Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Mar. 31, 2014 | |
Document Information [Line Items] | ' |
Document Type | '10-Q |
Amendment Flag | 'false |
Document Period End Date | 31-Mar-14 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q1 |
Entity Registrant Name | 'SHEA HOMES LIMITED PARTNERSHIP |
Entity Central Index Key | '0001531744 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 0 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Assets | ' | ' | ' | ' |
Cash and cash equivalents | $104,775 | $206,205 | $251,478 | $279,756 |
Restricted cash | 996 | 1,189 | ' | ' |
Accounts and other receivables, net | 153,845 | 147,499 | ' | ' |
Receivables from related parties, net | 21,988 | 32,350 | ' | ' |
Inventory | 1,132,196 | 1,013,272 | ' | ' |
Investments in unconsolidated joint ventures | 52,535 | 47,748 | ' | ' |
Other assets, net | 57,112 | 57,070 | ' | ' |
Total assets | 1,523,447 | 1,505,333 | ' | ' |
Liabilities: | ' | ' | ' | ' |
Notes payable | 752,092 | 751,708 | ' | ' |
Payables to related parties | 5,599 | 21 | ' | ' |
Accounts payable | 44,605 | 62,346 | ' | ' |
Other liabilities | 288,551 | 245,801 | ' | ' |
Total liabilities | 1,090,847 | 1,059,876 | ' | ' |
SHLP equity: | ' | ' | ' | ' |
Owners' equity | 427,235 | 440,268 | ' | ' |
Accumulated other comprehensive income | 4,967 | 4,788 | ' | ' |
Total SHLP equity | 432,202 | 445,056 | ' | ' |
Non-controlling interests | 398 | 401 | ' | ' |
Total equity | 432,600 | 445,457 | 326,214 | 319,247 |
Total liabilities and equity | $1,523,447 | $1,505,333 | ' | ' |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Revenues | $180,115 | $134,960 | ||
Cost of sales | -135,258 | -103,424 | ||
Gross margin | 44,857 | 31,536 | ||
Selling expenses | -11,740 | -10,154 | ||
General and administrative expenses | -15,304 | -11,957 | ||
Equity in income (loss) from unconsolidated joint ventures | 406 | -632 | ||
Gain on reinsurance transaction | 1,345 | 648 | ||
Interest expense | -118 | [1] | -3,433 | [1] |
Other income (expense), net | -473 | 770 | ||
Income before income taxes | 18,973 | 6,778 | ||
Income tax benefit (expense) | -7,678 | 59 | ||
Net income | 11,295 | 6,837 | ||
Less: Net loss attributable to non-controlling interests | 3 | 1 | ||
Net income attributable to SHLP | $11,298 | $6,838 | ||
[1] | For the three-months ended March 31, 2014, qualifying assets exceeded debt, therefore no interest on the Secured Notes was expensed; interest expense represents fees charged on the unused revolving credit facility that is not considered a cost of borrowing and is not capitalized. For the three months ended March 31, 2013, assets qualifying for interest capitalization were less than debt; therefore, non-qualifying interest was expensed. |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net income | $11,295 | $6,837 |
Other comprehensive income, before tax | ' | ' |
Unrealized investment holding gains during the year | 296 | 250 |
Less: Reclassification adjustments for investment gains included in net income | 0 | -37 |
Comprehensive income, before tax | 11,591 | 7,050 |
Income tax expense | -117 | -83 |
Comprehensive income, net of tax | 11,474 | 6,967 |
Less: Comprehensive loss attributable to non-controlling interests | 3 | 1 |
Comprehensive income attributable to SHLP | $11,477 | $6,968 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Changes in Equity (USD $) | Total | Members Equity | Accumulated Other Comprehensive Income (Loss) | Parent | Noncontrolling Interest | Limited Partner | Limited Partner | Limited Partner | General Partner | |
In Thousands, unless otherwise specified | Series B Preferred Stock | Series D Preferred Stock | Common Stock | Common Stock | ||||||
Beginning Balance at Dec. 31, 2012 | $319,247 | $314,321 | $4,517 | $318,838 | $409 | $173,555 | $138,413 | $1,863 | $490 | |
Comprehensive income (loss): | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net income (loss) | 6,837 | 6,838 | 0 | 6,838 | -1 | 0 | 6,838 | 0 | 0 | |
Change in unrealized gains on investments, net | 130 | 0 | 130 | 130 | 0 | 0 | 0 | 0 | 0 | |
Comprehensive income, net of tax | 6,967 | ' | ' | 6,968 | -1 | ' | ' | ' | ' | |
Ending Balance at Mar. 31, 2013 | 326,214 | 321,159 | 4,647 | 325,806 | 408 | 173,555 | 145,251 | 1,863 | 490 | |
Beginning Balance at Dec. 31, 2013 | 445,457 | 440,268 | 4,788 | 445,056 | 401 | 216,934 | 177,866 | 35,996 | 9,472 | |
Comprehensive income (loss): | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net income (loss) | 11,295 | 11,298 | 0 | 11,298 | -3 | 475 | 1,006 | 7,772 | 2,045 | |
Change in unrealized gains on investments, net | 179 | 0 | 179 | 179 | 0 | 0 | 0 | 0 | 0 | |
Comprehensive income, net of tax | 11,474 | ' | ' | 11,477 | -3 | ' | ' | ' | ' | |
Contributions from owners | [1] | 945 | 945 | 0 | 945 | 0 | 0 | 0 | 748 | 197 |
Distributions to owners | [2] | -25,276 | -25,276 | 0 | -25,276 | 0 | 0 | 0 | -20,010 | -5,266 |
Ending Balance at Mar. 31, 2014 | $432,600 | $427,235 | $4,967 | $432,202 | $398 | $217,409 | $178,872 | $24,506 | $6,448 | |
[1] | In February 2014, the Company sold property to a related party under common control and, in accordance with GAAP, $0.9 million of consideration received in excess of the net book value was recorded as an equity contribution from its owners. | |||||||||
[2] | In January 2014, the Company acquired property and related liabilities from a related party under common control for $4.4 million cash, assumption of a $1.3 million liability, and estimated future revenue participation payments of $19.6 million. The $25.3 million of consideration was recorded as an equity distribution to its owners. |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Changes in Equity (Parenthetical) (USD $) | 1 Months Ended |
Jan. 31, 2014 | |
Equity distribution to owners | $25,300,000 |
Partners | ' |
Payment for acquisition of property | 4,400,000 |
Payment for acquisition of liability | 1,300,000 |
Partners | Future revenue participation payments | ' |
Future payment for acquisition of property | $19,600,000 |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating activities | ' | ' |
Net income | $11,295 | $6,837 |
Adjustments to reconcile net income to net cash used in operating activities: | ' | ' |
Equity in (income) loss from unconsolidated joint ventures | -406 | 632 |
Gain on reinsurance transaction | -1,345 | -648 |
Net gain on sale of available-for-sale investments | 0 | -10 |
Depreciation and amortization expense | 1,923 | 1,759 |
Net interest capitalized on investment in joint ventures | -875 | -257 |
Distributions of earnings from joint ventures | 1,130 | 0 |
Changes in operating assets and liabilities: | ' | ' |
Restricted cash | 193 | 10,343 |
Receivables and other assets | -6,395 | -4,755 |
Inventory | -118,924 | -44,743 |
Payables and other liabilities | 10,742 | 2,879 |
Net cash used in operating activities | -102,662 | -27,963 |
Investing activities | ' | ' |
Proceeds from sale of available-for-sale investments | 86 | 3,069 |
Net collections on promissory notes from related parties | 10,461 | 385 |
Investments in unconsolidated joint ventures | -4,452 | -4,028 |
Distributions from unconsolidated joint ventures | 0 | 500 |
Net cash provided by (used in) investing activities | 6,095 | -74 |
Financing activities | ' | ' |
Principal payments to financial institutions and others | -1,423 | -241 |
Contributions from owners | 945 | 0 |
Distributions to owners | -4,385 | 0 |
Net cash provided by (used in) financing activities | -4,863 | -241 |
Net decrease in cash and cash equivalents | -101,430 | -28,278 |
Cash and cash equivalents at beginning of period | 206,205 | 279,756 |
Cash and cash equivalents at end of period | $104,775 | $251,478 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Basis of Presentation | ' |
1. Basis of Presentation | |
The accompanying unaudited, condensed consolidated financial statements include the accounts of Shea Homes Limited Partnership (“SHLP”) and its wholly-owned subsidiaries, including Shea Homes, Inc. (“SHI”) and its wholly-owned subsidiaries. The Company consolidates all joint ventures in which it has a controlling interest or other ventures in which it is the primary beneficiary of a variable interest entity (“VIE”). Material intercompany accounts and transactions are eliminated. The consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these consolidated financial statements do not include all information and notes required by GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements and accompanying notes for the year ended December 31, 2013. Adjustments, consisting of normal, recurring accruals and loss reserves, considered necessary for a fair presentation, are included. | |
Unless the context otherwise requires, the terms “we”, “us”, “our” and “the Company” refer to SHLP, its subsidiaries and its consolidated joint ventures. | |
Organization | |
SHLP, a California limited partnership, was formed January 4, 1989, pursuant to an agreement of partnership (the “Agreement”), as most recently amended August 6, 2013, by and between J.F. Shea, G.P., a Delaware general partnership, as general partner, and the Company’s limited partners who are comprised of entities and trusts, including J.F. Shea Co., Inc. (“JFSCI”), that are under the common control of Shea family members (collectively, the “Partners”). J.F. Shea, G.P. is 96% owned by JFSCI. | |
Nature of Operations | |
Our principal business purpose is homebuilding, which includes acquiring and developing land and constructing and selling new residential homes thereon. To a lesser degree, we develop lots and sell them to other homebuilders. Our principal markets are California, Arizona, Colorado, Washington, Nevada, Florida, Virginia and Texas. | |
We own a captive insurance company, Partners Insurance Company, Inc. (“PIC”), which provided warranty, general liability, workers’ compensation and completed operations insurance for related companies and third-party subcontractors. Effective for the policy years commencing in 2007, PIC ceased issuing policies for these coverages (see Note 11). | |
Seasonality | |
Historically, the homebuilding industry experiences seasonal fluctuations. We typically experience the highest home sales order activity in spring and summer, although this activity is also highly dependent on the number of active selling communities, timing of community openings and other market factors. Since it typically takes three to eight months to construct a home, we close more homes in the second half of the year as spring and summer home sales orders convert to home closings. Because of this seasonality, home starts, construction costs and related cash outflows are historically highest from April to October, and the majority of cash receipts from home closings occur during the second half of the year. Therefore, operating results for the three months ended March 31, 2014 are not necessarily indicative of results expected for the year ended December 31, 2014. | |
Use of Estimates | |
Preparation of the consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Estimates primarily relate to valuation of certain real estate and reserves for self-insured risks. Actual results could differ significantly from those estimates. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2014 | |
Summary of Significant Accounting Policies | ' |
2. Summary of Significant Accounting Policies | |
Inventory | |
We capitalize preacquisition, land, development and other allocated costs, including interest during development and home construction. Applicable costs incurred after development or construction is substantially complete are charged to selling, general and administrative, and other expenses as appropriate. Preacquisition costs, including non-refundable land deposits, are expensed to other income (expense), net when we determine continuation of the respective project is not probable. | |
Land, development and other indirect costs are typically allocated to inventory using a methodology that approximates the relative-sales-value method. Home construction costs are recorded using the specific identification method. Cost of sales for homes closed includes the specific construction costs of each home and all applicable land acquisition, land development and related costs (both incurred and estimated to be incurred) based upon the total number of homes expected to close in each community. Changes to estimated total development costs subsequent to initial home closings in a community are generally allocated on a relative-sales-value method to remaining homes in the community. | |
Inventory is stated at cost, unless the carrying amount is determined not to be recoverable, in which case inventory is adjusted to fair value or fair value less cost to sell. Quarterly, we review our real estate assets at each community for indicators of impairment. Real estate assets include projects actively selling, under development, held for future development or held for sale. Indicators of impairment include, but are not limited to, significant decreases in local housing market values and prices of comparable homes, significant decreases in gross margins and sales absorption rates, costs in excess of budget, and actual or projected cash flow losses. | |
If there are indications of impairment, we analyze the budgets and cash flows of our real estate assets and compare the estimated remaining undiscounted future cash flows of the community to the asset’s carrying value. If the undiscounted cash flows exceed the asset’s carrying value, no impairment adjustment is required. If the undiscounted cash flows are less than the asset’s carrying value, the asset is deemed impaired and adjusted to fair value. For land held for sale, if the fair value less costs to sell exceed the asset’s carrying value, no impairment adjustment is required. These impairment evaluations require use of estimates and assumptions regarding future conditions, including timing and amounts of development costs and sales prices of real estate assets, to determine if estimated future undiscounted cash flows will be sufficient to recover the asset’s carrying value. | |
When estimating undiscounted cash flows of a community, various assumptions are made, including: (i) the number of homes available and the expected prices and incentives offered by us or builders in other communities, and future 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, home construction, interest, indirect construction and overhead, and selling and marketing costs; (iv) alternative product offerings that could impact 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 rates have a direct impact on the estimated price of a home, the level of time sensitive costs (such as indirect construction, overhead and interest), and selling and marketing costs (such as model maintenance and advertising). Depending on the underlying objective of the community, assumptions could have a significant impact on the projected cash flows. For example, if our objective is to preserve operating margins, our cash flows will be different than if the objective is to increase sales. These objectives may vary significantly by community over time. | |
If assets are considered impaired, the impairment charge is the amount the asset’s carrying value exceeds its fair value. Fair value is determined based on estimated future cash flows discounted for inherent risks associated with real estate assets or other valuation techniques. These discounted cash flows are impacted by expected risk based on estimated land development, 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. The discount rate used in determining each asset’s fair value depends on the community’s projected life and development stage. | |
Completed Operations Claim Costs | |
We maintain, and require our subcontractors to maintain, general liability insurance which includes coverage for completed operations losses and damages. Most subcontractors carry this insurance through our “rolling wrap-up” insurance program, where our risks and risks of participating subcontractors are insured through a common set of master policies. | |
Completed operations claims reserves primarily represent claims for property damage to completed homes and projects outside of our one-to-two year warranty period. Specific terms and conditions of completed operations warranties vary depending on the market in which homes are closed and can range up to 12 years from the closing of a home. | |
We record expenses and liabilities for estimated costs of potential completed operations claims based upon aggregated loss experience, which includes an estimate of completed operations claims incurred but not reported and is actuarially estimated using individual case-basis valuations and statistical analysis. These estimates make up our entire reserve and are subject to a high degree of variability due to uncertainties such as trends in completed operations claims related to our markets and products built, changes in claims reporting and settlement patterns, third party recoveries, insurance industry practices, insurance regulations and legal precedent. Because state regulations vary, completed operations claims are reported and resolved over an extended period, sometimes exceeding 12 years. As a result, actual costs may differ significantly from estimates. | |
The actuarial analyses that determine these incurred but not reported claims consider various factors, including frequency and severity of losses, which are based on our historical claims experience supplemented by industry data. The actuarial analyses of these claims and reserves also consider historical third party recovery rates and claims management expenses. Due to inherent uncertainties related to each of these factors, periodic changes to such factors based on updated relevant information could result in actual costs differing significantly from estimates. | |
In accordance with our underlying completed operations insurance policies, completed operations claims costs are recoverable from our subcontractors or insurance carriers. Completed operations claims through July 31, 2009 are insured or reinsured with third-party insurance carriers and completed operations claims commencing August 1, 2009 are insured with third-party and affiliate insurance carriers. | |
Revenues | |
In accordance with Accounting Standards Codification (“ASC”) 360, revenues from housing and other real estate sales are recognized when the respective units close. Housing and other real estate sales close when all conditions of escrow are met, including delivery of the home or other real estate asset, title passage, appropriate consideration is received or collection of associated receivables, if any, is reasonably assured and when we have no other continuing involvement in the asset. Sales incentives are a reduction of revenues when the respective unit is closed. | |
Income Taxes | |
SHLP is treated as a partnership for income tax purposes. As a limited partnership, SHLP is subject to certain minimal state taxes and fees; however, taxes on income realized by SHLP are generally the obligation of the Partners and their owners. | |
SHI and PIC are C corporations. Federal and state income taxes are provided for these entities in accordance with ASC 740. The provision for, or benefit from, income taxes is calculated using the asset and liability method, whereby deferred tax assets and liabilities are recorded based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect the year in which differences are expected to reverse. | |
Deferred tax assets are evaluated to determine whether a valuation allowance should be established based on our determination of whether it is more likely than not some or all of the deferred tax asset will not be realized. The ultimate realization of deferred tax assets depends primarily on generation of future taxable income during periods in which those temporary differences become deductible. The assessment of a valuation allowance includes giving appropriate consideration to all positive and negative evidence related to the realization of the deferred tax asset. This assessment considers, among other things, the nature, frequency and severity of current and cumulative losses over recent years, forecasts of future profitability, the duration of statutory carryforward periods, our experience with operating loss and tax credit carryforwards before they expire, and tax planning alternatives. Judgment is required in determining future tax consequences of events that have been recognized in the consolidated financial statements and/or tax returns. Differences between anticipated and actual outcomes of these future tax consequences could have a material impact on our consolidated financial position or results of operations. | |
We follow certain accounting guidance with respect to how uncertain tax positions should be accounted for and disclosed in the consolidated financial statements. The guidance requires the assessment of tax positions taken or expected to be taken in the tax returns and to determine whether the tax positions are “more-likely-than-not” of being sustained upon examination by the applicable tax authority. Tax positions deemed to meet the more-likely-than-not criteria would be recorded as a tax benefit or expense in the current year. We are required to assess open tax years, as defined by the statute of limitations, for all major jurisdictions, including federal and certain states. Open tax years are those that are open for examination by taxing authorities. We have examinations in progress but believe there are no uncertain tax positions that do not meet the more-likely-than-not level of authority (see Note 13). |
Restricted_Cash
Restricted Cash | 3 Months Ended |
Mar. 31, 2014 | |
Restricted Cash | ' |
3. Restricted Cash | |
At March 31, 2014 and December 31, 2013, restricted cash included cash customer deposits temporarily restricted in accordance with regulatory requirements and cash used in lieu of bonds. At March 31, 2014 and December 31, 2013, restricted cash was $1.0 million and $1.2 million, respectively. |
Fair_Value_Disclosures
Fair Value Disclosures | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Disclosures | ' | ||||||||||||||||
4. Fair Value Disclosures | |||||||||||||||||
At March 31, 2014 and December 31, 2013, as required by ASC 825, the following presents net book values and estimated fair values of notes payable. | |||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||
Net Book | Estimated | Net Book | Estimated | ||||||||||||||
Value | Fair Value | Value | Fair Value | ||||||||||||||
(In thousands) | |||||||||||||||||
$750,000 senior secured notes | $ | 750,000 | $ | 825,000 | $ | 750,000 | $ | 830,625 | |||||||||
Secured promissory notes | $ | 2,092 | $ | 2,092 | $ | 1,708 | $ | 1,708 | |||||||||
