Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Document Information [Line Items] | |
Document Type | 10-K |
Amendment Flag | FALSE |
Document Period End Date | 31-Dec-14 |
Document Fiscal Year Focus | 2014 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | SHEA HOMES LIMITED PARTNERSHIP |
Entity Central Index Key | 1531744 |
Current Fiscal Year End Date | -19 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | No |
Entity Voluntary Filers | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 0 |
Entity Public Float | $0 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Assets | ||||
Cash and cash equivalents | $236,902 | $206,205 | $279,756 | $268,366 |
Restricted cash | 426 | 1,189 | ||
Accounts and other receivables, net | 147,508 | 147,499 | ||
Receivables from affiliates, net | 6,403 | 31,313 | ||
Inventory | 1,173,585 | 1,013,272 | ||
Investments in and advances to unconsolidated joint ventures | 42,764 | 48,785 | ||
Other assets, net | 59,122 | 57,070 | ||
Total assets | 1,666,710 | 1,505,333 | ||
Liabilities: | ||||
Notes payable | 761,404 | 751,708 | ||
Payables to affiliates | 4,797 | 21 | ||
Accounts payable | 67,321 | 62,346 | ||
Other liabilities | 278,330 | 245,801 | ||
Total liabilities | 1,111,852 | 1,059,876 | ||
SHLP equity: | ||||
Owners' equity | 549,373 | 440,268 | ||
Accumulated other comprehensive income | 5,106 | 4,788 | ||
Total SHLP equity | 554,479 | 445,056 | ||
Non-controlling interests | 379 | 401 | ||
Total equity | 554,858 | 445,457 | 319,247 | 328,003 |
Total liabilities and equity | $1,666,710 | $1,505,333 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Revenues | $419,919 | $284,489 | $256,083 | $180,115 | $340,031 | $238,309 | $217,310 | $134,960 | $1,140,606 | $930,610 | $680,147 | |||
Cost of sales | -885,018 | -709,412 | -538,434 | |||||||||||
Gross margin | 82,564 | 67,894 | 60,273 | 44,857 | 85,388 | 55,848 | 48,426 | 31,536 | 255,588 | 221,198 | 141,713 | |||
Selling expenses | -63,429 | -54,338 | -45,788 | |||||||||||
General and administrative expenses | -54,921 | -50,080 | -43,747 | |||||||||||
Equity in income (loss) from unconsolidated joint ventures | 9,142 | -1,104 | 378 | |||||||||||
Gain (loss) on reinsurance transaction | 7,177 | 2,011 | -12,013 | |||||||||||
Interest expense | -595 | [1] | -5,071 | [1] | -19,862 | [1] | ||||||||
Other income (expense), net | -1,350 | -778 | 9,119 | |||||||||||
Income (loss) before income taxes | 151,612 | 111,838 | 29,800 | |||||||||||
Income tax benefit (expense) | -18,213 | 14,101 | -616 | |||||||||||
Net income | 59,670 | 33,731 | 28,703 | 11,295 | 73,744 | 25,826 | 19,532 | 6,837 | 133,399 | 125,939 | 29,184 | |||
Less: Net loss (income) attributable to non-controlling interests | 37 | 8 | -146 | |||||||||||
Net income attributable to SHLP | $59,682 | $33,749 | $28,707 | $11,298 | $73,751 | $25,824 | $19,534 | $6,838 | $133,436 | $125,947 | $29,038 | |||
[1] | For the eight months ended August 31, 2013 and for the year ended December 31, 2012, assets qualifying for interest capitalization were less than debt; therefore, non-qualifying interest was expensed. For the period from September 2013 to December 2014, qualifying assets exceeded debt; therefore, no interest on the Secured Notes (see Note 10) was expensed. 2014 interest expense represents fees charged on the unused Revolver (see Note 10) that is not considered a cost of borrowing and is not capitalized. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income | $133,399 | $125,939 | $29,184 |
Other comprehensive income, before tax | |||
Unrealized investment holding gains during the year | 565 | 552 | 1,569 |
Less: Reclassification adjustments for investment gains included in net income | 0 | -39 | -3,976 |
Comprehensive income, before tax | 133,964 | 126,452 | 26,777 |
Income tax benefit (expense) | -247 | -242 | 532 |
Comprehensive income, net of tax | 133,717 | 126,210 | 27,309 |
Less: Comprehensive (income) loss attributable to non-controlling interests | 37 | 8 | -146 |
Comprehensive income attributable to SHLP | $133,754 | $126,218 | $27,163 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Equity (USD $) | Total | Members Equity | Accumulated Other Comprehensive Income | 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, 2011 | $328,003 | $294,511 | $6,392 | $300,903 | $27,100 | $173,555 | $120,955 | $1 | $0 | |
Comprehensive income (loss): | ||||||||||
Net income (loss) | 29,184 | 29,038 | 0 | 29,038 | 146 | 0 | 29,038 | 0 | 0 | |
Change in unrealized gains on investments, net | -1,875 | 0 | -1,875 | -1,875 | 0 | 0 | 0 | 0 | 0 | |
Comprehensive income, net of tax | 27,309 | 27,163 | 146 | |||||||
Redemption of Company's interest in consolidated joint venture (see Note 12) | -39,819 | -11,580 | 0 | -11,580 | -28,239 | 0 | -11,580 | 0 | 0 | |
Contributions from owners and non-controlling interests | [1] | 4,098 | 2,352 | 0 | 2,352 | 1,746 | 0 | 0 | 1,862 | 490 |
Distributions to non-controlling interests | -344 | 0 | 0 | 0 | -344 | 0 | 0 | 0 | 0 | |
Ending 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) | 125,939 | 125,947 | 0 | 125,947 | -8 | 43,379 | 39,453 | 34,133 | 8,982 | |
Change in unrealized gains on investments, net | 271 | 0 | 271 | 271 | 0 | 0 | 0 | 0 | 0 | |
Comprehensive income, net of tax | 126,210 | 126,218 | -8 | |||||||
Ending 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) | 133,399 | 133,436 | 0 | 133,436 | -37 | 1,934 | 4,757 | 100,340 | 26,405 | |
Change in unrealized gains on investments, net | 318 | 0 | 318 | 318 | 0 | 0 | 0 | 0 | 0 | |
Comprehensive income, net of tax | 133,717 | 133,754 | -37 | |||||||
Contributions from owners and non-controlling interests | [1] | 960 | 945 | 0 | 945 | 15 | 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 Dec. 31, 2014 | $554,858 | $549,373 | $5,106 | $554,479 | $379 | $218,868 | $182,623 | $117,074 | $30,808 | |
[1] | For the years ended December 31, 2014 and 2012, the Company sold property to affiliates under common control and, in accordance with U.S. generally accepted accounting principles ("GAAP"), $0.9 million and $2.4 million, respectively, of consideration received in excess of the net book value was recorded as a contribution from owners. | |||||||||
[2] | In 2014, the Company acquired property from an affiliate under common control for $4.4 million of cash, assumption of a $1.3 million net liability, and estimated future revenue participation payments of $19.6 million. The $25.3 million of consideration was recorded as a distribution to owners. |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Equity (Parenthetical) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2012 | |||
Contribution from owners | $960,000 | [1] | $4,098,000 | [1] |
Future payment for acquisition of property | 20,891,000 | 0 | ||
Distribution to owners | 25,276,000 | [2] | ||
Affiliated Entity | ||||
Contribution from owners | 2,400,000 | |||
Payment for acquisition of property | 4,400,000 | |||
Payment for acquisition of net liability | 1,300,000 | |||
Affiliated Entity | Future revenue participation payments | ||||
Future payment for acquisition of property | $19,600,000 | |||
[1] | For the years ended December 31, 2014 and 2012, the Company sold property to affiliates under common control and, in accordance with U.S. generally accepted accounting principles ("GAAP"), $0.9 million and $2.4 million, respectively, of consideration received in excess of the net book value was recorded as a contribution from owners. | |||
[2] | In 2014, the Company acquired property from an affiliate under common control for $4.4 million of cash, assumption of a $1.3 million net liability, and estimated future revenue participation payments of $19.6 million. The $25.3 million of consideration was recorded as a distribution to owners. |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities | |||
Net income | $133,399 | $125,939 | $29,184 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Equity in (income) loss from unconsolidated joint ventures | -9,142 | 1,104 | -378 |
(Gain) loss on reinsurance transaction | -7,177 | -2,011 | 12,013 |
Net gain on sale of available-for-sale investments | 0 | -15 | -8,806 |
Reversal of deferred tax asset valuation allowance | 0 | -15,630 | 0 |
Depreciation and amortization expense | 12,630 | 10,608 | 8,638 |
Inventory impairment | 9,035 | 0 | 0 |
Net interest capitalized on investments in unconsolidated joint ventures | -2,912 | -2,278 | -849 |
Distributions of earnings from unconsolidated joint ventures | 18,790 | 7,100 | 1,400 |
Changes in operating assets and liabilities: | |||
Restricted cash | 763 | 11,842 | 687 |
Receivables and other assets | -2,607 | -13,161 | -18,134 |
Inventory | -178,700 | -185,596 | -68,733 |
Payables and other liabilities | 28,375 | 14,231 | 38,323 |
Net cash provided by (used in) operating activities | 2,454 | -47,867 | -6,655 |
Investing activities | |||
Proceeds from sale of available-for-sale investments | 184 | 3,165 | 26,547 |
Collections on promissory notes from affiliates | 25,183 | 4,104 | 1,881 |
Investments in and advances to unconsolidated joint ventures | -29,158 | -26,145 | -11,967 |
Distributions of capital from unconsolidated joint ventures | 38,767 | 4,072 | 427 |
Net cash provided by (used in) investing activities | 34,976 | -14,804 | 16,888 |
Financing activities | |||
Principal payments to financial institutions and others | -3,308 | -10,880 | -2,429 |
Contributions from non-controlling interests | 15 | 0 | 1,746 |
Distributions to non-controlling interests | 0 | 0 | -344 |
Contributions from owners | 945 | 0 | 2,352 |
Distributions to owners | -4,385 | 0 | 0 |
Other financing activities | 0 | 0 | -168 |
Net cash provided by (used in) financing activities | -6,733 | -10,880 | 1,157 |
Net increase (decrease) in cash and cash equivalents | 30,697 | -73,551 | 11,390 |
Cash and cash equivalents at beginning of year | 206,205 | 279,756 | 268,366 |
Cash and cash equivalents at end of year | $236,902 | $206,205 | $279,756 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2014 | |
Organization | 1. Organization |
Shea Homes Limited Partnership, a California limited partnership (“SHLP”), 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 our limited partners who are comprised of entities and trusts, including J.F. Shea Co., Inc. (“JFSCI”), that are under 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 and sell land to other homebuilders. Our principal markets are California, Arizona, Colorado, Washington, Nevada, Florida, Virginia, North Carolina 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). |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies |
Basis of Presentation | |
The accompanying consolidated financial statements include 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. | |
Unless the context otherwise requires, the terms “we”, “us”, “our” and “the Company” refer to SHLP, its subsidiaries and its consolidated joint ventures. | |
Use of Estimates | |
Preparation of the consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect 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. | |
Reclassifications | |
Certain reclassifications were made in the 2013 consolidated financial statements to conform to classifications in 2014. At December 31, 2013, in the consolidated balance sheet, advances to unconsolidated joint ventures of $1.0 million were reclassified from receivables from affiliates to investments in and advances to unconsolidated joint ventures. In addition, for the year ended December 31, 2013 and 2012, in the consolidated statements of cash flows, advances of $0.8 million were reclassified from promissory notes from affiliates to investments in and advances to unconsolidated joint ventures, and collections of $0.1 million were reclassified from promissory notes from affiliates to distributions of capital from unconsolidated joint ventures, respectively. | |
Cash and Cash Equivalents | |
All highly liquid investments (original maturities of 90 days or less) are considered to be cash equivalents. | |
Concentration of Credit Risk | |
Financial instruments representing concentrations of credit risk are primarily cash, cash equivalents, investments and insurance receivables. | |
Cash in banks exceeded the federally insured limits; cash equivalents comprised primarily of money market securities and securities backed by the U.S. government; and insurance receivables were with highly rated insurers and/or collateralized. We have incurred no losses on deposits of cash and cash equivalents and believe our depository institutions are financially sound and present minimal credit risk. | |
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 delivered 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 be delivered in each community. Changes to estimated total development costs subsequent to initial home deliveries 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 (other than land held for sale) is determined to be unrecoverable, in which case inventory is adjusted to fair value. For land held for sale, inventory is stated at the lower of cost 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 exceeds 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 expected prices and incentives offered by us or other builders, 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 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. | |
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. We generally use discount rates ranging from 10% to 25%, subject to perceived risks associated with the community’s cash flow streams relative to its inventory. | |
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 fit and finish warranty period. Specific length, terms and conditions of completed operations claims vary depending on the market where homes deliver and can range up to ten years from the delivery 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-based 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, 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 ten 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 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, changes based on updated relevant information could result in actual costs differing significantly from estimates. | |
In accordance with our completed operations insurance policies, completed operations claims costs are recoverable from our subcontractors or insurance carriers. For policy years from August 1, 2001 through the present, completed operations claims are insured or reinsured by 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 deliver. Housing and other real estate sales deliver when all conditions of escrow are met, including delivery of the home or other real estate asset to the customer, 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 delivers. | |
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 if it is more likely than not some or all of the deferred tax assets 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. Assessment of a valuation allowance includes giving appropriate consideration to all positive and negative evidence related to realization of the deferred tax asset. This assessment considers, among other things, the nature, frequency and severity of current and cumulative losses in recent years, forecasts of future profitability, 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 on how uncertain tax positions should be accounted for and disclosed in the consolidated financial statements. The guidance requires 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 no uncertain tax positions exist that do not meet the more-likely-than-not criteria (see Note 13). | |
Advertising Costs | |
We expense advertising costs as incurred. For the years ended December 31, 2014, 2013 and 2012, we incurred and expensed advertising costs of $12.1 million, $7.4 million and $6.6 million, respectively. | |
New Accounting Pronouncements | |
In April 2014, the FASB issued Accounting Standard Update (“ASU”) 2014-08, Presentation of Financial Statements and Property, Plant, and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”), which is intended to change the criteria for reporting discontinued operations and enhance disclosures. Under this new guidance, only disposals representing a strategic shift in operations having a major effect on the entity’s operations and financial results should be presented as discontinued operations. If the disposal does qualify as a discontinued operation, the entity will be required to provide expanded disclosures, as well as disclosure of the pretax income attributable to the disposal of a significant part of an entity that does not qualify as a discontinued operation. ASU 2014-08 will be effective beginning January 1, 2015 and subsequent interim periods. The adoption of ASU 2014-08 is not expected to have a material effect on our consolidated financial statements. | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which provides a single comprehensive model in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASU No. 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update creates a five-step model requiring entities to exercise judgment when considering the terms of the contract(s) including (i) identifying the contract(s) with the customer, (ii) identifying the separate performance obligations in the contract, (iii) determining the transaction price, (iv) allocating the transaction price to the separate performance obligations, and (v) recognizing revenue when each performance obligation is satisfied. ASU 2014-09 will be effective beginning January 1, 2017 and subsequent interim periods. We have the option to apply the provisions of ASU 2014-09 either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of applying this ASU recognized at the date of initial application. Early adoption is not permitted. We are evaluating the impact the adoption of ASU 2014-09 will have on our consolidated financial statements. | |
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern, (“ASU 2014-15”). ASU 2014-15 requires us to perform interim and annual assessments on whether there are conditions or events that raise substantial doubt about our ability to continue as a going concern within one year of the date the financial statements are issued and to provide related disclosures, if required. ASU 2014-15 will be effective beginning January 1, 2016 and subsequent interim periods. The adoption of ASU 2014-15 is not expected to have a material effect on our consolidated financial statements. |
Restricted_Cash
Restricted Cash | 12 Months Ended |
Dec. 31, 2014 | |
Restricted Cash | 3. Restricted Cash |
At December 31, 2014, restricted cash included customer deposits temporarily restricted in accordance with regulatory requirements and cash used in lieu of bonds. At December 31, 2014 and December 31, 2013, restricted cash was $0.4 million and $1.2 million, respectively. |
Fair_Value_Disclosures
Fair Value Disclosures | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures | 4. Fair Value Disclosures | ||||||||||||||||
ASC 820, Fair Value Measurement, defines fair value as the price that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at measurement date and requires assets and liabilities carried at fair value to be classified and disclosed in the following three categories: | |||||||||||||||||
• | Level 1 — Quoted prices for identical instruments in active markets | ||||||||||||||||
• | Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are inactive; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets at measurement date | ||||||||||||||||
• | Level 3 — Valuations derived from techniques where one or more significant inputs or significant value drivers are unobservable in active markets at measurement date | ||||||||||||||||
At December 31, 2014, the non-financial instruments measured at fair value on a non-recurring basis were Level 3 inventories with a $23.9 million net book value and a $14.9 million fair value, resulting in an impairment charge of $9.0 million recorded in cost of sales. | |||||||||||||||||
Fair values for inventories using Level 3 inputs were primarily based on estimated future cash flows discounted for inherent risk associated with each asset. These discounted cash flows were 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 was located when assessment was made. These factors were specific to each community and may vary among communities. The discount rate used in determining each asset’s fair value depended on the community’s projected life and development stage. We generally use discount rates from 10% to 25%, subject to perceived risks associated with the community’s cash flow streams relative to its inventory. | |||||||||||||||||
At December 31, 2014 and 2013, as required by ASC 825, net book value and estimated fair value of notes payable were as follows: | |||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
Net Book | Estimated | Net Book | Estimated | ||||||||||||||
Value | Fair Value | Value | Fair Value | ||||||||||||||
(In thousands) | |||||||||||||||||
$750,000 8.625% senior secured notes due May 2019 | $ | 750,000 | $ | 787,500 | $ | 750,000 | $ | 830,625 | |||||||||
Secured promissory notes | $ | 11,404 | $ | 11,404 | $ | 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 year. | |||||||||||||||||
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 | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounts and Other Receivables, Net | 5. Accounts and Other Receivables, Net | ||||||||
At December 31, 2014 and 2013, accounts and other receivables, net were as follows: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Insurance receivables | $ | 136,155 | $ | 138,610 | |||||
Escrow receivables | 3,965 | 586 | |||||||
Notes receivables | 4,091 | 3,155 | |||||||
Development receivables | 1,317 | 3,093 | |||||||
Other receivables | 3,941 | 4,031 | |||||||
Reserve | (1,961 | ) | (1,976 | ) | |||||
Total accounts and other receivables, net | $ | 147,508 | $ | 147,499 | |||||
Insurance receivables are from insurance carriers for reimbursable claims pertaining to resultant damage from construction defects on delivered homes (see Note 11). Delivered homes for policy years August 1, 2001 to present are insured or reinsured by third-party and affiliate insurance carriers. At December 31, 2014 and 2013, insurance receivables from affiliate insurance carriers were $61.4 million and $44.0 million, respectively. | |||||||||
We reserve for uncollectible receivables that are specifically identified. |
Inventory
Inventory | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Inventory | 6. Inventory | ||||||||||||
At December 31, 2014 and 2013, inventory was as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Model homes | $ | 86,340 | $ | 87,728 | |||||||||
Completed homes for sale | 32,350 | 20,285 | |||||||||||
Homes under construction | 310,318 | 257,662 | |||||||||||
Lots available for construction | 402,001 | 342,622 | |||||||||||
Land under development | 107,120 | 122,257 | |||||||||||
Land held for future development | 126,925 | 70,618 | |||||||||||
Land held for sale | 78,845 | 79,102 | |||||||||||
Land deposits and preacquisition costs | 29,686 | 32,998 | |||||||||||
Total inventory | $ | 1,173,585 | $ | 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 significant development has not occurred. Land held for sale represents residential and commercial land designated for sale, including water system connection rights that will be transferred to homebuyers upon delivery of their home, transferred upon sale of land to the respective buyer, sold or leased, but generally only within the local jurisdiction. At December 31, 2014 and 2013, land held for sale included water system connection rights of $12.6 million and $11.4 million, respectively. | |||||||||||||
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 years ended December 31, 2014, 2013 and 2012, inventory impairment charges were as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | |||||||||||||
Inventory impairment charge | $ | 9,035 | $ | 0 | $ | 0 | |||||||
Remaining carrying value of inventory impaired at end of year | $ | 14,888 | $ | 0 | $ | 0 | |||||||
Projects impaired | 3 | 0 | 0 | ||||||||||
Projects evaluated for impairment (a) | 145 | 126 | 132 | ||||||||||
(a) | Large land parcels not subdivided into communities are counted as one project. Once parcels are subdivided, the project count will increase accordingly. | ||||||||||||
Write-off of Deposits and Preacquisition Costs | |||||||||||||
Land deposits and preacquisition costs for potential acquisitions and land option contracts are included in inventory. When a potential acquisition or land option contract is abandoned, related deposits and preacquisition costs are written off to other income (expense), net. For the years ended December 31, 2014, 2013 and 2012, write-offs of deposits and preacquisition costs were $1.3 million, $1.4 million and $2.0 million, respectively. | |||||||||||||
Interest Capitalization | |||||||||||||
Interest is capitalized to inventory during development and other qualifying activities and is charged to cost of sales as related units deliver. Interest is capitalized to investments in unconsolidated joint ventures during the period the joint venture has activities in progress to commence its planned principal operations, and is charged to equity in income (loss) from unconsolidated joint ventures over the useful life of the joint venture’s assets. | |||||||||||||
For the years ended December 31, 2014, 2013 and 2012, interest incurred, capitalized and expensed was as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Interest incurred | $ | 68,204 | $ | 67,048 | $ | 66,857 | |||||||
Interest expensed (a) | $ | 595 | $ | 5,071 | $ | 19,862 | |||||||
Interest capitalized as a cost of inventory | $ | 64,697 | $ | 59,699 | $ | 46,146 | |||||||
Interest previously capitalized as a cost of inventory, included in cost of sales | $ | (68,780 | ) | $ | (60,448 | ) | $ | (54,733 | ) | ||||
Interest capitalized in ending inventory (b) | $ | 98,017 | $ | 102,100 | $ | 102,849 | |||||||
Interest capitalized as a cost of investments in unconsolidated joint ventures | $ | 2,912 | $ | 2,278 | $ | 849 | |||||||
Interest previously capitalized as a cost of investments in joint ventures, included in equity in income (loss) from unconsolidated joint ventures | $ | (2,444 | ) | $ | (1,189 | ) | $ | (849 | ) | ||||
Interest capitalized in ending investments in unconsolidated joint ventures | $ | 1,557 | $ | 1,089 | $ | 0 | |||||||
