AV Homes 10-K 23 Feb 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Feb. 15, 2018	Jun. 30, 2017
Document and Entity Information
Document Fiscal Year Focus	2,017
Entity Registrant Name	AV Homes, Inc.
Entity Central Index Key	39,677
Current Fiscal Year End Date	--12-31
Entity Well-Known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 241,478,230
Entity Common Stock, Shares Outstanding		22,348,223
Document Fiscal Period Focus	FY
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2017

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Assets
Cash and cash equivalents	$ 240,990	$ 67,792
Restricted cash	1,165	1,231
Receivables	13,702	10,827
Land and other inventories	603,851	584,408
Property and equipment, net	32,664	33,680
Prepaid expenses and other assets	17,117	12,753
Deferred tax assets, net	70,365	110,257
Goodwill	30,290	19,285
Total assets	1,010,144	840,233
Liabilities
Accounts payable	35,810	37,387
Accrued and other liabilities	29,193	34,298
Customer deposits	9,507	9,979
Estimated development liability	31,556	32,102
Senior debt, net	472,108	275,660
Total liabilities	578,174	389,426
Stockholders' equity
Common stock, par value $1 per share; Authorized: 50,000,000 shares; Issued: 22,474,821 shares and 22,623,506 shares as of December 31, 2017 and 2016, respectively	22,475	22,624
Additional paid-in capital	404,859	401,558
Accumulated earnings	7,655	29,644
Equity before treasury stock	434,989	453,826
Treasury stock, at cost, 110,874 shares as of December 31, 2017 and 2016, respectively	(3,019)	(3,019)
Total stockholders’ equity	431,970	450,807
Total liabilities and stockholders' equity	$ 1,010,144	$ 840,233

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
Consolidated Balance Sheets
Common stock, par value per share	$ 1	$ 1
Common stock, authorized (in shares)	50,000,000	50,000,000
Common stock, issued (in shares)	22,474,821	22,623,506
Treasury stock, shares	110,874	110,874

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Revenues
Homebuilding	$ 821,616	$ 764,041	$ 498,915
Amenity and other	17,061	11,698	12,385
Land sales	4,576	3,566	6,466
Total revenues	843,253	779,305	517,766
Expenses
Homebuilding cost of revenue	682,504	625,471	405,538
Amenity and other	14,838	11,148	10,702
Land sales	1,785	1,230	823
Total real estate expenses	699,127	637,849	417,063
Selling, general and administrative expenses	106,391	100,219	79,586
Interest income and other	(1,063)	(16)	(308)
Interest expense	10,618	3,667	9,039
Loss on extinguishment of debt	9,848
Total expenses	824,921	741,719	505,380
Income before income taxes	18,332	37,586	12,386
Income tax expense (benefit)	40,268	(109,521)	436
Net income (loss)	$ (21,936)	$ 147,107	$ 11,950
Basic earnings (loss) per share (in dollars per share)	$ (0.98)	$ 6.58	$ 0.54
Basic weighted average shares outstanding (in shares)	22,493	22,346	22,010
Diluted earnings (loss) per share (in dollars per share)	$ (0.98)	$ 5.66	$ 0.54
Diluted weighted average shares outstanding (in shares)	22,493	26,509	22,130

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Treasury Stock	Total
Balance, beginning of period at Dec. 31, 2014	$ 22,183	$ 396,989	$ (129,413)	$ (3,019)	$ 286,740
Balance (in shares) at Dec. 31, 2014	22,182,972			110,874
Increase (Decrease) in Stockholders' Equity
Issuances of restricted stock and stock units	$ 291	(291)
Issuances of restricted stock and stock units (in shares)	291,075
Forfeiture of restricted stock	$ (21)	21
Forfeiture of restricted stock (in shares)	(20,973)
Shares repurchased to satisfy tax obligations	$ (9)	(113)			(122)
Shares repurchased to satisfy tax obligations (in shares)	(9,046)
Share-based compensation		3,113			3,113
Net income (loss)			11,950		11,950
Balance, end of period at Dec. 31, 2015	$ 22,444	399,719	(117,463)	$ (3,019)	301,681
Balance (in shares) at Dec. 31, 2015	22,444,028			110,874
Increase (Decrease) in Stockholders' Equity
Issuances of restricted stock and stock units	$ 347	(347)
Issuances of restricted stock and stock units (in shares)	347,400
Forfeiture of restricted stock	$ (155)	155
Forfeiture of restricted stock (in shares)	(155,027)
Shares repurchased to satisfy tax obligations	$ (12)	(176)			(188)
Shares repurchased to satisfy tax obligations (in shares)	(12,895)
Share-based compensation		2,207			2,207
Net income (loss)			147,107		147,107
Balance, end of period at Dec. 31, 2016	$ 22,624	401,558	29,644	$ (3,019)	450,807
Balance (in shares) at Dec. 31, 2016	22,623,506			110,874
Increase (Decrease) in Stockholders' Equity
Issuances of restricted stock and stock units	$ 40	(40)
Issuances of restricted stock and stock units (in shares)	40,051
Forfeiture of restricted stock	$ (176)	176
Forfeiture of restricted stock (in shares)	(175,972)
Shares repurchased to satisfy tax obligations	$ (13)	(200)			(213)
Shares repurchased to satisfy tax obligations (in shares)	(12,764)
Share-based compensation		3,365	(53)		3,312
Net income (loss)			(21,936)		(21,936)
Balance, end of period at Dec. 31, 2017	$ 22,475	$ 404,859	$ 7,655	$ (3,019)	$ 431,970
Balance (in shares) at Dec. 31, 2017	22,474,821			110,874

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Operating Activities
Net income (loss)	$ (21,936)	$ 147,107	$ 11,950
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	6,897	6,368	3,693
Amortization of share-based compensation	3,312	2,207	3,113
Change in fair value of contingent consideration	(1,818)	(422)	(116)
Impairment charges	943	769	0
Loss on extinguishment of debt	9,848
Deferred income taxes, net	39,892	(110,257)
Other adjustments, net	369	135	(185)
Changes in operating assets and liabilities:
Restricted cash	66	25,717	(10,501)
Receivables	(2,716)	(3,649)	(3,698)
Land and other inventories	19,011	(2,646)	(83,804)
Prepaid expenses and other assets	(5,889)	3,646	1,510
Accounts payable, estimated development liability, and accrued and other liabilities	(12,898)	3,487	17,248
Customer deposits	(472)	1,350	1,813
Net cash provided by (used in) operating activities	34,609	73,812	(58,977)
Investing Activities
Investment in property and equipment	(2,161)	(1,578)	(1,209)
Proceeds from sales of property and equipment	5	11	31
Business acquisitions	(41,150)	10	(93,760)
Investment in unconsolidated entities	(267)	(20)	(2,887)
Net cash used in investing activities	(43,573)	(1,577)	(97,825)
Financing Activities
Proceeds from issuance of debt	400,000		79,930
Gross proceeds from Senior Secured Credit Facility	30,000	35,000	40,000
Payments of Senior Secured Credit Facility	(30,000)	(35,000)	(40,000)
Debt issuance costs	(8,148)		(2,072)
Principal payments of senior debt	(200,000)	(46,793)	(53,163)
Premium paid on redemption of debt	(6,718)
Contingent consideration and other financing activities	(2,972)	(4,548)	(1,329)
Net cash provided by (used in) financing activities	182,162	(51,341)	23,366
Increase (decrease) in cash and cash equivalents	173,198	20,894	(133,436)
Cash and cash equivalents at beginning of year	67,792	46,898	180,334
Cash and cash equivalents at end of year	240,990	67,792	46,898
Non-cash transactions
Transfer from assets held for sale to land and other inventories and property and equipment			4,051
Distribution of land from unconsolidated joint venture			19,860
Supplemental cash flow information:
Interest paid, net of capitalized interest	12,656	2,098	4,846
Income taxes paid	720	$ 1,240
Supplemental non-cash investing activity:
Accrual of contingent consideration as of the acquisition date	$ 1,818		$ 6,000

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 1 - Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements include the accounts of AV Homes, Inc. and all subsidiaries, partnerships and other entities in which AV Homes, Inc. (“AV Homes,” “we,” “us,” “our,” or the “Company”) has a controlling interest. Our investments in unconsolidated entities in which we have less than a controlling interest are accounted for using the equity method. All intercompany accounts and transactions have been eliminated in consolidation. For comparative purposes, certain prior year amounts have been reclassified to conform to the current year presentation. We have no components of comprehensive income (loss), therefore, net income (loss) and comprehensive income (loss) are the same for the years ended December 31, 2017, 2016 and 2015. Use of Estimates The preparation of our consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. TPG Investment in Company TPG Aviator, L.P. (“TPG Aviator”) beneficially owned approximately 43.7% of our common stock as of December 31, 2017, and is our largest single stockholder. In June 2013, concurrent with TPG Aviator’s initial investment, we entered into a Management Services Agreement with TPG VI Management, LLC (“TPG Management”), an affiliate of TPG Aviator, that sets forth certain financial advisory services to be provided by, and fees to be paid to, TPG Management in connection with ongoing services to us. Pursuant to the Management Services Agreement and in exchange for certain ongoing advisory and consulting services, we agreed to pay to TPG Management a monitoring fee up to $0.5 million per year for so long as TPG Aviator and its affiliates own at least 30% of the Common Stock outstanding and also to reimburse expenses incurred by TPG Management and its affiliates to provide services or enforce its rights under the management services agreement. The monitoring fee is reduced proportionately based on TPG Aviator’s board representation rights under a separate Stockholders Agreement we entered into with TPG Aviator. The monitoring fee is payable quarterly in advance and is reduced by director fees otherwise payable to the TPG-nominated directors who are not employed by TPG Aviator or its affiliates. We paid TPG Management a total of $0.4 million during each of the years ended December 31, 2017, 2016 and 2015, for the annual monitoring fee and reimbursement of expenses under the Management Services Agreement. Cash and Cash Equivalents and Restricted Cash We consider all highly liquid investments purchased with an initial maturity of three months or less to be cash equivalents. As of December 31, 2017, our cash and cash equivalents were invested primarily in money market accounts that invest primarily in U.S. government securities. Due to the short maturity period of the cash equivalents, the carrying amount of these instruments approximate their fair values. Our cash items that are restricted as to withdrawal or usage include deposits of $1.2 million as of December 31, 2017 and 2016. Land and Other Inventories and Homebuilding Cost of Revenue Land and other inventories include expenditures for land acquisition, construction, land development, construction costs for homeowners’ association amenities, and direct and allocated indirect costs, including interest cost capitalized until development and construction are substantially completed. These costs are assigned to components of land and other inventories based on specific identification, relative sales value, or area allocation methods. Land and other inventories are stated at cost unless the asset is determined to be impaired, in which case the asset is written to its fair value, in accordance with ASC 360, Property, Plant and Equipment (“ASC 360”). Homebuilding cost of revenue is comprised of direct and allocated costs, including estimated future costs for the limited warranty we provide on our homes. Land acquisition, land development and other common costs are generally allocated on a relative sales value or area allocation basis to the homes or lots within the applicable community or land parcel. Land acquisition and land development costs include related interest and real estate taxes incurred during the period of time under development. We evaluate our land and other inventories for impairment on a quarterly basis in accordance with ASC 360 to reflect market conditions, including a consideration of supply of new and resale homes for sale in the respective market, level of foreclosure activity and competition. For assets held and used, if indicators are present, we perform an impairment test in which the asset is reviewed for impairment by comparing the estimated future undiscounted cash flows to be generated by the asset to its carrying value. If such cash flows are less than the asset’s carrying value, the carrying value is written down to its estimated fair value. Generally, fair value is determined by discounting the estimated cash flows at a rate commensurate with the inherent risks associated with the asset and related estimated cash flow streams. The discount rate used in the determination of fair value would vary, depending on the state of development. Assumptions and estimates used in the determination of the estimated future cash flows are based on expectations of future operations and economic conditions. Changes to these assumptions could significantly affect the estimates of future cash flows, which could affect the potential for future impairments. Due to the uncertainties of the estimation process, actual results could differ significantly from such estimates. During the years ended December 31, 2017 and 2016, our impairment assessments resulted in $0.9 million and $0.8 million of impairment charges, respectively, and are included in homebuilding cost of revenue in the consolidated statements of operations. During the year ended December 31, 2015, our impairment assessment resulted in no significant impairment charges. Receivables Receivables primarily consists of amounts in transit or due from title companies for home closings and rebates. Property and Equipment, net Property and equipment are stated at cost, net of accumulated depreciation, which is computed by the straight-line method over the following estimated useful lives of the assets: land improvements 5 to 15 years; buildings and improvements 3 to 40 years; and machinery, equipment and fixtures 3 to 10 years. Maintenance and operating expenses of equipment utilized in the development of land are capitalized to land inventory. Repairs and maintenance are expensed as incurred. Property and equipment includes amenities assets such as club facilities on properties owned by us. The cost of amenities includes expenditures for land acquisition, construction, land development and direct and allocated costs. Property and equipment owned and constructed by us also includes interest cost incurred during development and construction. Each reporting period, we review our property and equipment for indicators of impairment in accordance with ASC 360. For our amenities, which are located within certain of our communities, indicators of potential impairment are similar to those of our housing communities, as these factors may impact our ability to generate revenues at our amenities or cause construction costs to increase. In addition, we factor in the collectability and potential delinquency of the fees due for our amenity memberships. There were no indicators of impairment during the years ended December 31, 2017 and 2016. Investments in Partnerships and Limited Liability Companies When we are either deemed to hold the controlling interest in a voting interest entity or deemed to be the primary beneficiary of a variable interest entity (“VIE”), we are required to consolidate the investment. Factors considered when determining if we hold the controlling interest in a voting interest entity include who holds the general partnership or managing member interests, which partner or member makes the day-to-day decisions regarding the operations of the entity, and whether or not the other partners or members have substantive participating rights. With respect to VIEs, our variable interests may be in the form of (1) equity ownership, (2) contracts to purchase assets and/or (3) loans provided by us to the investor. We examine specific criteria and use judgment when determining if we are the primary beneficiary of a VIE. The primary beneficiary of a VIE is the entity that has both of the following characteristics: (a) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and (b) the obligation to absorb the majority of losses of the VIE or the right to receive the majority of benefits from the VIE. Investments, including joint ventures with independent third parties, where we do not hold the controlling interest and we are not the primary beneficiary, but over which we have significant influence, are accounted for under the equity method. Under the equity method of accounting, we recognize our proportionate share of the earnings and losses of these entities. The balance of our investments in unconsolidated entities was $0.3 million and $1.2 million as of December 31, 2017 and December 31, 2016, respectively, and is included in prepaid expenses and other assets in our consolidated balance sheets. We evaluate our investments in unconsolidated entities for recoverability in accordance with ASC 323, Investments – Equity Method and Joint Ventures . If we determine that a loss in the value of the investment is other than temporary, we write down the investment to its estimated fair value. Any such losses are recorded to equity in (earnings) loss of unconsolidated entities in the consolidated statements of operations. Due to uncertainties in the estimation process and the significant volatility in demand for new housing, actual results could differ significantly from such estimates. There were no indicators of impairment during the years ended December 31, 2017 and 2016. Business Acquisitions When acquiring a business, we allocate the purchase price to the tangible and intangible assets and liabilities assumed based on their estimated fair values. In making estimates of fair values for this purpose, we use a number of sources, including independent appraisals and information obtained about each property as a result our pre-acquisition due diligence and its marketing and housing activities. See Note 2, Business Acquisitions . Goodwill Goodwill arises from business combinations and represents the excess of the cost of an acquired entity over the net fair value amounts that were assigned to the identifiable assets acquired and the liabilities assumed. Goodwill is tested for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying value. There were no indicators of impairment during the years ended December 31, 2017 and 2016. Revenue Recognition In accordance with ASC 360, homebuilding revenue and related profit from the sales of housing units are recognized when title to and possession of the property are transferred to the buyer. In addition, revenue from land sales is recognized in full at closing, provided the buyer’s initial and continuing investment is adequate, any financing is considered collectible and there is no significant continuing involvement. Sales Incentives When sales incentives involve a discount on the selling price of the home, we record the discount as a reduction of revenue at the time of home closing. If the sales incentive requires us to provide a free product or service to the customer, the cost of the free product or service is recorded as cost of revenues at the time of home closing. This includes the cost related to optional upgrades and seller-paid financing costs, closing costs, homeowners’ association fees, or merchandise. Advertising Costs Advertising costs are expensed as incurred. During the years ended December 31, 2017, 2016 and 2015, advertising costs totaled $4.0 million, $3.6 million and $3.0 million, respectively. Advertising costs, sales commissions and closing costs are included in selling, general and administrative expenses in the accompanying consolidated statements of operations. Warranty Costs Warranty reserves for homes are established to cover estimated costs for materials and labor with regard to warranty-type claims to be incurred subsequent to the closing of a home. Reserves are determined based on historical data and other relevant factors. We have, and require our subcontractors to have, general liability, property, workers’ compensation, and other business insurance. These insurance policies protect us against a portion of our risk of loss from claims, subject to certain self-insured per occurrence and aggregate retentions, deductibles, and available policy limits. We may have recourse against subcontractors for certain claims relating to workmanship and materials. Warranty reserves are included in accrued and other liabilities in the consolidated balance sheets. During the years ended December 31, 2017, 2016 and 2015, changes in the warranty reserve consisted of the following (in thousands): For the Years Ended December 31, 2017 2016 2015 Accrued warranty reserve, beginning of period $ 4,033 $ 3,333 $ 1,528 Reserve provided 5,089 3,864 3,974 Payments (4,206) (3,164) (2,169) Accrued warranty reserve, end of period $ 4,916 $ 4,033 $ 3,333 Income Taxes The provision for income taxes is calculated using the asset and liability method, under which deferred tax assets and liabilities are recognized by identifying the temporary differences arising from the different treatment of items for tax and accounting purposes. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is primarily dependent upon the generation of future taxable income. See Note 11, Income Taxes . In determining the future tax consequences of events that have been recognized in the financial statements or tax returns, judgment is required. Differences between the anticipated and actual outcomes of these future tax consequences could have a material impact on our consolidated results of operations or financial position. Share-Based Compensation The Amended and Restated 1997 Incentive and Capital Accumulation Plan (2011 Restatement), as amended (“Incentive Plan”) and the 2015 Incentive Compensation Plan, as amended and restated (the “2015 Plan”) provide for the grant of stock options, stock appreciation rights, stock awards, performance awards, and stock units to officers, employees and directors of AV Homes. The exercise prices of stock options granted under the Incentive Plan and the 2015 Plan may not be less than the stock exchange closing price of our common stock on the date of grant. Stock option awards under the Incentive Plan and 2015 Plan generally expire 10 years after the date of grant. As of December 31, 2017, there were an aggregate of 1.5 million shares available for grant under the 2015 Plan and 0.3 million shares reserved for future issuance relating to stock options and restricted stock units previously awarded and currently outstanding under the 2015 Plan. Additionally, as of December 31, 2017, an aggregate of 0.5 million shares of our common stock were reserved for future issuance in connection with stock options and restricted stock units previously awarded under the Incentive Plan. See Note 10, Share-Based Payments and Other Compensation . Employee Benefit Plans We have a defined contribution savings plan that covers substantially all employees. Under this savings plan, we may contribute to the plan based upon specified percentages of employees’ voluntary contributions. During the years ended December 31, 2017 and 2016, we contributed $0.3 million and $0.3 million to the plan, respectively. We made no contributions to the plan for the year ended December 31, 2015. Earnings (Loss) Per Share Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of AV Homes. The weighted average number of shares outstanding in calculating basic earnings (loss) per share includes the addition of 0.1 million shares in 2017, 2016 and 2015, each in connection with the vesting of restricted stock and restricted stock units each year. Excluded from the weighted average number of shares outstanding are 0.1 million shares for 2016 and 0.3 million shares for 2015 associated with annual restricted stock awards that remain subject to vesting and performance requirements. There were no shares excluded in 2017. See Note 10, Share-Based Payments and Other Compensation . In accordance with ASC 260, Earnings Per Share , nonvested shares are not included in basic earnings (loss) per share until the vesting and performance requirements are met. The following table represents a reconciliation of the net income (loss) and weighted average shares outstanding for the calculation of basic and diluted earnings (loss) per share for the years ended December 31, 2017, 2016 and 2015 (in thousands, except per share amounts): For the Years Ended December 31, 2017 2016 2015 Numerator: Basic net income (loss) $ (21,936) $ 147,107 $ 11,950 Effect of dilutive securities — 2,969 — Diluted net income (loss) $ (21,936) $ 150,076 $ 11,950 Denominator: Basic weighted average shares outstanding 22,493 22,346 22,010 Effect of dilutive securities — 4,163 120 Diluted weighted average shares outstanding 22,493 26,509 22,130 Basic earnings (loss) per share $ (0.98) $ 6.58 $ 0.54 Diluted earnings (loss) per share $ (0.98) $ 5.66 $ 0.54 Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment (“ASU 2017-04”), which removes the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for us for annual and interim periods beginning January 1, 2020, with early adoption permitted, and applied prospectively. We adopted this guidance in the first quarter of 2017 and there was no impact on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business (“ASU 2017-01”). ASU 2017-01 clarifies the definition of a business with the objective of addressing whether transactions involving in-substance nonfinancial assets, held directly or in a subsidiary, should be accounted for as acquisitions or disposals of nonfinancial assets or of businesses. ASU 2017-01 is effective for us for the fiscal year and interim periods beginning January 1, 2018, with early adoption permitted, and applied prospectively. We do not anticipate the adoption of ASU 2017-01 to have a material impact on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 reduces the existing diversity in practice in financial reporting across all industries by clarifying certain existing principles in ASC 230, Statement of Cash Flows , including providing additional guidance on how and what an entity should consider in determining the classification of certain cash flows. ASU 2016-15 is effective for us for the fiscal year and interim periods beginning January 1, 2018. The adoption of ASU 2016-15 will modify our current disclosures within the consolidated statements of cash flows but is not expected to have a material effect on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions. ASU 2016-09 became effective for us for fiscal years and interim periods beginning January 1, 2017. Amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements and forfeitures were applied on a modified retrospective transition method through a cumulative-effect adjustment to equity as of January 1, 2017. The adoption of the provisions of ASU 2016-09 in the first quarter of 2017 had no material effect on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 will require organizations that lease assets–referred to as “lessees”–to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Under ASU 2016-02, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than twelve months. Lessor accounting remains substantially similar to current GAAP. In addition, disclosures of leasing activities are to be expanded to include qualitative along with specific quantitative information. ASU 2016-02 is effective for us for fiscal years and interim periods beginning January 1, 2019. The standard mandates a modified retrospective transition method. We continue to evaluate the impact of adopting this guidance on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The standard is a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. ASU 2014-09 also affects certain industry-specific cost guidance. The FASB has also issued several updates to this standard. The standard is effective for us for annual and interim periods beginning January 1, 2018, and we plan to apply the modified retrospective method of adoption. We have evaluated the impact of the adoption of ASU 2014-09 and concluded that there will not be a material change to the amount or timing of our homebuilding, amenity and other, and land sales revenues. Our homebuilding revenue currently includes forfeited customer deposits. This classification will not change under the new standard. However, the standard will impact the timing of recognition for certain selling costs related to model homes and sales offices. Prior to the adoption of ASU 2014-09, for selling communities, these costs were capitalized as land and other inventories and expensed as homes in the communities were closed in accordance with ASC 970-340. Upon adoption, the balance of these capitalized selling costs will be recorded as either land and other inventories or property and equipment, while the remaining costs that would have been expensed under the new guidance will be reflected as an adjustment to retained earnings on January 1, 2018. We expect that adjustment to be a decrease of approximately $1.4 million in our land and other inventories and retained earnings balances.