The $750.0 million 8.625% senior secured notes due May 2019 (the “Secured Notes”) are level 2 financial instruments in which fair value was based on quoted market prices in an inactive market at the end of the period. | |||||||||||||||||
Other financial instruments consist primarily of cash and cash equivalents, restricted cash, accounts and other receivables, accounts payable and other liabilities and secured promissory notes. Book values of these financial instruments approximate fair value due to their relatively short-term nature. In addition, included in other assets are available-for-sale marketable securities, which are recorded at fair value. |
Accounts_and_Other_Receivables
Accounts and Other Receivables, net | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Accounts and Other Receivables, net | ' | ||||||||
5. Accounts and Other Receivables, net | |||||||||
At March 31, 2014 and December 31, 2013, accounts and other receivables, net were as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Insurance receivables | $ | 137,644 | $ | 138,610 | |||||
Escrow receivables | 7,154 | 586 | |||||||
Notes receivables | 4,308 | 3,155 | |||||||
Development receivables | 1,932 | 3,093 | |||||||
Other receivables | 4,718 | 4,031 | |||||||
Reserve | (1,911 | ) | (1,976 | ) | |||||
Total accounts and other receivables, net | $ | 153,845 | $ | 147,499 | |||||
Insurance receivables are from insurance carriers for reimbursable claims pertaining to resultant damage from construction defects on closed homes (see Note 11). Closed homes for policy years August 1, 2001 to July 31, 2009 are insured or reinsured with third-party insurance carriers, and closed homes for policy years commencing August 1, 2009 are insured with third-party and affiliate insurance carriers. At March 31, 2014 and December 31, 2013, insurance receivables from affiliate insurance carriers were $47.2 million and $44.0 million, respectively. | |||||||||
We reserve for uncollectible receivables that are specifically identified. |
Inventory
Inventory | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventory | ' | ||||||||
6. Inventory | |||||||||
At March 31, 2014 and December 31, 2013, inventory was as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Model homes | $ | 104,549 | $ | 87,728 | |||||
Completed homes for sale | 34,237 | 20,285 | |||||||
Homes under construction | 299,579 | 257,662 | |||||||
Lots available for construction | 354,471 | 342,622 | |||||||
Land under development | 154,801 | 122,257 | |||||||
Land held for future development | 80,413 | 70,618 | |||||||
Land held for sale, including water system connection rights | 82,595 | 79,102 | |||||||
Land deposits and preacquisition costs | 21,551 | 32,998 | |||||||
Total inventory | $ | 1,132,196 | $ | 1,013,272 | |||||
Model homes, completed homes for sale and homes under construction include all costs associated with home construction, including land, development, indirects, permits, and vertical construction. Lots available for construction include costs incurred prior to home construction such as land, development, indirects and permits. Land under development includes costs incurred during site development such as land, development, indirects and permits. Land under development transfers to lots available for construction once site development is complete and is ready for vertical construction. Land is classified as held for future development if no significant development has occurred. Land held for sale, including water system connection rights, represents residential and commercial land designated for sale, as well as water system connection rights held that will be transferred to homebuyers upon closing of their home, transferred upon sale of land to the respective buyer, sold or otherwise leased. | |||||||||
Impairment | |||||||||
Inventory, including the captions above, are stated at cost, unless the carrying amount is determined to be unrecoverable, in which case inventories are adjusted to fair value or fair value less costs to sell (see Note 2). | |||||||||
For the three months ended March 31, 2014 and 2013, there were no inventory impairment charges. | |||||||||
Interest Capitalization | |||||||||
Interest is capitalized to inventory and investments in unconsolidated joint ventures during development and other qualifying activities. Interest capitalized as a cost of inventory is included in cost of sales when related units close. Interest capitalized to investments in unconsolidated joint ventures is included in equity in income (loss) from unconsolidated joint ventures when related units in the joint ventures close. | |||||||||
For the three months ended March 31, 2014 and 2013, interest incurred, capitalized and expensed was as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Interest incurred | $ | 16,929 | $ | 16,768 | |||||
Interest expensed (a) | $ | 118 | $ | 3,433 | |||||
Interest capitalized as a cost of inventory during the period | $ | 15,936 | $ | 13,078 | |||||
Interest previously capitalized as a cost of inventory, included in cost of sales | $ | (10,844 | ) | $ | (9,511 | ) | |||
Interest capitalized in ending inventory (b) | $ | 107,192 | $ | 106,416 | |||||
Interest capitalized as a cost of investments in unconsolidated joint ventures during the period | $ | 875 | $ | 257 | |||||
Interest previously capitalized as a cost of investments in unconsolidated joint ventures, included in equity in income (loss) from unconsolidated joint ventures | $ | (267 | ) | $ | (257 | ) | |||
Interest capitalized in ending investments in unconsolidated joint ventures | $ | 1,697 | $ | 0 | |||||
(a) | For the three-months ended March 31, 2014, qualifying assets exceeded debt, therefore no interest on the Secured Notes was expensed; interest expense represents fees charged on the unused revolving credit facility that is not considered a cost of borrowing and is not capitalized. For the three months ended March 31, 2013, assets qualifying for interest capitalization were less than debt; therefore, non-qualifying interest was expensed. | ||||||||
(b) | Inventory impairment charges were recorded against total inventory of the respective community in prior periods. Capitalized interest reflects the gross amount of capitalized interest as impairment charges recognized were generally not allocated to specific components of inventory. |
Investments_in_Unconsolidated_
Investments in Unconsolidated Joint Ventures | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Investments in Unconsolidated Joint Ventures | ' | ||||||||
7. Investments in Unconsolidated Joint Ventures | |||||||||
Unconsolidated joint ventures, which we do not control but have significant influence through ownership interests generally up to 50%, are accounted for using the equity method of accounting. These joint ventures are generally involved in real property development and house construction and sales. Earnings and losses are allocated in accordance with terms of joint venture agreements. | |||||||||
Losses and distributions from joint ventures in excess of the carrying amount of our investment (“Deficit Distributions”) are included in other liabilities. We record Deficit Distributions since we are liable for this deficit to respective joint ventures. Deficit Distributions are offset by future earnings of, or future contributions to, the joint ventures. At March 31, 2014 and December 31, 2013, Deficit Distributions were $0.5 million and $0.4 million, respectively. | |||||||||
For the three months ended March 31, 2014 and 2013, there were no impairments on investments in unconsolidated joint ventures. | |||||||||
At March 31, 2014 and December 31, 2013, total unconsolidated joint ventures’ notes payable was as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Bank and seller notes payable: | |||||||||
Guaranteed (subject to remargin obligations) | $ | 49,663 | $ | 52,515 | |||||
Non-Guaranteed | 11,010 | 10,073 | |||||||
Total bank and seller notes payable (a) | 60,673 | 62,588 | |||||||
Partner notes payable (b): | |||||||||
Unsecured | 15,844 | 16,001 | |||||||
Total unconsolidated joint venture notes payable | $ | 76,517 | $ | 78,589 | |||||
Other unconsolidated joint venture notes payable (c) | $ | 12,051 | $ | 55,441 | |||||
(a) | All bank seller notes were secured by real property. | ||||||||
(b) | No guarantees were provided on partner notes payable. In January 2014, a $3.2 million partner note from one joint venture was paid off. | ||||||||
(c) | Through indirect effective ownership in two joint ventures of 12.3% and 0.0003%, respectively, that had bank notes payable secured by real property in which we have not provided any guarantee. | ||||||||
At March 31, 2014 and December 31, 2013, remargin obligations and guarantees provided on debt of our unconsolidated joint ventures were on a joint and/or several basis and include, but are not limited to, project completion, interest and carry, and loan-to-value maintenance guarantees. | |||||||||
For a joint venture, RRWS, LLC (“RRWS”), we have a remargin obligation which is limited to the lesser of 50% of the outstanding balance or $35.0 million in total for all of the joint venture loans, which outstanding loan balances at March 31, 2014 and December 31, 2013 were $42.2 million and $47.7 million, respectively. Consequently, our maximum remargin obligation at March 31, 2014 and December 31, 2013 was $21.1 million and $23.8 million, respectively. We also have an indemnification agreement where we could potentially recover a portion of any remargin payments made by the Company. However, we cannot provide assurance we could collect under this indemnity agreement. | |||||||||
For a second joint venture, Polo Estates Ventures, LLC (“Polo”), we have a joint and several remargin guarantee on loan obligations which, in total, at March 31, 2014 and December 31, 2013 were $7.4 million and $4.8 million, respectively. At both March 31, 2014 and December 31, 2013, total maximum borrowings permitted on these loans was $21.6 million. We also have reimbursement rights where we could potentially recover a portion of any remargin payments made by the Company. However, we cannot provide assurance we could collect such reimbursements. | |||||||||
No liabilities were recorded for these guarantees at March 31, 2014 and December 31, 2013 as the fair value of the secured real estate assets exceeded the threshold at which a remargin payment would be required. | |||||||||
Our ability to make joint venture and other restricted payments and investments is governed by the Indenture governing the Secured Notes (the “Indenture”). We are permitted to make restricted payments under (i) a $70.0 million revolving basket available solely for joint venture investments and (ii) a broader restricted payment basket available as long as our Consolidated Fixed Charge Coverage Ratio (as defined in the Indenture) is at least 2.0 to 1.0. The aggregate amount of restricted payments made under this broader restricted payment basket cannot exceed 50% of our cumulative Consolidated Net Income (as defined in the Indenture) generated from and including October 1, 2013, plus the aggregate net cash proceeds of, and the fair market value of, any property or other asset received by the Company as a capital contribution or upon the issuance of indebtedness or certain securities by the Company from and including October 1, 2013, plus, to the extent not included in Consolidated Net Income, certain amounts received in connection with dispositions, distributions or repayments of restricted investments, plus the value of any unrestricted subsidiary which is redesignated as a restricted subsidiary under the Indenture. We have joint ventures which have used, and are expected to use, capacity under these restricted payment baskets. In 2013, we entered into a joint venture in Southern California and committed to contribute up to $45.0 million of capital. At March 31, 2014 and December 31, 2013, we made aggregate capital contributions of $15.1 million and $15.1 million, respectively, to this joint venture. |
Variable_Interest_Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2014 | |
Variable Interest Entities | ' |
8. Variable Interest Entities | |
ASC 810 requires a VIE to be consolidated in the financial statements of a company if it is the primary beneficiary of the VIE. Accordingly, the primary beneficiary has the power to direct activities of the VIE that most significantly impact the VIE’s economic performance, and the obligation to absorb its losses or the right to receive its benefits. All VIEs with which we were involved at March 31, 2014 and December 31, 2013 were evaluated to determine the primary beneficiary. | |
Joint Ventures | |
We enter into joint ventures for homebuilding and land development activities. Investments in these joint ventures may create a variable interest in a VIE, depending on contractual terms of the venture. We analyze our joint ventures in accordance with ASC 810 to determine whether they are VIEs and, if so, whether we are the primary beneficiary. At March 31, 2014 and December 31, 2013, these joint ventures were not consolidated in our consolidated financial statements since they were not VIEs, or if they were VIEs, we were not the primary beneficiary. | |
At March 31, 2014 and December 31, 2013, we had a variable interest in an unconsolidated joint venture determined to be a VIE. The joint venture, RRWS, was formed in December 2012 and is owned 50% by the Company and 50% by a third-party real estate developer (the “RRWS Partner”). Several acquisition, development and construction loans were entered into by RRWS, each with two-year terms and options to extend for one year, subject to certain conditions. Each loan is cross collateralized and cross defaulted with the other loan. The Company and RRWS Partner each executed limited completion, interest and carry guarantees and environmental indemnities on a joint and several basis. In addition, the Company and RRWS Partner executed loan-to-value maintenance agreements for each loan on a joint and several basis. The Company has a maximum aggregate liability under the re-margin arrangements of the lesser of 50% of the outstanding balances or $35.0 million in total. Obligations of the Company and RRWS Partner under the re-margin arrangements are limited during the first two years of the loans. In addition to re-margin arrangements, the RRWS Partner, and several of its principals, executed repayment guarantees with no limit on their liability. At March 31, 2014 and December 31, 2013, outstanding bank notes payable were $42.2 million and $47.7 million, respectively, of which the Company has a maximum remargin obligation of $21.1 million and $23.8 million, respectively. The Company also has an indemnification agreement from the Partner, under which the Company could potentially recover a portion of any remargin payments made by the Company. However, the Company cannot provide assurance it could collect under this indemnity agreement. | |
At March 31, 2014 and December 31, 2013, we had a variable interest in a second unconsolidated joint venture determined to be a VIE. The joint venture, Polo, was formed in November 2012 and is owned 50% by the Company and 50% by a third-party investor (“Polo Partner”). Polo entered into acquisition, development and construction loans in July 2013 with two-year terms and options to extend for one year, subject to certain conditions. Each loan is cross collateralized and cross defaulted with the other loan. The Company and Polo Partner each executed loan-to-value maintenance arrangements for each loan on a joint and several basis. At March 31, 2014 and December 31, 2013, outstanding bank notes payable were $7.4 million and $4.8 million, respectively, and total maximum borrowings permitted on these loans were $21.6 million and $21.6 million, respectively. The Company also has reimbursement rights where the Company could potentially recover a portion of any remargin payments made by the Company. However, the Company cannot provide assurance it could collect such reimbursements. | |
In accordance with ASC 810, we determined we were not the primary beneficiary of RRWS and Polo because we did not have the power to direct activities that most significantly impact the economic performance of RRWS and Polo, such as determining or limiting the scope or purpose of the respective entity, selling or transferring property owned or controlled by the respective entity, and arranging financing for the respective entity. | |
Land Option Contracts | |
We enter into land option contracts to procure land for home construction. Use of land option and similar contracts allows us to reduce market risks associated with direct land ownership and development, reduces capital and financial commitments, including interest and other carrying costs, and minimizes land inventory. Under these contracts, we pay a specified deposit for the right to purchase land, usually at a predetermined price. Under the requirements of ASC 810, certain contracts may create a variable interest with the land seller. | |
In accordance with ASC 810, we analyzed our land option and similar contracts to determine if respective land sellers are VIEs and, if so, if we are the primary beneficiary. Although we do not have legal title to the optioned land, ASC 810 requires us to consolidate a VIE if we are the primary beneficiary. At March 31, 2014 and December 31, 2013, we determined we were not the primary beneficiary of such VIEs because we did not have the power to direct activities of the VIE that most significantly impact the VIE’s economic performance, such as selling, transferring or developing land owned by the VIE. | |
At March 31, 2014, we had $1.1 million of refundable and non-refundable cash deposits associated with land option contracts with unconsolidated VIEs, having a $29.8 million remaining purchase price. We also had $18.6 million of refundable and non-refundable cash deposits associated with land option contracts that were not with VIEs, having a $342.8 million remaining purchase price. | |
Our loss exposure on land option contracts consists of non-refundable deposits, which were $19.0 million and $6.9 million at March 31, 2014 and December 31, 2013, respectively, and capitalized preacquisition costs of $1.9 million and $12.0 million, respectively, which were included in inventory in the consolidated balance sheets. |
Other_Assets_Net
Other Assets, Net | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Other Assets, Net | ' | ||||||||
9. Other Assets, Net | |||||||||
At March 31, 2014 and December 31, 2013, other assets were as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Income tax receivable | $ | 0 | $ | 2,199 | |||||
Deferred tax asset (see Note 13) | 15,898 | 16,337 | |||||||
Investments | 9,648 | 9,439 | |||||||
Property and equipment, net | 4,476 | 4,103 | |||||||
Capitalized loan origination fees | 8,152 | 11,089 | |||||||
Prepaid bank fees | 38 | 152 | |||||||
Deposits in lieu of bonds and letters of credit | 10,815 | 10,294 | |||||||
Prepaid insurance | 3,549 | 2,460 | |||||||
Other | 4,536 | 997 | |||||||
Total other assets, net | $ | 57,112 | $ | 57,070 | |||||
Investments | |||||||||
Investments consist of available-for-sale securities, primarily private debt obligations, and are measured at fair value, which is based on quoted market prices or cash flow models. Accordingly, unrealized gains and temporary losses on investments, net of tax, are reported as accumulated other comprehensive income (loss). Realized gains and losses are determined using the specific identification method. | |||||||||
For the three months ended March 31, 2014 and 2013, there were no realized gains on available-for-sale securities. | |||||||||
Capitalized Loan Origination Fees | |||||||||
In accordance with ASC 470, loan origination fees are capitalized and amortized as interest over the term of the related debt. | |||||||||
Deposits in Lieu of Bonds and Letters of Credit | |||||||||
We make cash deposits in lieu of bonds with various agencies for some homebuilding projects. These deposits may be returned as the collateral requirements decrease or replaced with new bonds. |
Notes_Payable
Notes Payable | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Notes Payable | ' | ||||||||
10. Notes Payable | |||||||||
At March 31, 2014 and December 31, 2013, notes payable were as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
$750.0 million 8.625% senior secured notes (the “Secured Notes”), due May 2019 | $ | 750,000 | $ | 750,000 | |||||
$125.0 million secured revolving credit facility (the “Revolver”), interest currently at the Eurodollar rate plus 2.75%, matures March 1, 2016 | 0 | 0 | |||||||
Promissory notes, interest ranging from 1% to 6%, maturing through 2014, secured by deeds of trust on inventory | 2,092 | 1,708 | |||||||
Total notes payable | $ | 752,092 | $ | 751,708 | |||||
On May 10, 2011, our Secured Notes were issued at $750.0 million, bear interest at 8.625% paid semi-annually on May 15 and November 15, and do not require principal payments until maturity on May 15, 2019. The Secured Notes are redeemable, in whole or in part, at the Company’s option beginning on May 15, 2015 at a price of 104.313 per bond, reducing to 102.156 on May 15, 2016 and are redeemable at par beginning on May 15, 2017. At March 31, 2014 and December 31, 2013, accrued interest was $24.3 million and $8.1 million, respectively. | |||||||||
The indenture governing the Secured Notes contains covenants that limit, among other things, our ability to incur additional indebtedness (including the issuance of certain preferred stock), pay dividends and distributions on our equity interests, repurchase our equity interests, retire unsecured or subordinated notes more than one year prior to their maturity, make investments in subsidiaries and joint ventures that are not restricted subsidiaries that guarantee the Secured Notes, sell certain assets, incur liens, merge with or into other companies, expand unto unrelated businesses, and enter in certain transaction with our affiliates. At March 31, 2014 and December 31, 2013, we were in compliance with these covenants. | |||||||||
In February 2014, the Company replaced its $75.0 million letter of credit facility with a the Revolver, which bears interest, at the Company’s option, either at (i) a daily eurocurrency base rate as defined in the credit agreement governing the Revolver (the “Credit Agreement”), plus a margin of 2.75%, or (ii) a eurocurrency rate as defined in the Credit Agreement, plus a margin of 2.75%, and matures March 1, 2016. Borrowing availability is determined by a borrowing base formula and the Company is subject to financial covenants, including minimum net worth and leverage and interest coverage ratios. If the Company does not maintain compliance with these financial covenants, the Revolver converts to an 18-month amortizing term loan. At March 31, 2014, we were in compliance with these covenants. |
