LGI Homes (LGIH) 10-Q 31 Oct 23 2023 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2023	Oct. 27, 2023
Cover [Abstract]
Document Fiscal Year Focus	2023
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2023
Entity File Number	001-36126
Entity Registrant Name	LGI HOMES, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	46-3088013
Entity Address, Address Line One	1450 Lake Robbins Drive,
Entity Address, Address Line Two	Suite 430,
Entity Address, City or Town	The Woodlands,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77380
City Area Code	(281)
Local Phone Number	362-8998
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		23,563,868
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	LGIH
Security Exchange Name	NASDAQ
Entity Central Index Key	0001580670
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
ASSETS
Cash and cash equivalents	$ 46,981	$ 31,998
Accounts receivable	35,651	25,143
Real estate inventory	3,056,966	2,898,296
Pre-acquisition costs and deposits	34,661	25,031
Property and equipment, net	41,872	32,997
Other assets	97,238	93,159
Deferred tax assets, net	9,624	6,186
Goodwill	12,018	12,018
Total assets	3,335,011	3,124,828
LIABILITIES AND EQUITY
Accounts payable	67,289	25,287
Accrued expenses and other liabilities	274,681	340,128
Notes payable	1,190,366	1,117,001
Total liabilities	1,532,336	1,482,416
COMMITMENTS AND CONTINGENCIES
EQUITY
Common stock, par value $0.01, 250,000,000 shares authorized, 27,503,340 shares issued and 23,563,868 shares outstanding as of September 30, 2023 and 27,245,278 shares issued and 23,305,806 shares outstanding as of December 31, 2022	275	272
Additional paid-in capital	319,795	306,673
Retained earnings	1,837,627	1,690,489
Treasury stock, at cost, 3,939,472 shares as of September 30, 2023 and December 31, 2022	(355,022)	(355,022)
Total equity	1,802,675	1,642,412
Total liabilities and equity	$ 3,335,011	$ 3,124,828

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	250,000,000	250,000,000
Common Stock, Shares, Issued	27,503,340	27,245,278
Common Stock, Shares, Outstanding	23,563,868	23,305,806
Treasury Stock, Common, Shares	3,939,472

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Home sales revenues	$ 617,539	$ 547,074	$ 1,750,166	$ 1,816,193
Cost of sales	458,734	391,275	1,350,608	1,270,628
Selling expenses	49,781	33,938	141,811	111,605
General and administrative	26,748	27,284	84,334	84,657
Operating income	82,276	94,577	173,413	349,303
Other income, net	(7,173)	(14,124)	(19,793)	(21,960)
Net income before income taxes	89,449	108,701	193,206	371,263
Income tax provision	22,407	18,311	46,068	78,811
Net income	$ 67,042	$ 90,390	$ 147,138	$ 292,452
Earnings per share:
Basic (in dollars per share)	$ 2.85	$ 3.88	$ 6.24	$ 12.42
Diluted (in dollars per share)	$ 2.84	$ 3.85	$ 6.21	$ 12.29
Weighted average shares outstanding:
Basic (in shares)	23,546,061	23,272,811	23,562,374	23,552,211
Diluted (in shares)	23,640,686	23,488,325	23,696,095	23,805,086

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Treasury Stock
Beginning Balance (in shares) at Dec. 31, 2021		26,963,915
Beginning Balance at Dec. 31, 2021	$ 1,395,848	$ 269	$ 291,577	$ 1,363,922	$ (259,920)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	78,686			78,686
Restricted stock units granted for accrued annual bonuses	294		294
Stock repurchased during period	(57,659)				(57,659)
Compensation expense for equity awards	3,570		3,570
Stock issued under employee incentive plans (in shares)		223,980
Stock issued under employee incentive plans	2,012	$ 2	2,010
Ending Balance (in shares) at Mar. 31, 2022		27,187,895
Ending Balance at Mar. 31, 2022	1,422,751	$ 271	297,451	1,442,608	(317,579)
Beginning Balance (in shares) at Dec. 31, 2021		26,963,915
Beginning Balance at Dec. 31, 2021	1,395,848	$ 269	291,577	1,363,922	(259,920)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	292,452
Stock repurchased during period	(95,100)
Ending Balance (in shares) at Sep. 30, 2022		27,229,758
Ending Balance at Sep. 30, 2022	1,606,981	$ 272	305,357	1,656,374	(355,022)
Beginning Balance (in shares) at Mar. 31, 2022		27,187,895
Beginning Balance at Mar. 31, 2022	1,422,751	$ 271	297,451	1,442,608	(317,579)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	123,376			123,376
Stock repurchased during period	(37,443)				(37,443)
Compensation expense for equity awards	3,545		3,545
Stock issued under employee incentive plans (in shares)		24,213
Stock issued under employee incentive plans	1,692		1,692
Ending Balance (in shares) at Jun. 30, 2022		27,212,108
Ending Balance at Jun. 30, 2022	1,513,921	$ 271	302,688	1,565,984	(355,022)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	90,390			90,390
Compensation expense for equity awards	1,516		1,516
Stock issued under employee incentive plans (in shares)		17,650
Stock issued under employee incentive plans	1,154	$ 1	1,153
Ending Balance (in shares) at Sep. 30, 2022		27,229,758
Ending Balance at Sep. 30, 2022	1,606,981	$ 272	305,357	1,656,374	(355,022)
Beginning Balance (in shares) at Dec. 31, 2022		27,245,278
Beginning Balance at Dec. 31, 2022	1,642,412	$ 272	306,673	1,690,489	(355,022)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	26,962			26,962
Restricted stock units granted for accrued annual bonuses	206		206
Compensation expense for equity awards	3,103		3,103
Stock issued under employee incentive plans (in shares)		226,928
Stock issued under employee incentive plans	1,546	$ 3	1,543
Ending Balance (in shares) at Mar. 31, 2023		27,472,206
Ending Balance at Mar. 31, 2023	1,674,229	$ 275	311,525	1,717,451	(355,022)
Beginning Balance (in shares) at Dec. 31, 2022		27,245,278
Beginning Balance at Dec. 31, 2022	1,642,412	$ 272	306,673	1,690,489	(355,022)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	147,138
Ending Balance (in shares) at Sep. 30, 2023		27,503,340
Ending Balance at Sep. 30, 2023	1,802,675	$ 275	319,795	1,837,627	(355,022)
Beginning Balance (in shares) at Mar. 31, 2023		27,472,206
Beginning Balance at Mar. 31, 2023	1,674,229	$ 275	311,525	1,717,451	(355,022)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	53,134			53,134
Compensation expense for equity awards	2,360		2,360
Stock issued under employee incentive plans (in shares)		13,307
Stock issued under employee incentive plans	1,289		1,289
Ending Balance (in shares) at Jun. 30, 2023		27,485,513
Ending Balance at Jun. 30, 2023	1,731,012	$ 275	315,174	1,770,585	(355,022)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	67,042
Compensation expense for equity awards	3,123		3,123
Stock issued under employee incentive plans (in shares)		17,827
Stock issued under employee incentive plans	1,498	$ 0	1,498
Ending Balance (in shares) at Sep. 30, 2023		27,503,340
Ending Balance at Sep. 30, 2023	$ 1,802,675	$ 275	$ 319,795	$ 1,837,627	$ (355,022)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Cash flows from operating activities:
Net income	$ 147,138	$ 292,452
Adjustments to reconcile net income to net cash used in operating activities:
Equity in income of unconsolidated entities	(8,493)	(3,990)
Distributions of earnings from unconsolidated entities	9,989	3,202
Depreciation and amortization	1,780	1,134
Gain on sale of interest rate cap	0	(7,055)
Gain on disposal of assets	(1,634)	(2,206)
Compensation expense for equity awards	8,586	8,631
Deferred income taxes	(3,438)	(1,439)
Changes in assets and liabilities:
Accounts receivable	(10,508)	20,459
Real estate inventory	(194,360)	(791,682)
Pre-acquisition costs and deposits	(9,630)	8,592
Other assets	30,873	27,456
Accounts payable	42,002	41,070
Accrued expenses and other liabilities	(34,980)	43,824
Net cash used in operating activities	(22,675)	(359,552)
Cash flows from investing activities:
Purchases of property and equipment	(848)	(1,057)
Investment in unconsolidated entities	(11,619)	(1,284)
Return of capital from unconsolidated entities	4,871	235
Net cash used in investing activities	(7,596)	(2,106)
Cash flows from financing activities:
Proceeds from notes payable	335,864	534,876
Payments on notes payable	(260,000)	(110,000)
Proceeds from financing arrangements	50,402		$ 35,858
Payments on financing arrangements	(79,784)		(4,119)
Loan issuance costs	(5,561)	(2,567)
Proceeds from sale of stock, net of offering expenses	4,333	4,858
Stock repurchase	0	(95,102)
Net cash provided by financing activities	45,254	363,804
Net increase in cash and cash equivalents	14,983	2,146
Cash and cash equivalents, beginning of period	31,998	50,514	50,514
Cash and cash equivalents, end of period	$ 46,981	$ 52,660	$ 31,998