Business Acquisitions

Business Acquisitions	12 Months Ended
	Dec. 31, 2017
Business Acquisitions
Business Acquisition	Note 2 - Business Acquisitions Our acquisitions are accounted for in accordance with ASC 805, Business Combinations (“ASC 805”). We record the acquired assets and assumed liabilities at their estimated fair values. We determine the estimated fair values with the assistance of appraisals or valuations performed by independent third-party specialists, discounted cash flow analyses, quoted market prices where available, and estimates by management. To the extent the consideration transferred exceeds the fair value of the net assets acquired in a transaction, such excess is assigned to goodwill. Receivables and other assets, property and equipment, accounts payable and accrued and other liabilities and customer deposits are generally stated at historical carrying values given the short-term nature of these assets and liabilities. Liabilities are recorded at historical carrying values in accordance with ASC 805, which we believe approximates fair value. We determine the fair value of land and other inventories on a lot-by-lot basis primarily using market comparable land and home sales transactions combined with our estimates related to expected average home selling prices and sales incentives, expected sales paces and cancellation rates, expected land development and construction timelines, and anticipated land development, construction, and overhead costs. Such estimates must be made for each individual community and may vary significantly between communities. The fair values of identified intangible assets are determined using discounted cash flow models. We engage a third-party valuation specialist to assist with the determination of the estimated fair value of intangible assets acquired. We estimate the preliminary fair value of acquired assets and liabilities as of the date of acquisition based on information available at that time. The valuation of these tangible and identifiable intangible assets and liabilities is subject to further management review and may change during the purchase price allocation period. Savvy Homes Acquisition On April 3, 2017, we acquired substantially all of the assets of Savvy Homes, LLC and certain of its affiliated entities (“Savvy Homes”) for approximately $43 million, which included an earn-out of $1.8 million, which was subject to customary post-closing adjustments. As of December 31, 2017, we revised our estimated earn-out payment to zero as we do not expect Savvy Homes to meet the required performance targets. The $1.8 million of income is included in selling, general and administrative expenses in the consolidated statements of operations. The assets acquired included substantially all of the real estate, land acquisition agreements and permits associated with the Savvy Homes business, and certain of its leases, contracts, commitments and purchase orders. We also assumed certain liabilities of Savvy Homes, including the liabilities and obligations relating to the acquired contracts, but excluding other liabilities including home warranty obligations relating to homes closed by Savvy Homes prior to the acquisition. Savvy Homes acquires raw and developed land, develops raw land and constructs single-family homes in the Raleigh, North Carolina area and enhances our position in a key growth market. The results of operations of Savvy Homes are included in our consolidated financial statements from the acquisition date of April 3, 2017. During the year ended December 31, 2017, Savvy Homes’ revenue and net loss included in our 2017 consolidated financial statements were $53.2 million and $4.0 million, respectively. The $4.0 million net loss does not include income of $1.8 million from the reversal of the earn-out liability, which is included in our corporate general and administrative expenses. The following table summarizes the calculation of the fair value of the total consideration transferred to Savvy Homes and its allocation to the assets acquired and liabilities assumed as of the acquisition date (in thousands): Fair value of consideration transferred: Cash paid for Savvy Homes net assets $ 41,150 Contingent consideration (earn-out) 1,818 Total consideration transferred $ 42,968 Assets acquired and liabilities assumed: Assets Receivables and other assets $ 159 Land and other inventories 39,311 Property and equipment 168 Trade name 407 Goodwill 11,005 Total assets acquired 51,050 Liabilities Accounts payable 7,692 Accrued and other liabilities 390 Total liabilities assumed 8,082 Total net assets acquired $ 42,968 The $0.4 million of acquired intangible assets relates to trade names that are being amortized over 2.75 years. Amortization expense for these assets was $0.1 million for the year ended December 31, 2017 and is included in selling, general and administrative expenses in the consolidated statements of operations. Transaction and integration costs directly related to the Savvy Homes acquisition, including legal and accounting fees, were $1.0 million year ended December 31, 2017 and are included in selling, general and administrative expenses in the consolidated statements of operations. Such costs were expensed as incurred in accordance with ASC 805. The following represents the unaudited pro forma operating results as if Savvy Homes had been included in our consolidated statements of operations and as of the beginning of the fiscal year presented (in thousands, except per share data): Year Ended December 31, 2017 2016 Revenue $ 860,723 $ 850,937 Net income (loss) (21,722) 150,195 Basic earnings (loss) per share (0.97) 6.72 Diluted earnings (loss) per share (0.97) 5.78 The supplemental pro forma operating results have been determined after adjusting the operating results of Savvy Homes to reflect additional expense that would have been recorded assuming the fair value adjustments to inventory and intangible assets had been applied as of January 1, 2016. These results may not be indicative of future operating results. Bonterra Builders Acquisition On July 1, 2015, we acquired substantially all of the assets and certain liabilities of Bonterra Builders, LLC (“Bonterra Builders”) for approximately $99.8 million. The earn-out was $5.7 million, which has been paid as of December 31, 2017. A portion of the aggregate consideration equal to $0.8 million was held back by us at the closing as security for Bonterra Builder’s indemnification and other potential obligations under the purchase agreement, which has been fully paid as of December 31, 2017. Bonterra Builders acquires raw and developed land, develops raw land and constructs single-family homes in the Charlotte, North Carolina area. With approximately 1,700 lots owned or controlled at the time of acquisition, Bonterra Builders significantly enhanced our position in a key growth market. The results of Bonterra Builders’ operations are included in our consolidated financial statements from the acquisition date of July 1, 2015. We acquired substantially all of the assets of Bonterra Builders, including all of its real estate, land acquisition agreements and permits, and certain of its leases, contracts, commitments and purchase orders. We also assumed certain liabilities of Bonterra Builders, including the liabilities and obligations relating to the acquired contracts, but excluding certain home warranty obligations relating to homes closed by Bonterra Builders prior to the acquisition. The following table summarizes the calculation of the fair value of the total consideration transferred to Bonterra Builders and the amounts of assets acquired and liabilities assumed as of the acquisition date (in thousands): Fair value of consideration transferred: Cash paid for Bonterra Builders net assets $ 40,818 Contingent consideration (earn-out) 6,000 Debt repaid at closing 52,941 Total consideration transferred $ 99,759 Assets acquired and liabilities assumed: Assets Receivables and other assets $ 574 Land and other inventories 91,632 Property and equipment 14 Trade name 1,400 Non-compete intangible asset 600 Goodwill 13,223 Total assets acquired 107,443 Liabilities Accounts payable 5,071 Accrued and other liabilities 763 Customer deposits 1,850 Total liabilities assumed 7,684 Total net assets acquired $ 99,759 The $2.0 million of acquired intangible assets relates to trade names and non-compete agreements that are being amortized over five years and three years, respectively. Amortization expense for these assets totaled $0.5 million, $0.4 million and $0.3 million for the years ended December 31, 2017, 2016 and 2015, respectively, which is included in the consolidated statements of operations within selling, general and administrative expenses. During the year ended December 31, 2015, goodwill decreased by $1.7 million due to a post-closing purchase price adjustment and a revision of the valuation of the earn-out, as we finalized our acquisition accounting. Transaction and integration costs directly related to the Bonterra Builders acquisition, including legal and accounting fees, totaled $0.9 million for the year ended December 31, 2015, the majority of which are included in the consolidated statements of operations within selling, general and administrative expenses. Such costs were expensed as incurred in accordance with ASC 805. The following represents the unaudited pro forma operating results as if Bonterra Builders had been included in the Company’s consolidated statements of operations as of the beginning of the fiscal year presented (in thousands): Year Ended December 31, 2015 Revenue $ 588,533 Net income 17,158 The supplemental pro forma operating results have been determined after adjusting the operating results of Bonterra Builders to reflect additional expense that would have been recorded assuming the fair value adjustments to inventory and intangible assets had been applied as of January 1, 2015. These results may not be indicative of future operating results. The amount of revenue and net income of Bonterra Builders included in the consolidated statements of operations for 2017 is $168.8 million and $7.2 million, respectively. The amount of revenue and net income of Bonterra Builders included in the consolidated statements of operations for 2016 is $177.6 million and $7.9 million, respectively.

Land and Other Inventories

Land and Other Inventories	12 Months Ended
	Dec. 31, 2017
Land and Other Inventories
Land and Other Inventories	Note 3 - Land and Other Inventories As of December 31, 2017 and 2016, land and other inventories consisted of the following (in thousands): December 31, 2017 2016 Land held for future development $ 29,312 $ 29,089 Land developed and in process of development 351,798 349,891 Homes completed or under construction 222,741 205,428 Total $ 603,851 $ 584,408 We capitalize interest to inventories during the period of development in accordance with ASC 835, Interest (“ASC 835”). Homebuilding interest capitalized as cost of inventories is included in cost of sales as related units or lots are sold. To the extent our homebuilding debt exceeds our qualified assets, as defined in ASC 835, we expense a portion of interest incurred. Qualified homebuilding assets consist of land, lots and homes, excluding finished unsold homes or finished models, that are under development or construction. The following table represents interest incurred, interest capitalized, and interest expense for December 31, 2017, 2016 and 2015 (in thousands): For the Years Ended December 31, 2017 2016 2015 Interest incurred $ 32,490 $ 26,145 $ 28,207 Interest capitalized (21,872) (22,478) (19,168) Interest expense $ 10,618 $ 3,667 $ 9,039

Property and Equipment, net

Property and Equipment, net	12 Months Ended
	Dec. 31, 2017
Property and Equipment, net
Property and Equipment	Note 4 - Property and Equipment, net As of December 31, 2017 and 2016, property and equipment, net consisted of the following (in thousands): December 31, 2017 2016 Land improvements $ 24,420 $ 23,820 Building 38,821 38,367 Equipment 5,877 5,185 Motor vehicles 521 521 Furniture and fixtures 4,016 4,033 Capitalized software 2,291 2,099 Gross property and equipment 75,946 74,025 Less: accumulated depreciation (43,282) (40,345) Property and equipment, net $ 32,664 $ 33,680 As of December 31, 2017, we had $2.1 million of equipment with $1.7 million of accumulated depreciation that were financed with capital leases. The amortization of these assets is recorded as depreciation expense and is included within selling, general and administrative expenses on our consolidated statements of operations.

Investments in Unconsolidated E

Investments in Unconsolidated Entities	12 Months Ended
	Dec. 31, 2017
Investments in Unconsolidated Entities
Investments in Unconsolidated Entities	Note 5 - Investments in Unconsolidated Entities We participate in entities with less than 100% equity interests. One entity in which we have a 58% equity interest, was formed for the purpose of acquiring and developing land in our Encore active adult community in Arizona while the other is a mortgage joint venture in which we have a 50% equity interest, was formed in the fourth quarter of 2017 to serve as a preferred lender for homebuyers in our markets along with other related services. We determine the method for accounting for our investment at inception or upon a reconsideration event. We share in the profits and losses of unconsolidated entities generally in accordance with our ownership interests. Earnings from investments in unconsolidated entities is included within interest income and other in our consolidated statement of operations. We and our equity partners make initial and ongoing capital contributions to these unconsolidated entities on a pro-rata basis. The obligation to make capital contributions is governed by each unconsolidated entity’s respective operating agreement or other governing documents. We made contributions totaling less than $0.3 million, less than $0.1 million and $2.9 million to our unconsolidated entities during the years ended December 31, 2017, 2016 and 2015, respectively. The balance of our investments in unconsolidated entities was $0.3 million and $1.2 million as of December 31, 2017 and December 31, 2016, respectively, and is included in prepaid expenses and other assets in our consolidated balance sheets.