(a) | For the eight months ended August 31, 2013 and for the year ended December 31, 2012, assets qualifying for interest capitalization were less than debt; therefore, non-qualifying interest was expensed. For the period from September 2013 to December 2014, qualifying assets exceeded debt; therefore, no interest on the Secured Notes (see Note 10) was expensed. 2014 interest expense represents fees charged on the unused Revolver (see Note 10) that is not considered a cost of borrowing and is not capitalized. | ||||||||||||
(b) | Inventory impairment charges were recorded against total inventory of the respective community. Capitalized interest reflects the gross amount of capitalized interest as impairment charges recognized were generally not allocated to specific components of inventory. | ||||||||||||
Model Homes Costs | |||||||||||||
Certain costs of model homes are capitalized to inventory and amortized as selling expense when the related units in the respective communities deliver. For the years ended December 31, 2014, 2013 and 2012, amortized model homes costs were $12.0 million, $10.3 million and $8.2 million, respectively. |
Investments_in_and_Advances_to
Investments in and Advances to Unconsolidated Joint Ventures | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Investments in and Advances to Unconsolidated Joint Ventures | 7. Investments in and Advances to 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. 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 the respective joint ventures. Deficit Distributions are offset by future earnings of, or future contributions to, the joint ventures. At December 31, 2014 and 2013, Deficit Distributions were $0.3 million and $0.4 million, respectively. | |||||||||||||
At December 31, 2014 and 2013, investments in and advances to unconsolidated joint ventures were as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Equity investments | $ | 34,037 | $ | 47,748 | |||||||||
Loan advances | 8,727 | 1,037 | |||||||||||
Total investments in and advances to unconsolidated joint ventures | $ | 42,764 | $ | 48,785 | |||||||||
At December 31, 2014 and 2013, and for the years ended December 31, 2014, 2013 and 2012, condensed financial information for our unconsolidated joint ventures was as follows: | |||||||||||||
Condensed Balance Sheet Information | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Assets | |||||||||||||
Real estate inventory | $ | 253,422 | $ | 267,460 | |||||||||
Other assets | 83,674 | 130,840 | |||||||||||
Total assets | $ | 337,096 | $ | 398,300 | |||||||||
Liabilities and equity | |||||||||||||
Notes payable | $ | 159,042 | $ | 78,589 | |||||||||
Other liabilities | 58,376 | 99,395 | |||||||||||
Total liabilities | 217,418 | 177,984 | |||||||||||
Equity: | |||||||||||||
The Company (a) | 33,731 | 47,397 | |||||||||||
Others | 85,947 | 172,919 | |||||||||||
Total equity | 119,678 | 220,316 | |||||||||||
Total liabilities and equity | $ | 337,096 | $ | 398,300 | |||||||||
Condensed Income Statement Information | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Revenues | $ | 288,623 | $ | 90,743 | $ | 46,586 | |||||||
Expenses | (223,899 | ) | (85,594 | ) | (48,079 | ) | |||||||
Net income (loss) | 64,724 | 5,149 | (1,493 | ) | |||||||||
The Company’s share of net income (loss) | $ | 9,142 | $ | (1,104 | ) | $ | 378 | ||||||
(a) | At December 31, 2014 and 2013, includes Deficit Distributions of $0.3 million and $0.4 million, respectively. | ||||||||||||
At December 31, 2014 and 2013, total unconsolidated joint ventures’ notes payable consisted of the following: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Bank and seller notes payable: | |||||||||||||
Guaranteed (subject to remargin obligations) | $ | 55,675 | $ | 52,515 | |||||||||
Non-Guaranteed | 34,824 | 10,073 | |||||||||||
Total bank and seller notes payable (a) | 90,499 | 62,588 | |||||||||||
Partner notes payable (b) : | |||||||||||||
Unsecured | 68,543 | 16,001 | |||||||||||
Total unconsolidated joint venture notes payable | $ | 159,042 | $ | 78,589 | |||||||||
Other unconsolidated joint venture notes payable (c) | $ | 83,847 | $ | 55,441 | |||||||||
(a) | All bank and seller notes were secured by real property. | ||||||||||||
(b) | No guarantees were provided on partner notes payables. In January 2014, a $3.2 million partner note from one joint venture was paid in full. | ||||||||||||
(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 a guaranty. | ||||||||||||
At December 31, 2014 and 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 that is limited to the lesser of 50% of the outstanding balance in total for these joint venture loans or $35.0 million, which outstanding loan balances at December 31, 2014 and 2013 were $43.0 million and $47.7 million, respectively. Consequently, our maximum remargin obligation at December 31, 2014 and 2013 was $21.5 million and $23.8 million, respectively. We also have an agreement where we could potentially recover a portion of payments we made. However, we cannot provide assurance we could collect under this 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 December 31, 2014 and 2013 were $12.7 million and $4.8 million, respectively. At December 31, 2014 and 2013, the total maximum borrowings permitted on these loans were $21.6 million and $21.6 million, respectively. We also have reimbursement rights where we could potentially recover a portion of payments we made. However, we cannot provide assurance we could collect such payments. | |||||||||||||
No liabilities were recorded for these guarantees at December 31, 2014 and 2013 as the fair value of the secured real estate assets exceeded the threshold at which a remargin payment is required. | |||||||||||||
At December 31, 2014 and 2013, loan advances to unconsolidated joint ventures, including accrued interest, were $8.7 million and $1.0 million, respectively. These notes receivable bear interest ranging from 7.5% to 12% and mature through 2021. Further, a loan advance 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 loan advances, which includes consideration of prior payment history, operating performance and future payment requirements under the applicable note. Based on these criteria, we do not anticipate collection risks on these loan advances. | |||||||||||||
Our ability to make joint venture and other restricted payments and investments is governed by the Indenture governing the Secured Notes (the “Indenture”, see Note 10). We are permitted to make restricted payments under (i) a $70.0 million revolving basket available solely for joint venture investments and advances; (ii) a $10 million general basket that can be used for joint venture investments and advances; and (iii) a broader restricted payment basket available if 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. At December 31, 2013, we made aggregate contributions of $15.1 million to this joint venture, which were returned to us by December 31, 2014. |
Variable_Interest_Entities
Variable Interest Entities | 12 Months Ended |
Dec. 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. At December 31, 2014 and 2013, all VIEs 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 December 31, 2014 and 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 December 31, 2014 and 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 us 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. We and RRWS Partner each executed limited completion, interest and carry guarantees and environmental indemnities on a joint and several basis. In addition, we and RRWS Partner executed loan-to-value maintenance agreements for each loan on a joint and several basis. We have a maximum aggregate liability under the remargin arrangements of the lesser of 50% of the outstanding balances in total for these joint venture loans or $35.0 million. Our and RRWS Partner’s obligations under the remargin arrangements are limited during the first two years of the loans. In addition to remargin arrangements, the RRWS Partner and several of its principals executed repayment guarantees with no limit on their liability. At December 31, 2014 and 2013, outstanding bank notes payable were $43.0 million and $47.7 million, respectively, of which we have a maximum remargin obligation of $21.5 million and $23.8 million, respectively. We also have an agreement from the RRWS Partner, under which we could potentially recover a portion of payments we made. However, we cannot provide assurance we could collect under this agreement. | |
At December 31, 2014 and 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 us 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. We and Polo Partner each executed loan-to-value maintenance arrangements for each loan on a joint and several basis. At December 31, 2014 and 2013, outstanding bank notes payable were $12.7 million and $4.8 million, respectively, and total maximum borrowings permitted on these loans were $21.6 million and $21.6 million, respectively. We also have reimbursement rights where we could potentially recover a portion of payments we made. However, we cannot provide assurance we could collect such payments. | |
At December 31, 2014 and December 31, 2013, we had a variable interest in a third unconsolidated joint venture determined to be a VIE. The joint venture, Vistancia West Holdings LP (“Vistancia West”), was formed in August 2013 and is owned 10% by us and 90% by a third-party investor (“Vistancia West Partner”). A wholly-owned subsidiary of Vistancia West entered into a $27.5 million revolving credit facility in September 2014 with a three-year term, renewable annually subject to certain conditions. The revolving credit facility is secured by the underlying property and is non-recourse to us and the Vistancia West Partner. At December 31, 2014, outstanding bank notes payable were $3.8 million. | |
In accordance with ASC 810, we determined we were not the primary beneficiaries of RRWS, Polo and Vistancia West because we did not have the power to direct activities that most significantly impact the economic performance of these entities, 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 December 31, 2014 and 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 December 31, 2014, we had $4.2 million of refundable and non-refundable cash deposits associated with land option contracts with unconsolidated VIEs, having a $60.6 million remaining purchase price. We also had $21.2 million of refundable and non-refundable cash deposits associated with land option contracts that were not with VIEs, having a $450.6 million remaining purchase price. | |
Our loss exposure on land option contracts consists of non-refundable deposits, which were $24.8 million and $6.9 million at December 31, 2014 and 2013, respectively, and capitalized preacquisition costs of $4.4 million and $12.0 million, respectively, which were in inventory in the consolidated balance sheets. |
Other_Assets_Net
Other Assets, Net | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Assets, Net | 9. Other Assets, Net | ||||||||
At December 31, 2014 and 2013, other assets were as follows: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Income tax receivable | $ | 1,384 | $ | 2,199 | |||||
Deferred tax asset (see Note 13) | 20,159 | 16,337 | |||||||
Investments | 9,815 | 9,439 | |||||||
Property and equipment, net | 4,140 | 4,103 | |||||||
Capitalized loan origination fees | 9,730 | 11,089 | |||||||
Deposits in lieu of bonds and letters of credit | 8,653 | 10,294 | |||||||
Prepaid insurance | 2,589 | 2,460 | |||||||
Other | 2,652 | 1,149 | |||||||
Total other assets, net | $ | 59,122 | $ | 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 year ended December 31, 2013, there were $0.1 million of realized gains on available-for-sale securities. For the year ended December 31, 2014, there were no realized gains or losses. | |||||||||
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 or letters of credit with various agencies for some of our homebuilding projects. These deposits may be returned as the collateral requirements decrease or they are replaced with new bonds or letters of credit. |
Notes_Payable
Notes Payable | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Notes Payable | 10. Notes Payable | ||||||||
At December 31, 2014 and 2013, notes payable were as follows: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
$750.0 million 8.625% senior secured notes, due May 2019 | $ | 750,000 | $ | 750,000 | |||||
$125.0 million secured revolving credit facility (the “Revolver”), interest currently at the applicable Eurocurrency rate plus 2.75%, matures March 1, 2016 | 0 | 0 | |||||||
Promissory notes, interest ranging from 1% to 4%, maturing through 2016, secured by deeds of trust on inventory | 11,404 | 1,708 | |||||||
Total notes payable | $ | 761,404 | $ | 751,708 | |||||
Our Secured Notes were issued on May 10, 2011 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. The Secured Notes may be redeemed prior to May 15, 2015 subject to a make-whole premium. At December 31, 2014 and 2013, accrued interest was $8.1 million and $8.1 million, respectively. | |||||||||
The Indenture 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 into unrelated businesses, and enter in certain transactions with our affiliates. At December 31, 2014 and 2013, we were in compliance with these covenants. | |||||||||
In February 2014, we replaced our $75.0 million letter of credit facility with 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 we are subject to financial covenants, including minimum net worth and leverage and interest coverage ratios. If we do not maintain compliance with these financial covenants, the Revolver converts to an 18-month amortizing term loan. At December 31, 2014, we were in compliance with these covenants and no amounts were outstanding. |
Other_Liabilities
Other Liabilities | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other Liabilities | 11. Other Liabilities | ||||||||||||
At December 31, 2014 and 2013, other liabilities were as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Completed operations reserves | $ | 136,155 | $ | 138,610 | |||||||||
Warranty reserves | 22,698 | 20,648 | |||||||||||
Accrued profit and revenue participation arrangements (see Note 12) | 23,815 | 678 | |||||||||||
Deferred revenue/gain | 22,769 | 29,358 | |||||||||||
Provisions for delivered homes/communities | 9,116 | 10,591 | |||||||||||
Deposits (primarily homebuyer) | 17,869 | 14,281 | |||||||||||
Legal reserves | 15,705 | 4,576 | |||||||||||
Accrued interest | 8,127 | 8,086 | |||||||||||
Accrued compensation and benefits | 12,534 | 9,389 | |||||||||||
Distributions payable | 2,169 | 2,531 | |||||||||||
Deficit Distributions (see Note 7) | 307 | 351 | |||||||||||
Other | 7,066 | 6,702 | |||||||||||
Total other liabilities | $ | 278,330 | $ | 245,801 | |||||||||
Completed Operations Reserves | |||||||||||||
Reserves for completed operations primarily represent claims for property damage to completed homes and projects outside of our one-to-two year fit and finish warranty period. Specific length, terms and conditions of completed operations claims vary depending on the market in which homes deliver and can range up to ten years from the delivery 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 by third-party and affiliate insurance carriers. | |||||||||||||
For the years ended December 31, 2014, 2013 and 2012, changes in completed operations reserves were as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Insured completed operations | |||||||||||||
Balance, beginning of the year | $ | 138,610 | $ | 131,519 | $ | 109,390 | |||||||
Reserves provided | 15,133 | 19,002 | 40,087 | ||||||||||
Claims paid | (17,588 | ) | (11,911 | ) | (17,958 | ) | |||||||
Total completed operations reserves | $ | 136,155 | $ | 138,610 | $ | 131,519 | |||||||
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 December 31, 2014 and 2013, insurance receivables were $136.2 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, claims reporting and settlement patterns, insurance industry practices, insurance regulations and legal precedent. 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 fit and finish warranty for our homes. Specific terms and conditions of these warranties vary in the markets in which homes deliver. 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 delivered, historical and anticipated warranty claims, and cost per claim history and trends. We regularly assess the adequacy of our warranty liabilities and adjust amounts as necessary. | |||||||||||||
For the years ended December 31, 2014, 2013 and 2012, changes in warranty liability were as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Balance, beginning of the year | $ | 20,648 | $ | 17,749 | $ | 17,358 | |||||||
Provision for warranties | 14,363 | 11,188 | 8,958 | ||||||||||
Warranty costs paid | (12,313 | ) | (8,289 | ) | (8,567 | ) | |||||||
Balance, end of the year | $ | 22,698 | $ | 20,648 | $ | 17,749 | |||||||
Deferred Revenue/Gain | |||||||||||||
Deferred revenue/gain represents deferred revenues or gains on transactions in which an insufficient down payment was received or a future performance, passage of time or event is required. At December 31, 2014 and 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 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 change based on changes in actuarial estimates. Changes to the deferred gain are recognized as current period income or expense. At December 31, 2014 and 2013, the unamortized deferred gain was $14.9 million and $18.9 million, respectively. For the years ended December 31, 2014, 2013 and 2012, we recognized $4.1 million, $1.4 million and $(4.7) million, respectively, of this deferral as income (expense), which was included in gain (loss) on reinsurance transaction, and includes both the impact of income recognized from claims paid and as income or expense from increases or decreases to the deferred gain from changes in actuarial estimates. | |||||||||||||
Second, PIC entered into reinsurance agreements with 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 change based on changes in actuarial estimates. Changes to the deferred gain are recognized as current period income or expense. At December 31, 2014 and 2013, the unamortized deferred gain was $4.7 million and $7.8 million, respectively. For the years ended December 31, 2014, 2013, and 2012, we recognized $3.1 million, $0.6 million and $(7.3) million, respectively, of this deferral as income (expense), which was included in gain (loss) on reinsurance transaction, and includes both the impact of income recognized from claims paid as well as income or expense from increases or decreases to the deferred gain from changes in actuarial adjustments. | |||||||||||||
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 we recorded the remaining $3.3 million distribution payable to this member, which is paid $0.1 million quarterly. At December 31, 2014 and 2013, the distribution payable was $2.2 million and $2.5 million, respectively. |
Affiliate_Transactions
Affiliate Transactions | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Affiliate Transactions | 12. Affiliate Transactions | ||||||||
Affiliate Receivables and Payables | |||||||||
At December 31, 2014 and 2013, receivables from affiliates, net were as follows: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Note receivable from JFSCI | $ | 0 | $ | 21,588 | |||||
Notes receivable from affiliates | 15,303 | 18,822 | |||||||
Reserves for notes receivable from affiliates | (12,917 | ) | (12,842 | ) | |||||
Receivables from affiliates | 4,017 | 3,745 | |||||||
Total receivables from affiliates, net | $ | 6,403 | $ | 31,313 | |||||
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. During 2013, JFSCI elected to make prepayments, including accrued interest, of $3.8 million and in 2014, paid the balance in full. | |||||||||
At December 31, 2014 and 2013, notes receivable from affiliates, including accrued interest, were $2.4 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 March 2019. At December 31, 2014, these notes bore interest ranging from Prime less 0.75% (2.5%) to 4.20%, and at December 31, 2013, from Prime less .75% (2.5%) to 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 in 2009 and fully reserved. We do not anticipate collection risks on the other notes receivable. | |||||||||
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 affiliates or payables to affiliates, are non-interest bearing, due on demand and generally paid monthly. At December 31, 2014 and 2013, these receivables were $4.0 million and $3.7 million, respectively, and these payables were $4.8 million and $0.1 million, respectively. | |||||||||
Real Property and Joint Venture Transactions | |||||||||
Redemption or Purchase of Interest in Joint Venture | |||||||||
In March 2012, our entire 58% interest in Shea Colorado, LLC (“SCLLC”), a consolidated joint venture with Shea Properties II, LLC, an affiliate and the non-controlling member, was redeemed by SCLLC. In valuing our 58% interest in SCLLC, and to ensure receipt of net assets of equal value to our ownership interest, we used third-party real estate appraisals. The estimated fair value of the assets received by us was $30.8 million. However, as the non-controlling member is an affiliate under common control, the assets and liabilities received by us were recorded at net book value and the difference in our investment in SCLLC and the net book value of the assets and liabilities received was recorded as a reduction to our equity. | |||||||||
As consideration for the redemption, SCLLC distributed assets and liabilities to us having a net book value of $24.0 million, including $2.2 million of cash, a $3.0 million secured note receivable, $20.0 million of inventory and $1.2 million of other liabilities. As a result of this redemption, effective March 31, 2012, SCLLC is no longer included in these consolidated financial statements. This transaction resulted in a net reduction of $41.8 million in assets and $2.0 million in liabilities, and a $39.8 million reduction in total equity, of which $11.6 million was attributable to our equity and $28.2 million was attributable to non-controlling interests. | |||||||||
Other Real Property and Joint Venture Transactions | |||||||||
In January 2014, we entered into a purchase and sale agreement with an affiliate and acquired undeveloped land in Northern California. Consideration included $4.4 million of cash, assumption of a $1.3 million net liability, and future revenue participation payments (the “RAPA”), which is calculated at 11% of gross revenues from home deliveries, payable quarterly and limited to $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 an affiliate under common control, the $25.3 million of consideration to be paid in excess of book value was recorded as an equity distribution. | |||||||||
In February 2014, we entered into a purchase and sale agreement to sell land in Southern California to an affiliate under common control for $1.0 million cash and assumption of certain construction obligations. 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. | |||||||||
In June 2014, we entered into a purchase and sale agreement (“PSA”) to purchase land in Northern California from an unconsolidated joint venture in which we have a 33% ownership interest. We paid $2.7 million for 70 lots and acquired an option to purchase 262 lots in seven phases through 2019 for an estimated $18.5 million. The PSA also includes additional consideration based on future price and profit appreciation for each phase, payable after the last home delivery for that respective phase. In conjunction with the purchase of the 70 lots, we deferred $0.9 million of profit representing our proportionate share of the corresponding land sale profit from the joint venture and recorded it as a reduction of inventory. | |||||||||
In October 2012, we sold land in Colorado to an affiliate for $4.6 million. As the affiliate is under common control, the $2.4 million of net sales proceeds received in excess of the net book value of the land sold was recorded as an equity contribution. | |||||||||
At December 31, 2014 and 2013, we were the managing member for 13 and 10, 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. Fees representing cost reimbursement are recorded as an offset to general and administrative expense; fees in excess of costs are recorded as revenues. For the years ended December 31, 2014, 2013 and 2012, $11.4 million, $8.0 million and $4.3 million, respectively, of management fees were offset against general and administrative expenses; and $1.1 million, $0.5 million and $0.2 million, respectively, of management fees were included in revenues. | |||||||||
Other Affiliate Transactions | |||||||||
JFSCI provides corporate services, including management, legal, tax, information technology, risk management, facilities, accounting, treasury and human resources. For the years ended December 31, 2014, 2013 and 2012, general and administrative expenses included $23.3 million, $20.3 million and $18.1 million, respectively, for these corporate services. | |||||||||
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. Some of 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 from unrelated third party insurance providers 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 years ended December 31, 2014, 2013 and 2012, amounts paid to affiliates for this retention insurance coverage were $21.3 million, $14.1 million and $13.1 million, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Taxes | 13. Income Taxes | ||||||||||||
Income Tax Benefit (Expense) | |||||||||||||
For the years ended December 31, 2014, 2013 and 2012, major components of the income tax benefit (expense), primarily for SHI, were as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Current: | |||||||||||||
Federal | $ | (19,361 | ) | $ | 0 | $ | 0 | ||||||
State | (3,673 | ) | (1,766 | ) | (78 | ) | |||||||
Total current | (23,034 | ) | (1,766 | ) | (78 | ) | |||||||
Deferred: | |||||||||||||
Federal | 4,577 | 13,385 | (532 | ) | |||||||||
State | 244 | 2,482 | (6 | ) | |||||||||
Total deferred | 4,821 | 15,867 | (538 | ) | |||||||||
Total income tax benefit (expense) | $ | (18,213 | ) | $ | 14,101 | $ | (616 | ) | |||||
Reconciliation of Expected Income Tax Benefit (Expense) | |||||||||||||