Other_Liabilities
Other Liabilities | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Other Liabilities | ' | ||||||||
11. Other Liabilities | |||||||||
At March 31, 2014 and December 31, 2013, other liabilities were as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Completed operations | $ | 137,644 | $ | 138,610 | |||||
Warranty reserves | 21,181 | 20,648 | |||||||
Income tax payable | 3,942 | 0 | |||||||
Accrued profit and revenue participation arrangements (see Note 12) | 21,124 | 678 | |||||||
Deferred revenue/gain | 28,182 | 29,358 | |||||||
Provisions for closed homes/communities | 9,322 | 10,591 | |||||||
Deposits (primarily homebuyer) | 17,034 | 14,281 | |||||||
Legal reserves | 4,748 | 4,576 | |||||||
Accrued interest | 24,258 | 8,086 | |||||||
Accrued compensation and benefits | 9,902 | 9,389 | |||||||
Distributions payable | 2,441 | 2,531 | |||||||
Deficit Distributions (see Note 7) | 536 | 351 | |||||||
Other | 8,237 | 6,702 | |||||||
Total other liabilities | $ | 288,551 | $ | 245,801 | |||||
Completed Operations | |||||||||
Reserves for completed operations primarily represent claims for property damage to completed homes and projects outside of our one-to-two year warranty period. Specific terms and conditions of completed operations claims vary depending on the market in which homes close and can range to 12 years from the close of a home. Expenses and liabilities are recorded for potential completed operations claims based upon aggregated loss experience, which includes an estimate of completed operations claims incurred but not reported, and is actuarially estimated using individual case-based valuations and statistical analysis. For policy years from August 1, 2001 through the present, completed operations claims are insured or reinsured through a combination of third-party and affiliate insurance carriers. | |||||||||
For the three months ended March 31, 2014 and 2013, changes in completed operations reserves were as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Balance, beginning of the period | $ | 138,610 | $ | 131,519 | |||||
Reserves provided | 3,413 | 1,972 | |||||||
Claims paid | (4,379 | ) | (2,241 | ) | |||||
Balance, end of the period | $ | 137,644 | $ | 131,250 | |||||
Reserves provided for completed operations are generally fully offset by changes in insurance receivables (see Note 5); however, premiums paid for completed operations insurance policies are included in cost of sales. For actual completed operations claims and estimates of completed operations claims incurred but not reported, we estimate and record corresponding insurance receivables under applicable policies when recovery is probable. At March 31, 2014 and December 31, 2013, insurance receivables were $137.6 million and $138.6 million, respectively. | |||||||||
Expenses, liabilities and receivables related to these claims are subject to a high degree of variability due to uncertainties such as trends in completed operations claims related to our markets and products built, claim settlement patterns and insurance industry practices. Although considerable variability is inherent in such estimates, we believe reserves for completed operations claims are adequate. | |||||||||
Warranty Reserve | |||||||||
We offer a limited one or two year warranty for our homes. Specific terms and conditions of these warranties vary depending on the market in which homes close. We estimate warranty costs to be incurred and record a liability and a charge to cost of sales when home revenue is recognized. We also include in our warranty reserve the uncovered losses related to completed operations coverage, which approximates 12.5% of the total property damage estimate. Factors affecting warranty liability include number of homes closed, historical and anticipated warranty claims, and cost per claim history and trends. We periodically assess adequacy of our warranty liabilities and adjust amounts as necessary. | |||||||||
For the three months ended March 31, 2014 and 2013, changes in warranty liability were as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Balance, beginning of the period | $ | 20,648 | $ | 17,749 | |||||
Provision for warranties | 3,309 | 1,745 | |||||||
Warranty costs paid | (2,776 | ) | (1,567 | ) | |||||
Balance, end of the period | $ | 21,181 | $ | 17,927 | |||||
Deferred Revenue/Gain | |||||||||
Deferred revenue/gain represents deferred revenues or profit on transactions in which an insufficient down payment was received or a future performance, passage of time or event is required. At March 31, 2014 and December 31, 2013, deferred revenue/gain primarily represents the PIC Transaction described below. | |||||||||
Completed operations claims were insured through PIC for policy years August 1, 2001 to July 31, 2007. In December 2009, PIC entered into a series of novation and reinsurance transactions (the “PIC Transaction”). | |||||||||
First, PIC entered into a novation agreement with JFSCI to novate its deductible reimbursement obligations related to its workers’ compensation and general liability risks at September 30, 2009 for policy years August 1, 2001 to July 31, 2007, and its completed operations risks from August 1, 2005 to July 31, 2007. Concurrently, JFSCI entered into insurance arrangements with unrelated third party insurance carriers to insure these policies. As a result of this novation, a $19.2 million gain was deferred and will be recognized as income when related claims are paid. In addition, the deferred gain may increase or decrease based on changes in actuarial estimates. Changes to the deferred gain are recognized as current period income or expense. At March 31, 2014 and December 31, 2013, the unamortized deferred gain was $18.7 million and $18.9 million, respectively. For the three months ended March 31, 2014 and 2013, we recognized $0.2 million and $0.2 million, respectively, of this deferral as income, which was included in gain on reinsurance transaction, and represents the impact of income recognized from claims paid. | |||||||||
Second, PIC entered into reinsurance agreements with various unrelated reinsurers that reinsured 100% of its expected completed operations risks from August 1, 2001 to July 31, 2005. As a result of the reinsurance, a $15.6 million gain was deferred and will be recognized as income when the related claims are paid. In addition, the deferred gain may increase or decrease based on changes in actuarial estimates. Changes to the deferred gain are recognized as current period income or expense. At March 31, 2014 and December 31, 2013, the unamortized deferred gain was $6.6 million and $7.8 million, respectively. For the three months ended March 31, 2014 and 2013, we recognized $1.1 million and $0.4 million, respectively, of this deferral as income, which was included in gain on reinsurance transaction, and represents the impact of income recognized from claims paid. | |||||||||
As a result of the PIC Transaction, if the estimated ultimate loss to be paid under these policies exceeds the policy limits under the novation and reinsurance transactions, the shortfall is expected to be funded by JFSCI for the policies novated to JFSCI and by PIC for the policies it reinsured. | |||||||||
Distributions Payable | |||||||||
In December 2011, our consolidated joint venture, Vistancia, LLC, sold its remaining interest in an unconsolidated joint venture (the “Vistancia Sale”). As a result of the Vistancia Sale, no other assets of Vistancia, LLC economically benefit the former non-controlling member of Vistancia, LLC and the Company recorded the remaining $3.3 million distribution payable to this member, which is paid $0.1 million quarterly. At March 31, 2014 and December 31, 2013, the remaining distribution payable was $2.4 million and $2.5 million, respectively. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Related Party Transactions | ' | ||||||||
12. Related Party Transactions | |||||||||
Related Party Receivables and Payables | |||||||||
At March 31, 2014 and December 31, 2013, receivables from related parties, net were as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Note receivable from JFSCI | $ | 13,378 | $ | 21,588 | |||||
Notes receivable from unconsolidated joint ventures | 1,370 | 1,037 | |||||||
Notes receivable from related parties | 16,256 | 18,822 | |||||||
Reserves for note receivables from related parties | (12,860 | ) | (12,842 | ) | |||||
Receivables from related parties | 3,844 | 3,745 | |||||||
Total receivables from related parties, net | $ | 21,988 | $ | 32,350 | |||||
In May 2011, concurrent with issuance of the Secured Notes, the previous unsecured receivable from JFSCI was partially paid down and the balance converted to a $38.9 million unsecured term note receivable, bearing 4% interest, payable in equal quarterly installments and maturing May 15, 2019. In 2014 and 2013, JFSCI elected to make prepayments, including accrued interest, of $8.4 million and $3.8 million, respectively, and applied these prepayments to future installments such that JFSCI would not be required to make a payment until November 2016. At March 31, 2014 and December 31, 2013, the note receivable from JFSCI, including accrued interest, was $13.4 million and $21.6 million, respectively. Quarterly, we evaluate collectability of the note receivable from JFSCI, which includes consideration of JFSCI’s payment history, operating performance and future payment requirements under the note. Based on these criteria, and as JFSCI applied prepayments under the note to defer future installments until November 2016, we do not anticipate collection risks on the note receivable from JFSCI. | |||||||||
At March 31, 2014 and December 31, 2013, notes receivable from unconsolidated joint ventures, including accrued interest, were $1.4 million and $1.0 million, respectively. These notes receivable bear interest ranging from 8% to 12% and mature in 2020. Further, the note bearing 8% interest can earn additional interest to achieve a 17.5% internal rate of return, subject to available cash flows of the joint venture, and can be repaid prior to 2020. Quarterly, we evaluate collectability of these notes receivable, which includes consideration of prior payment history, operating performance and future payment requirements under the applicable note receivable. Based on these criteria, we do not anticipate collection risks on these notes receivable. | |||||||||
At March 31, 2014 and December 31, 2013, notes receivable from other related parties, including accrued interest, were $3.4 million and $6.0 million, respectively, net of related reserves of $12.9 million and $12.8 million, respectively. These notes are unsecured and mature from August 2016 through April 2021. At March 31, 2014 and December 31, 2013, these notes bore interest ranging from Prime less .75% (2.5%) to Prime plus 1% (4.25%). Quarterly, we evaluate collectability of these notes which includes consideration of prior payment history, operating performance and future payment requirements under the applicable notes. Based on these criteria, two notes receivable were deemed uncollectible and fully reserved. We do not anticipate collection risks on the other notes. | |||||||||
The Company, entities under common control and certain unconsolidated joint ventures also engage in transactions on behalf of the other, such as payment of invoices and payroll. Amounts resulting from these transactions are recorded in receivables from related parties or payables to related parties, are non-interest bearing, due on demand and generally paid monthly. At March 31, 2014 and December 31, 2013, these receivables were $3.8 million and $3.7 million, respectively, and these payables were $5.6 million and $0.1 million, respectively. | |||||||||
Real Property and Joint Venture Transactions | |||||||||
In January 2014, the Company entered into a purchase and sale agreement and acquired undeveloped land in Northern California. Consideration includes $4.4 million cash, assumption of a $1.3 million liability, and future revenue participation payments (the “RAPA”). The RAPA is calculated at 11% of gross revenues from home closings, payable quarterly and capped at $19.6 million. The RAPA liability, based on a third-party real estate appraisal, is estimated to be $19.6 million, which is included in other liabilities (see Note 11). As the transaction is with a related party under common control, the $25.3 million of consideration was recorded as an equity distribution to its owners. | |||||||||
In February 2014, the Company entered into a purchase and sale agreement to sell land in Southern California for $1.0 million to a related party under common control. The $0.9 million of net sales proceeds received in excess of the net book value of the land sold was recorded as an equity contribution. | |||||||||
At March 31, 2014 and 2013, we were the managing member for ten and nine, respectively, unconsolidated joint ventures and received management fees from these joint ventures as reimbursement for direct and overhead costs incurred on behalf of the joint ventures and other associated costs. Fees representing cost reimbursement are recorded as an offset to general and administrative expenses; fees in excess of our costs are recorded as revenues. For the three months ended March 31, 2014, $2.1 million of management fees were offset to general and administrative expenses, and $0.3 million of management fees were included in revenues. For the three months ended March 31, 2013, $1.6 million of management fees were offset to general and administrative expenses, and $0.1 million of management fees were included in revenues. | |||||||||
Other Related Party Transactions | |||||||||
JFSCI provides corporate services to us, including management, legal, tax, information technology, risk management, facilities, accounting, treasury and human resources. For the three months ended March 31, 2014 and 2013, general and administrative expenses included $6.3 million and $5.2 million, respectively, for corporate services provided by JFSCI. | |||||||||
We lease office space from related parties under non-cancelable operating leases with terms up to ten years that generally provide renewal options for terms up to an additional five years. For the three months ended March 31, 2014 and 2013, related party rental expense was $0.2 million and $0.1 million, respectively. | |||||||||
We obtain workers compensation insurance, commercial general liability insurance and insurance for completed operations losses and damages with respect to our homebuilding operations from affiliate and unrelated third party insurance providers. These policies are purchased by affiliate entities and we pay premiums to these affiliates for the coverage provided by these third party and affiliate insurance providers. Policies covering these risks are written at various coverage levels but include a large self-insured retention or deductible. We have retention liability insurance from affiliated entities to insure these large retentions or deductibles. For the three months ended March 31, 2014 and 2013, amounts paid to affiliates for this retention insurance coverage were $5.1 million and $3.9 million, respectively. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Taxes | ' |
13. Income Taxes | |
For the three months ended March 31, 2014, income tax expense was $7.7 million. At March 31, 2014, the net deferred tax asset was $15.9 million, which primarily related to available loss carryforwards, inventory and investment impairments, and housing inventory and land basis differences. The $0.5 million deferred tax asset valuation allowance relates to capital losses that expire in 2016 and 2017, and the impairment of debt securities that mature in 2021 and 2022. We continue to monitor industry and economic conditions, and our ability to generate taxable income to determine the recoverability of the net deferred tax assets . | |
In 2009, we filed a petition with the United States Tax Court (the “Tax Court”) regarding our position on the completed contract method (“CCM”) of accounting for our homebuilding operations. During 2010 and 2011, we engaged in formal and informal discovery with the IRS and the Tax Court heard trial testimony in July 2012 and ordered the Company and the IRS to exchange briefs, which were filed. On February 12, 2014, the Tax Court ruled in favor of the Company (the “Tax Court Decision”). Pursuant to the ruling, the Company is permitted to continue to report income and loss from the sale of homes in its planned developments using CCM. As a result, no additional tax, interest or penalties are currently due and owing by the Company or the Partners. The Tax Court Decision is subject to appeal by the IRS to the U.S. Court of Appeals for the Ninth Circuit, and any appeal must be made before July 21, 2014. | |
If the Tax Court Decision is appealed, we believe our position would prevail and, accordingly, have not recorded a liability for related taxes or interest for SHI. Furthermore, as a limited partnership, income taxes, interest or penalties imposed on SHLP are the Partners’ responsibility and are not reflected in the tax provision in these consolidated financial statements. However, if the Tax Court Decision is overturned, SHI could be obligated to pay the IRS and applicable state taxing authorities up to $66 million and, under the Tax Distribution Agreement, SHLP could be obligated to make a distribution to the Partners up to $109 million to fund their related payments to the IRS and applicable state taxing authorities. However, the Indenture provides the amount we may pay on behalf of SHI and distribute to the Partners of SHLP for the matter may not exceed $70.0 million. Any potential shortfall would be absorbed by the SHLP Partners. | |
The Company anticipates filing Form 3115 with the IRS during the fourth quarter 2014 to change its tax accounting method of how it records certain expenses on its income tax returns. As the Company believes it is more-likely-than-not the change will be approved by the IRS, the Company reflected this new tax accounting method in preparing the tax provision for the three months ended March 31, 2014. As a result, the effective tax rate for the three months ended March 31, 2014 was not materially higher. |
Owners_Equity
Owners' Equity | 3 Months Ended |
Mar. 31, 2014 | |
Owners' Equity | ' |
14. Owners’ Equity | |
Owners’ equity consists of partners’ preferred and common capital. Common capital is comprised of limited partners with a collective 78.38% ownership and a general partner with a 20.62% ownership. Preferred capital is comprised of limited partners with either series B (“Series B”) or series D (“Series D”) classification. Series B holders have no ownership interest but earn a preferred return at 1.2% through December 31, 2016, 2.25% from January 1, 2017 to December 31, 2020, and Prime less 2.05% from January 1, 2021 and thereafter on unreturned capital balances. Series D holders have a 1% ownership interest and earn a preferred return at 2.0% through December 31, 2016, 12.75% from January 1, 2017 to December 31, 2020, and 7.0% from January 1, 2021 and thereafter on unreturned capital balances. At March 31, 2014 and December 31, 2013, accumulated undistributed preferred returns for Series B holders were $23.2 million and $22.7 million, respectively. At March 31, 2014 and December 31, 2013, accumulated undistributed preferred returns for Series D holders were $57.5 million and $56.6 million, respectively. | |
Net income is allocated to Partners in a priority order that considers previously allocated net losses and preferred return considerations and, thereafter, in proportion to their respective ownership interests. Net loss is allocated in a priority order to Partners generally in proportion to their ownership interests and adjusted capital account balances, and, thereafter, to the general partner. | |
The general partner, in its sole discretion, may make additional capital contributions or accept additional capital contributions from the limited partners. Cash distributions are made to Partners in proportion to their unpaid preferred returns, unreturned capital and, thereafter, in proportion to their ownership interests. Distributions to Partners are made at the discretion of the general partner, including payment of personal income taxes related to the Company. In addition, distributions to Partners from other entities under control of Shea family members, such as JFSCI, can be used for payment of personal incomes taxes related to the Company and other uses. |
Contingencies_and_Commitments
Contingencies and Commitments | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Contingencies and Commitments | ' | ||||||||
15. Contingencies and Commitments | |||||||||
At March 31, 2014 and December 31, 2013, certain unrecorded contingent liabilities and commitments were as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Tax Court CCM case (capped at $70.0 million, see Note 13) | $ | 70,000 | $ | 70,000 | |||||
Remargin obligations and guarantees for unconsolidated joint ventures (see Note 7) | 28,554 | 28,684 | |||||||
Costs to complete on surety bonds for Company projects | 79,258 | 77,276 | |||||||
Costs to complete on surety bonds for joint venture projects | 22,807 | 22,845 | |||||||
Costs to complete on surety bonds for related party projects | 1,614 | 1,614 | |||||||
Water system connection rights purchase obligation | 30,506 | 30,506 | |||||||
Total unrecorded contingent liabilities and commitments | $ | 232,739 | $ | 230,925 | |||||
Legal Claims | |||||||||
Lawsuits, claims and proceedings have been and will likely be instituted or asserted against us in the normal course of business, including actions brought on behalf of various classes of claimants. We are also subject to local, state and federal laws and regulations related to land development activities, house construction standards, sales practices, employment practices and environmental protection. As a result, we are subject to periodic examinations or inquiry by agencies administering these laws and regulations. | |||||||||
We record a reserve for potential legal claims and regulatory matters when the specific facts and circumstances indicate that they are probable of occurring and a potential loss is reasonably estimable, and we revise these estimates when necessary. At March 31, 2014 and December 31, 2013, we had reserves of $4.7 million and $4.6 million, respectively, net of expected recoveries, relating to these claims and matters, and while their outcome cannot be predicted with certainty, we believe we have appropriately reserved for them. However, if the liability arising from their resolution exceeds their recorded reserves, we could incur additional charges that could be significant. | |||||||||
