AV Homes 10-Q 4 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 27, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	AV Homes, Inc.
Entity Central Index Key	39,677
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		22,344,120
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Assets
Cash and cash equivalents	$ 22,252	$ 180,334
Restricted cash	26,273	16,447
Land and other inventories	619,881	383,184
Receivables	7,662	2,906
Property and equipment, net	35,556	36,922
Investments in unconsolidated entities	1,173	17,991
Prepaid expenses and other assets	22,326	20,980
Assets held for sale	0	4,051
Goodwill	21,017	6,071
Total Assets	756,140	668,886
Liabilities
Accounts payable	38,534	16,087
Accrued and other liabilities	33,404	28,134
Customer deposits	9,679	4,966
Estimated development liability	32,738	33,003
Notes payable	326,719	299,956
Credit facility	30,000	0
Total Liabilities	471,074	382,146
Stockholders' Equity
Common stock	22,456	22,183
Additional paid-in capital	398,996	396,989
Accumulated deficit	(133,367)	(129,413)
Equity before treasury stock	288,085	289,759
Treasury stock	(3,019)	(3,019)
Total Stockholders' Equity	285,066	286,740
Total Liabilities and Stockholders' Equity	$ 756,140	$ 668,886

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues
Homebuilding	$ 151,130	$ 71,127	$ 280,381	$ 145,155
Amenity and other	2,691	2,572	8,195	7,630
Land sales	6	12,942	3,470	29,168
Revenues	153,827	86,641	292,046	181,953
Expenses
Homebuilding	140,460	67,911	269,647	141,068
Amenity and other	2,221	2,603	7,034	8,215
Land sales	2	8,672	385	20,910
Total real estate expenses	142,683	79,186	277,066	170,193
General and administrative expenses	3,820	4,016	11,756	12,264
Interest income and other	(41)	(85)	(165)	(258)
Interest expense	1,840	2,841	7,503	2,952
Total expenses	148,302	85,958	296,160	185,151
Equity in earnings (loss) in unconsolidated entities	(5)	(5)	160	(10)
Net income (loss) before income taxes	5,520	678	(3,954)	(3,208)
Income tax expense (benefit)	0	0	0	0
Net income (loss) and comprehensive income (loss)	5,520	678	(3,954)	(3,208)
Net income attributable to non-controlling interests in consolidated entities	0	0	0	329
Net income (loss) and comprehensive income (loss) attributable to AV Homes stockholders	$ 5,520	$ 678	$ (3,954)	$ (3,537)
Basic earnings (loss) per share	$ 0.25	$ 0.03	$ (0.18)	$ (0.16)
Diluted earnings (loss) per share	$ 0.25	$ 0.03	$ (0.18)	$ (0.16)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
OPERATING ACTIVITIES
Net loss (including net income attributable to non-controlling interests)	$ (3,954,000)	$ (3,208,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	2,786,000	2,425,000
Amortization of stock-based compensation	2,320,000	2,141,000
Change in fair value of contingent consideration	(298,000)	0
Equity in loss (earnings) from unconsolidated entities	(160,000)	10,000
Gain on disposal of assets	(31,000)	0
Changes in operating assets and liabilities:
Restricted cash	(9,826,000)	(8,818,000)
Land and other inventories	(121,154,000)	(111,226,000)
Receivables	(4,182,000)	(200,000)
Assets held for sale	0	19,537,000
Prepaid expenses and other assets	2,391,000	469,000
Accounts payable, estimated development liability, and accrued and other liabilities	16,822,000	14,168,000
Customer deposits	2,863,000	2,105,000
NET CASH USED IN OPERATING ACTIVITIES	(112,423,000)	(82,597,000)
INVESTING ACTIVITIES
Investment in property and equipment	(1,075,000)	(549,000)
Proceeds from sales of property and equipment	31,000	12,000
Business acquisitions	(95,182,000)	(62,684,000)
Investment in unconsolidated entities	(2,882,000)	(1,955,000)
Return of capital from unconsolidated entities	0	33,000
NET CASH USED IN INVESTING ACTIVITIES	(99,108,000)	(65,143,000)
FINANCING ACTIVITIES
Gross proceeds from issuance of debt	79,926,000	200,000,000
Gross proceeds from credit facility	40,000,000	0
Debt issuance costs	(2,068,000)	(9,220,000)
Principal payments of debt	(53,163,000)	(5,421,000)
Payments of credit facility	(10,000,000)	0
Other financing activities, net	(1,246,000)	(501,000)
NET CASH PROVIDED BY FINANCING ACTIVITIES	53,449,000	184,858,000
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(158,082,000)	37,118,000
Cash and cash equivalents at beginning of period	180,334,000	144,727,000
CASH AND CASH EQUIVALENTS AT END OF PERIOD	22,252,000	181,845,000
Non-cash transactions:
Transfer from assets held for sale to land and other inventories	4,051,000	0
Distribution of land from unconsolidated joint venture	$ 19,860,000	$ 0

Basis of Financial Statement Pr