For the years ended December 31, 2014, 2013 and 2012, the effective tax rate differed from the 35% federal statutory rate due to the following: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | |||||||||||||
Income before income taxes | $ | 151,612 | $ | 111,838 | $ | 29,800 | |||||||
Income tax expense computed at statutory rate | $ | (53,064 | ) | $ | (39,143 | ) | $ | (10,430 | ) | ||||
Increase (decrease) resulting from: | |||||||||||||
Non-taxable entities income (a) | 35,893 | 25,275 | 7,134 | ||||||||||
State taxes, net of federal income tax benefit | (2,603 | ) | (1,901 | ) | (1,045 | ) | |||||||
Small insurance company election (831b) | 1,057 | 198 | (2,583 | ) | |||||||||
Section 199 deduction | 1,313 | 875 | 0 | ||||||||||
Change in valuation allowance for deferred tax assets | 247 | 32,223 | 5,461 | ||||||||||
Other, net | (1,056 | ) | (3,426 | ) | 847 | ||||||||
Total income tax benefit (expense) | $ | (18,213 | ) | $ | 14,101 | $ | (616 | ) | |||||
Effective tax rate | 12 | % | (12.6 | )% | 2.1 | % | |||||||
(a) | Non-taxable entities represent income or loss related to SHLP, non-controlling interests and consolidated limited partnerships and limited liability companies in which the taxable income or loss is reflected on the respective partners’ tax return. | ||||||||||||
Deferred Income Taxes | |||||||||||||
At December 31, 2014 and 2013, the tax effects of temporary differences that give rise to significant portions of deferred taxes for SHI were as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Housing and land inventory basis differences | $ | 14,214 | $ | 8,746 | |||||||||
Available loss carryforwards | 4,961 | 7,696 | |||||||||||
Impairment of inventory and investments | 482 | 782 | |||||||||||
Other | 1,399 | 1,166 | |||||||||||
Total deferred tax assets | 21,056 | 18,390 | |||||||||||
Deferred tax liabilities | |||||||||||||
Income recognition | (635 | ) | (1,544 | ) | |||||||||
Total deferred tax liabilities | (635 | ) | (1,544 | ) | |||||||||
Subtotal | 20,421 | 16,846 | |||||||||||
Valuation allowance | (262 | ) | (509 | ) | |||||||||
Net deferred tax assets | $ | 20,159 | $ | 16,337 | |||||||||
Due to a change in ownership of Shea Homes Southwest, Inc., formerly known as Foundation Administration Services Corp., a wholly-owned subsidiary, in 2001, NOL carryforwards utilized in a given year to offset future taxable income are subject to an annual limitation of approximately $4.6 million pursuant to Section 382 of the U.S. Internal Revenue Code of 1986, as amended. As a result of this annual limitation, available NOL carryforwards have been reduced by the amount expected to expire. At December 31, 2014, SHI had NOL carryforwards of approximately $14.2 million, net, which expire by 2018 and are subject to annual limitations of $4.6 million. | |||||||||||||
Valuation Allowance | |||||||||||||
In accordance with ASC 740, deferred tax assets are evaluated to determine if valuation allowances are required. ASC 740 requires companies to assess valuation allowances based on evidence using a “more-likely-than-not” standard. A valuation allowance reflects the estimated amount of deferred tax assets that may not be realized due to inherent uncertainty of future income from homebuilding operations of SHI and potential expiration of net operating loss (the “NOL”) carryforwards. The deferred tax asset amount considered realizable may change in the future, depending on profitability. | |||||||||||||
Because of the continued annual pretax losses for SHI through the year ended December 31, 2009, the Company determined it was more-likely-than-not that at December 31, 2009, the net deferred tax assets of $51.9 million would not be realized. Accordingly, for the year ended December 31, 2009, the deferred tax asset valuation allowance increased $32.7 million to fully reserve the net deferred tax asset. At December 2011 and 2010, our assessment of deferred tax assets was consistent with 2009 and the net deferred tax asset of $38.2 million and $48.8 million, respectively, remained fully reserved. For the year ended December 31, 2012, SHI generated pretax income for the first time since 2007, a result of the beginning of a housing industry recovery. However, since we only returned to profitability in 2012 and the housing recovery was in its early stages, the $32.7 million net deferred tax assets at December 31, 2012 remained fully reserved. | |||||||||||||
At December 31, 2013, the Company determined it was more-likely-than-not most of the net deferred tax assets would be realized, which, during the 2013 fourth quarter, resulted in a $15.6 million reversal of the valuation allowance on its deferred tax assets. The Company evaluated positive and negative evidence, including financial performance, to determine its ability to realize its deferred tax assets. In its evaluation, the Company gave more weight to objective evidence, such as sales backlog, compared to subjective evidence, such as tax planning strategies. Also, significant weight was given to evidence directly related to the Company’s recent financial performance, such as customer traffic at its communities and cancellation rates, compared to indirect evidence, such as mortgage interest rates, or less recent evidence. | |||||||||||||
At December 31, 2013, in evaluating the valuation allowance, the Company gave more weight to its improving financial results in 2013, particularly growth in pre-tax income, gross margins and backlog sales value. The Company also estimated that if its pre-tax income continued, the NOLs would be realized before they expire in 2018. Additionally, the Company considered the subjective, direct positive evidence of improving market fundamentals and its plan to open new communities. | |||||||||||||
Prior to December 31, 2013, the Company gave substantial weight to its losses incurred during the housing downturn in addition to other negative, indirect evidence, such as weakness in the economy, consumer confidence and housing market and a more restrictive mortgage lending environment. | |||||||||||||
At December 31, 2014 and 2013, the valuation allowance related to capital losses that expire in 2016 and 2017, and the impairment of debt securities that mature in 2021 and 2022. It is unknown if these deferred tax assets will be realized. | |||||||||||||
Uncertain Tax Positions | |||||||||||||
Since 2002, SHLP and SHI used the completed contract method of accounting (“CCM”) to determine when to recognize taxable income or loss with respect to the majority of their respective homebuilding operations. Federal law allows homebuilders like SHLP and SHI to defer taxable income/loss recognition from their homebuilding operations until the tax year in which the contracts are substantially complete, rather than annually based on the percentage of completion method. The U.S. Internal Revenue Service (the “IRS”) objected to SHLP’s and SHI’s use of the CCM and assessed a tax deficiency against them, contending they did not accurately and appropriately apply the relevant U.S. Treasury Regulations in calculating their respective homebuilding projects’ income/loss pursuant to the CCM for years 2004 through 2008, and years 2003 through 2008, respectively. SHLP and SHI believe their use of the CCM complies with the relevant regulations and filed a petition in 2009 with the United States Tax Court (the “Tax Court”) to contest the notice of deficiency and to challenge the IRS position. On February 12, 2014, the Tax Court ruled in our favor, issuing a formal decision on April 21, 2014 (the “Tax Court Decision”). Pursuant to the ruling, we are permitted to continue to report income and loss from the delivery of homes using the CCM. As a result, no additional tax, interest or penalties are currently due and owing by the Partners or us. The IRS has appealed the Tax Court Decision to the U.S. Court of Appeals for the Ninth Circuit (the “Court of Appeals”). We and the IRS have each filed briefs and the IRS is entitled to file a reply brief, which is due to be filed no later than March 2015. The Court of Appeals will schedule oral argument after briefing is completed; we cannot predict when it will schedule the argument or issue its decision. | |||||||||||||
Notwithstanding the appeal by the IRS, we believe our position will more likely than not 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 in whole or in part, SHI could be obligated to pay the IRS and applicable state taxing authorities up to $74 million and, under the Tax Distribution Agreement, SHLP could be obligated to make a distribution to the Partners up to $134 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 for this matter may not exceed $70.0 million, unless we receive a cash equity contribution from JFSCI for such excess or unless we use some of our capacity under the Indenture to make restricted payments. Any potential shortfall would be absorbed by the Partners. | |||||||||||||
In 2014, we filed Form 3115 with the IRS to change our income tax accounting method of how we record certain expenses on our income tax returns, beginning in 2014. As we believe it is more likely-than-not the change will be approved by the IRS, we reflected this income tax accounting method in our 2014 income tax expense. If we are unsuccessful in our application to change our income tax accounting method, we could incur an income tax liability for prior years ranging up to $13.5 million, and the Partners could have a reduction in their income tax liability ranging up to $13.5 million. |
Owners_Equity
Owners' Equity | 12 Months Ended |
Dec. 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 Prime less 2.05% per annum through December 31, 2012 (1.2% at December 31, 2012) on unreturned preferred capital balances and Series D holders have a 1% ownership interest and earn a preferred return at 7% per annum through December 31, 2012 on unreturned preferred capital balances. In August 2013, the Agreement was amended and the rates on the Series B and Series D were changed, effective January 1, 2013. Series B earns a rate of 1.2% from January 1, 2013 to 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 earns a rate of 2.0% from January 1, 2013 to 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 December 31, 2014 and 2013, accumulated undistributed preferred returns for Series B holders were $24.6 million and $22.7 million, respectively. At December 31, 2014 and 2013, accumulated undistributed preferred returns for Series D holders were $60.4 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. |
Retirement_Savings_and_Deferre
Retirement Savings and Deferred Compensation Plans | 12 Months Ended |
Dec. 31, 2014 | |
Retirement Savings and Deferred Compensation Plans | 15. Retirement Savings and Deferred Compensation Plans |
401(k) Retirement Savings Plan | |
JFSCI, on our behalf, maintains a 401(k) Retirement Savings Plan that includes a profit sharing component covering all eligible employees. The plan includes employer participation in accordance with provisions of Section 401(k) of the Internal Revenue Code. The plan allows participants to make pre-tax contributions. On a discretionary basis, we may match employee contributions up to a percentage of the employee’s salary as determined by the Company. The profit sharing portion of the plan is discretionary and non-contributory, allowing us to make additional contributions based on a percentage of the employee’s salary as determined by the Company. All amounts contributed to the plan are deposited into a trust fund administered by independent trustees. For the years ended December 31, 2014, 2013 and 2012, matching 401(k) contributions were $0.9 million, $0.5 million and $0.5 million, respectively, which represented 50 cents on each dollar, up to the first 6% of the employee’s base salary, subject to a cap, for a maximum of 3%, less forfeitures. For the year ended December 31, 2014 and 2013, profit sharing contributions were $1.1 million and $0.9 million, respectively, which represented 3% of the employee’s base salary, subject to a cap. For the year ended December 31, 2012, there were no profit sharing contributions. | |
Deferred Compensation Plan | |
JFSCI, on our behalf, maintains a non-qualified Deferred Compensation Plan. The plan allows participants to defer up to 80% of base salary, 80% of commissions and 100% of bonus in a deferred account. Deferred amounts may be invested in a variety of investment funds. On behalf of each participant, on a discretionary basis, we may contribute to a separate account comprised of investment funds that correspond to such participant’s deferred account. The plan is designed to comply with Section 409A of the Internal Revenue Code. Deferred amounts may be distributed to each participant upon a separation from service, death, disability, on a scheduled withdrawal date, or with committee approval in the event of unforeseen circumstances. For the years ended December 31, 2014, 2013 and 2012, we made no contributions under the plan. | |
Shea Homes Appreciation Rights Plan | |
On August 8, 2012, the Company adopted, effective January 1, 2012, the Shea Homes Appreciation Rights Plan (the “SHAR Plan”), an equity appreciation plan designed to provide employees and non-employee service providers a financial incentive to contribute to the Company’s long-term success. The SHAR Plan provides for the issuance of units representing the right to receive payment, generally at the time such units vest, based on the increase in book value, as defined, of SHLP’s equity between the time of the units Effective Date and when the units vest. The board of directors of J.F. Shea Construction Management, Inc., our ultimate general partner, administers the SHAR Plan and has the authority to make all determinations thereunder including participants, valuations, amount and timing of grants, vesting criteria, amount and timing of payments (including interim payments), modifications and termination. | |
On August 8, 2012, the directors approved the SHAR Plan 2012 Grant (the “2012 Grant”), effective January 1, 2012 (the “2012 Effective Date”). Pursuant to the 2012 Grant, 1,021,947 units were issued at a stipulated base value of $10.00 per unit. The units issued pursuant to the 2012 Grant vest four years after the 2012 Effective Date. Subject to participant service eligibility requirements, appreciation in the value of the units during this period is payable to participants when such units vest. However, as a further incentive to participants, the directors concurrently approved annual interim payments of the 2012 Grant only, payable to participants in March 2013, 2014 and 2015. Upon vesting, for each eligible participant, interim payments will be offset against the full appreciation of these units and the resultant net amount payable to participant, if any, will be paid upon vesting, which occurs in March 2016. | |
On August 6, 2013, the directors approved the SHAR Plan 2013 Grant (the “2013 Grant”), effective January 1, 2013 (the “2013 Effective Date”). Pursuant to the 2013 Grant, 463,388 units were issued at a stipulated base value of $10.60 per unit. The units issued pursuant to the 2013 Grant vest four years after the 2013 Effective Date. Subject to participant service eligibility requirements, appreciation in the value of the units during this period is payable to participants when such units vest, which occurs in March 2017. | |
On June 3, 2014, the directors approved the SHAR Plan 2014 Grant (the “2014 Grant”), effective January 1, 2014 (the “2014 Effective Date”). Pursuant to the 2014 Grant, 381,909 units were issued at a stipulated base value of $14.79 per unit. The units issued pursuant to the 2014 Grant vest four years after the 2014 Effective Date. Subject to participant service eligibility requirements, appreciation in the value of the units during this period is payable to participants when such units vest, which occurs in March 2018. | |
At December 31, 2014 and 2013, the Company accrued $6.5 million and $4.2 million, respectively, for this plan, which is included in other liabilities. |
Contingencies_and_Commitments
Contingencies and Commitments | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Contingencies and Commitments | 16. Contingencies and Commitments | ||||||||
At December 31, 2014 and 2013, certain unrecorded contingent liabilities and commitments were as follows: | |||||||||
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 venture loans (see Note 7) | 34,199 | 28,684 | |||||||
Costs to complete on surety bonds for Company projects | 66,836 | 77,276 | |||||||
Costs to complete on surety bonds for joint venture projects | 22,694 | 22,845 | |||||||
Costs to complete on surety bonds for affiliate projects | 2,152 | 1,614 | |||||||
Water system connection rights purchase obligation | 27,352 | 30,506 | |||||||
Lease payment obligations to third parties | 4,612 | 4,539 | |||||||
Lease payment obligations to affiliates | 5,059 | 6,487 | |||||||
Total unrecorded contingent liabilities and commitments | $ | 232,904 | $ | 241,951 | |||||
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 they are probable of occurring and a potential loss is reasonably estimable. We revise these estimates when necessary. At December 31, 2014 and 2013, we had reserves of $15.7 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 and the matter discussed in the following paragraph, at December 31, 2014, the range of reasonably possible losses in excess of amounts accrued was not material. | |||||||||
As previously disclosed, SHI was named as a defendant in an action entitled Aamodt v. Shea Homes, Inc., Case No. 14-cv-01566, filed in the U.S. District Court for the Western District of Washington. The case was filed on or around October 10, 2014. The plaintiffs in the matter purported to bring a claim seeking an undisclosed monetary recovery for alleged construction defects under Washington’s Consumer Protection Act originally involving approximately 589 homes, but subsequently amended their complaint to include approximately 964 homes and we have reached a tentative settlement of the case. While most of the settlement amount should be covered by insurance, one of our insurance carriers has denied coverage for the settlement and related matters. We are disputing this insurance carrier’s position. | |||||||||
At December 31, 2014, we accrued $13.3 million in connection with the settlement and related matters. Because of the uncertainty caused by the dispute with the insurance carrier described above, there can be no assurance the ultimate outcome will not be significantly different than the recorded reserve. If, for example, the insurance carrier prevails, SHI could be obligated up to an additional $9.7 million for the settlement and related matters. | |||||||||
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 under this facility. In February 2014, this facility was replaced with the Revolver, which includes a $62.5 million sublimit for letters of credit. At December 31, 2014, there were no outstanding letters of credit under the Revolver. | |||||||||
We provide surety bonds that guarantee completion of certain infrastructure serving our homebuilding projects. At December 31, 2014, there were $66.8 million of costs to complete in connection with $146.5 million of surety bonds issued. At December 31, 2013, there were $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 affiliate projects in which we have no ownership interest. At December 31, 2014, there were $22.7 million of costs to complete in connection with $63.2 million of surety bonds issued for unconsolidated joint venture projects, and $2.2 million of costs to complete in connection with $3.5 million of surety bonds issued for affiliate projects in which we have no ownership interest. At December 31, 2013, there were $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 affiliate projects in which we have no ownership interest. | |||||||||
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, including land we own, and/or homeowners following the delivery of new homes in the community. Occasionally, we also enter into credit support arrangements requiring us to pay interest and principal on these bonds if taxes and assessments levied on landowners and/or 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 December 31, 2014 and 2013, in connection with credit support arrangements, there was $10.9 million and $8.6 million, respectively, reimbursable to us from certain agencies in Colorado and, accordingly, 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 landowners and/or homeowners. At December 31, 2014 and 2013, in connection with certain funding arrangements, there was $14.0 million and $13.1 million, respectively, reimbursable to us from certain agencies, including $12.8 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, we remain a 10% guarantor on certain community facility district bond obligations, which require us to meet a minimum calculated tangible net worth; otherwise, we are required to fund collateral to the bond issuer. At December 31, 2014 and 2013, we exceeded the minimum tangible net worth requirement. | |||||||||
At a consolidated homebuilding project in Colorado, we have a contractual obligation to purchase and receive water system connection rights which, at December 31, 2014 and 2013, was $27.4 million and $30.5 million, respectively, which is less than their estimated market value. These water system connection rights are held, then transferred to homebuyers upon delivery of their home, transferred upon sale of land to the respective buyer, sold or leased, but generally only within the local jurisdiction. | |||||||||
Lease Payment Obligations | |||||||||
We lease certain property and equipment under non-cancelable operating leases. Office leases are for terms of up to ten years and generally provide renewal options for terms up to an additional five years. In the normal course of business, we expect expired leases will be renewed or replaced. Equipment leases are typically for terms of three to four years. | |||||||||
At December 31, 2014, future minimum rental payments under operating leases (excluding affiliate operating leases for office space – see below) having initial or remaining non-cancelable lease terms in excess of one year were as follows: | |||||||||
Payments Due By Year | December 31, | ||||||||
(In thousands) | |||||||||
2015 | 982 | ||||||||
2016 | 931 | ||||||||
2017 | 802 | ||||||||
2018 | 743 | ||||||||
2019 and thereafter | 1,154 | ||||||||
Total | $ | 4,612 | |||||||
For the years ended December 31, 2014, 2013 and 2012, rental expense for third party operating leases was $1.7 million, $1.7 million and $1.4 million, respectively. | |||||||||
We also lease office space from affiliates under non-cancelable operating leases. The leases are for terms of up to ten years and generally provide renewal options for terms up to an additional five years. | |||||||||
At December 31, 2014, future minimal rental payments under affiliate operating leases having initial or remaining non-cancelable lease terms in excess of one year were as follows: | |||||||||
Payments Due By Year | December 31, | ||||||||
(In thousands) | |||||||||
2015 | 1,311 | ||||||||
2016 | 619 | ||||||||
2017 | 366 | ||||||||
2018 | 383 | ||||||||
2019 and thereafter | 2,380 | ||||||||
Total | $ | 5,059 | |||||||
For the years ended December 31, 2014, 2013 and 2012, affiliate rental expense was $0.7 million, $0.4 million and $0.6 million, respectively. |
Supplemental_Disclosure_to_Con
Supplemental Disclosure to Consolidated Statements of Cash Flows | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Supplemental Disclosure to Consolidated Statements of Cash Flows | 17. Supplemental Disclosure to Consolidated Statements of Cash Flows | ||||||||||||
Supplemental disclosures to the consolidated statements of cash flows were as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Supplemental disclosure of cash flow information | |||||||||||||
Income taxes paid (refunded) | $ | 20,300 | $ | 1,181 | $ | (3,891 | ) | ||||||
Interest paid, net of amounts capitalized | $ | 584 | $ | 4,946 | $ | 19,225 | |||||||
Supplemental disclosure of noncash activities | |||||||||||||
Unrealized gain (loss) on available-for-sale investments, net | $ | 318 | $ | 271 | $ | (1,875 | ) | ||||||
Reclassification of Deficit Distributions to (from) unconsolidated joint ventures from (to) other liabilities | $ | 45 | $ | (365 | ) | $ | 212 | ||||||
Purchase of land in exchange for note payable | $ | 13,004 | $ | 4,379 | $ | 8,982 | |||||||
Contribution of inventory to unconsolidated joint venture | $ | 9,468 | $ | 4,082 | $ | 0 | |||||||
Deferred gain on inventory purchased from unconsolidated joint venture | $ | 901 | $ | 0 | $ | 0 | |||||||
Distribution to Owners for assumption of liability and revenue participation payments for land purchased from an affiliate under common control | $ | (20,891 | ) | $ | 0 | $ | 0 | ||||||
Elimination of consolidated joint venture inventory, receivables from affiliates and other assets | $ | 0 | $ | 0 | $ | (41,600 | ) | ||||||
Elimination of consolidated joint venture note payable and other liabilities | $ | 0 | $ | 0 | $ | (1,949 | ) | ||||||
Redemption of Company’s interest in consolidated joint venture and elimination of non-controlling interest, less cash retained by non-controlling interest | $ | 0 | $ | 0 | $ | (39,651 | ) |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Information | 18. Segment Information | ||||||||||||
Our homebuilding business, which is responsible for substantially all of our operating results, constructs and sells single-family attached and detached homes designed to appeal to first-time, move-up, luxury 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, North Carolina 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: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Total assets: | |||||||||||||
Southern California | $ | 370,522 | $ | 316,339 | |||||||||
San Diego | 149,748 | 160,593 | |||||||||||
Northern California | 295,247 | 286,513 | |||||||||||
Mountain West | 355,936 | 316,459 | |||||||||||
South West | 192,359 | 155,416 | |||||||||||
East | 24,791 | 5,096 | |||||||||||
Total homebuilding assets | 1,388,603 | 1,240,416 | |||||||||||
Corporate | 278,107 | 264,917 | |||||||||||
Total assets | $ | 1,666,710 | $ | 1,505,333 | |||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Inventory: | |||||||||||||
Southern California | $ | 305,770 | $ | 239,986 | |||||||||