Organization and Basis of Prese

Organization and Basis of Presentation	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Basis of Presentation Disclosures	ORGANIZATION AND BASIS OF PRESENTATION Organization and Description of the Business LGI Homes, Inc., a Delaware corporation (the “Company”, “we,” “us,” or “our”), is headquartered in The Woodlands, Texas. We engage in the development of communities and the design, construction and sale of new homes in markets in Texas, Arizona, Florida, Georgia, New Mexico, Colorado, North Carolina, South Carolina, Washington, Tennessee, Minnesota, Oklahoma, Alabama, California, Oregon, Nevada, West Virginia, Virginia, Pennsylvania, Maryland and Utah. Basis of Presentation The unaudited consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These financial statements should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022. The accompanying unaudited consolidated financial statements include all adjustments that are of a normal recurring nature and necessary for the fair presentation of our results for the interim periods presented. Results for interim periods are not necessarily indicative of results to be expected for the full year. The accompanying unaudited financial statements as of September 30, 2023, and for the three and nine months ended September 30, 2023 and 2022, include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates, and these differences could have a significant impact on the financial statements.

Real Estate Inventory

Real Estate Inventory	9 Months Ended
	Sep. 30, 2023
Inventory Disclosure [Abstract]
Real Estate Inventory Disclosures	REAL ESTATE INVENTORY Our real estate inventory consists of the following (in thousands): September 30, December 31, 2023 2022 Land, land under development and finished lots $ 1,965,477 $ 1,911,307 Information centers 44,276 35,074 Homes in progress 580,802 287,069 Completed homes 347,506 523,054 Total owned inventory 2,938,061 2,756,504 Real estate not owned 118,905 141,792 Total real estate inventory $ 3,056,966 $ 2,898,296 We have land banking financing arrangements with a third-party land banker to repurchase land that we sold to the land banker as a method of acquiring finished lots in staged takedowns, while limiting risk and minimizing the use of funds from our available cash or other financing sources. In consideration for this repurchase option, we paid a non-refundable commitment fee. Based on our right to control the ultimate economic outcome of these finished lots, these assets will continue to be held as real estate not owned within our inventory and a corresponding obligation was established within our accrued liabilities as discussed in Note 3 to recognize this relationship. While we are not legally obligated to repurchase the balance of the lots, we will be subject to certain performance obligations, financial and other penalties if the lots are not purchased. We do not have any ownership interest or title to the assets that we have sold to the land banker and we do not guarantee any of the land banker’s liabilities.

Accrued Expenses and Other Liab

Accrued Expenses and Other Liabilities	9 Months Ended
	Sep. 30, 2023
Payables and Accruals [Abstract]
Accrued Expenses and Other Liabilities Disclosures	ACCRUED EXPENSES AND OTHER LIABILITIES Accrued and other liabilities consist of the following (in thousands): September 30, December 31, 2023 2022 Land banking financing arrangements $ 118,905 $ 141,792 Real estate inventory development and construction payable 66,052 73,678 Taxes payable 16,321 47,037 Inventory related obligations 12,743 13,039 Accrued compensation, bonuses and benefits 15,935 12,900 Warranty reserve 13,000 10,750 Accrued interest 7,918 10,906 Contract deposits 5,284 5,545 Lease liability 5,311 5,182 Other 13,212 19,299 Total accrued expenses and other liabilities $ 274,681 $ 340,128 Land Banking Financing Arrangements We have land banking financing arrangements with a third-party land banker to repurchase land that we sold to the land banker as a method of acquiring finished lots in staged takedowns. Principal payments on these financing arrangements will generally coincide with the repurchase of lot takedowns from the land banker. We expect to complete the repurchase of all lots via takedowns associated with these transactions over the course of approximately one Inventory Related Obligations We own lots in certain communities in Arizona, Florida and Texas that have Community Development Districts or similar utility and infrastructure development special assessment programs that allocate a fixed amount of debt service associated with development activities to each lot. This obligation for infrastructure development is attached to the land, which is typically payable over a 30-year period and is ultimately assumed by the homebuyer when home sales are closed. The obligations assumed by the homebuyer represent a non-cash cost of the lots. Estimated Warranty Reserve We typically provide homebuyers with a one-year warranty on the house and a ten-year limited warranty for major defects in structural elements, such as framing components and foundation systems. Changes to our warranty accrual are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Warranty reserves, beginning of period $ 12,150 $ 9,350 $ 10,750 $ 7,850 Warranty provision 2,220 2,985 6,450 8,092 Warranty expenditures (1,370) (2,285) (4,200) (5,892) Warranty reserves, end of period $ 13,000 $ 10,050 $ 13,000 $ 10,050