Due to the inherent difficulty of predicting outcomes of legal claims and related contingencies, we generally cannot predict their ultimate resolution, related timing or eventual loss. If our evaluations indicate loss contingencies that could be material are not probable, but are reasonably possible, we will disclose their nature with an estimate of possible range of losses or a statement that such loss is not reasonably estimable. Other than the Tax Court Decision discussed in Note 13, at March 31, 2014, the range of reasonably possible losses in excess of amounts accrued was not material. | |||||||||
Letters of Credit, Surety Bonds and Project Obligations | |||||||||
On May 10, 2011, we entered into a $75.0 million letter of credit facility. At December 31, 2013, there were no letters of credit outstanding. In February 2014, this facility was replaced with the new $125.0 million Revolver (see Note 10), under which up to $62.5 million of letters of credit may be issued. At March 31, 2014, there were no outstanding letters of credit against the Revolver. | |||||||||
We provide surety bonds that guarantee completion of certain infrastructure serving our homebuilding projects. At March 31, 2014, there was $79.3 million of costs to complete in connection with $169.5 million of surety bonds issued. At December 31, 2013, there was $77.3 million of costs to complete in connection with $169.7 million of surety bonds issued. | |||||||||
We also provide indemnification for bonds issued by certain unconsolidated joint ventures and other related party projects in which we have no ownership interest. At March 31, 2014, there was $22.8 million of costs to complete in connection with $63.3 million of surety bonds issued for unconsolidated joint venture projects, and $1.6 million of costs to complete in connection with $4.9 million of surety bonds issued for related party projects. At December 31, 2013, there was $22.8 million of costs to complete in connection with $63.7 million of surety bonds issued for unconsolidated joint venture projects, and $1.6 million of costs to complete in connection with $4.9 million of surety bonds issued for related party projects. | |||||||||
Certain of our homebuilding projects utilize community facility district, metro-district and other local government bond financing programs to fund acquisition or construction of infrastructure improvements. Interest and principal on these bonds are typically paid from taxes and assessments levied on landowners and/or homeowners following the closing of new homes in the project. Occasionally, we enter into credit support arrangements requiring us to pay interest and principal on these bonds if taxes and assessments levied on homeowners are insufficient to cover such obligations. Furthermore, reimbursement of these payments to us is dependent on the district or local government’s ability to generate sufficient tax and assessment revenues from the new homes. At March 31, 2014 and December 31, 2013, in connection with a credit support arrangement, there was $8.8 million and $8.6 million, respectively, reimbursable to us from certain agencies in Colorado and, accordingly, were recorded in inventory as a recoverable project cost. | |||||||||
We also pay certain fees and costs associated with the construction of infrastructure improvements in homebuilding projects that utilize these district bond financing programs. These fees and costs are typically reimbursable to us from, and therefore dependent on, bond proceeds or taxes and assessments levied on homeowners. At March 31, 2014 and December 31, 2013, in connection with certain funding arrangements, there was $13.1 million and $13.1 million, respectively, reimbursable to us from certain agencies, including $11.9 million and $11.9 million, respectively, from metro-districts in Colorado and, accordingly, were recorded in inventory as a recoverable project cost. | |||||||||
Until bond proceeds or tax and assessment revenues are sufficient to cover our obligations and/or reimburse us, our responsibility to make interest and principal payments on these bonds or pay fees and costs associated with the construction of infrastructure improvements could be prolonged and significant. In addition, if the bond proceeds or tax and assessment revenues are not sufficient to cover our obligations and/or reimburse us, these amounts might not be recoverable. | |||||||||
As a condition of the Vistancia Sale, and the purchase of the non-controlling member’s remaining interest in Vistancia, LLC, the Company effectively remains a 10% guarantor on certain community facility district bond obligations to which the Company must meet a minimum calculated tangible net worth; otherwise, the Company is required to fund collateral to the bond issuer. At March 31, 2014 and December 31, 2013, the Company exceeded the minimum tangible net worth requirement. | |||||||||
At a consolidated homebuilding project in Colorado, we have contractual obligations to purchase and receive water system connection rights which, at March 31, 2014 and December 31, 2013, had an estimated market value in excess of their contractual purchase price of $30.5 million. These water system connection rights are held, then transferred to homebuyers upon closing of their home, transferred upon sale of land to the respective buyer, sold or leased. |
Supplemental_Disclosure_to_Con
Supplemental Disclosure to Consolidated Statements of Cash Flows | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Supplemental Disclosure to Consolidated Statements of Cash Flows | ' | ||||||||
16. Supplemental Disclosure to Consolidated Statements of Cash Flows | |||||||||
Supplemental disclosures to the consolidated statements of cash flows were as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Supplemental disclosure of cash flow information | |||||||||
Income taxes paid | $ | 207 | $ | 25 | |||||
Interest paid, net of amounts capitalized | $ | 0 | $ | 109 | |||||
Supplemental disclosure of noncash activities | |||||||||
Unrealized gain on available-for-sale investments, net | $ | 179 | $ | 130 | |||||
Reclassification of Deficit Distributions to unconsolidated joint ventures from other liabilities | $ | 184 | $ | 0 | |||||
Purchase of land in exchange for note payable | $ | 1,807 | $ | 929 | |||||
Distribution to Owners for assumption of liability and revenue participation payments for land purchased from a related party under common control | $ | (20,891 | ) | $ | 0 |
Segment_Information
Segment Information | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Information | ' | ||||||||
17. Segment Information | |||||||||
Our homebuilding business, which is responsible for most of our operating results, constructs and sells single-family attached and detached homes designed to appeal to first-time, move-up and active lifestyle homebuyers. Our homebuilding business also provides management services to joint ventures and other related and unrelated parties. We manage each homebuilding community as an operating segment and have aggregated these communities into reportable segments based on geography as follows: | |||||||||
• | Southern California, comprised of communities in Los Angeles, Ventura and Orange Counties, and the Inland Empire; | ||||||||
• | San Diego, comprised of communities in San Diego County, California; | ||||||||
• | Northern California, comprised of communities in northern and central California, and the central coast of California; | ||||||||
• | Mountain West, comprised of communities in Colorado and Washington; | ||||||||
• | South West, comprised of communities in Arizona, Nevada and Texas: and | ||||||||
• | East, comprised of communities in Florida and Virginia. | ||||||||
In accordance with ASC 280, in determining the most appropriate aggregation of our homebuilding communities, we also considered similar economic and other characteristics, including product types, average selling prices, gross profits, production processes, suppliers, subcontractors, regulatory environments, land acquisition results, and underlying demand and supply. | |||||||||
Our Corporate segment primarily provides management services to our operating segments, and includes results of our captive insurance provider, which primarily administers claims reinsured by third party carriers and the deductibles and retentions under those third party policies. Results of our insurance brokerage services business are also included in our Corporate segment. | |||||||||
The reportable segments follow the same accounting policies as our consolidated financial statements described in Note 2. 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. | |||||||||
Financial information relating to reportable segments was as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Total assets: | |||||||||
Southern California | $ | 387,270 | $ | 316,339 | |||||
San Diego | 170,484 | 160,593 | |||||||
Northern California | 299,867 | 286,513 | |||||||
Mountain West | 333,369 | 316,459 | |||||||
South West | 170,783 | 155,416 | |||||||
East | 5,710 | 5,096 | |||||||
Total homebuilding assets | 1,367,483 | 1,240,416 | |||||||
Corporate | 155,964 | 264,917 | |||||||
Total assets | $ | 1,523,447 | $ | 1,505,333 | |||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Inventory: | |||||||||
Southern California | $ | 305,868 | $ | 239,986 | |||||
San Diego | 153,069 | 142,395 | |||||||
Northern California | 258,726 | 249,111 | |||||||
Mountain West | 265,643 | 247,294 | |||||||
South West | 146,046 | 132,484 | |||||||
East | 2,844 | 2,002 | |||||||
Total inventory | $ | 1,132,196 | $ | 1,013,272 | |||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Revenues: | |||||||||
Southern California | $ | 46,083 | $ | 40,157 | |||||
San Diego | 17,031 | 9,629 | |||||||
Northern California | 58,358 | 27,647 | |||||||
Mountain West | 18,902 | 22,306 | |||||||
South West | 39,531 | 33,533 | |||||||
East | 0 | 1,567 | |||||||
Total homebuilding revenues | 179,905 | 134,839 | |||||||
Corporate | 210 | 121 | |||||||
Total revenues | $ | 180,115 | $ | 134,960 | |||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Income (loss) before income taxes: | |||||||||
Southern California | $ | 4,678 | $ | 7,891 | |||||
San Diego | 1,754 | (1,424 | ) | ||||||
Northern California | 14,517 | 1,893 | |||||||
Mountain West | (1,895 | ) | (2,784 | ) | |||||
South West | 575 | 1,055 | |||||||
East | (1,497 | ) | (74 | ) | |||||
Total homebuilding income (loss) before income taxes | 18,132 | 6,557 | |||||||
Corporate | 841 | 221 | |||||||
Total income (loss) before income taxes | $ | 18,973 | $ | 6,778 | |||||
Supplemental_Guarantor_Informa
Supplemental Guarantor Information | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Supplemental Guarantor Information | ' | ||||||||||||||||||||
18. Supplemental Guarantor Information | |||||||||||||||||||||
The obligations under the Secured Notes are not guaranteed by any SHLP joint venture where SHLP Corp does not own 100% of the economic interest, including those that are consolidated, and the collateral securing the Secured Notes does not include a pledge of the capital stock of any subsidiary if such pledge would result in a requirement that SHLP Corp file separate financial statements with respect to such subsidiary pursuant to Rule 3-16 of Regulation S-X under the Securities Act. | |||||||||||||||||||||
Pursuant to the indenture governing the Secured Notes, a guarantor may be released from its guarantee obligations only under certain customary circumstances specified in the indenture, namely (1) upon the sale or other disposition (including by way of consolidation or merger) of such guarantor, (2) upon the sale or disposition of all or substantially all the assets of such guarantor, (3) upon the designation of such guarantor as an unrestricted subsidiary for covenant purposes in accordance with the terms of the indenture, (4) upon a legal defeasance or covenant defeasance pursuant, or (5) upon the full satisfaction of our obligations under the indenture. | |||||||||||||||||||||
Presented herein are the condensed consolidated financial statements provided for in Rule 3-10(f) of Regulation S-K under the Securities Act for the guarantor subsidiaries and non-guarantor subsidiaries. | |||||||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||
SHLP | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Corp (a) | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 51,081 | $ | 45,042 | $ | 8,652 | $ | 0 | $ | 104,775 | |||||||||||
Restricted cash | 563 | 354 | 79 | 0 | 996 | ||||||||||||||||
Accounts and other receivables, net | 123,040 | 30,548 | 24,398 | (24,141 | ) | 153,845 | |||||||||||||||
Receivables from related parties, net | 7,231 | 13,641 | 1,116 | 0 | 21,988 | ||||||||||||||||
Inventory | 884,590 | 246,664 | 4,076 | (3,134 | ) | 1,132,196 | |||||||||||||||
Investments in unconsolidated joint ventures | 26,274 | 1,169 | 25,092 | 0 | 52,535 | ||||||||||||||||
Investments in subsidiaries | 737,766 | 71,709 | 89,615 | (899,090 | ) | 0 | |||||||||||||||
Other assets, net | 25,984 | 30,997 | 131 | 0 | 57,112 | ||||||||||||||||
Intercompany | 0 | 492,016 | 0 | (492,016 | ) | 0 | |||||||||||||||
Total assets | $ | 1,856,529 | $ | 932,140 | $ | 153,159 | $ | (1,418,381 | ) | $ | 1,523,447 | ||||||||||
Liabilities and equity | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||
Notes payable | $ | 752,092 | $ | 0 | $ | 0 | $ | 0 | $ | 752,092 | |||||||||||
Payables to related parties | 20 | 0 | 2 | 5,577 | 5,599 | ||||||||||||||||
Accounts payable | 27,860 | 16,159 | 586 | 0 | 44,605 | ||||||||||||||||
Other liabilities | 187,872 | 69,957 | 54,863 | (24,141 | ) | 288,551 | |||||||||||||||
Intercompany | 456,483 | 0 | 44,244 | (500,727 | ) | 0 | |||||||||||||||
Total liabilities | 1,424,327 | 86,116 | 99,695 | (519,291 | ) | 1,090,847 | |||||||||||||||
Equity: | |||||||||||||||||||||
SHLP equity: | |||||||||||||||||||||
Owners’ equity | 427,235 | 841,057 | 53,066 | (894,123 | ) | 427,235 | |||||||||||||||
Accumulated other comprehensive income | 4,967 | 4,967 | 0 | (4,967 | ) | 4,967 | |||||||||||||||
Total SHLP equity | 432,202 | 846,024 | 53,066 | (899,090 | ) | 432,202 | |||||||||||||||
Non-controlling interests | 0 | 0 | 398 | 0 | 398 | ||||||||||||||||
Total equity | 432,202 | 846,024 | 53,464 | (899,090 | ) | 432,600 | |||||||||||||||
Total liabilities and equity | $ | 1,856,529 | $ | 932,140 | $ | 153,159 | $ | (1,418,381 | ) | $ | 1,523,447 | ||||||||||
(a) | Includes Shea Homes Funding Corp., whose financial position at March 31, 2014 was not material. | ||||||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
SHLP | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Corp (b) | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 153,794 | $ | 43,803 | $ | 8,608 | $ | 0 | $ | 206,205 | |||||||||||
Restricted cash | 695 | 354 | 140 | 0 | 1,189 | ||||||||||||||||
Accounts and other receivables, net | 120,299 | 26,754 | 28,696 | (28,250 | ) | 147,499 | |||||||||||||||
Receivables from related parties, net | 9,251 | 22,027 | 796 | 276 | 32,350 | ||||||||||||||||
Inventory | 749,832 | 263,213 | 3,361 | (3,134 | ) | 1,013,272 | |||||||||||||||
Investments in unconsolidated joint ventures | 22,068 | 1,091 | 24,589 | 0 | 47,748 | ||||||||||||||||
Investments in subsidiaries | 748,326 | 69,755 | 90,484 | (908,565 | ) | 0 | |||||||||||||||
Other assets, net | 24,030 | 32,957 | 83 | 0 | 57,070 | ||||||||||||||||
Intercompany | 0 | 465,706 | 0 | (465,706 | ) | 0 | |||||||||||||||
Total assets | $ | 1,828,295 | $ | 925,660 | $ | 156,757 | $ | (1,405,379 | ) | $ | 1,505,333 | ||||||||||
Liabilities and equity | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||
Notes payable | $ | 751,708 | $ | 0 | $ | 0 | $ | 0 | $ | 751,708 | |||||||||||
Payables to related parties | 20 | 0 | 1 | 0 | 21 | ||||||||||||||||
Accounts payable | 36,594 | 25,334 | 418 | 0 | 62,346 | ||||||||||||||||
Other liabilities | 171,470 | 41,370 | 61,211 | (28,250 | ) | 245,801 | |||||||||||||||
Intercompany | 423,447 | 0 | 45,117 | (468,564 | ) | 0 | |||||||||||||||
Total liabilities | 1,383,239 | 66,704 | 106,747 | (496,814 | ) | 1,059,876 | |||||||||||||||
Equity: | |||||||||||||||||||||
SHLP equity: | |||||||||||||||||||||
Owners’ equity | 440,268 | 854,168 | 49,609 | (903,777 | ) | 440,268 | |||||||||||||||
Accumulated other comprehensive income | 4,788 | 4,788 | 0 | (4,788 | ) | 4,788 | |||||||||||||||
Total SHLP equity | 445,056 | 858,956 | 49,609 | (908,565 | ) | 445,056 | |||||||||||||||
Non-controlling interests | 0 | 0 | 401 | 0 | 401 | ||||||||||||||||
Total equity | 445,056 | 858,956 | 50,010 | (908,565 | ) | 445,457 | |||||||||||||||
Total liabilities and equity | $ | 1,828,295 | $ | 925,660 | $ | 156,757 | $ | (1,405,379 | ) | $ | 1,505,333 | ||||||||||
(b) | Includes Shea Homes Funding Corp., whose financial position at December 31, 2013 was not material. | ||||||||||||||||||||
Condensed Consolidating Statement of Income and Comprehensive Income | |||||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||
SHLP | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Corp (a) | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Revenues | $ | 87,594 | $ | 89,108 | $ | 3,413 | $ | 0 | $ | 180,115 | |||||||||||
Cost of sales | (70,738 | ) | (64,150 | ) | (370 | ) | 0 | (135,258 | ) | ||||||||||||
Gross margin | 16,856 | 24,958 | 3,043 | 0 | 44,857 | ||||||||||||||||
Selling expenses | (6,145 | ) | (3,904 | ) | (1,691 | ) | 0 | (11,740 | ) | ||||||||||||
General and administrative expenses | (10,544 | ) | (4,055 | ) | (705 | ) | 0 | (15,304 | ) | ||||||||||||
Equity in income (loss) from unconsolidated joint ventures, net | (501 | ) | 32 | 875 | 0 | 406 | |||||||||||||||
Equity in income from subsidiaries | 13,924 | 1,023 | 11 | (14,958 | ) | 0 | |||||||||||||||
Gain on reinsurance transaction | 0 | 0 | 1,345 | 0 | 1,345 | ||||||||||||||||
Interest expense | (118 | ) | 0 | 0 | 0 | (118 | ) | ||||||||||||||
Other income (expense), net | (2,171 | ) | 1,736 | (38 | ) | 0 | (473 | ) | |||||||||||||
Income before income taxes | 11,301 | 19,790 | 2,840 | (14,958 | ) | 18,973 | |||||||||||||||
Income tax expense | (3 | ) | (7,658 | ) | (17 | ) | 0 | (7,678 | ) | ||||||||||||
Net income | 11,298 | 12,132 | 2,823 | (14,958 | ) | 11,295 | |||||||||||||||
Less: Net loss attributable to non-controlling interests | 0 | 0 | 3 | 0 | 3 | ||||||||||||||||
Net income attributable to SHLP | $ | 11,298 | $ | 12,132 | $ | 2,826 | $ | (14,958 | ) | $ | 11,298 | ||||||||||
Comprehensive income | $ | 11,477 | $ | 12,311 | $ | 2,823 | $ | (15,137 | ) | $ | 11,474 | ||||||||||
(a) | Includes Shea Homes Funding Corp.; no significant activity occurred in 2014. | ||||||||||||||||||||
Condensed Consolidating Statement of Income and Comprehensive Income | |||||||||||||||||||||
Three Months Ended March 31, 2013 | |||||||||||||||||||||
SHLP | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Corp (b) | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Revenues | $ | 69,965 | $ | 59,175 | $ | 5,820 | $ | 0 | $ | 134,960 | |||||||||||
Cost of sales | (55,780 | ) | (47,386 | ) | (353 | ) | 95 | (103,424 | ) | ||||||||||||
Gross margin | 14,185 | 11,789 | 5,467 | 95 | 31,536 | ||||||||||||||||
Selling expenses | (5,206 | ) | (3,390 | ) | (1,558 | ) | 0 | (10,154 | ) | ||||||||||||
General and administrative expenses | (7,571 | ) | (3,497 | ) | (889 | ) | 0 | (11,957 | ) | ||||||||||||
Equity in income (loss) from unconsolidated joint ventures, net | (663 | ) | (19 | ) | 50 | 0 | (632 | ) | |||||||||||||
Equity in income (loss) from subsidiaries | 9,407 | 395 | (533 | ) | (9,269 | ) | 0 | ||||||||||||||
Gain on reinsurance transaction | 0 | 0 | 648 | 0 | 648 | ||||||||||||||||
Interest expense | (2,434 | ) | (999 | ) | 0 | 0 | (3,433 | ) | |||||||||||||
Other income (expense), net | (877 | ) | 1,241 | 501 | (95 | ) | 770 | ||||||||||||||
Income before income taxes | 6,841 | 5,520 | 3,686 | (9,269 | ) | 6,778 | |||||||||||||||
Income tax benefit (expense) | (3 | ) | 70 | (8 | ) | 0 | 59 | ||||||||||||||
Net income | 6,838 | 5,590 | 3,678 | (9,269 | ) | 6,837 | |||||||||||||||
Less: Net loss attributable to non-controlling interests | 0 | 0 | 1 | 0 | 1 | ||||||||||||||||
Net income attributable to SHLP | $ | 6,838 | $ | 5,590 | $ | 3,679 | $ | (9,269 | ) | $ | 6,838 | ||||||||||
Comprehensive income | $ | 6,968 | $ | 5,720 | $ | 3,678 | $ | (9,399 | ) | $ | 6,967 | ||||||||||
(b) | Includes Shea Homes Funding Corp.; no significant activity occurred in 2013. | ||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||
SHLP | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Corp (a) | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Operating activities | |||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (133,069 | ) | $ | 24,620 | $ | (66 | ) | $ | 5,853 | $ | (102,662 | ) | ||||||||
Investing activities | |||||||||||||||||||||
Net decrease (increase) in promissory notes from related parties | 2,583 | 8,206 | (328 | ) | 0 | 10,461 | |||||||||||||||
Investments in unconsolidated joint ventures | (4,172 | ) | (80 | ) | (200 | ) | 0 | (4,452 | ) | ||||||||||||
Other investing activities | 0 | 86 | 0 | 0 | 86 | ||||||||||||||||
Net cash provided by (used in) investing activities | (1,589 | ) | 8,212 | (528 | ) | 0 | 6,095 | ||||||||||||||
Financing activities | |||||||||||||||||||||
Intercompany | 36,808 | (31,593 | ) | 638 | (5,853 | ) | 0 | ||||||||||||||
Principal payments to financial institutions and others | (1,423 | ) | 0 | 0 | 0 | (1,423 | ) | ||||||||||||||
Contributions from owners | 945 | 0 | 0 | 0 | 945 | ||||||||||||||||
Distributions to owners | (4,385 | ) | 0 | 0 | 0 | (4,385 | ) | ||||||||||||||
Net cash provided by (used in) financing activities | 31,945 | (31,593 | ) | 638 | (5,853 | ) | (4,863 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | (102,713 | ) | 1,239 | 44 | 0 | (101,430 | ) | ||||||||||||||
Cash and cash equivalents at beginning of period | 153,794 | 43,803 | 8,608 | 0 | 206,205 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 51,081 | $ | 45,042 | $ | 8,652 | $ | 0 | $ | 104,775 | |||||||||||
(a) | Includes Shea Homes Funding Corp.; no significant activity occurred in 2014. | ||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
Three Months Ended March 31, 2013 | |||||||||||||||||||||
SHLP | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Corp (a) | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Operating activities | |||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (16,223 | ) | $ | (16,369 | ) | $ | 2,633 | $ | 1,996 | $ | (27,963 | ) | ||||||||
Investing activities | |||||||||||||||||||||
Investments in unconsolidated joint ventures | (4,011 | ) | (17 | ) | 0 | 0 | (4,028 | ) | |||||||||||||