Senior Debt

Senior Debt	12 Months Ended
	Dec. 31, 2017
Debt
Senior Notes	Note 6 - Senior Debt As of December 31, 2017 and 2016, senior debt, net consisted of the following (in thousands): December 31, 2017 2016 6.625% Senior Notes due 2022 $ 400,000 $ — 6.00% Senior Convertible Notes due 2020 80,000 80,000 8.50% Senior Notes due 2019 — 200,000 Senior Unsecured Credit Facility — — Senior Secured Credit Facility — — Total senior debt 480,000 280,000 Deferred debt issuance costs (7,853) (4,285) Debt discount (39) (55) Total senior debt, net $ 472,108 $ 275,660 6.625% Senior Notes due 2022 On May 18, 2017, we completed a private offering of $400.0 million of our 6.625% Senior Notes due 2022 (the “6.625% Notes”). The proceeds of the 6.625% Notes were used to (i) fund the repurchase and redemption of the $200.0 million in aggregate principal amount of our outstanding 8.50% Notes and (ii) pay amounts outstanding under our Senior Secured Credit Facility (as defined below), totaling $30.0 million. We intend to use the remaining proceeds for general corporate purposes, which may include the financing of acquisitions. The 6.625% Notes mature on May 15, 2022, unless earlier redeemed or repurchased. Interest on the 6.625% Notes is payable semi-annually in arrears in cash on May 15 and November 15 of each year, commencing November 15, 2017. We have the option to redeem all or a portion of the 6.625% Notes at any time on or after May 15, 2019 at certain redemption prices, plus accrued and unpaid interest, if any, to but excluding the date of redemption. At any time prior to May 15, 2019, we have the option to redeem up to 35% of the original principal amount of the 6.625% Notes with the proceeds of certain equity offerings by us at a redemption price of 106.625% of the principal amount of the 6.625% Notes, plus accrued and unpaid interest, if any, to but excluding the date of redemption, provided that at least 65% of the original aggregate principal amount of the 6.625% Notes remains outstanding after such redemption. Prior to May 15, 2019, we may redeem some or all of the 6.625% Notes at a redemption price equal to 100% of the principal amount of the 6.625% Notes, plus accrued and unpaid interest, if any, to but excluding the applicable redemption date plus the applicable “make-whole” premium. The indenture governing the 6.625% Notes contains covenants that limit our ability and the ability of certain of our subsidiaries to (i) pay dividends, or make other distributions or redeem or repurchase our capital stock; (ii) prepay, redeem or repurchase certain debt; (iii) incur additional and guarantee indebtedness; (iv) issue certain preferred stock or similar equity securities; (v) make loans and investments; (vi) incur liens; (vii) sell assets; (viii) enter into transactions with affiliates; (ix) enter into agreements restricting our subsidiaries’ ability to pay dividends; and (x) consolidate, merge or sell all or substantially all assets. These covenants are subject to important exceptions and qualifications. The indenture further provides that upon certain specified change of control events, certain covenants will no longer apply to the 6.625% Notes and will be replaced with new covenants (a “Covenant Replacement Event”). Additionally, if we experience specific kinds of changes in control that do not result in a Covenant Replacement Event or, if following a Covenant Replacement Event we experience a subsequent change of control that result in a downgrade of the rating assigned to the 6.625% Notes, holders of the 6.625% Notes will be entitled to require us to purchase all or a portion of the 6.625% Notes at 101% of their principal amount, plus accrued and unpaid interest to but excluding the date of repurchase. Certain of our subsidiaries are guarantors of the 6.625% Notes. All of the subsidiary guarantors are 100% owned by us, and all of the guarantees are full, unconditional, and joint and several. We have no independent assets or operations, and our subsidiaries, other than the subsidiary guarantors, are minor. In August 2017, we satisfied our obligation to exchange the 6.625% Notes and related guarantees for registered notes and guarantees having substantially the same terms. We have assessed the 6.625% Notes and concluded that the impact of any embedded derivative features are not material as of December 31, 2017. 6.00% Senior Convertible Notes due 2020 On June 23, 2015, we completed a private offering of $80.0 million aggregate principal amount of 6.00% Senior Convertible Notes due 2020 (the “6.00% Notes”). The 6.00% Notes were issued in exchange for $15.4 million aggregate principal amount of 7.50% Exchange Notes and $64.5 million in cash. We used $30.7 million of the net cash proceeds from the sale of the 6.00% Notes to (i) repurchase 7.50% Exchange Notes and 7.50% Notes and (ii) pay approximately $1.5 million of accrued interest (in respect of the notes being exchanged or repurchased) and premium (in respect of the notes being repurchased). The 6.00% Notes will mature on July 1, 2020, unless earlier repurchased or converted. The 6.00% Notes are governed by the Indenture dated February 4, 2011 and the Third Supplemental Indenture dated June 23, 2015 between us and the trustee named therein. The 6.00% Notes bear regular cash interest on the principal amount of each note, payable semiannually in arrears on January 1 and July 1 of each year, beginning on January 1, 2016. The 6.00% Notes were issued pursuant a series of separate, privately negotiated note purchase agreements entered into on June 17, 2015 by us and certain qualified institutional buyers. TPG Aviator, L.P. (“TPG”) purchased $20.0 million aggregate principal amount of 6.00% Notes for $20.0 million in cash and waived its rights to purchase additional 6.00% Notes, resulting in a fully diluted beneficial ownership of approximately 43.5% of our common stock for TPG. Pursuant to the terms of the Company’s Related Person Transaction Policy, the audit committee of the Company’s board of directors reviewed and approved the terms of the 6.00% Notes and TPG’s purchase of 6.00% Notes. 8.50% Senior Notes due 2019 On June 30, 2014, we completed an underwritten offering for $200.0 million aggregate principal amount of our 8.50% Senior Notes due 2019 (the “8.50% Notes”). The 8.50% Notes were scheduled to mature on July 1, 2019, unless earlier converted, redeemed or repurchased. Interest on the 8.50% Notes was 8.50% per year, payable semi-annually in arrears in cash on January 1 and July 1 of each year, commencing January 1, 2015. The 8.50% Notes were redeemable at our option, in whole or in part, at any time on or after July 1, 2016, at certain redemption prices, together with accrued and unpaid interest, if any, to but excluding the date of redemption. Certain of our subsidiaries were guarantors of the 8.50% Notes. All of the subsidiary guarantors are 100% owned by us, and all of the guarantees are full, unconditional, and joint and several. We have no independent assets or operations, and our subsidiaries, other than the subsidiary guarantors, are minor. On May 18, 2017, in conjunction with the completion of our private offering of $400.0 million of the 6.625% Notes, we repurchased $45.5 million aggregate principal amount of the 8.50% Notes representing approximately 23% of the total principal amount outstanding. Holders of the tendered notes received the total consideration of $1,038.87 per $1,000 principal amount of 8.50% Notes tendered, which includes an early tender payment of $6.99 per $1,000 principal amount of 8.50% Notes tendered. In addition, holders of the tendered notes received accrued and unpaid interest up to, but not including, May 18, 2017. Effective July 1, 2017, we redeemed the remaining $154.5 million principal of our 8.50% Notes. During the year ended December 31, 2017, we recognized a loss on extinguishment of debt of $9.8 million, which includes a redemption premium of $4.9 million and the write-off of unamortized debt issuance costs. Senior Unsecured Credit Facility On May 18, 2017, we entered into an unsecured revolving credit agreement (the “Senior Unsecured Credit Facility”) with each of the financial institutions party thereto, JPMorgan Chase Bank, N.A., as administrative agent, and Citibank, N.A., as syndication agent. As of June 30, 2017, the Senior Unsecured Credit Facility had replaced the previously outstanding Senior Secured Credit Facility. The Senior Unsecured Credit Facility has substantially similar terms and provisions to the Senior Secured Credit Facility, except that the facility is no longer secured by substantially all of our assets and the assets of certain of our subsidiaries. The Senior Unsecured Credit Facility includes a revolving credit facility in an aggregate principal amount of up to $155.0 million, with an “accordion” feature that allows us, with the consent of the lenders, to increase the aggregate amount to $250.0 million. The facility includes a letter of credit sub-facility in an amount equal to 50% of total commitments then in effect. The maximum amount available under the Senior Unsecured Credit Facility is limited to the lesser of (i) $155.0 million (subject to increase pursuant to the “accordion”) and (ii) an amount equal to the borrowing base minus our consolidated senior debt. The borrowing base includes 100% of unrestricted cash, to the extent it exceeds the interest reserve, and escrowed deposits and funds payable to us following the sale of real property, plus the following, subject to certain limitations: · 85% of the book value of our real property that is under contract or under construction and is or is planned to be residential housing units or model homes; plus · 65% of the book value of our finished lots and lots under development; plus · 50% of the book value of our entitled lands that are not finished lots or lots under development. To be included in the borrowing base, the real property must be owned by us or one of our subsidiaries that guarantees the Company’s obligations under the Senior Unsecured Credit Facility and meet certain criteria. As of September 30, 2017, we had sufficient qualified assets in the borrowing base to cover borrowings of up to $155.0 million and had no borrowings outstanding. Interest will be payable on revolving credit borrowings at variable rates determined by the applicable LIBOR plus 3.25% or the prime rate plus 2.25%, at our election. We pay quarterly fees of 0.50% per annum on the unused portion of the lenders’ commitments under the Senior Unsecured Credit Facility to the lenders. The Senior Unsecured Credit Facility expires on July 28, 2020. Upon expiration, all borrowings become due and payable. We may prepay loans borrowed under the Senior Unsecured Credit Facility or reduce the commitments thereunder at our option, without any prepayment fee or penalty. The Senior Unsecured Credit Facility is guaranteed by certain of our subsidiaries, and we have the option to add or remove guarantors from time to time, subject to certain limitations. The Senior Unsecured Credit Facility contains certain restrictions and covenants, which, among other things, restrict our ability to acquire or merge with another entity, make investments, loans or guarantees, incur additional indebtedness, create liens or other encumbrances, or pay cash dividends or make other distributions. The Senior Unsecured Credit Facility also requires that we comply with the following financial covenants as of the end of each fiscal quarter: · our leverage ratio may not exceed 60%; · if our interest coverage ratio is less than 1.50 to 1.00, we must deposit to an interest reserve account an amount equal to the interest we have incurred on all indebtedness during the prior twelve months; and · our consolidated tangible net worth, excluding the tangible net worth of our subsidiaries that do not guarantee the Senior Unsecured Credit Facility unless such subsidiaries are a subsidiary of a guarantor, must be at least $325.1 million plus 50% of our cumulative consolidated net income since December 31, 2016 plus 50% of the net proceeds of any equity offerings. We were in compliance with all financial covenants as of December 31, 2017. Maturities of senior notes as of December 31, 2017 are as follows (in thousands): Total 2018 $ — 2019 — 2020 80,000 2021 — 2022 400,000 Thereafter — Total $ 480,000

Lease Commitments

Lease Commitments	12 Months Ended
	Dec. 31, 2017
Lease Commitments
Lease Commitments	Note 7 - Lease Commitments We lease the majority of our administration and sales offices under operating leases that expire at varying times through 2025. Rental expense was $1.1 million, $1.2 million and $0.9 million in 2017, 2016 and 2015, respectively. The following table reflects lease commitments as of December 31, 2017 (in thousands): Payments Due By Period 2018 2019 2020 2021 2022 Thereafter Total Noncancelable operating leases $ 1,456 $ 1,483 $ 1,195 $ 889 $ 689 $ 1,459 $ 7,171 Capital lease obligations 151 44 — — — — 195 Leased model homes 156 — — — — — 156 Total $ 1,763 $ 1,527 $ 1,195 $ 889 $ 689 $ 1,459 $ 7,522

Accrued and Other Liabilities

Accrued and Other Liabilities	12 Months Ended
	Dec. 31, 2017
Accrued and Other Liabilities
Accrued and Other Liabilities	Note 8 - Accrued and Other Liabilities As of December 31, 2017 and 2016, accrued and other liabilities consisted of the following (in thousands): December 31, 2017 2016 Accrued interest $ 5,786 $ 10,900 Accrued compensation 7,307 6,865 Warranty reserve 4,916 4,033 Infrastructure obligations 6,075 5,979 Contingent consideration — 2,400 Other 5,109 4,121 Total $ 29,193 $ 34,298

Estimated Development Liability

Estimated Development Liability	12 Months Ended
	Dec. 31, 2017
Estimated Development Liability
Estimated Development Liability	Note 9 - Estimated Development Liability The estimated development liability consists primarily of utilities improvements in Poinciana, Florida and Rio Rico, Arizona for more than 8,000 home sites previously sold, in most cases prior to 1980. The estimated development liability is reduced by actual expenditures and is evaluated and adjusted, as appropriate, to reflect management’s estimate of potential completion costs. In addition, we obtain third-party engineer evaluations on an annual basis and adjust this liability as necessary to reflect changes in the estimated completion costs. During the years ended December 31, 2017, 2016 and 2015, cash expenditures associated with these obligations were each $0.5 million. Future increases or decreases of costs for construction, material and labor, as well as other land development and utilities infrastructure costs, may have a significant effect on the estimated development liability. The balance of the estimated development liability was $31.6 million and $32.1 million as of December 31, 2017 and 2016, respectively.

