Document And Entity Information
Document And Entity Information | 12 Months Ended | ||
Dec. 31, 2018employee | Mar. 01, 2019shares | Jun. 30, 2018USD ($) | |
Entity Information [Line Items] | |||
Entity Number of Employees | employee | 390 | ||
Entity Registrant Name | Green Brick Partners, Inc. | ||
Entity Central Index Key | 1,373,670 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Shell Company | false | ||
Entity Public Float | $ | $ 237,001,514 | ||
Entity Common Stock, Shares Outstanding | shares | 50,575,266 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Redeemable Noncontrolling Interest, Equity, Carrying Amount | $ 8,531 | $ 0 |
ASSETS | ||
Cash | 38,315 | 36,684 |
Restricted cash | 3,440 | 3,605 |
Receivables | 4,842 | 1,605 |
Inventory | 668,961 | 496,054 |
Equity Method Investments | 20,269 | 16,878 |
Property and equipment, net | 4,690 | 804 |
Earnest money deposits | 16,793 | 18,393 |
Deferred income tax assets, net | 16,499 | 31,211 |
Intangible Assets, Net (Excluding Goodwill) | 856 | 0 |
Goodwill | 680 | 0 |
Other assets | 8,681 | 5,769 |
Total assets | 784,026 | 611,003 |
LIABILITIES AND EQUITY | ||
Accounts payable | 26,091 | 22,354 |
Accrued expenses | 29,201 | 18,465 |
Customer and builder deposits | 31,978 | 21,447 |
Borrowings on lines of credit, net | 200,386 | 105,773 |
Notes payable | 0 | 9,926 |
Business Combination, Contingent Consideration, Liability | 2,207 | 0 |
Total liabilities | 289,863 | 177,965 |
Preferred Stock, Value, Issued | 0 | 0 |
Equity | ||
Common shares, $0.01 par value: 100,000,000 shares authorized; 50,719,884 and 50,598,901 issued as of December 31, 2018 and 2017, respectively; 50,583,128 and 50,598,901 outstanding as of December 31, 2018 and 2017, respectively | 507 | 506 |
Treasury stock at cost, 136,756 shares | (981) | 0 |
Additional Paid in Capital | 291,299 | 289,938 |
Retained earnings | 177,526 | 125,903 |
Total Green Brick Partners, Inc. stockholders’ equity | 468,351 | 416,347 |
Noncontrolling interests | 17,281 | 16,691 |
Total equity | 485,632 | 433,038 |
Total liabilities and equity | $ 784,026 | $ 611,003 |
Consolidated Balance Sheets _Pa
Consolidated Balance Sheets [Parenthetical] - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | |
Common Stock, Shares, Outstanding | 50,583,128 | |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | |
Preferred Stock, Shares Authorized | 5,000,000 | |
Preferred Stock, Shares Outstanding | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Total revenues | $ 623,647,000 | $ 458,250,000 | $ 390,985,000 |
Total cost of revenues | 493,317,000 | 359,216,000 | 303,223,000 |
Total gross profit | 130,330,000 | 99,034,000 | 87,762,000 |
Selling, general and administrative expense | 56,830,000 | 39,016,000 | 38,629,000 |
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 1,693,000 | 0 | 0 |
Operating profit | 71,807,000 | 60,018,000 | 49,133,000 |
Income (Loss) from Equity Method Investments | 7,259,000 | 2,746,000 | 0 |
Other income, net | 2,605,000 | 1,473,000 | 1,421,000 |
Income before income taxes | 81,671,000 | 64,237,000 | 50,554,000 |
Income tax expense | 17,136,000 | 39,031,000 | 15,381,000 |
Net income | 64,535,000 | 25,206,000 | 35,173,000 |
Less: Net income attributable to noncontrolling interests | 12,912,000 | 10,236,000 | 11,417,000 |
Net income attributable to Green Brick Partners, Inc. | $ 51,623,000 | $ 14,970,000 | $ 23,756,000 |
Net income attributable to Green Brick Partners, Inc. per common share: | |||
Earnings Per Share, Basic | $ 1.02 | $ 0.30 | $ 0.49 |
Earnings Per Share, Diluted | $ 1.02 | $ 0.30 | $ 0.49 |
Weighted average common shares used in the calculation of net income attributable to Green Brick Partners, Inc. per common share: | |||
Weighted Average Number of Shares Outstanding, Basic | 50,652 | 49,597 | 48,879 |
Weighted Average Number of Shares Outstanding, Diluted | 50,751 | 49,683 | 48,886 |
Residential Real Estate [Member] | |||
Total revenues | $ 578,893,000 | $ 439,520,000 | $ 375,821,000 |
Total cost of revenues | 457,151,000 | 345,360,000 | 292,724,000 |
Real Estate, Other [Member] | |||
Total revenues | 44,754,000 | 18,730,000 | 15,164,000 |
Total cost of revenues | $ 36,166,000 | $ 13,856,000 | $ 10,499,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Total | Common Stock | Additional Paid-in Capital |
Retained Earnings (Accumulated Deficit) | $ 87,177,000 | ||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 12,323,000 | ||
Common Stock, Shares, Issued | 48,833,323 | ||
Common Stock, Value, Issued | $ 488,000 | ||
Treasury Stock, Shares | 0 | ||
Treasury Stock, Common, Value | $ 0 | ||
Stockholders' Equity Attributable to Parent | 359,532,000 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Additional Paid in Capital | 271,867,000 | ||
Balance at Dec. 31, 2016 | 401,485,000 | ||
Balance at Dec. 31, 2015 | 371,855,000 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Amortization of deferred share-based compensation | 274,000 | ||
Adjustments to Additional Paid in Capital, Share-based Compensation, Stock Options, Requisite Service Period Recognition | 361,000 | ||
Contributions from noncontrolling interests | $ 2,928,000 | ||
Issuance of common stock under 2014 Equity Plan (in shares) | 122,586 | ||
Issuance of common stock under 2014 Omnibus Equity Incentive Plan | $ 649,000 | $ 2,000 | $ 647,000 |
Distributions | (9,755,000) | ||
Net income | 35,173,000 | ||
Net Income (Loss) Attributable to Parent | 23,756,000 | ||
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest | 11,417,000 | ||
Retained Earnings (Accumulated Deficit) | 110,933,000 | ||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 16,913,000 | ||
Common Stock, Shares, Issued | 48,955,909 | ||
Common Stock, Value, Issued | $ 490,000 | ||
Treasury Stock, Shares | 0 | ||
Treasury Stock, Common, Value | $ 0 | ||
Stockholders' Equity Attributable to Parent | 384,572,000 | ||
Additional Paid in Capital | 273,149,000 | ||
Balance at Dec. 31, 2017 | 433,038,000 | ||
Balance at Dec. 31, 2016 | 401,485,000 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Amortization of deferred share-based compensation | 356,000 | ||
Adjustments to Additional Paid in Capital, Share-based Compensation, Stock Options, Requisite Service Period Recognition | 289,000 | ||
Adjustments to Additional Paid in Capital, Other | 198,000 | ||
Contributions from noncontrolling interests | $ 438,000 | ||
Stock Issued During Period, Shares, Acquisitions | 1,477,000 | ||
Common stock issued in connection with the investment in Challenger | (15,000) | (14,607,000) | |
Issuance of common stock under 2014 Equity Plan (in shares) | 229,049 | ||
Issuance of common stock under 2014 Omnibus Equity Incentive Plan | $ 1,926,000 | 2,000 | 1,924,000 |
Adjustments Related to Tax Withholding for Share-based Compensation | $ (586,000) | (1,000) | (585,000) |
Shares Paid for Tax Withholding for Share Based Compensation | (63,057) | ||
Distributions | $ (10,896,000) | ||
Net income | 25,206,000 | ||
Net Income (Loss) Attributable to Parent | 14,970,000 | ||
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest | 10,236,000 | ||
Retained Earnings (Accumulated Deficit) | $ 125,903,000 | ||
Common stock, shares authorized (in shares) | 100,000,000 | ||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 16,691,000 | ||
Common Stock, Shares, Issued | 50,598,901 | ||
Common Stock, Value, Issued | $ 506,000 | ||
Treasury Stock, Shares | 0 | ||
Treasury Stock, Common, Value | $ 0 | ||
Stockholders' Equity Attributable to Parent | 416,347,000 | ||
Additional Paid in Capital | 289,938,000 | ||
Balance at Dec. 31, 2018 | 485,632,000 | ||
Balance at Dec. 31, 2017 | 433,038,000 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Amortization of deferred share-based compensation | 404,000 | ||
Adjustments to Additional Paid in Capital, Share-based Compensation, Stock Options, Requisite Service Period Recognition | 288,000 | ||
Contributions from noncontrolling interests | $ 5,000 | ||
Stock Issued During Period, Shares, Acquisitions | 20,000 | ||
Common stock issued in connection with the investment in Challenger | 0 | ||
Treasury Stock, Shares, Acquired | (136,756) | ||
Treasury Stock, Value, Acquired, Cost Method | $ (981,000) | ||
Issuance of common stock under 2014 Equity Plan (in shares) | 140,211 | ||
Issuance of common stock under 2014 Omnibus Equity Incentive Plan | $ 1,082,000 | 1,000 | 1,081,000 |
Adjustments Related to Tax Withholding for Share-based Compensation | $ (412,000) | $ 0 | $ (412,000) |
Shares Paid for Tax Withholding for Share Based Compensation | (39,228) | ||
Distributions | $ (10,747,000) | ||
Net income | 64,535,000 | ||
Net Income (Loss) Attributable to Parent | 51,623,000 | ||
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest | 11,332,000 | ||
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | 62,955,000 | ||
Retained Earnings (Accumulated Deficit) | 177,526,000 | ||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 17,281,000 | ||
Common Stock, Shares, Issued | 50,719,884 | ||
Common Stock, Value, Issued | $ 507,000 | ||
Treasury Stock, Shares | (136,756) | ||
Treasury Stock, Common, Value | $ (981,000) | ||
Stockholders' Equity Attributable to Parent | 468,351,000 | ||
Additional Paid in Capital | $ 291,299,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 64,535 | $ 25,206 | $ 35,173 |
Adjustment to reconcile net income to net cash used in operating activities: | |||
Depreciation and amortization expense | 2,943 | 325 | 286 |
Share-based compensation | 1,774 | 2,571 | 1,284 |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 1,693 | 0 | 0 |
Deferred income taxes, net | 14,712 | 36,299 | 13,147 |
Equity in income of unconsolidated entities | (7,259) | (2,746) | 0 |
Cash distributions of income from unconsolidated entities | 4,623 | 974 | 0 |
Changes in operating assets and liabilities: | |||
(Increase) decrease in receivables | (3,029) | 843 | 866 |
Increase in inventory | (129,291) | (95,452) | (70,204) |
Decrease (increase) in earnest money deposits | 2,119 | (3,097) | (383) |
Increase in other assets | (2,741) | (1,701) | (2,325) |
(Decrease) increase in accounts payable | (483) | 7,241 | 1,583 |
Increase in accrued expenses | 9,470 | 4,175 | 8,571 |
Increase in customer and builder deposits | 1,458 | 7,359 | 7,150 |
Net cash used in operating activities | (39,476) | (18,003) | (4,852) |
Payments to Acquire Businesses, Net of Cash Acquired | (26,861) | 0 | 0 |
Cash flows from investing activities: | |||
Investments in unconsolidated entities | 755 | 286 | 0 |
Purchase of property and equipment | (3,211) | (149) | (458) |
Net cash used in investing activities | (30,827) | (435) | (458) |
Cash flows from financing activities: | |||
Borrowings from lines of credit | 165,000 | 88,500 | 63,000 |
Payments of Debt Issuance Costs | (870) | (809) | (326) |
Proceeds from notes payable | 0 | 0 | 2,660 |
Repayments of lines of credit | (70,000) | (56,500) | (35,500) |
Repayments of notes payable | (10,226) | (1,022) | (1,870) |
Withholdings of taxes from vesting of restricted stock awards | (412) | (586) | 0 |
Payments for Repurchase of Common Stock | (981) | 0 | 0 |
Contributions from noncontrolling interests | 5 | 438 | 2,928 |
Distributions to noncontrolling interests | (10,747) | (10,896) | (9,755) |
Net cash provided by financing activities | 71,769 | 19,125 | 21,137 |
Net increase in cash and restricted cash | 1,466 | 687 | 15,827 |
Restricted Cash | 3,440 | 3,605 | 4,445 |
Cash | 38,315 | 36,684 | 35,157 |
Restricted cash, beginning of period | 40,289 | 39,602 | |
Cash and restricted cash, end of period | 41,755 | 40,289 | 39,602 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest, net of capitalized interest | 0 | 0 | 0 |
Cash paid for income taxes, net of refunds | 4,611 | 2,941 | 1,503 |
Supplemental disclosure of noncash investing and financing activities: | |||
Equity issuance related to investment in unconsolidated entity | $ 0 | $ 14,622 | $ 0 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) as set forth in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) and applicable regulations of the Securities and Exchange Commission (“SEC”). Principles of Consolidation The accompanying consolidated financial statements include the accounts of Green Brick Partners, Inc., its controlled subsidiaries, and variable interest entities (“VIEs”) in which Green Brick Partners, Inc. or one of its controlled subsidiaries is deemed to be the primary beneficiary (together, the “Company”, “we”, or “Green Brick”). All intercompany balances and transactions have been eliminated in consolidation. The Company uses the equity method of accounting for its investments in unconsolidated entities over which it exercises significant influence but does not have a controlling interest. Under the equity method, the Company’s share of the unconsolidated entities’ earnings or losses is included in the consolidated statements of income. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management of the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes, including the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. Cash The cash balances of the Company are held with multiple financial institutions. At times, cash balances at certain banks and financial institutions may exceed insurable amounts. The Company believes it mitigates this risk by monitoring the financial stability of institutions holding material cash balances. The Company has not experienced any losses in such accounts and believes that the risk of loss is minimal. Restricted Cash Restricted cash primarily relates to cash held in escrow for sales of developed lots to third parties and customer deposits from homebuyers. Receivables Receivables consist of amounts collectible from manufacturing rebates earned by our homebuilders during the normal course of business, amounts collectible from third-party escrow agents related to closings on land, lots and homes, amounts collectible related to mechanic’s lien contracts, as well as income tax receivables. As of December 31, 2018 and 2017 , all amounts are considered fully collectible and no allowance for doubtful accounts is recorded. Any allowance for doubtful accounts is estimated based on our historical losses, the existing economic conditions, and the financial stability of our customers. Receivables are written off in the period that they are deemed uncollectible. Inventory and Cost of Revenues Inventory consists of undeveloped land, raw land scheduled for development, land in the process of development, land held for sale, developed lots, homes completed and under construction, and model homes. Inventory is valued at cost unless the carrying value is determined to be not recoverable in which case the affected inventory is written down to fair value. Cost includes any related pre-acquisition costs that are directly identifiable with a specific property so long as those pre-acquisition costs are anticipated to be recoverable at the sale of the property. Residential lots held for sale and lots held for development include the initial cost of acquiring the land as well as certain costs capitalized related to developing the land into individual residential lots including direct overhead, interest and real estate taxes. Land development and other project costs, including direct overhead, interest and property taxes incurred during development and home construction, are capitalized. Land development and other common costs that benefit an entire community are allocated to individual lots or homes based on relative sales value. The costs of completed lots are transferred to work in process when home construction begins. Home construction costs and related carrying charges (principally interest and real estate taxes) are allocated to the cost of individual homes. Inventory costs for completed homes are expensed upon closing and delivery of the homes. Changes to estimated total land development costs subsequent to initial home closings in a community are generally allocated to the unsold homes in the community on a pro-rata basis. The life cycle of a community generally ranges from two to six years, commencing with the acquisition of land, continuing through the land development phase, construction, and concluding with the sale and delivery of homes. We recognize costs as incurred on our mechanic’s lien contracts. Impairment of Inventory In accordance with the ASC 360, Property, Plant, and Equipment (“ASC 360”), we evaluate our inventory for indicators of impairment by individual community and development during each reporting period. For our builder operations segments, during each reporting period, community gross margins are reviewed by management. In the event that homebuilding inventory in an individual community is moving at a slower than anticipated absorption pace or the average sales prices or margins within an individual community are trending downward and are anticipated to continue to trend downward over the life of the community, the Company will further investigate the community and evaluate it for impairment. For our land development segment, we perform a quarterly review for indicators of impairment for each project which involves projecting future lot closings based on executed contracts and comparing these revenues to projected costs. In determining the allocation of costs to a particular land parcel, we rely on project budgets which are based on a variety of assumptions, including assumptions about development schedules and future costs to be incurred. It is common that actual results differ from budgeted amounts for various reasons, including delays, increases in costs that have not been committed, unforeseen issues encountered during project development that fall outside the scope of existing contracts, or items that ultimately cost more or less than the budgeted amount. We apply procedures to maintain best estimates in our budgets, including assessing and revising project budgets on a periodic basis, obtaining commitments from subcontractors and vendors for future costs to be incurred and utilizing the most recent information available to estimate costs. Each reporting period, management reviews the real estate assets, including land held for sale, to determine whether the estimated remaining undiscounted future cash flows are more or less than the asset’s carrying value. The estimated cash flows are determined by projecting the remaining revenue from lot closings based on the contractual lot takedowns remaining or historical/projected home sales/delivery absorptions for homebuilding operations and then comparing such projections to the remaining projected expenditures for development or home construction. Remaining projected expenditures are based on the most current pricing/bids received from subcontractors for current phases or homes under development. For future phases of land development, management uses its judgment to project potential cost increases. In determining the estimated cash flows for land held for sale, management considers recent comparisons to market comparable transactions, bona fide letters of intent from outside parties, executed sales contracts, broker quotes, and similar information. When projecting revenue, management does not assume improvement in market conditions. If the estimated undiscounted cash flows are more than the asset’s carrying value, no impairment adjustment is required. However, if the estimated undiscounted cash flows are less than the asset’s carrying value, the asset is deemed impaired and will be written down to fair value less associated costs to sell. These impairment evaluations require us to make estimates and assumptions regarding future conditions, including the timing and amounts of development costs and sales prices of real estate assets, to determine if expected future cash flows will be sufficient to recover the asset’s carrying value. Fair value is determined based on estimated future cash flows discounted for inherent risks associated with real estate assets. These discounted cash flows are impacted by expected risk based on estimated land development activities, construction and delivery timelines, market risk of price erosion, uncertainty of development or construction cost increases, and other risks specific to the asset or market conditions where the asset is located when the assessment is made. These factors are specific to each community and may vary among communities. When estimating cash flows of a community, management makes various assumptions, including: (i) expected sales prices and sales incentives to be offered, including the number of homes available, pricing and incentives being offered by us or other builders, and future sales price adjustments based on market and economic trends; (ii) expected sales pace and cancellation rates based on local housing market conditions, competition and historical trends; (iii) costs expended to date and expected to be incurred including, but not limited to, land and land development costs, home construction costs, interest costs, indirect construction and overhead costs, and selling and marketing costs; (iv) alternative product offerings that may be offered that could have an impact on sales pace, sales price and/or building costs; and (v) alternative uses for the property. Many assumptions are interdependent and a change in one may require a corresponding change to other assumptions. For example, increasing or decreasing sales absorption rates has a direct impact on the estimated per unit sales price of a home, the level of time-sensitive costs (such as indirect construction, overhead and carrying costs), and selling and marketing costs (such as model home maintenance costs and advertising costs). Due to uncertainties in the estimation process, the volatility in demand for new housing and the long life cycle of many communities, actual results could differ significantly from such estimates. Capitalization of Interest The Company capitalizes interest costs incurred to inventory during development and other qualifying activities. Interest capitalized as cost of inventory is charged to cost of revenues as related homes, land and lots are closed. Interest incurred on undeveloped land is directly expensed and included in interest expense in our consolidated statements of income. Investments in Unconsolidated Entities In accordance with ASC 323, Investments - Equity Method and Joint Ventures (“ASC 323”) , the Company uses the equity method of accounting for its investments in unconsolidated entities over which it exercises significant influence but does not have a controlling interest. The equity method of accounting requires the investment to be initially recorded at cost and subsequently adjusted for the Company ’ s share of equity in the unconsolidated entity’s earnings or losses . The Company evaluates the carrying amount of the investments in unconsolidated entities for impairment in accordance with ASC 323. If the Company determines that a loss in the value of the investment is other than temporary, the Company writes down the investment to its estimated fair value. Any such losses are recorded to e quity in income of unconsolidated entities in the Company ’ s consolidated statements of income. Due to uncertainties in the estimation process and the volatility in demand for new housing, actual results could differ significantly from such estimates. The Company has made an election to classify distributions received from unconsolidated entities using the nature of the distribution approach. Distributions received are classified as cash inflows from operating activities based on the nature of the activities of the investee that generated the distribution. Variable Interest Entities The Company accounts for variable interest entities (“VIEs”) in accordance with ASC 810, Consolidation (“ASC 810”). In accordance with ASC 810, an entity is a VIE when: (a) the equity investment at risk in the entity is not sufficient to permit the entity to finance its activities without additional subordinated financial support provided by other parties, including the equity holders; (b) the entity’s equity holders as a group either (i) lack the direct or indirect ability to make decisions about the entity, (ii) are not obligated to absorb expected losses of the entity or (iii) do not have the right to receive expected residual returns of the entity; or (c) the entity’s equity holders have voting rights that are not proportionate to their economic interests, and the activities of the entity involve or are conducted on behalf of the equity holder with disproportionately few voting rights. If an entity is deemed to be a VIE pursuant to ASC 810, the enterprise that has both (i) the power to direct the activities of the VIE that most significantly impacts the entity’s economic performance and (ii) the obligation to absorb the expected losses of the entity or right to receive benefits from the entity that could be potentially significant to the VIE is considered the primary beneficiary and must consolidate the VIE. In accordance with ASC 810, the Company performs ongoing reassessments of whether it is the primary beneficiary of a VIE. The financial statements of the VIEs for which the Company is considered to be the primary beneficiary, if any, are consolidated in the Company’s consolidated financial statements. The noncontrolling interests attributable to other beneficiaries of the VIEs are included as noncontrolling interests in the Company’s consolidated financial statements. Property and Equipment, Net Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed over the estimated useful lives of the assets using the straight-line method. The estimated useful lives of assets range from one to fifteen years. Repairs and maintenance are expensed as incurred. Earnest Money Deposits In the ordinary course of business, the Company enters into land and lot option contracts in order to procure land for the construction of homes in the future. Pursuant to these option contracts, the Company generally provides a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. Such contracts enable the Company to defer acquiring portions of properties owned by third parties or unconsolidated entities until the Company has determined whether and when to exercise its option, which reduces the Company’s financial risk associated with long-term land holdings. Option deposits and pre-acquisition costs (such as environmental testing, surveys, engineering, and entitlement costs) are capitalized if the costs are directly identifiable with the land under option and acquisition of the property is probable. Such costs are reflected in earnest money deposits and are reclassified to inventory upon taking title to the land. The Company writes off deposits and pre-acquisition costs if it becomes probable that the Company will not proceed with the project or recover the capitalized costs. Such decisions take into consideration changes in local market conditions, the timing of required land takedowns, the availability and best use of necessary incremental capital, and other factors. Under ASC 810, a non-refundable deposit paid to an entity is deemed to be a variable interest that will absorb some or all of the entity’s expected losses if they occur and, as such, the Company’s land and lot option contracts are considered variable interests. The Company’s option contract deposits along with any related pre-acquisition costs represent the Company’s maximum exposure to the land seller if the Company elects not to purchase the optioned property. Therefore, whenever the Company enters into an option or purchase contract with an entity and makes a non-refundable deposit, a VIE assessment is performed. However, the Company generally has little control or power to direct the activities that most significantly impact the VIE’s economic performance due to the Company’s lack of an equity interest in them. Additionally, creditors of the VIE typically have no material recourse against the Company, and the Company does not provide financial or other support to these VIEs other than as stipulated in the option contracts. In accordance with ASC 810, the Company performs ongoing reassessments of whether the Company is the primary beneficiary of a VIE. Sales with Option to Repurchase In accordance with ASC 360, sales of land followed by entering into land option contracts to repurchase the land from the buyers are considered a financing arrangement rather than a sale. As a result of such transactions, the Company recorded $9.3 million as of December 31, 2016 as land not owned under option contracts with a corresponding liability reflected as obligations related to land not owned under option contracts on the consolidated balance sheets. The Company purchased all of the lots under the option contracts during 2017. Intangible Assets Intangible assets, net consists of the estimated fair value of acquired home construction contracts and trade name. A high degree of judgment is made by management regarding assumptions, such as revenue growth rates, profitability, and discount rates, when estimating the value of the intangible assets. The identified home construction contracts intangible asset is amortized to cost of residential units as income on the related contracts is earned, over a period of eleven months. The trade name has a definite life and is amortized over ten years. Intangible assets are tested for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss would be recognized if the carrying amount of the asset exceeds the estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. The impairment loss recorded would be the excess of the asset’s carrying value over its fair value. Fair value would be determined using a discounted cash flow analysis or other valuation technique. Goodwill The excess of the purchase price of a business acquisition over the net fair value of assets acquired and liabilities assumed is capitalized as goodwill in accordance with ASC 805, Business Combinations (“ASC 805”). Goodwill is assessed for impairment at least annually in the fourth quarter, or more frequently if certain impairment indicators are present. Goodwill impairment exists when a reporting unit’s goodwill carrying value exceeds its implied fair value. Per ASC 350, Intangibles - Goodwill and Other (“ASC 350”), an entity may make a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount before applying a two-step goodwill impairment test. When performing a qualitative assessment, an entity evaluates relevant events and circumstances, including but not limited to, macroeconomic conditions, industry and market conditions, overall financial performance, reporting unit specific events and entity specific events. If, after completing a qualitative assessment, an entity concludes that it is not likely that the fair value of the reporting unit is less than its carrying amount, a two-step impairment test would not be required for that reporting unit. In the event that the conclusion of the qualitative assessment requires the two-step test, the first step compares the fair value of the reporting unit with its carrying value, including goodwill. If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the entity must perform step two of the impairment test. Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit goodwill. Fair value of the reporting unit is determined using a discounted cash flow analysis. If the fair value of the reporting unit exceeds its carrying value, step two is not required. An impairment loss is recognized to the extent that the carrying amount of goodwill exceeds its implied fair value. If the Company is required to perform the two-step test, it would determine fair value using generally accepted valuation techniques, including discounted cash flows and market multiple analyses. The Company’s valuation methodology for assessing impairment would require management to make judgments and assumptions based on historical experience and projections of future operating performance. If these assumptions differ materially from future results, the Company may record impairment charges in the future. Warranties The Company accrues an estimate of its exposure to warranty claims based on both current and historical home closings data and warranty costs incurred. The Company offers homeowners a comprehensive third-party warranty on each home. Homes are generally covered by a ten-year warranty for qualified and defined structural defects, one year for defects and products used, and two years for electrical, plumbing, heating, ventilation, and air conditioning parts and labor. Warranty accruals are included within accrued expenses on the consolidated balance sheets. Any legal costs associated with loss contingencies related to warranties are expensed as incurred. Customer and Builder Deposits The Company typically requires customers to submit a deposit for home purchases and for builders to submit a deposit in connection with their construction loan agreements. The deposits serve as a guarantee to performance under home purchase and land development contracts. Cash received as customer and builder deposits, if held in escrow, is shown as restricted cash on the consolidated balance sheets. Debt Issuance Costs Debt issuance costs represent costs incurred related to the revolving secured and unsecured credit facilities, including amendments thereto, and reduce the carrying amount of debt on the consolidated balance sheets. These costs are subject to capitalization to inventory over the term of the related debt facility using the straight-line method. Redeemable Noncontrolling Interest in Equity of Consolidated Subsidiary Redeemable noncontrolling interest in equity of consolidated subsidiary represents equity related to a put option held by a minority shareholder of a subsidiary. Based on the put option structure, the minority shareholder’s interest in the controlled subsidiary is classified as a redeemable noncontrolling interest on the consolidated balance sheets. The accretion of the redeemable noncontrolling interest to its estimated redemption value is recorded in additional paid-in capital on the consolidated balance sheets if the estimated redemption value, net of accretion, is greater than the current value of the noncontrolling interest capital account. Business Combinations Acquisitions are accounted for in accordance with ASC 805. Following the determination that control of a business and its inputs, processes and outputs were obtained in exchange for consideration, all material assets and liabilities of the business, including contingent consideration, are measured and recognized at fair value as of the date of the acquisition to reflect the purchase price. Depending on the fair value of net assets acquired, the purchase price allocation may or may not result in goodwill. Contingent consideration is subsequently remeasured to fair value at each reporting date until the contingency is resolved, with any change in fair value recognized in the consolidated statements of income. Revenue Recognition Contracts with Customers The Company derives revenues from two primary sources: the closing and delivery of homes through our builder operations segments and the closing of lots sold to homebuilders through our land development segment. All of our revenue is from contracts with customers. Contract Liabilities The Company requires homebuyers to submit a deposit for home purchases and requires third-party builders to submit a deposit in connection with land sale or lot option contracts. The deposits serve as a guarantee for performance under homebuilding and land sale or development contracts. Cash received as customer deposits is reflected as customer and builder deposits on the consolidated balance sheets. Performance Obligations The Company’s contracts with homebuyers contain a single performance obligation. The performance obligation is satisfied when homes are completed and legal title has been transferred to the buyer. The Company does not have any variable consideration associated with home sales transactions. Revenue from mechanic’s lien contracts in which the Company serves as the general contractor for custom homes where the customer, and not the Company, owns the underlying land and improvements is recognized based on the input method, where progress toward completion is measured by relating the actual cost of work performed to date to the estimated total cost of the respective contracts. Lot option contracts contain multiple performance obligations. The performance obligations are satisfied as lots are closed and legal title has been transferred to the builder. For lot option contracts, individual performance obligations are accounted for separately. The transaction price is allocated to the separate performance obligations on a relative stand-alone selling price basis. Certain lot option contracts require escalations in lot price over the option period. Any escalator is not collectible until the lot closing occurs. While we recognize lot escalators as variable consideration within the transaction price, we do not recognize escalator revenue until a builder closes on a lot subject to an escalator as the escalator relates to general inflation and holding costs. Occasionally, the Company sells developed and undeveloped land parcels. If the land parcel is developed prior to the sale of the land, the revenue is recognized at closing since we deliver a single performance obligation in the form of a developed parcel. We also recognize revenue at closing on undeveloped land parcel sales as there are no other obligations beyond delivering the undeveloped land. Homebuyers are not obligated to pay for a home until the closing and delivery of the home. The selling price of a home is based on the contract price adjusted for any change orders, which are considered modifications of the contract price. Homebuilders are not obligated to pay for developed lots prior to control of the lots and any associated improvements being transferred to them. The term of our lot option contracts is generally based upon the number of lots being purchased and an agreed upon lot takedown schedule, which can be in excess of one year. Lots cannot be taken down until development is substantially complete. There is no significant financing component related to our third-party lot sales. The Company does not sell warranties outside of the customary workmanship warranties provided on homes or developed lots at the time of sale. The warranties offered to homebuyers are short term, with the exception of ten-year warranties on structural concerns for homes. As these are assurance-type warranties, there is no separate performance obligation related to warranties provided to homebuyers or homebuilder. Significant Judgments and Estimates There are no significant judgments involved in the recognition of residential units revenue. The performance obligation of delivering a completed home is satisfied upon the sale closing when title transfers to the buyer. There are no significant judgments involved in the recognition of land and lots revenue. The performance obligation of delivering land and lots is satisfied upon the closing of the sale when title transfers to the homebuilder. Contract Costs The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if it expects to recover those costs. The Company pays sales commissions to employees and/or outside realtors related to individual home sales which are expensed as incurred at the time of closing. Commissions on the sale of land parcels are also expensed as incurred upon closing. Sales commissions on the sale of homes are included in the cost of revenues in the consolidated statements of income. The Company also pays builder incentives to employees which are based on the time it takes to build individual homes, as well as quality inspection completion and customer satisfaction. The builder incentives do not represent incremental costs that would require capitalization as we would incur these costs whether or not we sold the home. As such, we recognize builder incentives as expense at the time they are paid. Advertising costs, sales salaries and certain costs associated with model homes, such as signage, do not qualify for capitalization under ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers , as they are not incremental costs of obtaining a contract. As such, we expense these costs to selling, general and administrative expense as incurred. Costs incurred related to model home furnishings and sales office construction are capitalized and included in property and equipment, net on the consolidated balance sheets. Selling, General and Administrative Expense Selling, general and administrative expense represents salaries, benefits, share-based compensation, property taxes on finished homes, depreciation, amortization, advertising and marketing, rent, and other administrative items, and is recorded in the period incurred. Advertising Expense The Company expenses advertising costs as incurred. Advertising costs are included in selling, general and administrative expense in the consolidated statements of income. Advertising expense for the years ended December 31, 2018 , 2017 and 2016 totaled $1.5 million , $0.8 million and $0.7 million , respectively. Interest Expense Interest expense consists primarily of interest costs incurred on our debt that are not capitalized, and amortization of debt issuance costs. We capitalize interest costs incurred to inventory during development and other qualifying activities. Debt issuance costs are capitalized to inventory over the term of the underlying debt using the straight-line method, in accordance with our interest capitalization policy. All interest costs were capitalized during the years ended December 31, 2018 , 2017 and 2016 . Net Income Attributable to Green Brick Partners, Inc. per Share The Company’s restricted stock awards have the right to receive forfeitable dividends on an equal basis with common stock and therefore are not considered participating securities that must be included in the calculation of net income per share using the two-class method. Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during each period, adjusted for non-vested shares of restricted stock awards during each period. Diluted earnings per share is calculated using the treasury stock method and includes the effect of all dilutive securities, including stock options and restricted stock awards. Cost Recognition Lot acquisition, materials, direct costs, interest and indirect costs related to the acquisition, development, and construction of lots and homes are capitalized. Direct and indirect costs of developing residential lots are allocated evenly to all applicable lots. Capitalized costs of residential lots are charged to earnings when the related revenue is |
Business Combination (Notes)
Business Combination (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | BUSINESS COMBINATION On April 26, 2018 (the “Acquisition Date”), following a series of transactions, the Company acquired substantially all of the assets and assumed certain liabilities of GHO Homes Corporation and its affiliates (“GHO”) through a newly formed subsidiary, GRBK GHO Homes, LLC (“GRBK GHO”), in which the Company holds an 80% controlling interest. The owner of GHO contributed $8.3 million of net assets to GRBK GHO in an exchange for a 20% interest in GRBK GHO. The minority partner of GRBK GHO serves as the president of GRBK GHO. GRBK GHO operates primarily in the Vero Beach, Florida market and is engaged in land and lot development, as well as all aspects of the homebuilding process. The acquisition allowed the Company to expand its operations into a new geographic market. The Company consolidates the financial statements of GRBK GHO as the Company owns 80% of the outstanding voting shares of the builder. The noncontrolling interest attributable to the 20% minority interest owned by our Florida-based partner is included as redeemable noncontrolling interest in equity of consolidated subsidiary in the Company’s consolidated financial statements. The original consideration of $42.2 million consisted of $33.2 million in cash paid by the Company to the owner of GHO, $8.3 million of assets contributed by the owner of GHO, and an estimated $0.6 million of contingent consideration. Following completion of the audit of the balance sheet of GHO as of the Acquisition Date, the purchase price was adjusted by $2.0 million that was contributed by the Company in cash, and the value of contributed assets from the minority partner was increased by $0.5 million . Contingent consideration was adjusted to $0.5 million based on finalization of valuation procedures. Thus, the final total consideration was $44.6 million . Total consideration for the Company’s 80% interest in GRBK GHO was $35.8 million . Under the terms of the purchase agreement, the Company is obligated to pay the contingent consideration to the minority partner if an annual performance target is met over the three -year period following the Acquisition Date. The contingent consideration amounts are not contractually limited. In accordance with ASC 805, all material assets and liabilities, including contingent consideration, were measured and recognized at fair value as of the date of the acquisition to reflect the purchase price. The following is a summary of fair value of assets acquired and liabilities assumed (in thousands): Assets acquired Cash $ 8,399 Inventory 45,005 Property and equipment 1,462 Intangible assets - trade name 850 Intangible assets - home construction contracts 290 Goodwill (1) 680 Other assets 898 Total assets $ 57,584 Liabilities assumed Note payable $ 300 Accrued expenses and other liabilities 5,486 Customer deposits 9,073 Total liabilities $ 14,859 Redeemable noncontrolling interest $ 6,951 Net assets acquired (2) $ 35,774 (1) Goodwill is expected to be fully deductible for tax purposes. (2) Contingent consideration of $0.5 million is included in the fair value of net assets acquired. The final purchase price allocation reflected above is based upon estimates and assumptions. The Company engaged a valuation firm to assist in the allocation of the purchase price, and valuation procedures related to the acquired assets and assumed liabilities have been completed. The estimated cash flows and ultimate valuation have been significantly affected by estimated discount rates, estimates related to expected average selling prices and sales incentives, expected sales pace and cancellation rates, expected land development and construction timelines, and anticipated land development, construction, and overhead costs and may vary significantly between communities. The valuation of redeemable noncontrolling interest is based on a market approach, considering the equity contribution made by the 20% partner, adjusted for control and marketability factors. Acquired inventory consists of both land under development and work in process inventory, as well as completed homes held for sale. The estimated fair value of real estate inventory was determined on a community-by-community basis, primarily using the income approach which derives a value using a discounted cash flow for income-producing real property. The values of work in process and completed home inventory were estimated based upon the stage of production of each unit and a gross margin that we believe a market participant would require to complete the remaining construction and sales and marketing efforts through the sale of the homes. The stage of production, as of the acquisition date, ranged from recently started lots to fully completed homes. A sales comparison approach was used for land for which significant lot development had not yet begun as of the Acquisition Date. An income approach was also utilized to value mechanic’s lien home construction contracts acquired. The estimated fair values of the acquired trade name, GHO Homes, and the home construction contracts, were determined using the relief-from-royalty method under the income approach, which involved assumptions related to revenue growth, market awareness and useful life. The amortization of the acquired intangible assets of $0.2 million for the period from April 26, 2018 through December 31, 2018 was recorded in selling, general and administrative expense in the consolidated statements of income. The accumulated amortization of the acquired intangible assets as of December 31, 2018 was $0.2 million . The estimated amortization expense related to acquired intangible assets for each of the next five years as of December 31, 2018 is as follows (in thousands): 2019 $ 149 2020 85 2021 85 2022 85 2023 85 Total $ 489 The allocation to goodwill represents the excess of the purchase price, including contingent consideration, over the estimated fair value of assets acquired and liabilities assumed. Goodwill results primarily from operational synergies expected from the business combination. The Company performed its annual goodwill impairment test during the fourth quarter of 2018 by completing a qualitative assessment in accordance with ASC 350. The Company determined that it was not more likely than not that the reporting unit’s estimated fair value was more than its carrying value and, therefore, the two-step goodwill impairment test was unnecessary. The Company did not record any goodwill impairment during the year ended December 31, 2018 . GRBK GHO’s results of operations, which include homebuilding revenues of $57.8 million and income before tax of $4.7 million , are included in the accompanying consolidated statements of income for the period from April 26, 2018 through December 31, 2018 . The performance targets specified in the purchase agreement were met for the period from April 26, 2018 through December 31, 2018 , and contingent consideration of $1.8 million was earned by the minority partner. Estimates of the undiscounted contingent consideration payouts for the period from January 1, 2019 through April 26, 2021 range from $0.7 million to $1.7 million. The supplemental pro forma information for revenue and earnings of the Company as though the business combination had occurred as of January 1, 2016 is impractical to provide due to the fact that consolidated reporting for the specific group of entities acquired had not existed prior to the acquisition. As of December 31, 2018 , we had incurred transaction costs of $0.5 million related to the business combination, which have been expensed as incurred and are included in selling, general and administrative expense. |
Variable Interest Entities (Not
Variable Interest Entities (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entity Disclosure [Text Block] | VARIABLE INTEREST ENTITIES Consolidated VIEs The Dallas and Atlanta-based controlled builders in which the Company owns a 50% equity interest are deemed to be VIEs for which the Company is considered the primary beneficiary. We sell finished lots or option lots from third-party developers to the Dallas and Atlanta-based controlled builders for their homebuilding operations and provide the controlled builders with construction financing and strategic planning. The board of managers of each of the controlled builders has the power to direct the activities that significantly impact the controlled builder’s economic performance. Pursuant to the Company’s agreements with the controlled builders, it has the ability to appoint two of the three members to the controlled builder’s board of managers. A majority of the board of managers constitutes a quorum to transact business. No action can be approved by the board of managers without the approval from at least one individual whom the Company has appointed at the controlled builder. The Company has the ability to control the activities of each controlled builder that most significantly impact the controlled builder’s economic performance. Such activities include, but are not limited to, involvement in the day to day capital and operating decisions, the ability to determine the budget and plan, the ability to control financing decisions, and the ability to acquire additional land or dispose of land. In addition, the Company has the right to receive the expected residual returns and obligation to absorb the expected losses of each controlled builder through the pro rata profits and losses we are allocated based on our ownership interest. Therefore, the financial statements of the Dallas and Atlanta-based controlled builders are consolidated in the Company’s consolidated financial statements following the variable interest model. The noncontrolling interests attributable to the 50% minority interests owned by the Dallas and Atlanta-based controlled builders are included as noncontrolling interests in the Company’s consolidated financial statements. Our controlled builders’ creditors have no recourse against us. The assets of two of our consolidated controlled builders can only be used to settle obligations of those controlled builders. The assets of our VIEs that can be used only to settle obligations of the VIEs as of December 31, 2018 totaled $76.3 million , of which $0.7 million was cash and $66.6 million was inventory. The assets of our VIEs that could be used only to settle obligations of the VIEs as of December 31, 2017 totaled $56.1 million , of which $0.9 million was cash and $47.8 million was inventory. Unconsolidated VIEs The Company evaluates all option contracts to purchase land and lots to determine whether they are VIEs and, if so, whether the Company is the primary beneficiary of counterparts of these option contracts. Although the Company does not have legal title to the optioned land or lots, if the Company is deemed to be the primary beneficiary of or makes a significant deposit for optioned land or lots, it may need to consolidate the land or lots under option at the purchase price of the optioned land or lots. As of December 31, 2018 and 2017 , the Company’s exposure to loss related to its option contracts with third parties primarily consisted of its non-refundable option deposits. Following VIE evaluation, it was concluded that the Company was not the primary beneficiary in any of the VIEs related to land or lot option contracts as of December 31, 2018 and 2017 . |
Investment in Unconsolidated En