Other investing activities | 295 | 3,159 | 500 | 0 | 3,954 | ||||||||||||||||
Net cash provided by (used in) investing activities | (3,716 | ) | 3,142 | 500 | 0 | (74 | ) | ||||||||||||||
Financing activities | |||||||||||||||||||||
Principal payments to financial institutions and others | (241 | ) | 0 | 0 | 0 | (241 | ) | ||||||||||||||
Intercompany | 14,658 | (20,279 | ) | 7,617 | (1,996 | ) | 0 | ||||||||||||||
Net cash provided by (used in) financing activities | 14,417 | (20,279 | ) | 7,617 | (1,996 | ) | (241 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | (5,522 | ) | (33,506 | ) | 10,750 | 0 | (28,278 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | 216,914 | 48,895 | 13,947 | 0 | 279,756 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 211,392 | $ | 15,389 | $ | 24,697 | $ | 0 | $ | 251,478 | |||||||||||
(b) | Includes Shea Homes Funding Corp.; no significant activity occurred in 2013. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Inventory | ' |
Inventory | |
We capitalize preacquisition, land, development and other allocated costs, including interest during development and home construction. Applicable costs incurred after development or construction is substantially complete are charged to selling, general and administrative, and other expenses as appropriate. Preacquisition costs, including non-refundable land deposits, are expensed to other income (expense), net when we determine continuation of the respective project is not probable. | |
Land, development and other indirect costs are typically allocated to inventory using a methodology that approximates the relative-sales-value method. Home construction costs are recorded using the specific identification method. Cost of sales for homes closed includes the specific construction costs of each home and all applicable land acquisition, land development and related costs (both incurred and estimated to be incurred) based upon the total number of homes expected to close in each community. Changes to estimated total development costs subsequent to initial home closings in a community are generally allocated on a relative-sales-value method to remaining homes in the community. | |
Inventory is stated at cost, unless the carrying amount is determined not to be recoverable, in which case inventory is adjusted to fair value or fair value less cost to sell. Quarterly, we review our real estate assets at each community for indicators of impairment. Real estate assets include projects actively selling, under development, held for future development or held for sale. Indicators of impairment include, but are not limited to, significant decreases in local housing market values and prices of comparable homes, significant decreases in gross margins and sales absorption rates, costs in excess of budget, and actual or projected cash flow losses. | |
If there are indications of impairment, we analyze the budgets and cash flows of our real estate assets and compare the estimated remaining undiscounted future cash flows of the community to the asset’s carrying value. If the undiscounted cash flows exceed the asset’s carrying value, no impairment adjustment is required. If the undiscounted cash flows are less than the asset’s carrying value, the asset is deemed impaired and adjusted to fair value. For land held for sale, if the fair value less costs to sell exceed the asset’s carrying value, no impairment adjustment is required. These impairment evaluations require use of estimates and assumptions regarding future conditions, including timing and amounts of development costs and sales prices of real estate assets, to determine if estimated future undiscounted cash flows will be sufficient to recover the asset’s carrying value. | |
When estimating undiscounted cash flows of a community, various assumptions are made, including: (i) the number of homes available and the expected prices and incentives offered by us or builders in other communities, and future 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, home construction, interest, indirect construction and overhead, and selling and marketing costs; (iv) alternative product offerings that could impact 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 rates have a direct impact on the estimated price of a home, the level of time sensitive costs (such as indirect construction, overhead and interest), and selling and marketing costs (such as model maintenance and advertising). Depending on the underlying objective of the community, assumptions could have a significant impact on the projected cash flows. For example, if our objective is to preserve operating margins, our cash flows will be different than if the objective is to increase sales. These objectives may vary significantly by community over time. | |
If assets are considered impaired, the impairment charge is the amount the asset’s carrying value exceeds its fair value. Fair value is determined based on estimated future cash flows discounted for inherent risks associated with real estate assets or other valuation techniques. These discounted cash flows are impacted by expected risk based on estimated land development, 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. The discount rate used in determining each asset’s fair value depends on the community’s projected life and development stage. | |
Completed Operations Claim Costs | ' |
Completed Operations Claim Costs | |
We maintain, and require our subcontractors to maintain, general liability insurance which includes coverage for completed operations losses and damages. Most subcontractors carry this insurance through our “rolling wrap-up” insurance program, where our risks and risks of participating subcontractors are insured through a common set of master policies. | |
Completed operations claims reserves primarily represent claims for property damage to completed homes and projects outside of our one-to-two year warranty period. Specific terms and conditions of completed operations warranties vary depending on the market in which homes are closed and can range up to 12 years from the closing of a home. | |
We record expenses and liabilities for estimated costs of potential completed operations claims based upon aggregated loss experience, which includes an estimate of completed operations claims incurred but not reported and is actuarially estimated using individual case-basis valuations and statistical analysis. These estimates make up our entire reserve and are subject to a high degree of variability due to uncertainties such as trends in completed operations claims related to our markets and products built, changes in claims reporting and settlement patterns, third party recoveries, insurance industry practices, insurance regulations and legal precedent. Because state regulations vary, completed operations claims are reported and resolved over an extended period, sometimes exceeding 12 years. As a result, actual costs may differ significantly from estimates. | |
The actuarial analyses that determine these incurred but not reported claims consider various factors, including frequency and severity of losses, which are based on our historical claims experience supplemented by industry data. The actuarial analyses of these claims and reserves also consider historical third party recovery rates and claims management expenses. Due to inherent uncertainties related to each of these factors, periodic changes to such factors based on updated relevant information could result in actual costs differing significantly from estimates. | |
In accordance with our underlying completed operations insurance policies, completed operations claims costs are recoverable from our subcontractors or insurance carriers. Completed operations claims through July 31, 2009 are insured or reinsured with third-party insurance carriers and completed operations claims commencing August 1, 2009 are insured with third-party and affiliate insurance carriers. | |
Revenues | ' |
Revenues | |
In accordance with Accounting Standards Codification (“ASC”) 360, revenues from housing and other real estate sales are recognized when the respective units close. Housing and other real estate sales close when all conditions of escrow are met, including delivery of the home or other real estate asset, title passage, appropriate consideration is received or collection of associated receivables, if any, is reasonably assured and when we have no other continuing involvement in the asset. Sales incentives are a reduction of revenues when the respective unit is closed. | |
Income Taxes | ' |
Income Taxes | |
SHLP is treated as a partnership for income tax purposes. As a limited partnership, SHLP is subject to certain minimal state taxes and fees; however, taxes on income realized by SHLP are generally the obligation of the Partners and their owners. | |
SHI and PIC are C corporations. Federal and state income taxes are provided for these entities in accordance with ASC 740. The provision for, or benefit from, income taxes is calculated using the asset and liability method, whereby deferred tax assets and liabilities are recorded based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect the year in which differences are expected to reverse. | |
Deferred tax assets are evaluated to determine whether a valuation allowance should be established based on our determination of whether it is more likely than not some or all of the deferred tax asset will not be realized. The ultimate realization of deferred tax assets depends primarily on generation of future taxable income during periods in which those temporary differences become deductible. The assessment of a valuation allowance includes giving appropriate consideration to all positive and negative evidence related to the realization of the deferred tax asset. This assessment considers, among other things, the nature, frequency and severity of current and cumulative losses over recent years, forecasts of future profitability, the duration of statutory carryforward periods, our experience with operating loss and tax credit carryforwards before they expire, and tax planning alternatives. Judgment is required in determining future tax consequences of events that have been recognized in the consolidated financial statements and/or tax returns. Differences between anticipated and actual outcomes of these future tax consequences could have a material impact on our consolidated financial position or results of operations. | |
We follow certain accounting guidance with respect to how uncertain tax positions should be accounted for and disclosed in the consolidated financial statements. The guidance requires the assessment of tax positions taken or expected to be taken in the tax returns and to determine whether the tax positions are “more-likely-than-not” of being sustained upon examination by the applicable tax authority. Tax positions deemed to meet the more-likely-than-not criteria would be recorded as a tax benefit or expense in the current year. We are required to assess open tax years, as defined by the statute of limitations, for all major jurisdictions, including federal and certain states. Open tax years are those that are open for examination by taxing authorities. We have examinations in progress but believe there are no uncertain tax positions that do not meet the more-likely-than-not level of authority (see Note 13). |
Fair_Value_Disclosures_Tables
Fair Value Disclosures (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Net Book Values and Estimated Fair Values of Notes Payable | ' | ||||||||||||||||
At March 31, 2014 and December 31, 2013, as required by ASC 825, the following presents net book values and estimated fair values of notes payable. | |||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||
Net Book | Estimated | Net Book | Estimated | ||||||||||||||
Value | Fair Value | Value | Fair Value | ||||||||||||||
(In thousands) | |||||||||||||||||
$750,000 senior secured notes | $ | 750,000 | $ | 825,000 | $ | 750,000 | $ | 830,625 | |||||||||
Secured promissory notes | $ | 2,092 | $ | 2,092 | $ | 1,708 | $ | 1,708 |
Accounts_and_Other_Receivables1
Accounts and Other Receivables, net (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Accounts and Other Receivables | ' | ||||||||
At March 31, 2014 and December 31, 2013, accounts and other receivables, net were as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Insurance receivables | $ | 137,644 | $ | 138,610 | |||||
Escrow receivables | 7,154 | 586 | |||||||
Notes receivables | 4,308 | 3,155 | |||||||
Development receivables | 1,932 | 3,093 | |||||||
Other receivables | 4,718 | 4,031 | |||||||
Reserve | (1,911 | ) | (1,976 | ) | |||||
Total accounts and other receivables, net | $ | 153,845 | $ | 147,499 | |||||
Inventory_Tables
Inventory (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Summary of Inventory | ' | ||||||||
At March 31, 2014 and December 31, 2013, inventory was as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Model homes | $ | 104,549 | $ | 87,728 | |||||
Completed homes for sale | 34,237 | 20,285 | |||||||
Homes under construction | 299,579 | 257,662 | |||||||
Lots available for construction | 354,471 | 342,622 | |||||||
Land under development | 154,801 | 122,257 | |||||||
Land held for future development | 80,413 | 70,618 | |||||||
Land held for sale, including water system connection rights | 82,595 | 79,102 | |||||||
Land deposits and preacquisition costs | 21,551 | 32,998 | |||||||
Total inventory | $ | 1,132,196 | $ | 1,013,272 | |||||
Interest Incurred, Capitalized and Expensed | ' | ||||||||
For the three months ended March 31, 2014 and 2013, interest incurred, capitalized and expensed was as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Interest incurred | $ | 16,929 | $ | 16,768 | |||||
Interest expensed (a) | $ | 118 | $ | 3,433 | |||||
Interest capitalized as a cost of inventory during the period | $ | 15,936 | $ | 13,078 | |||||
Interest previously capitalized as a cost of inventory, included in cost of sales | $ | (10,844 | ) | $ | (9,511 | ) | |||
Interest capitalized in ending inventory (b) | $ | 107,192 | $ | 106,416 | |||||
Interest capitalized as a cost of investments in unconsolidated joint ventures during the period | $ | 875 | $ | 257 | |||||
Interest previously capitalized as a cost of investments in unconsolidated joint ventures, included in equity in income (loss) from unconsolidated joint ventures | $ | (267 | ) | $ | (257 | ) | |||
Interest capitalized in ending investments in unconsolidated joint ventures | $ | 1,697 | $ | 0 | |||||
(a) | For the three-months ended March 31, 2014, qualifying assets exceeded debt, therefore no interest on the Secured Notes was expensed; interest expense represents fees charged on the unused revolving credit facility that is not considered a cost of borrowing and is not capitalized. For the three months ended March 31, 2013, assets qualifying for interest capitalization were less than debt; therefore, non-qualifying interest was expensed. | ||||||||
(b) | Inventory impairment charges were recorded against total inventory of the respective community in prior periods. Capitalized interest reflects the gross amount of capitalized interest as impairment charges recognized were generally not allocated to specific components of inventory. |
Investments_in_Unconsolidated_1
Investments in Unconsolidated Joint Ventures (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Equity Method Investments Summarized Notes Payable Information | ' | ||||||||
At March 31, 2014 and December 31, 2013, total unconsolidated joint ventures’ notes payable was as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Bank and seller notes payable: | |||||||||
Guaranteed (subject to remargin obligations) | $ | 49,663 | $ | 52,515 | |||||
Non-Guaranteed | 11,010 | 10,073 | |||||||
Total bank and seller notes payable (a) | 60,673 | 62,588 | |||||||
Partner notes payable (b): | |||||||||
Unsecured | 15,844 | 16,001 | |||||||
Total unconsolidated joint venture notes payable | $ | 76,517 | $ | 78,589 | |||||
Other unconsolidated joint venture notes payable (c) | $ | 12,051 | $ | 55,441 | |||||
(a) | All bank seller notes were secured by real property. | ||||||||
(b) | No guarantees were provided on partner notes payable. In January 2014, a $3.2 million partner note from one joint venture was paid off. | ||||||||
(c) | Through indirect effective ownership in two joint ventures of 12.3% and 0.0003%, respectively, that had bank notes payable secured by real property in which we have not provided any guarantee. |
Other_Assets_Net_Tables
Other Assets, Net (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Other Assets | ' | ||||||||
At March 31, 2014 and December 31, 2013, other assets were as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Income tax receivable | $ | 0 | $ | 2,199 | |||||
Deferred tax asset (see Note 13) | 15,898 | 16,337 | |||||||
Investments | 9,648 | 9,439 | |||||||
Property and equipment, net | 4,476 | 4,103 | |||||||
Capitalized loan origination fees | 8,152 | 11,089 | |||||||
Prepaid bank fees | 38 | 152 | |||||||
Deposits in lieu of bonds and letters of credit | 10,815 | 10,294 | |||||||
Prepaid insurance | 3,549 | 2,460 | |||||||
Other | 4,536 | 997 | |||||||
Total other assets, net | $ | 57,112 | $ | 57,070 | |||||
Notes_Payable_Tables
Notes Payable (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Summary of Notes Payable | ' | ||||||||
At March 31, 2014 and December 31, 2013, notes payable were as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
$750.0 million 8.625% senior secured notes (the “Secured Notes”), due May 2019 | $ | 750,000 | $ | 750,000 | |||||
$125.0 million secured revolving credit facility (the “Revolver”), interest currently at the Eurodollar rate plus 2.75%, matures March 1, 2016 | 0 | 0 | |||||||
Promissory notes, interest ranging from 1% to 6%, maturing through 2014, secured by deeds of trust on inventory | 2,092 | 1,708 | |||||||
Total notes payable | $ | 752,092 | $ | 751,708 | |||||
Other_Liabilities_Tables
Other Liabilities (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Summary of Other Liabilities | ' | ||||||||
At March 31, 2014 and December 31, 2013, other liabilities were as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Completed operations | $ | 137,644 | $ | 138,610 | |||||
Warranty reserves | 21,181 | 20,648 | |||||||
Income tax payable | 3,942 | 0 | |||||||
Accrued profit and revenue participation arrangements (see Note 12) | 21,124 | 678 | |||||||
Deferred revenue/gain | 28,182 | 29,358 | |||||||
Provisions for closed homes/communities | 9,322 | 10,591 | |||||||
Deposits (primarily homebuyer) | 17,034 | 14,281 | |||||||
Legal reserves | 4,748 | 4,576 | |||||||
Accrued interest | 24,258 | 8,086 | |||||||
Accrued compensation and benefits | 9,902 | 9,389 | |||||||
Distributions payable | 2,441 | 2,531 | |||||||
Deficit Distributions (see Note 7) | 536 | 351 | |||||||
Other | 8,237 | 6,702 | |||||||
Total other liabilities | $ | 288,551 | $ | 245,801 | |||||
Changes in Completed Operations Reserves | ' | ||||||||
For the three months ended March 31, 2014 and 2013, changes in completed operations reserves were as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Balance, beginning of the period | $ | 138,610 | $ | 131,519 | |||||
Reserves provided | 3,413 | 1,972 | |||||||
Claims paid | (4,379 | ) | (2,241 | ) | |||||
Balance, end of the period | $ | 137,644 | $ | 131,250 | |||||
Changes in Warranty Liabilities | ' | ||||||||
For the three months ended March 31, 2014 and 2013, changes in warranty liability were as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Balance, beginning of the period | $ | 20,648 | $ | 17,749 | |||||
Provision for warranties | 3,309 | 1,745 | |||||||
Warranty costs paid | (2,776 | ) | (1,567 | ) | |||||
Balance, end of the period | $ | 21,181 | $ | 17,927 | |||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Receivables from Related Parties | ' | ||||||||
At March 31, 2014 and December 31, 2013, receivables from related parties, net were as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Note receivable from JFSCI | $ | 13,378 | $ | 21,588 | |||||
Notes receivable from unconsolidated joint ventures | 1,370 | 1,037 | |||||||
Notes receivable from related parties | 16,256 | 18,822 | |||||||
Reserves for note receivables from related parties | (12,860 | ) | (12,842 | ) | |||||
Receivables from related parties | 3,844 | 3,745 | |||||||
Total receivables from related parties, net | $ | 21,988 | $ | 32,350 | |||||
Contingencies_and_Commitments_
Contingencies and Commitments (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Contingent Liabilities and Commitments | ' | ||||||||
At March 31, 2014 and December 31, 2013, certain unrecorded contingent liabilities and commitments were as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Tax Court CCM case (capped at $70.0 million, see Note 13) | $ | 70,000 | $ | 70,000 | |||||
Remargin obligations and guarantees for unconsolidated joint ventures (see Note 7) | 28,554 | 28,684 | |||||||
Costs to complete on surety bonds for Company projects | 79,258 | 77,276 | |||||||
Costs to complete on surety bonds for joint venture projects | 22,807 | 22,845 | |||||||
Costs to complete on surety bonds for related party projects | 1,614 | 1,614 | |||||||
Water system connection rights purchase obligation | 30,506 | 30,506 | |||||||
Total unrecorded contingent liabilities and commitments | $ | 232,739 | $ | 230,925 | |||||
Supplemental_Disclosure_to_Con1
Supplemental Disclosure to Consolidated Statements of Cash Flows (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Consolidated Statement of Cash Flow Supplemental Disclosure | ' | ||||||||
Supplemental disclosures to the consolidated statements of cash flows were as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Supplemental disclosure of cash flow information | |||||||||
Income taxes paid | $ | 207 | $ | 25 | |||||
Interest paid, net of amounts capitalized | $ | 0 | $ | 109 | |||||
Supplemental disclosure of noncash activities | |||||||||
Unrealized gain on available-for-sale investments, net | $ | 179 | $ | 130 | |||||
Reclassification of Deficit Distributions to unconsolidated joint ventures from other liabilities | $ | 184 | $ | 0 | |||||
Purchase of land in exchange for note payable | $ | 1,807 | $ | 929 | |||||
Distribution to Owners for assumption of liability and revenue participation payments for land purchased from a related party under common control | $ | (20,891 | ) | $ | 0 |
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Financial Information Related to Reportable Segments | ' | ||||||||
Financial information relating to reportable segments was as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Total assets: | |||||||||