Share-Based Payments and Other

Share-Based Payments and Other Compensation	12 Months Ended
	Dec. 31, 2017
Share-Based Payments and Other Compensation
Share-Based Payments and Other Compensation	Note 10 - Share-Based Payments and Other Compensation The Amended and Restated 1997 Incentive and Capital Accumulation Plan (2011 Restatement), as amended (“Incentive Plan”) and the 2015 Incentive Compensation Plan, as amended and restated (the “2015 Plan”) provide for the grant of stock options, stock appreciation rights, stock awards, performance awards, and stock units to officers, employees and directors of AV Homes. The exercise prices of stock options granted under the Incentive Plan or the 2015 Plan may not be less than the stock exchange closing price of our common stock on the date of grant. Stock option awards under the Incentive Plan and 2015 Plan generally expire 10 years after the date of grant. As of December 31, 2017, there were an aggregate of 1.5 million shares available for grant under the 2015 Plan and 0.3 million shares reserved for future issuance relating to restricted stock units previously awarded and currently outstanding under the 2015 Plan. Additionally, as of December 31, 2017, an aggregate of 0.5 million shares of our common stock were reserved for future issuance in connection with options and restricted stock units previously awarded under the Incentive Plan. During 2017, we granted 75,718 service-based restricted stock units, which vest ratably over four years, and 82,349 shares of performance-based restricted stock units, which will vest, if at all, upon the attainment of certain performance conditions in future periods. We also granted 95,674 stock options, which vest ratably over four years. Additionally, we granted 25,926 restricted stock units to non-employee directors for service on our Board for the term beginning at the 2017 Annual Meeting of Stockholders, which will vest and be converted into an equivalent number of shares of common stock upon the earlier of the first anniversary of the date of the award and the date immediately preceding the date of AV Homes’ 2018 Annual Meeting of Stockholders, provided that the director is a member of the board of directors on such vesting date. Compensation expense related to the stock option, restricted stock, and restricted stock unit awards during the years ended December 31, 2017, 2016 and 2015 was $3.3 million, $2.4 million and $3.1 million, respectively. As of December 31, 2017, there was $2.5 million of unrecognized compensation expense related to unvested restricted stock and restricted stock units. That expense is expected to be recognized over a weighted average period of 1.6 years. As of December 31, 2017, there was $0.3 million of unrecognized compensation expense related to unvested stock options. That expense is expected to be recognized over a weighted average period of 2.0 years. Under ASC 718, Stock Compensation (“ASC 718”), the fair value of awards of restricted stock and units that do not contain a specified hurdle price condition is based on the market price of our common stock on the date of grant. The fair value of restricted stock unit awards with a market condition is estimated on the grant date using a stock price simulation model using Geometric Brownian Motion to model future stock prices. The fair value of restricted stock awards that contain a specified hurdle price condition is estimated on the grant date using the Monte-Carlo option valuation model. The fair value of each stock option is estimated on the grant date using the Black-Scholes option-pricing model. The valuation models require assumptions and estimates to determine expected volatility, expected life, expected dividend yield and expected risk-free interest rates. The expected volatility was determined using historical volatility of our stock based on the contractual life of the award. The risk-free interest rate assumption was based on the yield on zero-coupon U.S. Treasury bonds at the award grant date. The significant weighted average assumptions used for the years ended December 31, 2017, 2016 and 2015 were as follows: 2017 2016 2015 Dividend yield — % — % — % Volatility rate 33.7 % 40.5 % 38.0 % Risk-free interest rate 1.46 % 0.91 % 1.10 % Expected life (years) 2.92 2.91 2.95 Weighted average fair value of units granted $ 19.19 $ 3.37 $ 5.95 The stock option activity for the years ended December 31, 2017, 2016 and 2015 is summarized as follows: For the Years Ended December 31, 2017 2016 2015 Weighted Weighted Weighted Average Average Average Stock Exercise Price Stock Exercise Price Stock Exercise Price Options Per Share Options Per Share Options Per Share Outstanding as of beginning of year 445,036 $ 17.05 545,036 $ 17.01 555,036 $ 17.00 Granted 95,674 17.74 — — — — Exercised — — — — — — Forfeited — — (100,000) 16.80 (10,000) 16.80 Outstanding as of end of year 540,710 $ 17.17 445,036 $ 17.05 545,036 $ 17.01 Exercisable as of end of year 468,958 $ 17.09 333,777 $ 17.05 272,518 $ 17.01 The weighted average remaining contractual life of stock options outstanding as of December 31, 2017 was 9.1 years. The restricted stock and restricted stock units activity for the years ended December 31, 2017 and 2016 is summarized as follows: For the Years Ended December 31, 2017 2016 Performance-Based Service-Based Performance-Based Service-Based Weighted Weighted Weighted Weighted Number of Average Number of Average Number of Average Number of Average Shares or Grant Date Shares or Grant Date Shares or Grant Date Shares or Grant Date Units Fair Value Units (1) Fair Value Units Fair Value Units (1) Fair Value Outstanding as of beginning of year 305,543 $ 4.78 157,264 $ 11.75 235,746 $ 8.55 116,592 $ 15.57 Granted 82,349 18.32 101,644 17.31 198,174 3.37 154,176 10.43 Vested (6,536) 15.80 (88,412) 13.56 (10,821) 15.80 (74,571) 13.26 Expired/forfeited/cancelled (153,801) 5.64 (25,869) 12.45 (117,556) 7.38 (38,933) 11.95 Outstanding as of end of year 227,555 $ 11.16 144,627 $ 20.72 305,543 $ 4.78 157,264 $ 11.75 (1) Restricted stock shares are considered legally outstanding but are not considered outstanding for accounting purposes until the vesting conditions are satisfied in accordance with authoritative accounting guidance. Additionally, the balances do not include the restricted stock units deferred under our director deferral program discussed below. Under our director deferral program, non-management directors may elect to defer up to 100% of their annual retainer fees, committee fees and chairperson fees, for which the director is credited with a number of stock units based upon the closing price of our common stock on the due date of each payment. The number of stock units become distributable as shares of common stock upon the earlier of a date designated by the individual director or the date of the individual’s separation from service as a director. No stock units were distributed as shares to non-management directors during the years ended December 31, 2017, 2016 and 2015. The outstanding balance of restricted stock units under the deferral plan as of December 31, 2017, 2016 and 2015 was 76,611 and 60,955 and 50,376, respectively.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2017
Income Taxes
Income Taxes	Note 11 - Income Taxes Income taxes have been provided using the liability method under ASC 740. The liability method is used in accounting for income taxes where deferred income tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences reverse. The components of income tax expense (benefit) for the years ended December 31, 2017, 2016 and 2015 are as follows (in thousands): For the Years Ended December 31, 2017 2016 2015 Current: Federal $ 80 $ 542 $ 253 State 296 364 183 Total current 376 906 436 Deferred: Federal 38,303 (93,383) — State 1,589 (17,044) — Total deferred 39,892 (110,427) — Total income tax expense (benefit) $ 40,268 $ (109,521) $ 436 Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of deferred income tax assets and liabilities as of December 31, 2017 and 2016 are as follows (in thousands): December 31, 2017 2016 Deferred tax assets: Net operating loss carryforward and credits $ 32,829 $ 47,529 Impairment charges 28,926 48,311 Other inventory valuation adjustments 7,929 13,819 Other reserves and accruals 3,366 5,028 Land development reserves 3,180 5,270 Executive incentive compensation 1,875 2,352 Total deferred tax assets 78,105 122,309 Valuation allowance for deferred tax assets — — Deferred tax assets, net of valuation allowance 78,105 122,309 Deferred tax liabilities: Deferred gain (3,495) (6,246) Goodwill (1,524) (1,013) State taxes (1,426) (2,800) Depreciation (844) (1,222) Capitalized expenses (451) (771) Total deferred tax liabilities (7,740) (12,052) Deferred tax assets, net $ 70,365 $ 110,257 As of December 31, 2017, our gross federal and state NOL carryforwards were $98.7 million and $259.0 million, respectively. Federal NOL carryforwards may be used to offset future taxable income for 20 years and begin to expire in 2032. State NOL carryforwards may be used to offset future taxable income for 20 years and begin to expire in 2028. We evaluate our deferred tax assets each period to determine if a valuation allowance is required based on whether it is “more likely than not” that some portion of the deferred tax assets would not be realized. The ultimate realization of these deferred tax assets is dependent upon the generation of sufficient taxable income during future periods. We conduct our evaluation by considering all available positive and negative evidence. This evaluation considers, among other factors, historical operating results, forecasts of future profitability, the duration of statutory carryforward periods, and the outlooks for the U.S. housing industry and broader economy. Based on our evaluation through June 30, 2016, we determined that the valuation allowance against all of our federal and state deferred tax assets was no longer required. Accordingly, by December 31, 2016 we reversed the entire valuation allowance. Any interest or penalties assessed have been minimal and immaterial to our financial results. In the event we are assessed any interest or penalties in the future, we plan to include them in our consolidated statements of operations as income tax expense. A reconciliation of income tax expense (benefit) to the expected income tax expense (benefit) at the federal statutory rate of 35% for each of the years ended December 31, 2017, 2016 and 2015 is as follows (in thousands): For the Years Ended December 31, 2017 2016 2015 Income tax expense computed at statutory rate $ 6,416 $ 13,155 $ 4,320 State income tax expense, net of federal benefit 506 1,201 1,452 Remeasurement of deferred tax assets (lower federal rate) 32,484 — — Change in valuation allowance on deferred tax assets — (124,525) (5,336) Change in state rate 395 688 — Share-based compensation costs 470 — — Other (3) (40) — Income tax expense (benefit) $ 40,268 $ (109,521) $ 436 On December 22, 2017, the Tax Cuts and Jobs Act (“TCJA”) was signed into law, which, among other items, reduces the federal statutory corporate tax rate from 35% to 21%, effective January 1, 2018. As required under ASC 740, we evaluated and accounted for the impact of the changes from the TCJA in the period when the law was enacted. As a result, we recorded a $32.5 million one-time revaluation adjustment to decrease our net deferred tax assets in the quarter ended December 31, 2017. This adjustment was primarily due to the reduction in the federal corporate statutory tax rate. This amount has been recorded as a one-time increase to the provision for income taxes. Our assessment of the TCJA was based on information available at this time and results for the quarter ended December 31, 2017. Future periods may differ from the impact disclosed herein due to, among other things, changes in interpretations and assumptions made by us, guidance that may be issued and actions we may take as a result of the TCJA. The overall impact of the TCJA is also subject to the effect of other provisions of the TCJA. We file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. We are subject to U.S. federal income tax examination for calendar tax years ending 2014 through 2016. Additionally, we are subject to various state income tax examinations for the 2013 through 2016 calendar tax years.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies
Commitments and Contingencies	Note 12 - Commitments and Contingencies Legal We are involved in litigation from time to time, primarily arising in the normal course of our business. These cases are in various procedural stages. In view of the inherent difficulty of predicting the outcome of these legal and regulatory matters, we generally cannot predict the ultimate resolution of the pending matters, the related timing, or the eventual loss. While the outcome of such contingencies cannot be predicted with certainty, we do not believe that the resolution of such matters will have a material adverse impact on our results of operations, financial position, or cash flows. On April 26, 2017, we received notice of a Class Action Complaint filed in the Circuit Court for the 10th Judicial Circuit, Polk County, Florida, generally alleging that the collection of club membership fees in connection with the use and enjoyment of the club facilities located within the Solivita community is illegal in that it violates, among other laws, Florida’s Homeowners’ Association Act (“FLHOA”) and Florida’s Deceptive and Unfair Trade Practices Act (“FDUTPA”). It also generally alleges that certain other actions by us have violated FLHOA and FDUTPA. The complaint seeks relief in various forms including recovery for the prior payment of club membership fees and an injunction to prohibit the future collection of club membership fees. On June 9, 2017, we filed an amended motion to dismiss this matter, which was heard on June 13, 2017. On August 8, 2017, the judge issued an order denying in part and granting in part the motion to dismiss. Plaintiffs were provided leave to amend the FDUTPA claims and filed an amended complaint on September 15, 2017. We filed our amended answer on September 29, 2017 along with certain affirmative defenses. The amended answer also contains counterclaims against the plaintiffs for breach of contract and tortious interference with contractual relations, among other claims. On October 5, 2017, we also filed a motion for summary judgment, which was heard on December 8, 2017. On January 23, 2018, the court ruled, granting our motion for summary judgment in part and denying it in part. Importantly, the court ruled that our club operations in Solivita constitute commercial property under the FLHOA and that nothing in the FLHOA prevents a developer from owning club operations for profit, as is the case in this instance. As a result of the foregoing ruling, it is our continuing contention that every count of the plaintiffs’ class action lawsuit must ultimately fail as each is without merit and rely, directly or indirectly, on an interpretation of the FLHOA explicitly rejected by the court. Surety Bonds Surety bonds, issued by third-party entities, are used primarily to guarantee our performance to construct improvements in our various communities. As of December 31, 2017 and 2016, we had outstanding surety bonds of approximately $36.1 million and $30.6 million, respectively. The amount of outstanding surety bonds could fluctuate depending on the level of development activity. We do not believe that it is likely any of these outstanding surety bonds will be drawn upon. Community Development District and Other Special Obligations A community development district or similar development authority (“CDD”) is a unit of local government created under various state statutes that utilizes the proceeds from the sale of bonds to finance the construction or acquisition of infrastructure assets of a development. A portion of the liability associated with the bonds, including principal and interest, is assigned to each parcel of land within the development. This debt is typically paid by subsequent special assessments levied by the CDD on the landowners. Generally, we are only responsible for paying the special assessments for the period during which we are the landowner of the applicable parcels. However, in certain limited instances we record a liability for future assessments.

Segment Information

Segment Information	12 Months Ended
	Dec. 31, 2017
Segment Information
Segment Information	Note 13 - Segment Information Our operating segments are defined as a component of an enterprise for which discrete financial information is available and is reviewed regularly by the chief operating decision maker to evaluate performance and make operating decisions. We have identified our chief operating decision maker as our Chief Executive Officer. The following table summarizes our information for reportable segments for the years ended December 31, 2017, 2016 and 2015 (in thousands): For the Years Ended December 31, 2017 2016 2015 Operating income: Florida Revenues: Homebuilding $ 363,477 $ 373,383 $ 300,260 Amenity and other 17,061 11,698 12,385 Land sales 3,349 3,116 6,466 Total revenues 383,887 388,197 319,111 Expenses: Homebuilding cost of revenue 287,415 291,372 239,001 Homebuilding selling, general and administrative 40,478 46,113 38,500 Amenity and other 14,749 11,062 10,587 Land sales 579 770 823 Segment operating income $ 40,666 $ 38,880 $ 30,200 Carolinas Revenues: Homebuilding $ 306,068 $ 238,549 $ 114,277 Land sales 1,042 265 — Total revenues 307,110 238,814 114,277 Expenses: Homebuilding cost of revenue 266,642 205,348 95,232 Homebuilding selling, general and administrative 32,444 22,807 12,205 Land sales 1,026 289 — Segment operating income $ 6,998 $ 10,370 $ 6,840 Arizona Revenues: Homebuilding $ 152,071 $ 152,109 $ 84,378 Land sales 185 185 — Total revenues 152,256 152,294 84,378 Expenses: Homebuilding cost of revenue 128,447 128,751 71,305 Homebuilding selling, general and administrative 15,198 14,994 11,981 Amenity and other 89 86 115 Land sales 180 171 — Segment operating income $ 8,342 $ 8,292 $ 977 Operating income $ 56,006 $ 57,542 $ 38,017 Unallocated income (expenses): Interest income and other 1,063 16 308 Corporate general and administrative expenses (18,271) (16,305) (16,900) Loss on extinguishment of debt (9,848) — — Interest expense (10,618) (3,667) (9,039) Income before income taxes 18,332 37,586 12,386 Income tax expense (benefit) 40,268 (109,521) 436 Net income (loss) $ (21,936) $ 147,107 $ 11,950 2017 2016 Segment assets: Florida $ 312,383 $ 317,398 Carolinas 238,941 178,333 Arizona 141,566 158,783 Unallocated assets 317,254 185,719 Total assets $ 1,010,144 $ 840,233 · Our businesses are conducted in the United States. · Identifiable assets by segment are those assets that are used in the operations of each segment. · No significant part of the business is dependent upon a single customer or group of customers. · The caption “Unallocated assets” under the table depicting the segment assets represents the following as of December 31, 2017 and 2016, respectively: net deferred tax assets of $70.4 million and $110.3 million; cash, cash equivalents and restricted cash of $241.0 million and $67.8 million; property and equipment of $0.8 million and $1.2 million; receivables of $0.2 million and $0.2 million; and prepaid expenses and other assets of $4.8 million and $5.1 million. None of the foregoing are directly attributable to a reportable segment in accordance with ASC 280, Segment Reporting . · There is no interest expense from the Florida, Carolinas and Arizona segments included in segment operating income during 2017, 2016 and 2015. · Included in segment operating income for 2017 is depreciation expense (including amortization of capital leases) of $2.2 million, $0.4 million, less than $0.1 million and $0.7 million from Florida, the Carolinas, Arizona and unallocated corporate general and administrative expenses, respectively. Included in segment operating income for 2016 is depreciation expense (including amortization of assets under capital leases) of $2.1 million, $0.1 million, $0.0 million and $0.7 million from Florida, the Carolinas, Arizona and unallocated corporate general and administrative expenses, respectively. Included in segment operating income for 2015 is depreciation expense of $2.4 million, $0.1 million, $0.0 million and $0.6 million from Florida, the Carolinas, Arizona and unallocated corporate general and administrative expenses, respectively. · During the years ended December 31, 2017 and 2016, there was $0.9 million and $0.8 million of impairment losses recognized, respectively. During 2015, there were no significant impairment losses recognized. · Goodwill of $6.1 million and $24.2 million has been assigned to the Florida and Carolinas segments, respectively.

Fair Value Disclosures

Fair Value Disclosures	12 Months Ended
	Dec. 31, 2017
Fair Value Disclosures
Fair Value Disclosures	Note 14 - Fair Value Disclosures ASC 820, Fair Value Measurements and Disclosures , provides guidance for using fair value to measure assets and liabilities, defines fair value, establishes a framework for measuring fair value under GAAP, expands disclosures about fair value measurements, and establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The accounting standards require that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: Level 1: Fair value determined based on quoted market prices in active markets for identical assets and liabilities. Level 2: Fair value determined using significant observable inputs, such as quoted prices for similar assets or liabilities or quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs that are derived principally from or corroborated by observable market data, by correlation or other means. Level 3: Fair value determined using significant unobservable inputs, such as discounted cash flows, or similar techniques. The carrying amounts of cash and cash equivalents, restricted cash, receivables, accounts payable, the Senior Secured Credit Facility, and the Senior Unsecured Credit Facility approximate the fair value due to their short-term nature. Certain assets are required to be recorded at fair value on a non-recurring basis when events and circumstances indicate that the carrying value may not be recoverable. The carrying amounts and fair values of our financial liabilities as of December 31, 2017 and 2016 are as follows (in thousands): December 31, 2017 December 31, 2016 Carrying Fair Carrying Fair Amount Value Amount Value Senior notes: 6.625% Notes, net (1) $ 392,909 $ 420,480 $ — $ — 6.00% Notes, net (1) 79,199 90,240 78,878 84,984 8.50% Notes, net (1) — — 196,782 206,500 Contingent consideration (earn-out) (2) — — 2,400 2,400 (1) The carrying amounts are net of unamortized deferred financing costs and certain debt discounts. (2) During the year ended December 31, 2017, we paid $2.4 million of earn-out and reduced the carrying amount of earn-out accrued during 2017 by $1.8 million to its estimated fair value, which is included in selling, general and administrative expenses on our consolidated statement of operations. In estimating the fair value of financial liabilities, we used the following methods and assumptions: Senior Notes As of December 31, 2017 and 2016, the fair value of the 6.625% Notes, 6.00% Notes and 8.50% Notes are estimated, based on quoted or estimated market prices. These fall within Level 2 of the fair value hierarchy. Contingent Consideration (“earn-out”) This was recognized as part of the purchase price paid for the Bonterra Builders acquisition in 2015 and the Savvy Homes acquisition in 2017. At inception, the fair values were determined through the use of valuation models that simulated earnings, applying the terms of the earn-out in each simulated path, determining the average payment in each year across all the trials of the simulation, and calculating the present values of the future payments. The primary inputs and key assumptions include estimated future earnings, probabilities of achievement, earnings volatility, and the discount rate. These fall within Level 3 of the fair value hierarchy.

Unaudited Quarterly Financial D

Unaudited Quarterly Financial Data	12 Months Ended
	Dec. 31, 2017
Unaudited Quarterly Information
Quarterly Financial Data (Unaudited)	Note 15 - Unaudited Quarterly Information Summarized quarterly financial data for 2017 and 2016 is as follows (dollars in thousands): 2017 Quarter First Second Third Fourth Total revenues $ 155,548 $ 201,194 $ 205,739 $ 280,772 Total expenses 151,380 199,725 208,088 265,728 Income (loss) before income taxes 4,168 1,469 (2,349) 15,044 Less: income tax expense (benefit) 1,729 822 (872) 38,589 Net income (loss) $ 2,439 $ 647 $ (1,477) $ (23,545) Earnings (loss) per share: (1) Basic $ 0.11 $ 0.03 $ (0.07) $ (1.05) Diluted $ 0.11 $ 0.03 $ (0.07) $ (1.05) 2016 Quarter First Second Third Fourth Total revenues $ 124,090 $ 188,096 $ 205,427 $ 261,692 Total expenses 123,231 180,800 193,492 244,196 Income before income taxes 859 7,296 11,935 17,496 Less: income tax expense (benefit) 68 (110,065) 38 438 Net income $ 791 $ 117,361 $ 11,897 $ 17,058 Earnings per share: (1) Basic $ 0.04 $ 5.24 $ 0.53 $ 0.77 Diluted $ 0.04 $ 4.45 $ 0.49 $ 0.68 (1) Quarterly and year-to-date computations of per share amounts are made independently. Therefore, the sum of per share amounts for the quarters may not be consistent with the per share amounts for the year.