San Diego | 128,241 | 142,395 | |||||||||||
Northern California | 259,997 | 249,111 | |||||||||||
Mountain West | 301,364 | 247,294 | |||||||||||
South West | 156,716 | 132,484 | |||||||||||
East | 21,497 | 2,002 | |||||||||||
Total inventory | $ | 1,173,585 | $ | 1,013,272 | |||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Revenues: | |||||||||||||
Southern California | $ | 393,480 | $ | 207,650 | $ | 133,990 | |||||||
San Diego | 143,234 | 125,494 | 85,971 | ||||||||||
Northern California | 259,364 | 242,356 | 166,106 | ||||||||||
Mountain West | 175,665 | 186,899 | 147,784 | ||||||||||
South West | 168,282 | 160,744 | 138,161 | ||||||||||
East | 0 | 6,554 | 7,150 | ||||||||||
Total homebuilding revenues | 1,140,025 | 929,697 | 679,162 | ||||||||||
Corporate | 581 | 913 | 985 | ||||||||||
Total revenues | $ | 1,140,606 | $ | 930,610 | $ | 680,147 | |||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Income (loss) before income taxes: | |||||||||||||
Southern California | $ | 82,029 | $ | 44,236 | $ | 12,843 | |||||||
San Diego | 22,288 | 7,717 | 2,493 | ||||||||||
Northern California | 51,219 | 40,648 | 19,292 | ||||||||||
Mountain West | (4,982 | ) | 9,463 | 156 | |||||||||
South West | (1,498 | ) | 8,356 | (2,173 | ) | ||||||||
East | (3,032 | ) | (349 | ) | (202 | ) | |||||||
Total homebuilding income before income taxes | 146,024 | 110,071 | 32,409 | ||||||||||
Corporate | 5,588 | 1,767 | (2,609 | ) | |||||||||
Total income before income taxes | $ | 151,612 | $ | 111,838 | $ | 29,800 | |||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Impairments: | |||||||||||||
Southern California | $ | 284 | $ | 0 | $ | 0 | |||||||
San Diego | 0 | 0 | 0 | ||||||||||
Northern California | 0 | 0 | 0 | ||||||||||
Mountain West | 0 | 0 | 0 | ||||||||||
South West | 8,751 | 0 | 0 | ||||||||||
East | 0 | 0 | 0 | ||||||||||
Total impairments | $ | 9,035 | $ | 0 | $ | 0 | |||||||
Results_of_Quarterly_Operation
Results of Quarterly Operations | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Results of Quarterly Operations | 19. Results of Quarterly Operations (Unaudited) | ||||||||||||||||||||
First | Second | Third | Fourth | Total | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
2014:00:00 | |||||||||||||||||||||
Revenues | $ | 180,115 | $ | 256,083 | $ | 284,489 | $ | 419,919 | $ | 1,140,606 | |||||||||||
Gross margin | $ | 44,857 | $ | 60,273 | $ | 67,894 | $ | 82,564 | $ | 255,588 | |||||||||||
Net income | $ | 11,295 | $ | 28,703 | $ | 33,731 | $ | 59,670 | $ | 133,399 | |||||||||||
Net income attributable to SHLP | $ | 11,298 | $ | 28,707 | $ | 33,749 | $ | 59,682 | $ | 133,436 | |||||||||||
2013:00:00 | |||||||||||||||||||||
Revenues | $ | 134,960 | $ | 217,310 | $ | 238,309 | $ | 340,031 | $ | 930,610 | |||||||||||
Gross margin | $ | 31,536 | $ | 48,426 | $ | 55,848 | $ | 85,388 | $ | 221,198 | |||||||||||
Net income | $ | 6,837 | $ | 19,532 | $ | 25,826 | $ | 73,744 | $ | 125,939 | |||||||||||
Net income attributable to SHLP | $ | 6,838 | $ | 19,534 | $ | 25,824 | $ | 73,751 | $ | 125,947 |
Supplemental_Guarantor_Informa
Supplemental Guarantor Information | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Supplemental Guarantor Information | 20. 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, 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-X under the Securities Act for the guarantor subsidiaries and non-guarantor subsidiaries. | |||||||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
SHLP | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Corp (a) | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 135,804 | $ | 93,386 | $ | 7,712 | $ | 0 | $ | 236,902 | |||||||||||
Restricted cash | 259 | 113 | 54 | 0 | 426 | ||||||||||||||||
Accounts and other receivables, net | 120,135 | 27,193 | 16,616 | (16,436 | ) | 147,508 | |||||||||||||||
Receivables from affiliates, net | 6,369 | 14 | 20 | 0 | 6,403 | ||||||||||||||||
Inventory | 993,507 | 178,859 | 4,353 | (3,134 | ) | 1,173,585 | |||||||||||||||
Investments in and advances to unconsolidated joint ventures | 25,343 | 1,619 | 15,802 | 0 | 42,764 | ||||||||||||||||
Investments in subsidiaries | 786,462 | 81,447 | 86,721 | (954,630 | ) | 0 | |||||||||||||||
Other assets, net | 22,298 | 36,690 | 134 | 0 | 59,122 | ||||||||||||||||
Intercompany | 0 | 572,036 | 0 | (572,036 | ) | 0 | |||||||||||||||
Total assets | $ | 2,090,177 | $ | 991,357 | $ | 131,412 | $ | (1,546,236 | ) | $ | 1,666,710 | ||||||||||
Liabilities and equity | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||
Notes payable | $ | 761,404 | $ | 0 | $ | 0 | $ | 0 | $ | 761,404 | |||||||||||
Payables to affiliates | 20 | 0 | 3 | 4,774 | 4,797 | ||||||||||||||||
Accounts payable | 51,663 | 15,344 | 314 | 0 | 67,321 | ||||||||||||||||
Other liabilities | 176,160 | 77,701 | 40,904 | (16,435 | ) | 278,330 | |||||||||||||||
Intercompany | 546,451 | 0 | 33,494 | (579,945 | ) | 0 | |||||||||||||||
Total liabilities | 1,535,698 | 93,045 | 74,715 | (591,606 | ) | 1,111,852 | |||||||||||||||
Equity: | |||||||||||||||||||||
SHLP equity: | |||||||||||||||||||||
Owners’ equity | 549,373 | 893,206 | 56,318 | (949,524 | ) | 549,373 | |||||||||||||||
Accumulated other comprehensive income | 5,106 | 5,106 | 0 | (5,106 | ) | 5,106 | |||||||||||||||
Total SHLP equity | 554,479 | 898,312 | 56,318 | (954,630 | ) | 554,479 | |||||||||||||||
Non-controlling interests | 0 | 0 | 379 | 0 | 379 | ||||||||||||||||
Total equity | 554,479 | 898,312 | 56,697 | (954,630 | ) | 554,858 | |||||||||||||||
Total liabilities and equity | $ | 2,090,177 | $ | 991,357 | $ | 131,412 | $ | (1,546,236 | ) | $ | 1,666,710 | ||||||||||
(a) | Includes Shea Homes Funding Corp., whose financial position at December 31, 2014 was not material. | ||||||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
SHLP | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Corp (a) | 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 affiliates, net | 9,251 | 21,761 | 25 | 276 | 31,313 | ||||||||||||||||
Inventory | 749,832 | 263,213 | 3,361 | (3,134 | ) | 1,013,272 | |||||||||||||||
Investments in and advances to unconsolidated joint ventures | 22,068 | 1,357 | 25,360 | 0 | 48,785 | ||||||||||||||||
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 affiliates | 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 | ||||||||||
(a) | Includes Shea Homes Funding Corp., whose financial position at December 31, 2013 was not material. | ||||||||||||||||||||
Condensed Consolidating Statement of Operations and Comprehensive Income | |||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
SHLP | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Corp (a) | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Revenues | $ | 680,109 | $ | 444,229 | $ | 16,268 | $ | 0 | $ | 1,140,606 | |||||||||||
Cost of sales | (545,442 | ) | (338,185 | ) | (1,391 | ) | 0 | (885,018 | ) | ||||||||||||
Gross margin | 134,667 | 106,044 | 14,877 | 0 | 255,588 | ||||||||||||||||
Selling expenses | (38,268 | ) | (17,899 | ) | (7,262 | ) | 0 | (63,429 | ) | ||||||||||||
General and administrative expenses | (37,444 | ) | (14,979 | ) | (2,498 | ) | 0 | (54,921 | ) | ||||||||||||
Equity in income (loss) from unconsolidated joint ventures | (4,000 | ) | 119 | 13,023 | 0 | 9,142 | |||||||||||||||
Equity in income from subsidiaries | 85,794 | 8,148 | 1,748 | (95,690 | ) | 0 | |||||||||||||||
Gain on reinsurance | 0 | 0 | 7,177 | 0 | 7,177 | ||||||||||||||||
Interest expense | (595 | ) | 0 | 0 | 0 | (595 | ) | ||||||||||||||
Other income (expense), net | (6,709 | ) | 5,502 | (143 | ) | 0 | (1,350 | ) | |||||||||||||
Income before income taxes | 133,445 | 86,935 | 26,922 | (95,690 | ) | 151,612 | |||||||||||||||
Income tax expense | (9 | ) | (18,183 | ) | (21 | ) | 0 | (18,213 | ) | ||||||||||||
Net income | 133,436 | 68,752 | 26,901 | (95,690 | ) | 133,399 | |||||||||||||||
Less: Net loss attributable to non-controlling interests | 0 | 0 | 37 | 0 | 37 | ||||||||||||||||
Net income attributable to SHLP | $ | 133,436 | $ | 68,752 | $ | 26,938 | $ | (95,690 | ) | $ | 133,436 | ||||||||||
Comprehensive income | $ | 133,754 | $ | 69,070 | $ | 26,901 | $ | (96,008 | ) | $ | 133,717 | ||||||||||
(a) | Includes Shea Homes Funding Corp., whose results of operations for the year ended December 31, 2014 was not material. | ||||||||||||||||||||
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) | |||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
SHLP | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Corp (a) | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Revenues | $ | 505,510 | $ | 404,393 | $ | 20,707 | $ | 0 | $ | 930,610 | |||||||||||
Cost of sales | (406,563 | ) | (302,081 | ) | (1,502 | ) | 734 | (709,412 | ) | ||||||||||||
Gross margin | 98,947 | 102,312 | 19,205 | 734 | 221,198 | ||||||||||||||||
Selling expenses | (28,925 | ) | (18,847 | ) | (6,566 | ) | 0 | (54,338 | ) | ||||||||||||
General and administrative expenses | (34,936 | ) | (12,294 | ) | (2,850 | ) | 0 | (50,080 | ) | ||||||||||||
Equity in income (loss) from unconsolidated joint ventures | (2,020 | ) | (65 | ) | 981 | 0 | (1,104 | ) | |||||||||||||
Equity in income (loss) from subsidiaries | 100,821 | (1,443 | ) | (3,342 | ) | (96,036 | ) | 0 | |||||||||||||
Gain on reinsurance | 0 | 0 | 2,011 | 0 | 2,011 | ||||||||||||||||
Interest expense | (3,658 | ) | (1,413 | ) | 0 | 0 | (5,071 | ) | |||||||||||||
Other income (expense), net | (4,280 | ) | 3,428 | 808 | (734 | ) | (778 | ) | |||||||||||||
Income before income taxes | 125,949 | 71,678 | 10,247 | (96,036 | ) | 111,838 | |||||||||||||||
Income tax benefit (expense) | (2 | ) | 14,112 | (9 | ) | 0 | 14,101 | ||||||||||||||
Net income | 125,947 | 85,790 | 10,238 | (96,036 | ) | 125,939 | |||||||||||||||
Less: Net loss attributable to non-controlling interests | 0 | 0 | 8 | 0 | 8 | ||||||||||||||||
Net income attributable to SHLP | $ | 125,947 | $ | 85,790 | $ | 10,246 | $ | (96,036 | ) | $ | 125,947 | ||||||||||
Comprehensive income | $ | 126,218 | $ | 86,061 | $ | 10,238 | $ | (96,307 | ) | $ | 126,210 | ||||||||||
(a) | Includes Shea Homes Funding Corp., whose results of operations for the year ended December 31, 2013 was not material. | ||||||||||||||||||||
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) | |||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
SHLP | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Corp (a) | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Revenues | $ | 470,756 | $ | 200,329 | $ | 9,062 | $ | 0 | $ | 680,147 | |||||||||||
Cost of sales | (372,576 | ) | (164,992 | ) | (1,343 | ) | 477 | (538,434 | ) | ||||||||||||
Gross margin | 98,180 | 35,337 | 7,719 | 477 | 141,713 | ||||||||||||||||
Selling expenses | (26,836 | ) | (13,531 | ) | (5,421 | ) | 0 | (45,788 | ) | ||||||||||||
General and administrative expenses | (30,560 | ) | (10,500 | ) | (2,687 | ) | 0 | (43,747 | ) | ||||||||||||
Equity in income (loss) from unconsolidated joint ventures | (338 | ) | (43 | ) | 759 | 0 | 378 | ||||||||||||||
Equity in income (loss) from subsidiaries | 11,334 | (20,211 | ) | (4,556 | ) | 13,433 | 0 | ||||||||||||||
Loss on reinsurance | 0 | 0 | (12,013 | ) | 0 | (12,013 | ) | ||||||||||||||
Interest expense | (17,326 | ) | (2,532 | ) | (4 | ) | 0 | (19,862 | ) | ||||||||||||
Other income (expense), net | (5,411 | ) | 12,905 | 2,102 | (477 | ) | 9,119 | ||||||||||||||
Income (loss) before income taxes | 29,043 | 1,425 | (14,101 | ) | 13,433 | 29,800 | |||||||||||||||
Income tax expense | (5 | ) | (601 | ) | (10 | ) | 0 | (616 | ) | ||||||||||||
Net income (loss) | 29,038 | 824 | (14,111 | ) | 13,433 | 29,184 | |||||||||||||||
Less: Net income attributable to non-controlling interests | 0 | 0 | (146 | ) | 0 | (146 | ) | ||||||||||||||
Net income (loss) attributable to SHLP | $ | 29,038 | $ | 824 | $ | (14,257 | ) | $ | 13,433 | $ | 29,038 | ||||||||||
Comprehensive income (loss) | $ | 27,163 | $ | (1,051 | ) | $ | (14,111 | ) | $ | 15,308 | $ | 27,309 | |||||||||
(b) | Includes Shea Homes Funding Corp., whose results of operations for the year ended December 31, 2012 was not material. | ||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
SHLP | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Corp (a) | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Operating activities | |||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (159,184 | ) | $ | 146,682 | $ | 9,905 | $ | 5,051 | $ | 2,454 | ||||||||||
Investing activities | |||||||||||||||||||||
Collections on promissory notes from affiliates | 3,595 | 21,588 | 0 | 0 | 25,183 | ||||||||||||||||
Investments in and advances to unconsolidated joint ventures | (5,863 | ) | (299 | ) | (22,996 | ) | 0 | (29,158 | ) | ||||||||||||
Distributions from unconsolidated joint ventures | 121 | 125 | 38,521 | 0 | 38,767 | ||||||||||||||||
Proceeds from sale of marketable securities | 0 | 184 | 0 | 0 | 184 | ||||||||||||||||
Net cash provided by (used in) investing activities | (2,147 | ) | 21,598 | 15,525 | 0 | 34,976 | |||||||||||||||
Financing activities | |||||||||||||||||||||
Principal payments to financial institutions and others | (3,308 | ) | 0 | 0 | 0 | (3,308 | ) | ||||||||||||||
Distributions to owners | (4,385 | ) | 0 | 0 | 0 | (4,385 | ) | ||||||||||||||
Intercompany | 150,089 | (118,697 | ) | (26,341 | ) | (5,051 | ) | 0 | |||||||||||||
Other financing activities | 945 | 0 | 15 | 0 | 960 | ||||||||||||||||
Net cash provided by (used in) financing activities | 143,341 | (118,697 | ) | (26,326 | ) | (5,051 | ) | (6,733 | ) | ||||||||||||
Net increase (decrease) in cash and cash equivalents | (17,990 | ) | 49,583 | (896 | ) | 0 | 30,697 | ||||||||||||||
Cash and cash equivalents at beginning of year | 153,794 | 43,803 | 8,608 | 0 | 206,205 | ||||||||||||||||
Cash and cash equivalents at end of year | $ | 135,804 | $ | 93,386 | $ | 7,712 | $ | 0 | $ | 236,902 | |||||||||||
(a) | Includes Shea Homes Funding Corp., whose cash flows for the year ended December 31, 2014 were not material. | ||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
SHLP | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Corp (a) | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Operating activities | |||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (135,869 | ) | $ | 74,342 | $ | 10,901 | $ | 2,759 | $ | (47,867 | ) | |||||||||
Investing activities | |||||||||||||||||||||
Proceeds from sale of available-for-sale investments | 0 | 3,165 | 0 | 0 | 3,165 | ||||||||||||||||
Investments in and advances to unconsolidated joint ventures | (9,713 | ) | (275 | ) | (16,157 | ) | 0 | (26,145 | ) | ||||||||||||
Distributions from unconsolidated joint ventures | 0 | 0 | 4,072 | 0 | 4,072 | ||||||||||||||||
Collections on promissory notes from affiliates | 1,192 | 2,912 | 0 | 0 | 4,104 | ||||||||||||||||
Net cash provided by (used in) investing activities | (8,521 | ) | 5,802 | (12,085 | ) | 0 | (14,804 | ) | |||||||||||||
Financing activities | |||||||||||||||||||||
Principal payments to financial institutions and others | (10,880 | ) | 0 | 0 | 0 | (10,880 | ) | ||||||||||||||
Intercompany | 92,150 | (85,236 | ) | (4,155 | ) | (2,759 | ) | 0 | |||||||||||||
Net cash provided by (used in) financing activities | 81,270 | (85,236 | ) | (4,155 | ) | (2,759 | ) | (10,880 | ) | ||||||||||||
Net decrease in cash and cash equivalents | (63,120 | ) | (5,092 | ) | (5,339 | ) | 0 | (73,551 | ) | ||||||||||||
Cash and cash equivalents at beginning of year | 216,914 | 48,895 | 13,947 | 0 | 279,756 | ||||||||||||||||
Cash and cash equivalents at end of year | $ | 153,794 | $ | 43,803 | $ | 8,608 | $ | 0 | $ | 206,205 | |||||||||||
(a) | Includes Shea Homes Funding Corp., whose cash flows for the year ended December 31, 2013 were not material. | ||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
SHLP | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Corp (a) | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Operating activities | |||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 33,520 | $ | (64,012 | ) | $ | 25,506 | $ | (1,669 | ) | $ | (6,655 | ) | ||||||||
Investing activities | |||||||||||||||||||||
Proceeds from sale of available-for-sale investments | 0 | 26,547 | 0 | 0 | 26,547 | ||||||||||||||||
Collections (advances) on promissory notes from affiliates | 1,142 | 882 | (143 | ) | 0 | 1,881 | |||||||||||||||
Investments in and advances to unconsolidated joint ventures | (10,898 | ) | (229 | ) | (840 | ) | 0 | (11,967 | ) | ||||||||||||
Distributions from unconsolidated joint ventures | 0 | 427 | 0 | 0 | 427 | ||||||||||||||||
Net cash provided by (used in) investing activities | (9,756 | ) | 27,627 | (983 | ) | 0 | 16,888 | ||||||||||||||
Financing activities | |||||||||||||||||||||
Principal payments to financial institutions and others | (2,230 | ) | 0 | (199 | ) | 0 | (2,429 | ) | |||||||||||||
Intercompany | 35,517 | (10,820 | ) | (26,366 | ) | 1,669 | 0 | ||||||||||||||
Other financing activities | 2,352 | 0 | 1,234 | 0 | 3,586 | ||||||||||||||||
Net cash provided by (used in) financing activities | 35,639 | (10,820 | ) | (25,331 | ) | 1,669 | 1,157 | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | 59,403 | (47,205 | ) | (808 | ) | 0 | 11,390 | ||||||||||||||
Cash and cash equivalents at beginning of year | 157,511 | 96,100 | 14,755 | 0 | 268,366 | ||||||||||||||||
Cash and cash equivalents at end of year | $ | 216,914 | $ | 48,895 | $ | 13,947 | $ | 0 | $ | 279,756 | |||||||||||
(a) | Includes Shea Homes Funding Corp., whose cash flows for the year ended December 31, 2012 were not material. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Basis of Presentation | Basis of Presentation |
The accompanying consolidated financial statements include 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. | |
Unless the context otherwise requires, the terms “we”, “us”, “our” and “the Company” refer to SHLP, its subsidiaries and its consolidated joint ventures. | |
Use of Estimates | Use of Estimates |
Preparation of the consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect 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. | |
Reclassifications | Reclassifications |
Certain reclassifications were made in the 2013 consolidated financial statements to conform to classifications in 2014. At December 31, 2013, in the consolidated balance sheet, advances to unconsolidated joint ventures of $1.0 million were reclassified from receivables from affiliates to investments in and advances to unconsolidated joint ventures. In addition, for the year ended December 31, 2013 and 2012, in the consolidated statements of cash flows, advances of $0.8 million were reclassified from promissory notes from affiliates to investments in and advances to unconsolidated joint ventures, and collections of $0.1 million were reclassified from promissory notes from affiliates to distributions of capital from unconsolidated joint ventures, respectively. | |
Cash and Cash Equivalents | Cash and Cash Equivalents |
All highly liquid investments (original maturities of 90 days or less) are considered to be cash equivalents. | |
Concentration of Credit Risk | Concentration of Credit Risk |
Financial instruments representing concentrations of credit risk are primarily cash, cash equivalents, investments and insurance receivables. | |
Cash in banks exceeded the federally insured limits; cash equivalents comprised primarily of money market securities and securities backed by the U.S. government; and insurance receivables were with highly rated insurers and/or collateralized. We have incurred no losses on deposits of cash and cash equivalents and believe our depository institutions are financially sound and present minimal credit risk. | |
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 delivered 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 be delivered in each community. Changes to estimated total development costs subsequent to initial home deliveries 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 (other than land held for sale) is determined to be unrecoverable, in which case inventory is adjusted to fair value. For land held for sale, inventory is stated at the lower of cost 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 exceeds 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 expected prices and incentives offered by us or other builders, 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 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. | |
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. We generally use discount rates ranging from 10% to 25%, subject to perceived risks associated with the community’s cash flow streams relative to its inventory. | |
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 fit and finish warranty period. Specific length, terms and conditions of completed operations claims vary depending on the market where homes deliver and can range up to ten years from the delivery 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-based 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, 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 ten 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 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, changes based on updated relevant information could result in actual costs differing significantly from estimates. | |
In accordance with our completed operations insurance policies, completed operations claims costs are recoverable from our subcontractors or insurance carriers. For policy years from August 1, 2001 through the present, completed operations claims are insured or reinsured by 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 deliver. Housing and other real estate sales deliver when all conditions of escrow are met, including delivery of the home or other real estate asset to the customer, 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 delivers. | |
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 if it is more likely than not some or all of the deferred tax assets 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. Assessment of a valuation allowance includes giving appropriate consideration to all positive and negative evidence related to realization of the deferred tax asset. This assessment considers, among other things, the nature, frequency and severity of current and cumulative losses in recent years, forecasts of future profitability, 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 on how uncertain tax positions should be accounted for and disclosed in the consolidated financial statements. The guidance requires 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 no uncertain tax positions exist that do not meet the more-likely-than-not criteria (see Note 13). | |
Advertising Costs | Advertising Costs |
We expense advertising costs as incurred. For the years ended December 31, 2014, 2013 and 2012, we incurred and expensed advertising costs of $12.1 million, $7.4 million and $6.6 million, respectively. | |
New Accounting Pronouncements | New Accounting Pronouncements |
In April 2014, the FASB issued Accounting Standard Update (“ASU”) 2014-08, Presentation of Financial Statements and Property, Plant, and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”), which is intended to change the criteria for reporting discontinued operations and enhance disclosures. Under this new guidance, only disposals representing a strategic shift in operations having a major effect on the entity’s operations and financial results should be presented as discontinued operations. If the disposal does qualify as a discontinued operation, the entity will be required to provide expanded disclosures, as well as disclosure of the pretax income attributable to the disposal of a significant part of an entity that does not qualify as a discontinued operation. ASU 2014-08 will be effective beginning January 1, 2015 and subsequent interim periods. The adoption of ASU 2014-08 is not expected to have a material effect on our consolidated financial statements. | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which provides a single comprehensive model in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASU No. 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update creates a five-step model requiring entities to exercise judgment when considering the terms of the contract(s) including (i) identifying the contract(s) with the customer, (ii) identifying the separate performance obligations in the contract, (iii) determining the transaction price, (iv) allocating the transaction price to the separate performance obligations, and (v) recognizing revenue when each performance obligation is satisfied. ASU 2014-09 will be effective beginning January 1, 2017 and subsequent interim periods. We have the option to apply the provisions of ASU 2014-09 either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of applying this ASU recognized at the date of initial application. Early adoption is not permitted. We are evaluating the impact the adoption of ASU 2014-09 will have on our consolidated financial statements. | |
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern, (“ASU 2014-15”). ASU 2014-15 requires us to perform interim and annual assessments on whether there are conditions or events that raise substantial doubt about our ability to continue as a going concern within one year of the date the financial statements are issued and to provide related disclosures, if required. ASU 2014-15 will be effective beginning January 1, 2016 and subsequent interim periods. The adoption of ASU 2014-15 is not expected to have a material effect on our consolidated financial statements. |
Fair_Value_Disclosures_Tables
Fair Value Disclosures (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Net Book Value and Estimated Fair Value of Notes Payable | At December 31, 2014 and 2013, as required by ASC 825, net book value and estimated fair value of notes payable were as follows: | ||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
Net Book | Estimated | Net Book | Estimated | ||||||||||||||
Value | Fair Value | Value | Fair Value | ||||||||||||||
(In thousands) | |||||||||||||||||
$750,000 8.625% senior secured notes due May 2019 | $ | 750,000 | $ | 787,500 | $ | 750,000 | $ | 830,625 | |||||||||
Secured promissory notes | $ | 11,404 | $ | 11,404 | $ | 1,708 | $ | 1,708 |
Accounts_and_Other_Receivables1
Accounts and Other Receivables, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounts and Other Receivables | At December 31, 2014 and 2013, accounts and other receivables, net were as follows: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Insurance receivables | $ | 136,155 | $ | 138,610 | |||||