Southern California | $ | 387,270 | $ | 316,339 | |||||
San Diego | 170,484 | 160,593 | |||||||
Northern California | 299,867 | 286,513 | |||||||
Mountain West | 333,369 | 316,459 | |||||||
South West | 170,783 | 155,416 | |||||||
East | 5,710 | 5,096 | |||||||
Total homebuilding assets | 1,367,483 | 1,240,416 | |||||||
Corporate | 155,964 | 264,917 | |||||||
Total assets | $ | 1,523,447 | $ | 1,505,333 | |||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Inventory: | |||||||||
Southern California | $ | 305,868 | $ | 239,986 | |||||
San Diego | 153,069 | 142,395 | |||||||
Northern California | 258,726 | 249,111 | |||||||
Mountain West | 265,643 | 247,294 | |||||||
South West | 146,046 | 132,484 | |||||||
East | 2,844 | 2,002 | |||||||
Total inventory | $ | 1,132,196 | $ | 1,013,272 | |||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Revenues: | |||||||||
Southern California | $ | 46,083 | $ | 40,157 | |||||
San Diego | 17,031 | 9,629 | |||||||
Northern California | 58,358 | 27,647 | |||||||
Mountain West | 18,902 | 22,306 | |||||||
South West | 39,531 | 33,533 | |||||||
East | 0 | 1,567 | |||||||
Total homebuilding revenues | 179,905 | 134,839 | |||||||
Corporate | 210 | 121 | |||||||
Total revenues | $ | 180,115 | $ | 134,960 | |||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Income (loss) before income taxes: | |||||||||
Southern California | $ | 4,678 | $ | 7,891 | |||||
San Diego | 1,754 | (1,424 | ) | ||||||
Northern California | 14,517 | 1,893 | |||||||
Mountain West | (1,895 | ) | (2,784 | ) | |||||
South West | 575 | 1,055 | |||||||
East | (1,497 | ) | (74 | ) | |||||
Total homebuilding income (loss) before income taxes | 18,132 | 6,557 | |||||||
Corporate | 841 | 221 | |||||||
Total income (loss) before income taxes | $ | 18,973 | $ | 6,778 | |||||
Supplemental_Guarantor_Informa1
Supplemental Guarantor Information (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Condensed Consolidating Balance Sheet | ' | ||||||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||
SHLP | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Corp (a) | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 51,081 | $ | 45,042 | $ | 8,652 | $ | 0 | $ | 104,775 | |||||||||||
Restricted cash | 563 | 354 | 79 | 0 | 996 | ||||||||||||||||
Accounts and other receivables, net | 123,040 | 30,548 | 24,398 | (24,141 | ) | 153,845 | |||||||||||||||
Receivables from related parties, net | 7,231 | 13,641 | 1,116 | 0 | 21,988 | ||||||||||||||||
Inventory | 884,590 | 246,664 | 4,076 | (3,134 | ) | 1,132,196 | |||||||||||||||
Investments in unconsolidated joint ventures | 26,274 | 1,169 | 25,092 | 0 | 52,535 | ||||||||||||||||
Investments in subsidiaries | 737,766 | 71,709 | 89,615 | (899,090 | ) | 0 | |||||||||||||||
Other assets, net | 25,984 | 30,997 | 131 | 0 | 57,112 | ||||||||||||||||
Intercompany | 0 | 492,016 | 0 | (492,016 | ) | 0 | |||||||||||||||
Total assets | $ | 1,856,529 | $ | 932,140 | $ | 153,159 | $ | (1,418,381 | ) | $ | 1,523,447 | ||||||||||
Liabilities and equity | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||
Notes payable | $ | 752,092 | $ | 0 | $ | 0 | $ | 0 | $ | 752,092 | |||||||||||
Payables to related parties | 20 | 0 | 2 | 5,577 | 5,599 | ||||||||||||||||
Accounts payable | 27,860 | 16,159 | 586 | 0 | 44,605 | ||||||||||||||||
Other liabilities | 187,872 | 69,957 | 54,863 | (24,141 | ) | 288,551 | |||||||||||||||
Intercompany | 456,483 | 0 | 44,244 | (500,727 | ) | 0 | |||||||||||||||
Total liabilities | 1,424,327 | 86,116 | 99,695 | (519,291 | ) | 1,090,847 | |||||||||||||||
Equity: | |||||||||||||||||||||
SHLP equity: | |||||||||||||||||||||
Owners’ equity | 427,235 | 841,057 | 53,066 | (894,123 | ) | 427,235 | |||||||||||||||
Accumulated other comprehensive income | 4,967 | 4,967 | 0 | (4,967 | ) | 4,967 | |||||||||||||||
Total SHLP equity | 432,202 | 846,024 | 53,066 | (899,090 | ) | 432,202 | |||||||||||||||
Non-controlling interests | 0 | 0 | 398 | 0 | 398 | ||||||||||||||||
Total equity | 432,202 | 846,024 | 53,464 | (899,090 | ) | 432,600 | |||||||||||||||
Total liabilities and equity | $ | 1,856,529 | $ | 932,140 | $ | 153,159 | $ | (1,418,381 | ) | $ | 1,523,447 | ||||||||||
(a) | Includes Shea Homes Funding Corp., whose financial position at March 31, 2014 was not material. | ||||||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
SHLP | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Corp (b) | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 153,794 | $ | 43,803 | $ | 8,608 | $ | 0 | $ | 206,205 | |||||||||||
Restricted cash | 695 | 354 | 140 | 0 | 1,189 | ||||||||||||||||
Accounts and other receivables, net | 120,299 | 26,754 | 28,696 | (28,250 | ) | 147,499 | |||||||||||||||
Receivables from related parties, net | 9,251 | 22,027 | 796 | 276 | 32,350 | ||||||||||||||||
Inventory | 749,832 | 263,213 | 3,361 | (3,134 | ) | 1,013,272 | |||||||||||||||
Investments in unconsolidated joint ventures | 22,068 | 1,091 | 24,589 | 0 | 47,748 | ||||||||||||||||
Investments in subsidiaries | 748,326 | 69,755 | 90,484 | (908,565 | ) | 0 | |||||||||||||||
Other assets, net | 24,030 | 32,957 | 83 | 0 | 57,070 | ||||||||||||||||
Intercompany | 0 | 465,706 | 0 | (465,706 | ) | 0 | |||||||||||||||
Total assets | $ | 1,828,295 | $ | 925,660 | $ | 156,757 | $ | (1,405,379 | ) | $ | 1,505,333 | ||||||||||
Liabilities and equity | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||
Notes payable | $ | 751,708 | $ | 0 | $ | 0 | $ | 0 | $ | 751,708 | |||||||||||
Payables to related parties | 20 | 0 | 1 | 0 | 21 | ||||||||||||||||
Accounts payable | 36,594 | 25,334 | 418 | 0 | 62,346 | ||||||||||||||||
Other liabilities | 171,470 | 41,370 | 61,211 | (28,250 | ) | 245,801 | |||||||||||||||
Intercompany | 423,447 | 0 | 45,117 | (468,564 | ) | 0 | |||||||||||||||
Total liabilities | 1,383,239 | 66,704 | 106,747 | (496,814 | ) | 1,059,876 | |||||||||||||||
Equity: | |||||||||||||||||||||
SHLP equity: | |||||||||||||||||||||
Owners’ equity | 440,268 | 854,168 | 49,609 | (903,777 | ) | 440,268 | |||||||||||||||
Accumulated other comprehensive income | 4,788 | 4,788 | 0 | (4,788 | ) | 4,788 | |||||||||||||||
Total SHLP equity | 445,056 | 858,956 | 49,609 | (908,565 | ) | 445,056 | |||||||||||||||
Non-controlling interests | 0 | 0 | 401 | 0 | 401 | ||||||||||||||||
Total equity | 445,056 | 858,956 | 50,010 | (908,565 | ) | 445,457 | |||||||||||||||
Total liabilities and equity | $ | 1,828,295 | $ | 925,660 | $ | 156,757 | $ | (1,405,379 | ) | $ | 1,505,333 | ||||||||||
(b) | Includes Shea Homes Funding Corp., whose financial position at December 31, 2013 was not material. | ||||||||||||||||||||
Condensed Consolidating Statement of Operations and Comprehensive income (Loss) | ' | ||||||||||||||||||||
Condensed Consolidating Statement of Income and Comprehensive Income | |||||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||
SHLP | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Corp (a) | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Revenues | $ | 87,594 | $ | 89,108 | $ | 3,413 | $ | 0 | $ | 180,115 | |||||||||||
Cost of sales | (70,738 | ) | (64,150 | ) | (370 | ) | 0 | (135,258 | ) | ||||||||||||
Gross margin | 16,856 | 24,958 | 3,043 | 0 | 44,857 | ||||||||||||||||
Selling expenses | (6,145 | ) | (3,904 | ) | (1,691 | ) | 0 | (11,740 | ) | ||||||||||||
General and administrative expenses | (10,544 | ) | (4,055 | ) | (705 | ) | 0 | (15,304 | ) | ||||||||||||
Equity in income (loss) from unconsolidated joint ventures, net | (501 | ) | 32 | 875 | 0 | 406 | |||||||||||||||
Equity in income from subsidiaries | 13,924 | 1,023 | 11 | (14,958 | ) | 0 | |||||||||||||||
Gain on reinsurance transaction | 0 | 0 | 1,345 | 0 | 1,345 | ||||||||||||||||
Interest expense | (118 | ) | 0 | 0 | 0 | (118 | ) | ||||||||||||||
Other income (expense), net | (2,171 | ) | 1,736 | (38 | ) | 0 | (473 | ) | |||||||||||||
Income before income taxes | 11,301 | 19,790 | 2,840 | (14,958 | ) | 18,973 | |||||||||||||||
Income tax expense | (3 | ) | (7,658 | ) | (17 | ) | 0 | (7,678 | ) | ||||||||||||
Net income | 11,298 | 12,132 | 2,823 | (14,958 | ) | 11,295 | |||||||||||||||
Less: Net loss attributable to non-controlling interests | 0 | 0 | 3 | 0 | 3 | ||||||||||||||||
Net income attributable to SHLP | $ | 11,298 | $ | 12,132 | $ | 2,826 | $ | (14,958 | ) | $ | 11,298 | ||||||||||
Comprehensive income | $ | 11,477 | $ | 12,311 | $ | 2,823 | $ | (15,137 | ) | $ | 11,474 | ||||||||||
(a) | Includes Shea Homes Funding Corp.; no significant activity occurred in 2014. | ||||||||||||||||||||
Condensed Consolidating Statement of Income and Comprehensive Income | |||||||||||||||||||||
Three Months Ended March 31, 2013 | |||||||||||||||||||||
SHLP | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Corp (b) | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Revenues | $ | 69,965 | $ | 59,175 | $ | 5,820 | $ | 0 | $ | 134,960 | |||||||||||
Cost of sales | (55,780 | ) | (47,386 | ) | (353 | ) | 95 | (103,424 | ) | ||||||||||||
Gross margin | 14,185 | 11,789 | 5,467 | 95 | 31,536 | ||||||||||||||||
Selling expenses | (5,206 | ) | (3,390 | ) | (1,558 | ) | 0 | (10,154 | ) | ||||||||||||
General and administrative expenses | (7,571 | ) | (3,497 | ) | (889 | ) | 0 | (11,957 | ) | ||||||||||||
Equity in income (loss) from unconsolidated joint ventures, net | (663 | ) | (19 | ) | 50 | 0 | (632 | ) | |||||||||||||
Equity in income (loss) from subsidiaries | 9,407 | 395 | (533 | ) | (9,269 | ) | 0 | ||||||||||||||
Gain on reinsurance transaction | 0 | 0 | 648 | 0 | 648 | ||||||||||||||||
Interest expense | (2,434 | ) | (999 | ) | 0 | 0 | (3,433 | ) | |||||||||||||
Other income (expense), net | (877 | ) | 1,241 | 501 | (95 | ) | 770 | ||||||||||||||
Income before income taxes | 6,841 | 5,520 | 3,686 | (9,269 | ) | 6,778 | |||||||||||||||
Income tax benefit (expense) | (3 | ) | 70 | (8 | ) | 0 | 59 | ||||||||||||||
Net income | 6,838 | 5,590 | 3,678 | (9,269 | ) | 6,837 | |||||||||||||||
Less: Net loss attributable to non-controlling interests | 0 | 0 | 1 | 0 | 1 | ||||||||||||||||
Net income attributable to SHLP | $ | 6,838 | $ | 5,590 | $ | 3,679 | $ | (9,269 | ) | $ | 6,838 | ||||||||||
Comprehensive income | $ | 6,968 | $ | 5,720 | $ | 3,678 | $ | (9,399 | ) | $ | 6,967 | ||||||||||
(b) | Includes Shea Homes Funding Corp.; no significant activity occurred in 2013. | ||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | ' | ||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||
SHLP | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Corp (a) | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Operating activities | |||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (133,069 | ) | $ | 24,620 | $ | (66 | ) | $ | 5,853 | $ | (102,662 | ) | ||||||||
Investing activities | |||||||||||||||||||||
Net decrease (increase) in promissory notes from related parties | 2,583 | 8,206 | (328 | ) | 0 | 10,461 | |||||||||||||||
Investments in unconsolidated joint ventures | (4,172 | ) | (80 | ) | (200 | ) | 0 | (4,452 | ) | ||||||||||||
Other investing activities | 0 | 86 | 0 | 0 | 86 | ||||||||||||||||
Net cash provided by (used in) investing activities | (1,589 | ) | 8,212 | (528 | ) | 0 | 6,095 | ||||||||||||||
Financing activities | |||||||||||||||||||||
Intercompany | 36,808 | (31,593 | ) | 638 | (5,853 | ) | 0 | ||||||||||||||
Principal payments to financial institutions and others | (1,423 | ) | 0 | 0 | 0 | (1,423 | ) | ||||||||||||||
Contributions from owners | 945 | 0 | 0 | 0 | 945 | ||||||||||||||||
Distributions to owners | (4,385 | ) | 0 | 0 | 0 | (4,385 | ) | ||||||||||||||
Net cash provided by (used in) financing activities | 31,945 | (31,593 | ) | 638 | (5,853 | ) | (4,863 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | (102,713 | ) | 1,239 | 44 | 0 | (101,430 | ) | ||||||||||||||
Cash and cash equivalents at beginning of period | 153,794 | 43,803 | 8,608 | 0 | 206,205 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 51,081 | $ | 45,042 | $ | 8,652 | $ | 0 | $ | 104,775 | |||||||||||
(a) | Includes Shea Homes Funding Corp.; no significant activity occurred in 2014. | ||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
Three Months Ended March 31, 2013 | |||||||||||||||||||||
SHLP | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Corp (a) | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Operating activities | |||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (16,223 | ) | $ | (16,369 | ) | $ | 2,633 | $ | 1,996 | $ | (27,963 | ) | ||||||||
Investing activities | |||||||||||||||||||||
Investments in unconsolidated joint ventures | (4,011 | ) | (17 | ) | 0 | 0 | (4,028 | ) | |||||||||||||
Other investing activities | 295 | 3,159 | 500 | 0 | 3,954 | ||||||||||||||||
Net cash provided by (used in) investing activities | (3,716 | ) | 3,142 | 500 | 0 | (74 | ) | ||||||||||||||
Financing activities | |||||||||||||||||||||
Principal payments to financial institutions and others | (241 | ) | 0 | 0 | 0 | (241 | ) | ||||||||||||||
Intercompany | 14,658 | (20,279 | ) | 7,617 | (1,996 | ) | 0 | ||||||||||||||
Net cash provided by (used in) financing activities | 14,417 | (20,279 | ) | 7,617 | (1,996 | ) | (241 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | (5,522 | ) | (33,506 | ) | 10,750 | 0 | (28,278 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | 216,914 | 48,895 | 13,947 | 0 | 279,756 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 211,392 | $ | 15,389 | $ | 24,697 | $ | 0 | $ | 251,478 | |||||||||||
(b) | Includes Shea Homes Funding Corp.; no significant activity occurred in 2013. |
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Detail) (JFSCI) | Mar. 31, 2014 |
JFSCI | ' |
Schedule of Equity Method Investments [Line Items] | ' |
Ownership Interest | 96.00% |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2014 | |
Minimum | ' |
Significant Accounting Policies [Line Items] | ' |
Operations claims standard warranty period | '1 year |
Maximum | ' |
Significant Accounting Policies [Line Items] | ' |
Operations claims standard warranty period | '2 years |
Completed operations extended warranty period | '12 years |
Restricted_Cash_Additional_Inf
Restricted Cash - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash | $1 | $1.20 |
Net_Book_Values_and_Estimated_
Net Book Values and Estimated Fair Values of Notes Payable (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Net Book Value | $752,092 | $751,708 |
Senior Secured Notes Due | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Net Book Value | 750,000 | 750,000 |
Estimated Fair Value | 825,000 | 830,625 |
Secured Promissory Notes | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Net Book Value | 2,092 | 1,708 |
Estimated Fair Value | $2,092 | $1,708 |
Net_Book_Values_and_Estimated_1
Net Book Values and Estimated Fair Values of Notes Payable (Parenthetical) (Detail) (Senior Secured Notes Due, USD $) | Mar. 31, 2014 | Dec. 31, 2013 | 10-May-11 |
In Thousands, unless otherwise specified | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Principal amount | $750,000 | $750,000 | $750,000 |
Fair Value, Inputs, Level 2 | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Principal amount | $750,000 | $750,000 | ' |
Fair_Value_Disclosures_Additio
Fair Value Disclosures - Additional Information (Detail) (Senior Secured Notes Due, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Interest rate | 8.63% | 8.63% |
Maturity period | '2019-05 | '2019-05 |
Fair Value, Inputs, Level 2 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Net Book Value | 750 | ' |
Interest rate | 8.63% | ' |
Maturity period | '2019-05 | ' |
Accounts_and_Other_Receivables2
Accounts and Other Receivables (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts and Other Receivables [Line Items] | ' | ' |
Insurance receivables | $137,644 | $138,610 |
Escrow receivables | 7,154 | 586 |
Notes receivables | 4,308 | 3,155 |
Development receivables | 1,932 | 3,093 |
Other receivables | 4,718 | 4,031 |
Reserve | -1,911 | -1,976 |
Total accounts and other receivables, net | $153,845 | $147,499 |
Accounts_and_Other_Receivables3
Accounts and Other Receivables, Net (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts and Other Receivables [Line Items] | ' | ' |
Insurance receivables | $137,644 | $138,610 |
Affiliate insurance carriers | ' | ' |
Accounts and Other Receivables [Line Items] | ' | ' |
Insurance receivables | $47,200 | $44,000 |
Inventory_Detail
Inventory (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Homes under construction | $299,579 | $257,662 |
Lots available for construction | 354,471 | 342,622 |
Land under development | 154,801 | 122,257 |
Land held for future development | 80,413 | 70,618 |
Land held for sale, including water system connection rights | 82,595 | 79,102 |
Land deposits and preacquisition costs | 21,551 | 32,998 |
Total inventory | 1,132,196 | 1,013,272 |
Model Homes | ' | ' |
Inventory [Line Items] | ' | ' |
Inventory finished homes | 104,549 | 87,728 |
Completed Homes for Sale | ' | ' |
Inventory [Line Items] | ' | ' |
Inventory finished homes | $34,237 | $20,285 |
Inventory_Additional_Informati
Inventory - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Inventory Disclosure [Line Items] | ' | ' |
Inventory impairment charges | $0 | $0 |
Interest_Incurred_Capitalized_
Interest Incurred, Capitalized and Expensed (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Capitalized Interest [Line Items] | ' | ' | ||
Interest incurred | $16,929 | $16,768 | ||
Interest expensed | 118 | [1] | 3,433 | [1] |
Inventory | ' | ' | ||
Capitalized Interest [Line Items] | ' | ' | ||
Interest capitalized as a cost of inventory during the period | 15,936 | 13,078 | ||
Interest previously capitalized as a cost of inventory, included in cost of sales | -10,844 | -9,511 | ||
Interest capitalized in ending inventory | 107,192 | [2] | 106,416 | [2] |
Investments In Joint Ventures | ' | ' | ||
Capitalized Interest [Line Items] | ' | ' | ||
Interest capitalized as a cost of investments in unconsolidated joint ventures during the period | 875 | 257 | ||
Interest previously capitalized as a cost of investments in unconsolidated joint ventures, included in equity in income (loss) from unconsolidated joint ventures | -267 | -257 | ||
Interest capitalized in ending investments in unconsolidated joint ventures | $1,697 | $0 | ||
[1] | For the three-months ended March 31, 2014, qualifying assets exceeded debt, therefore no interest on the Secured Notes was expensed; interest expense represents fees charged on the unused revolving credit facility that is not considered a cost of borrowing and is not capitalized. For the three months ended March 31, 2013, assets qualifying for interest capitalization were less than debt; therefore, non-qualifying interest was expensed. | |||
[2] | Inventory impairment charges were recorded against total inventory of the respective community in prior periods. Capitalized interest reflects the gross amount of capitalized interest as impairment charges recognized were generally not allocated to specific components of inventory. |
Interest_Incurred_Capitalized_1
Interest Incurred, Capitalized and Expensed (Parenthetical) (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Capitalized Interest [Line Items] | ' |
Interest charged on unused revolving credit facility | $0 |
Investments_in_Unconsolidated_2
Investments in Unconsolidated Joint Ventures - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Feb. 28, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
RRWS,LLC | RRWS,LLC | Polo Estates Ventures, LLC | Polo Estates Ventures, LLC | Guarantee Provided | Guarantee Provided | Guarantee Provided | Guarantee Provided | Unconsolidated Joint Ventures | Unconsolidated Joint Ventures | Unconsolidated Joint Ventures | Fourth Unconsolidated Joint Venture | Fourth Unconsolidated Joint Venture | Fourth Unconsolidated Joint Venture | Impairment on investments in joint ventures | Impairment on investments in joint ventures | ||||
RRWS,LLC | RRWS,LLC | Polo Estates Ventures, LLC | Polo Estates Ventures, LLC | Maximum | Minimum | ||||||||||||||
Investment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership Interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' |
Deficit Distributions | $536,000 | ' | $351,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairments charges on investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 |
Indemnification agreement from joint ventures, percentage | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes payable outstanding | ' | ' | ' | 42,200,000 | 47,700,000 | 7,400,000 | 4,800,000 | 42,200,000 | 47,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum remargin obligation | 70,000,000 | ' | ' | ' | ' | ' | ' | 21,100,000 | 23,800,000 | 7,400,000 | 4,800,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum liability (cap) | ' | ' | ' | 35,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, maximum borrowing capacity | ' | 125,000,000 | ' | ' | ' | 21,600,000 | 21,600,000 | ' | ' | 21,600,000 | 21,600,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Guaranty Liabilities | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving basket available for joint venture investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70,000,000 | ' | ' | ' | ' | ' | ' | ' |
Consolidated fixed charge coverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200.00% | ' | ' | ' | ' | ' |
Percentage of cumulative consolidated net income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' |
Committed capital contribution in joint venture | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,000,000 | ' | ' |
Aggregate capital contributions | $52,535,000 | ' | $47,748,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15,100,000 | $15,100,000 | ' | ' | ' |
Total_Unconsolidated_Joint_Ven
Total Unconsolidated Joint Ventures' Note Payable (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ||
Notes payable | $752,092 | $751,708 | ||
Unconsolidated Joint Ventures | ' | ' | ||
Schedule of Equity Method Investments [Line Items] | ' | ' | ||
Joint venture debt | 76,517 | 78,589 | ||
Unconsolidated Joint Ventures | Bank and Seller Financing Notes Payable | ' | ' | ||
Schedule of Equity Method Investments [Line Items] | ' | ' | ||
Notes payable | 60,673 | [1] | 62,588 | [1] |
Unconsolidated Joint Ventures | Bank and Seller Financing Notes Payable | Guarantee Provided | ' | ' | ||
Schedule of Equity Method Investments [Line Items] | ' | ' | ||
Notes payable | 49,663 | 52,515 | ||
Unconsolidated Joint Ventures | Bank and Seller Financing Notes Payable | Non Guaranteed Obligations | ' | ' | ||
Schedule of Equity Method Investments [Line Items] | ' | ' | ||
Notes payable | 11,010 | 10,073 | ||
Unconsolidated Joint Ventures | Partner Notes Payable | Unsecured Debt | ' | ' | ||
Schedule of Equity Method Investments [Line Items] | ' | ' | ||
Notes payable | 15,844 | [2] | 16,001 | [2] |