Subsequent Event

Subsequent Event	12 Months Ended
	Dec. 31, 2017
Subsequent Event
Subsequent Events	Note 16 - Subsequent Events On January 8, 2018, we acquired substantially all of the assets and assumed certain liabilities of MMLC Texas Builders, LLC (“Oakdale-Hampton Homes”) for approximately $43.0 million, including a $3.0 million estimated earn-out, which remains subject to customary post-closing adjustments. The actual amount of the earn-out may be more or less than the $3.0 million target amount based on the performance of the Oakdale-Hampton Homes business through the end of 2019. A portion of the aggregate consideration equal to $0.6 million was placed in a third-party escrow account as security for Oakdale-Hampton Homes’ indemnification and other obligations under the purchase agreement. Oakdale-Hampton Homes acquires developed land and constructs single-family homes in the Dallas-Fort Worth, Texas area. Oakdale-Hampton Homes’ total revenues in 2017 were approximately $45.1 million. This acquisition marks our entry into a new key growth market. As of the date of this report, the initial accounting for this business combination is incomplete because the valuation of assets and liabilities acquired is still in process; therefore, certain disclosures required by ASC 805 cannot be made at this time. These disclosures include the amount of acquisition-related costs, the fair value of acquired receivables, the amounts of major classes of assets and liabilities acquired, the amount of goodwill recognized, if any, including qualitative discussion of the factors that make up that goodwill, the total amount of goodwill deductible for tax purposes, the amount of goodwill reportable by segment, the fair value and description of contingent consideration, and the amount of revenue and earnings of Oakdale-Hampton Homes since the date of acquisition.

Summary of Significant Accoun23

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2017
Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements include the accounts of AV Homes, Inc. and all subsidiaries, partnerships and other entities in which AV Homes, Inc. (“AV Homes,” “we,” “us,” “our,” or the “Company”) has a controlling interest. Our investments in unconsolidated entities in which we have less than a controlling interest are accounted for using the equity method. All intercompany accounts and transactions have been eliminated in consolidation. For comparative purposes, certain prior year amounts have been reclassified to conform to the current year presentation. We have no components of comprehensive income (loss), therefore, net income (loss) and comprehensive income (loss) are the same for the years ended December 31, 2017, 2016 and 2015.
Use of Estimates	Use of Estimates The preparation of our consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
TPG Investment in Company	TPG Investment in Company TPG Aviator, L.P. (“TPG Aviator”) beneficially owned approximately 43.7% of our common stock as of December 31, 2017, and is our largest single stockholder. In June 2013, concurrent with TPG Aviator’s initial investment, we entered into a Management Services Agreement with TPG VI Management, LLC (“TPG Management”), an affiliate of TPG Aviator, that sets forth certain financial advisory services to be provided by, and fees to be paid to, TPG Management in connection with ongoing services to us. Pursuant to the Management Services Agreement and in exchange for certain ongoing advisory and consulting services, we agreed to pay to TPG Management a monitoring fee up to $0.5 million per year for so long as TPG Aviator and its affiliates own at least 30% of the Common Stock outstanding and also to reimburse expenses incurred by TPG Management and its affiliates to provide services or enforce its rights under the management services agreement. The monitoring fee is reduced proportionately based on TPG Aviator’s board representation rights under a separate Stockholders Agreement we entered into with TPG Aviator. The monitoring fee is payable quarterly in advance and is reduced by director fees otherwise payable to the TPG-nominated directors who are not employed by TPG Aviator or its affiliates. We paid TPG Management a total of $0.4 million during each of the years ended December 31, 2017, 2016 and 2015, for the annual monitoring fee and reimbursement of expenses under the Management Services Agreement.
Cash and Cash Equivalents and Restricted Cash	Cash and Cash Equivalents and Restricted Cash We consider all highly liquid investments purchased with an initial maturity of three months or less to be cash equivalents. As of December 31, 2017, our cash and cash equivalents were invested primarily in money market accounts that invest primarily in U.S. government securities. Due to the short maturity period of the cash equivalents, the carrying amount of these instruments approximate their fair values. Our cash items that are restricted as to withdrawal or usage include deposits of $1.2 million as of December 31, 2017 and 2016.
Land and Other Inventories and Homebuilding Cost of Revenue	Land and Other Inventories and Homebuilding Cost of Revenue Land and other inventories include expenditures for land acquisition, construction, land development, construction costs for homeowners’ association amenities, and direct and allocated indirect costs, including interest cost capitalized until development and construction are substantially completed. These costs are assigned to components of land and other inventories based on specific identification, relative sales value, or area allocation methods. Land and other inventories are stated at cost unless the asset is determined to be impaired, in which case the asset is written to its fair value, in accordance with ASC 360, Property, Plant and Equipment (“ASC 360”). Homebuilding cost of revenue is comprised of direct and allocated costs, including estimated future costs for the limited warranty we provide on our homes. Land acquisition, land development and other common costs are generally allocated on a relative sales value or area allocation basis to the homes or lots within the applicable community or land parcel. Land acquisition and land development costs include related interest and real estate taxes incurred during the period of time under development. We evaluate our land and other inventories for impairment on a quarterly basis in accordance with ASC 360 to reflect market conditions, including a consideration of supply of new and resale homes for sale in the respective market, level of foreclosure activity and competition. For assets held and used, if indicators are present, we perform an impairment test in which the asset is reviewed for impairment by comparing the estimated future undiscounted cash flows to be generated by the asset to its carrying value. If such cash flows are less than the asset’s carrying value, the carrying value is written down to its estimated fair value. Generally, fair value is determined by discounting the estimated cash flows at a rate commensurate with the inherent risks associated with the asset and related estimated cash flow streams. The discount rate used in the determination of fair value would vary, depending on the state of development. Assumptions and estimates used in the determination of the estimated future cash flows are based on expectations of future operations and economic conditions. Changes to these assumptions could significantly affect the estimates of future cash flows, which could affect the potential for future impairments. Due to the uncertainties of the estimation process, actual results could differ significantly from such estimates. During the years ended December 31, 2017 and 2016, our impairment assessments resulted in $0.9 million and $0.8 million of impairment charges, respectively, and are included in homebuilding cost of revenue in the consolidated statements of operations. During the year ended December 31, 2015, our impairment assessment resulted in no significant impairment charges.
Receivables	Receivables Receivables primarily consists of amounts in transit or due from title companies for home closings and rebates.
Property and Equipment, net	Property and Equipment, net Property and equipment are stated at cost, net of accumulated depreciation, which is computed by the straight-line method over the following estimated useful lives of the assets: land improvements 5 to 15 years; buildings and improvements 3 to 40 years; and machinery, equipment and fixtures 3 to 10 years. Maintenance and operating expenses of equipment utilized in the development of land are capitalized to land inventory. Repairs and maintenance are expensed as incurred. Property and equipment includes amenities assets such as club facilities on properties owned by us. The cost of amenities includes expenditures for land acquisition, construction, land development and direct and allocated costs. Property and equipment owned and constructed by us also includes interest cost incurred during development and construction. Each reporting period, we review our property and equipment for indicators of impairment in accordance with ASC 360. For our amenities, which are located within certain of our communities, indicators of potential impairment are similar to those of our housing communities, as these factors may impact our ability to generate revenues at our amenities or cause construction costs to increase. In addition, we factor in the collectability and potential delinquency of the fees due for our amenity memberships. There were no indicators of impairment during the years ended December 31, 2017 and 2016.
Investments in Partnerships and LLCs and Non-Controlling Interest	Investments in Partnerships and Limited Liability Companies When we are either deemed to hold the controlling interest in a voting interest entity or deemed to be the primary beneficiary of a variable interest entity (“VIE”), we are required to consolidate the investment. Factors considered when determining if we hold the controlling interest in a voting interest entity include who holds the general partnership or managing member interests, which partner or member makes the day-to-day decisions regarding the operations of the entity, and whether or not the other partners or members have substantive participating rights. With respect to VIEs, our variable interests may be in the form of (1) equity ownership, (2) contracts to purchase assets and/or (3) loans provided by us to the investor. We examine specific criteria and use judgment when determining if we are the primary beneficiary of a VIE. The primary beneficiary of a VIE is the entity that has both of the following characteristics: (a) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and (b) the obligation to absorb the majority of losses of the VIE or the right to receive the majority of benefits from the VIE. Investments, including joint ventures with independent third parties, where we do not hold the controlling interest and we are not the primary beneficiary, but over which we have significant influence, are accounted for under the equity method. Under the equity method of accounting, we recognize our proportionate share of the earnings and losses of these entities. The balance of our investments in unconsolidated entities was $0.3 million and $1.2 million as of December 31, 2017 and December 31, 2016, respectively, and is included in prepaid expenses and other assets in our consolidated balance sheets. We evaluate our investments in unconsolidated entities for recoverability in accordance with ASC 323, Investments – Equity Method and Joint Ventures . If we determine that a loss in the value of the investment is other than temporary, we write down the investment to its estimated fair value. Any such losses are recorded to equity in (earnings) loss of unconsolidated entities in the consolidated statements of operations. Due to uncertainties in the estimation process and the significant volatility in demand for new housing, actual results could differ significantly from such estimates. There were no indicators of impairment during the years ended December 31, 2017 and 2016.
Business Acquisitions	Business Acquisitions When acquiring a business, we allocate the purchase price to the tangible and intangible assets and liabilities assumed based on their estimated fair values. In making estimates of fair values for this purpose, we use a number of sources, including independent appraisals and information obtained about each property as a result our pre-acquisition due diligence and its marketing and housing activities. See Note 2, Business Acquisitions .
Goodwill	Goodwill Goodwill arises from business combinations and represents the excess of the cost of an acquired entity over the net fair value amounts that were assigned to the identifiable assets acquired and the liabilities assumed. Goodwill is tested for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying value. There were no indicators of impairment during the years ended December 31, 2017 and 2016.
Revenue Recognition	Revenue Recognition In accordance with ASC 360, homebuilding revenue and related profit from the sales of housing units are recognized when title to and possession of the property are transferred to the buyer. In addition, revenue from land sales is recognized in full at closing, provided the buyer’s initial and continuing investment is adequate, any financing is considered collectible and there is no significant continuing involvement.
Sales Incentives	Sales Incentives When sales incentives involve a discount on the selling price of the home, we record the discount as a reduction of revenue at the time of home closing. If the sales incentive requires us to provide a free product or service to the customer, the cost of the free product or service is recorded as cost of revenues at the time of home closing. This includes the cost related to optional upgrades and seller-paid financing costs, closing costs, homeowners’ association fees, or merchandise.
Advertising Costs	Advertising Costs Advertising costs are expensed as incurred. During the years ended December 31, 2017, 2016 and 2015, advertising costs totaled $4.0 million, $3.6 million and $3.0 million, respectively. Advertising costs, sales commissions and closing costs are included in selling, general and administrative expenses in the accompanying consolidated statements of operations.
Warranty Costs	Warranty Costs Warranty reserves for homes are established to cover estimated costs for materials and labor with regard to warranty-type claims to be incurred subsequent to the closing of a home. Reserves are determined based on historical data and other relevant factors. We have, and require our subcontractors to have, general liability, property, workers’ compensation, and other business insurance. These insurance policies protect us against a portion of our risk of loss from claims, subject to certain self-insured per occurrence and aggregate retentions, deductibles, and available policy limits. We may have recourse against subcontractors for certain claims relating to workmanship and materials. Warranty reserves are included in accrued and other liabilities in the consolidated balance sheets. During the years ended December 31, 2017, 2016 and 2015, changes in the warranty reserve consisted of the following (in thousands): For the Years Ended December 31, 2017 2016 2015 Accrued warranty reserve, beginning of period $ 4,033 $ 3,333 $ 1,528 Reserve provided 5,089 3,864 3,974 Payments (4,206) (3,164) (2,169) Accrued warranty reserve, end of period $ 4,916 $ 4,033 $ 3,333
Income Taxes	Income Taxes The provision for income taxes is calculated using the asset and liability method, under which deferred tax assets and liabilities are recognized by identifying the temporary differences arising from the different treatment of items for tax and accounting purposes. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is primarily dependent upon the generation of future taxable income. See Note 11, Income Taxes . In determining the future tax consequences of events that have been recognized in the financial statements or tax returns, judgment is required. Differences between the anticipated and actual outcomes of these future tax consequences could have a material impact on our consolidated results of operations or financial position.
Share-Based Compensation	Share-Based Compensation The Amended and Restated 1997 Incentive and Capital Accumulation Plan (2011 Restatement), as amended (“Incentive Plan”) and the 2015 Incentive Compensation Plan, as amended and restated (the “2015 Plan”) provide for the grant of stock options, stock appreciation rights, stock awards, performance awards, and stock units to officers, employees and directors of AV Homes. The exercise prices of stock options granted under the Incentive Plan and the 2015 Plan may not be less than the stock exchange closing price of our common stock on the date of grant. Stock option awards under the Incentive Plan and 2015 Plan generally expire 10 years after the date of grant. As of December 31, 2017, there were an aggregate of 1.5 million shares available for grant under the 2015 Plan and 0.3 million shares reserved for future issuance relating to stock options and restricted stock units previously awarded and currently outstanding under the 2015 Plan. Additionally, as of December 31, 2017, an aggregate of 0.5 million shares of our common stock were reserved for future issuance in connection with stock options and restricted stock units previously awarded under the Incentive Plan. See Note 10, Share-Based Payments and Other Compensation .
Employee Benefit Plans	Employee Benefit Plans We have a defined contribution savings plan that covers substantially all employees. Under this savings plan, we may contribute to the plan based upon specified percentages of employees’ voluntary contributions. During the years ended December 31, 2017 and 2016, we contributed $0.3 million and $0.3 million to the plan, respectively. We made no contributions to the plan for the year ended December 31, 2015.
Earnings (Loss) Per Share	Earnings (Loss) Per Share Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of AV Homes. The weighted average number of shares outstanding in calculating basic earnings (loss) per share includes the addition of 0.1 million shares in 2017, 2016 and 2015, each in connection with the vesting of restricted stock and restricted stock units each year. Excluded from the weighted average number of shares outstanding are 0.1 million shares for 2016 and 0.3 million shares for 2015 associated with annual restricted stock awards that remain subject to vesting and performance requirements. There were no shares excluded in 2017. See Note 10, Share-Based Payments and Other Compensation . In accordance with ASC 260, Earnings Per Share , nonvested shares are not included in basic earnings (loss) per share until the vesting and performance requirements are met. The following table represents a reconciliation of the net income (loss) and weighted average shares outstanding for the calculation of basic and diluted earnings (loss) per share for the years ended December 31, 2017, 2016 and 2015 (in thousands, except per share amounts): For the Years Ended December 31, 2017 2016 2015 Numerator: Basic net income (loss) $ (21,936) $ 147,107 $ 11,950 Effect of dilutive securities — 2,969 — Diluted net income (loss) $ (21,936) $ 150,076 $ 11,950 Denominator: Basic weighted average shares outstanding 22,493 22,346 22,010 Effect of dilutive securities — 4,163 120 Diluted weighted average shares outstanding 22,493 26,509 22,130 Basic earnings (loss) per share $ (0.98) $ 6.58 $ 0.54 Diluted earnings (loss) per share $ (0.98) $ 5.66 $ 0.54
Recent Accounting Pronouncements	Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment (“ASU 2017-04”), which removes the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for us for annual and interim periods beginning January 1, 2020, with early adoption permitted, and applied prospectively. We adopted this guidance in the first quarter of 2017 and there was no impact on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business (“ASU 2017-01”). ASU 2017-01 clarifies the definition of a business with the objective of addressing whether transactions involving in-substance nonfinancial assets, held directly or in a subsidiary, should be accounted for as acquisitions or disposals of nonfinancial assets or of businesses. ASU 2017-01 is effective for us for the fiscal year and interim periods beginning January 1, 2018, with early adoption permitted, and applied prospectively. We do not anticipate the adoption of ASU 2017-01 to have a material impact on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 reduces the existing diversity in practice in financial reporting across all industries by clarifying certain existing principles in ASC 230, Statement of Cash Flows , including providing additional guidance on how and what an entity should consider in determining the classification of certain cash flows. ASU 2016-15 is effective for us for the fiscal year and interim periods beginning January 1, 2018. The adoption of ASU 2016-15 will modify our current disclosures within the consolidated statements of cash flows but is not expected to have a material effect on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions. ASU 2016-09 became effective for us for fiscal years and interim periods beginning January 1, 2017. Amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements and forfeitures were applied on a modified retrospective transition method through a cumulative-effect adjustment to equity as of January 1, 2017. The adoption of the provisions of ASU 2016-09 in the first quarter of 2017 had no material effect on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 will require organizations that lease assets–referred to as “lessees”–to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Under ASU 2016-02, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than twelve months. Lessor accounting remains substantially similar to current GAAP. In addition, disclosures of leasing activities are to be expanded to include qualitative along with specific quantitative information. ASU 2016-02 is effective for us for fiscal years and interim periods beginning January 1, 2019. The standard mandates a modified retrospective transition method. We continue to evaluate the impact of adopting this guidance on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The standard is a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. ASU 2014-09 also affects certain industry-specific cost guidance. The FASB has also issued several updates to this standard. The standard is effective for us for annual and interim periods beginning January 1, 2018, and we plan to apply the modified retrospective method of adoption. We have evaluated the impact of the adoption of ASU 2014-09 and concluded that there will not be a material change to the amount or timing of our homebuilding, amenity and other, and land sales revenues. Our homebuilding revenue currently includes forfeited customer deposits. This classification will not change under the new standard. However, the standard will impact the timing of recognition for certain selling costs related to model homes and sales offices. Prior to the adoption of ASU 2014-09, for selling communities, these costs were capitalized as land and other inventories and expensed as homes in the communities were closed in accordance with ASC 970-340. Upon adoption, the balance of these capitalized selling costs will be recorded as either land and other inventories or property and equipment, while the remaining costs that would have been expensed under the new guidance will be reflected as an adjustment to retained earnings on January 1, 2018. We expect that adjustment to be a decrease of approximately $1.4 million in our land and other inventories and retained earnings balances.