Notes Payable

Notes Payable	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
Notes Payable Disclosures	NOTES PAYABLE Revolving Credit Agreement On April 28, 2023, we entered into a Third Amendment to Fifth Amended and Restated Credit Agreement with several financial institutions, and Wells Fargo Bank, National Association, as administrative agent (the “Third Amendment”), which amends the Fifth Amended and Restated Credit Agreement, dated as of April 28, 2021, with several financial institutions, and Wells Fargo Bank, National Association, as administrative agent (as amended by an amendment dated as of April 29, 2022, the “2022 Credit Agreement” and as further amended by the Third Amendment, the “Credit Agreement”). The Credit Agreement provides for a $1.13 billion revolving credit facility, which can be increased at the request of the Company by up to $170.0 million, subject to the terms and conditions of the Credit Agreement. The Credit Agreement matures on April 28, 2027 with respect to $775.0 million, or 68.6%, of the $1.13 billion of commitments thereunder and on April 28, 2025 with respect to 31.4% of the commitments thereunder . The Credit Agreement also permits our subsidiaries that solely own and operate single family rental homes to incur secured indebtedness not to exceed 6% of our tangible net worth, and allows such subsidiaries to not guarantee the obligations under the Credit Agreement. The Credit Agreement otherwise has substantially similar terms and provisions to the 2022 Credit Agreement. Before each anniversary of the Credit Agreement, we may request a one-year extension of its maturity date. The Credit Agreement is guaranteed by, among others, each of our subsidiaries that have gross assets of at least $0.5 million, other than subsidiaries whose sole purpose is to own and operate single-family rental homes. The borrowings and letters of credit outstanding under the Credit Agreement, together with the outstanding principal balance of our 4.000% Senior Notes due 2029 (the “2029 Senior Notes”), may not exceed the borrowing base under the Credit Agreement. The borrowing base primarily consists of a percentage of commercial land, land held for development, lots under development and finished lots held by the Company and its subsidiaries that guarantee the obligations under the Credit Agreement. As of September 30, 2023, the borrowing base under the Credit Agreement is $1.8 billion of which the maximum available to borrow is $1.4 billion. As of September 30, 2023, borrowings under the Credit Agreement and the outstanding principal amount of the 2029 Senior Notes totaled $1.2 billion, $28.1 million of letters of credit were outstanding and $196.2 million was available to borrow under the Credit Agreement. Borrowings under the Credit Agreement bear interest, payable monthly in arrears, at the Company’s option, at either (1) the Adjusted Term SOFR (defined as a term SOFR that is based on a fixed 1, 3 or 6 month interest period, as selected by the Company, plus a 10, 15 or 25 basis point adjustment, respectively), which rate is subject to a 50 basis point floor, plus an applicable margin ranging from 145 basis points to 210 basis points (the “Applicable Margin”) based on the Company’s leverage ratio as determined in accordance with a pricing grid, or (2) the Base Rate (defined as a term SOFR that is based on a daily variable 1 month interest period plus a 10 basis point adjustment), subject to a 50 basis point floor, plus the Applicable Margin. At September 30, 2023, the Applicable Margin was 1.70%, and SOFR was 5.32%, subject to the 0.50% SOFR floor as included in the Credit Agreement. The Credit Agreement contains various financial covenants, including a minimum tangible net worth, a leverage ratio, a minimum liquidity amount and an EBITDA to interest expense ratio. The Credit Agreement contains various covenants that, among other restrictions, limit the amount of our additional debt and our ability to make certain investments. At September 30, 2023, we were in compliance with all of the covenants contained in the Credit Agreement. Senior Notes Offering On June 28, 2021, we issued $300.0 million aggregate principal amount of the 2029 Senior Notes in an offering to persons reasonably believed to be qualified institutional buyers in the United States pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to certain non-U.S. persons in transactions outside the United States pursuant to Regulation S under the Securities Act. Interest on the 2029 Senior Notes accrues at a rate of 4.000% per annum, payable semi-annually in arrears on January 15 and July 15 of each year. The 2029 Senior Notes mature on July 15, 2029. The terms of the 2029 Senior Notes are governed by an Indenture, dated as of July 6, 2018, and Third Supplemental Indenture thereto, dated as of June 28, 2021, as may be supplemented from time to time, among us, our subsidiaries that guarantee our obligations under the Credit Agreement and Wilmington Trust, National Association, as trustee. Notes payable consist of the following (in thousands): September 30, 2023 December 31, 2022 Notes payable under the Credit Agreement ($1.13 billion revolving credit facility at September 30, 2023) maturing in part on April 28, 2025 and in part on April 28, 2027; interest paid monthly at SOFR plus 1.70% $ 904,215 $ 828,350 4.000% Senior Notes due July 15, 2029; interest paid semi-annually at 4.000% 300,000 300,000 Net debt issuance costs (13,849) (11,349) Total notes payable $ 1,190,366 $ 1,117,001 Capitalized Interest Interest activity, including other financing costs, for notes payable and financing arrangements for the periods presented is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Interest incurred $ 21,578 $ 14,583 $ 62,865 $ 31,048 Less: Amounts capitalized (21,578) (14,583) (62,865) (31,048) Interest expense $ — $ — $ — $ — Cash paid for interest $ 23,358 $ 14,874 $ 63,114 $ 29,080 Included in interest incurred was amortization of deferred financing costs and applicable discounts for notes payable and financing arrangements of $2.4 million and $0.9 million for the three months ended September 30, 2023 and 2022, respectively, and $10.6 million and $2.5 million for the nine months ended September 30, 2023 and 2022, respectively.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income Tax Disclosures	INCOME TAXES We file U.S. and state income tax returns in jurisdictions with varying statutes of limitations. The statute of limitations with regards to our federal income tax filings is three years. The statute of limitations for our state tax jurisdictions is three to four years depending on the jurisdiction. In the normal course of business, we are subject to tax audits in various jurisdictions, and such jurisdictions may assess additional income taxes. We do not expect the outcome of any audit to have a material effect on our consolidated financial statements; however, audit outcomes and the timing of audit adjustments are subject to significant uncertainty. For the three months ended September 30, 2023, our effective tax rate of 25.1% is higher than the Federal statutory rate primarily as a result of an increase in the rate for the compensation limitation under Section 162(m) of the Internal Revenue Code, as amended, and for state income taxes, net of the federal benefit, offset by the federal energy efficient homes tax credits. For the nine months ended September 30, 2023, our effective tax rate of 23.8% is higher than the Federal statutory rate primarily as a result of an increase in the rate for the compensation limitation under Section 162(m) of the Internal Revenue Code, as amended, and for state income taxes, net of the federal benefit, offset by a decrease in the rate for the deductions in excess of compensation cost for share-based payments and the federal energy efficient homes tax credits.

Equity

Equity	9 Months Ended
	Sep. 30, 2023
Equity [Abstract]
Equity Disclosures	EQUITY Stock Repurchase Program In February 2022, our Board of Directors (the “Board”) approved a $200.0 million increase to our previously authorized stock repurchase program, pursuant to which we may purchase up to $550.0 million of shares of our common stock through open market transactions, privately negotiated transactions or otherwise in accordance with applicable laws. During the three and nine months ended September 30, 2023, we did not repurchase any shares of our common stock. During the three months ended September 30, 2022, we did not repurchase any shares of our common stock. During the nine months ended September 30, 2022, we repurchased 892,916 shares of our common stock for $95.1 million to be held as treasury stock. A total of 2,939,472 shares of our common stock has been repurchased since our stock repurchase program commenced. As of September 30, 2023, we may purchase up to $211.5 million of shares of our common stock under our stock repurchase program. The timing, amount and other terms and conditions of any repurchases of shares of our common stock under our stock repurchase program will be determined by our management at its discretion based on a variety of factors, including the market price of our common stock, corporate considerations, general market and economic conditions and legal requirements. Our stock repurchase program may be modified, discontinued or suspended at any time.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
Earnings Per Share Disclosures	EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator (in thousands): Net income (Numerator for basic and dilutive earnings per share) $ 67,042 $ 90,390 $ 147,138 $ 292,452 Denominator: Basic weighted average shares outstanding 23,546,061 23,272,811 23,562,374 23,552,211 Effect of dilutive securities: Stock-based compensation units 94,625 215,514 133,721 252,875 Diluted weighted average shares outstanding 23,640,686 23,488,325 23,696,095 23,805,086 Basic earnings per share $ 2.85 $ 3.88 $ 6.24 $ 12.42 Diluted earnings per share $ 2.84 $ 3.85 $ 6.21 $ 12.29 Antidilutive non-vested restricted stock units excluded from calculation of diluted earnings per share 1,749 2,396 4,735 10,797