Escrow receivables | 3,965 | 586 | |||||||
Notes receivables | 4,091 | 3,155 | |||||||
Development receivables | 1,317 | 3,093 | |||||||
Other receivables | 3,941 | 4,031 | |||||||
Reserve | (1,961 | ) | (1,976 | ) | |||||
Total accounts and other receivables, net | $ | 147,508 | $ | 147,499 | |||||
Inventory_Tables
Inventory (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Summary of Inventory | At December 31, 2014 and 2013, inventory was as follows: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Model homes | $ | 86,340 | $ | 87,728 | |||||||||
Completed homes for sale | 32,350 | 20,285 | |||||||||||
Homes under construction | 310,318 | 257,662 | |||||||||||
Lots available for construction | 402,001 | 342,622 | |||||||||||
Land under development | 107,120 | 122,257 | |||||||||||
Land held for future development | 126,925 | 70,618 | |||||||||||
Land held for sale | 78,845 | 79,102 | |||||||||||
Land deposits and preacquisition costs | 29,686 | 32,998 | |||||||||||
Total inventory | $ | 1,173,585 | $ | 1,013,272 | |||||||||
Inventory Impairment | For the years ended December 31, 2014, 2013 and 2012, inventory impairment charges were as follows: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | |||||||||||||
Inventory impairment charge | $ | 9,035 | $ | 0 | $ | 0 | |||||||
Remaining carrying value of inventory impaired at end of year | $ | 14,888 | $ | 0 | $ | 0 | |||||||
Projects impaired | 3 | 0 | 0 | ||||||||||
Projects evaluated for impairment (a) | 145 | 126 | 132 | ||||||||||
(a) | Large land parcels not subdivided into communities are counted as one project. Once parcels are subdivided, the project count will increase accordingly. | ||||||||||||
Interest Incurred, Expensed and Capitalized | For the years ended December 31, 2014, 2013 and 2012, interest incurred, capitalized and expensed was as follows: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Interest incurred | $ | 68,204 | $ | 67,048 | $ | 66,857 | |||||||
Interest expensed (a) | $ | 595 | $ | 5,071 | $ | 19,862 | |||||||
Interest capitalized as a cost of inventory | $ | 64,697 | $ | 59,699 | $ | 46,146 | |||||||
Interest previously capitalized as a cost of inventory, included in cost of sales | $ | (68,780 | ) | $ | (60,448 | ) | $ | (54,733 | ) | ||||
Interest capitalized in ending inventory (b) | $ | 98,017 | $ | 102,100 | $ | 102,849 | |||||||
Interest capitalized as a cost of investments in unconsolidated joint ventures | $ | 2,912 | $ | 2,278 | $ | 849 | |||||||
Interest previously capitalized as a cost of investments in joint ventures, included in equity in income (loss) from unconsolidated joint ventures | $ | (2,444 | ) | $ | (1,189 | ) | $ | (849 | ) | ||||
Interest capitalized in ending investments in unconsolidated joint ventures | $ | 1,557 | $ | 1,089 | $ | 0 | |||||||
(a) | For the eight months ended August 31, 2013 and for the year ended December 31, 2012, assets qualifying for interest capitalization were less than debt; therefore, non-qualifying interest was expensed. For the period from September 2013 to December 2014, qualifying assets exceeded debt; therefore, no interest on the Secured Notes (see Note 10) was expensed. 2014 interest expense represents fees charged on the unused Revolver (see Note 10) that is not considered a cost of borrowing and is not capitalized. | ||||||||||||
(b) | Inventory impairment charges were recorded against total inventory of the respective community. Capitalized interest reflects the gross amount of capitalized interest as impairment charges recognized were generally not allocated to specific components of inventory. |
Investments_in_and_Advances_to1
Investments in and Advances to Unconsolidated Joint Ventures (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Investment in and Advances to Unconsolidated Joint Ventures | At December 31, 2014 and 2013, investments in and advances to unconsolidated joint ventures were as follows: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Equity investments | $ | 34,037 | $ | 47,748 | |||||||||
Loan advances | 8,727 | 1,037 | |||||||||||
Total investments in and advances to unconsolidated joint ventures | $ | 42,764 | $ | 48,785 | |||||||||
Condensed Financial Information of Investments in Unconsolidated Joint Venture | At December 31, 2014 and 2013, and for the years ended December 31, 2014, 2013 and 2012, condensed financial information for our unconsolidated joint ventures was as follows: | ||||||||||||
Condensed Balance Sheet Information | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Assets | |||||||||||||
Real estate inventory | $ | 253,422 | $ | 267,460 | |||||||||
Other assets | 83,674 | 130,840 | |||||||||||
Total assets | $ | 337,096 | $ | 398,300 | |||||||||
Liabilities and equity | |||||||||||||
Notes payable | $ | 159,042 | $ | 78,589 | |||||||||
Other liabilities | 58,376 | 99,395 | |||||||||||
Total liabilities | 217,418 | 177,984 | |||||||||||
Equity: | |||||||||||||
The Company (a) | 33,731 | 47,397 | |||||||||||
Others | 85,947 | 172,919 | |||||||||||
Total equity | 119,678 | 220,316 | |||||||||||
Total liabilities and equity | $ | 337,096 | $ | 398,300 | |||||||||
(a) | At December 31, 2014 and 2013, includes Deficit Distributions of $0.3 million and $0.4 million, respectively. | ||||||||||||
Condensed Financial Information of Investments in Unconsolidated Joint Venture | Condensed Income Statement Information | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Revenues | $ | 288,623 | $ | 90,743 | $ | 46,586 | |||||||
Expenses | (223,899 | ) | (85,594 | ) | (48,079 | ) | |||||||
Net income (loss) | 64,724 | 5,149 | (1,493 | ) | |||||||||
The Company’s share of net income (loss) | $ | 9,142 | $ | (1,104 | ) | $ | 378 | ||||||
Equity Method Investments Summarized Notes Payable Information | At December 31, 2014 and 2013, total unconsolidated joint ventures’ notes payable consisted of the following: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Bank and seller notes payable: | |||||||||||||
Guaranteed (subject to remargin obligations) | $ | 55,675 | $ | 52,515 | |||||||||
Non-Guaranteed | 34,824 | 10,073 | |||||||||||
Total bank and seller notes payable (a) | 90,499 | 62,588 | |||||||||||
Partner notes payable (b) : | |||||||||||||
Unsecured | 68,543 | 16,001 | |||||||||||
Total unconsolidated joint venture notes payable | $ | 159,042 | $ | 78,589 | |||||||||
Other unconsolidated joint venture notes payable (c) | $ | 83,847 | $ | 55,441 | |||||||||
(a) | All bank and seller notes were secured by real property. | ||||||||||||
(b) | No guarantees were provided on partner notes payables. In January 2014, a $3.2 million partner note from one joint venture was paid in full. | ||||||||||||
(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 a guaranty. |
Other_Assets_Net_Tables
Other Assets, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Assets | At December 31, 2014 and 2013, other assets were as follows: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Income tax receivable | $ | 1,384 | $ | 2,199 | |||||
Deferred tax asset (see Note 13) | 20,159 | 16,337 | |||||||
Investments | 9,815 | 9,439 | |||||||
Property and equipment, net | 4,140 | 4,103 | |||||||
Capitalized loan origination fees | 9,730 | 11,089 | |||||||
Deposits in lieu of bonds and letters of credit | 8,653 | 10,294 | |||||||
Prepaid insurance | 2,589 | 2,460 | |||||||
Other | 2,652 | 1,149 | |||||||
Total other assets, net | $ | 59,122 | $ | 57,070 | |||||
Notes_Payable_Tables
Notes Payable (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Summary of Notes Payable | At December 31, 2014 and 2013, notes payable were as follows: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
$750.0 million 8.625% senior secured notes, due May 2019 | $ | 750,000 | $ | 750,000 | |||||
$125.0 million secured revolving credit facility (the “Revolver”), interest currently at the applicable Eurocurrency rate plus 2.75%, matures March 1, 2016 | 0 | 0 | |||||||
Promissory notes, interest ranging from 1% to 4%, maturing through 2016, secured by deeds of trust on inventory | 11,404 | 1,708 | |||||||
Total notes payable | $ | 761,404 | $ | 751,708 | |||||
Other_Liabilities_Tables
Other Liabilities (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Summary of Other Liabilities | At December 31, 2014 and 2013, other liabilities were as follows: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Completed operations reserves | $ | 136,155 | $ | 138,610 | |||||||||
Warranty reserves | 22,698 | 20,648 | |||||||||||
Accrued profit and revenue participation arrangements (see Note 12) | 23,815 | 678 | |||||||||||
Deferred revenue/gain | 22,769 | 29,358 | |||||||||||
Provisions for delivered homes/communities | 9,116 | 10,591 | |||||||||||
Deposits (primarily homebuyer) | 17,869 | 14,281 | |||||||||||
Legal reserves | 15,705 | 4,576 | |||||||||||
Accrued interest | 8,127 | 8,086 | |||||||||||
Accrued compensation and benefits | 12,534 | 9,389 | |||||||||||
Distributions payable | 2,169 | 2,531 | |||||||||||
Deficit Distributions (see Note 7) | 307 | 351 | |||||||||||
Other | 7,066 | 6,702 | |||||||||||
Total other liabilities | $ | 278,330 | $ | 245,801 | |||||||||
Changes in Completed Operations Reserves | For the years ended December 31, 2014, 2013 and 2012, changes in completed operations reserves were as follows: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Insured completed operations | |||||||||||||
Balance, beginning of the year | $ | 138,610 | $ | 131,519 | $ | 109,390 | |||||||
Reserves provided | 15,133 | 19,002 | 40,087 | ||||||||||
Claims paid | (17,588 | ) | (11,911 | ) | (17,958 | ) | |||||||
Total completed operations reserves | $ | 136,155 | $ | 138,610 | $ | 131,519 | |||||||
Changes in Warranty Liabilities | For the years ended December 31, 2014, 2013 and 2012, changes in warranty liability were as follows: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Balance, beginning of the year | $ | 20,648 | $ | 17,749 | $ | 17,358 | |||||||
Provision for warranties | 14,363 | 11,188 | 8,958 | ||||||||||
Warranty costs paid | (12,313 | ) | (8,289 | ) | (8,567 | ) | |||||||
Balance, end of the year | $ | 22,698 | $ | 20,648 | $ | 17,749 | |||||||
Affiliate_Transactions_Tables
Affiliate Transactions (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Receivables from Affiliates | At December 31, 2014 and 2013, receivables from affiliates, net were as follows: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Note receivable from JFSCI | $ | 0 | $ | 21,588 | |||||
Notes receivable from affiliates | 15,303 | 18,822 | |||||||
Reserves for notes receivable from affiliates | (12,917 | ) | (12,842 | ) | |||||
Receivables from affiliates | 4,017 | 3,745 | |||||||
Total receivables from affiliates, net | $ | 6,403 | $ | 31,313 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Components of Income Tax Benefit (Expense) | For the years ended December 31, 2014, 2013 and 2012, major components of the income tax benefit (expense), primarily for SHI, were as follows: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Current: | |||||||||||||
Federal | $ | (19,361 | ) | $ | 0 | $ | 0 | ||||||
State | (3,673 | ) | (1,766 | ) | (78 | ) | |||||||
Total current | (23,034 | ) | (1,766 | ) | (78 | ) | |||||||
Deferred: | |||||||||||||
Federal | 4,577 | 13,385 | (532 | ) | |||||||||
State | 244 | 2,482 | (6 | ) | |||||||||
Total deferred | 4,821 | 15,867 | (538 | ) | |||||||||
Total income tax benefit (expense) | $ | (18,213 | ) | $ | 14,101 | $ | (616 | ) | |||||
Effective Tax Rate Differed from 35% Federal Statutory Rate | For the years ended December 31, 2014, 2013 and 2012, the effective tax rate differed from the 35% federal statutory rate due to the following: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | |||||||||||||
Income before income taxes | $ | 151,612 | $ | 111,838 | $ | 29,800 | |||||||
Income tax expense computed at statutory rate | $ | (53,064 | ) | $ | (39,143 | ) | $ | (10,430 | ) | ||||
Increase (decrease) resulting from: | |||||||||||||
Non-taxable entities income (a) | 35,893 | 25,275 | 7,134 | ||||||||||
State taxes, net of federal income tax benefit | (2,603 | ) | (1,901 | ) | (1,045 | ) | |||||||
Small insurance company election (831b) | 1,057 | 198 | (2,583 | ) | |||||||||
Section 199 deduction | 1,313 | 875 | 0 | ||||||||||
Change in valuation allowance for deferred tax assets | 247 | 32,223 | 5,461 | ||||||||||
Other, net | (1,056 | ) | (3,426 | ) | 847 | ||||||||
Total income tax benefit (expense) | $ | (18,213 | ) | $ | 14,101 | $ | (616 | ) | |||||
Effective tax rate | 12 | % | (12.6 | )% | 2.1 | % | |||||||
(a) | Non-taxable entities represent income or loss related to SHLP, non-controlling interests and consolidated limited partnerships and limited liability companies in which the taxable income or loss is reflected on the respective partners’ tax return. | ||||||||||||
Tax Effect of Temporary Differences Rise to Significant Portion of Deferred Taxes | At December 31, 2014 and 2013, the tax effects of temporary differences that give rise to significant portions of deferred taxes for SHI were as follows: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Housing and land inventory basis differences | $ | 14,214 | $ | 8,746 | |||||||||
Available loss carryforwards | 4,961 | 7,696 | |||||||||||
Impairment of inventory and investments | 482 | 782 | |||||||||||
Other | 1,399 | 1,166 | |||||||||||
Total deferred tax assets | 21,056 | 18,390 | |||||||||||
Deferred tax liabilities | |||||||||||||
Income recognition | (635 | ) | (1,544 | ) | |||||||||
Total deferred tax liabilities | (635 | ) | (1,544 | ) | |||||||||
Subtotal | 20,421 | 16,846 | |||||||||||
Valuation allowance | (262 | ) | (509 | ) | |||||||||
Net deferred tax assets | $ | 20,159 | $ | 16,337 | |||||||||
Contingencies_and_Commitments_
Contingencies and Commitments (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Contingent Liabilities and Commitments | At December 31, 2014 and 2013, certain unrecorded contingent liabilities and commitments were as follows: | ||||||||
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 venture loans (see Note 7) | 34,199 | 28,684 | |||||||
Costs to complete on surety bonds for Company projects | 66,836 | 77,276 | |||||||
Costs to complete on surety bonds for joint venture projects | 22,694 | 22,845 | |||||||
Costs to complete on surety bonds for affiliate projects | 2,152 | 1,614 | |||||||
Water system connection rights purchase obligation | 27,352 | 30,506 | |||||||
Lease payment obligations to third parties | 4,612 | 4,539 | |||||||
Lease payment obligations to affiliates | 5,059 | 6,487 | |||||||
Total unrecorded contingent liabilities and commitments | $ | 232,904 | $ | 241,951 | |||||
Future Minimum Rental Payments Under Operating Leases | At December 31, 2014, future minimal rental payments under affiliate operating leases having initial or remaining non-cancelable lease terms in excess of one year were as follows: | ||||||||
Payments Due By Year | December 31, | ||||||||
(In thousands) | |||||||||
2015 | 1,311 | ||||||||
2016 | 619 | ||||||||
2017 | 366 | ||||||||
2018 | 383 | ||||||||
2019 and thereafter | 2,380 | ||||||||
Total | $ | 5,059 | |||||||
Affiliates Operating Lease | |||||||||
Future Minimum Rental Payments Under Operating Leases | At December 31, 2014, future minimum rental payments under operating leases (excluding affiliate operating leases for office space – see below) having initial or remaining non-cancelable lease terms in excess of one year were as follows: | ||||||||
Payments Due By Year | December 31, | ||||||||
(In thousands) | |||||||||
2015 | 982 | ||||||||
2016 | 931 | ||||||||
2017 | 802 | ||||||||
2018 | 743 | ||||||||
2019 and thereafter | 1,154 | ||||||||
Total | $ | 4,612 | |||||||
Supplemental_Disclosure_to_Con1
Supplemental Disclosure to Consolidated Statements of Cash Flows (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Consolidated Statement of Cash Flow Supplemental Disclosure | Supplemental disclosures to the consolidated statements of cash flows were as follows: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Supplemental disclosure of cash flow information | |||||||||||||
Income taxes paid (refunded) | $ | 20,300 | $ | 1,181 | $ | (3,891 | ) | ||||||
Interest paid, net of amounts capitalized | $ | 584 | $ | 4,946 | $ | 19,225 | |||||||
Supplemental disclosure of noncash activities | |||||||||||||
Unrealized gain (loss) on available-for-sale investments, net | $ | 318 | $ | 271 | $ | (1,875 | ) | ||||||
Reclassification of Deficit Distributions to (from) unconsolidated joint ventures from (to) other liabilities | $ | 45 | $ | (365 | ) | $ | 212 | ||||||
Purchase of land in exchange for note payable | $ | 13,004 | $ | 4,379 | $ | 8,982 | |||||||
Contribution of inventory to unconsolidated joint venture | $ | 9,468 | $ | 4,082 | $ | 0 | |||||||
Deferred gain on inventory purchased from unconsolidated joint venture | $ | 901 | $ | 0 | $ | 0 | |||||||
Distribution to Owners for assumption of liability and revenue participation payments for land purchased from an affiliate under common control | $ | (20,891 | ) | $ | 0 | $ | 0 | ||||||
Elimination of consolidated joint venture inventory, receivables from affiliates and other assets | $ | 0 | $ | 0 | $ | (41,600 | ) | ||||||
Elimination of consolidated joint venture note payable and other liabilities | $ | 0 | $ | 0 | $ | (1,949 | ) | ||||||
Redemption of Company’s interest in consolidated joint venture and elimination of non-controlling interest, less cash retained by non-controlling interest | $ | 0 | $ | 0 | $ | (39,651 | ) |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Financial Information Related to Reportable Segments | Financial information relating to reportable segments was as follows: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Total assets: | |||||||||||||
Southern California | $ | 370,522 | $ | 316,339 | |||||||||
San Diego | 149,748 | 160,593 | |||||||||||
Northern California | 295,247 | 286,513 | |||||||||||
Mountain West | 355,936 | 316,459 | |||||||||||
South West | 192,359 | 155,416 | |||||||||||
East | 24,791 | 5,096 | |||||||||||
Total homebuilding assets | 1,388,603 | 1,240,416 | |||||||||||
Corporate | 278,107 | 264,917 | |||||||||||
Total assets | $ | 1,666,710 | $ | 1,505,333 | |||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Inventory: | |||||||||||||
Southern California | $ | 305,770 | $ | 239,986 | |||||||||
San Diego | 128,241 | 142,395 | |||||||||||
Northern California | 259,997 | 249,111 | |||||||||||
Mountain West | 301,364 | 247,294 | |||||||||||
South West | 156,716 | 132,484 | |||||||||||
East | 21,497 | 2,002 | |||||||||||
Total inventory | $ | 1,173,585 | $ | 1,013,272 | |||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Revenues: | |||||||||||||
Southern California | $ | 393,480 | $ | 207,650 | $ | 133,990 | |||||||
San Diego | 143,234 | 125,494 | 85,971 | ||||||||||
Northern California | 259,364 | 242,356 | 166,106 | ||||||||||
Mountain West | 175,665 | 186,899 | 147,784 | ||||||||||
South West | 168,282 | 160,744 | 138,161 | ||||||||||
East | 0 | 6,554 | 7,150 | ||||||||||
Total homebuilding revenues | 1,140,025 | 929,697 | 679,162 | ||||||||||
Corporate | 581 | 913 | 985 | ||||||||||
Total revenues | $ | 1,140,606 | $ | 930,610 | $ | 680,147 | |||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Income (loss) before income taxes: | |||||||||||||
Southern California | $ | 82,029 | $ | 44,236 | $ | 12,843 | |||||||
San Diego | 22,288 | 7,717 | 2,493 | ||||||||||
Northern California | 51,219 | 40,648 | 19,292 | ||||||||||
Mountain West | (4,982 | ) | 9,463 | 156 | |||||||||
South West | (1,498 | ) | 8,356 | (2,173 | ) | ||||||||
East | (3,032 | ) | (349 | ) | (202 | ) | |||||||
Total homebuilding income before income taxes | 146,024 | 110,071 | 32,409 | ||||||||||
Corporate | 5,588 | 1,767 | (2,609 | ) | |||||||||
Total income before income taxes | $ | 151,612 | $ | 111,838 | $ | 29,800 | |||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Impairments: | |||||||||||||
Southern California | $ | 284 | $ | 0 | $ | 0 | |||||||
San Diego | 0 | 0 | 0 | ||||||||||
Northern California | 0 | 0 | 0 | ||||||||||
Mountain West | 0 | 0 | 0 | ||||||||||
South West | 8,751 | 0 | 0 | ||||||||||
East | 0 | 0 | 0 | ||||||||||
Total impairments | $ | 9,035 | $ | 0 | $ | 0 | |||||||
Results_of_Quarterly_Operation1
Results of Quarterly Operations (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Results of Quarterly Operations | |||||||||||||||||||||
First | Second | Third | Fourth | Total | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
2014:00:00 | |||||||||||||||||||||
Revenues | $ | 180,115 | $ | 256,083 | $ | 284,489 | $ | 419,919 | $ | 1,140,606 | |||||||||||
Gross margin | $ | 44,857 | $ | 60,273 | $ | 67,894 | $ | 82,564 | $ | 255,588 | |||||||||||
Net income | $ | 11,295 | $ | 28,703 | $ | 33,731 | $ | 59,670 | $ | 133,399 | |||||||||||
Net income attributable to SHLP | $ | 11,298 | $ | 28,707 | $ | 33,749 | $ | 59,682 | $ | 133,436 | |||||||||||
2013:00:00 | |||||||||||||||||||||
Revenues | $ | 134,960 | $ | 217,310 | $ | 238,309 | $ | 340,031 | $ | 930,610 | |||||||||||
Gross margin | $ | 31,536 | $ | 48,426 | $ | 55,848 | $ | 85,388 | $ | 221,198 | |||||||||||
Net income | $ | 6,837 | $ | 19,532 | $ | 25,826 | $ | 73,744 | $ | 125,939 | |||||||||||
Net income attributable to SHLP | $ | 6,838 | $ | 19,534 | $ | 25,824 | $ | 73,751 | $ | 125,947 |
Supplemental_Guarantor_Informa1
Supplemental Guarantor Information (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet | ||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
SHLP | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Corp (a) | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 135,804 | $ | 93,386 | $ | 7,712 | $ | 0 | $ | 236,902 | |||||||||||
Restricted cash | 259 | 113 | 54 | 0 | 426 | ||||||||||||||||
Accounts and other receivables, net | 120,135 | 27,193 | 16,616 | (16,436 | ) | 147,508 | |||||||||||||||
Receivables from affiliates, net | 6,369 | 14 | 20 | 0 | 6,403 | ||||||||||||||||
Inventory | 993,507 | 178,859 | 4,353 | (3,134 | ) | 1,173,585 | |||||||||||||||
Investments in and advances to unconsolidated joint ventures | 25,343 | 1,619 | 15,802 | 0 | 42,764 | ||||||||||||||||
Investments in subsidiaries | 786,462 | 81,447 | 86,721 | (954,630 | ) | 0 | |||||||||||||||
Other assets, net | 22,298 | 36,690 | 134 | 0 | 59,122 | ||||||||||||||||
Intercompany | 0 | 572,036 | 0 | (572,036 | ) | 0 | |||||||||||||||
Total assets | $ | 2,090,177 | $ | 991,357 | $ | 131,412 | $ | (1,546,236 | ) | $ | 1,666,710 | ||||||||||
Liabilities and equity | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||
Notes payable | $ | 761,404 | $ | 0 | $ | 0 | $ | 0 | $ | 761,404 | |||||||||||
Payables to affiliates | 20 | 0 | 3 | 4,774 | 4,797 | ||||||||||||||||
Accounts payable | 51,663 | 15,344 | 314 | 0 | 67,321 | ||||||||||||||||
Other liabilities | 176,160 | 77,701 | 40,904 | (16,435 | ) | 278,330 | |||||||||||||||
Intercompany | 546,451 | 0 | 33,494 | (579,945 | ) | 0 | |||||||||||||||
Total liabilities | 1,535,698 | 93,045 | 74,715 | (591,606 | ) | 1,111,852 | |||||||||||||||
Equity: | |||||||||||||||||||||
SHLP equity: | |||||||||||||||||||||
Owners’ equity | 549,373 | 893,206 | 56,318 | (949,524 | ) | 549,373 | |||||||||||||||
Accumulated other comprehensive income | 5,106 | 5,106 | 0 | (5,106 | ) | 5,106 | |||||||||||||||
Total SHLP equity | 554,479 | 898,312 | 56,318 | (954,630 | ) | 554,479 | |||||||||||||||
Non-controlling interests | 0 | 0 | 379 | 0 | 379 | ||||||||||||||||
Total equity | 554,479 | 898,312 | 56,697 | (954,630 | ) | 554,858 | |||||||||||||||
Total liabilities and equity | $ | 2,090,177 | $ | 991,357 | $ | 131,412 | $ | (1,546,236 | ) | $ | 1,666,710 | ||||||||||
(a) | Includes Shea Homes Funding Corp., whose financial position at December 31, 2014 was not material. | ||||||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
SHLP | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Corp (a) | 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 affiliates, net | 9,251 | 21,761 | 25 | 276 | 31,313 | ||||||||||||||||
Inventory | 749,832 | 263,213 | 3,361 | (3,134 | ) | 1,013,272 | |||||||||||||||
Investments in and advances to unconsolidated joint ventures | 22,068 | 1,357 | 25,360 | 0 | 48,785 | ||||||||||||||||
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 affiliates | 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 | ||||||||||
(a) | 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 Operations and Comprehensive Income | ||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
SHLP | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Corp (a) | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Revenues | $ | 680,109 | $ | 444,229 | $ | 16,268 | $ | 0 | $ | 1,140,606 | |||||||||||
Cost of sales | (545,442 | ) | (338,185 | ) | (1,391 | ) | 0 | (885,018 | ) | ||||||||||||
Gross margin | 134,667 | 106,044 | 14,877 | 0 | 255,588 | ||||||||||||||||
Selling expenses | (38,268 | ) | (17,899 | ) | (7,262 | ) | 0 | (63,429 | ) | ||||||||||||
General and administrative expenses | (37,444 | ) | (14,979 | ) | (2,498 | ) | 0 | (54,921 | ) | ||||||||||||
Equity in income (loss) from unconsolidated joint ventures | (4,000 | ) | 119 | 13,023 | 0 | 9,142 | |||||||||||||||
Equity in income from subsidiaries | 85,794 | 8,148 | 1,748 | (95,690 | ) | 0 | |||||||||||||||
Gain on reinsurance | 0 | 0 | 7,177 | 0 | 7,177 | ||||||||||||||||
Interest expense | (595 | ) | 0 | 0 | 0 | (595 | ) | ||||||||||||||
Other income (expense), net | (6,709 | ) | 5,502 | (143 | ) | 0 | (1,350 | ) | |||||||||||||
Income before income taxes | 133,445 | 86,935 | 26,922 | (95,690 | ) | 151,612 | |||||||||||||||
Income tax expense | (9 | ) | (18,183 | ) | (21 | ) | 0 | (18,213 | ) | ||||||||||||
Net income | 133,436 | 68,752 | 26,901 | (95,690 | ) | 133,399 | |||||||||||||||
Less: Net loss attributable to non-controlling interests | 0 | 0 | 37 | 0 | 37 | ||||||||||||||||
Net income attributable to SHLP | $ | 133,436 | $ | 68,752 | $ | 26,938 | $ | (95,690 | ) | $ | 133,436 | ||||||||||
Comprehensive income | $ | 133,754 | $ | 69,070 | $ | 26,901 | $ | (96,008 | ) | $ | 133,717 | ||||||||||
(a) | Includes Shea Homes Funding Corp., whose results of operations for the year ended December 31, 2014 was not material. | ||||||||||||||||||||