Investment in Unconsolidated Entity (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | INVESTMENTS IN UNCONSOLIDATED ENTITIES Challenger On August 15, 2017 , the Company, JBGL Ownership LLC, a Delaware limited liability company and a wholly owned subsidiary of the Company (“JBGL”), and GB Challenger, LLC, a newly formed Texas limited liability company (“Challenger”) entered into a Membership Interest Purchase and Contribution Agreement (the “Challenger Agreement”) with The Challenger Group, Inc., a Wyoming corporation (“TCGI”), and certain of its affiliates (the “Challenger Entities”) and Brian R. Bahr (“Bahr”), resulting in the Company, through its interest in JBGL, and the Challenger Entities owning a 49.9% and 50.1% ownership interest, respectively, in Challenger, and Challenger owning all of the membership and ownership interests in the subsidiaries of the Challenger Entities named in the Challenger Agreement. As consideration for such interests, the Company agreed to issue to the Challenger Entities, or their designees, 1,497,000 shares of its common stock, par value $0.01 per share, in a private placement, with 20,000 shares of its common stock held back pending satisfactory resolution of indemnification claims (“Holdback Shares”). On March 16, 2018 , the Company issued the Holdback Shares; therefore, $0.2 million was recorded in additional paid-in capital on the consolidated balance sheet as of December 31, 2017. The Challenger Entities, at their discretion, may offer to sell and transfer an additional 20.1% or, in certain circumstances, all of the Challenger Entities’ interest in Challenger (“Additional Membership Interests”) to the Company on or after the third anniversary of the Challenger Agreement. The Company is not required to purchase the Additional Membership Interests. The Company incurred $0.3 million in related acquisition costs during the year ended December 31, 2017 which are included in the cost basis of investment in the unconsolidated entity. The Challenger Entities operate homebuilding operations under the name Challenger Homes. Challenger constructs townhouses, single family homes and luxury patio homes, and is located in Colorado Springs, Colorado. The Company partnered with Challenger in order to expand its business with partners that are complementary to its current builder partner group and to gain a presence in the Colorado Springs market. The issuance of the common stock by the Company related to the investment in Challenger was exempt from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, and the safe harbor provided by Rule 506 promulgated thereunder. The Company relied, in part, upon representations from each of the individuals that they are “accredited investors” as such term is defined in Rule 501 of Regulation D. The Company’s investment in Challenger at August 15, 2017 of $15.1 million was more than its share of the estimated underlying net assets of Challenger, resulting in a preliminary difference in basis of $5.1 million , which was attributed to inventory and intangible assets. The Company’s investment in Challenger on August 15, 2017 was determined as follows (in thousands, except per share data): Consideration transferred at closing Green Brick common stock issued 1,477 Price per share of Green Brick common stock (1) $ 9.90 Fair value of common stock consideration $ 14,622 Acquisition related costs $ 241 Total fair value of consideration transferred at closing $ 14,863 Subsequent consideration Holdback Shares 20 Price per share of Green Brick common stock (1) $ 9.90 Total fair value of subsequent consideration $ 198 Total fair value of consideration $ 15,061 (1) Based upon closing price of the Company’s common stock upon the parties’ execution of the Challenger Agreement. The Company holds two of the five board of managers (the “Managers”) seats of Challenger. Challenger’s six officers, employees of the Challenger Entities, were designated by the Managers for the purpose of managing the day to day operations. The Company does not have a controlling financial interest in Challenger as the Company has less than 50% of the voting interests in Challenger. The Company’s investment in Challenger is treated as an unconsolidated investment under the equity method of accounting and is included in investments in unconsolidated entities in the Company’s consolidated balance sheets. The Company’s investment in Challenger is carried at cost, as adjusted for the Company’s share of income or losses and distributions received, as well as for adjustments related to basis differences between the Company’s cost and the Company’s underlying equity in net assets recorded in Challenger’s financial statements as of the date of acquisition. As of December 31, 2018 , the carrying value of the investment in Challenger was $19.5 million , whereas the underlying 49.9% equity in net assets of Challenger was $15.0 million . The $4.5 million difference represents the premium paid for the Company’s equity interest in excess of Challenger’s carrying value. This basis difference primarily relates to the estimated fair value of inventory, as well as the Challenger Homes trade name and capitalized acquisition costs. The amortization of the basis differences related to inventory is recorded as a reduction of equity in income of unconsolidated entities as homes are closed on and delivered to homebuyers. The basis difference related to the trade name is amortized over ten years as a reduction of equity in income of unconsolidated entities. The Company recognized $7.0 million and $2.7 million related to Challenger in equity in income of unconsolidated entities during the years ended December 31, 2018 and 2017 , respectively. Providence Title In March 2018, the Company formed a joint venture with a title company in Georgia to provide title closing and settlement services to our Atlanta-based builder. The Company, through its controlled builder, The Providence Group of Georgia, L.L.C. (“TPG”), owns a 49% equity interest in Providence Group Title, LLC (“Providence Title”). Green Brick Mortgage In June 2018, the Company formed a joint venture with PrimeLending to provide mortgage loan origination services to our builders. The Company owns a 49% equity interest in Green Brick Mortgage, LLC (“Green Brick Mortgage”) which initiated mortgage loan origination activities in September 2018. A summary of the financial information of the unconsolidated entities that are accounted for by the equity method is as follows (in thousands): December 31, 2018 December 31, 2017 Assets: Cash $ 14,584 $ 3,981 Accounts receivable 1,259 1,494 Bonds and notes receivable 5,864 2,850 Loans held for sale, at fair value 3,083 — Inventory 44,375 57,841 Other assets 3,132 2,248 Total assets $ 72,297 $ 68,414 Liabilities: Accounts payable $ 2,173 $ 5,060 Accrued expenses and other liabilities 5,328 2,857 Notes payable 31,402 36,923 Total liabilities $ 38,903 $ 44,840 Owners’ equity: Green Brick $ 15,653 $ 11,763 Others 17,741 11,811 Total owners’ equity $ 33,394 $ 23,574 Total liabilities and owners’ equity $ 72,297 $ 68,414 Year Ended December 31, 2018 Year Ended December 31, 2017 Revenues $ 166,102 $ 58,958 Costs and expenses 148,222 44,969 Net earnings of unconsolidated entities $ 17,880 $ 13,989 Company’s share in net earnings of unconsolidated entities $ 7,259 $ 2,746 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | PROPERTY AND EQUIPMENT The following is a summary of property and equipment by major classification and related accumulated depreciation as of December 31, 2018 and 2017 (in thousands): December 31, 2018 December 31, 2017 Land $ 763 $ — Building 82 — Model home furnishings and capitalized sales office costs 5,218 — Office furniture and equipment 427 399 Leasehold improvements 1,692 741 Computers and equipment 901 903 Vehicles and field trailers 279 10 9,362 2,053 Less: Accumulated depreciation (4,672 ) (1,249 ) Total property and equipment, net $ 4,690 $ 804 Depreciation expense for the years ended December 31, 2018 , 2017 and 2016 totaled $2.7 million , $0.3 million , and $0.3 million , respectively, and is included in selling, general and administrative expense in our consolidated statements of income. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act made major changes to the Internal Revenue Code. The Company recognized the income tax effects of the Tax Act in its financial statements in accordance with Staff Accounting Bulletin 118 which provides SEC staff guidance for the application of ASC 740, Income Taxes . The Company finalized its accounting for the income tax effects of the Tax Act in the fourth quarter of 2018 with no adjustments recorded during the measurement period. Income Tax Expense The components of current and deferred income tax expense are as follows (in thousands): Years Ended December 31, 2018 2017 2016 Current expense (benefit): Federal $ (569 ) $ 999 $ 158 State 2,993 1,733 2,076 Total current expense 2,424 2,732 2,234 Deferred expense (benefit): Federal 15,023 36,569 13,146 State (311 ) (270 ) 1 Total deferred expense 14,712 36,299 13,147 Total income tax expense $ 17,136 $ 39,031 $ 15,381 Effective Tax Rate Reconciliation The tax expense differs from the amount that would be computed by applying the statutory federal income tax rates of 21%, 35% and 35% for the years ended December 31, 2018 , 2017 and 2016 , respectively, to income before income taxes as a result of the following (amounts in thousands): Years Ended December 31, 2018 2017 2016 Tax on pre-tax book income (before reduction of noncontrolling interests) $ 17,151 $ 22,483 $ 17,693 Tax effect of non-controlled earnings (2,743 ) (3,630 ) (3,996 ) State tax expense, net 2,258 1,213 1,153 Change in federal statutory tax rate — 19,017 — Other 470 (52 ) 531 Total tax expense $ 17,136 $ 39,031 $ 15,381 Effective tax rate 21.0 % 60.8 % 30.4 % The effective income tax rate for 2017 reflects the impact of compliance with the Tax Act, signed into law on December 22, 2017. The Company remeasured its deferred tax assets due to the change in federal statutory tax rate which resulted in additional tax expense of $19.0 million . Deferred Income Taxes The primary differences between the financial statement and tax bases of assets and liabilities are as follows (in thousands): December 31, 2018 December 31, 2017 Deferred tax assets: Basis in partnerships 10,947 13,377 Accrued expenses 2,182 1,418 Inventory 1,521 944 State net operating loss carryover 1,063 1,353 Federal net operating loss carryover 432 14,078 Alternative minimum tax credit carryover 576 1,145 Change in fair value of contingent consideration 385 — Stock-based compensation 347 268 Other 175 28 Deferred tax assets, gross 17,628 32,611 Valuation allowance (1,063 ) (1,346 ) Deferred tax assets, net $ 16,565 $ 31,265 Deferred tax liabilities: Prepaid insurance $ (66 ) $ (17 ) Other — (37 ) Deferred tax liabilities $ (66 ) $ (54 ) Total deferred income tax assets, net $ 16,499 $ 31,211 Net Operating Losses and Valuation Allowances As of December 31, 2018 , the Company had federal net operating loss carryforwards of $2.0 million that will expire beginning with the year ending December 31, 2029 . Our ability to utilize our net operating loss carryforwards depends on the amount of taxable income we generate in future periods. Based on our historical taxable income results through December 31, 2018 , as well as forecasted income, management expects that the Company will generate sufficient taxable income to utilize all of the federal net operating loss carryforwards before they expire. As of December 31, 2018 , the Company had gross state net operating loss carryforwards in Minnesota of $13.7 million which will begin to expire beginning with the year ending December 31, 2023 . Management believes on a more-likely-than-not basis that the Minnesota net operating loss carryforwards will not be utilized. The Company maintains a gross deferred income tax asset in the amount of $1.1 million for the Minnesota state net operating loss carryforwards and a related valuation allowance in the amount of $1.1 million . As of December 31, 2018 , all Colorado state net operating loss carryforwards were fully utilized and all Nebraska state net operating loss carryforwards expired. The rollforward of valuation allowance is as follows (amounts in thousands): Years Ended December 31, 2018 2017 Valuation allowance at beginning of the year $ 1,346 $ 1,147 Release of Colorado net operating loss valuation allowance — (8 ) Change in federal benefit tax rate - deferred — 240 Expiration of state net operating losses (283 ) (33 ) Valuation allowance at end of the year $ 1,063 $ 1,346 Uncertain Tax Positions The Company establishes reserves for uncertain tax positions that reflect management’s best estimate of deductions and credits that may not be sustained on a more-likely-than-not basis. In accordance with ASC 740, Income Taxes , the Company recognizes the effect of income tax positions only if those positions have a more-likely-than-not chance of being sustained by the Company. Recognized income tax positions are measured at the largest amount that is considered greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. There were no uncertain tax positions as of December 31, 2018 . A reconciliation of the beginning and ending amount of uncertain tax positions for the year ended December 31, 2017 is as follows (in thousands): Year Ended December 31, 2017 Uncertain tax positions at beginning of year $ 249 Change related to Georgia state income taxes (249 ) Uncertain tax positions at end of year $ — There were no expenses for interest and penalties related to uncertain tax positions for the years ended December 31, 2018 and 2017 . Expenses related to such interest and penalties were nil for the year ended December 31, 2016 . There were no accrued liabilities related to uncertain tax positions as of December 31, 2018 and 2017 , respectively. Statutes of Limitations The U.S. federal statute of limitations remains open for our 2015 and subsequent tax years. Due to the carryover of the federal net operating losses for years 2009 and forward, income tax returns going back to the 2009 tax year are subject to adjustment. The Colorado and Minnesota statutes of limitations remain open for our 2014 and subsequent tax years. The Nebraska statute of limitations remains open for our 2015 and subsequent tax years. Additionally, the Company’s subsidiaries file returns in Texas, Georgia and Florida. The Texas statute of limitations remains open for the 2014 and subsequent tax years. Any Texas adjustments relating to returns filed by the subsidiary partnerships would be borne by the subsidiary partnership entities. The Georgia statute of limitations remains open for the 2015 and subsequent tax years. Any Georgia adjustments relating to returns filed by the subsidiary partnerships would be borne by the partner. A Florida corporate tax return will be required starting for the 2018 tax year. The Florida statute of limitations will remain open for three years from the earlier of the date the return is filed or the extended due date of the return. Any Florida adjustments relating to returns filed by the subsidiary partnerships would be borne by the partner. The Company is not presently under examination by the Internal Revenue Service or state tax authority. |
Debt
Debt | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Disclosure [Abstract] | ||
Debt | DEBT Lines of Credit Borrowings on lines of credit outstanding, net of debt issuance costs, as of December 31, 2018 and 2017 consist of the following (in thousands): December 31, 2018 December 31, 2017 Revolving credit facility $ 46,500 $ 32,000 Unsecured revolving credit facility 155,500 75,000 Debt issuance costs, net of amortization (1,614 ) (1,227 ) Total borrowings on lines of credit, net $ 200,386 $ 105,773 Revolving Credit Facility On July 30, 2015, the Company entered into a revolving credit facility (the “Credit Facility”) with Inwood National Bank, which initially provided for up to $50.0 million . Amounts outstanding under the Credit Facility are secured by mortgages on real property and security interests in certain personal property (to the extent that such personal property is connected with the use and enjoyment of the real property) that is owned by certain of the Company’s subsidiaries. The entire unpaid principal balance and any accrued but unpaid interest is due and payable on the maturity date. Following several amendments, as of December 31, 2018 , the aggregate commitment amount was $75.0 million and the maturity date of the Credit Facility was May 1, 2022 . As of December 31, 2018 , letters of credit outstanding totaling $1.9 million reduced the aggregate maximum commitment amount to $73.1 million . As of December 31, 2018 , outstanding borrowings under the amended Credit Facility bear interest payable monthly at a floating rate per annum equal to the rate announced by Bank of America, N.A., from time to time, as its “Prime Rate” (the “Index”) with such adjustments to the interest rate being made on the effective date of any change in the Index, less 0.25%. Notwithstanding the foregoing, the interest may not, at any time, be less than 4% per annum or more than the lesser amount of 18% and the highest maximum rate allowed by applicable law. As of December 31, 2018 , the interest rate on outstanding borrowings under the Credit Facility was 5.25% per annum. As of December 31, 2018 , the amended Credit Facility was subject to a borrowing base limitation equal to the sum of 50% of the total value of land and 65% of the total value of lots owned by certain of the Company’s subsidiaries, each as determined by an independent appraiser, with the value of land being restricted from being more than 65% of the borrowing base. As of December 31, 2018 , the amended Credit Facility was also subject to a non-usage fee equal to 0.25% of the average unfunded amount of the commitment amount over a trailing 12 month period. Under the terms of the amended Credit Facility, the Company is required, among other things, to maintain minimum multiples of tangible net worth in excess of the outstanding Credit Facility balance, minimum interest coverage and maximum leverage. Management is not aware of any violations of these financial covenants under the Credit Facility as of December 31, 2018 . Fees and other debt issuance costs of $0.0 million , $0.2 million and $0.0 million were incurred during the years ended December 31, 2018 , 2017 and 2016 , respectively, associated with the Credit Facility amendments. These costs are deferred and reduce the carrying amount of debt in our consolidated balance sheets. The Company capitalizes these costs to inventory over the term of the Credit Facility using the straight-line method. Unsecured Revolving Credit Facility On December 15, 2015, the Company entered into a credit agreement (the “Credit Agreement”) with Citibank, N.A. and Credit Suisse AG, Cayman Islands Branch (“Credit Suisse”) as lenders, and Citibank, N.A. as administrative agent, providing for a senior, unsecured revolving credit facility with initial aggregate lending commitments of up to $40.0 million (the “Unsecured Revolving Credit Facility”). The Unsecured Revolving Credit Facility provides for interest rate options on advances at rates equal to either: (a) in the case of base rate advances, the highest of (i) Citibank’s base rate, (ii) the federal funds rate plus 0.5% , and (iii) the one-month LIBOR plus 1.0% , in each case plus 1.5% ; or (b) in the case of Eurodollar rate advances, the reserve adjusted LIBOR plus 2.5% . Interest on amounts borrowed under the Unsecured Revolving Credit Facility is payable in arrears on a monthly basis. As of December 31, 2018 , the interest rates on outstanding borrowings under the Unsecured Revolving Credit Facility ranged from 4.89% to 5.01% per annum. The Company pays the lenders a commitment fee on the amount of the unused commitments on a quarterly basis at a rate per annum equal to 0.45% . Outstanding borrowings under the Unsecured Revolving Credit Facility are subject to, among other things, a borrowing base. The borrowing base limitation is equal to the sum of: 100% of unrestricted cash in excess of $15.0 million ; 85% of the book value of model homes, construction in progress homes, completed sold and speculative homes (subject to certain limitations on the age and number of speculative homes and model homes); 65% of the book value of finished lots and land under development; and 50% of the book value of entitled land (subject to certain limitations on the value of entitled land and land under development as a percentage of the borrowing base). Following amendments to the Credit Agreement and the addition of Flagstar Bank, FSB (“Flagstar Bank”), JPMorgan Chase Bank, N.A. (“JPMorgan”) and Chemical Financial Corporation (“Chemical”) as lenders, the aggregate lending commitment available under the Unsecured Revolving Credit Facility as of December 31, 2018 was $215.0 million , the maximum aggregate amount of the Unsecured Revolving Credit Facility was $275.0 million , and the termination date with respect to commitments under the Unsecured Revolving Credit Facility was December 14, 2021 . Fees and other debt issuance costs of $0.9 million , $0.7 million and $0.3 million were incurred during the years ended December 31, 2018 , 2017 and 2016 , respectively, associated with the amendments, term extensions and increases in lenders’ commitments. These costs are deferred and reduce the carrying amount of debt in our consolidated balance sheets. The Company capitalizes these costs to inventory over the term of the Unsecured Revolving Credit Facility using the straight-line method. Under the terms of the Unsecured Revolving Credit Facility, the Company is required to maintain compliance with various financial covenants, including a maximum leverage ratio, a minimum interest coverage ratio, and a minimum consolidated tangible net worth. Management is not aware of any violations of these financial covenants under the Unsecured Revolving Credit Facility as of December 31, 2018 . Notes Payable Notes payable to unrelated third parties outstanding as of December 31, 2018 and 2017 consist of the following (in thousands): December 31, 2018 December 31, 2017 Briar Ridge Investments, LTD $ — $ 9,000 Graham Mortgage Corporation — 926 Total notes payable $ — $ 9,926 Briar Ridge Investments, LTD On December 13, 2013, a subsidiary of the Company signed a promissory note for $9.0 million maturing on December 13, 2017, bearing interest at 6.0% collateralized by land purchased in Allen, Texas. In December 2016, the note was extended through December 31, 2018. The note was paid in full on June 5, 2018. Graham Mortgage Corporation On November 30, 2016, a subsidiary of the Company signed a promissory note for $1.2 million maturing on December 1, 2018, bearing interest at 3.0% per annum and collateralized by land located in Sunnyvale, Texas. | DEBT Lines of Credit Borrowings on lines of credit outstanding, net of debt issuance costs, as of December 31, 2018 and 2017 consist of the following (in thousands): December 31, 2018 December 31, 2017 Revolving credit facility $ 46,500 $ 32,000 Unsecured revolving credit facility 155,500 75,000 Debt issuance costs, net of amortization (1,614 ) (1,227 ) Total borrowings on lines of credit, net $ 200,386 $ 105,773 Revolving Credit Facility On July 30, 2015, the Company entered into a revolving credit facility (the “Credit Facility”) with Inwood National Bank, which initially provided for up to $50.0 million . Amounts outstanding under the Credit Facility are secured by mortgages on real property and security interests in certain personal property (to the extent that such personal property is connected with the use and enjoyment of the real property) that is owned by certain of the Company’s subsidiaries. The entire unpaid principal balance and any accrued but unpaid interest is due and payable on the maturity date. Following several amendments, as of December 31, 2018 , the aggregate commitment amount was $75.0 million and the maturity date of the Credit Facility was May 1, 2022 . As of December 31, 2018 , letters of credit outstanding totaling $1.9 million reduced the aggregate maximum commitment amount to $73.1 million . As of December 31, 2018 , outstanding borrowings under the amended Credit Facility bear interest payable monthly at a floating rate per annum equal to the rate announced by Bank of America, N.A., from time to time, as its “Prime Rate” (the “Index”) with such adjustments to the interest rate being made on the effective date of any change in the Index, less 0.25%. Notwithstanding the foregoing, the interest may not, at any time, be less than 4% per annum or more than the lesser amount of 18% and the highest maximum rate allowed by applicable law. As of December 31, 2018 , the interest rate on outstanding borrowings under the Credit Facility was 5.25% per annum. As of December 31, 2018 , the amended Credit Facility was subject to a borrowing base limitation equal to the sum of 50% of the total value of land and 65% of the total value of lots owned by certain of the Company’s subsidiaries, each as determined by an independent appraiser, with the value of land being restricted from being more than 65% of the borrowing base. As of December 31, 2018 , the amended Credit Facility was also subject to a non-usage fee equal to 0.25% of the average unfunded amount of the commitment amount over a trailing 12 month period. Under the terms of the amended Credit Facility, the Company is required, among other things, to maintain minimum multiples of tangible net worth in excess of the outstanding Credit Facility balance, minimum interest coverage and maximum leverage. Management is not aware of any violations of these financial covenants under the Credit Facility as of December 31, 2018 . Fees and other debt issuance costs of $0.0 million , $0.2 million and $0.0 million were incurred during the years ended December 31, 2018 , 2017 and 2016 , respectively, associated with the Credit Facility amendments. These costs are deferred and reduce the carrying amount of debt in our consolidated balance sheets. The Company capitalizes these costs to inventory over the term of the Credit Facility using the straight-line method. Unsecured Revolving Credit Facility On December 15, 2015, the Company entered into a credit agreement (the “Credit Agreement”) with Citibank, N.A. and Credit Suisse AG, Cayman Islands Branch (“Credit Suisse”) as lenders, and Citibank, N.A. as administrative agent, providing for a senior, unsecured revolving credit facility with initial aggregate lending commitments of up to $40.0 million (the “Unsecured Revolving Credit Facility”). The Unsecured Revolving Credit Facility provides for interest rate options on advances at rates equal to either: (a) in the case of base rate advances, the highest of (i) Citibank’s base rate, (ii) the federal funds rate plus 0.5% , and (iii) the one-month LIBOR plus 1.0% , in each case plus 1.5% ; or (b) in the case of Eurodollar rate advances, the reserve adjusted LIBOR plus 2.5% . Interest on amounts borrowed under the Unsecured Revolving Credit Facility is payable in arrears on a monthly basis. As of December 31, 2018 , the interest rates on outstanding borrowings under the Unsecured Revolving Credit Facility ranged from 4.89% to 5.01% per annum. The Company pays the lenders a commitment fee on the amount of the unused commitments on a quarterly basis at a rate per annum equal to 0.45% . Outstanding borrowings under the Unsecured Revolving Credit Facility are subject to, among other things, a borrowing base. The borrowing base limitation is equal to the sum of: 100% of unrestricted cash in excess of $15.0 million ; 85% of the book value of model homes, construction in progress homes, completed sold and speculative homes (subject to certain limitations on the age and number of speculative homes and model homes); 65% of the book value of finished lots and land under development; and 50% of the book value of entitled land (subject to certain limitations on the value of entitled land and land under development as a percentage of the borrowing base). Following amendments to the Credit Agreement and the addition of Flagstar Bank, FSB (“Flagstar Bank”), JPMorgan Chase Bank, N.A. (“JPMorgan”) and Chemical Financial Corporation (“Chemical”) as lenders, the aggregate lending commitment available under the Unsecured Revolving Credit Facility as of December 31, 2018 was $215.0 million , the maximum aggregate amount of the Unsecured Revolving Credit Facility was $275.0 million , and the termination date with respect to commitments under the Unsecured Revolving Credit Facility was December 14, 2021 . Fees and other debt issuance costs of $0.9 million , $0.7 million and $0.3 million were incurred during the years ended December 31, 2018 , 2017 and 2016 , respectively, associated with the amendments, term extensions and increases in lenders’ commitments. These costs are deferred and reduce the carrying amount of debt in our consolidated balance sheets. The Company capitalizes these costs to inventory over the term of the Unsecured Revolving Credit Facility using the straight-line method. Under the terms of the Unsecured Revolving Credit Facility, the Company is required to maintain compliance with various financial covenants, including a maximum leverage ratio, a minimum interest coverage ratio, and a minimum consolidated tangible net worth. Management is not aware of any violations of these financial covenants under the Unsecured Revolving Credit Facility as of December 31, 2018 . Notes Payable Notes payable to unrelated third parties outstanding as of December 31, 2018 and 2017 consist of the following (in thousands): December 31, 2018 December 31, 2017 Briar Ridge Investments, LTD $ — $ 9,000 Graham Mortgage Corporation — 926 Total notes payable $ — $ 9,926 Briar Ridge Investments, LTD On December 13, 2013, a subsidiary of the Company signed a promissory note for $9.0 million maturing on December 13, 2017, bearing interest at 6.0% collateralized by land purchased in Allen, Texas. In December 2016, the note was extended through December 31, 2018. The note was paid in full on June 5, 2018. Graham Mortgage Corporation On November 30, 2016, a subsidiary of the Company signed a promissory note for $1.2 million maturing on December 1, 2018, bearing interest at 3.0% per annum and collateralized by land located in Sunnyvale, Texas. The note was paid in full on December 3, 2018. The annual principal payments over the next five years under the lines of credit as of December 31, 2018 are (in thousands): 2019 $ — 2020 — 2021 155,500 2022 46,500 Total $ 202,000 |
Stockholders_ equity
