209
Intangibles, net	0	0
Deferred income taxes, net	79,728	79,726
Other assets, net	15,804	18,980
Investments in subsidiaries	(25,323)	(34,522)
Intercompany receivables	0	0
Total Assets	1,088,872	1,062,488
LIABILITIES AND EQUITY
Accounts payable	54,287	45,065
Accrued expenses	75,808	62,167
Notes payable	133,126	80,915
Intercompany payables	176,227	170,757
Total liabilities	1,365,790	1,289,499
Equity
William Lyon Homes stockholders’ equity (deficit)	(276,917)	(227,011)
Noncontrolling interests	(1)	0
Total liabilities and equity	1,088,872	1,062,488
Reporting Entities | California Lyon | Subordinated amortizing notes
LIABILITIES AND EQUITY
Total debt	8,970	14,066
Reporting Entities | California Lyon | 5 3/4% Senior Notes due April 15, 2019
LIABILITIES AND EQUITY
Total debt	148,691	148,295
Reporting Entities | California Lyon | 8 1/2% Senior Notes due November 15, 2020
LIABILITIES AND EQUITY
Total debt	422,852	422,896
Reporting Entities | California Lyon | 7% Senior Notes due August 15, 2022
LIABILITIES AND EQUITY
Total debt	345,829	345,338
Reporting Entities | Guarantor Subsidiaries
ASSETS
Cash and cash equivalents	528	2,723	927	573
Restricted cash	0	0
Receivables	1,757	937
Escrow proceeds receivable	0	1,021
Real estate inventories	662,342	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	1,197	1,738
Investments in subsidiaries	(608,347)	(561,546)
Intercompany receivables	248,639	239,248
Total Assets	365,659	333,426
LIABILITIES AND EQUITY
Accounts payable	16,343	27,807
Accrued expenses	6,098	8,059
Notes payable	2,979	0
Intercompany payables	0	0
Total liabilities	25,420	35,866
Equity
William Lyon Homes stockholders’ equity (deficit)	340,240	297,560
Noncontrolling interests	0	0
Total liabilities and equity	365,660	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	4,479	3,148	6,556	3,736
Restricted cash	0	0
Receivables	3,281	4,915
Escrow proceeds receivable	0	0
Real estate inventories	236,288	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	320	299
Investments in subsidiaries	0	0
Intercompany receivables	0	0
Total Assets	244,368	170,716
LIABILITIES AND EQUITY
Accounts payable	6,291	3,009
Accrued expenses	106	98
Notes payable	123,237	94,266
Intercompany payables	72,412	68,491
Total liabilities	202,046	165,864
Equity
William Lyon Homes stockholders’ equity (deficit)	(25,323)	(34,522)
Noncontrolling interests	67,644	39,374
Total liabilities and equity	244,367	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	(38,000)	(36,027)
Intercompany receivables	(248,639)	(239,248)
Total Assets	(286,639)	(275,275)
LIABILITIES AND EQUITY
Accounts payable	0	0
Accrued expenses	0	0
Notes payable	0	0
Intercompany payables	(248,639)	(239,248)
Total liabilities	(248,639)	(239,248)
Equity
William Lyon Homes stockholders’ equity (deficit)	(38,000)	(36,027)
Noncontrolling interests	0	0
Total liabilities and equity	(286,639)	(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
LIABILITIES AND EQUITY
Total debt	917,372	916,529
Senior Notes | 5 3/4% Senior Notes due April 15, 2019
LIABILITIES AND EQUITY
Total debt	$ 148,691	$ 148,295
Equity
Stated interest rate	5.75%	5.75%					5.75%
Senior Notes | 8 1/2% Senior Notes due November 15, 2020
LIABILITIES AND EQUITY
Total debt	$ 422,852	$ 422,896
Equity
Stated interest rate	8.50%	8.50%						8.50%
Senior Notes | 7% Senior Notes due August 15, 2022
LIABILITIES AND EQUITY
Total debt	$ 345,829	$ 345,338
Equity
Stated interest rate	7.00%	7.00%				7.00%