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) | |||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
SHLP | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Corp (a) | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Revenues | $ | 505,510 | $ | 404,393 | $ | 20,707 | $ | 0 | $ | 930,610 | |||||||||||
Cost of sales | (406,563 | ) | (302,081 | ) | (1,502 | ) | 734 | (709,412 | ) | ||||||||||||
Gross margin | 98,947 | 102,312 | 19,205 | 734 | 221,198 | ||||||||||||||||
Selling expenses | (28,925 | ) | (18,847 | ) | (6,566 | ) | 0 | (54,338 | ) | ||||||||||||
General and administrative expenses | (34,936 | ) | (12,294 | ) | (2,850 | ) | 0 | (50,080 | ) | ||||||||||||
Equity in income (loss) from unconsolidated joint ventures | (2,020 | ) | (65 | ) | 981 | 0 | (1,104 | ) | |||||||||||||
Equity in income (loss) from subsidiaries | 100,821 | (1,443 | ) | (3,342 | ) | (96,036 | ) | 0 | |||||||||||||
Gain on reinsurance | 0 | 0 | 2,011 | 0 | 2,011 | ||||||||||||||||
Interest expense | (3,658 | ) | (1,413 | ) | 0 | 0 | (5,071 | ) | |||||||||||||
Other income (expense), net | (4,280 | ) | 3,428 | 808 | (734 | ) | (778 | ) | |||||||||||||
Income before income taxes | 125,949 | 71,678 | 10,247 | (96,036 | ) | 111,838 | |||||||||||||||
Income tax benefit (expense) | (2 | ) | 14,112 | (9 | ) | 0 | 14,101 | ||||||||||||||
Net income | 125,947 | 85,790 | 10,238 | (96,036 | ) | 125,939 | |||||||||||||||
Less: Net loss attributable to non-controlling interests | 0 | 0 | 8 | 0 | 8 | ||||||||||||||||
Net income attributable to SHLP | $ | 125,947 | $ | 85,790 | $ | 10,246 | $ | (96,036 | ) | $ | 125,947 | ||||||||||
Comprehensive income | $ | 126,218 | $ | 86,061 | $ | 10,238 | $ | (96,307 | ) | $ | 126,210 | ||||||||||
(a) | Includes Shea Homes Funding Corp., whose results of operations for the year ended December 31, 2013 was not material. | ||||||||||||||||||||
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) | |||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
SHLP | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Corp (a) | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Revenues | $ | 470,756 | $ | 200,329 | $ | 9,062 | $ | 0 | $ | 680,147 | |||||||||||
Cost of sales | (372,576 | ) | (164,992 | ) | (1,343 | ) | 477 | (538,434 | ) | ||||||||||||
Gross margin | 98,180 | 35,337 | 7,719 | 477 | 141,713 | ||||||||||||||||
Selling expenses | (26,836 | ) | (13,531 | ) | (5,421 | ) | 0 | (45,788 | ) | ||||||||||||
General and administrative expenses | (30,560 | ) | (10,500 | ) | (2,687 | ) | 0 | (43,747 | ) | ||||||||||||
Equity in income (loss) from unconsolidated joint ventures | (338 | ) | (43 | ) | 759 | 0 | 378 | ||||||||||||||
Equity in income (loss) from subsidiaries | 11,334 | (20,211 | ) | (4,556 | ) | 13,433 | 0 | ||||||||||||||
Loss on reinsurance | 0 | 0 | (12,013 | ) | 0 | (12,013 | ) | ||||||||||||||
Interest expense | (17,326 | ) | (2,532 | ) | (4 | ) | 0 | (19,862 | ) | ||||||||||||
Other income (expense), net | (5,411 | ) | 12,905 | 2,102 | (477 | ) | 9,119 | ||||||||||||||
Income (loss) before income taxes | 29,043 | 1,425 | (14,101 | ) | 13,433 | 29,800 | |||||||||||||||
Income tax expense | (5 | ) | (601 | ) | (10 | ) | 0 | (616 | ) | ||||||||||||
Net income (loss) | 29,038 | 824 | (14,111 | ) | 13,433 | 29,184 | |||||||||||||||
Less: Net income attributable to non-controlling interests | 0 | 0 | (146 | ) | 0 | (146 | ) | ||||||||||||||
Net income (loss) attributable to SHLP | $ | 29,038 | $ | 824 | $ | (14,257 | ) | $ | 13,433 | $ | 29,038 | ||||||||||
Comprehensive income (loss) | $ | 27,163 | $ | (1,051 | ) | $ | (14,111 | ) | $ | 15,308 | $ | 27,309 | |||||||||
(b) | Includes Shea Homes Funding Corp., whose results of operations for the year ended December 31, 2012 was not material. | ||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
SHLP | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Corp (a) | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Operating activities | |||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (159,184 | ) | $ | 146,682 | $ | 9,905 | $ | 5,051 | $ | 2,454 | ||||||||||
Investing activities | |||||||||||||||||||||
Collections on promissory notes from affiliates | 3,595 | 21,588 | 0 | 0 | 25,183 | ||||||||||||||||
Investments in and advances to unconsolidated joint ventures | (5,863 | ) | (299 | ) | (22,996 | ) | 0 | (29,158 | ) | ||||||||||||
Distributions from unconsolidated joint ventures | 121 | 125 | 38,521 | 0 | 38,767 | ||||||||||||||||
Proceeds from sale of marketable securities | 0 | 184 | 0 | 0 | 184 | ||||||||||||||||
Net cash provided by (used in) investing activities | (2,147 | ) | 21,598 | 15,525 | 0 | 34,976 | |||||||||||||||
Financing activities | |||||||||||||||||||||
Principal payments to financial institutions and others | (3,308 | ) | 0 | 0 | 0 | (3,308 | ) | ||||||||||||||
Distributions to owners | (4,385 | ) | 0 | 0 | 0 | (4,385 | ) | ||||||||||||||
Intercompany | 150,089 | (118,697 | ) | (26,341 | ) | (5,051 | ) | 0 | |||||||||||||
Other financing activities | 945 | 0 | 15 | 0 | 960 | ||||||||||||||||
Net cash provided by (used in) financing activities | 143,341 | (118,697 | ) | (26,326 | ) | (5,051 | ) | (6,733 | ) | ||||||||||||
Net increase (decrease) in cash and cash equivalents | (17,990 | ) | 49,583 | (896 | ) | 0 | 30,697 | ||||||||||||||
Cash and cash equivalents at beginning of year | 153,794 | 43,803 | 8,608 | 0 | 206,205 | ||||||||||||||||
Cash and cash equivalents at end of year | $ | 135,804 | $ | 93,386 | $ | 7,712 | $ | 0 | $ | 236,902 | |||||||||||
(a) | Includes Shea Homes Funding Corp., whose cash flows for the year ended December 31, 2014 were not material. | ||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
SHLP | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Corp (a) | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Operating activities | |||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (135,869 | ) | $ | 74,342 | $ | 10,901 | $ | 2,759 | $ | (47,867 | ) | |||||||||
Investing activities | |||||||||||||||||||||
Proceeds from sale of available-for-sale investments | 0 | 3,165 | 0 | 0 | 3,165 | ||||||||||||||||
Investments in and advances to unconsolidated joint ventures | (9,713 | ) | (275 | ) | (16,157 | ) | 0 | (26,145 | ) | ||||||||||||
Distributions from unconsolidated joint ventures | 0 | 0 | 4,072 | 0 | 4,072 | ||||||||||||||||
Collections on promissory notes from affiliates | 1,192 | 2,912 | 0 | 0 | 4,104 | ||||||||||||||||
Net cash provided by (used in) investing activities | (8,521 | ) | 5,802 | (12,085 | ) | 0 | (14,804 | ) | |||||||||||||
Financing activities | |||||||||||||||||||||
Principal payments to financial institutions and others | (10,880 | ) | 0 | 0 | 0 | (10,880 | ) | ||||||||||||||
Intercompany | 92,150 | (85,236 | ) | (4,155 | ) | (2,759 | ) | 0 | |||||||||||||
Net cash provided by (used in) financing activities | 81,270 | (85,236 | ) | (4,155 | ) | (2,759 | ) | (10,880 | ) | ||||||||||||
Net decrease in cash and cash equivalents | (63,120 | ) | (5,092 | ) | (5,339 | ) | 0 | (73,551 | ) | ||||||||||||
Cash and cash equivalents at beginning of year | 216,914 | 48,895 | 13,947 | 0 | 279,756 | ||||||||||||||||
Cash and cash equivalents at end of year | $ | 153,794 | $ | 43,803 | $ | 8,608 | $ | 0 | $ | 206,205 | |||||||||||
(a) | Includes Shea Homes Funding Corp., whose cash flows for the year ended December 31, 2013 were not material. | ||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
SHLP | Guarantor | Non-Guarantor | Eliminations | Total | |||||||||||||||||
Corp (a) | Subsidiaries | Subsidiaries | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Operating activities | |||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 33,520 | $ | (64,012 | ) | $ | 25,506 | $ | (1,669 | ) | $ | (6,655 | ) | ||||||||
Investing activities | |||||||||||||||||||||
Proceeds from sale of available-for-sale investments | 0 | 26,547 | 0 | 0 | 26,547 | ||||||||||||||||
Collections (advances) on promissory notes from affiliates | 1,142 | 882 | (143 | ) | 0 | 1,881 | |||||||||||||||
Investments in and advances to unconsolidated joint ventures | (10,898 | ) | (229 | ) | (840 | ) | 0 | (11,967 | ) | ||||||||||||
Distributions from unconsolidated joint ventures | 0 | 427 | 0 | 0 | 427 | ||||||||||||||||
Net cash provided by (used in) investing activities | (9,756 | ) | 27,627 | (983 | ) | 0 | 16,888 | ||||||||||||||
Financing activities | |||||||||||||||||||||
Principal payments to financial institutions and others | (2,230 | ) | 0 | (199 | ) | 0 | (2,429 | ) | |||||||||||||
Intercompany | 35,517 | (10,820 | ) | (26,366 | ) | 1,669 | 0 | ||||||||||||||
Other financing activities | 2,352 | 0 | 1,234 | 0 | 3,586 | ||||||||||||||||
Net cash provided by (used in) financing activities | 35,639 | (10,820 | ) | (25,331 | ) | 1,669 | 1,157 | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | 59,403 | (47,205 | ) | (808 | ) | 0 | 11,390 | ||||||||||||||
Cash and cash equivalents at beginning of year | 157,511 | 96,100 | 14,755 | 0 | 268,366 | ||||||||||||||||
Cash and cash equivalents at end of year | $ | 216,914 | $ | 48,895 | $ | 13,947 | $ | 0 | $ | 279,756 | |||||||||||
(a) | Includes Shea Homes Funding Corp., whose cash flows for the year ended December 31, 2012 were not material. |
Organization_Additional_Inform
Organization - Additional Information (Detail) (JFSCI) | Dec. 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) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Significant Accounting Policies [Line Items] | |||
Advertising costs incurred | $12.10 | $7.40 | $6.60 |
Reclassification from Affiliates Receivables to Unconsolidated Joint Ventures | |||
Significant Accounting Policies [Line Items] | |||
Reclassification adjustment | 1 | ||
Reclassification From Promissory Note Advances To Unconsolidated Joint Ventures | |||
Significant Accounting Policies [Line Items] | |||
Reclassification adjustment | 0.8 | ||
Reclassification From Promissory Note Collections To Unconsolidated Joint Ventures | |||
Significant Accounting Policies [Line Items] | |||
Reclassification adjustment | $0.10 | ||
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Maturity of cash and cash equivalents | 90 days | ||
Assets fair value discount rates | 25.00% | ||
Operations claims standard warranty period | 2 years | ||
Completed operations extended warranty period | 10 years | ||
Maximum | Fair Value Adjustment to Inventory | |||
Significant Accounting Policies [Line Items] | |||
Assets fair value discount rates | 25.00% | ||
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Assets fair value discount rates | 10.00% | ||
Operations claims standard warranty period | 1 year | ||
Minimum | Fair Value Adjustment to Inventory | |||
Significant Accounting Policies [Line Items] | |||
Assets fair value discount rates | 10.00% |
Restricted_Cash_Additional_Inf
Restricted Cash - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $426 | $1,189 |
Fair_Value_Disclosures_Additio
Fair Value Disclosures - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Discount rate | 10.00% | |
Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Discount rate | 25.00% | |
Senior Secured Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate | 8.63% | 8.63% |
Maturity date | 15-May-19 | |
Fair Value, Inputs, Level 2 | Senior Secured Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Net Book Value | 750,000,000 | 750,000,000 |
Interest rate | 8.63% | 8.63% |
Maturity date | 15-May-19 | |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Nonrecurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Non-financial instruments, net book value | 23,900,000 | |
Non-financial instruments, fair value | 14,900,000 | |
Non-financial instruments, impairment charge | 9,000,000 |
Net_Book_Values_and_Estimated_
Net Book Values and Estimated Fair Values of Notes Payable (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Net Book Value | $761,404 | $751,708 |
Senior Secured Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Net Book Value | 750,000 | 750,000 |
Estimated Fair Value | 787,500 | 830,625 |
Secured Promissory Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Net Book Value | 11,404 | 1,708 |
Estimated Fair Value | $11,404 | $1,708 |
Net_Book_Values_and_Estimated_1
Net Book Values and Estimated Fair Values of Notes Payable (Parenthetical) (Detail) (Senior Secured Notes, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
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] | ||
Principal amount | 750,000 | 750,000 |
Interest rate | 8.63% | 8.63% |
Maturity period | 2019-05 | 2019-05 |
Accounts_and_Other_Receivables2
Accounts and Other Receivables (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts and Other Receivables [Line Items] | ||
Insurance receivables | $136,155 | $138,610 |
Escrow receivables | 3,965 | 586 |
Notes receivables | 4,091 | 3,155 |
Development receivables | 1,317 | 3,093 |
Other receivables | 3,941 | 4,031 |
Reserve | -1,961 | -1,976 |
Total accounts and other receivables, net | $147,508 | $147,499 |
Accounts_and_Other_Receivables3
Accounts and Other Receivables, Net - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts and Other Receivables [Line Items] | ||
Insurance receivables | $136,155 | $138,610 |
Affiliate insurance carriers | ||
Accounts and Other Receivables [Line Items] | ||
Insurance receivables | $61,400 | $44,000 |
Inventory_Detail
Inventory (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ||
Homes under construction | $310,318 | $257,662 |
Lots available for construction | 402,001 | 342,622 |
Land under development | 107,120 | 122,257 |
Land held for future development | 126,925 | 70,618 |
Land held for sale | 78,845 | 79,102 |
Land deposits and preacquisition costs | 29,686 | 32,998 |
Total inventory | 1,173,585 | 1,013,272 |
Model Homes | ||
Inventory [Line Items] | ||
Inventory finished homes | 86,340 | 87,728 |
Completed Homes for Sale | ||
Inventory [Line Items] | ||
Inventory finished homes | $32,350 | $20,285 |
Inventory_Additional_Informati
Inventory - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Inventory Disclosure [Line Items] | |||
Land held for sale | $78,845,000 | $79,102,000 | |
Write-offs of deposits and pre acquisition costs | 1,300,000 | 1,400,000 | 2,000,000 |
Water System Connection Rights | |||
Inventory Disclosure [Line Items] | |||
Land held for sale | 12,600,000 | 11,400,000 | |
Model Homes | |||
Inventory Disclosure [Line Items] | |||
Amortized costs | $12,000,000 | $10,300,000 | $8,200,000 |
Inventory_Impairment_Detail
Inventory Impairment (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Project | Project | Project | ||||
Inventory Disclosure [Line Items] | ||||||
Inventory impairment charge | $9,035 | $0 | $0 | |||
Remaining carrying value of inventory impaired at end of year | 14,888 | 0 | 0 | |||
Projects impaired | 3 | 0 | 0 | |||
Projects evaluated for impairment | $145 | [1] | $126 | [1] | $132 | [1] |
[1] | Large land parcels not subdivided into communities are counted as one project. Once parcels are subdivided, the project count will increase accordingly. |
Interest_Incurred_Expensed_and
Interest Incurred, Expensed and Capitalized (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Capitalized Interest [Line Items] | ||||||
Interest incurred | $68,204 | $67,048 | $66,857 | |||
Interest expensed | 595 | [1] | 5,071 | [1] | 19,862 | [1] |
Interest capitalized as a cost of inventory | 64,697 | 59,699 | 46,146 | |||
Interest previously capitalized as a cost of inventory, included in cost of sales | -68,780 | -60,448 | -54,733 | |||
Interest capitalized in ending inventory | 98,017 | [2] | 102,100 | [2] | 102,849 | [2] |
Interest capitalized as a cost of investments in unconsolidated joint ventures | 2,912 | 2,278 | 849 | |||
Interest previously capitalized as a cost of investments in joint ventures, included in equity in income (loss) from unconsolidated joint ventures | -2,444 | -1,189 | -849 | |||
Interest capitalized in ending investments in unconsolidated joint ventures | $1,557 | $1,089 | $0 | |||
[1] | For the eight months ended August 31, 2013 and for the year ended December 31, 2012, assets qualifying for interest capitalization were less than debt; therefore, non-qualifying interest was expensed. For the period from September 2013 to December 2014, qualifying assets exceeded debt; therefore, no interest on the Secured Notes (see Note 10) was expensed. 2014 interest expense represents fees charged on the unused Revolver (see Note 10) that is not considered a cost of borrowing and is not capitalized. | |||||
[2] | Inventory impairment charges were recorded against total inventory of the respective community. Capitalized interest reflects the gross amount of capitalized interest as impairment charges recognized were generally not allocated to specific components of inventory. |
Interest_Incurred_Expensed_and1
Interest Incurred, Expensed and Capitalized (Parenthetical) (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Capitalized Interest [Line Items] | |
Interest charged on unused revolving credit facility | $0 |
Investments_in_Joint_Ventures_
Investments in Joint Ventures - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2014 | |
Investment [Line Items] | ||
Deficit Distributions | 351,000 | $307,000 |
Maximum remargin obligation | 70,000,000 | |
Guaranty Liabilities | 0 | 0 |
Loan advances | 1,037,000 | 8,727,000 |
Aggregate capital contributions | 48,785,000 | 42,764,000 |
Polo Estates Ventures, LLC | ||
Investment [Line Items] | ||
Notes payable outstanding | 4,800,000 | 12,700,000 |
Line of credit facility, maximum borrowing capacity | 21,600,000 | 21,600,000 |
RRWS,LLC | ||
Investment [Line Items] | ||
Notes payable outstanding | 47,700,000 | 43,000,000 |
Maximum liability (cap) | 35,000,000 | |
Guarantee Provided | Polo Estates Ventures, LLC | ||
Investment [Line Items] | ||
Maximum remargin obligation | 4,800,000 | 12,700,000 |
Line of credit facility, maximum borrowing capacity | 21,600,000 | 21,600,000 |
Guarantee Provided | RRWS,LLC | ||
Investment [Line Items] | ||
Indemnification agreement from joint ventures, percentage | 50.00% | |
Notes payable outstanding | 47,700,000 | 43,000,000 |
Maximum remargin obligation | 23,800,000 | 21,500,000 |
Unconsolidated Joint Ventures | ||
Investment [Line Items] | ||
Percentage of cumulative consolidated net income | 50.00% | |
Unconsolidated Joint Ventures | Revolving Basket | ||
Investment [Line Items] | ||
Borrowing available for joint venture investment | 70,000,000 | |
Unconsolidated Joint Ventures | General Basket | ||
Investment [Line Items] | ||
Borrowing available for joint venture investment | 10,000,000 | |
Unconsolidated Joint Ventures | Related Party Receivables and Payables | ||
Investment [Line Items] | ||
Loan advances | 1,000,000 | 8,700,000 |
Notes receivable, maturity year | 2021 | |
Internal rate of returns | 17.50% | |
Notes receivable, expected repaid year | Can be repaid prior to 2020 | |
Unconsolidated Joint Ventures | Related Party Receivables and Payables | Loan advance can earn additional interest | ||
Investment [Line Items] | ||
Bearing interest from notes receivable | 8.00% | |
Unconsolidated Joint Ventures | Maximum | ||
Investment [Line Items] | ||
Ownership interest | 50.00% | |
Unconsolidated Joint Ventures | Maximum | Related Party Receivables and Payables | ||
Investment [Line Items] | ||
Bearing interest from notes receivable | 12.00% | |
Unconsolidated Joint Ventures | Minimum | ||
Investment [Line Items] | ||
Consolidated fixed charge coverage ratio | 200.00% | |
Unconsolidated Joint Ventures | Minimum | Related Party Receivables and Payables | ||
Investment [Line Items] | ||
Bearing interest from notes receivable | 7.50% | |
Fourth Unconsolidated Joint Venture | ||
Investment [Line Items] | ||
Committed capital contribution in joint venture | 45,000,000 | |
Aggregate capital contributions | 15,100,000 |
Investment_in_and_Advances_to_
Investment in and Advances to Unconsolidated Joint Ventures (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity investments | $34,037 | $47,748 |
Loan advances | 8,727 | 1,037 |
Total investments in and advances to unconsolidated joint ventures | $42,764 | $48,785 |
Condensed_Financial_Informatio
Condensed Financial Information of Investments in Unconsolidated Joint Venture (Detail) (Unconsolidated Joint Ventures, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Unconsolidated Joint Ventures | ||||
Assets | ||||
Real estate inventory | $253,422 | $267,460 | ||
Other assets | 83,674 | 130,840 | ||
Total assets | 337,096 | 398,300 | ||
Liabilities and equity | ||||
Notes payable | 159,042 | 78,589 | ||
Other liabilities | 58,376 | 99,395 | ||
Total liabilities | 217,418 | 177,984 | ||
Equity: | ||||
The Company | 33,731 | [1],[2] | 47,397 | [1],[2] |
Others | 85,947 | 172,919 | ||
Total equity | 119,678 | 220,316 | ||
Total liabilities and equity | $337,096 | $398,300 | ||
[1] | Large land parcels not subdivided into communities are counted as one project. Once parcels are subdivided, the project count will increase accordingly. | |||
[2] | At December 31, 2014 and 2013, includes Deficit Distributions of $0.3 million and $0.4 million, respectively. |
Condensed_Income_Statement_of_
Condensed Income Statement of Joint Ventures (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Equity Method Investments [Line Items] | |||
The Company's share of net income (loss) | $9,142 | ($1,104) | $378 |
Unconsolidated Joint Ventures | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenues | 288,623 | 90,743 | 46,586 |
Expenses | -223,899 | -85,594 | -48,079 |
Net income (loss) | 64,724 | 5,149 | -1,493 |
The Company's share of net income (loss) | $9,142 | ($1,104) | $378 |
Condensed_Financial_Informatio1
Condensed Financial Information of Investments in Unconsolidated Joint Venture (Parenthetical) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Equity Method Investments [Line Items] | ||
Deficit Distributions | $307 | $351 |
Total_Unconsolidated_Joint_Ven
Total Unconsolidated Joint Ventures' Note Payable (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Notes payable | $761,404 | $751,708 | ||
Unconsolidated Joint Ventures | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Joint venture debt | 159,042 | 78,589 | ||
Unconsolidated Joint Ventures | Bank and Seller Financing Notes Payable | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Notes payable | 90,499 | [1] | 62,588 | [1] |
Unconsolidated Joint Ventures | Bank and Seller Financing Notes Payable | Guarantee Provided | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Notes payable | 55,675 | 52,515 | ||
Unconsolidated Joint Ventures | Bank and Seller Financing Notes Payable | Non Guaranteed Obligations | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Notes payable | 34,824 | 10,073 | ||
Unconsolidated Joint Ventures | Partner Notes Payable | Unsecured Debt | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Notes payable | 68,543 | [2] | 16,001 | [2] |
Non-Direct Unconsolidated Joint Ventures | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Joint venture debt | $83,847 | [3] | $55,441 | [3] |
[1] | All bank and seller notes were secured by real property. | |||
[2] | No guarantees were provided on partner notes payables. In January 2014, a $3.2 million partner note from one joint venture was paid in full. | |||
[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 a guaranty. |
Total_Unconsolidated_Joint_Ven1
Total Unconsolidated Joint Ventures' Note Payable (Parenthetical) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2014 |
In Thousands, unless otherwise specified | |||
Schedule of Equity Method Investments [Line Items] | |||
Notes payable | $761,404 | $751,708 | |
Joint Venture One | |||
Schedule of Equity Method Investments [Line Items] | |||
Notes payable | $3,200 | ||
Indirect | Joint Venture One | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest | 12.30% | ||
Indirect | Joint Venture Two | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest | 0.00% |
Variable_Interest_Entities_Add
Variable Interest Entities - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Revolving Credit Facility | ||
Variable Interest Entities and Non Variable Interest Entities [Line Items] | ||
Line of credit facility, amount outstanding | $0 | |
RRWS,LLC | ||
Variable Interest Entities and Non Variable Interest Entities [Line Items] | ||
Acquisition, development and construction loans, term | 2 years | |
Acquisition, development and construction loans, extension option | 1 year | |
Notes payable outstanding | 43,000,000 | 47,700,000 |
Maximum liability (cap) | 35,000,000 | |
Maximum aggregate liability | We have a maximum aggregate liability under the remargin arrangements of the lesser of 50% of the outstanding balances in total for these joint venture loans or $35.0 million. Our and RRWS Partner's obligations under the remargin arrangements are limited during the first two years of the loans. | |
Maximum remargin obligation | 21,500,000 | 23,800,000 |
Polo Estates Ventures, LLC | ||
Variable Interest Entities and Non Variable Interest Entities [Line Items] | ||
Acquisition, development and construction loans, term | 2 years | |
Acquisition, development and construction loans, extension option | 1 year | |
Notes payable outstanding | 12,700,000 | 4,800,000 |
Line of credit facility, maximum borrowing capacity | 21,600,000 | 21,600,000 |
Vistancia West Holdings LP | Revolving Credit Facility | ||
Variable Interest Entities and Non Variable Interest Entities [Line Items] | ||
Acquisition, development and construction loans, term | 3 years | |
Line of credit facility, maximum borrowing capacity | 27,500,000 | |
Line of credit facility, amount outstanding | 3,800,000 | |
Affiliated Entity | RRWS,LLC | ||
Variable Interest Entities and Non Variable Interest Entities [Line Items] | ||
VIEs ownership interest | 50.00% | |
Affiliated Entity | Polo Estates Ventures, LLC | ||
Variable Interest Entities and Non Variable Interest Entities [Line Items] | ||
VIEs ownership interest | 50.00% | |
Affiliated Entity | Vistancia West Holdings LP | ||
Variable Interest Entities and Non Variable Interest Entities [Line Items] | ||
VIEs ownership interest | 10.00% | |
Third Party | RRWS,LLC | ||
Variable Interest Entities and Non Variable Interest Entities [Line Items] | ||
VIEs ownership interest | 50.00% | |
Third Party | Polo Estates Ventures, LLC | ||
Variable Interest Entities and Non Variable Interest Entities [Line Items] | ||
VIEs ownership interest | 50.00% | |