Summary of Significant Accoun24

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2017
Summary of Significant Accounting Policies
Changes in warranty reserve	During the years ended December 31, 2017, 2016 and 2015, changes in the warranty reserve consisted of the following (in thousands): For the Years Ended December 31, 2017 2016 2015 Accrued warranty reserve, beginning of period $ 4,033 $ 3,333 $ 1,528 Reserve provided 5,089 3,864 3,974 Payments (4,206) (3,164) (2,169) Accrued warranty reserve, end of period $ 4,916 $ 4,033 $ 3,333
Reconciliation of net income and weighted average shares outstanding for the calculation of basic and diluted earnings per share	The following table represents a reconciliation of the net income (loss) and weighted average shares outstanding for the calculation of basic and diluted earnings (loss) per share for the years ended December 31, 2017, 2016 and 2015 (in thousands, except per share amounts): For the Years Ended December 31, 2017 2016 2015 Numerator: Basic net income (loss) $ (21,936) $ 147,107 $ 11,950 Effect of dilutive securities — 2,969 — Diluted net income (loss) $ (21,936) $ 150,076 $ 11,950 Denominator: Basic weighted average shares outstanding 22,493 22,346 22,010 Effect of dilutive securities — 4,163 120 Diluted weighted average shares outstanding 22,493 26,509 22,130 Basic earnings (loss) per share $ (0.98) $ 6.58 $ 0.54 Diluted earnings (loss) per share $ (0.98) $ 5.66 $ 0.54

Business Acquisition (Tables)

Business Acquisition (Tables)	12 Months Ended
	Dec. 31, 2017
Savvy Homes
Business Acquisitions
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The following table summarizes the calculation of the fair value of the total consideration transferred to Savvy Homes and its allocation to the assets acquired and liabilities assumed as of the acquisition date (in thousands): Fair value of consideration transferred: Cash paid for Savvy Homes net assets $ 41,150 Contingent consideration (earn-out) 1,818 Total consideration transferred $ 42,968 Assets acquired and liabilities assumed: Assets Receivables and other assets $ 159 Land and other inventories 39,311 Property and equipment 168 Trade name 407 Goodwill 11,005 Total assets acquired 51,050 Liabilities Accounts payable 7,692 Accrued and other liabilities 390 Total liabilities assumed 8,082 Total net assets acquired $ 42,968
Pro Forma Operating Results	The following represents the unaudited pro forma operating results as if Savvy Homes had been included in our consolidated statements of operations and as of the beginning of the fiscal year presented (in thousands, except per share data): Year Ended December 31, 2017 2016 Revenue $ 860,723 $ 850,937 Net income (loss) (21,722) 150,195 Basic earnings (loss) per share (0.97) 6.72 Diluted earnings (loss) per share (0.97) 5.78
Bonterra Builders, LLC
Business Acquisitions
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The following table summarizes the calculation of the fair value of the total consideration transferred to Bonterra Builders and the amounts of assets acquired and liabilities assumed as of the acquisition date (in thousands): Fair value of consideration transferred: Cash paid for Bonterra Builders net assets $ 40,818 Contingent consideration (earn-out) 6,000 Debt repaid at closing 52,941 Total consideration transferred $ 99,759 Assets acquired and liabilities assumed: Assets Receivables and other assets $ 574 Land and other inventories 91,632 Property and equipment 14 Trade name 1,400 Non-compete intangible asset 600 Goodwill 13,223 Total assets acquired 107,443 Liabilities Accounts payable 5,071 Accrued and other liabilities 763 Customer deposits 1,850 Total liabilities assumed 7,684 Total net assets acquired $ 99,759
Pro Forma Operating Results	The following represents the unaudited pro forma operating results as if Bonterra Builders had been included in the Company’s consolidated statements of operations as of the beginning of the fiscal year presented (in thousands): Year Ended December 31, 2015 Revenue $ 588,533 Net income 17,158

Land and Other Inventories (Tab

Land and Other Inventories (Tables)	12 Months Ended
	Dec. 31, 2017
Land and Other Inventories
Land and Other Inventories	As of December 31, 2017 and 2016, land and other inventories consisted of the following (in thousands): December 31, 2017 2016 Land held for future development $ 29,312 $ 29,089 Land developed and in process of development 351,798 349,891 Homes completed or under construction 222,741 205,428 Total $ 603,851 $ 584,408
Interest incurred, capitalized and expensed	The following table represents interest incurred, interest capitalized, and interest expense for December 31, 2017, 2016 and 2015 (in thousands): For the Years Ended December 31, 2017 2016 2015 Interest incurred $ 32,490 $ 26,145 $ 28,207 Interest capitalized (21,872) (22,478) (19,168) Interest expense $ 10,618 $ 3,667 $ 9,039

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2017
Property and Equipment, net
Property and Equipment	As of December 31, 2017 and 2016, property and equipment, net consisted of the following (in thousands): December 31, 2017 2016 Land improvements $ 24,420 $ 23,820 Building 38,821 38,367 Equipment 5,877 5,185 Motor vehicles 521 521 Furniture and fixtures 4,016 4,033 Capitalized software 2,291 2,099 Gross property and equipment 75,946 74,025 Less: accumulated depreciation (43,282) (40,345) Property and equipment, net $ 32,664 $ 33,680

Senior Debt (Tables)

Senior Debt (Tables)	12 Months Ended
	Dec. 31, 2017
Debt
Schedule of Notes Payable	December 31, 2017 2016 6.625% Senior Notes due 2022 $ 400,000 $ — 6.00% Senior Convertible Notes due 2020 80,000 80,000 8.50% Senior Notes due 2019 — 200,000 Senior Unsecured Credit Facility — — Senior Secured Credit Facility — — Total senior debt 480,000 280,000 Deferred debt issuance costs (7,853) (4,285) Debt discount (39) (55) Total senior debt, net $ 472,108 $ 275,660
Schedule of maturities of long-term debt	Maturities of senior notes as of December 31, 2017 are as follows (in thousands): Total 2018 $ — 2019 — 2020 80,000 2021 — 2022 400,000 Thereafter — Total $ 480,000

Lease Commitments (Tables)

Lease Commitments (Tables)	12 Months Ended
	Dec. 31, 2017
Lease Commitments
Contractual Obligation, Fiscal Year Maturity Schedule	The following table reflects lease commitments as of December 31, 2017 (in thousands): Payments Due By Period 2018 2019 2020 2021 2022 Thereafter Total Noncancelable operating leases $ 1,456 $ 1,483 $ 1,195 $ 889 $ 689 $ 1,459 $ 7,171 Capital lease obligations 151 44 — — — — 195 Leased model homes 156 — — — — — 156 Total $ 1,763 $ 1,527 $ 1,195 $ 889 $ 689 $ 1,459 $ 7,522

Accrued and Other Liabilities (

Accrued and Other Liabilities (Tables)	12 Months Ended
	Dec. 31, 2017
Accrued and Other Liabilities
Accrued and other liabilities summary	As of December 31, 2017 and 2016, accrued and other liabilities consisted of the following (in thousands): December 31, 2017 2016 Accrued interest $ 5,786 $ 10,900 Accrued compensation 7,307 6,865 Warranty reserve 4,916 4,033 Infrastructure obligations 6,075 5,979 Contingent consideration — 2,400 Other 5,109 4,121 Total $ 29,193 $ 34,298

Share-Based Payments and Othe31

Share-Based Payments and Other Compensation (Tables)	12 Months Ended
	Dec. 31, 2017
Share-Based Payments and Other Compensation
Summary of weighted-average assumptions	2017 2016 2015 Dividend yield — % — % — % Volatility rate 33.7 % 40.5 % 38.0 % Risk-free interest rate 1.46 % 0.91 % 1.10 % Expected life (years) 2.92 2.91 2.95 Weighted average fair value of units granted $ 19.19 $ 3.37 $ 5.95
Summary of stock options activity	For the Years Ended December 31, 2017 2016 2015 Weighted Weighted Weighted Average Average Average Stock Exercise Price Stock Exercise Price Stock Exercise Price Options Per Share Options Per Share Options Per Share Outstanding as of beginning of year 445,036 $ 17.05 545,036 $ 17.01 555,036 $ 17.00 Granted 95,674 17.74 — — — — Exercised — — — — — — Forfeited — — (100,000) 16.80 (10,000) 16.80 Outstanding as of end of year 540,710 $ 17.17 445,036 $ 17.05 545,036 $ 17.01 Exercisable as of end of year 468,958 $ 17.09 333,777 $ 17.05 272,518 $ 17.01
Summary of restricted stock and stock units activity	For the Years Ended December 31, 2017 2016 Performance-Based Service-Based Performance-Based Service-Based Weighted Weighted Weighted Weighted Number of Average Number of Average Number of Average Number of Average Shares or Grant Date Shares or Grant Date Shares or Grant Date Shares or Grant Date Units Fair Value Units (1) Fair Value Units Fair Value Units (1) Fair Value Outstanding as of beginning of year 305,543 $ 4.78 157,264 $ 11.75 235,746 $ 8.55 116,592 $ 15.57 Granted 82,349 18.32 101,644 17.31 198,174 3.37 154,176 10.43 Vested (6,536) 15.80 (88,412) 13.56 (10,821) 15.80 (74,571) 13.26 Expired/forfeited/cancelled (153,801) 5.64 (25,869) 12.45 (117,556) 7.38 (38,933) 11.95 Outstanding as of end of year 227,555 $ 11.16 144,627 $ 20.72 305,543 $ 4.78 157,264 $ 11.75 (1) Restricted stock shares are considered legally outstanding but are not considered outstanding for accounting purposes until the vesting conditions are satisfied in accordance with authoritative accounting guidance. Additionally, the balances do not include the restricted stock units deferred under our director deferral program discussed below.

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2017
Income Taxes
Components of income tax expense (benefit)	The components of income tax expense (benefit) for the years ended December 31, 2017, 2016 and 2015 are as follows (in thousands): For the Years Ended December 31, 2017 2016 2015 Current: Federal $ 80 $ 542 $ 253 State 296 364 183 Total current 376 906 436 Deferred: Federal 38,303 (93,383) — State 1,589 (17,044) — Total deferred 39,892 (110,427) — Total income tax expense (benefit) $ 40,268 $ (109,521) $ 436
Components of deferred income tax assets and liabilities	Significant components of deferred income tax assets and liabilities as of December 31, 2017 and 2016 are as follows (in thousands): December 31, 2017 2016 Deferred tax assets: Net operating loss carryforward and credits $ 32,829 $ 47,529 Impairment charges 28,926 48,311 Other inventory valuation adjustments 7,929 13,819 Other reserves and accruals 3,366 5,028 Land development reserves 3,180 5,270 Executive incentive compensation 1,875 2,352 Total deferred tax assets 78,105 122,309 Valuation allowance for deferred tax assets — — Deferred tax assets, net of valuation allowance 78,105 122,309 Deferred tax liabilities: Deferred gain (3,495) (6,246) Goodwill (1,524) (1,013) State taxes (1,426) (2,800) Depreciation (844) (1,222) Capitalized expenses (451) (771) Total deferred tax liabilities (7,740) (12,052) Deferred tax assets, net $ 70,365 $ 110,257
Reconciliation of income tax expense (benefit)	A reconciliation of income tax expense (benefit) to the expected income tax expense (benefit) at the federal statutory rate of 35% for each of the years ended December 31, 2017, 2016 and 2015 is as follows (in thousands): For the Years Ended December 31, 2017 2016 2015 Income tax expense computed at statutory rate $ 6,416 $ 13,155 $ 4,320 State income tax expense, net of federal benefit 506 1,201 1,452 Remeasurement of deferred tax assets (lower federal rate) 32,484 — — Change in valuation allowance on deferred tax assets — (124,525) (5,336) Change in state rate 395 688 — Share-based compensation costs 470 — — Other (3) (40) — Income tax expense (benefit) $ 40,268 $ (109,521) $ 436

Segment Information (Tables)

Segment Information (Tables)	12 Months Ended
	Dec. 31, 2017
Segment Information
Reportable Segment Information	The following table summarizes our information for reportable segments for the years ended December 31, 2017, 2016 and 2015 (in thousands): For the Years Ended December 31, 2017 2016 2015 Operating income: Florida Revenues: Homebuilding $ 363,477 $ 373,383 $ 300,260 Amenity and other 17,061 11,698 12,385 Land sales 3,349 3,116 6,466 Total revenues 383,887 388,197 319,111 Expenses: Homebuilding cost of revenue 287,415 291,372 239,001 Homebuilding selling, general and administrative 40,478 46,113 38,500 Amenity and other 14,749 11,062 10,587 Land sales 579 770 823 Segment operating income $ 40,666 $ 38,880 $ 30,200 Carolinas Revenues: Homebuilding $ 306,068 $ 238,549 $ 114,277 Land sales 1,042 265 — Total revenues 307,110 238,814 114,277 Expenses: Homebuilding cost of revenue 266,642 205,348 95,232 Homebuilding selling, general and administrative 32,444 22,807 12,205 Land sales 1,026 289 — Segment operating income $ 6,998 $ 10,370 $ 6,840 Arizona Revenues: Homebuilding $ 152,071 $ 152,109 $ 84,378 Land sales 185 185 — Total revenues 152,256 152,294 84,378 Expenses: Homebuilding cost of revenue 128,447 128,751 71,305 Homebuilding selling, general and administrative 15,198 14,994 11,981 Amenity and other 89 86 115 Land sales 180 171 — Segment operating income $ 8,342 $ 8,292 $ 977 Operating income $ 56,006 $ 57,542 $ 38,017 Unallocated income (expenses): Interest income and other 1,063 16 308 Corporate general and administrative expenses (18,271) (16,305) (16,900) Loss on extinguishment of debt (9,848) — — Interest expense (10,618) (3,667) (9,039) Income before income taxes 18,332 37,586 12,386 Income tax expense (benefit) 40,268 (109,521) 436 Net income (loss) $ (21,936) $ 147,107 $ 11,950 2017 2016 Segment assets: Florida $ 312,383 $ 317,398 Carolinas 238,941 178,333 Arizona 141,566 158,783 Unallocated assets 317,254 185,719 Total assets $ 1,010,144 $ 840,233

Fair Value Disclosures (Tables)

Fair Value Disclosures (Tables)	12 Months Ended
	Dec. 31, 2017
Fair Value Disclosures
Fair value, by Balance Sheet Grouping	The carrying amounts and fair values of our financial liabilities as of December 31, 2017 and 2016 are as follows (in thousands): December 31, 2017 December 31, 2016 Carrying Fair Carrying Fair Amount Value Amount Value Senior notes: 6.625% Notes, net (1) $ 392,909 $ 420,480 $ — $ — 6.00% Notes, net (1) 79,199 90,240 78,878 84,984 8.50% Notes, net (1) — — 196,782 206,500 Contingent consideration (earn-out) (2) — — 2,400 2,400 (1) The carrying amounts are net of unamortized deferred financing costs and certain debt discounts. (2) During the year ended December 31, 2017, we paid $2.4 million of earn-out and reduced the carrying amount of earn-out accrued during 2017 by $1.8 million to its estimated fair value, which is included in selling, general and administrative expenses on our consolidated statement of operations.

Unaudited Quarterly Financial35

Unaudited Quarterly Financial Data (Tables)	12 Months Ended
	Dec. 31, 2017
Unaudited Quarterly Information
Summarized quarterly financial data	Summarized quarterly financial data for 2017 and 2016 is as follows (dollars in thousands): 2017 Quarter First Second Third Fourth Total revenues $ 155,548 $ 201,194 $ 205,739 $ 280,772 Total expenses 151,380 199,725 208,088 265,728 Income (loss) before income taxes 4,168 1,469 (2,349) 15,044 Less: income tax expense (benefit) 1,729 822 (872) 38,589 Net income (loss) $ 2,439 $ 647 $ (1,477) $ (23,545) Earnings (loss) per share: (1) Basic $ 0.11 $ 0.03 $ (0.07) $ (1.05) Diluted $ 0.11 $ 0.03 $ (0.07) $ (1.05) 2016 Quarter First Second Third Fourth Total revenues $ 124,090 $ 188,096 $ 205,427 $ 261,692 Total expenses 123,231 180,800 193,492 244,196 Income before income taxes 859 7,296 11,935 17,496 Less: income tax expense (benefit) 68 (110,065) 38 438 Net income $ 791 $ 117,361 $ 11,897 $ 17,058 Earnings per share: (1) Basic $ 0.04 $ 5.24 $ 0.53 $ 0.77 Diluted $ 0.04 $ 4.45 $ 0.49 $ 0.68 (1) Quarterly and year-to-date computations of per share amounts are made independently. Therefore, the sum of per share amounts for the quarters may not be consistent with the per share amounts for the year.