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation Disclosures	STOCK-BASED COMPENSATION Non-performance Based Restricted Stock Units The following table summarizes the activity of our time-vested restricted stock units (“RSUs”): Nine Months Ended September 30, 2023 2022 Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Beginning balance 146,239 $ 100.93 113,782 $ 101.42 Granted 40,435 $ 105.78 1,664 $ 84.39 Vested (44,303) $ 64.82 (1,006) $ 79.84 Forfeited (6,802) $ 114.23 (1,353) $ 92.64 Ending balance 135,569 $ 113.52 113,087 $ 101.47 We recognized $1.2 million and $0.9 million of stock-based compensation expense related to outstanding RSUs for the three months ended September 30, 2023 and 2022, respectively. We recognized $3.6 million and $2.8 million of stock-based compensation expense related to outstanding RSUs for the nine months ended September 30, 2023 and 2022, respectively. Generally, the RSUs cliff vest on the third anniversary of the grant date and can only be settled in shares of our common stock. At September 30, 2023, we had unrecognized compensation cost of $8.1 million related to unvested RSUs, which is expected to be recognized over a weighted average period of 2.0 years. Performance-Based Restricted Stock Units The Compensation Committee of the Board has granted awards of performance-based RSUs (“PSUs”) under the Amended and Restated LGI Homes, Inc. 2013 Equity Incentive Plan to certain members of senior management based on three-year performance cycles. The PSUs provide for shares of our common stock to be issued based on the attainment of certain performance metrics over the applicable three-year periods. The number of shares of our common stock that may be issued to the recipients for the PSUs range from 0% to 200% of the target amount depending on actual results as compared to the target performance metrics. The terms of the PSUs provide that the payouts will be capped at 100% of the target number of PSUs granted if absolute total stockholder return is negative during the performance period, regardless of EPS performance; this market condition applies for amounts recorded above target. The compensation expense associated with the PSU grants is determined using the derived grant date fair value, based on a third-party valuation analysis, and expensed over the applicable period. The PSUs vest upon the determination date for the actual results at the end of the three-year period and require that the recipients continue to be employed by us through the determination date. The PSUs can only be settled in shares of our common stock. The following table summarizes the activity of our PSUs for the nine months ended September 30, 2023: Period Granted Performance Period Target PSUs Outstanding at December 31, 2022 Target PSUs Granted Target PSUs Forfeited Target PSUs Vested Target PSUs Outstanding at September 30, 2023 Weighted Average Grant Date Fair Value 2020 2020 - 2022 84,435 — — (84,435) — $ 59.81 2021 2021 - 2023 44,011 — (852) — 43,159 $ 141.00 2022 2022 - 2024 64,382 — (1,078) — 63,304 $ 118.80 2023 2023 - 2025 — 72,443 — — 72,443 $ 104.36 Total 192,828 72,443 (1,930) (84,435) 178,906 At September 30, 2023, management estimates that the recipients will receive approximately 125.0%, 50.0% and 80.7% of the 2023, 2022 and 2021 target number of PSUs, respectively, at the end of the applicable three-year performance cycle based on projected performance compared to the target performance metrics. We recognized $1.7 million and $0.4 million of total stock-based compensation expense related to outstanding PSUs for the three months ended September 30, 2023 and 2022, respectively. We recognized $4.0 million and $4.9 million of total stock-based compensation expense related to outstanding PSUs for the nine months ended September 30, 2023 and 2022, respectively. The 2020 - 2022 performance period PSUs vested and issued on February 27, 2023, at 200% of the target number. At September 30, 2023, we had unrecognized compensation cost of $10.0 million, based on the probable amount, related to unvested PSUs, which is expected to be recognized over a weighted average period of 2.1 years.

Fair Value Disclosures

Fair Value Disclosures	9 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value Disclosures	FAIR VALUE DISCLOSURES Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements (“ASC 820”) , defines fair value as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date” within an entity’s principal market, if any. The principal market is the market in which the reporting entity would sell the asset or transfer the liability with the most significant volume and level of activity, regardless of whether it is the market in which the entity will ultimately transact for a particular asset or liability or if a different market is potentially more advantageous. Accordingly, this exit price concept may result in a fair value that differs from the transaction price or market price of the asset or liability. ASC 820 provides a framework for measuring fair value under GAAP, expands disclosures about fair value measurements and establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of the fair value hierarchy are summarized as follows: Level 1 - Fair value is based on quoted prices in active markets for identical assets or liabilities. Level 2 - Fair value is determined using significant observable inputs, generally either quoted prices in active markets for similar assets or liabilities, or quoted prices in markets that are not active. Level 3 - Fair value is determined using one or more significant inputs that are unobservable in active markets at the measurement date, such as a pricing model, discounted cash flow or similar technique. We utilize fair value measurements to account for certain items and account balances within our consolidated financial statements. Fair value measurements may also be utilized on a nonrecurring basis, such as for the impairment of long-lived assets. The fair value of financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and certain accrued liabilities approximate their carrying amounts due to the short-term nature of these instruments. As of September 30, 2023, the Credit Agreement’s carrying value approximates market value since it has a floating interest rate, which increases or decreases with market interest rates and our leverage ratio. In order to determine the fair value of the 2029 Senior Notes, the future contractual cash flows are discounted at our estimate of current market rates of interest, which were determined based upon the average interest rates of similar senior notes within the homebuilding industry (Level 2 measurement). The following table below shows the level and measurement of liabilities at September 30, 2023 and December 31, 2022 (in thousands): September 30, 2023 December 31, 2022 Fair Value Hierarchy Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value 2029 Senior Notes (1) Level 2 $ 300,000 $ 249,367 $ 300,000 $ 246,969 (1) See Note 4

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosures	COMMITMENTS AND CONTINGENCIES Contingencies In the ordinary course of doing business, we are subject to claims or proceedings from time to time relating to the purchase, development and sale of real estate and homes and other aspects of our operations. Management believes that these claims include usual obligations incurred by real estate developers and residential home builders in the normal course of business. In the opinion of management, these matters will not have a material effect on our consolidated financial position, results of operations or cash flows. We have provided unsecured environmental indemnities to certain lenders and other counterparties. In each case, we have performed due diligence on the potential environmental risks including obtaining an independent environmental review from outside environmental consultants. These indemnities obligate us to reimburse the guaranteed parties for damages related to environmental matters. There is no term or damage limitation on these indemnities; however, if an environmental matter arises, we may have recourse against other previous owners. In the ordinary course of doing business, we are subject to regulatory proceedings from time to time related to environmental and other matters. In the opinion of management, these matters will not have a material effect on our consolidated financial position, results of operations or cash flows. Land Deposits We have land purchase contracts, generally through cash deposits, for the right to purchase land or lots at a future point in time with predetermined terms. We do not have title to the property, and obligations with respect to the land purchase contracts are generally limited to the forfeiture of the related nonrefundable cash deposits. The following is a summary of our land purchase deposits included in pre-acquisition costs and deposits (in thousands, except for lot count): September 30, 2023 December 31, 2022 Land deposits and option payments (1) $ 32,427 $ 22,406 Commitments under the land purchase contracts if the purchases are consummated (1) $ 620,591 $ 411,776 Lots under land purchase contracts (1) 15,808 13,184 (1) Includes land banking financing arrangements, see Notes 2 and 3 for more details regarding real estate not owned. As of September 30, 2023 and December 31, 2022, approximately $13.0 million and $12.8 million, respectively, of the land deposits are related to purchase contracts to deliver finished lots that are refundable under certain circumstances, such as feasibility or specific performance, and secured by mortgages or letters of credit or guaranteed by the seller or its affiliates. Lease Obligations We recognize lease obligations and associated right-of-use (“ROU”) assets for our existing non-cancelable leases. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We have non-cancelable operating leases primarily associated with our corporate and regional office facilities. Operating lease expense is recognized on a straight-line basis over the lease term, subject to any changes in the lease or expectations regarding the terms. Variable lease costs such as common area costs and property taxes are expensed as incurred. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. ROU assets, as included in other assets on the consolidated balance sheets, were $5.0 million and $4.9 million at September 30, 2023 and December 31, 2022, respectively. Lease obligations, as included in accrued expenses and other liabilities on the consolidated balance sheets, were $5.3 million and $5.2 million at September 30, 2023 and December 31, 2022, respectively. Operating lease cost, as included in general and administrative expense in our consolidated statements of operations, was $0.7 million and $0.5 million for the three months ended September 30, 2023 and 2022, respectively. Operating lease cost, as included in general and administrative expense in our consolidated statements of operations, was $1.9 million and $1.6 million for the nine months ended September 30, 2023 and 2022, respectively. Cash paid for amounts included in the measurement of lease liabilities for operating leases during the nine months ended September 30, 2023 and 2022 was $1.4 million and $1.3 million, respectively. As of September 30, 2023, the weighted-average discount rate was 5.8% and our weighted-average remaining life was 2.4 years. We do not have any significant lease contracts that have not yet commenced at September 30, 2023. The table below shows the future minimum payments under non-cancelable operating leases at September 30, 2023 (in thousands): Year Ending December 31, Operating leases 2023 439 2024 1,535 2025 1,307 2026 1,145 2027 1,022 Thereafter 596 Total 6,044 Lease amount representing interest (733) Present value of lease liabilities $ 5,311 Bonding and Letters of Credit We have outstanding letters of credit and performance and surety bonds totaling $382.9 million (including $28.1 million of letters of credit issued under the Credit Agreement) and $368.1 million (including $33.4 million of letters of credit issued under the 2022 Credit Agreement) at September 30, 2023 and December 31, 2022, respectively, related to our obligations for site improvements at various projects. Management does not believe that draws upon the letters of credit, surety bonds or financial guarantees if any, will have a material effect on our consolidated financial position, results of operations or cash flows. Investment in Unconsolidated Entities As of September 30, 2023, we had one equity-method land joint venture and two additional joint ventures engaged in mortgage and insurance activities that primarily provide services to our homebuyers. As of September 30, 2023 and December 31, 2022, we have a total of $16.5 million and $11.2 million, respectively, within other assets on the balance sheet relating to our investment in joint ventures associated with our operations. Contributions into the unconsolidated entities are for the use of investing in certain real estate transactions and residential mortgage services, respectively. Income associated with our investment in unconsolidated entities during the three and nine months ended September 30, 2023 was $3.2 million and $8.5 million, respectively. Income associated with our investment in unconsolidated entities during the three and nine months ended September 30, 2022 was $2.2 million and $4.0 million, respectively.