Third Party | Vistancia West Holdings LP | ||
Variable Interest Entities and Non Variable Interest Entities [Line Items] | ||
VIEs ownership interest | 90.00% | |
Land Option Contracts | ||
Variable Interest Entities and Non Variable Interest Entities [Line Items] | ||
Refundable and non-refundable cash deposits | 21,200,000 | |
Remaining purchase price of cash deposits | 450,600,000 | |
Land Option Contracts | Loss Exposure | ||
Variable Interest Entities and Non Variable Interest Entities [Line Items] | ||
Non-refundable deposits | 24,800,000 | 6,900,000 |
Capitalized preacquisition costs | 4,400,000 | 12,000,000 |
Unconsolidated Variable Interest Entities | Land Option Contracts | ||
Variable Interest Entities and Non Variable Interest Entities [Line Items] | ||
Refundable and non-refundable cash deposits | 4,200,000 | |
Remaining purchase price of cash deposits | $60,600,000 |
Other_Assets_Detail
Other Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Assets [Line Items] | ||
Income tax receivable | $1,384 | $2,199 |
Deferred tax asset | 20,159 | 16,337 |
Investments | 9,815 | 9,439 |
Property and equipment, net | 4,140 | 4,103 |
Capitalized loan origination fees | 9,730 | 11,089 |
Deposits in lieu of bonds and letters of credit | 8,653 | 10,294 |
Prepaid insurance | 2,589 | 2,460 |
Other | 2,652 | 1,149 |
Total other assets, net | $59,122 | $57,070 |
Other_Assets_Net_Additional_In
Other Assets, Net - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Other Assets [Line Items] | ||
Available for sale securities realized gains | $0 | $100,000 |
Notes_Payable_Detail
Notes Payable (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Notes payable | $761,404 | $751,708 |
Senior Secured Notes | ||
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 | $11,404 | $1,708 |
Notes_Payable_Parenthetical_De
Notes Payable (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | 10-May-11 |
Senior Secured Notes | |||
Debt Instrument [Line Items] | |||
Principal amount | $750 | $750 | $750 |
Interest rate | 8.63% | 8.63% | |
Maturity date | 2019-05 | 2019-05 | |
Maturity date | 15-May-19 | ||
Secured Revolving Credit Facility Matures March 1, 2016 | |||
Debt Instrument [Line Items] | |||
Principal amount | $125 | $125 | |
Maturity date | 1-Mar-16 | 1-Mar-16 | |
Secured Revolving Credit Facility Matures March 1, 2016 | Eurocurrency Rate | |||
Debt Instrument [Line Items] | |||
Spread on variable rate | 2.75% | 2.75% | |
Secured Promissory Notes | |||
Debt Instrument [Line Items] | |||
Maturity year | 2016 | 2016 | |
Minimum | Secured Promissory Notes | |||
Debt Instrument [Line Items] | |||
Interest rate | 1.00% | 1.00% | |
Maximum | Secured Promissory Notes | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.00% | 4.00% |
Notes_Payable_Additional_Infor
Notes Payable - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Feb. 28, 2014 | Dec. 31, 2013 | 10-May-11 | |
Debt Instrument [Line Items] | ||||
Accrued interest | $8,127,000 | $8,086,000 | ||
Letters of credit, borrowing capacity | 75,000,000 | |||
Senior Secured Notes | ||||
Debt Instrument [Line Items] | ||||
Maturity date | 15-May-19 | |||
Accrued interest | 8,100,000 | 8,100,000 | ||
Principal amount of debt issued | 750,000,000 | 750,000,000 | 750,000,000 | |
Senior Secured Notes | Semi Annual Payment, First Payment | ||||
Debt Instrument [Line Items] | ||||
Interest payment date | 15-May | |||
Senior Secured Notes | Semi Annual Payment, Second Payment | ||||
Debt Instrument [Line Items] | ||||
Interest payment date | 15-Nov | |||
Senior Secured Notes | Redeem On Or After May 15, 2015 | ||||
Debt Instrument [Line Items] | ||||
Note redemption price | $104.31 | |||
Senior Secured Notes | Redeem On Or After May 15, 2016 | ||||
Debt Instrument [Line Items] | ||||
Note redemption price | $102.16 | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maturity date | 1-Mar-16 | |||
Letters of credit, borrowing capacity | 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. | |||
Amortizing period of term loan | 18 months | |||
Line of credit facility, amount outstanding | $0 | |||
Revolving Credit Facility | Eurocurrency Rate | ||||
Debt Instrument [Line Items] | ||||
Spread on variable rate | 2.75% |
Other_Liabilities_Detail
Other Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Other Liabilities [Line Items] | ||||
Completed operations reserves | $136,155 | $138,610 | ||
Warranty reserves | 22,698 | 20,648 | 17,749 | 17,358 |
Accrued profit and revenue participation arrangements | 23,815 | 678 | ||
Deferred revenue/gain | 22,769 | 29,358 | ||
Provisions for delivered homes/communities | 9,116 | 10,591 | ||
Deposits (primarily homebuyer) | 17,869 | 14,281 | ||
Legal reserves | 15,705 | 4,576 | ||
Accrued interest | 8,127 | 8,086 | ||
Accrued compensation and benefits | 12,534 | 9,389 | ||
Distributions payable | 2,169 | 2,531 | ||
Deficit Distributions | 307 | 351 | ||
Other | 7,066 | 6,702 | ||
Total other liabilities | $278,330 | $245,801 |
Other_Liabilities_Additional_I
Other Liabilities - Additional Information (Detail) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2009 | |
Other Liabilities [Line Items] | |||||
Insurance receivables | $136,155,000 | $138,610,000 | |||
Percentage of uncovered losses related to completed operations | 12.50% | ||||
Gain (loss) on reinsurance transaction | 7,177,000 | 2,011,000 | -12,013,000 | ||
Distribution payable to non-controlling interest | 2,169,000 | 2,531,000 | |||
Distributions payable | 344,000 | ||||
Vistancia, LLC | |||||
Other Liabilities [Line Items] | |||||
Distribution payable to non-controlling interest | 2,200,000 | 2,500,000 | 3,300,000 | ||
Distributions payable | 100,000 | ||||
JFSCI | |||||
Other Liabilities [Line Items] | |||||
Deferred revenue on completed operation claims | 14,900,000 | 18,900,000 | 19,200,000 | ||
Gain (loss) on reinsurance transaction | 4,100,000 | 1,400,000 | -4,700,000 | ||
PIC | |||||
Other Liabilities [Line Items] | |||||
Deferred revenue on completed operation claims | 4,700,000 | 7,800,000 | 15,600,000 | ||
Gain (loss) on reinsurance transaction | $3,100,000 | $600,000 | ($7,300,000) | ||
Minimum | |||||
Other Liabilities [Line Items] | |||||
Operations claims standard warranty period | 1 year | ||||
Maximum | |||||
Other Liabilities [Line Items] | |||||
Operations claims standard warranty period | 2 years | ||||
Completed operations extended warranty period | 10 years |
Changes_in_Completed_Operation
Changes in Completed Operations Reserves (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Completed Operations [Line Items] | |||
Balance, end of the year | $136,155 | $138,610 | |
Insured Operations | |||
Completed Operations [Line Items] | |||
Balance, beginning of the year | 138,610 | 131,519 | 109,390 |
Reserves provided | 15,133 | 19,002 | 40,087 |
Claims paid | -17,588 | -11,911 | -17,958 |
Balance, end of the year | $136,155 | $138,610 | $131,519 |
Changes_in_Warranty_Liabilitie
Changes in Warranty Liabilities (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Warranty Liability [Line Items] | |||
Balance, beginning of the year | $20,648 | $17,749 | $17,358 |
Provision for warranties | 14,363 | 11,188 | 8,958 |
Warranty costs paid | -12,313 | -8,289 | -8,567 |
Balance, end of the year | $22,698 | $20,648 | $17,749 |
Affiliate_Transactions_Detail
Affiliate Transactions (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Related Party Transaction [Line Items] | ||
Note receivable from JFSCI | $0 | $21,588 |
Notes receivable from affiliates | 15,303 | 18,822 |
Reserves for notes receivable from affiliates | -12,917 | -12,842 |
Receivables from affiliates | 4,017 | 3,745 |
Total receivables from affiliates, net | $6,403 | $31,313 |
Affiliate_Transactions_Additio
Affiliate Transactions - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2014 | Jun. 30, 2014 | Feb. 28, 2014 | Oct. 31, 2012 | Mar. 31, 2012 | 31-May-11 | ||
Lot | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Note receivables from affiliates | $15,303,000 | $18,822,000 | ||||||||
Reserves for notes receivable from other affiliates | 12,917,000 | 12,842,000 | ||||||||
Receivables from affiliates | 4,017,000 | 3,745,000 | ||||||||
Secured notes receivable | 4,091,000 | 3,155,000 | ||||||||
Other liabilities | 278,330,000 | 245,801,000 | ||||||||
Inventory | 1,173,585,000 | 1,013,272,000 | ||||||||
Charges to equity | 25,276,000 | [1] | ||||||||
Deferred gain on inventory purchased from unconsolidated joint venture | 901,000 | 0 | 0 | |||||||
General and administrative expenses | 54,921,000 | 50,080,000 | 43,747,000 | |||||||
Northern California | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Other liabilities | 19,600,000 | |||||||||
Inventory | 4,400,000 | |||||||||
Net liabilities assumed | 1,300,000 | |||||||||
Revenue participation payments, gross revenues from home closing percentage | 11.00% | |||||||||
Charges to equity | 25,300,000 | |||||||||
Percentage of ownership interest | 33.00% | |||||||||
Acquisition of land area | 70 | |||||||||
Land lots acquired | 2,700,000 | |||||||||
Description of additional lots to be acquired | Option to purchase 262 lots in seven phases through 2019, | |||||||||
Remaining purchase price of cash deposits | 18,500,000 | |||||||||
Deferred gain on inventory purchased from unconsolidated joint venture | 901,000 | |||||||||
Northern California | Acquired an option to pay | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Acquisition of land area | 262 | |||||||||
Southern California | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Sale of land to affiliates | 1,000,000 | |||||||||
Net sales proceeds recorded as an equity contribution | 900,000 | |||||||||
Affiliates Receivables and Payables | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Payables to affiliates | 4,800,000 | 100,000 | ||||||||
Affiliates Receivables and Payables | Other | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Note receivables from affiliates | 2,400,000 | 6,000,000 | ||||||||
Reserves for notes receivable from other affiliates | 12,900,000 | 12,800,000 | ||||||||
Notes receivable, maturity periods | August 2016 through March 2019 | |||||||||
Accrued interest monthly based on Prime less | 0.75% | 0.75% | ||||||||
Affiliates Receivables and Payables | Minimum | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Bearing interest from notes receivable | 2.50% | 2.50% | ||||||||
Affiliates Receivables and Payables | Maximum | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Bearing interest from notes receivable | 4.20% | 4.25% | ||||||||
Non Interest Bearing | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Receivables from affiliates | 4,000,000 | 3,700,000 | ||||||||
General and Administrative Affiliates Transactions | Other Real Property and Joint Venture Transactions | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
General and administrative expenses | 11,400,000 | 8,000,000 | 4,300,000 | |||||||
Management fees | 1,100,000 | 500,000 | 200,000 | |||||||
Number of unconsolidated joint ventures | 13 | 10 | ||||||||
Affiliated Entity | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Amounts paid to affiliates for insurance coverage | 21,300,000 | 14,100,000 | 13,100,000 | |||||||
Real Property and Joint Venture Transactions | Other Real Property and Joint Venture Transactions | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Sale of land to affiliates | 4,600,000 | |||||||||
Net sales proceeds recorded as an equity contribution | 2,400,000 | |||||||||
Real Property and Joint Venture Transactions | Redemption or Purchase of Interest in Joint Venture | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Reduction in equity | 39,800,000 | |||||||||
Reduction in equity of non-controlling interest | 28,200,000 | |||||||||
SHLP | Real Property and Joint Venture Transactions | Redemption or Purchase of Interest in Joint Venture | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Ownership interest | 58.00% | |||||||||
Estimated fair value assets received | 30,800,000 | |||||||||
Distributed assets and liabilities | 24,000,000 | |||||||||
Cash from distribution | 2,200,000 | |||||||||
Secured notes receivable | 3,000,000 | |||||||||
Inventory | 20,000,000 | |||||||||
Other liabilities | 1,200,000 | |||||||||
Reduction in equity | 11,600,000 | |||||||||
SCLLC | Real Property and Joint Venture Transactions | Redemption or Purchase of Interest in Joint Venture | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Reduction in assets | 41,800,000 | |||||||||
Reduction in liabilities | 2,000,000 | |||||||||
JFSCI | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Ownership interest | 96.00% | |||||||||
JFSCI | Affiliates Receivables and Payables | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Convertible notes receivable | 38,900,000 | |||||||||
Bearing interest from notes receivable | 4.00% | |||||||||
Receivable maturity date | 15-May-19 | |||||||||
Prepayment on notes | 3,800,000 | |||||||||
JFSCI | General and Administrative Affiliates Transactions | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
General and administrative expenses | $23,300,000 | $20,300,000 | $18,100,000 | |||||||
[1] | In 2014, the Company acquired property from an affiliate under common control for $4.4 million of cash, assumption of a $1.3 million net liability, and estimated future revenue participation payments of $19.6 million. The $25.3 million of consideration was recorded as a distribution to owners. |
Components_of_Income_Tax_Benef
Components of Income Tax Benefit (Expense) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Federal | ($19,361) | $0 | $0 |
State | -3,673 | -1,766 | -78 |
Total current | -23,034 | -1,766 | -78 |
Deferred: | |||
Federal | 4,577 | 13,385 | -532 |
State | 244 | 2,482 | -6 |
Total deferred | 4,821 | 15,867 | -538 |
Total income tax benefit (expense) | ($18,213) | $14,101 | ($616) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2009 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2001 | |
Income Taxes [Line Items] | |||||||
Federal statutory rate | 35.00% | 35.00% | 35.00% | ||||
Net operating loss carryforward | $4,961,000 | $7,696,000 | |||||
Deferred tax asset, net | 20,159,000 | 16,337,000 | |||||
Deferred tax asset change in valuation allowance charged to income statement | 0 | 15,630,000 | 0 | ||||
Initial Maximum CCM Payment | 70,000,000 | ||||||
Maximum | |||||||
Income Taxes [Line Items] | |||||||
Amount company could be obligated to pay | 13,500,000 | ||||||
Reduction in the income tax liabilities | -13,500,000 | ||||||
SHI | |||||||
Income Taxes [Line Items] | |||||||
Net operating loss carryforward | 14,200,000 | ||||||
Net operating loss carryforward expiration year | 2018 | ||||||
Net operating loss carryforward annual limitation | 4,600,000 | 4,600,000 | |||||
Deferred tax asset, net | 32,700,000 | 51,900,000 | 38,200,000 | 48,800,000 | |||
Deferred tax asset change in valuation allowance charged to income statement | 15,600,000 | 32,700,000 | |||||
SHI | Maximum | |||||||
Income Taxes [Line Items] | |||||||
Amount company could be obligated to pay | 74,000,000 | ||||||
SHLP | Maximum | |||||||
Income Taxes [Line Items] | |||||||
Amount company could be obligated to pay | $134,000,000 |
Effective_Tax_Rate_Differed_fr
Effective Tax Rate Differed from 35% Federal Statutory Rate (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Reconciliation of Statutory Federal Tax Rate [Line Items] | ||||||
Income before income taxes | $151,612 | $111,838 | $29,800 | |||
Income tax expense computed at statutory rate | -53,064 | -39,143 | -10,430 | |||
Non-taxable entities income | 35,893 | [1] | 25,275 | [1] | 7,134 | [1] |
State taxes, net of federal income tax benefit | -2,603 | -1,901 | -1,045 | |||
Small insurance company election (831b) | 1,057 | 198 | -2,583 | |||
Section 199 deduction | 1,313 | 875 | 0 | |||
Change in valuation allowance for deferred tax assets | 247 | 32,223 | 5,461 | |||
Other, net | -1,056 | -3,426 | 847 | |||
Total income tax benefit (expense) | ($18,213) | $14,101 | ($616) | |||
Effective tax rate | 12.00% | -12.60% | 2.10% | |||
[1] | Non-taxable entities represent income or loss related to SHLP, non-controlling interests and consolidated limited partnerships and limited liability companies in which the taxable income or loss is reflected on the respective partners' tax return. |
Tax_Effects_of_Temporary_Diffe
Tax Effects of Temporary Differences Rise to Significant Portion of Deferred Taxes (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Housing and land inventory basis differences | $14,214 | $8,746 |
Available loss carryforwards | 4,961 | 7,696 |
Impairment of inventory and investments | 482 | 782 |
Other | 1,399 | 1,166 |
Total deferred tax assets | 21,056 | 18,390 |
Deferred tax liabilities | ||
Income recognition | -635 | -1,544 |
Total deferred tax liabilities | -635 | -1,544 |
Subtotal | 20,421 | 16,846 |
Valuation allowance | -262 | -509 |
Net deferred tax assets | $20,159 | $16,337 |
Owners_Equity_Additional_Infor
Owners' Equity - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 06, 2013 |
In Millions, unless otherwise specified | ||||
Series B Preferred Stock | ||||
Stockholders Equity Note [Line Items] | ||||
Interest rate determination | 2.05% | |||
Preferred return percentage earned on unreturned preferred capital | 1.20% | |||
Accumulated undistributed preferred returns | $24.60 | $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% | |||
Preferred return percentage earned on unreturned preferred capital | 7.00% | |||
Accumulated undistributed preferred returns | $60.40 | $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% |
Recovered_Sheet1
Retirement Savings And Deferred Compensation Plans - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 03, 2014 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Percentage of deferred based salary | 80.00% | |||
Percentage of sales commission | 80.00% | |||
Percentage of deferred bonus | 100.00% | |||
Deferred Compensation Arrangement Employer Contribution | $0 | $0 | $0 | |
Accrued Expenses | 6,500,000 | 4,200,000 | ||
401 (K) | ||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Percentage of additional contribution based on employee salary | 3.00% | |||
Defined contribution plan employer matching contribution | 900,000 | 500,000 | 500,000 | |
Contributions to profit sharing retirement plan | $1,100,000 | $900,000 | $0 | |
Percentage of employer profit sharing contribution based on employee salary | 3.00% | |||
Description of matching 401(k) contributions | 50 cents on each dollar | |||
401 (K) | Maximum | ||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Percentage of employer contribution based on employee salary | 6.00% | |||
2012 Grant | ||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Grant provides for issuance | 1,021,947 | |||
Deferred restricted common unit price per unit | $10 | |||
Grant vesting period | 4 years | |||
Grant vesting date | 2016-03 | |||
2013 Grant | ||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Grant provides for issuance | 463,388 | |||
Deferred restricted common unit price per unit | $10.60 | |||
Grant vesting period | 4 years | |||
Grant vesting date | 2017-03 | |||
2014 Grant | ||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Grant provides for issuance | 381,909 | |||
Deferred restricted common unit price per unit | $14.79 | |||
Grant vesting period | 4 years | |||
Grant vesting date | 2018-03 |
Contingent_Liabilities_And_Com
Contingent Liabilities And Commitments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commitment And Contingencies [Line Items] | ||
Water system connection rights purchase obligation | $27,352 | $30,506 |
Total unrecorded contingent liabilities and commitments | 232,904 | 241,951 |
Partner Notes Payable | ||
Commitment And Contingencies [Line Items] | ||
Guarantee obligations | 34,199 | 28,684 |
Unconsolidated Joint Ventures | ||
Commitment And Contingencies [Line Items] | ||
Exposure of surety bonds in connection with development of projects | 22,700 | 22,800 |
Third Parties | ||
Commitment And Contingencies [Line Items] | ||
Lease payment obligations | 4,612 | 4,539 |
Affiliates | ||
Commitment And Contingencies [Line Items] | ||
Lease payment obligations | 5,059 | 6,487 |
Tax Court Member | ||
Commitment And Contingencies [Line Items] | ||
Guarantee obligations | 70,000 | 70,000 |
Surety Bonds | Company | ||
Commitment And Contingencies [Line Items] | ||
Exposure of surety bonds in connection with development of projects | 66,836 | 77,276 |
Surety Bonds | Unconsolidated Joint Ventures | ||
Commitment And Contingencies [Line Items] | ||
Exposure of surety bonds in connection with development of projects | 22,694 | 22,845 |
Surety Bonds | Affiliated Entity | ||
Commitment And Contingencies [Line Items] | ||
Exposure of surety bonds in connection with development of projects | $2,152 | $1,614 |
Contingent_Liabilities_And_Com1
Contingent Liabilities And Commitments (Parenthetical) (Detail) (USD $) | Dec. 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 $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 10-May-11 | Feb. 28, 2014 | |
Commitments and Contingencies Disclosure [Line Items] | |||||
Legal reserves | $15,705,000 | $4,576,000 | |||
Letters of credit, borrowing capacity | 75,000,000 | ||||
Water system connection rights purchase obligation | 27,352,000 | 30,506,000 | |||
Rental expense | 1,700,000 | 1,700,000 | 1,400,000 | ||
Affiliates Operating Lease | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Rental expense | 700,000 | 400,000 | 600,000 | ||
Office Leases | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Office leases, renewal option term | 5 years | ||||
Office Leases | Affiliates Operating Lease | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Office leases, renewal option term | 5 years | ||||
Colorado | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Water system connection rights purchase obligation | 27,400,000 | 30,500,000 | |||
Related Parties | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Exposure of surety bonds in connection with development of projects | 2,200,000 | 1,600,000 | |||
Bonds issued for development of projects | 3,500,000 | 4,900,000 | |||
Maximum | Office Leases | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Lease term | 10 years | ||||
Maximum | Office Leases | Affiliates Operating Lease | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Lease term | 10 years | ||||
Maximum | Equipment | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Lease term | 4 years | ||||
Minimum | Equipment | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Lease term | 3 years | ||||
Credit Support Agreement | Colorado | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Reimbursements | 10,900,000 | 8,600,000 | |||
Funding Arrangements | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Reimbursements | 14,000,000 | 13,100,000 | |||
Funding Arrangements | Colorado | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Reimbursements | 12,800,000 | 11,900,000 | |||
Unconsolidated Joint Ventures | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Exposure of surety bonds in connection with development of projects | 22,700,000 | 22,800,000 | |||
Bonds issued for development of projects | 63,200,000 | 63,700,000 | |||
Homebuilding Operations | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Exposure of surety bonds in connection with development of projects | 66,800,000 | 77,300,000 | |||
Bonds issued for development of projects | 146,500,000 | 169,700,000 | |||
Sub Limit For Letters Of Credit | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Letters of credit, borrowing capacity | 62,500,000 | ||||
Letter of Credit | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Letter of credit outstanding amount | 0 | ||||
Revolving Credit Facility | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Letters of credit, borrowing capacity | 75,000,000 | ||||
Letter of credit outstanding amount | 0 | ||||
Before Amendment | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Number of homes with alleged construction defects | 589 | ||||
After Amendment | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Number of homes with alleged construction defects | 964 | ||||
Litigation Matters | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Legal reserves | 13,300,000 | ||||
Additional obligation for settlement | $9,700,000 |
Future_Minimum_Rental_Payments
Future Minimum Rental Payments Under Operating Leases (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Future Minimum Payments Under Non-Cancelable Operating Leases With Initial Terms Of One-Year Or More [Line Items] | |
2015 | $982 |
2016 | 931 |
2017 | 802 |
2018 | 743 |
2019 and thereafter | 1,154 |
Total | 4,612 |
Affiliates Operating Lease | |
Future Minimum Payments Under Non-Cancelable Operating Leases With Initial Terms Of One-Year Or More [Line Items] | |
2015 | 1,311 |
2016 | 619 |
2017 | 366 |
2018 | 383 |
2019 and thereafter | 2,380 |
Total | $5,059 |
Supplemental_Disclosures_to_Co
Supplemental Disclosures to Consolidated Statements of Cash Flows (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Supplemental disclosure of cash flow information | |||
Income taxes paid (refunded) | $20,300 | $1,181 | ($3,891) |
Interest paid, net of amounts capitalized | 584 | 4,946 | 19,225 |
Supplemental disclosure of noncash activities | |||
Unrealized gain (loss) on available-for-sale investments, net | 318 | 271 | -1,875 |
Reclassification of Deficit Distributions to (from) unconsolidated joint ventures from (to) other liabilities | 45 | -365 | 212 |
Purchase of land in exchange for note payable | 13,004 | 4,379 | 8,982 |
Contribution of inventory to unconsolidated joint venture | 9,468 | 4,082 | 0 |
Deferred gain on inventory purchased from unconsolidated joint venture | 901 | 0 | 0 |
Distribution to Owners for assumption of liability and revenue participation payments for land purchased from an affiliate under common control | -20,891 | 0 | 0 |
Elimination of consolidated joint venture inventory, receivables from affiliates and other assets | 0 | 0 | -41,600 |
Elimination of consolidated joint venture note payable and other liabilities | 0 | 0 | -1,949 |
Redemption of Company's interest in consolidated joint venture and elimination of non-controlling interest, less cash retained by non-controlling interest | $0 | $0 | ($39,651) |
Financial_Information_for_Repo
Financial Information for Reportable Segments - Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Assets | $1,666,710 | $1,505,333 |