Senior Notes, Secured, and Un49

Senior Notes, Secured, and Unsecured Indebtedness - Condensed Consolidating Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Operating revenue
Sales	$ 342,628	$ 244,311	$ 928,982	$ 681,766
Construction services	86	4,896	3,810	19,304
Management fees	0	0	0	0
Operating revenue	342,714	249,207	932,792	701,070
Operating costs
Cost of sales — homes	(285,896)	(200,328)	(769,705)	(554,657)
Construction services	(86)	(4,146)	(3,458)	(16,073)
Sales and marketing	(18,246)	(15,352)	(51,351)	(42,480)
General and administrative	(17,360)	(13,981)	(51,879)	(41,344)
Amortization of intangible assets	0	(45)	0	(710)
Other	198	(592)	(612)	(1,549)
Total operating costs	(321,390)	(234,444)	(877,005)	(656,813)
Income from subsidiaries	0	0	0	0
Operating income (loss)	21,324	14,763	55,787	44,257
Equity in income of unconsolidated joint ventures	1,435	1,018	3,810	1,781
Other income (expense), net	2,050	1,452	2,803	2,875
Income (loss) before provision for income taxes	24,809	17,233	62,400	48,913
Provision for income taxes	(8,295)	(4,956)	(20,859)	(15,780)
Net income (loss)	16,514	12,277	41,541	33,133
Less: Net income attributable to noncontrolling interests	(3,445)	(195)	(4,897)	(2,092)
Net income available to common stockholders	13,069	12,082	36,644	31,041
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
Other	0	0	0	0
Total operating costs	0	0	0	0
Income from subsidiaries	13,069	12,082	36,644	31,041
Operating income (loss)	13,069	12,082	36,644	31,041
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	13,069	12,082	36,644	31,041
Provision for income taxes	0	0	0	0
Net income (loss)	13,069	12,082	36,644	31,041
Less: Net income attributable to noncontrolling interests	0	0	0	0
Net income available to common stockholders	13,069	12,082	36,644	31,041
Reporting Entities | California Lyon
Operating revenue
Sales	105,962	90,594	344,459	285,136
Construction services	86	4,896	3,810	19,304
Management fees	(1,541)	(138)	(2,587)	(844)
Operating revenue	104,507	95,352	345,682	303,596
Operating costs
Cost of sales — homes	(84,652)	(71,488)	(276,481)	(220,846)
Construction services	(86)	(4,146)	(3,458)	(16,073)
Sales and marketing	(6,205)	(6,312)	(18,080)	(18,478)
General and administrative	(14,268)	(11,515)	(41,749)	(33,503)
Amortization of intangible assets		(45)		(710)
Other	140	(889)	(587)	(2,671)
Total operating costs	(105,071)	(94,395)	(340,355)	(292,281)
Income from subsidiaries	3,548	623	7,472	(5,845)
Operating income (loss)	2,984	1,580	12,799	5,470
Equity in income of unconsolidated joint ventures	1,140	1,018	3,001	1,781
Other income (expense), net	2,550	1,395	3,873	6,083
Income (loss) before provision for income taxes	6,674	3,993	19,673	13,334
Provision for income taxes	(8,295)	(4,956)	(20,859)	(15,780)
Net income (loss)	(1,621)	(963)	(1,186)	(2,446)
Less: Net income attributable to noncontrolling interests	0	0	0	0
Net income available to common stockholders	(1,621)	(963)	(1,186)	(2,446)
Reporting Entities | Guarantor Subsidiaries
Operating revenue
Sales	181,594	149,122	494,597	368,519
Construction services	0	0	0	0
Management fees	0	0	0	0
Operating revenue	181,594	149,122	494,597	368,519
Operating costs
Cost of sales — homes	(151,306)	(124,476)	(411,339)	(309,076)
Construction services	0	0	0	0
Sales and marketing	(9,774)	(8,244)	(26,731)	(21,544)
General and administrative	(3,091)	(2,466)	(10,129)	(7,841)
Amortization of intangible assets		0		0
Other	69	297	(14)	1,122
Total operating costs	(164,102)	(134,889)	(448,213)	(337,339)
Income from subsidiaries	0	0	0	0
Operating income (loss)	17,492	14,233	46,384	31,180
Equity in income of unconsolidated joint ventures	295	0	809	0
Other income (expense), net	(19)	368	(34)	5,685
Income (loss) before provision for income taxes	17,768	14,601	47,159	36,865
Provision for income taxes	0	0	0	0
Net income (loss)	17,768	14,601	47,159	36,865
Less: Net income attributable to noncontrolling interests	0	0	0	0
Net income available to common stockholders	17,768	14,601	47,159	36,865
Reporting Entities | Non-Guarantor Subsidiaries
Operating revenue
Sales	55,072	4,595	89,926	28,111
Construction services	0	0	0	0
Management fees	0	0	0	0
Operating revenue	55,072	4,595	89,926	28,111
Operating costs
Cost of sales — homes	(48,397)	(4,226)	(79,298)	(23,891)
Construction services	0	0	0	0
Sales and marketing	(2,267)	(796)	(6,540)	(2,458)
General and administrative	(1)	0	(1)	0
Amortization of intangible assets		0		0
Other	(11)	0	(11)	0
Total operating costs	(50,676)	(5,022)	(85,850)	(26,349)
Income from subsidiaries	0	0	0	0
Operating income (loss)	4,396	(427)	4,076	1,762
Equity in income of unconsolidated joint ventures	0	0	0	0
Other income (expense), net	(481)	(311)	(1,036)	(8,893)
Income (loss) before provision for income taxes	3,915	(738)	3,040	(7,131)
Provision for income taxes	0	0	0	0
Net income (loss)	3,915	(738)	3,040	(7,131)
Less: Net income attributable to noncontrolling interests	(3,445)	(195)	(4,897)	(2,092)
Net income available to common stockholders	470	(933)	(1,857)	(9,223)
Consolidation, Eliminations
Operating revenue
Sales	0	0	0	0
Construction services	0	0	0	0
Management fees	1,541	138	2,587	844
Operating revenue	1,541	138	2,587	844
Operating costs
Cost of sales — homes	(1,541)	(138)	(2,587)	(844)
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
Other	0	0	0	0
Total operating costs	(1,541)	(138)	(2,587)	(844)
Income from subsidiaries	(16,617)	(12,705)	(44,116)	(25,196)
Operating income (loss)	(16,617)	(12,705)	(44,116)	(25,196)
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	(16,617)	(12,705)	(44,116)	(25,196)
Provision for income taxes	0	0	0	0
Net income (loss)	(16,617)	(12,705)	(44,116)	(25,196)
Less: Net income attributable to noncontrolling interests	0	0	0	0
Net income available to common stockholders	$ (16,617)	$ (12,705)	$ (44,116)	$ (25,196)