Revenues

Revenues	9 Months Ended
	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenues Disclosure	REVENUES Home Sales Revenues We generate revenues primarily by delivering move-in ready entry-level and move-up spec homes sold under our LGI Homes brand and our move-up and luxury series spec homes sold under our Terrata Homes brand. The following table presents our home sales revenues disaggregated by revenue stream (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Retail home sales revenues $ 574,246 $ 419,213 $ 1,633,826 $ 1,599,570 Wholesale home sales revenues 43,293 127,861 116,340 216,623 Total home sales revenues $ 617,539 $ 547,074 $ 1,750,166 $ 1,816,193 Our home sales revenues are disaggregated by geography, based on our determined reportable segments. See Note 12 for tabular presentation of this information.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2023
Segment Reporting [Abstract]
Segment Information Disclosures	SEGMENT INFORMATION We operate one principal homebuilding business that is organized and reports by division. We have seven operating segments (our Central, Midwest, Southeast, Mid-Atlantic, Northwest, West, and Florida divisions) that we aggregate into five qualifying reportable segments at September 30, 2023: our Central, Southeast, Northwest, West, and Florida divisions. These segments reflect the way the Company evaluates its business performance and manages its operations. In accordance with ASC 280, Segment Reporting , operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision-makers (“CODMs”) in deciding how to allocate resources and in assessing performance. The CODMs primarily evaluate performance based on the number of homes closed, gross margin and average sales price per home closed. In determining the most appropriate reportable segments, we consider operating segments’ economic and other characteristics, including home floor plans, average selling prices, gross margin percentage, geographical proximity, production construction processes, suppliers, subcontractors, regulatory environments, customer type and underlying demand and supply. Each operating segment follows the same accounting policies and is managed by our management team. We have no inter-segment sales, as all sales are to external customers. Operating results for each segment may not be indicative of the results for such segment had it been an independent, stand-alone entity for the periods presented. Financial information relating to our reportable segments is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenues: Central $ 183,615 $ 228,448 $ 564,580 $ 807,400 Southeast 149,593 138,478 397,618 328,510 Northwest 67,666 46,774 212,885 220,440 West 94,950 65,064 256,575 244,603 Florida 121,715 68,310 318,508 215,240 Total home sales revenues $ 617,539 $ 547,074 $ 1,750,166 $ 1,816,193 Net income (loss) before income taxes: Central $ 32,172 $ 46,413 $ 69,521 $ 189,004 Southeast 26,786 31,593 54,166 70,358 Northwest 9,432 6,379 23,194 49,693 West 9,368 8,342 15,162 27,282 Florida 15,579 9,770 37,077 30,914 Corporate (1) (3,888) 6,204 (5,914) 4,012 Total net income before income taxes $ 89,449 $ 108,701 $ 193,206 $ 371,263 (1) The Corporate balance consists of general and administration unallocated costs for various shared service functions and non-strategic other income, as well as our warranty reserve. Actual warranty expenses are reflected within the reportable segments. Additionally, for the three and nine months ended September 30, 2022, the balance includes the $7.1 million gain on the sale of the three-year interest rate cap of LIBOR prior to its expiration. September 30, 2023 December 31, 2022 Assets: Central $ 1,016,130 $ 986,779 Southeast 658,020 633,542 Northwest 505,304 485,086 West 650,489 599,714 Florida 420,056 334,824 Corporate (1) 85,012 84,883 Total assets $ 3,335,011 $ 3,124,828

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net income	$ 67,042	$ 53,134	$ 26,962	$ 90,390	$ 123,376	$ 78,686	$ 147,138	$ 292,452

Insider Trading Arrangements

Insider Trading Arrangements shares in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2023 shares	Sep. 30, 2023 shares
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On August 22, 2023, Michael Snider, Chief Operating Officer of the Company, adopted a “Rule 10b5-1 trading arrangement,” as defined in Item 408(a) of Regulation S-K, that is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act. Subject to meeting the stock price conditions set forth therein and pursuant to the terms thereof, Mr. Snider’s Rule 10b5-1 trading arrangement provides for the sale, between November 20, 2023 and November 20, 2024, of a maximum number of shares of the Company’s common stock that would generate proceeds of up to $4.0 million. Mr. Snider’s Rule 10b5-1 trading arrangement will be in effect until the earlier of (i) November 20, 2024 and (ii) the completion of all sales contemplated thereunder. Except as set forth above, during the three months ended September 30, 2023, no director or officer (as defined in Rule 16a-1(f) under the Exchange Act) of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Michael Snider [Member]
Trading Arrangements, by Individual
Name	Michael Snider
Title	Chief Operating Officer
Rule 10b5-1 Arrangement Adopted	true
Aggregate Available	4	4

Organization and Basis of Pre_2

Organization and Basis of Presentation	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The unaudited consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These financial statements should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022. The accompanying unaudited consolidated financial statements include all adjustments that are of a normal recurring nature and necessary for the fair presentation of our results for the interim periods presented. Results for interim periods are not necessarily indicative of results to be expected for the full year.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates, and these differences could have a significant impact on the financial statements.