Homebuilding | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,388,603 | 1,240,416 |
Homebuilding | Southern California | ||
Segment Reporting Information [Line Items] | ||
Assets | 370,522 | 316,339 |
Homebuilding | San Diego | ||
Segment Reporting Information [Line Items] | ||
Assets | 149,748 | 160,593 |
Homebuilding | Northern California | ||
Segment Reporting Information [Line Items] | ||
Assets | 295,247 | 286,513 |
Homebuilding | Mountain West | ||
Segment Reporting Information [Line Items] | ||
Assets | 355,936 | 316,459 |
Homebuilding | South West | ||
Segment Reporting Information [Line Items] | ||
Assets | 192,359 | 155,416 |
Homebuilding | East | ||
Segment Reporting Information [Line Items] | ||
Assets | 24,791 | 5,096 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Assets | $278,107 | $264,917 |
Financial_Information_for_Repo1
Financial Information for Reportable Segments - Inventory (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2014 |
In Thousands, unless otherwise specified | |||
Segment Reporting Information [Line Items] | |||
Inventory | $1,173,585 | $1,013,272 | |
Northern California | |||
Segment Reporting Information [Line Items] | |||
Inventory | 4,400 | ||
Homebuilding | Southern California | |||
Segment Reporting Information [Line Items] | |||
Inventory | 305,770 | 239,986 | |
Homebuilding | San Diego | |||
Segment Reporting Information [Line Items] | |||
Inventory | 128,241 | 142,395 | |
Homebuilding | Northern California | |||
Segment Reporting Information [Line Items] | |||
Inventory | 259,997 | 249,111 | |
Homebuilding | Mountain West | |||
Segment Reporting Information [Line Items] | |||
Inventory | 301,364 | 247,294 | |
Homebuilding | South West | |||
Segment Reporting Information [Line Items] | |||
Inventory | 156,716 | 132,484 | |
Homebuilding | East | |||
Segment Reporting Information [Line Items] | |||
Inventory | $21,497 | $2,002 |
Financial_Information_for_Repo2
Financial Information for Reportable Segments - Revenues (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $419,919 | $284,489 | $256,083 | $180,115 | $340,031 | $238,309 | $217,310 | $134,960 | $1,140,606 | $930,610 | $680,147 |
Homebuilding | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,140,025 | 929,697 | 679,162 | ||||||||
Homebuilding | Southern California | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 393,480 | 207,650 | 133,990 | ||||||||
Homebuilding | San Diego | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 143,234 | 125,494 | 85,971 | ||||||||
Homebuilding | Northern California | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 259,364 | 242,356 | 166,106 | ||||||||
Homebuilding | Mountain West | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 175,665 | 186,899 | 147,784 | ||||||||
Homebuilding | South West | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 168,282 | 160,744 | 138,161 | ||||||||
Homebuilding | East | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 6,554 | 7,150 | ||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $581 | $913 | $985 |
Financial_Information_Relating
Financial Information Relating to Reportable Segments - Income (Loss) Before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Income (loss) before income taxes | $151,612 | $111,838 | $29,800 |
Homebuilding | |||
Segment Reporting Information [Line Items] | |||
Income (loss) before income taxes | 146,024 | 110,071 | 32,409 |
Homebuilding | Southern California | |||
Segment Reporting Information [Line Items] | |||
Income (loss) before income taxes | 82,029 | 44,236 | 12,843 |
Homebuilding | San Diego | |||
Segment Reporting Information [Line Items] | |||
Income (loss) before income taxes | 22,288 | 7,717 | 2,493 |
Homebuilding | Northern California | |||
Segment Reporting Information [Line Items] | |||
Income (loss) before income taxes | 51,219 | 40,648 | 19,292 |
Homebuilding | Mountain West | |||
Segment Reporting Information [Line Items] | |||
Income (loss) before income taxes | -4,982 | 9,463 | 156 |
Homebuilding | South West | |||
Segment Reporting Information [Line Items] | |||
Income (loss) before income taxes | -1,498 | 8,356 | -2,173 |
Homebuilding | East | |||
Segment Reporting Information [Line Items] | |||
Income (loss) before income taxes | -3,032 | -349 | -202 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Income (loss) before income taxes | $5,588 | $1,767 | ($2,609) |
Financial_Information_Relating1
Financial Information Relating to Segments - Impairment (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Disclosure [Line Items] | |||
Inventory impairment | $9,035 | $0 | $0 |
Homebuilding | Southern California | |||
Segment Reporting Disclosure [Line Items] | |||
Inventory impairment | 284 | 0 | 0 |
Homebuilding | San Diego | |||
Segment Reporting Disclosure [Line Items] | |||
Inventory impairment | 0 | 0 | 0 |
Homebuilding | Northern California | |||
Segment Reporting Disclosure [Line Items] | |||
Inventory impairment | 0 | 0 | 0 |
Homebuilding | Mountain West | |||
Segment Reporting Disclosure [Line Items] | |||
Inventory impairment | 0 | 0 | 0 |
Homebuilding | South West | |||
Segment Reporting Disclosure [Line Items] | |||
Inventory impairment | 8,751 | 0 | 0 |
Homebuilding | East | |||
Segment Reporting Disclosure [Line Items] | |||
Inventory impairment | $0 | $0 | $0 |
Recovered_Sheet2
Results Of Quarterly Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Results Of Operations [Line Items] | |||||||||||
Revenues | $419,919 | $284,489 | $256,083 | $180,115 | $340,031 | $238,309 | $217,310 | $134,960 | $1,140,606 | $930,610 | $680,147 |
Gross margin | 82,564 | 67,894 | 60,273 | 44,857 | 85,388 | 55,848 | 48,426 | 31,536 | 255,588 | 221,198 | 141,713 |
Net income | 59,670 | 33,731 | 28,703 | 11,295 | 73,744 | 25,826 | 19,532 | 6,837 | 133,399 | 125,939 | 29,184 |
Net income attributable to SHLP | $59,682 | $33,749 | $28,707 | $11,298 | $73,751 | $25,824 | $19,534 | $6,838 | $133,436 | $125,947 | $29,038 |
Condensed_Consolidating_Balanc
Condensed Consolidating Balance Sheet (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
In Thousands, unless otherwise specified | ||||||||
Assets | ||||||||
Cash and cash equivalents | $236,902 | $206,205 | $279,756 | $268,366 | ||||
Restricted cash | 426 | 1,189 | ||||||
Accounts and other receivables, net | 147,508 | 147,499 | ||||||
Receivables from affiliates, net | 6,403 | 31,313 | ||||||
Inventory | 1,173,585 | 1,013,272 | ||||||
Investments in and advances to unconsolidated joint ventures | 42,764 | 48,785 | ||||||
Investments in subsidiaries | 0 | 0 | ||||||
Other assets, net | 59,122 | 57,070 | ||||||
Intercompany | 0 | 0 | ||||||
Total assets | 1,666,710 | 1,505,333 | ||||||
Liabilities: | ||||||||
Notes payable | 761,404 | 751,708 | ||||||
Payables to affiliates | 4,797 | 21 | ||||||
Accounts payable | 67,321 | 62,346 | ||||||
Other liabilities | 278,330 | 245,801 | ||||||
Intercompany | 0 | 0 | ||||||
Total liabilities | 1,111,852 | 1,059,876 | ||||||
SHLP equity: | ||||||||
Owners' equity | 549,373 | 440,268 | ||||||
Accumulated other comprehensive income | 5,106 | 4,788 | ||||||
Total SHLP equity | 554,479 | 445,056 | ||||||
Non-controlling interests | 379 | 401 | ||||||
Total equity | 554,858 | 445,457 | 319,247 | 328,003 | ||||
Total liabilities and equity | 1,666,710 | 1,505,333 | ||||||
SHLP Corp | ||||||||
Assets | ||||||||
Cash and cash equivalents | 135,804 | [1],[2] | 153,794 | [1],[3],[4] | 216,914 | [3],[5] | 157,511 | [5] |
Restricted cash | 259 | [2] | 695 | [4] | ||||
Accounts and other receivables, net | 120,135 | [2] | 120,299 | [4] | ||||
Receivables from affiliates, net | 6,369 | [2] | 9,251 | [4] | ||||
Inventory | 993,507 | [2] | 749,832 | [4] | ||||
Investments in and advances to unconsolidated joint ventures | 25,343 | [2] | 22,068 | [4] | ||||
Investments in subsidiaries | 786,462 | [2] | 748,326 | [4] | ||||
Other assets, net | 22,298 | [2] | 24,030 | [4] | ||||
Intercompany | 0 | [2] | 0 | [4] | ||||
Total assets | 2,090,177 | [2] | 1,828,295 | [4] | ||||
Liabilities: | ||||||||
Notes payable | 761,404 | [2] | 751,708 | [4] | ||||
Payables to affiliates | 20 | [2] | 20 | [4] | ||||
Accounts payable | 51,663 | [2] | 36,594 | [4] | ||||
Other liabilities | 176,160 | [2] | 171,470 | [4] | ||||
Intercompany | 546,451 | [2] | 423,447 | [4] | ||||
Total liabilities | 1,535,698 | [2] | 1,383,239 | [4] | ||||
SHLP equity: | ||||||||
Owners' equity | 549,373 | [2] | 440,268 | [4] | ||||
Accumulated other comprehensive income | 5,106 | [2] | 4,788 | [4] | ||||
Total SHLP equity | 554,479 | [2] | 445,056 | [4] | ||||
Non-controlling interests | 0 | [2] | 0 | [4] | ||||
Total equity | 554,479 | [2] | 445,056 | [4] | ||||
Total liabilities and equity | 2,090,177 | [2] | 1,828,295 | [4] | ||||
Guarantor Subsidiaries | ||||||||
Assets | ||||||||
Cash and cash equivalents | 93,386 | 43,803 | 48,895 | 96,100 | ||||
Restricted cash | 113 | 354 | ||||||
Accounts and other receivables, net | 27,193 | 26,754 | ||||||
Receivables from affiliates, net | 14 | 21,761 | ||||||
Inventory | 178,859 | 263,213 | ||||||
Investments in and advances to unconsolidated joint ventures | 1,619 | 1,357 | ||||||
Investments in subsidiaries | 81,447 | 69,755 | ||||||
Other assets, net | 36,690 | 32,957 | ||||||
Intercompany | 572,036 | 465,706 | ||||||
Total assets | 991,357 | 925,660 | ||||||
Liabilities: | ||||||||
Notes payable | 0 | 0 | ||||||
Payables to affiliates | 0 | 0 | ||||||
Accounts payable | 15,344 | 25,334 | ||||||
Other liabilities | 77,701 | 41,370 | ||||||
Intercompany | 0 | 0 | ||||||
Total liabilities | 93,045 | 66,704 | ||||||
SHLP equity: | ||||||||
Owners' equity | 893,206 | 854,168 | ||||||
Accumulated other comprehensive income | 5,106 | 4,788 | ||||||
Total SHLP equity | 898,312 | 858,956 | ||||||
Non-controlling interests | 0 | 0 | ||||||
Total equity | 898,312 | 858,956 | ||||||
Total liabilities and equity | 991,357 | 925,660 | ||||||
Non-Guarantor Subsidiaries | ||||||||
Assets | ||||||||
Cash and cash equivalents | 7,712 | 8,608 | 13,947 | 14,755 | ||||
Restricted cash | 54 | 140 | ||||||
Accounts and other receivables, net | 16,616 | 28,696 | ||||||
Receivables from affiliates, net | 20 | 25 | ||||||
Inventory | 4,353 | 3,361 | ||||||
Investments in and advances to unconsolidated joint ventures | 15,802 | 25,360 | ||||||
Investments in subsidiaries | 86,721 | 90,484 | ||||||
Other assets, net | 134 | 83 | ||||||
Intercompany | 0 | 0 | ||||||
Total assets | 131,412 | 156,757 | ||||||
Liabilities: | ||||||||
Notes payable | 0 | 0 | ||||||
Payables to affiliates | 3 | 1 | ||||||
Accounts payable | 314 | 418 | ||||||
Other liabilities | 40,904 | 61,211 | ||||||
Intercompany | 33,494 | 45,117 | ||||||
Total liabilities | 74,715 | 106,747 | ||||||
SHLP equity: | ||||||||
Owners' equity | 56,318 | 49,609 | ||||||
Accumulated other comprehensive income | 0 | 0 | ||||||
Total SHLP equity | 56,318 | 49,609 | ||||||
Non-controlling interests | 379 | 401 | ||||||
Total equity | 56,697 | 50,010 | ||||||
Total liabilities and equity | 131,412 | 156,757 | ||||||
Consolidation, Eliminations | ||||||||
Assets | ||||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | ||||
Restricted cash | 0 | 0 | ||||||
Accounts and other receivables, net | -16,436 | -28,250 | ||||||
Receivables from affiliates, net | 0 | 276 | ||||||
Inventory | -3,134 | -3,134 | ||||||
Investments in and advances to unconsolidated joint ventures | 0 | 0 | ||||||
Investments in subsidiaries | -954,630 | -908,565 | ||||||
Other assets, net | 0 | 0 | ||||||
Intercompany | -572,036 | -465,706 | ||||||
Total assets | -1,546,236 | -1,405,379 | ||||||
Liabilities: | ||||||||
Notes payable | 0 | 0 | ||||||
Payables to affiliates | 4,774 | 0 | ||||||
Accounts payable | 0 | 0 | ||||||
Other liabilities | -16,435 | -28,250 | ||||||
Intercompany | -579,945 | -468,564 | ||||||
Total liabilities | -591,606 | -496,814 | ||||||
SHLP equity: | ||||||||
Owners' equity | -949,524 | -903,777 | ||||||
Accumulated other comprehensive income | -5,106 | -4,788 | ||||||
Total SHLP equity | -954,630 | -908,565 | ||||||
Non-controlling interests | 0 | 0 | ||||||
Total equity | -954,630 | -908,565 | ||||||
Total liabilities and equity | ($1,546,236) | ($1,405,379) | ||||||
[1] | Includes Shea Homes Funding Corp., whose cash flows for the year ended December 31, 2014 were not material. | |||||||
[2] | Includes Shea Homes Funding Corp., whose financial position at December 31, 2014 was not material. | |||||||
[3] | Includes Shea Homes Funding Corp., whose cash flows for the year ended December 31, 2013 were not material. | |||||||
[4] | Includes Shea Homes Funding Corp., whose financial position at December 31, 2013 was not material. | |||||||
[5] | Includes Shea Homes Funding Corp., whose cash flows for the year ended December 31, 2012 were not material. |
Condensed_Consolidating_Statem
Condensed Consolidating Statement of Income and Comprehensive Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Revenues | $419,919 | $284,489 | $256,083 | $180,115 | $340,031 | $238,309 | $217,310 | $134,960 | $1,140,606 | $930,610 | $680,147 | |||
Cost of sales | -885,018 | -709,412 | -538,434 | |||||||||||
Gross margin | 82,564 | 67,894 | 60,273 | 44,857 | 85,388 | 55,848 | 48,426 | 31,536 | 255,588 | 221,198 | 141,713 | |||
Selling expenses | -63,429 | -54,338 | -45,788 | |||||||||||
General and administrative expenses | -54,921 | -50,080 | -43,747 | |||||||||||
Equity in income (loss) from unconsolidated joint ventures | 9,142 | -1,104 | 378 | |||||||||||
Equity in income (loss) from subsidiaries | 0 | 0 | 0 | |||||||||||
Gain on reinsurance | 7,177 | 2,011 | -12,013 | |||||||||||
Interest expense | -595 | [1] | -5,071 | [1] | -19,862 | [1] | ||||||||
Other income (expense), net | -1,350 | -778 | 9,119 | |||||||||||
Income (loss) before income taxes | 151,612 | 111,838 | 29,800 | |||||||||||
Income tax benefit (expense) | -18,213 | 14,101 | -616 | |||||||||||
Net income | 59,670 | 33,731 | 28,703 | 11,295 | 73,744 | 25,826 | 19,532 | 6,837 | 133,399 | 125,939 | 29,184 | |||
Less: Net income attributable to non-controlling interests | 37 | 8 | -146 | |||||||||||
Net income (loss) attributable to SHLP | 59,682 | 33,749 | 28,707 | 11,298 | 73,751 | 25,824 | 19,534 | 6,838 | 133,436 | 125,947 | 29,038 | |||
Comprehensive income | 133,717 | 126,210 | 27,309 | |||||||||||
SHLP Corp | ||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Revenues | 680,109 | [2] | 505,510 | [3] | 470,756 | [4] | ||||||||
Cost of sales | -545,442 | [2] | -406,563 | [3] | -372,576 | [4] | ||||||||
Gross margin | 134,667 | [2] | 98,947 | [3] | 98,180 | [4] | ||||||||
Selling expenses | -38,268 | [2] | -28,925 | [3] | -26,836 | [4] | ||||||||
General and administrative expenses | -37,444 | [2] | -34,936 | [3] | -30,560 | [4] | ||||||||
Equity in income (loss) from unconsolidated joint ventures | -4,000 | [2] | -2,020 | [3] | -338 | [4] | ||||||||
Equity in income (loss) from subsidiaries | 85,794 | [2] | 100,821 | [3] | 11,334 | [4] | ||||||||
Gain on reinsurance | 0 | [2] | 0 | [3] | 0 | [4] | ||||||||
Interest expense | -595 | [2] | -3,658 | [3] | -17,326 | [4] | ||||||||
Other income (expense), net | -6,709 | [2] | -4,280 | [3] | -5,411 | [4] | ||||||||
Income (loss) before income taxes | 133,445 | [2] | 125,949 | [3] | 29,043 | [4] | ||||||||
Income tax benefit (expense) | -9 | [2] | -2 | [3] | -5 | [4] | ||||||||
Net income | 133,436 | [2] | 125,947 | [3] | 29,038 | [4] | ||||||||
Less: Net income attributable to non-controlling interests | 0 | [2] | 0 | [3] | 0 | [4] | ||||||||
Net income (loss) attributable to SHLP | 133,436 | [2] | 125,947 | [3] | 29,038 | [4] | ||||||||
Comprehensive income | 133,754 | [2] | 126,218 | [3] | 27,163 | [4] | ||||||||
Guarantor Subsidiaries | ||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Revenues | 444,229 | 404,393 | 200,329 | |||||||||||
Cost of sales | -338,185 | -302,081 | -164,992 | |||||||||||
Gross margin | 106,044 | 102,312 | 35,337 | |||||||||||
Selling expenses | -17,899 | -18,847 | -13,531 | |||||||||||
General and administrative expenses | -14,979 | -12,294 | -10,500 | |||||||||||
Equity in income (loss) from unconsolidated joint ventures | 119 | -65 | -43 | |||||||||||
Equity in income (loss) from subsidiaries | 8,148 | -1,443 | -20,211 | |||||||||||
Gain on reinsurance | 0 | 0 | 0 | |||||||||||
Interest expense | 0 | -1,413 | -2,532 | |||||||||||
Other income (expense), net | 5,502 | 3,428 | 12,905 | |||||||||||
Income (loss) before income taxes | 86,935 | 71,678 | 1,425 | |||||||||||
Income tax benefit (expense) | -18,183 | 14,112 | -601 | |||||||||||
Net income | 68,752 | 85,790 | 824 | |||||||||||
Less: Net income attributable to non-controlling interests | 0 | 0 | 0 | |||||||||||
Net income (loss) attributable to SHLP | 68,752 | 85,790 | 824 | |||||||||||
Comprehensive income | 69,070 | 86,061 | -1,051 | |||||||||||
Non-Guarantor Subsidiaries | ||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Revenues | 16,268 | 20,707 | 9,062 | |||||||||||
Cost of sales | -1,391 | -1,502 | -1,343 | |||||||||||
Gross margin | 14,877 | 19,205 | 7,719 | |||||||||||
Selling expenses | -7,262 | -6,566 | -5,421 | |||||||||||
General and administrative expenses | -2,498 | -2,850 | -2,687 | |||||||||||
Equity in income (loss) from unconsolidated joint ventures | 13,023 | 981 | 759 | |||||||||||
Equity in income (loss) from subsidiaries | 1,748 | -3,342 | -4,556 | |||||||||||
Gain on reinsurance | 7,177 | 2,011 | -12,013 | |||||||||||
Interest expense | 0 | 0 | -4 | |||||||||||
Other income (expense), net | -143 | 808 | 2,102 | |||||||||||
Income (loss) before income taxes | 26,922 | 10,247 | -14,101 | |||||||||||
Income tax benefit (expense) | -21 | -9 | -10 | |||||||||||
Net income | 26,901 | 10,238 | -14,111 | |||||||||||
Less: Net income attributable to non-controlling interests | 37 | 8 | -146 | |||||||||||
Net income (loss) attributable to SHLP | 26,938 | 10,246 | -14,257 | |||||||||||
Comprehensive income | 26,901 | 10,238 | -14,111 | |||||||||||
Consolidation, Eliminations | ||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Revenues | 0 | 0 | 0 | |||||||||||
Cost of sales | 0 | 734 | 477 | |||||||||||
Gross margin | 0 | 734 | 477 | |||||||||||
Selling expenses | 0 | 0 | 0 | |||||||||||
General and administrative expenses | 0 | 0 | 0 | |||||||||||
Equity in income (loss) from unconsolidated joint ventures | 0 | 0 | 0 | |||||||||||
Equity in income (loss) from subsidiaries | -95,690 | -96,036 | 13,433 | |||||||||||
Gain on reinsurance | 0 | 0 | 0 | |||||||||||
Interest expense | 0 | 0 | 0 | |||||||||||
Other income (expense), net | 0 | -734 | -477 | |||||||||||
Income (loss) before income taxes | -95,690 | -96,036 | 13,433 | |||||||||||
Income tax benefit (expense) | 0 | 0 | 0 | |||||||||||
Net income | -95,690 | -96,036 | 13,433 | |||||||||||
Less: Net income attributable to non-controlling interests | 0 | 0 | 0 | |||||||||||
Net income (loss) attributable to SHLP | -95,690 | -96,036 | 13,433 | |||||||||||
Comprehensive income | ($96,008) | ($96,307) | $15,308 | |||||||||||
[1] | For the eight months ended August 31, 2013 and for the year ended December 31, 2012, assets qualifying for interest capitalization were less than debt; therefore, non-qualifying interest was expensed. For the period from September 2013 to December 2014, qualifying assets exceeded debt; therefore, no interest on the Secured Notes (see Note 10) was expensed. 2014 interest expense represents fees charged on the unused Revolver (see Note 10) that is not considered a cost of borrowing and is not capitalized. | |||||||||||||
[2] | Includes Shea Homes Funding Corp., whose results of operations for the year ended December 31, 2014 was not material. | |||||||||||||
[3] | Includes Shea Homes Funding Corp., whose results of operations for the year ended December 31, 2013 was not material. | |||||||||||||
[4] | Includes Shea Homes Funding Corp., whose results of operations for the year ended December 31, 2012 was not material. |
Condensed_Consolidating_Statem1
Condensed Consolidating Statement of Cash Flows (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Operating activities | ||||||
Net cash provided by (used in) operating activities | $2,454 | ($47,867) | ($6,655) | |||
Investing activities | ||||||
Collections (advances) on promissory notes from affiliates | 25,183 | 4,104 | 1,881 | |||
Investments in and advances to unconsolidated joint ventures | -29,158 | -26,145 | -11,967 | |||
Distributions from unconsolidated joint ventures | 38,767 | 4,072 | 427 | |||
Proceeds from sale of available-for-sale investments | 184 | 3,165 | 26,547 | |||
Net cash provided by (used in) investing activities | 34,976 | -14,804 | 16,888 | |||
Financing activities | ||||||
Principal payments to financial institutions and others | -3,308 | -10,880 | -2,429 | |||
Distributions to owners | -4,385 | 0 | 0 | |||
Intercompany | 0 | 0 | 0 | |||
Other financing activities | 960 | 3,586 | ||||
Net cash provided by (used in) financing activities | -6,733 | -10,880 | 1,157 | |||
Net decrease in cash and cash equivalents | 30,697 | -73,551 | 11,390 | |||
Cash and cash equivalents at beginning of year | 206,205 | 279,756 | 268,366 | |||
Cash and cash equivalents at end of year | 236,902 | 206,205 | 279,756 | |||
SHLP Corp | ||||||
Operating activities | ||||||
Net cash provided by (used in) operating activities | -159,184 | [1] | -135,869 | [2] | 33,520 | [3] |
Investing activities | ||||||
Collections (advances) on promissory notes from affiliates | 3,595 | [1] | 1,192 | [2] | 1,142 | [3] |
Investments in and advances to unconsolidated joint ventures | -5,863 | [1] | -9,713 | [2] | -10,898 | [3] |
Distributions from unconsolidated joint ventures | 121 | [1] | 0 | [2] | 0 | [3] |
Proceeds from sale of available-for-sale investments | 0 | [1] | 0 | [2] | 0 | [3] |
Net cash provided by (used in) investing activities | -2,147 | [1] | -8,521 | [2] | -9,756 | [3] |
Financing activities | ||||||
Principal payments to financial institutions and others | -3,308 | [1] | -10,880 | [2] | -2,230 | [3] |
Distributions to owners | -4,385 | [1] | ||||
Intercompany | 150,089 | [1] | 92,150 | [2] | 35,517 | [3] |
Other financing activities | 945 | [1] | 2,352 | [3] | ||
Net cash provided by (used in) financing activities | 143,341 | [1] | 81,270 | [2] | 35,639 | [3] |
Net decrease in cash and cash equivalents | -17,990 | [1] | -63,120 | [2] | 59,403 | [3] |
Cash and cash equivalents at beginning of year | 153,794 | [1],[2],[4] | 216,914 | [2],[3] | 157,511 | [3] |
Cash and cash equivalents at end of year | 135,804 | [1],[5] | 153,794 | [1],[2],[4] | 216,914 | [2],[3] |
Guarantor Subsidiaries | ||||||
Operating activities | ||||||
Net cash provided by (used in) operating activities | 146,682 | 74,342 | -64,012 | |||
Investing activities | ||||||
Collections (advances) on promissory notes from affiliates | 21,588 | 2,912 | 882 | |||
Investments in and advances to unconsolidated joint ventures | -299 | -275 | -229 | |||
Distributions from unconsolidated joint ventures | 125 | 0 | 427 | |||
Proceeds from sale of available-for-sale investments | 184 | 3,165 | 26,547 | |||
Net cash provided by (used in) investing activities | 21,598 | 5,802 | 27,627 | |||
Financing activities | ||||||
Principal payments to financial institutions and others | 0 | 0 | 0 | |||
Distributions to owners | 0 | |||||
Intercompany | -118,697 | -85,236 | -10,820 | |||
Other financing activities | 0 | 0 | ||||
Net cash provided by (used in) financing activities | -118,697 | -85,236 | -10,820 | |||
Net decrease in cash and cash equivalents | 49,583 | -5,092 | -47,205 | |||
Cash and cash equivalents at beginning of year | 43,803 | 48,895 | 96,100 | |||
Cash and cash equivalents at end of year | 93,386 | 43,803 | 48,895 | |||
Non-Guarantor Subsidiaries | ||||||
Operating activities | ||||||
Net cash provided by (used in) operating activities | 9,905 | 10,901 | 25,506 | |||
Investing activities | ||||||
Collections (advances) on promissory notes from affiliates | 0 | 0 | -143 | |||
Investments in and advances to unconsolidated joint ventures | -22,996 | -16,157 | -840 | |||
Distributions from unconsolidated joint ventures | 38,521 | 4,072 | 0 | |||
Proceeds from sale of available-for-sale investments | 0 | 0 | 0 | |||
Net cash provided by (used in) investing activities | 15,525 | -12,085 | -983 | |||
Financing activities | ||||||
Principal payments to financial institutions and others | 0 | 0 | -199 | |||
Distributions to owners | 0 | |||||
Intercompany | -26,341 | -4,155 | -26,366 | |||
Other financing activities | 15 | 1,234 | ||||
Net cash provided by (used in) financing activities | -26,326 | -4,155 | -25,331 | |||
Net decrease in cash and cash equivalents | -896 | -5,339 | -808 | |||
Cash and cash equivalents at beginning of year | 8,608 | 13,947 | 14,755 | |||
Cash and cash equivalents at end of year | 7,712 | 8,608 | 13,947 | |||
Consolidation, Eliminations | ||||||
Operating activities | ||||||
Net cash provided by (used in) operating activities | 5,051 | 2,759 | -1,669 | |||
Investing activities | ||||||
Collections (advances) on promissory notes from affiliates | 0 | 0 | 0 | |||
Investments in and advances to unconsolidated joint ventures | 0 | 0 | 0 | |||
Distributions from unconsolidated joint ventures | 0 | 0 | 0 | |||
Proceeds from sale of available-for-sale investments | 0 | 0 | 0 | |||
Net cash provided by (used in) investing activities | 0 | 0 | 0 | |||
Financing activities | ||||||
Principal payments to financial institutions and others | 0 | 0 | 0 | |||
Distributions to owners | 0 | |||||
Intercompany | -5,051 | -2,759 | 1,669 | |||
Other financing activities | 0 | 0 | ||||
Net cash provided by (used in) financing activities | -5,051 | -2,759 | 1,669 | |||
Net decrease in cash and cash equivalents | 0 | 0 | 0 | |||
Cash and cash equivalents at beginning of year | 0 | 0 | 0 | |||
Cash and cash equivalents at end of year | $0 | $0 | $0 | |||
[1] | Includes Shea Homes Funding Corp., whose cash flows for the year ended December 31, 2014 were not material. | |||||
[2] | Includes Shea Homes Funding Corp., whose cash flows for the year ended December 31, 2013 were not material. | |||||
[3] | Includes Shea Homes Funding Corp., whose cash flows for the year ended December 31, 2012 were not material. | |||||
[4] | Includes Shea Homes Funding Corp., whose financial position at December 31, 2013 was not material. | |||||
[5] | Includes Shea Homes Funding Corp., whose financial position at December 31, 2014 was not material. |