Stockholders’ equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Common Stock Pursuant to the Company’s amended and restated certificate of incorporation (“Certificate of Incorporation”), the Company is authorized to issue up to 100,000,000 shares of common stock, par value $0.01 per share. As of December 31, 2018 , there were 50,719,884 shares of common stock issued and 50,583,128 outstanding. On March 16, 2018 , 20,000 shares of common stock were issued as additional consideration for the investment in Challenger upon resolution of terms for such holdback shares. Preferred Stock Pursuant to the Company’s Certificate of Incorporation, the Company is authorized to issue up to 5,000,000 shares of preferred stock, par value $0.01 per share. The Board of Directors (the “BOD”) has the authority, subject to any limitations imposed by law or Nasdaq rules, without further action by the stockholders, to issue such preferred stock in one or more series and to fix the voting powers (if any), the preferences and relative, participating, optional or other special rights or privileges, if any, of such series and the qualifications, limitations or restrictions thereof. These rights, preferences and privileges may include, but are not limited to, dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences, sinking fund terms and the number of shares constituting any series or the designation of that series. As of December 31, 2018 , there were no shares of preferred stock issued and outstanding. Share Repurchase Programs In March 2016, the Company’s BOD authorized a share repurchase program of up to 1,000,000 shares of its common stock through 2017. The share repurchase program expired in 2017. No shares were repurchased during the years ended December 31, 2017 and 2016 . In October 2018, the Company’s BOD authorized a share repurchase program for the period beginning on October 3, 2018 and ending on October 3, 2020 of the Company’s common stock for an aggregate price not to exceed $30.0 million. The timing, volume and nature of share repurchases are at the discretion of management and dependent on market conditions, corporate and regulatory requirements, available cash and other factors, and may be suspended or discontinued at any time. Authorized repurchases may be made from time to time in the open market, through block trades or in privately negotiated transactions. No assurance can be given that any particular amount of common stock will be repurchased. All or part of the repurchases may be implemented under a trading plan under Rule 10b5-1 or Rule 10b-18 established by the SEC, which would allow repurchases under pre-set terms at times when the Company might otherwise be prevented from doing so under insider trading laws or because of self-imposed blackout periods. This repurchase program may be modified, extended or terminated by the BOD at any time. The Company intends to finance any repurchases with available cash and proceeds from borrowings under lines of credit. In December 2018, the Company repurchased 136,756 shares for approximately $1.0 million . On December 31, 2018, the Company’s BOD authorized implementation of share repurchases in accordance with a trading plan under Rule 10b5-1, which allows for repurchases under pre-set terms at times when the Company might otherwise be prevented from doing so under insider trading laws or because of self-imposed blackout periods. The plan’s commencement date is January 2, 2019, and the termination date is March 30, 2019. The plan may be terminated at any time. Section 382 Transfer Restrictions If the Company were to experience an ownership change, Section 382 of the Internal Revenue Code imposes an annual limitation which could impact the utilization of our net operating loss carryforwards. To reduce the likelihood of such an ownership change, the BOD implemented certain transfer restrictions, including Article V of the Company’s Certificate of Incorporation, and a Section 382 rights agreement regarding preservation of our net operating loss carryforwards. On March 27, 2014, the BOD declared a dividend of one preferred share purchase right, with respect to each outstanding share of common stock of the Company, to purchase from the Company one one-thousandth of a share of Series B Junior Participating Preferred Stock, par value $0.01 per share, of the Company at a price of $30.00 per one one-thousandth of a share of preferred stock, subject to adjustment as provided in the Section 382 rights agreement. The dividend was payable to stockholders of record at the close of business on April 7, 2014. As of December 31, 2018 , the rights agreement has not been triggered. Redeemable Noncontrolling Interest in Equity of Consolidated Subsidiary As part of the GRBK GHO business combination, we entered into a put/call agreement (“Put/Call Agreement”) with respect to the equity interest in the joint venture held by the minority partner. The Put/Call Agreement provides that the 20% ownership interest in GRBK GHO held by the minority partner is subject to put and purchase options starting in April 2021. The exercise price is based on the financial results of GRBK GHO for the three years prior to exercise of the option. If the minority partner does not exercise the put option, we have the option, but not the obligation, to buy the 20% interest in GRBK GHO from our partner. Based on the nature of the put/call structure, the minority partner’s interest in GRBK GHO is classified as redeemable noncontrolling interest on the consolidated balance sheets. The following table shows the changes in redeemable noncontrolling interest in equity of consolidated subsidiary during the period April 26, 2018 to December 31, 2018 (in thousands): Balance at beginning of period $ 6,346 Purchase accounting adjustment 605 Adjusted balance at beginning of period 6,951 Net income 1,580 Balance at end of period $ 8,531 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION 2014 Omnibus Equity Incentive Plan On October 17, 2014, the Company’s stockholders approved the Green Brick Partners, Inc. 2014 Omnibus Equity Incentive Plan (the “2014 Equity Plan”). The purpose of the 2014 Equity Plan is to provide a means for the Company to attract and retain key personnel and to provide a means whereby current and prospective directors, officers, employees, consultants and advisors can acquire and maintain an equity interest in the Company, or be paid incentive compensation, which may (but need not) be measured by reference to the value of the Company’s common stock, thereby strengthening their commitment to the welfare of the Company and aligning their interests with those of the Company’s stockholders. The 2014 Equity Plan will terminate automatically on the tenth anniversary of the date it became effective. No awards will be granted under the 2014 Equity Plan after that date, but awards granted prior to that date may extend beyond that date. Under the 2014 Equity Plan, awards of stock options, including both incentive stock options and nonqualified stock options, stock appreciation rights, restricted stock and restricted stock units, other share-based awards and performance compensation awards, may be granted. The maximum number of shares of the Company’s common stock that is authorized and reserved for issuance under the 2014 Equity Plan is 2,350,956 shares, subject to adjustment for certain corporate events or changes in the Company’s capital structure. In general, the Company’s employees or those reasonably expected to become the Company’s employees, consultants and directors, are eligible for awards under the 2014 Equity Plan, provided that incentive stock options may be granted only to employees. The Company has four executive officers, six non-employee directors and approximately 390 other employees (including employees of our controlled builders) who are eligible to receive awards under the 2014 Equity Plan. Written agreements between the Company and each participant evidence the terms of each award granted under the 2014 Equity Plan. If any award under the 2014 Equity Plan expires or otherwise terminates, in whole or in part, without having been exercised in full, the common stock withheld from issuance under that award will become available for future issuance under the plan. If shares issued under the 2014 Equity Plan are reacquired by the Company pursuant to the terms of any forfeiture provision, those shares will become available for future awards under the plan. Awards that can only be settled in cash will not be treated as shares of common stock granted for purposes of the 2014 Equity Plan. The maximum amount that can be paid to any single participant in any one calendar year pursuant to a cash bonus award under the 2014 Equity Plan is $2.0 million . As of December 31, 2018 , 1,816,768 shares remain available for future grant of awards under the 2014 Equity Plan. Share-Based Award Activity During the year ended December 31, 2018 , the Company granted restricted stock awards (“RSAs”) under the 2014 Equity Plan to Named Executive Officers (“NEOs”) and non-employee members of the BOD. The RSAs granted to NEOs were 100% vested and non-forfeitable on the grant date. The BOD elected to defer up to 100% of their annual retainer fee, chairman fees and meeting fees in the form of common stock. The RSAs granted to the BOD will become fully vested on the earlier of (i) the first anniversary of the date of grant of the shares of restricted common stock or (ii) the date of the Company’s 2019 Annual Meeting of Stockholders. The fair value of the RSAs granted to NEOs and non-employee members of the BOD were recorded as share-based compensation expense on the grant date and over the vesting period, respectively. The Company withheld 39,228 shares of common stock, at a total cost of $0.4 million , from NEOs to satisfy statutory minimum tax requirements in respect of the RSAs during the year ended December 31, 2018 . A summary of share-based awards activity during the years ended December 31, 2018 , 2017 and 2016 is as follows: Number of Shares (in thousands) Weighted Average Grant Date Fair Value per Share Nonvested, December 31, 2015 23 $ 8.73 Granted 123 $ 7.60 Vested (108 ) $ 7.87 Forfeited — $ — Nonvested, December 31, 2016 38 $ 7.51 Granted 229 $ 10.11 Vested (229 ) $ 9.66 Forfeited — $ — Nonvested, December 31, 2017 38 $ 10.25 Granted 140 $ 10.45 Vested (144 ) $ 10.03 Forfeited — $ — Nonvested, December 31, 2018 34 $ 12.00 Stock Options Stock options granted to date were not granted under the 2014 Equity Plan. The stock options outstanding as of December 31, 2018 generally vest and become exercisable in five substantially equal installments on each of the first five anniversaries of the grant date and expire 10 years after the date on which they were granted. Compensation expense related to these options is expensed on a straight-line basis over the five year service period. All of the stock options outstanding as of December 31, 2018 are vested or expected to vest. We utilize the Black-Scholes option pricing model for estimating the grant date fair value of stock options. There were no stock options granted during the years ended December 31, 2018 , 2017 and 2016 . A summary of stock option activity during the year ended December 31, 2018 is as follows: Number of Shares (in thousands) Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Options outstanding, December 31, 2017 500 $ 7.49 Granted — — Exercised — — Forfeited — — Options outstanding, December 31, 2018 500 $ 7.49 5.82 $ — Options exercisable, December 31, 2018 400 $ 7.49 5.82 $ — A summary of unvested stock option activity during the year ended December 31, 2018 is as follows: Number of Shares (in thousands) Weighted Average Per Share Grant Date Fair Value Unvested, December 31, 2017 200 $ 2.88 Granted — $ — Vested (100 ) $ 2.88 Forfeited — $ — Unvested, December 31, 2018 100 $ 2.88 Share-Based Compensation Expense Share-based compensation expense was $1.8 million , $2.6 million and $1.3 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Recognized tax benefit related to share-based compensation expense was $0.4 million , $0.6 million and $0.5 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. As of December 31, 2018 , the estimated total remaining unamortized share-based compensation expense related to unvested restricted stock awards, net of forfeitures, was $0.2 million which is expected to be recognized over a weighted-average period of 0.4 years. As of December 31, 2018 , the estimated total remaining unamortized share-based compensation expense related to stock options, net of forfeitures, was $0.2 million which is expected to be recognized over a weighted-average period of 0.8 years. |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | REVENUE RECOGNITION Disaggregation of Revenue The following reflects the disaggregation of revenue by primary geographic market, type of customer, product type, and timing of revenue recognition (in thousands): Years Ended December 31, 2018 2017 2016 Builder Operations Land Development Builder Operations Land Development Builder Operations Land Development Primary Geographic Market Central $ 281,868 $ 40,184 $ 224,670 $ 17,928 $ 206,831 $ 14,201 Southeast 297,025 4,570 214,850 802 168,990 963 Total revenues $ 578,893 $ 44,754 $ 439,520 $ 18,730 $ 375,821 $ 15,164 Type of Customer Homebuyers $ 578,893 $ — $ 439,520 $ — $ 375,821 $ — Homebuilders — 44,754 — 18,730 — 15,164 Total revenues $ 578,893 $ 44,754 $ 439,520 $ 18,730 $ 375,821 $ 15,164 Product Type Residential units $ 578,893 $ — $ 439,520 $ — $ 375,821 $ — Land and lots — 44,754 — 18,730 — 15,164 Total revenues $ 578,893 $ 44,754 $ 439,520 $ 18,730 $ 375,821 $ 15,164 Timing of Revenue Recognition Transferred at a point in time $ 571,177 $ 44,754 $ 435,644 $ 18,730 $ 365,164 $ 15,164 Transferred over time 7,716 — 3,876 — 10,657 — Total revenues $ 578,893 $ 44,754 $ 439,520 $ 18,730 $ 375,821 $ 15,164 Revenue recognized over time represents revenue from mechanic’s lien contracts. Contract Balances Opening and closing contract balances included in customer and builder deposits on the consolidated balance sheets are as follows (in thousands): December 31, 2018 December 31, 2017 Customer and builder deposits $ 31,978 $ 21,447 The difference between the opening and closing balances of customer and builder deposits results from the timing difference between the customer’s payment of a deposit and the Company’s performance, impacted slightly by terminations of contracts. The amount of deposits on residential units and land and lots held as of the beginning of the period and recognized as revenue during the years ended December 31, 2018 and 2017 are as follows (in thousands): 2018 2017 Type of Customer Homebuyers $ 19,342 $ 9,880 Homebuilders 1,806 1,619 Total deposits recognized as revenue $ 21,148 $ 11,499 As a result of the GRBK GHO business combination, customer deposits from homebuyers in the amount of $9.1 million were acquired, of which $8.2 million was recognized during the period from April 26, 2018 through December 31, 2018 . Performance Obligations There was no revenue recognized during the years ended December 31, 2018 , 2017 and 2016 from performance obligations satisfied in prior periods. Transaction Price Allocated to Remaining Performance Obligations The aggregate amount of transaction price allocated to the remaining performance obligations on our land sale and lot option contracts is $84.1 million . The Company will recognize the remaining revenue when the lots are taken down, or upon closing for the sale of a land parcel, which is expected to occur as follows (in thousands): 2019 $ 42,618 2020 29,126 2021 12,335 Total $ 84,079 The timing of lot takedowns is contingent upon a number of factors, including customer needs, the number of lots being purchased, receipt of acceptance of the plat by the municipality, weather-related delays, and agreed-upon lot takedown schedules. Our contracts with homebuyers have a duration of less than one year. As such, the Company uses the practical expedient as allowed under ASC 606 and has not disclosed the transaction price allocated to remaining performance obligations as of the end of the reporting period. |
Segment Information
Segment Information | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting [Abstract] | ||
Number of Operating Segments | 3 | |
Number of Reportable Segments | 2 | |
Segment Information | SEGMENT INFORMATION Prior to the third quarter of 2018, the Company’s operations were organized into two reportable segments: builder operations and land development. Builder operations consisted of three operating segments: Texas, Georgia and Florida. The operations of the Company’s controlled builders were aggregated into these three operating segments based on similar economic characteristics, including geography; housing products; class of homebuyer; regulatory environments; and methods used to construct and sell homes. During the third quarter of 2018, the Company re-evaluated its reportable segments under ASC 280. The Company has further aggregated the Georgia and Florida operating segments into one reportable segment - Builder operations Southeast. The Texas operating segment was redefined as a second reportable segment - Builder operations Central. Land development is a separate reportable segment. The Company believes such aggregation is consistent with the objective and basic principles of ASC 280 and provides the most meaningful information about the types of business activities in which the Company engages and the economic environments in which it operates. Corporate operations are reported as a non-operating segment and include activities which support the Company’s builder operations, land development, title and mortgage operations through centralization of certain administrative functions, such as finance, treasury, information technology and human resources, as well as development of strategic initiatives. Unallocated corporate expenses are reported in the corporate and other segment as these activities do not share a majority of aggregation criteria with either the builder operations or land development segments. While the operations of Challenger meet the criteria for an operating segment, they do not meet the quantitative thresholds of ASC 280 to be separately reported and disclosed. As such, Challenger’s results are included within the corporate and other segment. Green Brick Title, LLC (“Green Brick Title”), Providence Title and Green Brick Mortgage operations are not economically similar to either builder operations or land development and do not meet the quantitative thresholds of ASC 280 to be separately reported and disclosed. As such, these entities’ results are included within the corporate and other segment. Segment information for the years ended December 31, 2017 and 2016 has been restated to conform with the revised segment presentation for the year ended December 31, 2018 . Financial information relating to the Company’s reportable segments is as follows. Operational results of each reportable segment are not necessarily indicative of the results that would have been achieved had the reportable segment been an independent, stand-alone entity during the periods presented. Years Ended December 31, (in thousands) 2018 2017 2016 Revenues: (1) Builder operations Central $ 282,218 $ 224,670 $ 206,831 Southeast 301,595 214,850 169,241 Total builder operations 583,813 439,520 376,072 Land development 39,834 18,730 14,913 Total revenues $ 623,647 $ 458,250 $ 390,985 Gross profit (loss): Builder operations Central $ 61,882 $ 53,840 $ 51,013 Southeast 72,187 49,033 37,808 Total builder operations 134,069 102,873 88,821 Land development 9,334 5,454 4,600 Corporate and other (2) (13,073 ) (9,293 ) (5,659 ) Total gross profit $ 130,330 $ 99,034 $ 87,762 Income (loss) before taxes: Builder operations Central $ 37,535 $ 36,224 $ 34,939 Southeast 47,237 34,636 24,639 Total builder operations 84,772 70,860 59,578 Land development 6,155 4,320 3,611 Corporate and other (3) (9,256 ) (10,943 ) (12,635 ) Total income before taxes $ 81,671 $ 64,237 $ 50,554 Inventory: Builder operations Central $ 160,980 $ 111,271 $ 76,878 Southeast 159,616 99,613 90,859 Total builder operations 320,596 210,884 167,737 Land development 329,105 272,542 232,726 Corporate and other (4) 19,260 12,628 9,834 Total inventory $ 668,961 $ 496,054 $ 410,297 Goodwill: (5) Builder operations - Southeast $ 680 $ — $ — (1) The sum of Builder operations Central and Southeast segments’ revenues does not equal residential units revenue included in the consolidated statements of income in periods when our controlled builders have revenues from land or lot closings, which for the years ended December 31, 2018 and 2016 were $4.9 million and $0.3 million , respectively. (2) Corporate and other gross profit is comprised of capitalized overhead and capitalized interest adjustments that are not allocated to builder operations and land development segments. (3) Corporate and other income (loss) before taxes includes results from Green Brick Title, Challenger, Green Brick Mortgage, and Providence Title. (4) Corporate and other inventory consists of capitalized overhead and interest related to work in process and land under development. (5) In connection with the GRBK GHO business combination, the Company recorded goodwill of $0.7 million . |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Employee Benefits | EMPLOYEE BENEFITS We have a qualifying 401(k) defined contribution plan that covers all employees of the Company. Each year, we may make discretionary matching contributions equal to a percentage of the employees’ contributions. The Company contributed $0.6 million and $0.5 million of matching contributions to the 401(k) plan during the years ended December 31, 2018 and 2017 . The Company did not contribute any matching contributions to the 401(k) plan during the year ended December 31, 2016 . |
Earnings Per Share (Notes)
Earnings Per Share (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | EARNINGS PER SHARE The Company’s restricted stock awards have the right to receive forfeitable dividends on an equal basis with common stock and therefore are not considered participating securities that must be included in the calculation of net income per share using the two-class method. Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during each period, adjusted for non-vested shares of restricted stock awards during each period. Diluted earnings per share is calculated using the treasury stock method and includes the effect of all dilutive securities, including stock options and restricted stock awards. The computation of basic and diluted net income attributable to Green Brick Partners, Inc. per share is as follows (in thousands, except per share amounts): Years Ended December 31, 2018 2017 2016 Net income attributable to Green Brick Partners, Inc. $ 51,623 $ 14,970 $ 23,756 Weighted-average number of shares outstanding — basic 50,652 49,597 48,879 Basic net income attributable to Green Brick Partners, Inc. per share $ 1.02 $ 0.30 $ 0.49 Weighted-average number of shares outstanding — basic 50,652 49,597 48,879 Dilutive effect of stock options and restricted stock awards 99 86 7 Weighted average number of shares outstanding — diluted 50,751 49,683 48,886 Diluted net income attributable to Green Brick Partners, Inc. per share $ 1.02 $ 0.30 $ 0.49 The following shares that could potentially dilute earnings per share in the future are not included in the determination of diluted net income attributable to Green Brick Partners, Inc. per common share (in thousands): Years Ended December 31, 2018 2017 2016 Antidilutive options to purchase common stock and restricted stock awards 8 — 144 |
Fair Value Measurements
Fair Value Measurements $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Fair Value Disclosures [Abstract] | |
Impairment of Real Estate | $ 0.1 |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair Value of Financial Instruments The Company’s financial instruments, none of which are held for trading purposes, include cash, restricted cash, receivables, earnest money deposits, other assets, accounts payable, accrued expenses, customer and builder deposits, borrowings on lines of credit, and notes payable. Per the fair value hierarchy, level 1 financial instruments include: cash, restricted cash, receivables, earnest money deposits, other assets, accounts payable, accrued expenses, and customer and builder deposits due to their short-term nature. The Company estimates that, due to the short-term nature of the underlying financial instruments or the proximity of the underlying transaction to the applicable reporting date, the fair value of level 1 financial instruments does not differ materially from the aggregate carrying values recorded in the consolidated financial statements as of December 31, 2018 and 2017 . Level 2 financial instruments include borrowings on lines of credit and notes payable. Due to the short-term nature and floating interest rate terms, the carrying amounts of borrowings on lines of credit and notes payable are deemed to approximate fair value. The fair value of the contingent consideration liability related to the GRBK GHO business combination was estimated using a Monte Carlo simulation model under the option pricing method. As the measurement of the contingent consideration is based primarily on significant inputs not observable in the market, it represents a level 3 measurement. The reconciliation of the beginning and ending balances for level 3 measurements is as follows (in thousands): Carrying Value Estimated Fair Value Contingent consideration liability, balance as of January 1, 2018 $ — $ — Estimated contingent consideration liability related to the GRBK GHO business combination 628 628 Purchase price adjustment (114 ) (114 ) Change in fair value of contingent consideration 1,693 1,693 Contingent consideration liability, balance as of December 31, 2018 $ 2,207 $ 2,207 There were no transfers between the levels of the fair value hierarchy for any of our financial instruments as of December 31, 2018 when compared to December 31, 2017 . Fair Value of Nonfinancial Instruments Nonfinancial assets and liabilities include inventory which is measured at cost unless the carrying value is determined to be not recoverable in which case the affected instrument is written down to fair value. Per the fair value hierarchy, these items are level 3 nonfinancial instruments. During the years ended December 31, 2018 and 2017 , the Company recorded impairment of $0.1 million and $0.1 million , respectively, related to those nonfinancial assets in cost of residential units in our builder operations segments. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS During 2018 , 2017 and 2016 , the Company had the following related party transactions through the normal course of business. The Parc at Cogburn In September 2015, the Company purchased 11 lots from an entity affiliated with the president of TPG, one of its controlled builders. The lots are part of a 19 -home community, The Parc at Cogburn in Atlanta. The total paid for the lots in 2015 was $1.8 million . Under the option contract in place, the Company purchased $0.3 million in lots during the year ended December 31, 2016, and $1.0 million in lots during the year ended December 31, 2017. The Company purchased all 19 lots as of December 31, 2017 . Glens at Sugarloaf In November 2015, the Company purchased 12 lots from an entity affiliated with the president of TPG. The lots are part of a 92 -unit townhome community, Glens at Sugarloaf in Atlanta. No deposits were paid by the Company in contracting for the lots. The total paid for the lots in 2015 was $1.0 million . During March 2016, the Company purchased the remaining 80 townhome lots at a price of $4.8 million . Academy Street In March 2016, the Company purchased undeveloped land for an eventual 83 -lot community, Academy Street in Atlanta. Simultaneously, the Company entered into a partnership agreement with an entity affiliated with the president of TPG to develop the land for sale of the lots to TPG. Contributions and profits are shared 80% by the Company and 20% by the affiliated entity. During the year ended December 31, 2017 , TPG purchased 62 lots within the community for $11.2 million . During the year ended December 31, 2018, TPG purchased the remaining 21 lots within the community for $2.9 million . Total capital contributions as of December 31, 2018 were $11.7 million . Total capital contributions paid during the year ended December 31, 2016 were $11.2 million , of which $9.0 million was paid by the Company. Total contributions paid during the year ended December 31, 2017 were $0.5 million , of which $0.4 million was paid by the Company. There were no contributions made to the partnership during the year ended December 31, 2018 . Total distributions as of December 31, 2018 were $14.8 million . There were no distributions from the partnership during the year ended December 31, 2016. Total distributions from the partnership during the year ended December 31, 2017 were $11.5 million , of which $9.2 million was paid to the Company. Total distributions from the partnership during the year ended December 31, 2018 were $3.3 million , of which $2.7 million was paid to the Company. The Company has consolidated the entity’s results of operations and financial condition into its consolidated financial statements based on its 80% ownership. Suwanee Station In March 2016, the Company purchased undeveloped land for a 73 -unit townhome community, Suwanee Station in Atlanta. Simultaneously, the Company entered into a partnership agreement with an entity affiliated with the president of TPG to develop the land for sale of the lots to TPG. Contributions and profits are shared 50% by the Company and 50% by the affiliated entity. During the years ended December 31, 2018 , 2017 and 2016 , TPG purchased 8, 27, and 25 lots within the community for $0.4 million , $1.6 million and $1.3 million , respectively. As of December 31, 2018, there were 13 lots remaining to be sold to TPG. Total capital contributions as of December 31, 2018 were $2.5 million . Total capital contributions paid during the year ended December 31, 2016 were $1.8 million , of which $0.9 million was paid by the Company. The contributions paid during the year ended December 31, 2017 were $0.7 million , of which $0.4 million was paid by the Company. The were no contributions paid during the year ended December 31, 2018 . Total distributions as of December 31, 2018 were $2.3 million . There were no distributions from the partnership during the year ended December 31, 2016 . Total distributions from the partnership during the year ended December 31, 2017 were $1.5 million , of which $0.7 million was paid to the Company. Total distributions from the partnership during the year ended December 31, 2018 were $0.9 million , of which $0.4 million was paid to the Company. The Company holds two of the three board seats and is able to exercise control over the operations of GRBK Suwanee Station LLC and therefore has consolidated the entity’s results of operations and financial condition into its consolidated financial statements. Dunwoody Towneship In June 2016, the Company purchased 14 lots from an entity affiliated with the president of TPG. The lots are part of a 40 -unit townhome community, Dunwoody Towneship in Atlanta. The total paid for the 14 lots in 2016 was $1.8 million . The Company purchased the remaining 26 lots during the year ended December 31, 2017 for $3.3 million . Corporate Officers In February 2017, Richard A. Costello paid a $0.1 million deposit to Centre Living Homes, LLC (“Centre Living”), one of the Company’s controlled builders, on a townhome. During the fourth quarter of 2017, Mr. Costello closed on the townhome for approximately $0.5 million . In accordance with the Company’s employee discount policy, the contract price resulted in a margin of approximately 13% . In February 2017, Jed Dolson paid a $0.1 million deposit to Centre Living on a townhome. During the fourth quarter of 2017, as allowed for in the Company’s employee discount policy, Mr. Dolson assigned his rights to purchase the townhome to his sister-in-law. The townhome was closed on in the fourth quarter of 2017 for approximately $0.5 million . In accordance with the Company’s employee discount policy, the contract price resulted in a margin of approximately 13% . Trevor Brickman, the son of Green Brick’s Chief Executive Officer, is the President of Centre Living. Green Brick’s ownership interest in Centre Living is 50% and Trevor Brickman’s ownership interest is 50% . Green Brick has 51% voting control over the operations of Centre Living. As such, 100% of Centre Living’s operations are included within our consolidated financial statements. In June 2016, the Company sold one developed lot to Trevor Brickman for $0.4 million , of which $0.3 million was included in the cost of land and lots. In September 2016, Trevor Brickman entered into an agreement with Centre Living to construct a home on the developed lot. In accordance with the Company’s employee discount policy, the contract price resulted in a margin of approximately 13% . The home was completed in 2017 and the Company incurred $0.6 million in costs to construct the home. GRBK GHO GRBK GHO leases office space from entities affiliated with the president of GRBK GHO. During the period from April 26, 2018 through December 31, 2018, GRBK GHO incurred rent expense of $0.1 million under such lease agreements. As of December 31, 2018, there were no amounts due to the affiliated entities related to such lease agreements. GRBK GHO receives title closing services on the purchase of land and third-party lots from an entity affiliated with the president of GRBK GHO. During the period from April 26, 2018 through December 31, 2018 , GRBK GHO incurred de minimus fees related to such title closing services. As of December 31, 2018 , no amounts were due to the title company affiliate. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Letters of Credit and Performance Bonds During the ordinary course of business, certain regulatory agencies and municipalities require the Company to post letters of credit or performance bonds related to development projects. As of December 31, 2018 and 2017 , letters of credit outstanding were $2.2 million and $0.2 million , respectively, and performance bonds outstanding totaled $5.3 million and $3.6 million , respectively. The Company does not believe that it is likely that any material claims will be made under a letter of credit or performance bond in the foreseeable future. Warranties Warranty activity, included in accrued expenses in our consolidated balance sheets, for 2018 , 2017 and 2016 consists of the following (in thousands): 2018 2017 2016 Beginning balance $ 2,083 $ 1,210 $ 474 Additions 2,579 1,936 1,399 Charges (1,682 ) (1,063 ) (663 ) Ending balance $ 2,980 $ 2,083 $ 1,210 Lease Commitments The Company has leases associated with office space in Georgia, Texas, and Florida, which are classified as operating leases. Rent expense under these leases totaled $1.2 million , $0.9 million , and $0.7 million in 2018 , 2017 and 2016 , respectively, and is included in selling, general and administrative expense in the consolidated statements of income. The future annual minimum lease payments under operating leases over the next five years as of December 31, 2018 are (in thousands): 2019 $ 1,263 2020 1,256 2021 1,011 2022 734 2023 558 Total $ 4,822 Land and Lot Option Contracts In the ordinary course of business, the Company enters into land and lot option contracts in order to procure land for the construction of homes in the future. Earnest money deposits act as security for such contracts. Certain of our earnest money deposits are subject to first priority liens on the land that we have contracted to procure. As of December 31, 2018 and 2017 , there were 1,843 and 1,724 lots under option, respectively, including option contracts for land intended to be developed into lots. The land and lot option contracts in place as of December 31, 2018 provide for potential land and lots purchase payments in each year through 2022 . If each option contract in place as of December 31, 2018 was exercised, expected purchase payments, including escalators, would be as follows (in thousands): 2019 $ 114,198 2020 58,751 2021 18,601 2022 1,680 Total $ 193,230 The amounts of purchased land and lots under option contracts for the years ended December 31, 2018 , 2017 and 2016 were $150.4 million , $122.3 million , and $106.5 million , respectively. Deposits and pre-acquisition costs written off related to option contracts abandoned totaled $0.7 million , $0.2 million and $0.2 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Legal Matters Lawsuits, claims and proceedings may be instituted or asserted against us in the normal course of business. The Company is also subject to local, state and federal laws and regulations related to land development activities, house construction standards, sales practices, title company regulations, employment practices and environmental protection. As a result, the Company may be subject to periodic examinations or inquiry by agencies administering these laws and regulations. The Company records a reserve for potential legal claims and regulatory matters when they are probable of occurring and a potential loss is reasonably estimable. The Company accrues for these matters based on facts and circumstances specific to each matter and revises these estimates when necessary. In view of the inherent difficulty of predicting outcomes of legal claims and related contingencies, the Company generally cannot predict their ultimate resolution, related timing or eventual loss. If evaluations indicate loss contingencies that could be material are not probable, but are reasonably possible, the Company will disclose their nature with an estimate of the possible range of losses or a statement that such loss is not reasonably estimable. We believe that the disposition of legal claims and related contingencies will not have a material adverse effect on our results of operations and liquidity or on our financial condition. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | QUARTERLY FINANCIAL DATA (UNAUDITED) Summarized unaudited quarterly results of operations for the years ended December 31, 2018 and 2017 are as follows (in thousands, except per share amounts): Year Ended December 31, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 129,163 $ 157,312 $ 152,052 $ 185,120 Gross profit 27,268 35,070 31,004 36,988 Net income attributable to Green Brick Partners, Inc. 11,203 14,869 12,197 13,354 Net income attributable to Green Brick Partners, Inc. per common share: (2) Basic $0.22 $0.29 $0.24 $0.26 Diluted $0.22 $0.29 $0.24 $0.26 Year Ended December 31, 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 100,734 $ 105,750 $ 114,342 $ 137,424 Gross profit 21,500 23,031 25,506 28,997 Net income (loss) attributable to Green Brick Partners, Inc. (1) 6,197 7,689 9,279 (8,195 ) Net income (loss) attributable to Green Brick Partners, Inc. per common share: (2) Basic $0.13 $0.16 $0.19 $(0.16) Diluted $0.13 $0.16 $0.19 $(0.16) (1) Net loss attributable to Green Brick Partners, Inc. in the fourth quarter is due to the remeasurement of our deferred tax assets as a result of the change in federal statutory tax rate which resulted in additional tax expense of $19.0 million . (2) Per share amounts for the four quarters do not add to per share amounts for the year due to rounding differences in quarterly amounts and due to the impact of differences between the quarterly and annual weighted average share calculations. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||
Goodwill and Intangible Assets, Policy [Policy Text Block] | Intangible Assets Intangible assets, net consists of the estimated fair value of acquired home construction contracts and trade name. A high degree of judgment is made by management regarding assumptions, such as revenue growth rates, profitability, and discount rates, when estimating the value of the intangible assets. The identified home construction contracts intangible asset is amortized to cost of residential units as income on the related contracts is earned, over a period of eleven months. The trade name has a definite life and is amortized over ten years. Intangible assets are tested for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss would be recognized if the carrying amount of the asset exceeds the estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. The impairment loss recorded would be the excess of the asset’s carrying value over its fair value. Fair value would be determined using a discounted cash flow analysis or other valuation technique. Goodwill The excess of the purchase price of a business acquisition over the net fair value of assets acquired and liabilities assumed is capitalized as goodwill in accordance with ASC 805, Business Combinations (“ASC 805”). Goodwill is assessed for impairment at least annually in the fourth quarter, or more frequently if certain impairment indicators are present. | |
Cost of Sales, Vendor Allowances, Policy [Policy Text Block] | Earnest Money Deposits In the ordinary course of business, the Company enters into land and lot option contracts in order to procure land for the construction of homes in the future. Pursuant to these option contracts, the Company generally provides a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. Such contracts enable the Company to defer acquiring portions of properties owned by third parties or unconsolidated entities until the Company has determined whether and when to exercise its option, which reduces the Company’s financial risk associated with long-term land holdings. Option deposits and pre-acquisition costs (such as environmental testing, surveys, engineering, and entitlement costs) are capitalized if the costs are directly identifiable with the land under option and acquisition of the property is probable. Such costs are reflected in earnest money deposits and are reclassified to inventory upon taking title to the land. The Company writes off deposits and pre-acquisition costs if it becomes probable that the Company will not proceed with the project or recover the capitalized costs. Such decisions take into consideration changes in local market conditions, the timing of required land takedowns, the availability and best use of necessary incremental capital, and other factors. Under ASC 810, a non-refundable deposit paid to an entity is deemed to be a variable interest that will absorb some or all of the entity’s expected losses if they occur and, as such, the Company’s land and lot option contracts are considered variable interests. The Company’s option contract deposits along with any related pre-acquisition costs represent the Company’s maximum exposure to the land seller if the Company elects not to purchase the optioned property. Therefore, whenever the Company enters into an option or purchase contract with an entity and makes a non-refundable deposit, a VIE assessment is performed. However, the Company generally has little control or power to direct the activities that most significantly impact the VIE’s economic performance due to the Company’s lack of an equity interest in them. Additionally, creditors of the VIE typically have no material recourse against the Company, and the Company does not provide financial or other support to these VIEs other than as stipulated in the option contracts. In accordance with ASC 810, the Company performs ongoing reassessments of whether the Company is the primary beneficiary of a VIE. | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) as set forth in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) and applicable regulations of the Securities and Exchange Commission (“SEC”). | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of Green Brick Partners, Inc., its controlled subsidiaries, and variable interest entities (“VIEs”) in which Green Brick Partners, Inc. or one of its controlled subsidiaries is deemed to be the primary beneficiary (together, the “Company”, “we”, or “Green Brick”). All intercompany balances and transactions have been eliminated in consolidation. The Company uses the equity method of accounting for its investments in unconsolidated entities over which it exercises significant influence but does not have a controlling interest. Under the equity method, the Company’s share of the unconsolidated entities’ earnings or losses is included in the consolidated statements of income. | |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management of the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes, including the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. | |
Reclassification, Policy [Policy Text Block] | Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. | |
Cash and Cash Equivalents | The cash balances of the Company are held with multiple financial institutions. At times, cash balances at certain banks and financial institutions may exceed insurable amounts. The Company believes it mitigates this risk by monitoring the financial stability of institutions holding material cash balances. The Company has not experienced any losses in such accounts and believes that the risk of loss is minimal. | |
Restricted Cash | Restricted Cash Restricted cash primarily relates to cash held in escrow for sales of developed lots to third parties and customer deposits from homebuyers. | |
Accounts Receivable and Allowance for Doubtful Accounts | consist of amounts collectible from manufacturing rebates earned by our homebuilders during the normal course of business, amounts collectible from third-party escrow agents related to closings on land, lots and homes, amounts collectible related to mechanic’s lien contracts, as well as income tax receivables. As of December 31, 2018 and 2017 , all amounts are considered fully collectible and no allowance for doubtful accounts is recorded. Any allowance for doubtful accounts is estimated based on our historical losses, the existing economic conditions, and the financial stability of our customers. Receivables are written off in the period that they are deemed uncollectible. | |
Inventory and Impairment of Real Estate Inventory | Inventory and Cost of Revenues Inventory consists of undeveloped land, raw land scheduled for development, land in the process of development, land held for sale, developed lots, homes completed and under construction, and model homes. Inventory is valued at cost unless the carrying value is determined to be not recoverable in which case the affected inventory is written down to fair value. Cost includes any related pre-acquisition costs that are directly identifiable with a specific property so long as those pre-acquisition costs are anticipated to be recoverable at the sale of the property. Residential lots held for sale and lots held for development include the initial cost of acquiring the land as well as certain costs capitalized related to developing the land into individual residential lots including direct overhead, interest and real estate taxes. Land development and other project costs, including direct overhead, interest and property taxes incurred during development and home construction, are capitalized. Land development and other common costs that benefit an entire community are allocated to individual lots or homes based on relative sales value. The costs of completed lots are transferred to work in process when home construction begins. Home construction costs and related carrying charges (principally interest and real estate taxes) are allocated to the cost of individual homes. Inventory costs for completed homes are expensed upon closing and delivery of the homes. Changes to estimated total land development costs subsequent to initial home closings in a community are generally allocated to the unsold homes in the community on a pro-rata basis. The life cycle of a community generally ranges from two to six years, commencing with the acquisition of land, continuing through the land development phase, construction, and concluding with the sale and delivery of homes. We recognize costs as incurred on our mechanic’s lien contracts. Impairment of Inventory In accordance with the ASC 360, Property, Plant, and Equipment (“ASC 360”), we evaluate our inventory for indicators of impairment by individual community and development during each reporting period. For our builder operations segments, during each reporting period, community gross margins are reviewed by management. In the event that homebuilding inventory in an individual community is moving at a slower than anticipated absorption pace or the average sales prices or margins within an individual community are trending downward and are anticipated to continue to trend downward over the life of the community, the Company will further investigate the community and evaluate it for impairment. For our land development segment, we perform a quarterly review for indicators of impairment for each project which involves projecting future lot closings based on executed contracts and comparing these revenues to projected costs. In determining the allocation of costs to a particular land parcel, we rely on project budgets which are based on a variety of assumptions, including assumptions about development schedules and future costs to be incurred. It is common that actual results differ from budgeted amounts for various reasons, including delays, increases in costs that have not been committed, unforeseen issues encountered during project development that fall outside the scope of existing contracts, or items that ultimately cost more or less than the budgeted amount. We apply procedures to maintain best estimates in our budgets, including assessing and revising project budgets on a periodic basis, obtaining commitments from subcontractors and vendors for future costs to be incurred and utilizing the most recent information available to estimate costs. Each reporting period, management reviews the real estate assets, including land held for sale, to determine whether the estimated remaining undiscounted future cash flows are more or less than the asset’s carrying value. The estimated cash flows are determined by projecting the remaining revenue from lot closings based on the contractual lot takedowns remaining or historical/projected home sales/delivery absorptions for homebuilding operations and then comparing such projections to the remaining projected expenditures for development or home construction. Remaining projected expenditures are based on the most current pricing/bids received from subcontractors for current phases or homes under development. For future phases of land development, management uses its judgment to project potential cost increases. In determining the estimated cash flows for land held for sale, management considers recent comparisons to market comparable transactions, bona fide letters of intent from outside parties, executed sales contracts, broker quotes, and similar information. When projecting revenue, management does not assume improvement in market conditions. If the estimated undiscounted cash flows are more than the asset’s carrying value, no impairment adjustment is required. However, if the estimated undiscounted cash flows are less than the asset’s carrying value, the asset is deemed impaired and will be written down to fair value less associated costs to sell. These impairment evaluations require us to make estimates and assumptions regarding future conditions, including the timing and amounts of development costs and sales prices of real estate assets, to determine if expected future cash flows will be sufficient to recover the asset’s carrying value. Fair value is determined based on estimated future cash flows discounted for inherent risks associated with real estate assets. These discounted cash flows are impacted by expected risk based on estimated land development activities, construction and delivery timelines, market risk of price erosion, uncertainty of development or construction cost increases, and other risks specific to the asset or market conditions where the asset is located when the assessment is made. These factors are specific to each community and may vary among communities. When estimating cash flows of a community, management makes various assumptions, including: (i) expected sales prices and sales incentives to be offered, including the number of homes available, pricing and incentives being offered by us or other builders, and future sales price adjustments based on market and economic trends; (ii) expected sales pace and cancellation rates based on local housing market conditions, competition and historical trends; (iii) costs expended to date and expected to be incurred including, but not limited to, land and land development costs, home construction costs, interest costs, indirect construction and overhead costs, and selling and marketing costs; (iv) alternative product offerings that may be offered that could have an impact on sales pace, sales price and/or building costs; and (v) alternative uses for the property. Many assumptions are interdependent and a change in one may require a corresponding change to other assumptions. For example, increasing or decreasing sales absorption rates has a direct impact on the estimated per unit sales price of a home, the level of time-sensitive costs (such as indirect construction, overhead and carrying costs), and selling and marketing costs (such as model home maintenance costs and advertising costs). Due to uncertainties in the estimation process, the volatility in demand for new housing and the long life cycle of many communities, actual results could differ significantly from such estimates. | |
Equity Method Investments | Investments in Unconsolidated Entities In accordance with ASC 323, Investments - Equity Method and Joint Ventures (“ASC 323”) , the Company uses the equity method of accounting for its investments in unconsolidated entities over which it exercises significant influence but does not have a controlling interest. The equity method of accounting requires the investment to be initially recorded at cost and subsequently adjusted for the Company ’ s share of equity in the unconsolidated entity’s earnings or losses . The Company evaluates the carrying amount of the investments in unconsolidated entities for impairment in accordance with ASC 323. If the Company determines that a loss in the value of the investment is other than temporary, the Company writes down the investment to its estimated fair value. Any such losses are recorded to e quity in income of unconsolidated entities in the Company ’ s consolidated statements of income. Due to uncertainties in the estimation process and the volatility in demand for new housing, actual results could differ significantly from such estimates. The Company has made an election to classify distributions received from unconsolidated entities using the nature of the distribution approach. Distributions received are classified as cash inflows from operating activities based on the nature of the activities of the investee that generated the distribution. | |
Capitalization of Interest | Capitalization of Interest The Company capitalizes interest costs incurred to inventory during development and other qualifying activities. Interest capitalized as cost of inventory is charged to cost of revenues as related homes, land and lots are closed. Interest incurred on undeveloped land is directly expensed and included in interest expense in our consolidated statements of income. | |
Earnest Money Deposits | Variable Interest Entities The Company accounts for variable interest entities (“VIEs”) in accordance with ASC 810, Consolidation (“ASC 810”). In accordance with ASC 810, an entity is a VIE when: (a) the equity investment at risk in the entity is not sufficient to permit the entity to finance its activities without additional subordinated financial support provided by other parties, including the equity holders; (b) the entity’s equity holders as a group either (i) lack the direct or indirect ability to make decisions about the entity, (ii) are not obligated to absorb expected losses of the entity or (iii) do not have the right to receive expected residual returns of the entity; or (c) the entity’s equity holders have voting rights that are not proportionate to their economic interests, and the activities of the entity involve or are conducted on behalf of the equity holder with disproportionately few voting rights. If an entity is deemed to be a VIE pursuant to ASC 810, the enterprise that has both (i) the power to direct the activities of the VIE that most significantly impacts the entity’s economic performance and (ii) the obligation to absorb the expected losses of the entity or right to receive benefits from the entity that could be potentially significant to the VIE is considered the primary beneficiary and must consolidate the VIE. In accordance with ASC 810, the Company performs ongoing reassessments of whether it is the primary beneficiary of a VIE. The financial statements of the VIEs for which the Company is considered to be the primary beneficiary, if any, are consolidated in the Company’s consolidated financial statements. The noncontrolling interests attributable to other beneficiaries of the VIEs are included as noncontrolling interests in the Company’s consolidated financial statements. | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed over the estimated useful lives of the assets using the straight-line method. The estimated useful lives of assets range from one to fifteen years. | |
Customer and Builder Deposits | Customer and Builder Deposits The Company typically requires customers to submit a deposit for home purchases and for builders to submit a deposit in connection with their construction loan agreements. The deposits serve as a guarantee to performance under home purchase and land development contracts. Cash received as customer and builder deposits, if held in escrow, is shown as restricted cash on the consolidated balance sheets. | |