Basis of Financial Statement Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Basis of Financial Statement Presentation and Summary of Significant Accounting Policies	Basis of Financial Statement Presentation and 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. The interim consolidated financial statements have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Accordingly, they do not include all information and footnotes required by U.S generally accepted accounting principles ("GAAP") for complete financial statements. These statements reflect all normal and recurring adjustments which, in the opinion of management, are necessary to present fairly the financial position, results of operations and cash flows of AV Homes at September 30, 2015 and for all periods presented. These statements should be read in conjunction with our consolidated financial statements and notes thereto included in AV Homes' Annual Report on Form 10-K for the year ended December 31, 2014. All significant intercompany accounts and transactions have been eliminated in consolidation. Beginning with our Form 10-Q for the quarter ended March 31, 2015, certain revenue and expense balances were reclassified from "Homebuilding and amenity," as well as "Other real estate" into the line item "Amenity and other" to enhance the visibility to our core homebuilding operations. Use of Estimates The preparation of our consolidated financial statements in conformity with 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. 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 September 30, 2015 , 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 approximates their fair values. Our cash items that are restricted as to withdrawal or usage include deposits of $26.3 million and $16.4 million as of September 30 , 2015 and December 31, 2014 , respectively, associated with an interest reserve to comply with the terms of our Senior Secured Credit Facility (defined below). Land and Other Inventories Land and other inventories include expenditures for land acquisition, land development, home construction, 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 Accounting Standards Codification ("ASC") 360, Property, Plant and Equipment (“ASC 360”). We evaluate our land and other inventories for impairment on a quarterly basis in accordance with ASC 360 to reflect market conditions, including a market by market consideration of supply of new and resale homes for sale, 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 and certain factors described below. 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 three and nine months ended September 30, 2015 and 2014, our impairment assessments resulted in no impairment charges. Receivables Receivables includes amounts in transit or due from title companies for house closings; membership dues related to our amenity operations; and contracts and mortgage notes receivable from the sale of land. Property and Equipment, net Property and equipment, net are stated at cost and depreciation is computed by the straight-line method over the following estimated useful lives of the assets: land improvements 10 to 25 years ; buildings and improvements 8 to 39 years ; and machinery, equipment and fixtures 3 to 7 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, net includes certain amenities such as club facilities on properties owned by us. These amenities include expenditures for land acquisition, land development, construction, and direct and allocated costs, including 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 our housing communities, indicators of potential impairment are similar to those of our housing communities (described above), 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 amenities. For the three and nine months ended September 30, 2015 and 2014 , we did not identify indicators of impairments for property and equipment. Assets Held for Sale We classify assets held for sale in accordance with the criteria set forth in ASC 360. We continue to opportunistically sell non-core commercial and industrial assets, as well as scattered lot positions and land assets that are in excess of our needed supply in a given market. Under this plan, assets that meet the criteria above are classified as held for sale. During the nine months ended September 30, 2015 , we changed our plans to sell assets that were previously classified as held for sale, or the assets no longer met the held-for-sale criteria, resulting in a reclassification of $4.1 million of land positions to land and other inventories. There was no change in the carrying value in these assets due to this reclassification. During the three and nine months ended September 30, 2014 , we sold assets held for sale with a carrying value of $7.9 million and $19.9 million, respectively, for cash proceeds of $11.9 million and $27.1 million, respectively. Included in this was the sale of a multi-family property in Arizona to a related party for $13.9 million for a gain of $2.3 million during the nine months ended September 30, 2014. Investments in Partnerships and LLCs 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. 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 where we don't hold the controlling interest and we are not the primary beneficiary are accounted for under the equity method. 