Senior Notes, Secured, and Un50

Senior Notes, Secured, and Unsecured Indebtedness - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating activities
Net cash (used in) provided by operating activities	$ (82,978)	$ (220,354)
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	(773)	(1,288)
Investments in subsidiaries	0	0
Net cash provided by (used in) investing activities	5,415	(2,288)
Financing activities
Proceeds from borrowings on notes payable	111,992	84,926
Principal payments on notes payable	(91,250)	(21,123)
Proceeds from issuance of 7% senior notes	0	51,000
Proceeds from borrowings on Revolver	198,000	194,000
Payments on Revolver	(167,000)	(109,000)
Principal payments on subordinated amortizing notes	(5,096)	(4,999)
Payment of deferred loan costs	(792)	(1,755)
Proceeds from stock options exercised	0	106
Shares remitted to, or withheld by the Company for employee tax withholding	(918)	(1,826)
Purchase of common stock	(918)
Excess income tax benefit from stock based awards	(238)	0
Noncontrolling interest contributions	36,140	13,125
Noncontrolling interest distributions	(12,768)	(8,204)
Advances to affiliates	0	0
Intercompany receivables/payables	0	0
Net cash provided by financing activities	68,070	196,250
Net decrease in cash and cash equivalents	(9,493)	(26,392)
Cash and cash equivalents — beginning of period	50,203	52,771
Cash and cash equivalents — end of period	40,710	26,379
Reporting Entities | Delaware Lyon
Operating activities
Net cash (used in) provided by operating activities	(2,931)	(3,108)
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 issuance of 7% senior notes		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
Purchase of common stock	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	2,931	3,108
Net cash provided by financing activities	2,931	3,108
Net decrease 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	18,174	(148,129)
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	(809)	(1,375)
Investments in subsidiaries	(1,727)	(6,572)
Net cash provided by (used in) investing activities	3,652	(8,947)
Financing activities
Proceeds from borrowings on notes payable	2,211	30,415
Principal payments on notes payable	(10,440)	(8,725)
Proceeds from issuance of 7% senior notes		51,000
Proceeds from borrowings on Revolver	198,000	194,000
Payments on Revolver	(167,000)	(109,000)
Principal payments on subordinated amortizing notes	(5,096)	(4,999)
Payment of deferred loan costs	(792)	(1,755)
Proceeds from stock options exercised		106
Shares remitted to, or withheld by the Company for employee tax withholding		(1,826)
Purchase of common stock	(918)
Excess income tax benefit from stock based awards	(238)
Noncontrolling interest contributions	0	0
Noncontrolling interest distributions	0	0
Advances to affiliates	0	0
Intercompany receivables/payables	(46,182)	(21,706)
Net cash provided by financing activities	(30,455)	127,510
Net decrease in cash and cash equivalents	(8,629)	(29,566)
Cash and cash equivalents — beginning of period	44,332	48,462
Cash and cash equivalents — end of period	35,703	18,896
Reporting Entities | Guarantor Subsidiaries
Operating activities
Net cash (used in) provided by operating activities	(35,182)	(19,212)
Investing activities
Collection of related party note receivable	0
Investments in and advances to unconsolidated joint ventures		0
Purchases of property and equipment	56	65
Investments in subsidiaries	46,801	27,885
Net cash provided by (used in) investing activities	46,857	27,950
Financing activities
Proceeds from borrowings on notes payable	0	0
Principal payments on notes payable	0	(162)