Summary of Significant Accoun36

Summary of Significant Accounting Policies - TPG Investment in Company (Details) - TPG Management - USD ($) $ in Millions	Jun. 19, 2013	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
TPG Investment in Company
Ownership percentage (percent)		43.70%
Management Services Agreement
TPG Investment in Company
Monitoring fee (up to)	$ 0.5
TPG ownership percentage (at least)	30.00%
Payments for Fees		$ 0.4	$ 0.4	$ 0.4

Summary of Significant Accoun37

Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Summary of Significant Accounting Policies
Restricted cash	$ 1,165	$ 1,231

Summary of Significant Accoun38

Summary of Significant Accounting Policies - Inventories and Property (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Land and Other Inventories
Land and other inventories, impairment assessment	$ 943	$ 769	$ 0
Investment in nonconsolidated entities
Investment in nonconsolidated entities	$ 300	$ 1,200
Land Improvements | Minimum
Property and Equipment, net
Estimated useful lives	5 years
Land Improvements | Maximum
Property and Equipment, net
Estimated useful lives	15 years
Building and Improvements | Minimum
Property and Equipment, net
Estimated useful lives	3 years
Building and Improvements | Maximum
Property and Equipment, net
Estimated useful lives	40 years
Machinery, Equipment and Fixtures | Minimum
Property and Equipment, net
Estimated useful lives	3 years
Machinery, Equipment and Fixtures | Maximum
Property and Equipment, net
Estimated useful lives	10 years

Summary of Significant Accoun39

Summary of Significant Accounting Policies - Advertising Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Advertising Costs
Advertising costs	$ 4	$ 3.6	$ 3

Summary of Significant Accoun40

Summary of Significant Accounting Policies - Warranty Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Changes in the warranty reserve
Accrued warranty reserve, beginning of period	$ 4,033	$ 3,333	$ 1,528
Reserve provided	5,089	3,864	3,974
Payments	(4,206)	(3,164)	(2,169)
Accrued warranty reserve, end of period	$ 4,916	$ 4,033	$ 3,333

Summary of Significant Accoun41

Summary of Significant Accounting Policies - Share-Based Compensation (Details) shares in Millions	12 Months Ended
	Dec. 31, 2017shares
2015 Incentive Compensation Plan
Share-based Compensation
Expiration period	10 years
Shares available for grant (in shares)	1.5
Shares reserved for issuance	0.3
Incentive Plan
Share-based Compensation
Shares reserved for issuance	0.5

Summary of Significant Accoun42

Summary of Significant Accounting Policies - Employee Benefit Plans (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Summary of Significant Accounting Policies
Defined contribution plan, Employer discretionary contributions	$ 0.3	$ 0.3	$ 0

Summary of Significant Accoun43

Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Summary of Significant Accounting Policies
Weighted average shares, issuance of restricted stock									100	100	100
Nonvested restricted stock shares excluded from total weighted average shares	0				100				0	100	300
Numerator:
Basic net income (loss)	$ (23,545)	$ (1,477)	$ 647	$ 2,439	$ 17,058	$ 11,897	$ 117,361	$ 791	$ (21,936)	$ 147,107	$ 11,950
Effect of diluted securities										2,969
Diluted net income (loss)									$ (21,936)	$ 150,076	$ 11,950
Denominator:
Basic weighted average shares outstanding (in shares)									22,493	22,346	22,010
Effect of diluted securities (in shares)										4,163	120
Diluted weighted average shares outstanding (in shares)									22,493	26,509	22,130
Basic earnings (loss) per share (in dollars per share)	$ (1.05)	$ (0.07)	$ 0.03	$ 0.11	$ 0.77	$ 0.53	$ 5.24	$ 0.04	$ (0.98)	$ 6.58	$ 0.54
Diluted earnings (loss) per share (in dollars per share)	$ (1.05)	$ (0.07)	$ 0.03	$ 0.11	$ 0.68	$ 0.49	$ 4.45	$ 0.04	$ (0.98)	$ 5.66	$ 0.54

Business Acquisition - (Details

Business Acquisition - (Details) $ in Thousands	Dec. 31, 2017USD ($)	Apr. 03, 2017USD ($)	Jul. 01, 2015USD ($)item	Dec. 31, 2017USD ($)	Sep. 30, 2017USD ($)	Jun. 30, 2017USD ($)	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Business Acquisitions
Contingent consideration (earn-out)												$ 1,818		$ 6,000
Total revenues				$ 280,772	$ 205,739	$ 201,194	$ 155,548	$ 261,692	$ 205,427	$ 188,096	$ 124,090	843,253	$ 779,305	517,766
Net income (loss)				$ (23,545)	$ (1,477)	$ 647	$ 2,439	$ 17,058	$ 11,897	$ 117,361	$ 791	(21,936)	$ 147,107	$ 11,950
Savvy Homes
Business Acquisitions
Acquisition price		$ 42,968
Total revenues												53,200
Net income (loss)												$ (4,000)
Bonterra Builders, LLC
Business Acquisitions
Acquisition price			$ 99,759
Contingent consideration payments			5,700
Consideration held as security			$ 800
Number of primary residential lots | item			1,700
Earn-out | Savvy Homes
Business Acquisitions
Contingent consideration (earn-out)	$ 0	$ 1,818
Reversal of earn-out	$ 1,800
Earn-out | Bonterra Builders, LLC
Business Acquisitions
Contingent consideration (earn-out)			$ 6,000

Business Acquisition - Purchase

Business Acquisition - Purchase Price Consideration and Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Apr. 03, 2017	Jul. 01, 2015	Dec. 31, 2017	Dec. 31, 2015	Dec. 31, 2016
Business Acquisitions
Contingent consideration (earn-out)				$ 1,818	$ 6,000
Assets
Goodwill	$ 30,290			$ 30,290		$ 19,285
Savvy Homes
Business Acquisitions
Cash payments to acquire businesses		$ 41,150
Total consideration		42,968
Assets
Receivables and other assets		159
Land and other inventories		39,311
Property, plant and equipment		168
Goodwill		11,005
Total assets acquired		51,050
Liabilities
Accounts payable		7,692
Accrued and other liabilities		390
Total liabilities assumed		8,082
Total net assets acquired		42,968
Bonterra Builders, LLC
Business Acquisitions
Cash payments to acquire businesses			$ 40,818
Debt repaid at closing			52,941
Total consideration			99,759
Assets
Receivables and other assets			574
Land and other inventories			91,632
Property, plant and equipment			14
Intangibles			2,000
Goodwill			13,223
Total assets acquired			107,443
Liabilities
Accounts payable			5,071
Accrued and other liabilities			763
Customer deposits			1,850
Total liabilities assumed			7,684
Total net assets acquired			99,759
Trade Name | Savvy Homes
Assets
Intangibles		407
Trade Name | Bonterra Builders, LLC
Assets
Intangibles			1,400
Non-compete intangible asset | Bonterra Builders, LLC
Assets
Intangibles			600
Earn-out | Savvy Homes
Business Acquisitions
Contingent consideration (earn-out)	$ 0	$ 1,818
Earn-out | Bonterra Builders, LLC
Business Acquisitions
Contingent consideration (earn-out)			$ 6,000

Business Acquisition - Fair Val

Business Acquisition - Fair Value (Details) - USD ($) $ in Thousands	Apr. 03, 2017	Jul. 01, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Bonterra Builders, LLC
Fair value, Transaction Costs, and Goodwill
Intangibles		$ 2,000
Amortization of Intangible Assets			$ 500	$ 400	$ 300
Decrease in goodwill due to post-closing purchase price adjustments					1,700
Transaction and integration costs					$ 900
Savvy Homes
Fair value, Transaction Costs, and Goodwill
Transaction and integration costs			1,000
Trade Name | Bonterra Builders, LLC
Fair value, Transaction Costs, and Goodwill
Intangibles		$ 1,400
Amortization period (in years)		5 years
Trade Name | Savvy Homes
Fair value, Transaction Costs, and Goodwill
Intangibles	$ 407
Amortization period (in years)	2 years 9 months
Amortization of Intangible Assets			$ 100
Non-compete intangible asset | Bonterra Builders, LLC
Fair value, Transaction Costs, and Goodwill
Intangibles		$ 600
Amortization period (in years)		3 years

Business Acquisition - Pro Form

Business Acquisition - Pro Forma Operating Results (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Savvy Homes
Business Acquisitions
Revenue	$ 860,723	$ 850,937
Net income (loss)	$ (21,722)	$ 150,195
Income (loss) per common share - basic	$ (0.97)	$ 6.72
Income (loss) per common share - diluted	$ (0.97)	$ 5.78
Bonterra Builders, LLC
Business Acquisitions
Revenue			$ 588,533
Net income (loss)			$ 17,158
Revenue included in consolidated statements of operations since acquisition	$ 168,800	$ 177,600
Net income included in consolidated statements of operations since acquisition	$ 7,200	$ 7,900

Land and Other Inventories (Det

Land and Other Inventories (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Land and Other Inventories
Land held for future development	$ 29,312	$ 29,089
Land developed and in process of development	351,798	349,891
Homes completed or under construction	222,741	205,428
Total Land and other inventories	603,851	584,408
Interest Expense
Interest incurred	32,490	26,145	$ 28,207
Interest capitalized	(21,872)	(22,478)	(19,168)
Interest expense	$ 10,618	$ 3,667	$ 9,039

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Land and Other Inventories
Gross property and equipment	$ 75,946	$ 74,025
Less: accumulated depreciation	(43,282)	(40,345)
Property and equipment, net	32,664	33,680
Land Improvements
Land and Other Inventories
Gross property and equipment	24,420	23,820
Building and Improvements
Land and Other Inventories
Gross property and equipment	38,821	38,367
Machinery, Equipment and Fixtures
Land and Other Inventories
Gross property and equipment	5,877	5,185
Capital leases	2,100
Accumulated depreciation of capital leased assets	1,700
Motor vehicles
Land and Other Inventories
Gross property and equipment	521	521
Furniture and Fixtures
Land and Other Inventories
Gross property and equipment	4,016	4,033
Capitalized software
Land and Other Inventories
Gross property and equipment	$ 2,291	$ 2,099

Investments in Unconsolidated50

Investments in Unconsolidated Entities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Investments in Unconsolidated Entities
Contributions to unconsolidated entities	$ 267	$ 20	$ 2,887
Investments in unconsolidated entities	$ 300	$ 1,200
Maximum
Investments in Unconsolidated Entities
Ownership percentage (percent)	100.00%
Encore
Investments in Unconsolidated Entities
Ownership percentage (percent)	58.00%
Preferred Lender
Investments in Unconsolidated Entities
Ownership percentage (percent)	50.00%

Debt - Summary (Details)

Debt - Summary (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Debt
Total Senior Debt	$ 480,000	$ 280,000
Deferred debt issuance costs	(7,853)	(4,285)
Debt discount	(39)	(55)
Total Senior Debt, net	472,108	275,660
6.625% Senior Notes Due 2022
Debt
Total Senior Debt	400,000
6.00% Senior Convertible Notes Due 2020
Debt
Total Senior Debt	80,000	80,000
8.5% Senior Notes Due 2019
Debt
Total Senior Debt		200,000
Senior Secured Credit Facility
Debt
Total Senior Debt	$ 0	$ 0

Debt - 6.625% Senior Notes (Det

Debt - 6.625% Senior Notes (Details) - USD ($)	May 18, 2017	Dec. 31, 2017	Dec. 31, 2016	Jun. 30, 2014
6.625% Senior Notes Due 2022
Debt
Aggregate principal amount	$ 400,000,000
Stated interest rate (percent)	6.625%
Consolidation, Wholly Owned Subsidiary, Parent Ownership Interest, Percentage	100.00%
6.625% Senior Notes Due 2022 | Covenant Replacement Event
Debt
Redemption price (percent)	101.00%
6.625% Senior Notes Due 2022 | Redemption prior to May 15, 2019 via certain equity offerings
Debt
Redemption amount as a percentage of principal	35.00%
Redemption price (percent)	106.625%
6.625% Senior Notes Due 2022 | Redemption prior to May 15, 2019
Debt
Redemption amount as a percentage of principal	100.00%
6.625% Senior Notes Due 2022 | Minimum | Redemption prior to May 15, 2019 via certain equity offerings
Debt
Remaining debt (percent)	65.00%
8.5% Senior Notes Due 2019
Debt
Aggregate principal amount	$ 200,000,000
Stated interest rate (percent)	8.50%		8.50%
Senior Notes | 8.5% Senior Notes Due 2019
Debt
Aggregate principal amount				$ 200,000,000
Stated interest rate (percent)		6.625%		8.50%
Senior Secured Credit Facility
Debt
Aggregate principal amount	$ 30,000,000

Debt - 6.00% Senior Convertible

Debt - 6.00% Senior Convertible Notes due 2020 (Details) - USD ($)	Jun. 23, 2015	Jun. 17, 2015	Dec. 31, 2017	Dec. 31, 2016
6.00% Senior Convertible Notes Due 2020
Debt
Stated interest rate (percent)	6.00%
Aggregate principal amount	$ 80,000,000
Proceeds from notes	64,500,000
7.50% Exchange Notes and 7.50% Notes
Debt
Cash paid for interest	1,500,000
Amount of debt repurchased	$ 30,700,000
7.50% Senior Exchange Convertible Notes
Debt
Stated interest rate (percent)	7.50%
Amount of debt repurchased	$ 15,400,000
TPG Aviator, L.P. | 6.00% Senior Convertible Notes Due 2020
Debt
Aggregate principal amount		$ 20,000,000
Ownership interest (as a percent)		43.50%
Proceeds from notes		$ 20,000,000
Senior Notes | 6.00% Senior Convertible Notes Due 2020
Debt
Stated interest rate (percent)			6.00%	6.00%

Debt - 8.50% Senior Notes due 2

Debt - 8.50% Senior Notes due 2019 (Details) - USD ($)	May 18, 2017	Dec. 31, 2017	Jul. 01, 2017	Dec. 31, 2016	Jun. 30, 2014
Debt
Loss on extinguishment of debt		$ 9,848,000
8.5% Senior Notes Due 2019
Debt
Stated interest rate (percent)	8.50%			8.50%
Aggregate principal amount	$ 200,000,000
Amount of debt repurchased	$ 45,500,000		$ 154,500,000
Percentage of debt repurchased	23.00%
Purchase price of debt	$ 1,038.87
Early tender purchase price of debt	$ 6.99
Loss on extinguishment of debt		9,800,000
Redemption premium		$ 4,900,000
6.625% Senior Notes Due 2022
Debt
Stated interest rate (percent)	6.625%
Aggregate principal amount	$ 400,000,000
Consolidation, Wholly Owned Subsidiary, Parent Ownership Interest, Percentage	100.00%
Senior Notes | 8.5% Senior Notes Due 2019
Debt
Stated interest rate (percent)		6.625%			8.50%
Aggregate principal amount					$ 200,000,000
Senior Notes | 8.5% Senior Notes Due 2019 | Subsidiary guarantors
Debt
Parent ownership percentage (percent)		100.00%

Debt - Senior Secured and Senio

Debt - Senior Secured and Senior Unsecured Credit Facility (Details) - USD ($) $ in Thousands	May 18, 2017	Dec. 31, 2017	Dec. 31, 2016
Debt
Borrowings outstanding		$ 480,000	$ 280,000
Net proceeds of equity offerings (percent)	50.00%
Senior Unsecured Credit Facility
Debt
Maximum borrowing capacity	$ 155,000	$ 155,000
Conditional maximum borrowing capacity	$ 250,000
Letter of credit borrowing percentage	50.00%
Unrestricted cash in the borrowing base (percent)	100.00%
Commitment fee (percent)	0.50%
Leverage ratio	60
Interest coverage ratio	1.50
Tangible net worth	$ 325,100
Net income percentage	50.00%
Senior Unsecured Credit Facility | LIBOR
Debt
Variable rate (percent)	3.25%
Senior Unsecured Credit Facility | Prime Rate
Debt
Variable rate (percent)	2.25%
Senior Unsecured Credit Facility | Property under contract or construction
Debt
Book value included in the borrowing base (percent)	85.00%
Senior Unsecured Credit Facility | Finished lots and lots under development
Debt
Book value included in the borrowing base (percent)	65.00%
Senior Unsecured Credit Facility | Entitled lands
Debt
Book value included in the borrowing base (percent)	50.00%

Debt - Maturities (Details)

Debt - Maturities (Details) $ in Thousands	Dec. 31, 2017USD ($)
Maturities of notes payable:
2,020	$ 80,000
2,022	400,000
Total	$ 480,000

Lease Commitments (Details)

Lease Commitments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Noncancelable operating leases
2,018	$ 1,456
2,019	1,483
2,020	1,195
2,021	889
2,022	689
Thereafter	1,459
Total	7,171
Capital lease obligations
2,018	151
2,019	44
Total	195
Leased model homes
2,018	156
2,019	0
Total	156
Total
2,018	1,763
2,019	1,527
2,020	1,195
2,021	889
2,022	689
Thereafter	1,459
Total	7,522
Administration and Sales Offices
Rental expense
Rental expense	$ 1,100	$ 1,200	$ 900