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. Factors considered in determining whether we are the primary beneficiary include risk and reward sharing, experience and financial condition of other partner(s), sufficiency of equity to conduct the operations of the entity, voting rights, involvement in decisions significantly impacting the entity's economic performance, level of economic disproportionality between us and the other partner(s) and contracts to purchase assets from VIEs. We have investments in unconsolidated entities, including joint ventures, with independent third parties. The equity method of accounting is used for unconsolidated entities over which we have significant influence. Under the equity method of accounting, we recognize our proportionate share of the earnings and losses of these entities. We evaluate our investments in unconsolidated entities for recoverability in accordance with ASC 323, Investments - Equity Method and Joint Ventures (“ASC 323”). 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 and comprehensive income (loss). Due to uncertainties in the estimation process and the significant volatility in demand for new housing, actual results could differ significantly from such estimates. During the three and nine months ended September 30, 2015 and 2014, our impairment assessments resulted in no impairment charges. 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 three and nine month periods ended September 30, 2015 and 2014. Revenues In accordance with ASC 360, revenues from the sales of housing units are recognized when the sales are closed and title passes to the purchasers. In addition, revenues from land sales are 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 are included in homebuilding revenue in the accompanying consolidated statements of operations and comprehensive income (loss). Warranty Costs Warranty reserves for houses 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 house. 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 accompanying consolidated balance sheets. During the three and nine months ended September 30, 2015 and 2014 , changes in the warranty reserve consisted of the following (in thousands): Three Months Nine Months 2015 2014 2015 2014 Accrued warranty reserve, beginning of period $1,767 $ 806 $ 1,528 $ 639 Reserve provided 1,818 (1) 467 2,954 (1) 933 Payments (1,168) (234 ) (2,065 ) (533 ) Accrued warranty reserve, end of period $2,417 $ 1,039 $ 2,417 $ 1,039 (1) This balance includes $0.7 million of warranty reserve established in connection with the Bonterra transaction. See Note 2 - Business Acquisitions for further information. Income Taxes Income taxes have been provided for using the liability method under ASC 740, Income Taxes (“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. We evaluate our deferred tax assets quarterly to determine if valuation allowances are required. ASC 740 requires that companies assess whether valuation allowances should be established based on the consideration of all available evidence using a “more likely than not” standard. We continue to analyze all available positive and negative evidence in determining the continuing need for a valuation allowance. This evaluation considers, among other factors, historical operating results, forecasts of future profitability, and the duration of statutory carryforward periods. One of the primary pieces of negative evidence we consider is the significant losses we have incurred in recent years, including being in a three-year cumulative pre-tax loss position at September 30, 2015, provided significant negative evidence supporting the need for a valuation allowance. However, we earned a profit before income taxes for the three months ended September 30, 2015 and have seen significant increases in community count, new orders, and backlog. If current business trends continue, including continued improvements in the homebuilding industry, and we continue to be profitable, we believe that there could be sufficient positive evidence to support reducing a significant portion of the valuation allowance in future periods. During the nine months ended September 30, 2015 , we recognized an increase of $1.0 million in the valuation allowance, primarily attributable to our year-to-date net loss. As of September 30, 2015 , our deferred tax asset valuation allowance was $130.8 million. 