Proceeds from issuance of 7% senior notes		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
Purchase of common stock	0
Excess income tax benefit from stock based awards	0
Noncontrolling interest contributions	0	0
Noncontrolling interest distributions	0	0
Advances to affiliates	(4,479)	(4,810)
Intercompany receivables/payables	(9,391)	(3,412)
Net cash provided by financing activities	(13,870)	(8,384)
Net decrease in cash and cash equivalents	(2,195)	354
Cash and cash equivalents — beginning of period	2,723	573
Cash and cash equivalents — end of period	528	927
Reporting Entities | Non-Guarantor Subsidiaries
Operating activities
Net cash (used in) provided by operating activities	(65,970)	(52,390)
Investing activities
Collection of related party note receivable	0
Investments in and advances to unconsolidated joint ventures		0
Purchases of property and equipment	(20)	22
Investments in subsidiaries	0	0
Net cash provided by (used in) investing activities	(20)	22
Financing activities
Proceeds from borrowings on notes payable	109,781	54,511
Principal payments on notes payable	(80,810)	(12,236)
Proceeds from issuance of 7% senior notes		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
Purchase of common stock	0
Excess income tax benefit from stock based awards	0
Noncontrolling interest contributions	36,140	13,125
Noncontrolling interest distributions	(12,768)	(8,204)
Advances to affiliates	11,056	9,327
Intercompany receivables/payables	3,922	(1,335)
Net cash provided by financing activities	67,321	55,188
Net decrease in cash and cash equivalents	1,331	2,820
Cash and cash equivalents — beginning of period	3,148	3,736
Cash and cash equivalents — end of period	4,479	6,556
Consolidation, Eliminations
Operating activities
Net cash (used in) provided by operating activities	2,931	2,485
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	(45,074)	(21,313)
Net cash provided by (used in) investing activities	(45,074)	(21,313)
Financing activities
Proceeds from borrowings on notes payable	0	0
Principal payments on notes payable	0	0
Proceeds from issuance of 7% senior notes		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
Purchase of common stock	0
Excess income tax benefit from stock based awards	0
Noncontrolling interest contributions	0	0
Noncontrolling interest distributions	0	0
Advances to affiliates	(6,577)	(4,517)
Intercompany receivables/payables	48,720	23,345
Net cash provided by financing activities	42,143	18,828
Net decrease 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	Sep. 30, 2016	Dec. 31, 2015
Financial liabilities:
Notes payable, fair value	$ 259,342	$ 175,181
Subordinated amortizing notes
Financial liabilities:
Long-term debt, fair value	8,432	12,122
5 3/4% Senior Notes due April 15, 2019
Financial liabilities:
Long-term debt, fair value	$ 153,375	$ 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	$ 445,188	$ 449,438
Stated interest rate	8.50%	8.50%
7% Senior Notes due August 15, 2022
Financial liabilities:
Long-term debt, fair value	$ 360,500	$ 350,875
Stated interest rate	7.00%	7.00%
Carrying Amount
Financial liabilities:
Notes payable, fair value	$ 259,342	$ 175,181
Carrying Amount | Subordinated amortizing notes
Financial liabilities:
Long-term debt, fair value	8,970	14,066
Carrying Amount | 5 3/4% Senior Notes due April 15, 2019
Financial liabilities:
Long-term debt, fair value	148,691	148,295
Carrying Amount | 8 1/2% Senior Notes due November 15, 2020
Financial liabilities:
Long-term debt, fair value	422,852	422,896
Carrying Amount | 7% Senior Notes due August 15, 2022
Financial liabilities:
Long-term debt, fair value	$ 345,829	$ 345,338