Accrued and Other Liabilities58

Accrued and Other Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Accrued and Other Liabilities
Accrued interest	$ 5,786	$ 10,900
Accrued compensation	7,307	6,865
Warranty reserve	4,916	4,033
Infrastructure obligations	6,075	5,979
Contingent consideration (earn-out)		2,400
Other	5,109	4,121
Total	$ 29,193	$ 34,298

Estimated Development Liabili59

Estimated Development Liability (Details) home in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)home	Dec. 31, 2016USD ($)
Estimated Development Liability
Cash expenditures for obligations related to prior sales	$ 500
Estimated development liability	$ 31,556	$ 32,102
Minimum
Estimated Development Liability
Number of estimated homes the estimated liability covers (homesites) | home	8

Share-Based Payments and Othe60

Share-Based Payments and Other Compensation - Plan Information (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation
Share-based compensation cost	$ 3.3	$ 2.4	$ 3.1
Granted, in shares	95,674
Restricted Stock
Share-based Compensation
Granted, in shares	75,718
Vesting period	4 years
Restricted Stock | Non-employee directors
Share-based Compensation
Granted, in shares	25,926
Performance-based restricted shares
Share-based Compensation
Restricted stock granted, in shares	82,349	198,174
Granted, in shares	82,349
Weighted average fair value of units granted (in dollars per share)	$ 18.32	$ 3.37
Stock options
Share-based Compensation
Granted, in shares	95,674
Vesting period	4 years
Weighted average expense recognition period (in years)	2 years
Unrecognized compensation expense for unvested stock options	$ 0.3
Restricted Stock and RSUs
Share-based Compensation
Restricted stock granted, in shares	101,644	154,176
Weighted average fair value of units granted (in dollars per share)	$ 17.31	$ 10.43
Unrecognized compensation expense	$ 2.5
Weighted average expense recognition period (in years)	1 year 7 months 6 days
The Incentive Plan
Share-based Compensation
Shares reserved for issuance	500,000
The Incentive Plan | Stock options
Share-based Compensation
Expiration period	10 years
2015 Plan
Share-based Compensation
Shares reserved for issuance	300,000
Shares available for grant (in shares)	1,500,000

Share-Based Payments and Othe61

Share-Based Payments and Other Compensation - Weighted Average Assumptions (Details) - Stock Options - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation
Volatility rate	33.70%	40.50%	38.00%
Risk-free interest rate	1.46%	0.91%	1.10%
Expected life (years)	2 years 11 months 1 day	2 years 10 months 28 days	2 years 11 months 12 days
Weighted average fair value of units granted (in dollars per share)	$ 19.19	$ 3.37	$ 5.95

Share-Based Payments and Othe62

Share-Based Payments and Other Compensation - Summary of Stock Option Activity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Stock options
Outstanding as of beginning of year, in shares	445,036	545,036	555,036
Granted, in shares	95,674
Forfeited, in shares		(100,000)	(10,000)
Outstanding at beginning of year, in shares	540,710	445,036	545,036
Exercisable at end of year, in shares	468,958	333,777	272,518
Weighted Average Exercise Price Per Share
Outstanding at beginning of year, in dollars per share	$ 17.05	$ 17.01	$ 17
Granted, in dollars per share	17.74
Forfeited, in dollars per share		16.80	16.80
Outstanding at end of year, in dollars per share	17.17	17.05	17.01
Exercisable at the end of year, in dollars per share	$ 17.09	$ 17.05	$ 17.01
Stock options, additional information
Weighted average remaining contractual life of stock options	9 years 1 month 6 days

Share-Based Payments and Othe63

Share-Based Payments and Other Compensation - Restricted Stock and Stock Units Activity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Restricted Stock and Stock Units
Outstanding at beginning of year, in shares	100,000	300,000
Outstanding at end of year, in shares	0	100,000
Performance-based restricted shares
Restricted Stock and Stock Units
Outstanding at beginning of year, in shares	305,543	235,746
Restricted stock granted, in shares	82,349	198,174
Vested, in shares	(6,536)	(10,821)
Expired/forfeited/cancelled, in shares	(153,801)	(117,556)
Outstanding at end of year, in shares	227,555	305,543
Weighted Average Grant Date Fair Value
Outstanding at the beginning of year (in dollars per share)	$ 4.78	$ 8.55
Granted (in dollars per share)	18.32	3.37
Vested (in dollars per share)	15.80	15.80
Expired/Forfeited/Cancelled (in dollars per share)	5.64	7.38
Outstanding at the end of year (in dollars per share)	$ 11.16	$ 4.78
Restricted Stock and RSUs
Restricted Stock and Stock Units
Outstanding at beginning of year, in shares	157,264	116,592
Restricted stock granted, in shares	101,644	154,176
Vested, in shares	(88,412)	(74,571)
Expired/forfeited/cancelled, in shares	(25,869)	(38,933)
Outstanding at end of year, in shares	144,627	157,264
Weighted Average Grant Date Fair Value
Outstanding at the beginning of year (in dollars per share)	$ 11.75	$ 15.57
Granted (in dollars per share)	17.31	10.43
Vested (in dollars per share)	13.56	13.26
Expired/Forfeited/Cancelled (in dollars per share)	12.45	11.95
Outstanding at the end of year (in dollars per share)	$ 20.72	$ 11.75

Share-Based Payments and Othe64

Share-Based Payments and Other Compensation - Deferred Compensation (Details) - Non-management Director - Restricted Stock Units (RSUs) - Director Deferral Program - shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Deferred compensation
Maximum percentage of qualified remuneration	100.00%
Stock units distributed as shares	0	0	0
Stock units outstanding	76,611	60,955	50,376

Income Taxes - Components of Ta

Income Taxes - Components of Tax Expense (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Current
Federal									$ 80	$ 542	$ 253
State									296	364	183
Total current									376	906	436
Deferred
Federal									38,303	(93,383)
State									1,589	(17,044)
Total deferred									39,892	(110,427)
Total income tax expense	$ (38,589)	$ 872	$ (822)	$ (1,729)	$ (438)	$ (38)	$ 110,065	$ (68)	$ 40,268	$ (109,521)	$ 436

Income Taxes - Deferred Tax Ass

Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Deferred income tax assets:
Net operating loss carryforward and credits	$ 32,829	$ 47,529
Impairment charges	28,926	48,311
Other inventory valuation adjustments	7,929	13,819
Other reserves and accruals	3,366	5,028
Land development reserves	3,180	5,270
Executive incentive compensation	1,875	2,352
Total deferred income tax assets	78,105	122,309
Net deferred income tax assets	78,105	122,309
Deferred income tax liabilities:
Deferred gain	(3,495)	(6,246)
Goodwill	(1,524)	(1,013)
State taxes	(1,426)	(2,800)
Depreciation	(844)	(1,222)
Capitalized expenses	(451)	(771)
Total deferred income tax liabilities	(7,740)	(12,052)
Deferred tax assets, net	$ 70,365	$ 110,257

Income Taxes - Carryforwards (D

Income Taxes - Carryforwards (Details) $ in Millions	12 Months Ended
	Dec. 31, 2017USD ($)
Federal
Operating Loss Carryforwards
NOL carryforwards	$ 98.7
State
Operating Loss Carryforwards
NOL carryforwards	$ 259
Maximum | Federal
Operating Loss Carryforwards
NOL carryforward period of use	20 years
Maximum | State
Operating Loss Carryforwards
NOL carryforward period of use	20 years

Income Taxes - Valuation Allowa

Income Taxes - Valuation Allowance (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Valuation allowances
Net deferred tax assets	$ 78,105				$ 122,309				$ 78,105	$ 122,309
Income (loss) before income taxes	$ 15,044	$ (2,349)	$ 1,469	$ 4,168	$ 17,496	$ 11,935	$ 7,296	$ 859	18,332	37,586	$ 12,386
Homebuilding revenues									$ 821,616	$ 764,041	$ 498,915

Income Taxes - Effective Tax Ra

Income Taxes - Effective Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Effective income tax rate reconciliation, percent
Federal statutory rate (as a percent)										35.00%	35.00%	35.00%
Effective income tax rate reconciliation
Income tax (benefit) expense computed at statutory rate										$ 6,416	$ 13,155	$ 4,320
State income tax (benefit) expense, net of federal benefit										506	1,201	1,452
Remeasurement of deferred tax assets (lower federal rate)										32,484
Change in valuation allowance on deferred tax assets											(124,525)	(5,336)
Change in state rate										395	688
Share-based compensation costs										470
Other										(3)	(40)
Total income tax expense	$ (38,589)	$ 872	$ (822)	$ (1,729)	$ (438)	$ (38)	$ 110,065	$ (68)		$ 40,268	$ (109,521)	$ 436
Forecast
Effective income tax rate reconciliation, percent
Federal statutory rate (as a percent)									21.00%

Commitments and Contingencies -

Commitments and Contingencies - Surety Bonds (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Surety Bonds
Commitments and Contingencies
Loss contingency on certain claims	$ 36.1	$ 30.6

Segment Information - Reportabl

Segment Information - Reportable Segments (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Operating income (loss):
Homebuilding revenues									$ 821,616	$ 764,041	$ 498,915
Amenity and other									17,061	11,698	12,385
Land sales									4,576	3,566	6,466
Total revenues	$ 280,772	$ 205,739	$ 201,194	$ 155,548	$ 261,692	$ 205,427	$ 188,096	$ 124,090	843,253	779,305	517,766
Expenses
Homebuilding cost of revenue									682,504	625,471	405,538
Homebuilding selling, general and administrative									106,391	100,219	79,586
Amenity and other									14,838	11,148	10,702
Land sales									1,785	1,230	823
Unallocated income (expenses):
Interest income and other									1,063	16	308
Corporate general and administrative expenses									(18,271)	(16,305)	(16,900)
Loss on extinguishment of debt									(9,848)
Interest expense									(10,618)	(3,667)	(9,039)
Income (loss) before income taxes	15,044	(2,349)	1,469	4,168	17,496	11,935	7,296	859	18,332	37,586	12,386
Income tax expense (benefit)	38,589	(872)	822	1,729	438	38	(110,065)	68	(40,268)	109,521	(436)
Net income (loss)	$ (23,545)	$ (1,477)	$ 647	$ 2,439	$ 17,058	$ 11,897	$ 117,361	$ 791	(21,936)	147,107	11,950
Operating Segments
Expenses
Segment operating income (loss)									56,006	57,542	38,017
Florida | Operating Segments
Operating income (loss):
Homebuilding revenues									363,477	373,383	300,260
Amenity and other									17,061	11,698	12,385
Land sales									3,349	3,116	6,466
Total revenues									383,887	388,197	319,111
Expenses
Homebuilding cost of revenue									287,415	291,372	239,001
Homebuilding selling, general and administrative									40,478	46,113	38,500
Amenity and other									14,749	11,062	10,587
Land sales									579	770	823
Segment operating income (loss)									40,666	38,880	30,200
Unallocated income (expenses):
Interest expense									0	0	0
Carolinas | Operating Segments
Operating income (loss):
Homebuilding revenues									306,068	238,549	114,277
Land sales									1,042	265
Total revenues									307,110	238,814	114,277
Expenses
Homebuilding cost of revenue									266,642	205,348	95,232
Homebuilding selling, general and administrative									32,444	22,807	12,205
Land sales									1,026	289
Segment operating income (loss)									6,998	10,370	6,840
Unallocated income (expenses):
Interest expense									0	0	0
Arizona | Operating Segments
Operating income (loss):
Homebuilding revenues									152,071	152,109	84,378
Land sales									185	185
Total revenues									152,256	152,294	84,378
Expenses
Homebuilding cost of revenue									128,447	128,751	71,305
Homebuilding selling, general and administrative									15,198	14,994	11,981
Amenity and other									89	86	115
Land sales									180	171
Segment operating income (loss)									8,342	8,292	977
Unallocated income (expenses):
Interest expense									$ 0	$ 0	$ 0

Segment Information - Segment A

Segment Information - Segment Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Segment assets
Assets	$ 1,010,144	$ 840,233
Deferred tax assets, net	70,365	110,257
Property and equipment, net	32,664	33,680
Investments in unconsolidated entities	300	1,200
Receivables	13,702	10,827
Prepaid expenses and other assets	17,117	12,753
Corporate, Non-Segment
Segment assets
Assets	317,254	185,719
Deferred tax assets, net	70,400	110,300
Cash, cash equivalents and restricted cash	241,000	67,800
Property and equipment, net	800	1,200
Receivables	200	200
Prepaid expenses and other assets	4,800	5,100
Florida | Operating Segments
Segment assets
Assets	312,383	317,398
Carolinas | Operating Segments
Segment assets
Assets	238,941	178,333
Arizona | Operating Segments
Segment assets
Assets	$ 141,566	$ 158,783

Segment Information - Additiona

Segment Information - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Operating income (loss):
Interest expense	$ (10,618)	$ (3,667)	$ (9,039)
Depreciation and amortization	6,897	6,368	3,693
Other information
Goodwill	30,290	19,285
Operating Segments
Operating income (loss):
Impairment losses	900	800	0
Corporate, Non-Segment
Operating income (loss):
Depreciation and amortization	700	700	600
Florida | Operating Segments
Operating income (loss):
Interest expense	0	0	0
Depreciation and amortization	2,200	2,100	2,400
Other information
Goodwill	6,100
Carolinas | Operating Segments
Operating income (loss):
Interest expense	0	0	0
Depreciation and amortization	400	100	100
Other information
Goodwill	24,200
Arizona | Operating Segments
Operating income (loss):
Interest expense	0	0	0
Depreciation and amortization	$ 100	$ 0	$ 0

Fair Value Disclosures - Carryi

Fair Value Disclosures - Carrying and Fair Value (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	May 18, 2017	Jun. 23, 2015	Jun. 30, 2014
Fair Value Disclosures
Contingent consideration (earn-out)		$ 2,400,000
Payment of the earn-out	$ 2,972,000	4,548,000	$ 1,329,000
Reduction of earn-out	1,818,000	$ 422,000	$ 116,000
Earn-out
Fair Value Disclosures
Payment of the earn-out	2,400,000
Reduction of earn-out	1,800,000
6.625% Senior Notes Due 2022
Fair Value Disclosures
Stated interest rate (percent)				6.625%
6.00% Senior Convertible Notes Due 2020
Fair Value Disclosures
Stated interest rate (percent)					6.00%
8.5% Senior Notes Due 2019
Fair Value Disclosures
Stated interest rate (percent)		8.50%		8.50%
Carrying Amount | Earn-out
Fair Value Disclosures
Contingent consideration (earn-out)		$ 2,400,000
Carrying Amount | 6.625% Senior Notes Due 2022
Fair Value Disclosures
Debt	392,909,000
Carrying Amount | 6.00% Senior Convertible Notes Due 2020
Fair Value Disclosures
Debt	79,199	78,878
Carrying Amount | 8.5% Senior Notes Due 2019
Fair Value Disclosures
Debt		196,782,000
Fair Value | 8.5% Senior Notes Due 2019
Fair Value Disclosures
Debt		206,500,000
Fair Value | Level 2 | 6.625% Senior Notes Due 2022
Fair Value Disclosures
Debt	420,480,000
Fair Value | Level 2 | 6.00% Senior Convertible Notes Due 2020
Fair Value Disclosures
Debt	$ 90,240	84,984
Fair Value | Level 3 | Earn-out
Fair Value Disclosures
Contingent consideration (earn-out)		$ 2,400,000
Senior Notes | 6.00% Senior Convertible Notes Due 2020
Fair Value Disclosures
Stated interest rate (percent)	6.00%	6.00%
Senior Notes | 8.5% Senior Notes Due 2019
Fair Value Disclosures
Stated interest rate (percent)	6.625%					8.50%

Unaudited Quarterly Financial75

Unaudited Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Unaudited Quarterly Information
Total revenues	$ 280,772	$ 205,739	$ 201,194	$ 155,548	$ 261,692	$ 205,427	$ 188,096	$ 124,090	$ 843,253	$ 779,305	$ 517,766
Total expenses	265,728	208,088	199,725	151,380	244,196	193,492	180,800	123,231	824,921	741,719	505,380
Income before income taxes	15,044	(2,349)	1,469	4,168	17,496	11,935	7,296	859	18,332	37,586	12,386
Less: income tax expense (benefit)	38,589	(872)	822	1,729	438	38	(110,065)	68	(40,268)	109,521	(436)
Net income (loss)	$ (23,545)	$ (1,477)	$ 647	$ 2,439	$ 17,058	$ 11,897	$ 117,361	$ 791	$ (21,936)	$ 147,107	$ 11,950
Earnings (loss) per share:
Basic earnings (loss) per share (in dollars per share)	$ (1.05)	$ (0.07)	$ 0.03	$ 0.11	$ 0.77	$ 0.53	$ 5.24	$ 0.04	$ (0.98)	$ 6.58	$ 0.54
Diluted earnings (loss) per share (in dollars per share)	$ (1.05)	$ (0.07)	$ 0.03	$ 0.11	$ 0.68	$ 0.49	$ 4.45	$ 0.04	$ (0.98)	$ 5.66	$ 0.54

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ in Thousands

Jan. 18, 2018

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2016

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Business acquisition

Real Estate Revenue, Net

$ 280,772

$ 205,739

$ 201,194

$ 155,548

$ 261,692

$ 205,427

$ 188,096

$ 124,090

$ 843,253

$ 779,305

$ 517,766

Oakdale-Hampton Homes

Business acquisition

Real Estate Revenue, Net

$ 45,100

Subsequent Event | Oakdale-Hampton Homes

Business acquisition

Acquisition price

$ 43,000

Cash paid for earn-outs

3,000

Consideration held as security

$ 600