Warranties | Warranties The Company accrues an estimate of its exposure to warranty claims based on both current and historical home closings data and warranty costs incurred. The Company offers homeowners a comprehensive third-party warranty on each home. Homes are generally covered by a ten-year warranty for qualified and defined structural defects, one year for defects and products used, and two years for electrical, plumbing, heating, ventilation, and air conditioning parts and labor. Warranty accruals are included within accrued expenses on the consolidated balance sheets. Any legal costs associated with loss contingencies related to warranties are expensed as incurred. | |
Net Income Attributable to Green Brick Partners, Inc. Per Share | . Selling, General and Administrative Expense Selling, general and administrative expense represents salaries, benefits, share-based compensation, property taxes on finished homes, depreciation, amortization, advertising and marketing, rent, and other administrative items, and is recorded in the period incurred. Advertising Expense The Company expenses advertising costs as incurred. Advertising costs are included in selling, general and administrative expense in the consolidated statements of income. Advertising expense for the years ended December 31, 2018 , 2017 and 2016 totaled $1.5 million , $0.8 million and $0.7 million , respectively. Interest Expense Interest expense consists primarily of interest costs incurred on our debt that are not capitalized, and amortization of debt issuance costs. We capitalize interest costs incurred to inventory during development and other qualifying activities. Debt issuance costs are capitalized to inventory over the term of the underlying debt using the straight-line method, in accordance with our interest capitalization policy. All interest costs were capitalized during the years ended December 31, 2018 , 2017 and 2016 . Net Income Attributable to Green Brick Partners, Inc. per Share The Company’s restricted stock awards have the right to receive forfeitable dividends on an equal basis with common stock and therefore are not considered participating securities that must be included in the calculation of net income per share using the two-class method. Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during each period, adjusted for non-vested shares of restricted stock awards during each period. Diluted earnings per share is calculated using the treasury stock method and includes the effect of all dilutive securities, including stock options and restricted stock awar | |
Cost Recognition | . Cost Recognition Lot acquisition, materials, direct costs, interest and indirect costs related to the acquisition, development, and construction of lots and homes are capitalized. Direct and indirect costs of developing residential lots are allocated evenly to all applicable lots. Capitalized costs of residential lots are charged to earnings when the related revenue is recognized. Non-capitalizable costs in connection with developed lots and completed homes and other selling and administrative costs are charged to earnings when incurr | |
Advertising Expense | Advertising Expense The Company expenses advertising costs as incurred. Advertising costs are included in selling, general and administrative expense in the consolidated statements of income. Advertising expense for the years ended December 31, 2018 , 2017 and 2016 totaled $1.5 million , $0.8 million and $0.7 million , respectively. | |
Debt Issuance Costs | Debt Issuance Costs Debt issuance costs represent costs incurred related to the revolving secured and unsecured credit facilities, including amendments thereto, and reduce the carrying amount of debt on the consolidated balance sheets. These costs are subject to capitalization to inventory over the term of the related debt facility using the straight-line method. | |
Temporary Equity [Policy Text Block] | Redeemable Noncontrolling Interest in Equity of Consolidated Subsidiary Redeemable noncontrolling interest in equity of consolidated subsidiary represents equity related to a put option held by a minority shareholder of a subsidiary. Based on the put option structure, the minority shareholder’s interest in the controlled subsidiary is classified as a redeemable noncontrolling interest on the consolidated balance sheets. The accretion of the redeemable noncontrolling interest to its estimated redemption value is recorded in additional paid-in capital on the consolidated balance sheets if the estimated redemption value, net of accretion, is greater than the current value of the noncontrolling interest capital account. | |
Share-based Compensation | Share-Based Compensation The Company measures and accounts for share-based awards in accordance with ASC 718, Compensation - Stock Compensation . The Company expenses share-based payment awards made to employees and directors, including stock options and restricted stock awards. Share-based compensation expense associated with stock options and restricted stock awards with vesting contingent upon the achievement of service conditions is recognized on a straight-line basis, net of estimated forfeitures, over the requisite service period over which the awards are expected to vest. The Company estimates the value of stock options with vesting contingent upon the achievement of service conditions as of the date the award was granted using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the use of certain input variables, such as expected volatility, risk-free interest rate and expected award li | |
Income Taxes | . Income Taxes The Company accounts for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases, operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in years in which temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company regularly reviews historical and anticipated future pre-tax results of operations to determine whether we will be able to realize the benefit of deferred tax assets. A valuation allowance is required to reduce the deferred tax asset when it is more-likely-than-not that all or some portion of the deferred tax asset will not be realized due to the lack of sufficient taxable income. The Company assesses the recoverability of deferred tax assets and the need for a valuation allowance on an ongoing basis. In making this assessment, management considers all available positive and negative evidence and available income tax planning to determine whether it is more-likely-than-not that some portion or all of the deferred tax assets will be realized in future periods. This assessment requires significant judgment and estimates involving current and deferred income taxes, tax attributes relating to the interpretation of various tax laws, historical bases of tax attributes associated with certain assets and limitations surrounding the realization of deferred tax assets. We establish reserves for uncertain tax positions that reflect our best estimate of deductions and credits that may not be sustained on a more-likely-than-not basis. We recognize interest and penalties related to uncertain tax positions in the income tax expense in the consolidated statements of income. Accrued interest and penalties, if any, are included within accrued expenses on the consolidated balance sheets. In accordance with ASC 740, Income Taxes , the Company recognizes the effect of income tax positions only if those positions have a more-likely-than-not chance of being sustained by the Company. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. | |
Revenue from Contract with Customer [Policy Text Block] | Revenue Recognition Contracts with Customers The Company derives revenues from two primary sources: the closing and delivery of homes through our builder operations segments and the closing of lots sold to homebuilders through our land development segment. All of our revenue is from contracts with customers. Contract Liabilities The Company requires homebuyers to submit a deposit for home purchases and requires third-party builders to submit a deposit in connection with land sale or lot option contracts. The deposits serve as a guarantee for performance under homebuilding and land sale or development contracts. Cash received as customer deposits is reflected as customer and builder deposits on the consolidated balance sheets. Performance Obligations The Company’s contracts with homebuyers contain a single performance obligation. The performance obligation is satisfied when homes are completed and legal title has been transferred to the buyer. The Company does not have any variable consideration associated with home sales transactions. Revenue from mechanic’s lien contracts in which the Company serves as the general contractor for custom homes where the customer, and not the Company, owns the underlying land and improvements is recognized based on the input method, where progress toward completion is measured by relating the actual cost of work performed to date to the estimated total cost of the respective contracts. Lot option contracts contain multiple performance obligations. The performance obligations are satisfied as lots are closed and legal title has been transferred to the builder. For lot option contracts, individual performance obligations are accounted for separately. The transaction price is allocated to the separate performance obligations on a relative stand-alone selling price basis. Certain lot option contracts require escalations in lot price over the option period. Any escalator is not collectible until the lot closing occurs. While we recognize lot escalators as variable consideration within the transaction price, we do not recognize escalator revenue until a builder closes on a lot subject to an escalator as the escalator relates to general inflation and holding costs. Occasionally, the Company sells developed and undeveloped land parcels. If the land parcel is developed prior to the sale of the land, the revenue is recognized at closing since we deliver a single performance obligation in the form of a developed parcel. We also recognize revenue at closing on undeveloped land parcel sales as there are no other obligations beyond delivering the undeveloped land. Homebuyers are not obligated to pay for a home until the closing and delivery of the home. The selling price of a home is based on the contract price adjusted for any change orders, which are considered modifications of the contract price. Homebuilders are not obligated to pay for developed lots prior to control of the lots and any associated improvements being transferred to them. The term of our lot option contracts is generally based upon the number of lots being purchased and an agreed upon lot takedown schedule, which can be in excess of one year. Lots cannot be taken down until development is substantially complete. There is no significant financing component related to our third-party lot sales. The Company does not sell warranties outside of the customary workmanship warranties provided on homes or developed lots at the time of sale. The warranties offered to homebuyers are short term, with the exception of ten-year warranties on structural concerns for homes. As these are assurance-type warranties, there is no separate performance obligation related to warranties provided to homebuyers or homebuilder. Significant Judgments and Estimates There are no significant judgments involved in the recognition of residential units revenue. The performance obligation of delivering a completed home is satisfied upon the sale closing when title transfers to the buyer. There are no significant judgments involved in the recognition of land and lots revenue. The performance obligation of delivering land and lots is satisfied upon the closing of the sale when title transfers to the homebuilder. Contract Costs The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if it expects to recover those costs. The Company pays sales commissions to employees and/or outside realtors related to individual home sales which are expensed as incurred at the time of closing. Commissions on the sale of land parcels are also expensed as incurred upon closing. Sales commissions on the sale of homes are included in the cost of revenues in the consolidated statements of income. The Company also pays builder incentives to employees which are based on the time it takes to build individual homes, as well as quality inspection completion and customer satisfaction. The builder incentives do not represent incremental costs that would require capitalization as we would incur these costs whether or not we sold the home. As such, we recognize builder incentives as expense at the time they are paid. Advertising costs, sales salaries and certain costs associated with model homes, such as signage, do not qualify for capitalization under ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers , as they are not incremental costs of obtaining a contract. As such, we expense these costs to selling, general and administrative expense as incurred. Costs incurred related to model home furnishings and sales office construction are capitalized and included in property and equipment, net on the consolidated balance shee | |
Fair Value Measurements | Fair Value Measurements The Company has adopted and implemented the provisions of ASC 820-10, Fair Value Measurements , with respect to fair value measurements of: all elected financial assets and liabilities and any nonfinancial assets and liabilities that are recognized or disclosed in the consolidated financial statements at fair value on a recurring basis (at least annually). Under ASC 820-10, fair value is defined as an exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. These provisions establish a three-tiered fair value hierarchy that prioritizes inputs to valuation techniques used in fair value calculations. The three levels of input are defined as follows: Level 1 — unadjusted quoted prices for identical assets or liabilities in active markets accessible by the Company; Level 2 — inputs that are observable in the marketplace other than those classified as Level 1; and Level 3 — inputs that are unobservable in the marketplace and significant to the valuation. Entities are encouraged to maximize the use of observable inputs and minimize the use of unobservable inputs. If a financial instrument uses inputs that fall in different levels of the hierarchy, the instrument will be categorized based upon the lowest level of input that is significant to the fair value calculation. Our valuation methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while we believe our valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. | |
Segment Information | Segment Information In accordance with ASC 280, Segment Reporting (“ASC 280”), an operating segment is defined as a component of an enterprise for which discrete financial information is available and reviewed regularly by the chief operating decision maker (“CODM”), or decision-making group, to evaluate performance and make operating decisions. A reportable segment is an operating segment, either separately defined or aggregated from several operating segments based on similar economic and other characteristics, that exceeds certain quantitative thresholds of ASC 280. The Company identifies its CODM as four key executives - the Chief Executive Officer, Chief Financial Officer, President of Texas Region and Chief Accounting Officer. In determining the reportable segments, the CODM considers similar economic and other characteristics, including geography, class of customers, product types, and production processes. | |
Business Combinations Policy [Policy Text Block] | Business Combinations Acquisitions are accounted for in accordance with ASC 805. Following the determination that control of a business and its inputs, processes and outputs were obtained in exchange for consideration, all material assets and liabilities of the business, including contingent consideration, are measured and recognized at fair value as of the date of the acquisition to reflect the purchase price. Depending on the fair value of net assets acquired, the purchase price allocation may or may not result in goodwill. Contingent consideration is subsequently remeasured to fair value at each reporting date until the contingency is resolved, with any change in fair value recognized in the consolidated statements of income. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company adopted Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), on January 1, 2018. ASU 2014-09 was codified into ASC 606, Revenue from Contracts with Customers (“ASC 606”). The Company adopted ASC 606 using the modified retrospective method applied to contracts which were not completed as of January 1, 2018, which required the cumulative effect of the initial application of the new standard, if any, to be reflected as an adjustment to the opening balance of retained earnings as of January 1, 2018. The Company’s revenue recognition disclosures expanded significantly under ASC 606, specifically related to the quantitative and qualitative information about performance obligations, information about contract balances, changes in contract assets and liabilities and disaggregation of revenue. The adoption of ASC 606 did not have a material effect on the Company’s consolidated statements of income and there was no cumulative effect on the opening balance of retained earnings as of January 1, 2018. As a result of the adoption of ASU 2014-09, costs related to model home furnishings are no longer capitalizable as inventory; however, such costs are capitalizable as fixed assets. As of December 31, 2018 , $2.3 million of model home furnishings costs were included in property and equipment, net compared to $1.1 million included in inventory as of December 31, 2017 . The related depreciation expense of $2.0 million is included in selling, general and administrative expense for the year ended December 31, 2018 as opposed to $1.2 million included in cost of revenues for the year ended December 31, 2017. The adoption of ASU 2014-09 did not require significant changes to the Company's internal controls and procedures over financial reporting and disclosures. However, we have made enhancements to existing internal controls and procedures to ensure continued compliance with the disclosure requirements of the new standard. In February 2016, the FASB established Topic 842, Leases (“Topic 842”), by issuing ASU 2016-02, which requires lessees to recognize leases on the balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU 2018-01, Land Easement Practical Expedient for Transition to Topic 842 ; ASU 2018-10, Codification Improvements to Topic 842, Leases ; and ASU 2018-11, Targeted Improvements . The new standard establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the statement of income. The new standard was effective for the Company on January 1, 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. We adopted the new standard on January 1, 2019 and used the effective date as our date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients in transition. We elected the “package of practical expedients”, which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We did not elect the use-of-hindsight or the practical expedient pertaining to land easements, the latter not being applicable to us. The new standard also provides practical expedients for an entity’s ongoing accounting. We elected the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, we will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. We also elected the practical expedient to not separate lease and non-lease components for all of our leases. The adoption of this standard did not have a material effect on our consolidated financial statements and related disclosures. We believe the most significant effects relate to (1) the recognition of new ROU assets and lease liabilities on our consolidated balance sheet for our office operating leases and (2) providing new disclosures about our leasing activities. There was no change in our leasing activities as a result of adoption. Upon adoption, we recognized additional operating liabilities of approximately $4.2 million , with corresponding ROU assets of the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which reduces the existing diversity in practice in financial reporting across all industries by clarifying certain existing principles including providing additional guidance on what an entity should consider in determining the classification of certain cash receipts and payments. This standard was adopted by the Company as of January 1, 2018. The adoption of this standard did not have a material effect on the Company's consolidated financial statements and related disclosures. In November 2016, the FASB issued ASU 2016-18, S tatement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) , which requires restricted cash to be included with cash and cash equivalents when reconciling the beginning and ending amounts on the statement of cash flows. This standard is effective for the Company beginning January 1, 2018, and is to be applied using a retrospective transition method. The Company elected to early adopt this standard during January 2017, and the standard was applied retrospectively for all periods presented. As a result of the adoption of this standard, the Company no longer presents the change in restricted cash in the operating activities section of the consolidated statement of cash flows. Prior period amounts have been reclassified to conform to the current period presentation. Such reclassifications had no impact on previously reported operating results or financial position. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . The standard provides a more robust framework for determining whether transactions should be accounted for as acquisitions or dispositions of assets or businesses. This standard was effective for the Company beginning January 1, 2018. The adoption of this standard did not have a material effect on the Company’s consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”), which removes Step 2 of the goodwill impairment test. A goodwill impairment will now be determined by the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2019, with early adoption permitted. The Company does not expect the adoption of ASU 2017-04 to have a material impact on the Company’s consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting (“ASU 2017-09”), which amends the scope of modification accounting for share-based payment arrangements. The standard provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASU 2017-09. Specifically, an entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. This standard was effective for the Company beginning January 1, 2018. The adoption of this standard did not have a material effect on the Company's consolidated financial statements and related disclosures. |
Inventory (Tables)
Inventory (Tables) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Inventory [Line Items] | ||||
Inventory Disclosure [Text Block] | INVENTORY A summary of inventory is as follows (in thousands): December 31, 2018 December 31, 2017 Homes completed or under construction $ 268,763 $ 170,071 Land and lots - developed and under development 399,809 322,153 Land held for sale 389 3,830 Total inventory $ 668,961 $ 496,054 A summary of interest costs incurred, capitalized and expensed is as follows (in thousands): Years Ended December 31, 2018 2017 2016 Interest capitalized at beginning of year $ 10,474 $ 9,417 $ 9,085 Interest incurred 9,003 4,456 3,218 Interest charged to cost of revenues (4,697 ) (3,399 ) (2,886 ) Interest capitalized at end of year $ 14,780 $ 10,474 $ 9,417 For the years ended December 31, 2018 and 2017 , the Company recorded impairment of $0.1 million and $0.1 million , respectively, related to real estate inventory in our builder operations segments. The recorded impairment is included in cost of residential units in our consolidated statements of income. The Company did not note any indicators of impairment for any projects, and no impairment adjustments related to real estate inventory were recorded for the year ended December 31, 2016 . | |||
Finished Homes and Homes under Construction | $ 268,763 | $ 170,071 | ||
Inventory, Real Estate, Land and Land Development Costs | 399,809 | 322,153 | ||
Inventory, Land Held-for-sale | 389 | 3,830 | ||
Inventory, Real Estate | $ 668,961 | 496,054 | $ 410,297 | |
Schedule of Inventory, Current [Table Text Block] | A summary of inventory is as follows (in thousands): December 31, 2018 December 31, 2017 Homes completed or under construction $ 268,763 $ 170,071 Land and lots - developed and under development 399,809 322,153 Land held for sale 389 3,830 Total inventory $ 668,961 $ 496,054 | |||
Real Estate Inventory, Capitalized Interest Costs [Roll Forward] | A summary of interest costs incurred, capitalized and expensed is as follows (in thousands): Years Ended December 31, 2018 2017 2016 Interest capitalized at beginning of year $ 10,474 $ 9,417 $ 9,085 Interest incurred 9,003 4,456 3,218 Interest charged to cost of revenues (4,697 ) (3,399 ) (2,886 ) Interest capitalized at end of year $ 14,780 $ 10,474 $ 9,417 | |||
Real Estate Inventory, Capitalized Interest Costs | $ 14,780 | 10,474 | 9,417 | $ 9,085 |
Real Estate Inventory, Capitalized Interest Costs Incurred | 9,003 | 4,456 | 3,218 | |
Real Estate Inventory, Capitalized Interest Costs, Cost of Sales | $ 4,697 | $ 3,399 | $ 2,886 |
Investment in Unconsolidated _2
Investment in Unconsolidated Entity (Tables) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments [Table Text Block] | A summary of the financial information of the unconsolidated entities that are accounted for by the equity method is as follows (in thousands): December 31, 2018 December 31, 2017 Assets: Cash $ 14,584 $ 3,981 Accounts receivable 1,259 1,494 Bonds and notes receivable 5,864 2,850 Loans held for sale, at fair value 3,083 — Inventory 44,375 57,841 Other assets 3,132 2,248 Total assets $ 72,297 $ 68,414 Liabilities: Accounts payable $ 2,173 $ 5,060 Accrued expenses and other liabilities 5,328 2,857 Notes payable 31,402 36,923 Total liabilities $ 38,903 $ 44,840 Owners’ equity: Green Brick $ 15,653 $ 11,763 Others 17,741 11,811 Total owners’ equity $ 33,394 $ 23,574 Total liabilities and owners’ equity $ 72,297 $ 68,414 Year Ended December 31, 2018 Year Ended December 31, 2017 Revenues $ 166,102 $ 58,958 Costs and expenses 148,222 44,969 Net earnings of unconsolidated entities $ 17,880 $ 13,989 Company’s share in net earnings of unconsolidated entities $ 7,259 $ 2,746 | The Company’s investment in Challenger on August 15, 2017 was determined as follows (in thousands, except per share data): Consideration transferred at closing Green Brick common stock issued 1,477 Price per share of Green Brick common stock (1) $ 9.90 Fair value of common stock consideration $ 14,622 Acquisition related costs $ 241 Total fair value of consideration transferred at closing $ 14,863 Subsequent consideration Holdback Shares 20 Price per share of Green Brick common stock (1) $ 9.90 Total fair value of subsequent consideration $ 198 Total fair value of consideration $ 15,061 (1) Based upon closing price of the Company’s common stock upon the parties’ execution of the Challenger Agreement. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | The following is a summary of property and equipment by major classification and related accumulated depreciation as of December 31, 2018 and 2017 (in thousands): December 31, 2018 December 31, 2017 Land $ 763 $ — Building 82 — Model home furnishings and capitalized sales office costs 5,218 — Office furniture and equipment 427 399 Leasehold improvements 1,692 741 Computers and equipment 901 903 Vehicles and field trailers 279 10 9,362 2,053 Less: Accumulated depreciation (4,672 ) (1,249 ) Total property and equipment, net $ 4,690 $ 804 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Schedule of Components of Income Tax Expense (Benefit) | The components of current and deferred income tax expense are as follows (in thousands): Years Ended December 31, 2018 2017 2016 Current expense (benefit): Federal $ (569 ) $ 999 $ 158 State 2,993 1,733 2,076 Total current expense 2,424 2,732 2,234 Deferred expense (benefit): Federal 15,023 36,569 13,146 State (311 ) (270 ) 1 Total deferred expense 14,712 36,299 13,147 Total income tax expense $ 17,136 $ 39,031 $ 15,381 | |