Related Party Transactions - Na

Related Party Transactions - Narrative (Details) - USD ($) $ in Millions	Sep. 03, 2009	Aug. 31, 2016
Related Party Transaction [Line Items]
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
Paulson & Co. Inc. | Investor
Related Party Transaction [Line Items]
Purchase price of lots		$ 9.3
Related party stock ownership		5.00%
Notes payable, related parties		$ 3

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Taxes [Line Items]
Effective income tax rate	33.40%	28.80%	33.40%	32.30%
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	54,700,000		54,700,000
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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Basic weighted average number of common shares outstanding (in shares)	36,801,464	36,573,099	36,746,727	36,534,554
Effect of dilutive securities:
Stock options, unvested common shares, and warrants (in shares)	636,633	1,465,119	672,364	1,396,633
Tangible equity units (in shares)	894,930	469,049	894,930	469,049
Diluted average shares outstanding (in shares)	38,333,027	38,507,267	38,314,021	38,400,236
Net income available to common stockholders	$ 13,069	$ 12,082	$ 36,644	$ 31,041
Basic income per common share (in USD per share)	$ 0.36	$ 0.33	$ 1	$ 0.85
Dilutive income per common share (in USD per share)	$ 0.34	$ 0.31	$ 0.96	$ 0.81
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	160,000
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

Stock Based Compensation - Narr

Stock Based Compensation - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 1,500	$ 1,600	$ 4,087	$ 4,828
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of stock (in shares)	31,571		291,368
Restricted stock | Other Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of stock (in shares)			250,304
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, March Schedule | 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, March Schedule | 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, March Schedule | 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%
Two Year Vesting Restricted Stock, August Schedule | Other Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of stock (in shares)			3,548
Two Year Vesting Restricted Stock, August Schedule | 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, August Schedule | 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%
One Year Vesting Restricted Stock | Other Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of stock (in shares)			20,697
One 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			100.00%
Two Year Vesting Restricted Stock, September Schedule | Other Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of stock (in shares)			7,326
Two Year Vesting Restricted Stock, September Schedule | 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, September Schedule | 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			$ 300
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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Loss Contingencies [Line Items]
Rent expense under cancelable and non-cancelable operating leases	$ 1	$ 1.1	$ 2.9	$ 2.8
Deposits as collateral for outstanding surety bonds	0		0		$ 0.5
Outstanding performance and surety bonds	195.9		195.9
Non-refundable deposits	55.6		55.6
Remaining purchase price of land	447.3		447.3
Project construction commitment
Loss Contingencies [Line Items]
Other commitment	$ 238.5		$ 238.5

Commitments and Contingencies57

Commitments and Contingencies - Schedule of Future Minimum Payments Under Non-Cancelable Operating Leases (Details) $ in Thousands	Sep. 30, 2016USD ($)
Future Minimum Payments Under Non-cancelable Operating Leases
2,016	$ 568,913,000
2,017	2,515,812,000
2,018	2,475,120,000
2,019	2,225,854,000
2,020	2,008,310,000
Thereafter	2,784,858,000
Total	$ 12,578,867,000