Non-Direct Unconsolidated Joint Ventures | ' | ' | ||
Schedule of Equity Method Investments [Line Items] | ' | ' | ||
Joint venture debt | $12,051 | [3] | $55,441 | [3] |
[1] | All bank seller notes were secured by real property. | |||
[2] | No guarantees were provided on partner notes payable. In January 2014, a $3.2 million partner note from one joint venture was paid off. | |||
[3] | Through indirect effective ownership in two joint ventures of 12.3% and 0.0003%, respectively, that had bank notes payable secured by real property in which we have not provided any guarantee. |
Total_Unconsolidated_Joint_Ven1
Total Unconsolidated Joint Ventures' Note Payable (Parenthetical) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | Joint Venture One | Joint Venture One | Joint Venture Two | ||
Indirect | Indirect | ||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' |
Notes payable | $752,092 | $751,708 | $3,200 | ' | ' |
Ownership Interest | ' | ' | ' | 12.30% | 0.00% |
Variable_Interest_Entities_Add
Variable Interest Entities - Additional Information (Detail) (USD $) | Feb. 28, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 |
In Millions, unless otherwise specified | RRWS,LLC | RRWS,LLC | Polo Estates Ventures, LLC | Polo Estates Ventures, LLC | Affiliated Entity | Affiliated Entity | Third Party | Third Party | Land Option Contracts | Land Option Contracts | Land Option Contracts | Unconsolidated Variable Interest Entities | |
RRWS,LLC | Polo Estates Ventures, LLC | RRWS,LLC | Polo Estates Ventures, LLC | Loss Exposure | Loss Exposure | Land Option Contracts | |||||||
Variable Interest Entities and Non Variable Interest Entities [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
VIEs ownership interest | ' | ' | ' | ' | ' | 50.00% | 50.00% | 50.00% | 50.00% | ' | ' | ' | ' |
Notes payable outstanding | ' | $42.20 | $47.70 | $7.40 | $4.80 | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum liability (cap) | ' | 35 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum aggregate liability | ' | 'The Company has a maximum aggregate liability under the re-margin arrangements of the lesser of 50% of the outstanding balances or $35.0 million in total. Obligations of the Company and RRWS Partner under the re-margin arrangements are limited during the first two years of the loans. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum remargin obligation | ' | 21.1 | 23.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, maximum borrowing capacity | 125 | ' | ' | 21.6 | 21.6 | ' | ' | ' | ' | ' | ' | ' | ' |
Refundable and non-refundable cash deposits | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18.6 | ' | ' | 1.1 |
Remaining purchase price of cash deposits | ' | ' | ' | ' | ' | ' | ' | ' | ' | 342.8 | ' | ' | 29.8 |
Non-refundable deposits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19 | 6.9 | ' |
Capitalized preacquisition costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.90 | $12 | ' |
Other_Assets_Detail
Other Assets (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Assets [Line Items] | ' | ' |
Income tax receivable | $0 | $2,199 |
Deferred tax asset | 15,898 | 16,337 |
Investments | 9,648 | 9,439 |
Property and equipment, net | 4,476 | 4,103 |
Capitalized loan origination fees | 8,152 | 11,089 |
Prepaid bank fees | 38 | 152 |
Deposits in lieu of bonds and letters of credit | 10,815 | 10,294 |
Prepaid insurance | 3,549 | 2,460 |
Other | 4,536 | 997 |
Total other assets, net | $57,112 | $57,070 |
Other_Assets_Net_Additional_In
Other Assets, Net - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Other Assets [Line Items] | ' | ' |
Available for sale securities realized gains | $0 | $0 |
Notes_Payable_Detail
Notes Payable (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Notes payable | $752,092 | $751,708 |
Senior Secured Notes Due | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Notes payable | 750,000 | 750,000 |
Secured Revolving Credit Facility Matures March 1, 2016 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Notes payable | 0 | 0 |
Secured Promissory Notes | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Notes payable | $2,092 | $1,708 |
Notes_Payable_Parenthetical_De
Notes Payable (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | 10-May-11 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
Senior Secured Notes Due | Senior Secured Notes Due | Senior Secured Notes Due | Secured Revolving Credit Facility Matures March 1, 2016 | Secured Revolving Credit Facility Matures March 1, 2016 | Secured Promissory Notes | Secured Promissory Notes | Secured Promissory Notes | Secured Promissory Notes | Secured Promissory Notes | Secured Promissory Notes | |
Minimum | Minimum | Maximum | Maximum | ||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount | $750,000 | $750,000 | $750,000 | $125,000 | $125,000 | ' | ' | ' | ' | ' | ' |
Interest rate | 8.63% | 8.63% | ' | 2.75% | 2.75% | ' | ' | 1.00% | 1.00% | 6.00% | 6.00% |
Maturity period | '2019-05 | '2019-05 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity date | 15-May-19 | ' | ' | 1-Mar-16 | 1-Mar-16 | ' | ' | ' | ' | ' | ' |
Maturity year | ' | ' | ' | ' | ' | '2014 | '2014 | ' | ' | ' | ' |
Notes_Payable_Additional_Infor
Notes Payable - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | 10-May-11 | Feb. 28, 2014 | Mar. 31, 2014 | Jan. 14, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | 10-May-11 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Senior Secured Notes Due | Senior Secured Notes Due | Senior Secured Notes Due | Senior Secured Notes Due | Senior Secured Notes Due | Senior Secured Notes Due | Senior Secured Notes Due | ||||
Semi Annual Payment, First Payment | Semi Annual Payment, Second Payment | Redeem On Or After May 15, 2015 | Redeem On Or After May 15, 2016 | ||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest payment date | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'May 15 | 'November 15 | ' | ' |
Maturity date | ' | ' | ' | 1-Mar-16 | ' | ' | 15-May-19 | ' | ' | ' | ' | ' | ' |
Note redemption price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $104.31 | $102.16 |
Accrued interest | $24,258,000 | $8,086,000 | ' | ' | ' | ' | $24,300,000 | $8,100,000 | ' | ' | ' | ' | ' |
Principal amount of debt issued | ' | ' | ' | ' | ' | ' | 750,000,000 | 750,000,000 | 750,000,000 | ' | ' | ' | ' |
Letters of credit, borrowing capacity | ' | ' | $75,000,000 | ' | ' | $75,000,000 | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Interest Rate Description | ' | ' | ' | ' | 'The Revolver, which bears interest, at the Company's option, either at (i) a daily eurocurrency base rate as defined in the credit agreement governing the Revolver (the "Credit Agreement"), plus a margin of 2.75%, or (ii) a eurocurrency rate as defined in the Credit Agreement, plus a margin of 2.75%, and matures March 1, 2016. | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | 2.75% | ' | ' | 8.63% | 8.63% | ' | ' | ' | ' | ' |
Amortizing period of term loan | ' | ' | ' | '18 months | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other_Liabilities_Detail
Other Liabilities (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Other Liabilities [Line Items] | ' | ' | ' | ' |
Completed operations | $137,644 | $138,610 | ' | ' |
Warranty reserves | 21,181 | 20,648 | 17,927 | 17,749 |
Income tax payable | 3,942 | 0 | ' | ' |
Accrued profit and revenue participation arrangements | 21,124 | 678 | ' | ' |
Deferred revenue/gain | 28,182 | 29,358 | ' | ' |
Provisions for closed homes/communities | 9,322 | 10,591 | ' | ' |
Deposits (primarily homebuyer) | 17,034 | 14,281 | ' | ' |
Legal reserves | 4,748 | 4,576 | ' | ' |
Accrued interest | 24,258 | 8,086 | ' | ' |
Accrued compensation and benefits | 9,902 | 9,389 | ' | ' |
Distributions payable | 2,441 | 2,531 | ' | ' |
Deficit Distributions | 536 | 351 | ' | ' |
Other | 8,237 | 6,702 | ' | ' |
Total other liabilities | $288,551 | $245,801 | ' | ' |
Other_Liabilities_Additional_I
Other Liabilities - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2011 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2009 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2009 | |
Vistancia, LLC | Vistancia, LLC | Vistancia, LLC | Minimum | Maximum | JFSCI | JFSCI | JFSCI | JFSCI | PIC | PIC | PIC | PIC | ||||
Other Liabilities [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operations claims standard warranty period | ' | ' | ' | ' | ' | ' | '1 year | '2 years | ' | ' | ' | ' | ' | ' | ' | ' |
Completed operations extended warranty period | ' | ' | ' | ' | ' | ' | ' | '12 years | ' | ' | ' | ' | ' | ' | ' | ' |
Insurance receivables | $137,644,000 | ' | $138,610,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of uncovered losses related to completed operations | 12.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred revenue on completed operation claims | ' | ' | ' | ' | ' | ' | ' | ' | 18,700,000 | ' | 18,900,000 | 19,200,000 | 6,600,000 | ' | 7,800,000 | 15,600,000 |
Gain on reinsurance transaction | 1,345,000 | 648,000 | ' | ' | ' | ' | ' | ' | 200,000 | 200,000 | ' | ' | 1,100,000 | 400,000 | ' | ' |
Distribution payable to non-controlling interest | 2,441,000 | ' | 2,531,000 | 3,300,000 | 2,400,000 | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distributions payable | ' | ' | ' | $100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Changes_in_Completed_Operation
Changes in Completed Operations Reserves (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | Operations | Operations | ||
Completed Operations [Line Items] | ' | ' | ' | ' |
Balance, beginning of the period | $137,644 | $138,610 | $138,610 | $131,519 |
Reserves provided | ' | ' | 3,413 | 1,972 |
Claims paid | ' | ' | -4,379 | -2,241 |
Balance, end of the period | $137,644 | $138,610 | $137,644 | $131,250 |
Changes_in_Warranty_Liabilitie
Changes in Warranty Liabilities (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Warranty Liability [Line Items] | ' | ' |
Balance, beginning of the period | $20,648 | $17,749 |
Provision for warranties | 3,309 | 1,745 |
Warranty costs paid | -2,776 | -1,567 |
Balance, end of the period | $21,181 | $17,927 |
Related_Party_Transactions_Det
Related Party Transactions (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Related Party Transaction [Line Items] | ' | ' |
Note receivable from JFSCI | $13,378 | $21,588 |
Notes receivable from unconsolidated joint ventures | 1,370 | 1,037 |
Notes receivable from related parties | 16,256 | 18,822 |
Reserves for note receivables from related parties | -12,860 | -12,842 |
Receivables from related parties | 3,844 | 3,745 |
Total receivables from related parties, net | $21,988 | $32,350 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 3 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Jan. 31, 2014 | Feb. 28, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | 31-May-11 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | |
Maximum | Northern California | Southern California | Related Party Receivables and Payables | Related Party Receivables and Payables | Related Party Receivables and Payables | Related Party Receivables and Payables | Related Party Receivables and Payables | Related Party Receivables and Payables | Related Party Receivables and Payables | Related Party Receivables and Payables | Non Interest Bearing | Non Interest Bearing | Real Property and Joint Venture Transactions | Real Property and Joint Venture Transactions | Affiliated Entity | Affiliated Entity | JFSCI | JFSCI | JFSCI | JFSCI | JFSCI | Unconsolidated Joint Ventures | Unconsolidated Joint Ventures | Unconsolidated Joint Ventures | Unconsolidated Joint Ventures | ||||
Minimum | Minimum | Maximum | Maximum | Other | Other | Other Real Property and Joint Venture Transactions | Other Real Property and Joint Venture Transactions | Related Party Receivables and Payables | Related Party Receivables and Payables | Related Party Receivables and Payables | General and Administrative Related Party Transactions | General and Administrative Related Party Transactions | Related Party Receivables and Payables | Related Party Receivables and Payables | Related Party Receivables and Payables | Related Party Receivables and Payables | |||||||||||||
Entity | Entity | Minimum | Maximum | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible notes receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $38,900,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Bearing interest from notes receivable | ' | ' | ' | ' | ' | ' | ' | ' | 2.50% | 2.50% | 4.25% | 4.25% | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | ' | ' | ' | ' | ' | ' | 8.00% | 12.00% |
Receivable maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15-May-19 | ' | ' | ' | ' | ' | ' | ' | ' |
Prepayment on notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,400,000 | 3,800,000 | ' | ' | ' | ' | ' | ' |
Note receivables from related parties | 16,256,000 | ' | 18,822,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,400,000 | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | 13,400,000 | 21,600,000 | ' | ' | 1,400,000 | 1,000,000 | ' | ' |
Notes receivable, maturity year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2020 | ' | ' | ' |
Internal rate of returns | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17.50% | ' | ' | ' |
Reserves for notes receivable from other related parties | 12,860,000 | ' | 12,842,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,900,000 | 12,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes receivable, maturity periods | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'August 2016 through April 2021 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued interest monthly based on Prime less | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.75% | 0.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued interest monthly based on Prime plus | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Receivables from related parties | 3,844,000 | ' | 3,745,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,800,000 | 3,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payables to related parties | 5,599,000 | ' | 21,000 | ' | ' | ' | 5,600,000 | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Inventory | 1,132,196,000 | ' | 1,013,272,000 | ' | 4,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities assumed | ' | ' | ' | ' | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue participation payments, gross revenues from home closing percentage | ' | ' | ' | ' | 11.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other liabilities | 288,551,000 | ' | 245,801,000 | ' | 19,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charges to equity | ' | ' | ' | ' | 25,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale of land | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales proceeds recorded as an equity contribution | ' | ' | ' | ' | ' | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of unconsolidated joint ventures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10 | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
General and administrative expenses | 15,304,000 | 11,957,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,100,000 | 1,600,000 | ' | ' | ' | ' | ' | 6,300,000 | 5,200,000 | ' | ' | ' | ' |
Management fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leases | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease renewal option term | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related party rental expense | 200,000 | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts paid to affiliates for insurance coverage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,100,000 | $3,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2009 | Dec. 31, 2009 | |
SHI | SHI | SHLP | ||||
Maximum | Maximum | |||||
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' |
Income tax benefit (expense) | ($7,678,000) | $59,000 | ' | $7,700,000 | ' | ' |
Deferred tax asset, net | 15,898,000 | ' | 16,337,000 | 15,900,000 | ' | ' |
Deferred tax asset valuation allowance | ' | ' | ' | 500,000 | ' | ' |
Amount company could be obligated to pay | ' | ' | ' | ' | 66,000,000 | 109,000,000 |
Initial Maximum CCM Payment | $70,000,000 | ' | ' | ' | ' | ' |
Effective tax rate | 0.00% | 0.00% | ' | ' | ' | ' |
Owners_Equity_Additional_Infor
Owners' Equity - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Series B Preferred Stock | ' | ' |
Stockholders Equity Note [Line Items] | ' | ' |
Accumulated undistributed preferred returns | $23.20 | $22.70 |
Series B Preferred Stock | January 1, 2013 to December 31, 2016 | ' | ' |
Stockholders Equity Note [Line Items] | ' | ' |
Preferred return percentage earned on unreturned preferred capital | 1.20% | ' |
Series B Preferred Stock | January 1, 2017 to December 31, 2020 | ' | ' |
Stockholders Equity Note [Line Items] | ' | ' |
Preferred return percentage earned on unreturned preferred capital | 2.25% | ' |
Series B Preferred Stock | January 1, 2021 and thereafter | ' | ' |
Stockholders Equity Note [Line Items] | ' | ' |
Interest rate determination | 2.05% | ' |
Series D Preferred Stock | ' | ' |
Stockholders Equity Note [Line Items] | ' | ' |
Ownership Interest | 1.00% | ' |
Accumulated undistributed preferred returns | $57.50 | $56.60 |
Series D Preferred Stock | January 1, 2013 to December 31, 2016 | ' | ' |
Stockholders Equity Note [Line Items] | ' | ' |
Preferred return percentage earned on unreturned preferred capital | 2.00% | ' |
Series D Preferred Stock | January 1, 2017 to December 31, 2020 | ' | ' |
Stockholders Equity Note [Line Items] | ' | ' |
Preferred return percentage earned on unreturned preferred capital | 12.75% | ' |
Series D Preferred Stock | January 1, 2021 and thereafter | ' | ' |
Stockholders Equity Note [Line Items] | ' | ' |
Preferred return percentage earned on unreturned preferred capital | 7.00% | ' |
Limited Partner | ' | ' |
Stockholders Equity Note [Line Items] | ' | ' |
Ownership Interest | 78.38% | ' |
General Partner | ' | ' |
Stockholders Equity Note [Line Items] | ' | ' |
Ownership Interest | 20.62% | ' |
Contingent_Liabilities_And_Com
Contingent Liabilities And Commitments (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commitment And Contingencies [Line Items] | ' | ' |
Water system connection rights purchase obligation | $30,506 | $30,506 |
Total unrecorded contingent liabilities and commitments | 232,739 | 230,925 |
Partner Notes Payable | ' | ' |
Commitment And Contingencies [Line Items] | ' | ' |
Guarantee obligations | 28,554 | 28,684 |
Unconsolidated Joint Ventures | ' | ' |
Commitment And Contingencies [Line Items] | ' | ' |
Exposure of surety bonds in connection with development of projects | 22,800 | 22,800 |
Tax Court Member | ' | ' |
Commitment And Contingencies [Line Items] | ' | ' |
Guarantee obligations | 70,000 | 70,000 |
Surety Bonds | Related Parties | ' | ' |
Commitment And Contingencies [Line Items] | ' | ' |
Exposure of surety bonds in connection with development of projects | 1,614 | 1,614 |
Surety Bonds | Company | ' | ' |
Commitment And Contingencies [Line Items] | ' | ' |
Exposure of surety bonds in connection with development of projects | 79,258 | 77,276 |
Surety Bonds | Unconsolidated Joint Ventures | ' | ' |
Commitment And Contingencies [Line Items] | ' | ' |
Exposure of surety bonds in connection with development of projects | $22,807 | $22,845 |
Contingent_Liabilities_And_Com1
Contingent Liabilities And Commitments (Parenthetical) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Commitment And Contingencies [Line Items] | ' | ' |
Guarantee obligations maximum exposure | $70 | ' |
Tax Court Member | ' | ' |
Commitment And Contingencies [Line Items] | ' | ' |
Guarantee obligations maximum exposure | $70 | $70 |
Contingencies_and_Commitments_1
Contingencies and Commitments - Additional Information (Detail) (USD $) | 1 Months Ended | |||
Feb. 28, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | 10-May-11 | |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' |
Legal reserves | ' | $4,700,000 | $4,600,000 | ' |
Letters of credit, borrowing capacity | ' | ' | ' | 75,000,000 |
Letters of credit, outstanding amount | ' | 0 | 0 | ' |
Line of credit facility, maximum borrowing capacity | 125,000,000 | ' | ' | ' |
Letters of credit, Outstanding capacity | 62,500,000 | ' | ' | ' |
Letters of credit, termination period | '2014-02 | ' | ' | ' |
Water system connection rights purchase obligation | ' | 30,506,000 | 30,506,000 | ' |
Colorado | ' | ' | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' |
Water system connection rights purchase obligation | ' | 30,500,000 | 30,500,000 | ' |
Credit Support Agreement | Colorado | ' | ' | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' |
Reimbursements | ' | 8,800,000 | 8,600,000 | ' |
Funding Arrangements | ' | ' | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' |
Reimbursements | ' | 13,100,000 | 13,100,000 | ' |
Funding Arrangements | Colorado | ' | ' | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' |
Reimbursements | ' | 11,900,000 | 11,900,000 | ' |
Related Parties | ' | ' | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' |
Exposure of surety bonds in connection with development of projects | ' | 1,600,000 | 1,600,000 | ' |
Bonds issued for development of projects | ' | 4,900,000 | 4,900,000 | ' |
Unconsolidated Joint Ventures | ' | ' | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' |
Exposure of surety bonds in connection with development of projects | ' | 22,800,000 | 22,800,000 | ' |
Bonds issued for development of projects | ' | 63,300,000 | 63,700,000 | ' |
Homebuilding Operations | ' | ' | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' |
Exposure of surety bonds in connection with development of projects | ' | 79,300,000 | 77,300,000 | ' |
Bonds issued for development of projects | ' | $169,500,000 | $169,700,000 | ' |
Supplemental_Disclosures_to_Co
Supplemental Disclosures to Consolidated Statements of Cash Flows (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Supplemental disclosure of cash flow information | ' | ' |
Income taxes paid | $207 | $25 |
Interest paid, net of amounts capitalized | 0 | 109 |
Supplemental disclosure of noncash activities | ' | ' |
Unrealized gain on available-for-sale investments, net | 179 | 130 |
Reclassification of Deficit Distributions to unconsolidated joint ventures from other liabilities | 184 | 0 |
Purchase of land in exchange for note payable | 1,807 | 929 |
Distribution to Owners for assumption of liability and revenue participation payments for land purchased from a related party under common control | ($20,891) | $0 |
Financial_Information_for_Repo
Financial Information for Reportable Segments - Assets (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
Assets | $1,523,447 | $1,505,333 |