Real Estate Inventory (Tables)

Real Estate Inventory (Tables)	9 Months Ended
	Sep. 30, 2023
Inventory Disclosure [Abstract]
Schedule of Real Estate Inventory	Our real estate inventory consists of the following (in thousands): September 30, December 31, 2023 2022 Land, land under development and finished lots $ 1,965,477 $ 1,911,307 Information centers 44,276 35,074 Homes in progress 580,802 287,069 Completed homes 347,506 523,054 Total owned inventory 2,938,061 2,756,504 Real estate not owned 118,905 141,792 Total real estate inventory $ 3,056,966 $ 2,898,296

Accrued Expenses and Other Li_2

Accrued Expenses and Other Liabilities (Tables)	9 Months Ended
	Sep. 30, 2023
Payables and Accruals [Abstract]
Accrued and Other Current Liabilities	Accrued and other liabilities consist of the following (in thousands): September 30, December 31, 2023 2022 Land banking financing arrangements $ 118,905 $ 141,792 Real estate inventory development and construction payable 66,052 73,678 Taxes payable 16,321 47,037 Inventory related obligations 12,743 13,039 Accrued compensation, bonuses and benefits 15,935 12,900 Warranty reserve 13,000 10,750 Accrued interest 7,918 10,906 Contract deposits 5,284 5,545 Lease liability 5,311 5,182 Other 13,212 19,299 Total accrued expenses and other liabilities $ 274,681 $ 340,128
Changes in Company's Warranty Accrual	Changes to our warranty accrual are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Warranty reserves, beginning of period $ 12,150 $ 9,350 $ 10,750 $ 7,850 Warranty provision 2,220 2,985 6,450 8,092 Warranty expenditures (1,370) (2,285) (4,200) (5,892) Warranty reserves, end of period $ 13,000 $ 10,050 $ 13,000 $ 10,050

Notes Payable (Tables)

Notes Payable (Tables)	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
Schedule of Notes Payable	Notes payable consist of the following (in thousands): September 30, 2023 December 31, 2022 Notes payable under the Credit Agreement ($1.13 billion revolving credit facility at September 30, 2023) maturing in part on April 28, 2025 and in part on April 28, 2027; interest paid monthly at SOFR plus 1.70% $ 904,215 $ 828,350 4.000% Senior Notes due July 15, 2029; interest paid semi-annually at 4.000% 300,000 300,000 Net debt issuance costs (13,849) (11,349) Total notes payable $ 1,190,366 $ 1,117,001
Schedule of Interest Activity for Notes Payable	Interest activity, including other financing costs, for notes payable and financing arrangements for the periods presented is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Interest incurred $ 21,578 $ 14,583 $ 62,865 $ 31,048 Less: Amounts capitalized (21,578) (14,583) (62,865) (31,048) Interest expense $ — $ — $ — $ — Cash paid for interest $ 23,358 $ 14,874 $ 63,114 $ 29,080

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator (in thousands): Net income (Numerator for basic and dilutive earnings per share) $ 67,042 $ 90,390 $ 147,138 $ 292,452 Denominator: Basic weighted average shares outstanding 23,546,061 23,272,811 23,562,374 23,552,211 Effect of dilutive securities: Stock-based compensation units 94,625 215,514 133,721 252,875 Diluted weighted average shares outstanding 23,640,686 23,488,325 23,696,095 23,805,086 Basic earnings per share $ 2.85 $ 3.88 $ 6.24 $ 12.42 Diluted earnings per share $ 2.84 $ 3.85 $ 6.21 $ 12.29 Antidilutive non-vested restricted stock units excluded from calculation of diluted earnings per share 1,749 2,396 4,735 10,797

Stock-based Compensation (Table

Stock-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of Restricted Stock Unit Activity	The following table summarizes the activity of our time-vested restricted stock units (“RSUs”): Nine Months Ended September 30, 2023 2022 Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Beginning balance 146,239 $ 100.93 113,782 $ 101.42 Granted 40,435 $ 105.78 1,664 $ 84.39 Vested (44,303) $ 64.82 (1,006) $ 79.84 Forfeited (6,802) $ 114.23 (1,353) $ 92.64 Ending balance 135,569 $ 113.52 113,087 $ 101.47
Schedule of Performance Based Stock Activity	The following table summarizes the activity of our PSUs for the nine months ended September 30, 2023: Period Granted Performance Period Target PSUs Outstanding at December 31, 2022 Target PSUs Granted Target PSUs Forfeited Target PSUs Vested Target PSUs Outstanding at September 30, 2023 Weighted Average Grant Date Fair Value 2020 2020 - 2022 84,435 — — (84,435) — $ 59.81 2021 2021 - 2023 44,011 — (852) — 43,159 $ 141.00 2022 2022 - 2024 64,382 — (1,078) — 63,304 $ 118.80 2023 2023 - 2025 — 72,443 — — 72,443 $ 104.36 Total 192,828 72,443 (1,930) (84,435) 178,906

Fair Value Disclosures (Tables)

Fair Value Disclosures (Tables)	9 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	The following table below shows the level and measurement of liabilities at September 30, 2023 and December 31, 2022 (in thousands): September 30, 2023 December 31, 2022 Fair Value Hierarchy Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value 2029 Senior Notes (1) Level 2 $ 300,000 $ 249,367 $ 300,000 $ 246,969 (1) See Note 4

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Summary of Lots Under Option or Contract	The following is a summary of our land purchase deposits included in pre-acquisition costs and deposits (in thousands, except for lot count): September 30, 2023 December 31, 2022 Land deposits and option payments (1) $ 32,427 $ 22,406 Commitments under the land purchase contracts if the purchases are consummated (1) $ 620,591 $ 411,776 Lots under land purchase contracts (1) 15,808 13,184 (1) Includes land banking financing arrangements, see Notes 2 and 3 for more details regarding real estate not owned.
Lessee, Operating Lease, Liability, Maturity	The table below shows the future minimum payments under non-cancelable operating leases at September 30, 2023 (in thousands): Year Ending December 31, Operating leases 2023 439 2024 1,535 2025 1,307 2026 1,145 2027 1,022 Thereafter 596 Total 6,044 Lease amount representing interest (733) Present value of lease liabilities $ 5,311

Revenues (Tables)

Revenues (Tables)	9 Months Ended
	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue from External Customers by Products	The following table presents our home sales revenues disaggregated by revenue stream (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Retail home sales revenues $ 574,246 $ 419,213 $ 1,633,826 $ 1,599,570 Wholesale home sales revenues 43,293 127,861 116,340 216,623 Total home sales revenues $ 617,539 $ 547,074 $ 1,750,166 $ 1,816,193

Segment (Tables)

Segment (Tables)	9 Months Ended
	Sep. 30, 2023
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Financial information relating to our reportable segments is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenues: Central $ 183,615 $ 228,448 $ 564,580 $ 807,400 Southeast 149,593 138,478 397,618 328,510 Northwest 67,666 46,774 212,885 220,440 West 94,950 65,064 256,575 244,603 Florida 121,715 68,310 318,508 215,240 Total home sales revenues $ 617,539 $ 547,074 $ 1,750,166 $ 1,816,193 Net income (loss) before income taxes: Central $ 32,172 $ 46,413 $ 69,521 $ 189,004 Southeast 26,786 31,593 54,166 70,358 Northwest 9,432 6,379 23,194 49,693 West 9,368 8,342 15,162 27,282 Florida 15,579 9,770 37,077 30,914 Corporate (1) (3,888) 6,204 (5,914) 4,012 Total net income before income taxes $ 89,449 $ 108,701 $ 193,206 $ 371,263 (1) The Corporate balance consists of general and administration unallocated costs for various shared service functions and non-strategic other income, as well as our warranty reserve. Actual warranty expenses are reflected within the reportable segments. Additionally, for the three and nine months ended September 30, 2022, the balance includes the $7.1 million gain on the sale of the three-year interest rate cap of LIBOR prior to its expiration. September 30, 2023 December 31, 2022 Assets: Central $ 1,016,130 $ 986,779 Southeast 658,020 633,542 Northwest 505,304 485,086 West 650,489 599,714 Florida 420,056 334,824 Corporate (1) 85,012 84,883 Total assets $ 3,335,011 $ 3,124,828

Schedule of Real Estate Invento

Schedule of Real Estate Inventory (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Inventory [Line Items]
Land, land under development and finished lots	$ 1,965,477	$ 1,911,307
Information centers	44,276	35,074
Homes in progress	580,802	287,069
Completed homes	347,506	523,054
Total real estate inventory	2,938,061	2,756,504
Real estate not owned	118,905	141,792
Total real estate inventory	3,056,966	$ 2,898,296
Transfer of real estate inventory to rental properties	$ 9,800
Lessor, contract term	1 year