Schedule of Deferred Tax Assets and Liabilities | The primary differences between the financial statement and tax bases of assets and liabilities are as follows (in thousands): December 31, 2018 December 31, 2017 Deferred tax assets: Basis in partnerships 10,947 13,377 Accrued expenses 2,182 1,418 Inventory 1,521 944 State net operating loss carryover 1,063 1,353 Federal net operating loss carryover 432 14,078 Alternative minimum tax credit carryover 576 1,145 Change in fair value of contingent consideration 385 — Stock-based compensation 347 268 Other 175 28 Deferred tax assets, gross 17,628 32,611 Valuation allowance (1,063 ) (1,346 ) Deferred tax assets, net $ 16,565 $ 31,265 Deferred tax liabilities: Prepaid insurance $ (66 ) $ (17 ) Other — (37 ) Deferred tax liabilities $ (66 ) $ (54 ) Total deferred income tax assets, net $ 16,499 $ 31,211 | |
Schedule of Effective Tax Rate Reconciliation | Effective Tax Rate Reconciliation The tax expense differs from the amount that would be computed by applying the statutory federal income tax rates of 21%, 35% and 35% for the years ended December 31, 2018 , 2017 and 2016 , respectively, to income before income taxes as a result of the following (amounts in thousands): Years Ended December 31, 2018 2017 2016 Tax on pre-tax book income (before reduction of noncontrolling interests) $ 17,151 $ 22,483 $ 17,693 Tax effect of non-controlled earnings (2,743 ) (3,630 ) (3,996 ) State tax expense, net 2,258 1,213 1,153 Change in federal statutory tax rate — 19,017 — Other 470 (52 ) 531 Total tax expense $ 17,136 $ 39,031 $ 15,381 Effective tax rate 21.0 % 60.8 % 30.4 % | |
Rollforward of Valuation Allowances | The rollforward of valuation allowance is as follows (amounts in thousands): Years Ended December 31, 2018 2017 Valuation allowance at beginning of the year $ 1,346 $ 1,147 Release of Colorado net operating loss valuation allowance — (8 ) Change in federal benefit tax rate - deferred — 240 Expiration of state net operating losses (283 ) (33 ) Valuation allowance at end of the year $ 1,063 $ 1,346 | |
Reconciliation of Uncertain Tax Positions | A reconciliation of the beginning and ending amount of uncertain tax positions for the year ended December 31, 2017 is as follows (in thousands): Year Ended December 31, 2017 Uncertain tax positions at beginning of year $ 249 Change related to Georgia state income taxes (249 ) Uncertain tax positions at end of year $ — |
Debt (Tables)
Debt (Tables) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Schedule of Long-term Debt | ines of credit outstanding, net of debt issuance costs, as of December 31, 2018 and 2017 consist of the following (in thousands): December 31, 2018 December 31, 2017 Revolving credit facility $ 46,500 $ 32,000 Unsecured revolving credit facility 155,500 75,000 Debt issuance costs, net of amortization (1,614 ) (1,227 ) Total borrowings on lines of credit, net $ 200,386 $ 105,773 | |
Schedule of Lines of Credit Outstanding | ines of credit outstanding, net of debt issuance costs, as of December 31, 2018 and 2017 consist of the following (in thousands): December 31, 2018 December 31, 2017 Revolving credit facility $ 46,500 $ 32,000 Unsecured revolving credit facility 155,500 75,000 Debt issuance costs, net of amortization (1,614 ) (1,227 ) Total borrowings on lines of credit, net $ 200,386 $ 105,773 Revolving Credit Facility On July 30, 2015, the Company entered into a revolving credit facility (the “Credit Facility”) with Inwood National Bank, which initially provided for up to $50.0 million . Amounts outstanding under the Credit Facility are secured by mortgages on real property and security interests in certain personal property (to the extent that such personal property is connected with the use and enjoyment of the real property) that is owned by certain of the Company’s subsidiaries. The entire unpaid principal balance and any accrued but unpaid interest is due and payable on the maturity date. Following several amendments, as of December 31, 2018 , the aggregate commitment amount was $75.0 million and the maturity date of the Credit Facility was May 1, 2022 . As of December 31, 2018 , letters of credit outstanding totaling $1.9 million reduced the aggregate maximum commitment amount to $73.1 million . As of December 31, 2018 , outstanding borrowings under the amended Credit Facility bear interest payable monthly at a floating rate per annum equal to the rate announced by Bank of America, N.A., from time to time, as its “Prime Rate” (the “Index”) with such adjustments to the interest rate being made on the effective date of any change in the Index, less 0.25%. Notwithstanding the foregoing, the interest may not, at any time, be less than 4% per annum or more than the lesser amount of 18% and the highest maximum rate allowed by applicable law. As of December 31, 2018 , the interest rate on outstanding borrowings under the Credit Facility was 5.25% per annum. As of December 31, 2018 , the amended Credit Facility was subject to a borrowing base limitation equal to the sum of 50% of the total value of land and 65% of the total value of lots owned by certain of the Company’s subsidiaries, each as determined by an independent appraiser, with the value of land being restricted from being more than 65% of the borrowing base. As of December 31, 2018 , the amended Credit Facility was also subject to a non-usage fee equal to 0.25% of the average unfunded amount of the commitment amount over a trailing 12 month period. Under the terms of the amended Credit Facility, the Company is required, among other things, to maintain minimum multiples of tangible net worth in excess of the outstanding Credit Facility balance, minimum interest coverage and maximum leverage. Management is not aware of any violations of these financial covenants under the Credit Facility as of December 31, 2018 . Fees and other debt issuance costs of $0.0 million , $0.2 million and $0.0 million were incurred during the years ended December 31, 2018 , 2017 and 2016 , respectively, associated with the Credit Facility amendments. These costs are deferred and reduce the carrying amount of debt in our consolidated balance sheets. The Company capitalizes these costs to inventory over the term of the Credit Facility using the straight-line method. Unsecured Revolving Credit Facility On December 15, 2015, the Company entered into a credit agreement (the “Credit Agreement”) with Citibank, N.A. and Credit Suisse AG, Cayman Islands Branch (“Credit Suisse”) as lenders, and Citibank, N.A. as administrative agent, providing for a senior, unsecured revolving credit facility with initial aggregate lending commitments of up to $40.0 million (the “Unsecured Revolving Credit Facility”). The Unsecured Revolving Credit Facility provides for interest rate options on advances at rates equal to either: (a) in the case of base rate advances, the highest of (i) Citibank’s base rate, (ii) the federal funds rate plus 0.5% , and (iii) the one-month LIBOR plus 1.0% , in each case plus 1.5% ; or (b) in the case of Eurodollar rate advances, the reserve adjusted LIBOR plus 2.5% . Interest on amounts borrowed under the Unsecured Revolving Credit Facility is payable in arrears on a monthly basis. As of December 31, 2018 , the interest rates on outstanding borrowings under the Unsecured Revolving Credit Facility ranged from 4.89% to 5.01% per annum. The Company pays the lenders a commitment fee on the amount of the unused commitments on a quarterly basis at a rate per annum equal to 0.45% . Outstanding borrowings under the Unsecured Revolving Credit Facility are subject to, among other things, a borrowing base. The borrowing base limitation is equal to the sum of: 100% of unrestricted cash in excess of $15.0 million ; 85% of the book value of model homes, construction in progress homes, completed sold and speculative homes (subject to certain limitations on the age and number of speculative homes and model homes); 65% of the book value of finished lots and land under development; and 50% of the book value of entitled land (subject to certain limitations on the value of entitled land and land under development as a percentage of the borrowing base). | |
Schedule of Minimum Principal Payments | The annual principal payments over the next five years under the lines of credit as of December 31, 2018 are (in thousands): 2019 $ — 2020 — 2021 155,500 2022 46,500 Total $ 202,000 | |
Notes Payable | ||
Debt Instrument [Line Items] | ||
Schedule of Long-term Debt | Notes payable to unrelated third parties outstanding as of December 31, 2018 and 2017 consist of the following (in thousands): December 31, 2018 December 31, 2017 Briar Ridge Investments, LTD $ — $ 9,000 Graham Mortgage Corporation — 926 Total notes payable $ — $ 9,926 Briar Ridge Investments, LTD On December 13, 2013, a subsidiary of the Company signed a promissory note for $9.0 million maturing on December 13, 2017, bearing interest at 6.0% collateralized by land purchased in Allen, Texas. In December 2016, the note was extended through December 31, 2018. The note was paid in full on June 5, 2018. Graham Mortgage Corporation On November 30, 2016, a subsidiary of the Company signed a promissory note for $1.2 million maturing on December 1, 2018, bearing interest at 3.0% per annum and collateralized by land located in Sunnyvale, Texas. The note was paid in full on December 3, 2018. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Activity | A summary of share-based awards activity during the years ended December 31, 2018 , 2017 and 2016 is as follows: Number of Shares (in thousands) Weighted Average Grant Date Fair Value per Share Nonvested, December 31, 2015 23 $ 8.73 Granted 123 $ 7.60 Vested (108 ) $ 7.87 Forfeited — $ — Nonvested, December 31, 2016 38 $ 7.51 Granted 229 $ 10.11 Vested (229 ) $ 9.66 Forfeited — $ — Nonvested, December 31, 2017 38 $ 10.25 Granted 140 $ 10.45 Vested (144 ) $ 10.03 Forfeited — $ — Nonvested, December 31, 2018 34 $ 12.00 |
Summary of Stock Option Activity | A summary of stock option activity during the year ended December 31, 2018 is as follows: Number of Shares (in thousands) Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Options outstanding, December 31, 2017 500 $ 7.49 Granted — — Exercised — — Forfeited — — Options outstanding, December 31, 2018 500 $ 7.49 5.82 $ — Options exercisable, December 31, 2018 400 $ 7.49 5.82 $ — |
Summary of Unvested Stock Options Activity | A summary of unvested stock option activity during the year ended December 31, 2018 is as follows: Number of Shares (in thousands) Weighted Average Per Share Grant Date Fair Value Unvested, December 31, 2017 200 $ 2.88 Granted — $ — Vested (100 ) $ 2.88 Forfeited — $ — Unvested, December 31, 2018 100 $ 2.88 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disaggregation of Revenue [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Disaggregation of Revenue The following reflects the disaggregation of revenue by primary geographic market, type of customer, product type, and timing of revenue recognition (in thousands): Years Ended December 31, 2018 2017 2016 Builder Operations Land Development Builder Operations Land Development Builder Operations Land Development Primary Geographic Market Central $ 281,868 $ 40,184 $ 224,670 $ 17,928 $ 206,831 $ 14,201 Southeast 297,025 4,570 214,850 802 168,990 963 Total revenues $ 578,893 $ 44,754 $ 439,520 $ 18,730 $ 375,821 $ 15,164 Type of Customer Homebuyers $ 578,893 $ — $ 439,520 $ — $ 375,821 $ — Homebuilders — 44,754 — 18,730 — 15,164 Total revenues $ 578,893 $ 44,754 $ 439,520 $ 18,730 $ 375,821 $ 15,164 Product Type Residential units $ 578,893 $ — $ 439,520 $ — $ 375,821 $ — Land and lots — 44,754 — 18,730 — 15,164 Total revenues $ 578,893 $ 44,754 $ 439,520 $ 18,730 $ 375,821 $ 15,164 Timing of Revenue Recognition Transferred at a point in time $ 571,177 $ 44,754 $ 435,644 $ 18,730 $ 365,164 $ 15,164 Transferred over time 7,716 — 3,876 — 10,657 — Total revenues $ 578,893 $ 44,754 $ 439,520 $ 18,730 $ 375,821 $ 15,164 |
Contract with Customer, Asset and Liability [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | Contract Balances Opening and closing contract balances included in customer and builder deposits on the consolidated balance sheets are as follows (in thousands): December 31, 2018 December 31, 2017 Customer and builder deposits $ 31,978 $ 21,447 The difference between the opening and closing balances of customer and builder deposits results from the timing difference between the customer’s payment of a deposit and the Company’s performance, impacted slightly by terminations of contracts. The amount of deposits on residential units and land and lots held as of the beginning of the period and recognized as revenue during the years ended December 31, 2018 and 2017 are as follows (in thousands): 2018 2017 Type of Customer Homebuyers $ 19,342 $ 9,880 Homebuilders 1,806 1,619 Total deposits recognized as revenue $ 21,148 $ 11,499 |
Revenue, Performance Obligation [Abstract] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | The aggregate amount of transaction price allocated to the remaining performance obligations on our land sale and lot option contracts is $84.1 million . The Company will recognize the remaining revenue when the lots are taken down, or upon closing for the sale of a land parcel, which is expected to occur as follows (in thousands): 2019 $ 42,618 2020 29,126 2021 12,335 Total $ 84,079 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Years Ended December 31, (in thousands) 2018 2017 2016 Revenues: (1) Builder operations Central $ 282,218 $ 224,670 $ 206,831 Southeast 301,595 214,850 169,241 Total builder operations 583,813 439,520 376,072 Land development 39,834 18,730 14,913 Total revenues $ 623,647 $ 458,250 $ 390,985 Gross profit (loss): Builder operations Central $ 61,882 $ 53,840 $ 51,013 Southeast 72,187 49,033 37,808 Total builder operations 134,069 102,873 88,821 Land development 9,334 5,454 4,600 Corporate and other (2) (13,073 ) (9,293 ) (5,659 ) Total gross profit $ 130,330 $ 99,034 $ 87,762 Income (loss) before taxes: Builder operations Central $ 37,535 $ 36,224 $ 34,939 Southeast 47,237 34,636 24,639 Total builder operations 84,772 70,860 59,578 Land development 6,155 4,320 3,611 Corporate and other (3) (9,256 ) (10,943 ) (12,635 ) Total income before taxes $ 81,671 $ 64,237 $ 50,554 Inventory: Builder operations Central $ 160,980 $ 111,271 $ 76,878 Southeast 159,616 99,613 90,859 Total builder operations 320,596 210,884 167,737 Land development 329,105 272,542 232,726 Corporate and other (4) 19,260 12,628 9,834 Total inventory $ 668,961 $ 496,054 $ 410,297 Goodwill: (5) Builder operations - Southeast $ 680 $ — $ — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 8 | 0 | 144 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The computation of basic and diluted net income attributable to Green Brick Partners, Inc. per share is as follows (in thousands, except per share amounts): Years Ended December 31, 2018 2017 2016 Net income attributable to Green Brick Partners, Inc. $ 51,623 $ 14,970 $ 23,756 Weighted-average number of shares outstanding — basic 50,652 49,597 48,879 Basic net income attributable to Green Brick Partners, Inc. per share $ 1.02 $ 0.30 $ 0.49 Weighted-average number of shares outstanding — basic 50,652 49,597 48,879 Dilutive effect of stock options and restricted stock awards 99 86 7 Weighted average number of shares outstanding — diluted 50,751 49,683 48,886 Diluted net income attributable to Green Brick Partners, Inc. per share $ 1.02 $ 0.30 $ 0.49 | ||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The following shares that could potentially dilute earnings per share in the future are not included in the determination of diluted net income attributable to Green Brick Partners, Inc. per common share (in thousands): Years Ended December 31, 2018 2017 2016 Antidilutive options to purchase common stock and restricted stock awards 8 — 144 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Schedule of Warranty Activity | Warranty activity, included in accrued expenses in our consolidated balance sheets, for 2018 , 2017 and 2016 consists of the following (in thousands): 2018 2017 2016 Beginning balance $ 2,083 $ 1,210 $ 474 Additions 2,579 1,936 1,399 Charges (1,682 ) (1,063 ) (663 ) Ending balance $ 2,980 $ 2,083 $ 1,210 | |
Schedule of Annual Minimum Operating Lease Payments | The future annual minimum lease payments under operating leases over the next five years as of December 31, 2018 are (in thousands): 2019 $ 1,263 2020 1,256 2021 1,011 2022 734 2023 558 Total $ 4,822 | |
Schedule of Expected Land and Lot Purchase Payments Under Option Agreements [Table Text Block] | If each option contract in place as of December 31, 2018 was exercised, expected purchase payments, including escalators, would be as follows (in thousands): 2019 $ 114,198 2020 58,751 2021 18,601 2022 1,680 Total $ 193,230 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summarized Unaudited Quarterly Results of Operations | Summarized unaudited quarterly results of operations for the years ended December 31, 2018 and 2017 are as follows (in thousands, except per share amounts): Year Ended December 31, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 129,163 $ 157,312 $ 152,052 $ 185,120 Gross profit 27,268 35,070 31,004 36,988 Net income attributable to Green Brick Partners, Inc. 11,203 14,869 12,197 13,354 Net income attributable to Green Brick Partners, Inc. per common share: (2) Basic $0.22 $0.29 $0.24 $0.26 Diluted $0.22 $0.29 $0.24 $0.26 Year Ended December 31, 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 100,734 $ 105,750 $ 114,342 $ 137,424 Gross profit 21,500 23,031 25,506 28,997 Net income (loss) attributable to Green Brick Partners, Inc. (1) 6,197 7,689 9,279 (8,195 ) Net income (loss) attributable to Green Brick Partners, Inc. per common share: (2) Basic $0.13 $0.16 $0.19 $(0.16) Diluted $0.13 $0.16 $0.19 $(0.16) (1) Net loss attributable to Green Brick Partners, Inc. in the fourth quarter is due to the remeasurement of our deferred tax assets as a result of the change in federal statutory tax rate which resulted in additional tax expense of $19.0 million . (2) Per share amounts for the four quarters do not add to per share amounts for the year due to rounding differences in quarterly amounts and due to the impact of differences between the quarterly and annual weighted average share calculations. |
Significant Accounting Polici_3
Significant Accounting Policies (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Line Items] | ||||
Allowance for doubtful accounts | $ 0 | |||
Asset Impairment Charges | 0 | |||
Earnest money deposits written-off during period | $ 700,000 | 200,000 | $ 200,000 | |
Deferred tax assets | 16,565,000 | 31,265,000 | ||
Deferred income tax assets, net | 16,499,000 | 31,211,000 | ||
Valuation allowance for deferred tax assets | (1,063,000) | (1,346,000) | (1,147,000) | |
Deferred tax asset related to net operating loss carryforwards | 432,000 | 14,078,000 | ||
Selling, general and administrative expense | $ 56,830,000 | $ 39,016,000 | 38,629,000 | |
Minimum | ||||
Accounting Policies [Line Items] | ||||
Community life cycle | 2 years | |||
Useful lives of assets | 1 year | |||
Maximum | ||||
Accounting Policies [Line Items] | ||||
Community life cycle | 6 years | |||
Useful lives of assets | 15 years | |||
Selling, General and Administrative Expenses | ||||
Accounting Policies [Line Items] | ||||
Advertising expense | $ 1,500,000 | $ 800,000 | $ 700,000 | |
Federal | ||||
Accounting Policies [Line Items] | ||||
Net operating loss carryforward | $ 2,000,000 | |||
Operating loss carryforward, expiration date | Dec. 31, 2029 | |||
State | ||||
Accounting Policies [Line Items] | ||||
Operating loss carryforward, expiration date | Dec. 31, 2023 |
Business Combination (Details)
Business Combination (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Apr. 26, 2018 | Jun. 30, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||||||||||||||||
Revenues | $ 185,120 | $ 152,052 | $ 157,312 | $ 129,163 | $ 137,424 | $ 114,342 | $ 105,750 | $ 100,734 | $ 623,647 | $ 458,250 | $ 390,985 | ||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ 81,671 | 64,237 | 50,554 | ||||||||||||||
GHO Homes [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest | $ 35,800 | ||||||||||||||||
Business Combination, Consideration Transferred, Liabilities Incurred | $ 500 | $ 600 | |||||||||||||||
Payments to Acquire Businesses, Gross | $ 33,200 | $ 2,000 | |||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 80.00% | 80.00% | 80.00% | ||||||||||||||
Business Combination, Integration Related Costs | $ 500 | ||||||||||||||||
Business Combination, Consideration Transferred | $ 42,200 | $ 44,600 | |||||||||||||||
Florida Based Controlled Builder [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 80.00% | 80.00% | 80.00% | ||||||||||||||
Previous Owner of GHO Homes [Member] | GHO Homes [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 20.00% | 20.00% | 20.00% | 20.00% | |||||||||||||
Residential Real Estate [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Revenues | $ 578,893 | 439,520 | 375,821 | ||||||||||||||
Individual Counterparty [Member] | Residential Real Estate [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Revenues | $ 578,893 | $ 439,520 | $ 375,821 | ||||||||||||||
Individual Counterparty [Member] | Residential Real Estate [Member] | GHO Homes [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Contract with Customer, Liability, Revenue Recognized | $ 8,200 |
Variable Interest Entities (Det
Variable Interest Entities (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2016USD ($) | |
Variable Interest Entity [Line Items] | ||
Equity Method Investment Board Seats | 3 | |
Variable Interest Entity, Consolidated, Assets, Not Pledged | $ 76.3 | $ 56.1 |
Inventories [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Assets, Not Pledged | 66.6 | 47.8 |
Cash [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Assets, Not Pledged | $ 0.7 | $ 0.9 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Equity Method Investment Board Seats | 2 | |
Number of Individuals Required to Give Approval of an Action to the Board of Managers | 1 | |
Dallas and Atlanta Based Controlled Builders [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Percentage of Voting Interest | 50.00% |
Investment in Unconsolidated _3
Investment in Unconsolidated Entity (Details) | Aug. 15, 2017USD ($)officerboard_seat$ / sharesshares | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($) |
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment Board Seats | 3 | ||||
Stock Issued During Period, Shares, Acquisitions | shares | 20,000 | 1,477,000 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||
Equity Method Investments | $ 16,878,000 | $ 20,269,000 | $ 16,878,000 | ||
Asset Impairment Charges | 0 | ||||
Goodwill | 0 | 680,000 | 0 | ||
Income (Loss) from Equity Method Investments | 7,259,000 | 2,746,000 | $ 0 | ||
Equity Method Investment, Summarized Financial Information, Revenue | 166,102,000 | 58,958,000 | |||
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss) | 17,880,000 | 13,989,000 | |||
Challenger Subsidiary [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment Board Seats | board_seat | 5 | ||||
Equity Method Investment Number of Officers | officer | 6 | ||||
Equity Method Investment, Ownership Percentage | 49.90% | ||||
Ownership Interest by Third Party | 50.10% | ||||
Stock Issued During Period, Shares, Acquisitions | shares | 1,497,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||||
EquityInterestIssuableinAcquisitionValueAssigned | $ 200,000 | ||||
BusinessAcquisitionPercentageofOptionalVotingInterestsToAcquire | 20.10% | ||||
EquityMethodInvestmentAcquisitionCosts | $ 241,000 | 300,000 | |||
Equity Method Investments | 15,100,000 | ||||
Goodwill | $ 5,100,000 | ||||
EquityMethodInvestmentSummarizedFinancialInformationCash | 14,584,000 | ||||
Equity Method Investment Board Seats Held | board_seat | 2 | ||||
equity method investments, considered transferred | $ 15,061,000 | ||||
EquityMethodInvestmentSummarizedFinancialInformationAccountsReceivable | 1,494,000 | 1,259,000 | 1,494,000 | ||
EquityMethodInvestmentSummarizedFinancialInformationInventory | 57,841,000 | 44,375,000 | 57,841,000 | ||
EquityMethodInvestmentSummarizedFinancialInformationOtherAssets | 3,132,000 | ||||
Equity Method Investment, Summarized Financial Information, Assets | 68,414,000 | 72,297,000 | 68,414,000 | ||
EquityMethodInvestmentSummarizedFinancialInformationAccountsPayable | 5,060,000 | 2,173,000 | 5,060,000 | ||
EquityMethodInvestmentSummarizedFinancialInformationAccruedExpensesandOtherLiabilities | 5,328,000 | ||||
EquityMethodInvestmentSummarizedFinancialInformationNotesPayable | 36,923,000 | 31,402,000 | 36,923,000 | ||
Equity Method Investment Summarized Financial Information, Equity | 11,811,000 | 17,741,000 | 11,811,000 | ||
Equity Method Investment, Summarized Financial Information, Liabilities and Equity | $ 68,414,000 | 72,297,000 | 68,414,000 | ||
Equity Method Investment, Summarized Financial Information, Cost of Sales | $ 148,222,000 | $ 44,969,000 | |||
Common Stock [Member] | Challenger Subsidiary [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Stock Issued During Period, Shares, Acquisitions | shares | 1,477,000 | ||||
Share Price | $ / shares | $ 9.90 | ||||
Stock Issued During Period, Value, Acquisitions | $ 14,622,000 | ||||
equity method investments, considered transferred | $ 14,863,000 | ||||
Holdbackshares [Member] | Challenger Subsidiary [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Stock Issued During Period, Shares, Acquisitions | shares | 20,000 | ||||
Share Price | $ / shares | $ 9.90 | ||||
Stock Issued During Period, Value, Acquisitions | $ 198,000 |
Property and Equipment (Summary
Property and Equipment (Summary of Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 9,362 | $ 2,053 |
Less: Accumulated depreciation | (4,672) | (1,249) |
Total property and equipment, net | 4,690 | 804 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 763 | 0 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 82 | 0 |
Model home furnishings and capitalized sales office costs | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 5,218 | 0 |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 427 | 399 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,692 | 741 |
Computers and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 901 | 903 |
Vehicles and field trailers | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 279 | $ 10 |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 2.7 | $ 0.3 | $ 0.3 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current expense (benefit): | |||
Federal | $ (569) | $ 999 | $ 158 |
State | 2,993 | 1,733 | 2,076 |
Total current expense | 2,424 | 2,732 | 2,234 |
Deferred expense (benefit): | |||
Federal | 15,023 | 36,569 | 13,146 |
State | (311) | (270) | 1 |
Total deferred expense | 14,712 | 36,299 | 13,147 |
Total income tax expense | $ 17,136 | $ 39,031 | $ 15,381 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | |||
Uncertain income tax positions | $ 0 | $ 249 | |
Basis in partnerships | $ 10,947 | 13,377 | |
Deferred tax assets | 17,628 | 32,611 | |
Deferred Tax Assets, Valuation Allowance | $ 1,063 | 1,346 | $ 1,147 |
Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforward | 2,000 | ||
Operating loss carryforward, expiration date | Dec. 31, 2029 | ||
State | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforward, expiration date | Dec. 31, 2023 | ||
Minnesota and Nebraska | State | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforward | $ 13,700 |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | |||
Stock-based compensation | $ 347 | $ 268 | |
Federal net operating loss carryover | 432 | 14,078 | |
State net operating loss carryover | 1,063 | 1,353 | |
Basis in partnerships | 10,947 | 13,377 | |
Inventory | 1,521 | 944 | |
Accrued expenses | 2,182 | 1,418 | |
Alternative minimum tax credit carryover | 576 | 1,145 | |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Contingencies | 385 | 0 | |
Other | 175 | 28 | |
Deferred tax assets, gross | 17,628 | 32,611 | |
Valuation allowance | (1,063) | (1,346) | $ (1,147) |
Deferred tax assets, net | 16,565 | 31,265 | |
Deferred tax liabilities: | |||
Prepaid insurance | (66) | (17) | |
Other | 0 | (37) | |
Deferred tax liabilities | $ (66) | $ (54) |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | $ 17,151 | $ 22,483 | $ 17,693 |
Effective Income Tax Rate Reconciliation, Equity in Earnings (Losses) of Unconsolidated Subsidiary, Amount | (2,743) | (3,630) | (3,996) |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | 2,258 | 1,213 | 1,153 |
Income tax expense (benefit) related to the Tax Act | 0 | 19,017 | 0 |
Total income tax expense | 17,136 | 39,031 | 15,381 |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | $ 470 | $ (52) | $ 531 |