Homebuilding | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Assets | 1,367,483 | 1,240,416 |
Homebuilding | Southern California | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Assets | 387,270 | 316,339 |
Homebuilding | San Diego | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Assets | 170,484 | 160,593 |
Homebuilding | Northern California | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Assets | 299,867 | 286,513 |
Homebuilding | Mountain West | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Assets | 333,369 | 316,459 |
Homebuilding | South West | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Assets | 170,783 | 155,416 |
Homebuilding | East | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Assets | 5,710 | 5,096 |
Corporate | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Assets | $155,964 | $264,917 |
Financial_Information_for_Repo1
Financial Information for Reportable Segments - Inventory (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Northern California | Homebuilding | Homebuilding | Homebuilding | Homebuilding | Homebuilding | Homebuilding | Homebuilding | Homebuilding | Homebuilding | Homebuilding | Homebuilding | Homebuilding | Homebuilding | Homebuilding | ||
Southern California | Southern California | San Diego | San Diego | Northern California | Northern California | Mountain West | Mountain West | South West | South West | East | East | ||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Inventory | $1,132,196 | $1,013,272 | $4,400 | $1,132,196 | $1,013,272 | $305,868 | $239,986 | $153,069 | $142,395 | $258,726 | $249,111 | $265,643 | $247,294 | $146,046 | $132,484 | $2,844 | $2,002 |
Financial_Information_for_Repo2
Financial Information for Reportable Segments - Revenues (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Revenues | $180,115 | $134,960 |
Homebuilding | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenues | 179,905 | 134,839 |
Homebuilding | Southern California | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenues | 46,083 | 40,157 |
Homebuilding | San Diego | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenues | 17,031 | 9,629 |
Homebuilding | Northern California | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenues | 58,358 | 27,647 |
Homebuilding | Mountain West | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenues | 18,902 | 22,306 |
Homebuilding | South West | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenues | 39,531 | 33,533 |
Homebuilding | East | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenues | 0 | 1,567 |
Corporate | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenues | $210 | $121 |
Financial_Information_Relating
Financial Information Relating to Reportable Segments - Income (Loss) Before Income Taxes (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Income (loss) before income taxes | $18,973 | $6,778 |
Homebuilding | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Income (loss) before income taxes | 18,132 | 6,557 |
Homebuilding | Southern California | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Income (loss) before income taxes | 4,678 | 7,891 |
Homebuilding | San Diego | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Income (loss) before income taxes | 1,754 | -1,424 |
Homebuilding | Northern California | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Income (loss) before income taxes | 14,517 | 1,893 |
Homebuilding | Mountain West | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Income (loss) before income taxes | -1,895 | -2,784 |
Homebuilding | South West | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Income (loss) before income taxes | 575 | 1,055 |
Homebuilding | East | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Income (loss) before income taxes | -1,497 | -74 |
Corporate | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Income (loss) before income taxes | $841 | $221 |
Condensed_Consolidating_Balanc
Condensed Consolidating Balance Sheet (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | ||||
In Thousands, unless otherwise specified | ||||||||
Assets | ' | ' | ' | ' | ||||
Cash and cash equivalents | $104,775 | $206,205 | $251,478 | $279,756 | ||||
Restricted cash | 996 | 1,189 | ' | ' | ||||
Accounts and other receivables, net | 153,845 | 147,499 | ' | ' | ||||
Receivables from related parties, net | 21,988 | 32,350 | ' | ' | ||||
Inventory | 1,132,196 | 1,013,272 | ' | ' | ||||
Investments in unconsolidated joint ventures | 52,535 | 47,748 | ' | ' | ||||
Other assets, net | 57,112 | 57,070 | ' | ' | ||||
Total assets | 1,523,447 | 1,505,333 | ' | ' | ||||
Liabilities: | ' | ' | ' | ' | ||||
Notes payable | 752,092 | 751,708 | ' | ' | ||||
Payables to related parties | 5,599 | 21 | ' | ' | ||||
Accounts payable | 44,605 | 62,346 | ' | ' | ||||
Other liabilities | 288,551 | 245,801 | ' | ' | ||||
Total liabilities | 1,090,847 | 1,059,876 | ' | ' | ||||
SHLP equity: | ' | ' | ' | ' | ||||
Owners' equity | 427,235 | 440,268 | ' | ' | ||||
Accumulated other comprehensive income | 4,967 | 4,788 | ' | ' | ||||
Total SHLP equity | 432,202 | 445,056 | ' | ' | ||||
Non-controlling interests | 398 | 401 | ' | ' | ||||
Total equity | 432,600 | 445,457 | 326,214 | 319,247 | ||||
Total liabilities and equity | 1,523,447 | 1,505,333 | ' | ' | ||||
SHLP Corp | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Cash and cash equivalents | 51,081 | [1],[2] | 153,794 | [1],[3] | 211,392 | [4] | 216,914 | [4] |
Restricted cash | 563 | [2] | 695 | [3] | ' | ' | ||
Accounts and other receivables, net | 123,040 | [2] | 120,299 | [3] | ' | ' | ||
Receivables from related parties, net | 7,231 | [2] | 9,251 | [3] | ' | ' | ||
Inventory | 884,590 | [2] | 749,832 | [3] | ' | ' | ||
Investments in unconsolidated joint ventures | 26,274 | [2] | 22,068 | [3] | ' | ' | ||
Investments in subsidiaries | 737,766 | [2] | 748,326 | [3] | ' | ' | ||
Other assets, net | 25,984 | [2] | 24,030 | [3] | ' | ' | ||
Intercompany | 0 | [2] | 0 | [3] | ' | ' | ||
Total assets | 1,856,529 | [2] | 1,828,295 | [3] | ' | ' | ||
Liabilities: | ' | ' | ' | ' | ||||
Notes payable | 752,092 | [2] | 751,708 | [3] | ' | ' | ||
Payables to related parties | 20 | [2] | 20 | [3] | ' | ' | ||
Accounts payable | 27,860 | [2] | 36,594 | [3] | ' | ' | ||
Other liabilities | 187,872 | [2] | 171,470 | [3] | ' | ' | ||
Intercompany | 456,483 | [2] | 423,447 | [3] | ' | ' | ||
Total liabilities | 1,424,327 | [2] | 1,383,239 | [3] | ' | ' | ||
SHLP equity: | ' | ' | ' | ' | ||||
Owners' equity | 427,235 | [2] | 440,268 | [3] | ' | ' | ||
Accumulated other comprehensive income | 4,967 | [2] | 4,788 | [3] | ' | ' | ||
Total SHLP equity | 432,202 | [2] | 445,056 | [3] | ' | ' | ||
Non-controlling interests | 0 | [2] | 0 | [3] | ' | ' | ||
Total equity | 432,202 | [2] | 445,056 | [3] | ' | ' | ||
Total liabilities and equity | 1,856,529 | [2] | 1,828,295 | [3] | ' | ' | ||
Guarantor Subsidiaries | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Cash and cash equivalents | 45,042 | 43,803 | 15,389 | 48,895 | ||||
Restricted cash | 354 | 354 | ' | ' | ||||
Accounts and other receivables, net | 30,548 | 26,754 | ' | ' | ||||
Receivables from related parties, net | 13,641 | 22,027 | ' | ' | ||||
Inventory | 246,664 | 263,213 | ' | ' | ||||
Investments in unconsolidated joint ventures | 1,169 | 1,091 | ' | ' | ||||
Investments in subsidiaries | 71,709 | 69,755 | ' | ' | ||||
Other assets, net | 30,997 | 32,957 | ' | ' | ||||
Intercompany | 492,016 | 465,706 | ' | ' | ||||
Total assets | 932,140 | 925,660 | ' | ' | ||||
Liabilities: | ' | ' | ' | ' | ||||
Notes payable | 0 | 0 | ' | ' | ||||
Payables to related parties | 0 | 0 | ' | ' | ||||
Accounts payable | 16,159 | 25,334 | ' | ' | ||||
Other liabilities | 69,957 | 41,370 | ' | ' | ||||
Intercompany | 0 | 0 | ' | ' | ||||
Total liabilities | 86,116 | 66,704 | ' | ' | ||||
SHLP equity: | ' | ' | ' | ' | ||||
Owners' equity | 841,057 | 854,168 | ' | ' | ||||
Accumulated other comprehensive income | 4,967 | 4,788 | ' | ' | ||||
Total SHLP equity | 846,024 | 858,956 | ' | ' | ||||
Non-controlling interests | 0 | 0 | ' | ' | ||||
Total equity | 846,024 | 858,956 | ' | ' | ||||
Total liabilities and equity | 932,140 | 925,660 | ' | ' | ||||
Non-Guarantor Subsidiaries | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Cash and cash equivalents | 8,652 | 8,608 | 24,697 | 13,947 | ||||
Restricted cash | 79 | 140 | ' | ' | ||||
Accounts and other receivables, net | 24,398 | 28,696 | ' | ' | ||||
Receivables from related parties, net | 1,116 | 796 | ' | ' | ||||
Inventory | 4,076 | 3,361 | ' | ' | ||||
Investments in unconsolidated joint ventures | 25,092 | 24,589 | ' | ' | ||||
Investments in subsidiaries | 89,615 | 90,484 | ' | ' | ||||
Other assets, net | 131 | 83 | ' | ' | ||||
Intercompany | 0 | 0 | ' | ' | ||||
Total assets | 153,159 | 156,757 | ' | ' | ||||
Liabilities: | ' | ' | ' | ' | ||||
Notes payable | 0 | 0 | ' | ' | ||||
Payables to related parties | 2 | 1 | ' | ' | ||||
Accounts payable | 586 | 418 | ' | ' | ||||
Other liabilities | 54,863 | 61,211 | ' | ' | ||||
Intercompany | 44,244 | 45,117 | ' | ' | ||||
Total liabilities | 99,695 | 106,747 | ' | ' | ||||
SHLP equity: | ' | ' | ' | ' | ||||
Owners' equity | 53,066 | 49,609 | ' | ' | ||||
Accumulated other comprehensive income | 0 | 0 | ' | ' | ||||
Total SHLP equity | 53,066 | 49,609 | ' | ' | ||||
Non-controlling interests | 398 | 401 | ' | ' | ||||
Total equity | 53,464 | 50,010 | ' | ' | ||||
Total liabilities and equity | 153,159 | 156,757 | ' | ' | ||||
Consolidation, Eliminations | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | ||||
Restricted cash | 0 | 0 | ' | ' | ||||
Accounts and other receivables, net | -24,141 | -28,250 | ' | ' | ||||
Receivables from related parties, net | 0 | 276 | ' | ' | ||||
Inventory | -3,134 | -3,134 | ' | ' | ||||
Investments in unconsolidated joint ventures | 0 | 0 | ' | ' | ||||
Investments in subsidiaries | -899,090 | -908,565 | ' | ' | ||||
Other assets, net | 0 | 0 | ' | ' | ||||
Intercompany | -492,016 | -465,706 | ' | ' | ||||
Total assets | -1,418,381 | -1,405,379 | ' | ' | ||||
Liabilities: | ' | ' | ' | ' | ||||
Notes payable | 0 | 0 | ' | ' | ||||
Payables to related parties | 5,577 | 0 | ' | ' | ||||
Accounts payable | 0 | 0 | ' | ' | ||||
Other liabilities | -24,141 | -28,250 | ' | ' | ||||
Intercompany | -500,727 | -468,564 | ' | ' | ||||
Total liabilities | -519,291 | -496,814 | ' | ' | ||||
SHLP equity: | ' | ' | ' | ' | ||||
Owners' equity | -894,123 | -903,777 | ' | ' | ||||
Accumulated other comprehensive income | -4,967 | -4,788 | ' | ' | ||||
Total SHLP equity | -899,090 | -908,565 | ' | ' | ||||
Non-controlling interests | 0 | 0 | ' | ' | ||||
Total equity | -899,090 | -908,565 | ' | ' | ||||
Total liabilities and equity | -1,418,381 | -1,405,379 | ' | ' | ||||
Total | ' | ' | ' | ' | ||||
Assets | ' | ' | ' | ' | ||||
Cash and cash equivalents | 104,775 | 206,205 | ' | ' | ||||
Restricted cash | 996 | 1,189 | ' | ' | ||||
Accounts and other receivables, net | 153,845 | 147,499 | ' | ' | ||||
Receivables from related parties, net | 21,988 | 32,350 | ' | ' | ||||
Inventory | 1,132,196 | 1,013,272 | ' | ' | ||||
Investments in unconsolidated joint ventures | 52,535 | 47,748 | ' | ' | ||||
Investments in subsidiaries | 0 | 0 | ' | ' | ||||
Other assets, net | 57,112 | 57,070 | ' | ' | ||||
Intercompany | 0 | 0 | ' | ' | ||||
Total assets | 1,523,447 | 1,505,333 | ' | ' | ||||
Liabilities: | ' | ' | ' | ' | ||||
Notes payable | 752,092 | 751,708 | ' | ' | ||||
Payables to related parties | 5,599 | 21 | ' | ' | ||||
Accounts payable | 44,605 | 62,346 | ' | ' | ||||
Other liabilities | 288,551 | 245,801 | ' | ' | ||||
Intercompany | 0 | 0 | ' | ' | ||||
Total liabilities | 1,090,847 | 1,059,876 | ' | ' | ||||
SHLP equity: | ' | ' | ' | ' | ||||
Owners' equity | 427,235 | 440,268 | ' | ' | ||||
Accumulated other comprehensive income | 4,967 | 4,788 | ' | ' | ||||
Total SHLP equity | 432,202 | 445,056 | ' | ' | ||||
Non-controlling interests | 398 | 401 | ' | ' | ||||
Total equity | 432,600 | 445,457 | ' | ' | ||||
Total liabilities and equity | $1,523,447 | $1,505,333 | ' | ' | ||||
[1] | Includes Shea Homes Funding Corp.; no significant activity occurred in 2014. | |||||||
[2] | Includes Shea Homes Funding Corp., whose financial position at March 31, 2014 was not material. | |||||||
[3] | Includes Shea Homes Funding Corp., whose financial position at December 31, 2013 was not material. | |||||||
[4] | Includes Shea Homes Funding Corp.; no significant activity occurred in 2013. |
Condensed_Consolidating_Statem
Condensed Consolidating Statement of Income and Comprehensive Income (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ||
Revenues | $180,115 | $134,960 | ||
Cost of sales | -135,258 | -103,424 | ||
Gross margin | 44,857 | 31,536 | ||
Selling expenses | -11,740 | -10,154 | ||
General and administrative expenses | -15,304 | -11,957 | ||
Equity in income (loss) from unconsolidated joint ventures, net | 406 | -632 | ||
Equity in income (loss) from subsidiaries | 0 | 0 | ||
Gain on reinsurance transaction | 1,345 | 648 | ||
Interest expense | -118 | [1] | -3,433 | [1] |
Other income (expense), net | -473 | 770 | ||
Income before income taxes | 18,973 | 6,778 | ||
Income tax benefit (expense) | -7,678 | 59 | ||
Net income | 11,295 | 6,837 | ||
Less: Net loss attributable to non-controlling interests | 3 | 1 | ||
Net income attributable to SHLP | 11,298 | 6,838 | ||
Comprehensive income | 11,474 | 6,967 | ||
SHLP Corp | ' | ' | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ||
Revenues | 87,594 | [2] | 69,965 | [3] |
Cost of sales | -70,738 | [2] | -55,780 | [3] |
Gross margin | 16,856 | [2] | 14,185 | [3] |
Selling expenses | -6,145 | [2] | -5,206 | [3] |
General and administrative expenses | -10,544 | [2] | -7,571 | [3] |
Equity in income (loss) from unconsolidated joint ventures, net | -501 | [2] | -663 | [3] |
Equity in income (loss) from subsidiaries | 13,924 | [2] | 9,407 | [3] |
Gain on reinsurance transaction | 0 | [2] | 0 | [3] |
Interest expense | -118 | [2] | -2,434 | [3] |
Other income (expense), net | -2,171 | [2] | -877 | [3] |
Income before income taxes | 11,301 | [2] | 6,841 | [3] |
Income tax benefit (expense) | -3 | [2] | -3 | [3] |
Net income | 11,298 | [2] | 6,838 | [3] |
Less: Net loss attributable to non-controlling interests | 0 | [2] | 0 | [3] |
Net income attributable to SHLP | 11,298 | [2] | 6,838 | [3] |
Comprehensive income | 11,477 | [2] | 6,968 | [3] |
Guarantor Subsidiaries | ' | ' | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ||
Revenues | 89,108 | 59,175 | ||
Cost of sales | -64,150 | -47,386 | ||
Gross margin | 24,958 | 11,789 | ||
Selling expenses | -3,904 | -3,390 | ||
General and administrative expenses | -4,055 | -3,497 | ||
Equity in income (loss) from unconsolidated joint ventures, net | 32 | -19 | ||
Equity in income (loss) from subsidiaries | 1,023 | 395 | ||
Gain on reinsurance transaction | 0 | 0 | ||
Interest expense | 0 | -999 | ||
Other income (expense), net | 1,736 | 1,241 | ||
Income before income taxes | 19,790 | 5,520 | ||
Income tax benefit (expense) | -7,658 | 70 | ||
Net income | 12,132 | 5,590 | ||
Less: Net loss attributable to non-controlling interests | 0 | 0 | ||
Net income attributable to SHLP | 12,132 | 5,590 | ||
Comprehensive income | 12,311 | 5,720 | ||
Non-Guarantor Subsidiaries | ' | ' | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ||
Revenues | 3,413 | 5,820 | ||
Cost of sales | -370 | -353 | ||
Gross margin | 3,043 | 5,467 | ||
Selling expenses | -1,691 | -1,558 | ||
General and administrative expenses | -705 | -889 | ||
Equity in income (loss) from unconsolidated joint ventures, net | 875 | 50 | ||
Equity in income (loss) from subsidiaries | 11 | -533 | ||
Gain on reinsurance transaction | 1,345 | 648 | ||
Interest expense | 0 | 0 | ||
Other income (expense), net | -38 | 501 | ||
Income before income taxes | 2,840 | 3,686 | ||
Income tax benefit (expense) | -17 | -8 | ||
Net income | 2,823 | 3,678 | ||
Less: Net loss attributable to non-controlling interests | 3 | 1 | ||
Net income attributable to SHLP | 2,826 | 3,679 | ||
Comprehensive income | 2,823 | 3,678 | ||
Consolidation, Eliminations | ' | ' | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ||
Revenues | 0 | 0 | ||
Cost of sales | 0 | 95 | ||
Gross margin | 0 | 95 | ||
Selling expenses | 0 | 0 | ||
General and administrative expenses | 0 | 0 | ||
Equity in income (loss) from unconsolidated joint ventures, net | 0 | 0 | ||
Equity in income (loss) from subsidiaries | -14,958 | -9,269 | ||
Gain on reinsurance transaction | 0 | 0 | ||
Interest expense | 0 | 0 | ||
Other income (expense), net | 0 | -95 | ||
Income before income taxes | -14,958 | -9,269 | ||
Income tax benefit (expense) | 0 | 0 | ||
Net income | -14,958 | -9,269 | ||
Less: Net loss attributable to non-controlling interests | 0 | 0 | ||
Net income attributable to SHLP | -14,958 | -9,269 | ||
Comprehensive income | ($15,137) | ($9,399) | ||
[1] | For the three-months ended March 31, 2014, qualifying assets exceeded debt, therefore no interest on the Secured Notes was expensed; interest expense represents fees charged on the unused revolving credit facility that is not considered a cost of borrowing and is not capitalized. For the three months ended March 31, 2013, assets qualifying for interest capitalization were less than debt; therefore, non-qualifying interest was expensed. | |||
[2] | Includes Shea Homes Funding Corp.; no significant activity occurred in 2014. | |||
[3] | Includes Shea Homes Funding Corp.; no significant activity occurred in 2013. |
Condensed_Consolidating_Statem1
Condensed Consolidating Statement of Cash Flows (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Operating activities | ' | ' | ||
Net cash provided by (used in) operating activities | ($102,662) | ($27,963) | ||
Investing activities | ' | ' | ||
Net decrease (increase) in promissory notes from related parties | 10,461 | 385 | ||
Investments in unconsolidated joint ventures | -4,452 | -4,028 | ||
Other investing activities | 86 | 3,954 | ||
Net cash provided by (used in) investing activities | 6,095 | -74 | ||
Financing activities | ' | ' | ||
Intercompany | 0 | 0 | ||
Principal payments to financial institutions and others | -1,423 | -241 | ||
Contributions from owners | 945 | 0 | ||
Distributions to owners | -4,385 | 0 | ||
Net cash provided by (used in) financing activities | -4,863 | -241 | ||
Net increase (decrease) in cash and cash equivalents | -101,430 | -28,278 | ||
Cash and cash equivalents at beginning of period | 206,205 | 279,756 | ||
Cash and cash equivalents at end of period | 104,775 | 251,478 | ||
SHLP Corp | ' | ' | ||
Operating activities | ' | ' | ||
Net cash provided by (used in) operating activities | -133,069 | [1] | -16,223 | [2] |
Investing activities | ' | ' | ||
Net decrease (increase) in promissory notes from related parties | 2,583 | [1] | ' | |
Investments in unconsolidated joint ventures | -4,172 | [1] | -4,011 | [2] |
Other investing activities | 0 | [1] | 295 | [2] |
Net cash provided by (used in) investing activities | -1,589 | [1] | -3,716 | [2] |
Financing activities | ' | ' | ||
Intercompany | 36,808 | [1] | 14,658 | [2] |
Principal payments to financial institutions and others | -1,423 | [1] | -241 | [2] |
Contributions from owners | 945 | [1] | ' | |
Distributions to owners | -4,385 | [1] | ' | |
Net cash provided by (used in) financing activities | 31,945 | [1] | 14,417 | [2] |
Net increase (decrease) in cash and cash equivalents | -102,713 | [1] | -5,522 | [2] |
Cash and cash equivalents at beginning of period | 153,794 | [1],[3] | 216,914 | [2] |
Cash and cash equivalents at end of period | 51,081 | [1],[4] | 211,392 | [2] |
Guarantor Subsidiaries | ' | ' | ||
Operating activities | ' | ' | ||
Net cash provided by (used in) operating activities | 24,620 | -16,369 | ||
Investing activities | ' | ' | ||
Net decrease (increase) in promissory notes from related parties | 8,206 | ' | ||
Investments in unconsolidated joint ventures | -80 | -17 | ||
Other investing activities | 86 | 3,159 | ||
Net cash provided by (used in) investing activities | 8,212 | 3,142 | ||
Financing activities | ' | ' | ||
Intercompany | -31,593 | -20,279 | ||
Principal payments to financial institutions and others | 0 | 0 | ||
Contributions from owners | 0 | ' | ||
Distributions to owners | 0 | ' | ||
Net cash provided by (used in) financing activities | -31,593 | -20,279 | ||
Net increase (decrease) in cash and cash equivalents | 1,239 | -33,506 | ||
Cash and cash equivalents at beginning of period | 43,803 | 48,895 | ||
Cash and cash equivalents at end of period | 45,042 | 15,389 | ||
Non-Guarantor Subsidiaries | ' | ' | ||
Operating activities | ' | ' | ||
Net cash provided by (used in) operating activities | -66 | 2,633 | ||
Investing activities | ' | ' | ||
Net decrease (increase) in promissory notes from related parties | -328 | ' | ||
Investments in unconsolidated joint ventures | -200 | 0 | ||
Other investing activities | 0 | 500 | ||
Net cash provided by (used in) investing activities | -528 | 500 | ||
Financing activities | ' | ' | ||
Intercompany | 638 | 7,617 | ||
Principal payments to financial institutions and others | 0 | 0 | ||
Contributions from owners | 0 | ' | ||
Distributions to owners | 0 | ' | ||
Net cash provided by (used in) financing activities | 638 | 7,617 | ||
Net increase (decrease) in cash and cash equivalents | 44 | 10,750 | ||
Cash and cash equivalents at beginning of period | 8,608 | 13,947 | ||
Cash and cash equivalents at end of period | 8,652 | 24,697 | ||
Consolidation, Eliminations | ' | ' | ||
Operating activities | ' | ' | ||
Net cash provided by (used in) operating activities | 5,853 | 1,996 | ||
Investing activities | ' | ' | ||
Net decrease (increase) in promissory notes from related parties | 0 | ' | ||
Investments in unconsolidated joint ventures | 0 | 0 | ||
Other investing activities | 0 | 0 | ||
Net cash provided by (used in) investing activities | 0 | 0 | ||
Financing activities | ' | ' | ||
Intercompany | -5,853 | -1,996 | ||
Principal payments to financial institutions and others | 0 | 0 | ||
Contributions from owners | 0 | ' | ||
Distributions to owners | 0 | ' | ||
Net cash provided by (used in) financing activities | -5,853 | -1,996 | ||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | ||
Cash and cash equivalents at beginning of period | 0 | 0 | ||
Cash and cash equivalents at end of period | $0 | $0 | ||
[1] | Includes Shea Homes Funding Corp.; no significant activity occurred in 2014. | |||
[2] | Includes Shea Homes Funding Corp.; no significant activity occurred in 2013. | |||
[3] | Includes Shea Homes Funding Corp., whose financial position at December 31, 2013 was not material. | |||
[4] | Includes Shea Homes Funding Corp., whose financial position at March 31, 2014 was not material. |