Accrued Expenses and Other Li_3

Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Real estate inventory development and construction payable	$ 66,052		$ 73,678
Land banking financing arrangements	118,905		141,792
Accrued compensation, bonuses and benefits	15,935		12,900
Taxes payable	16,321		47,037
Contract deposits	5,284		5,545
Accrued interest	7,918		10,906
Inventory related obligations	12,743		13,039
Warranty reserve	13,000	$ 12,150	10,750	$ 10,050	$ 9,350	$ 7,850
Operating Lease, Liability	5,311		5,182
Other	13,212		19,299
Total accrued expenses and other liabilities	$ 274,681		$ 340,128

Accrued Expenses and Other Li_4

Accrued Expenses and Other Liabilities - Narrative (Details)	9 Months Ended
	Sep. 30, 2023
Product Warranty Liability [Line Items]
Inventory related obligation term	30 years
Minimum
Product Warranty Liability [Line Items]
Repurchase period related to takedowns	1 year
Maximum
Product Warranty Liability [Line Items]
Repurchase period related to takedowns	3 years
Other Construction Components
Product Warranty Liability [Line Items]
Limited warranty period	1 year
Structural Elements
Product Warranty Liability [Line Items]
Limited warranty period	10 years

Changes in Warranty Reserve (De

Changes in Warranty Reserve (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Product Warranty, Increase (Decrease) [Roll Forward]
Warranty reserves, beginning of period	$ 12,150	$ 9,350	$ 10,750	$ 7,850
Warranty provision	2,220	2,985	6,450	8,092
Warranty expenditures	(1,370)	(2,285)	(4,200)	(5,892)
Warranty reserves, end of period	$ 13,000	$ 10,050	$ 13,000	$ 10,050
Other Construction Components
Product Warranty Liability [Line Items]
Limited warranty period			1 year
Structural Elements
Product Warranty Liability [Line Items]
Limited warranty period			10 years

Notes Payable - Revolving Credi

Notes Payable - Revolving Credit Agreement (Details) - USD ($) $ in Millions			9 Months Ended
	Apr. 28, 2023	Apr. 29, 2022	Sep. 30, 2023	Dec. 31, 2022	Jun. 28, 2021
Line of Credit Facility [Line Items]
Debt Instrument, Covenant, Secured Indebtedness Incurred By Subsidiaries, Maximum Of Net Worth	6%
Line of Credit | Revolving Credit Facility
Line of Credit Facility [Line Items]
Credit agreement, gross assets		$ 0.5
SOFR
Line of Credit Facility [Line Items]
Base spread on variable rate			1.70%
Fifth Amended and Restated Credit Agreement | Line of Credit | Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility			$ 1,800
Line of credit facility, current borrowing capacity			1,400
Line of credit, amount outstanding			1,200
Letters of credit outstanding			28.1	$ 33.4
Line of credit facility, remaining borrowing capacity			$ 196.2
Fifth Amended and Restated Credit Agreement | Line of Credit | One Month | Revolving Credit Facility
Line of Credit Facility [Line Items]
Base spread on variable rate		0.10%
Fifth Amended and Restated Credit Agreement | Line of Credit | Three Months | Revolving Credit Facility
Line of Credit Facility [Line Items]
Base spread on variable rate		0.15%
Fifth Amended and Restated Credit Agreement | Line of Credit | Six Months | Revolving Credit Facility
Line of Credit Facility [Line Items]
Base spread on variable rate		0.25%
Fifth Amended and Restated Credit Agreement | SOFR | Line of Credit | Revolving Credit Facility
Line of Credit Facility [Line Items]
Base spread on variable rate		1.70%
Variable interest rate		0.10%	5.32%
Fifth Amended and Restated Credit Agreement | Minimum | Line of Credit | Revolving Credit Facility
Line of Credit Facility [Line Items]
Base spread on variable rate		1.45%
Fifth Amended and Restated Credit Agreement | Minimum | SOFR | Line of Credit | Revolving Credit Facility
Line of Credit Facility [Line Items]
Variable interest rate		0.50%	0.50%
Fifth Amended and Restated Credit Agreement | Maximum | Line of Credit | Revolving Credit Facility
Line of Credit Facility [Line Items]
Base spread on variable rate		2.10%
4.000% Senior Notes Due 2029 | Senior Notes
Line of Credit Facility [Line Items]
Stated interest rate on note			4%		4%
Sixth Amended and Restated Credit Agreement
Line of Credit Facility [Line Items]
Line of credit facility, maximum increase	$ 170
Debt Instrument, Covenant, Commitments By Lenders	$ 775
Debt Instrument, Covenant, Commitments By Lenders, Percent	68.60%
Debt Instrument, Covenant, Commitments By Lenders Remaining, Percent	31.40%
Sixth Amended and Restated Credit Agreement | Line of Credit | Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility	$ 1,130

Notes Payable - Schedule of Not

Notes Payable - Schedule of Notes Payable (Details) - USD ($)	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Notes payable	$ 1,190,366,000	$ 1,117,001,000
Net debt issuance costs	$ (13,849,000)	(11,349,000)
SOFR
Debt Instrument [Line Items]
Base spread on variable rate	1.70%
Revolving Credit Facility
Debt Instrument [Line Items]
Notes payable	$ 904,215,000	828,350,000
Line of credit facility	1,130,000,000
4.000% Senior Notes Due 2029
Debt Instrument [Line Items]
Notes payable	$ 300,000,000
4.000% Senior Notes Due 2029 | Senior Notes
Debt Instrument [Line Items]
Notes payable		$ 300,000,000
Interest rate	4%

Notes Payable - Senior Notes (D

Notes Payable - Senior Notes (Details) - 4.000% Senior Notes Due 2029 - Senior Notes - USD ($) $ in Millions	Sep. 30, 2023	Jun. 28, 2021
Debt Instrument [Line Items]
Senior Notes, Gross		$ 300
Stated interest rate on note	4%	4%

Notes Payable - Capitalized Int

Notes Payable - Capitalized Interest (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Debt Disclosure [Abstract]
Interest incurred	$ 21,578	$ 14,583	$ 62,865	$ 31,048
Less: Amounts capitalized	(21,578)	(14,583)	(62,865)	(31,048)
Interest expense	0	0	0	0
Cash paid for interest	23,358	14,874	63,114	29,080
Net debt issuance costs	$ 2,400	$ 900	$ 10,600	$ 2,500

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Effective income tax rate reconciliation, percent	25.10%		23.80%
Income taxes paid	$ 20.2	$ 3.8	$ 80	$ 56.2

Equity (Details)

Equity (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended		20 Months Ended
	Sep. 30, 2023	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Feb. 11, 2022
Equity [Abstract]
Stock repurchase program, additional amount authorized							$ 200,000
Stock repurchase program, authorized amount							$ 550,000
Stock repurchased during period		$ 37,443	$ 57,659		$ 95,100
Stock repurchased during period (in shares)	0			0	892,916	2,939,472
Stock repurchase program, remaining authorized repurchase amount	$ 211,500			$ 211,500		$ 211,500

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Earnings Per Share [Abstract]
Net income	$ 67,042	$ 53,134	$ 26,962	$ 90,390	$ 123,376	$ 78,686	$ 147,138	$ 292,452
Basic weighted average shares outstanding	23,546,061			23,272,811			23,562,374	23,552,211
Stock-based compensation units	94,625			215,514			133,721	252,875
Diluted weighted average shares outstanding	23,640,686			23,488,325			23,696,095	23,805,086
Basic earnings per share (in dollars per share)	$ 2.85			$ 3.88			$ 6.24	$ 12.42
Diluted earnings per share (in dollars per share)	$ 2.84			$ 3.85			$ 6.21	$ 12.29
Antidilutive non-vested restricted stock units excluded from calculation of diluted earnings per share	1,749			2,396			4,735	10,797