Income Taxes (Rollforward of Va
Income Taxes (Rollforward of Valuation Allowances) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Valuation allowance at beginning of the year | $ 1,346 | $ 1,147 |
Release of Colorado net operating loss valuation allowance | 0 | (8) |
Change in federal benefit tax rate - deferred | 0 | 240 |
Expiration of state net operating losses | (283) | (33) |
Valuation allowance at end of the year | $ 1,063 | $ 1,346 |
Income Taxes (Uncertain Tax Pos
Income Taxes (Uncertain Tax Positions) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Balance at beginning of period | $ 249 |
Change related to Georgia state income taxes | (249) |
Balance at end of period | $ 0 |
Debt (Schedule of Long-term Deb
Debt (Schedule of Long-term Debt - Term Loan Facility) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Long-term Line of Credit | $ 200,386 | $ 105,773 |
Shares Paid for Tax Withholding for Share Based Compensation | 39,228 | 63,057 |
Notes payable | $ 0 | $ 9,926 |
Debt Issuance Costs, Net | $ 1,614 | $ 1,227 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Thousands | May 03, 2016 | Dec. 15, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 30, 2015 |
Debt Instrument [Line Items] | |||||
Notes payable | $ 0 | $ 9,926 | |||
Long-term Line of Credit | 200,386 | 105,773 | |||
Debt Issuance Costs, Net | 1,614 | 1,227 | |||
Inwood National Bank | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 75,000 | $ 50,000 | |||
Inwood National Bank | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | ||||
MaximumValueOfLandUsedWhenCalculatingBorrowingBase | 65.00% | ||||
BorrowingBaseLimitationTotalValueOfland | 50.00% | ||||
Long-term Line of Credit | 46,500 | $ 32,000 | |||
Citibank, N.A. and Credit Suisse AG, Cayman Islands Branch [Member] | Unsecured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||||
Citibank, N.A. and Credit Suisse AG, Cayman Islands Branch [Member] | Unsecured Revolving Credit Facility [Member] | Unsecured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Line of Credit | $ 40,000 | ||||
Citibank, N.A., Credit Suisse AG, Cayman Islands Branch, Flagstar Bank, JP Morgan Chase and Chemical Bank [Member] | Unsecured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.45% | ||||
Unrestricted Cash Borrowing Base Limitation | 100.00% | ||||
Citibank, N.A., Credit Suisse AG, Cayman Islands Branch, Flagstar Bank, JP Morgan Chase and Chemical Bank [Member] | Unsecured Revolving Credit Facility [Member] | Unsecured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Line of Credit | 215,000 | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 275,000 | ||||
Subsidiary of JBGL | Inwood National Bank | Minimum | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 4.00% | ||||
Subsidiary of JBGL | Inwood National Bank | Maximum | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 18.00% | ||||
Federal Funds Rate [Domain] | Citibank, N.A. and Credit Suisse AG, Cayman Islands Branch [Member] | Unsecured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||
London Interbank Offered Rate (LIBOR) [Member] | Citibank, N.A. and Credit Suisse AG, Cayman Islands Branch [Member] | Unsecured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||||
London Interbank Offered Rate (LIBOR) [Member] | Citibank, N.A. and Credit Suisse AG, Cayman Islands Branch [Member] | Unsecured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% |
Debt (Schedule of Lines of Cred
Debt (Schedule of Lines of Credit Outstanding) (Details) - USD ($) $ in Thousands | May 03, 2016 | Dec. 15, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 30, 2015 |
Line of Credit Facility [Line Items] | |||||
Long-term Line of Credit | $ 200,386 | $ 105,773 | |||
Debt Issuance Costs, Net | (1,614) | (1,227) | |||
Inwood National Bank | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 75,000 | $ 50,000 | |||
Line of Credit Facility, Interest Rate at Period End | 5.25% | ||||
Inwood National Bank | Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Long-term Line of Credit | $ 46,500 | 32,000 | |||
BorrowingBaseLimitationTotalValueOfland | 50.00% | ||||
BorrowingBaseLimitationTotalValueOfLotsOwned | 65.00% | ||||
MaximumValueOfLandUsedWhenCalculatingBorrowingBase | 65.00% | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | ||||
Citibank, N.A., Credit Suisse AG, Cayman Islands Branch, Flagstar Bank, JP Morgan Chase and Chemical Bank [Member] | Unsecured Debt [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Long-term Line of Credit | $ 155,500 | $ 75,000 | |||
Minimum | Citibank, N.A., Credit Suisse AG, Cayman Islands Branch, Flagstar Bank, JP Morgan Chase and Chemical Bank [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Interest Rate at Period End | 4.89% | ||||
Minimum | Subsidiary of JBGL | Inwood National Bank | Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Stated interest rate | 4.00% | ||||
Maximum | Citibank, N.A., Credit Suisse AG, Cayman Islands Branch, Flagstar Bank, JP Morgan Chase and Chemical Bank [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Interest Rate at Period End | 5.01% | ||||
Maximum | Subsidiary of JBGL | Inwood National Bank | Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Stated interest rate | 18.00% | ||||
Unsecured Debt [Member] | Citibank, N.A., Credit Suisse AG, Cayman Islands Branch, Flagstar Bank, JP Morgan Chase and Chemical Bank [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.45% | ||||
Unrestricted Cash Borrowing Base Limitation | 100.00% | ||||
Borrowing Base Limitation for Unrestricted Cash | $ 15,000 | ||||
Book Value of Model Homes Borrowing Base | 85.00% | ||||
Book Value of Finished Lots and Land Under Development | 65.00% | ||||
Book Value of Entitled Land | 50.00% |
Debt (Schedule of Long-term D_2
Debt (Schedule of Long-term Debt - Notes Payable) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 30, 2016 | Dec. 13, 2013 | |
Debt Instrument [Line Items] | |||||
Notes payable | $ 0 | $ 9,926 | |||
Repayments of Notes Payable | 10,226 | 1,022 | $ 1,870 | ||
Notes Payable | Briar Ridge Investments, LTD | |||||
Debt Instrument [Line Items] | |||||
Notes payable | 0 | ||||
Subsidiary of JBGL | Notes Payable | Briar Ridge Investments, LTD | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 6.00% | ||||
Debt instrument, face amount | 9,000 | ||||
Subsidiary of JBGL | Notes Payable | Graham Mortgage Corporation [Member] | |||||
Debt Instrument [Line Items] | |||||
Notes payable | $ 0 | $ 926 | $ 1,200 | ||
Stated interest rate | 3.00% |
Debt (Schedule of Minimum Princ
Debt (Schedule of Minimum Principal Payments) (Details) - Line of Credit $ in Thousands | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | |
2,018 | $ 0 |
2,019 | 0 |
2,020 | 155,500 |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 46,500 |
Total | $ 202,000 |
Stockholders_ equity Stockholde
Stockholders’ equity Stockholders equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 27, 2014 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Class of Stock [Line Items] | |||||||
Common stock, shares authorized (in shares) | 100,000,000 | ||||||
Number of shares authorized to be repurchased | 1,000,000 | ||||||
Stock repurchased in period (in shares) | 0 | ||||||
Treasury Stock, Shares, Acquired | 136,756 | 136,756 | |||||
Treasury Stock, Value, Acquired, Cost Method | $ 1,000 | $ 981 | |||||
Preferred Stock, Shares Authorized | 5,000,000 | ||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | ||||||
Preferred Stock, Shares Outstanding | 0 | ||||||
Common stock, par value (in dollars per share) | $ 0.01 | ||||||
Common Stock, Shares, Issued | 50,719,884 | 50,719,884 | 50,598,901 | 48,955,909 | 48,833,323 | ||
Common Stock, Shares, Outstanding | 50,583,128 | 50,583,128 | |||||
Stock Issued During Period, Shares, Acquisitions | 20,000 | 1,477,000 | |||||
Preferred Share Purchase Right | |||||||
Class of Stock [Line Items] | |||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | ||||||
Preferred share purchase rights dividend (shares) | 1 | ||||||
Exercise price of rights (USD per share) | $ 30 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) | Oct. 27, 2014shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)employeenon-employee$ / sharesshares | Dec. 31, 2016USD ($)$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum amount to be paid to individual pursuant to cash bonus award | $ | $ 2,000,000 | |||
Shares Paid for Tax Withholding for Share Based Compensation | (39,228) | (63,057) | ||
Shares granted | 0 | |||
Per share exercise price | $ / shares | $ 7.49 | $ 7.49 | ||
Expiration period (in years) | 10 years | |||
Payments Related to Tax Withholding for Share-based Compensation | $ | $ (412,000) | $ (586,000) | $ 0 | |
Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Service period | 5 years | |||
Stock Issued During Period, Value, Stock Options Exercised | $ | $ 0 | |||
2014 Equity Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of awards granted after expiration date | 0 | |||
Number of shares authorized and reserved for issuance | 2,350,956 | |||
Number of shares available for grant | 1,816,768 | |||
Shares granted | 0 | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unamortized share-based compensation expense | $ | $ 200,000 | |||
Unamortized share-based compensation expense, weighted average period of recognition | 5 months | |||
Equity Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unamortized share-based compensation expense | $ | $ 200,000 | |||
Unamortized share-based compensation expense, weighted average period of recognition | 10 months | |||
Executive Officers | 2014 Equity Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number eligible for awards | employee | 4 | |||
Non-employee Directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of amount of retainer fee deferred (up to) | 100.00% | |||
Non-employee Directors | 2014 Equity Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number eligible for awards | non-employee | 6 | |||
Officer [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of awards vested in period | 100.00% | |||
Common Stock | Chief Executive Officer | Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 5 years |
Share-Based Compensation (Sched
Share-Based Compensation (Schedule of Share-based Compensation, Activity) (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 34 | 38 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 12 | $ 10.25 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 10.45 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 140 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (144) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 10.03 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 0 |
Share-Based Compensation (Summa
Share-Based Compensation (Summary of Stock Option Activity) (Details) | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options outstanding, beginning balance (in shares) | shares | 500,000 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Options outstanding, ending balance (in shares) | shares | 500,000 |
Options exercisable (in shares) | shares | 400,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Options outstanding, beginning balance (in dollars per share) | $ / shares | $ 7.49 |
Granted (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Options outstanding, ending balance (in dollars per share) | $ / shares | 7.49 |
Options exercisable (in dollars per share) | $ / shares | $ 7.49 |
Options outstanding, weighted average remaining life (in years) | 5 years 9 months 26 days |
Options exercisable, weighted average remaining life (in years) | 5 years 9 months 26 days |
Options outstanding, aggregate intrinsic value | $ | $ 0 |
Options exercisable, aggregate intrinsic value | $ | 0 |
Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Issued During Period, Value, Stock Options Exercised | $ | $ 0 |
Share-Based Compensation (Sum_2
Share-Based Compensation (Summary of Unvested Stock Options Activity) (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | ||
Unvested, beginning balance (in shares) | 200 | |
Granted (in shares) | 0 | |
Vested (in shares) | (100) | |
Forfeited (in shares) | 0 | |
Unvested, ending balance (in shares) | 100 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Unvested, beginning balance (in dollars per share) | $ 2.88 | |
Granted (in dollars per share) | $ 0 | |
Vested (in dollars per share) | 2.88 | |
Forfeited (in dollars per share) | 0 | |
Unvested, ending balance (in dollars per share) | $ 2.88 |
Share-Based Compensation (Sch_2
Share-Based Compensation (Schedule of Stock Options, Valuation Assumptions) (Details) | 12 Months Ended |
Dec. 31, 2015$ / shares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Weighted Average Per Share Grant Date Fair Value | $ 0 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) | 3 Months Ended | 8 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Apr. 26, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||||
Contract with Customer, Performance Obligation Satisfied in Previous Period | $ 0 | ||||||||||||
Revenue, Remaining Performance Obligation, Amount | $ 84,100,000 | $ 84,100,000 | 84,100,000 | ||||||||||
Revenues | 185,120,000 | $ 152,052,000 | $ 157,312,000 | $ 129,163,000 | $ 137,424,000 | $ 114,342,000 | $ 105,750,000 | $ 100,734,000 | 623,647,000 | $ 458,250,000 | $ 390,985,000 | ||
Revenue, Performance Obligation [Abstract] | |||||||||||||
Revenue, Remaining Performance Obligation, Amount | $ 84,100,000 | 84,100,000 | $ 84,100,000 | ||||||||||
Revenue, Practical Expedient [Abstract] | |||||||||||||
Revenue, Practical Expedient, Remaining Performance Obligation, Description | <div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our contracts with homebuyers have a duration of less than one year. As such, the Company uses the practical expedient as allowed under ASC 606 and has not disclosed the transaction price allocated to remaining performance obligations as of the end of the reporting period.</font></div></div>" id="sjs-K10"><div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our contracts with homebuyers have a duration of less than one year. As such, the Company uses the practical expedient as allowed under ASC 606 and has not disclosed the transaction price allocated to remaining performance obligations as of the end of the reporting period.</font></div></div> | ||||||||||||
Residential Real Estate [Member] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Revenues | $ 578,893,000 | 439,520,000 | 375,821,000 | ||||||||||
Residential Real Estate [Member] | Individual Counterparty [Member] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Revenues | 578,893,000 | 439,520,000 | 375,821,000 | ||||||||||
Residential Real Estate [Member] | 1531 Operative Builders [Member] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Revenues | 0 | 0 | 0 | ||||||||||
Residential Real Estate [Member] | Transferred at Point in Time [Member] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Revenues | 571,177,000 | 435,644,000 | 365,164,000 | ||||||||||
Residential Real Estate [Member] | Transferred over Time [Member] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Revenues | 7,716,000 | 3,876,000 | 10,657,000 | ||||||||||
Residential Real Estate [Member] | Central [Domain] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Revenues | 281,868,000 | 224,670,000 | 206,831,000 | ||||||||||
Residential Real Estate [Member] | Southeast [Domain] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Revenues | 297,025,000 | 214,850,000 | 168,990,000 | ||||||||||
Real Estate, Other [Member] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Revenues | 44,754,000 | 18,730,000 | 15,164,000 | ||||||||||
Real Estate, Other [Member] | Individual Counterparty [Member] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Revenues | 0 | 0 | 0 | ||||||||||
Real Estate, Other [Member] | 1531 Operative Builders [Member] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Revenues | 44,754,000 | 18,730,000 | 15,164,000 | ||||||||||
Real Estate, Other [Member] | Transferred at Point in Time [Member] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Revenues | 44,754,000 | 18,730,000 | 15,164,000 | ||||||||||
Real Estate, Other [Member] | Transferred over Time [Member] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Revenues | 0 | 0 | 0 | ||||||||||
Real Estate, Other [Member] | Central [Domain] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Revenues | 40,184,000 | 17,928,000 | 14,201,000 | ||||||||||
Real Estate, Other [Member] | Southeast [Domain] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Revenues | 4,570,000 | 802,000 | 963,000 | ||||||||||
6552 Land Subdividers and Developers (No Cemeteries) [Member] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Revenues | 39,834,000 | 18,730,000 | 14,913,000 | ||||||||||
6552 Land Subdividers and Developers (No Cemeteries) [Member] | Residential Real Estate [Member] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Revenues | 0 | 0 | 0 | ||||||||||
Home Building [Member] | Central [Domain] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Revenues | 282,218,000 | 224,670,000 | 206,831,000 | ||||||||||
Home Building [Member] | Southeast [Domain] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Revenues | 301,595,000 | 214,850,000 | 169,241,000 | ||||||||||
Home Building [Member] | Real Estate, Other [Member] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Revenues | $ 0 | $ 0 | $ 0 | ||||||||||
GHO Homes [Member] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contract With Customer, Refund Liability | $ 9,100,000 | ||||||||||||
GHO Homes [Member] | Residential Real Estate [Member] | Individual Counterparty [Member] | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Contract with Customer, Liability, Revenue Recognized | $ 8,200,000 |
Segment Information (Details)
Segment Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 185,120,000 | $ 152,052,000 | $ 157,312,000 | $ 129,163,000 | $ 137,424,000 | $ 114,342,000 | $ 105,750,000 | $ 100,734,000 | $ 623,647,000 | $ 458,250,000 | $ 390,985,000 |
Gross profit | 36,988,000 | $ 31,004,000 | $ 35,070,000 | $ 27,268,000 | 28,997,000 | $ 25,506,000 | $ 23,031,000 | $ 21,500,000 | 130,330,000 | 99,034,000 | 87,762,000 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 81,671,000 | 64,237,000 | 50,554,000 | ||||||||
Inventory, Real Estate | 668,961,000 | 496,054,000 | 668,961,000 | 496,054,000 | 410,297,000 | ||||||
Land development | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Income before taxes, land development | 6,155,000 | 4,320,000 | 3,611,000 | ||||||||
Inventory, Real Estate | 329,105,000 | 272,542,000 | 329,105,000 | 272,542,000 | 232,726,000 | ||||||
6552 Land Subdividers and Developers (No Cemeteries) [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 39,834,000 | 18,730,000 | 14,913,000 | ||||||||
Gross profit, land development | 9,334,000 | 5,454,000 | 4,600,000 | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross profit, builder operations | (134,069,000) | (102,873,000) | (88,821,000) | ||||||||
Operating Segments | TEXAS | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross profit, builder operations | (61,882,000) | (53,840,000) | (51,013,000) | ||||||||
Income before taxes, builder operations | 37,535,000 | 36,224,000 | 34,939,000 | ||||||||
Inventory, Real Estate | 160,980,000 | 111,271,000 | 160,980,000 | 111,271,000 | 76,878,000 | ||||||
Operating Segments | GEORGIA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross profit, builder operations | (72,187,000) | (49,033,000) | (37,808,000) | ||||||||
Income before taxes, builder operations | 47,237,000 | 34,636,000 | 24,639,000 | ||||||||
Inventory, Real Estate | 159,616,000 | 99,613,000 | 159,616,000 | 99,613,000 | 90,859,000 | ||||||
Operating Segments | Corporate and Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross profit, builder operations | (13,073,000) | (9,293,000) | (5,659,000) | ||||||||
Income before taxes, builder operations | (9,256,000) | (10,943,000) | (12,635,000) | ||||||||
Inventory, Real Estate | $ 19,260,000 | $ 12,628,000 | 19,260,000 | 12,628,000 | 9,834,000 | ||||||
Central [Domain] | Home Building [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 282,218,000 | 224,670,000 | 206,831,000 | ||||||||
Southeast [Domain] | Home Building [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 301,595,000 | 214,850,000 | 169,241,000 | ||||||||
Real Estate, Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 44,754,000 | 18,730,000 | 15,164,000 | ||||||||
Real Estate, Other [Member] | Home Building [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Real Estate, Other [Member] | Central [Domain] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 40,184,000 | 17,928,000 | 14,201,000 | ||||||||
Real Estate, Other [Member] | Southeast [Domain] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 4,570,000 | $ 802,000 | $ 963,000 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | ||
Company match contribution to 401(k) plan | $ 0.6 | $ 0.5 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net Income (Loss) Attributable to Parent | $ 13,354 | $ 12,197 | $ 14,869 | $ 11,203 | $ (8,195) | $ 9,279 | $ 7,689 | $ 6,197 | $ 51,623 | $ 14,970 | $ 23,756 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 99 | 86 | 7 | ||||||||
Weighted Average Number of Shares Outstanding, Basic | 50,652 | 49,597 | 48,879 | ||||||||
Earnings Per Share, Basic | $ 0.26 | $ 0.24 | $ 0.29 | $ 0.22 | $ (0.16) | $ 0.19 | $ 0.16 | $ 0.13 | $ 1.02 | $ 0.30 | $ 0.49 |
Weighted Average Number of Shares Outstanding, Diluted | 50,751 | 49,683 | 48,886 | ||||||||
Earnings Per Share, Diluted | $ 0.26 | $ 0.24 | $ 0.29 | $ 0.22 | $ (0.16) | $ 0.19 | $ 0.16 | $ 0.13 | $ 1.02 | $ 0.30 | $ 0.49 |
Related Party Transactions (Det
Related Party Transactions (Details) | Jun. 10, 2016USD ($)townhomeLots | Mar. 01, 2016USD ($) | Feb. 28, 2017USD ($) | Jun. 30, 2016USD ($)Lots | Nov. 30, 2015USD ($)townhomeLots | Dec. 31, 2017USD ($)board_seatLots | Jun. 30, 2017USD ($)Lots | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)board_seatLots | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2018USD ($) | Mar. 31, 2016 | Mar. 30, 2016townhomeLots | Sep. 30, 2015townhomeLots |
Related Party Transaction [Line Items] | |||||||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 16,691,000 | $ 17,281,000 | $ 16,691,000 | $ 16,913,000 | $ 12,323,000 | ||||||||||
Centre Living | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 50.00% | 50.00% | |||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 50.00% | 50.00% | |||||||||||||
Percentage of Voting Interest | 51.00% | 51.00% | |||||||||||||
PercentofCentreLivingOperationsConsolidated | 100.00% | ||||||||||||||
Academy Street [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
CapitalContributionsMade | $ 500,000 | 11,200,000 | |||||||||||||
Related Party Transaction, Amounts of Transaction | 3,300,000 | 11,500,000 | |||||||||||||
Proceeds from Distributions Received from Real Estate Partnerships | $ 2,700,000 | 9,200,000 | |||||||||||||
Selling, General and Administrative Expenses | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Rent expense | 1,200,000 | 900,000 | 700,000 | ||||||||||||
Suwanee Station [Member] | The Providence Group | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Total estimated Capital Contributions | $ 2,500,000 | $ 2,500,000 | |||||||||||||
BoardSeatsAvailable | board_seat | 3 | 3 | |||||||||||||
CapitalContributionsMade | $ 700,000 | 1,800,000 | |||||||||||||
PaymentsForCapitalContributions | $ 400,000 | 900,000 | |||||||||||||
BoardSeatsHeld | board_seat | 2 | 2 | |||||||||||||
Number of lots purchased | townhome | 73 | ||||||||||||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||||||||||||
EquityMethodInvestment,OwnershipPercentagbyPartner | 50.00% | ||||||||||||||
The Parc at Cogburn [Member] | The Providence Group | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Number of townhomes in community | townhome | 19 | ||||||||||||||
Number of lots purchased | Lots | 19 | 11 | |||||||||||||
Payments to acquire residential real estate | $ 1,000,000 | 300,000 | 1,800,000 | ||||||||||||
Academy Street [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
PaymentsForCapitalContributions | $ 400,000 | $ 9,000,000 | |||||||||||||
Academy Street [Member] | The Providence Group | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
CapitalContributionsMade | $ 11,700,000 | ||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 80.00% | 80.00% | |||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 20.00% | ||||||||||||||
Number of lots purchased | Lots | 83 | ||||||||||||||
Glens at Sugarloaf [Member] | The Providence Group | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Number of townhomes in community | townhome | 92 | 80 | |||||||||||||
Number of lots purchased | Lots | 12 | ||||||||||||||
Payments for deposits on real estate acquisitions | $ 0 | ||||||||||||||
Payments to acquire residential real estate | $ 4,800,000 | $ 1,000,000 | |||||||||||||
Dunwoody Towneship [Member] | The Providence Group | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Number of townhomes in community | townhome | 40 | ||||||||||||||
Number of lots purchased | Lots | 14 | 26 | 26 | ||||||||||||
Payments to acquire residential real estate | $ 1,800,000 | $ 3,300,000 | |||||||||||||
Developed Lots [Member] | Centre Living | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
ContractPriceEmployeeDiscountPremium | 13.00% | ||||||||||||||
Number of lots purchased | Lots | 1 | ||||||||||||||
Proceeds from Sale of Real Estate | $ 400,000 | ||||||||||||||
Cost of Land and Lots Sales | $ 300,000 | ||||||||||||||
Development in Process | $ 600,000 | $ 600,000 | |||||||||||||
townhome [Member] | Officer [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
ContractPriceEmployeeDiscountPremium | 13.00% | ||||||||||||||
Richard A. Costello [Member] | Centre Living | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Proceeds from Sale of Real Estate | 500,000 | ||||||||||||||
Related Party Deposit Liabilities | $ 100,000 | ||||||||||||||
Jed Dolson [Member] | Centre Living | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Proceeds from Sale of Real Estate | $ 500,000 | ||||||||||||||
Related Party Deposit Liabilities | $ 100,000 | ||||||||||||||
GHO Homes [Member] | Office Space Lease Agreements [Member] | Affiliated Entity [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Due to Related Parties | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($)lot | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2018USD ($)lot | |
Operating Leased Assets [Line Items] | ||||
Letters of credit outstanding | $ 0.2 | $ 2.2 | ||
Lots under purchase options | lot | 1,724 | 1,843 | ||
Selling, General and Administrative Expenses | ||||
Operating Leased Assets [Line Items] | ||||
Rent expense | $ 1.2 | $ 0.9 | $ 0.7 |
Commitments and Contingencies_3
Commitments and Contingencies (Schedule of Warranty Activity) (Details) - Accrued Expenses - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Beginning balance | $ 2,083 | $ 1,210 | $ 474 |
Additions | 2,579 | 1,936 | 1,399 |
Charges | (1,682) | (1,063) | (663) |
Ending balance | $ 2,980 | $ 2,083 | $ 1,210 |
Commitments and Contingencies_4
Commitments and Contingencies (Schedule of Annual Minimum Operating Lease Payments) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 1,263 |
2,019 | 1,256 |
2,020 | 1,011 |
2,021 | 734 |
2,023 | 558 |
Total | $ 4,822 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Land and Lot Option Contracts) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 114,198 |
2,019 | 58,751 |
2,020 | 1,680 |
Total expected purchase payments | $ 193,230 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 185,120 | $ 152,052 | $ 157,312 | $ 129,163 | $ 137,424 | $ 114,342 | $ 105,750 | $ 100,734 | $ 623,647 | $ 458,250 | $ 390,985 |
Gross profit | 36,988 | 31,004 | 35,070 | 27,268 | 28,997 | 25,506 | 23,031 | 21,500 | 130,330 | 99,034 | 87,762 |
Net income attributable to Green Brick Partners, Inc. | $ 13,354 | $ 12,197 | $ 14,869 | $ 11,203 | $ (8,195) | $ 9,279 | $ 7,689 | $ 6,197 | $ 51,623 | $ 14,970 | $ 23,756 |
Net income attributable to Green Brick Partners, Inc. per common share: (2) | |||||||||||
Earnings Per Share, Basic | $ 0.26 | $ 0.24 | $ 0.29 | $ 0.22 | $ (0.16) | $ 0.19 | $ 0.16 | $ 0.13 | $ 1.02 | $ 0.30 | $ 0.49 |
Earnings Per Share, Diluted | $ 0.26 | $ 0.24 | $ 0.29 | $ 0.22 | $ (0.16) | $ 0.19 | $ 0.16 | $ 0.13 | $ 1.02 | $ 0.30 | $ 0.49 |
Uncategorized Items - grbk-2018
Label | Element | Value |
Restricted Cash | us-gaap_RestrictedCash | $ 2,568,000 |