Summary of Non-Perfomance Based

Summary of Non-Perfomance Based Restricted Stock Units (Details) - Restricted stock units (RSUs) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share-based Compensation Arrangement by Award [Abstract]
Balance at Beginning of Period (in shares)			146,239	113,782
Granted (in shares)			40,435	1,664
Vested (in shares)			(44,303)	(1,006)
Forfeited (in shares)			(6,802)	(1,353)
Balance at End of Period (in shares)	135,569	113,087	135,569	113,087
Share-based Compensation Arrangement by Award, Fair Value [Abstract]
Shares outstanding at the beginning of the period, weighted average grant date fair value (in dollars per share)			$ 100.93	$ 101.42
Granted, weighted average grant date fair value (in dollars per share)			105.78	84.39
Vested, weighted average grant date fair value (in dollars per share)			64.82	79.84
Forfeited, weighted average grant date fair value (in dollars per share)			114.23	92.64
Shares outstanding at the end of the period, weighted average grant date fair value (in dollars per share)	$ 113.52	$ 101.47	$ 113.52	$ 101.47
Share-based compensation expense	$ 1.2	$ 0.9	$ 3.6	$ 2.8
Share-based compensation not yet recognized	$ 8.1		$ 8.1
Share-based compensation not yet recognized, period for recognition			2 years

Summary of Performance Based Re

Summary of Performance Based Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended		9 Months Ended
	Mar. 15, 2022	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share-based Compensation Arrangement by Award [Line Items]
Percentage of total units vested				100%
Performance Based Shares
Share-based Compensation Arrangement by Award [Line Items]
Balance at Beginning of Period (in shares)				192,828
Granted (in shares)				72,443
Forfeited (in shares)				(1,930)
Vested (in shares)				(84,435)
Balance at End of Period (in shares)		178,906		178,906
Share-based compensation expense		$ 1.7	$ 0.4	$ 4	$ 4.9
Share-based compensation not yet recognized		$ 10		$ 10
Share-based compensation not yet recognized, period for recognition				2 years 1 month 6 days
Performance vesting period				3 years
Percentage of total units vested	200%
2020 | Performance Based Shares
Share-based Compensation Arrangement by Award [Line Items]
Balance at Beginning of Period (in shares)				84,435
Weighted average grant date fair value (in dollars per share)		$ 59.81		$ 59.81
2021 | Performance Based Shares
Share-based Compensation Arrangement by Award [Line Items]
Balance at Beginning of Period (in shares)				44,011
Forfeited (in shares)				(852)
Balance at End of Period (in shares)		43,159		43,159
Weighted average grant date fair value (in dollars per share)		$ 141		$ 141
Percentage of total units vested				80.70%
2022 | Performance Based Shares
Share-based Compensation Arrangement by Award [Line Items]
Balance at Beginning of Period (in shares)				64,382
Forfeited (in shares)				(1,078)
Balance at End of Period (in shares)		63,304		63,304
Weighted average grant date fair value (in dollars per share)		$ 118.80		$ 118.80
Percentage of total units vested				50%
2023 | Performance Based Shares
Share-based Compensation Arrangement by Award [Line Items]
Granted (in shares)				72,443
Balance at End of Period (in shares)		72,443		72,443
Weighted average grant date fair value (in dollars per share)		$ 104.36		$ 104.36
Percentage of total units vested				125%
Minimum | Performance Based Shares
Share-based Compensation Arrangement by Award [Line Items]
Percentage of total units vested				0%
Maximum | Performance Based Shares
Share-based Compensation Arrangement by Award [Line Items]
Percentage of total units vested				200%

Fair Value Disclosures (Details

Fair Value Disclosures (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Fair Value Disclosures [Line Items]
Notes payable, carrying value	$ 1,190,366	$ 1,117,001
Senior Note Due Twenty Twenty Nine
Fair Value Disclosures [Line Items]
Notes payable, carrying value		300,000
Senior notes, fair value	$ 249,367	$ 246,969

Commitments and Contingencies_2

Commitments and Contingencies (Details) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Other Commitments [Line Items]
Land deposits and option payments (1)	$ 32,427		$ 32,427		$ 22,406
Commitments under the land purchase contracts if the purchases are consummated (1)	$ 620,591		$ 620,591		$ 411,776
Lots under land purchase contracts (1)	15,808		15,808		13,184
Refundable land deposits of purchase contracts of finished lots	$ 13,000		$ 13,000		$ 12,800
Operating Lease, Right-of-Use Asset	5,000		5,000		4,900
Present value of lease liabilities	5,311		5,311		5,182
Operating Lease, Cost	$ 700	$ 500	1,900	$ 1,600
Operating Lease, Payments			$ 1,400	1,300
Operating lease, weighted average discount rate	5.80%		5.80%
Operating lease, weighted average remaining lease term	2 years 4 months 24 days		2 years 4 months 24 days
Letters of credit, surety bonds, and other financials guarantees	$ 382,900		$ 382,900		368,100
Contributions to limited partnership			16,500		$ 11,200
Income from unconsolidated entities	$ 3,200	$ 2,200	$ 8,493	$ 3,990

Commitments and Contingencies F

Commitments and Contingencies Future Minimum Operating Lease Payments (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
2023	$ 439
2024	1,535
2025	1,307
2026	1,145
2027	1,022
Thereafter	596
Total	6,044
Lease amount representing interest	(733)
Present value of lease liabilities	$ 5,311	$ 5,182

Revenues (Details)

Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Home sales revenues	$ 617,539	$ 547,074	$ 1,750,166	$ 1,816,193
Retail
Disaggregation of Revenue [Line Items]
Home sales revenues	574,246	419,213	1,633,826	1,599,570
Wholesale
Disaggregation of Revenue [Line Items]
Home sales revenues	$ 43,293	$ 127,861	$ 116,340	$ 216,623

Segment Information (Details)

Segment Information (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) home business	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments | business			7
Number of reporting segments | home			5
Home sales revenues	$ 617,539,000	$ 547,074,000	$ 1,750,166,000	$ 1,816,193,000
Net income before income taxes	89,449,000	108,701,000	193,206,000	371,263,000
Assets	3,335,011,000		3,335,011,000		$ 3,124,828,000
Gain on sale of interest rate cap		7,100,000	0	7,055,000
Intersegment Eliminations
Segment Reporting Information [Line Items]
Home sales revenues			0
Operating Segments | Central
Segment Reporting Information [Line Items]
Home sales revenues	183,615,000	228,448,000	564,580,000	807,400,000
Net income before income taxes	32,172,000	46,413,000	69,521,000	189,004,000
Assets	1,016,130,000		1,016,130,000		986,779,000
Operating Segments | Southeast
Segment Reporting Information [Line Items]
Home sales revenues	149,593,000	138,478,000	397,618,000	328,510,000
Net income before income taxes	26,786,000	31,593,000	54,166,000	70,358,000
Assets	658,020,000		658,020,000		633,542,000
Operating Segments | Northwest
Segment Reporting Information [Line Items]
Home sales revenues	67,666,000	46,774,000	212,885,000	220,440,000
Net income before income taxes	9,432,000	6,379,000	23,194,000	49,693,000
Assets	505,304,000		505,304,000		485,086,000
Operating Segments | West
Segment Reporting Information [Line Items]
Home sales revenues	94,950,000	65,064,000	256,575,000	244,603,000
Net income before income taxes	9,368,000	8,342,000	15,162,000	27,282,000
Assets	650,489,000		650,489,000		599,714,000
Operating Segments | Florida
Segment Reporting Information [Line Items]
Home sales revenues	121,715,000	68,310,000	318,508,000	215,240,000
Net income before income taxes	15,579,000	9,770,000	37,077,000	30,914,000
Assets	420,056,000		420,056,000		334,824,000
Corporate
Segment Reporting Information [Line Items]
Net income before income taxes	(3,888,000)	$ 6,204,000	(5,914,000)	$ 4,012,000
Assets	$ 85,012,000		$ 85,012,000		$ 84,883,000