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 and comprehensive income (loss) as income tax expense. Share-Based Compensation The Amended and Restated 1997 Incentive and Capital Accumulation Plan (2011 Restatement), as amended ("the Incentive Plan") and the 2015 Incentive Compensation Plan (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 September 30 , 2015 , an aggregate of 590,483 shares of our common stock, subject to certain adjustments, were reserved for issuance under the Incentive Plan, relating to outstanding options and restricted stock units previously awarded and currently outstanding under the Incentive Plan. There were approximately 760,513 shares available for grant at September 30, 2015 under the 2015 Plan and 19,477 shares reserved for issuance relating to restricted stock units previously awarded and currently outstanding under the 2015 Plan. Earnings (Loss) Per Share Basic earnings (loss) per share is computed by dividing net income (loss) attributable to AV Homes stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) 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 computation of diluted earnings per share for the three months ended September 30, 2015 and 2014 did not assume the effect of employee stock options or the 7.50% Senior Convertible Notes or the 7.50% Senior Convertible Exchange Notes because the effects were antidilutive. The computation of diluted earnings (loss) per share for the nine months ended September 30, 2015 and 2014 did not assume the effect of outstanding restricted stock, restricted stock units, employee stock options, or the convertible notes because the effects were antidilutive. 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 three and nine months ended September 30, 2015 and 2014 (in thousands, except share data): Three Months Nine Months 2015 2014 2015 2014 Numerator: Basic and diluted net income (loss) $ 5,520 $ 678 $ (3,954 ) $ (3,537 ) Denominator: Basic weighted average shares outstanding 22,018,449 21,953,484 22,006,460 21,941,293 Diluted weighted average shares outstanding 22,166,873 22,071,236 22,006,460 21,941,293 Basic earnings (loss) per share $ 0.25 $ 0.03 $ (0.18 ) $ (0.16 ) Diluted earnings (loss) per share $ 0.25 $ 0.03 $ (0.18 ) $ (0.16 ) Comprehensive Income (Loss) Net income (loss) and comprehensive income (loss) are the same for the three and nine months ended September 30, 2015 and 2014 . Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers. The new standard was originally effective for reporting periods beginning after December 15, 2016 and early adoption was not permitted. On August 12, 2015, the FASB approved a one year delay of the effective date to reporting periods beginning after December 15, 2017, while permitting companies to voluntarily adopt the new standard as of the original effective date. The comprehensive new standard will supersede existing revenue recognition guidance and require revenue to be recognized when promised goods or services are transferred to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. Adoption of the new rules could affect the timing of revenue recognition for certain transactions. The guidance permits two implementation approaches, one requiring retrospective application of the new standard with restatement of prior years and one requiring prospective application of the new standard with disclosure of results under old standards. We are currently evaluating when to adopt the new standard, the impacts of adoption and the implementation approach to be used. On September 25, 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments, that eliminates the requirement to restate prior period financial statements for measurement period adjustments. This guidance requires that the cumulative impact of a measurement period adjustment (including the impact on prior periods) be recognized in the reporting period in which the adjustment is identified. This ASU is effective for interim and annual periods beginning after December 15, 2015, with early adoption permitted. We believe the adoption of ASU 2015-16 will not have a material effect on our consolidated financial statements.

Business Acquisition

Business Acquisition	9 Months Ended
	Sep. 30, 2015
Business Combinations [Abstract]
Business Acquisition	Business Acquisitions Bonterra Builders Acquisition On July 1, 2015, we acquired substantially all of the assets and certain liabilities of Bonterra Builders, LLC (“Bonterra”) for approximately $101.5 million , which remains subject to customary post-closing adjustments. Part of the aggregate consideration includes a $6.0 million estimated earn-out. The actual amount of the earn-out may be more or less than the $6.0 million target amount based on the performance of the Bonterra business through the end of 2016. A portion of the aggregate consideration equal to $0.8 million was held back by us at the closing as security for Bonterra's indemnification and other potential obligations under the purchase agreement. Bonterra 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 significantly enhances our position in a key growth market. The results of Bonterra's operations are included in our consolidated financial statements from the acquisition date of July 1, 2015. For the three months ended September 30, 2015, Bonterra's revenues and net income were $41.2 million and $3.8 million, respectively. The Bonterra acquisition was accounted for in accordance with ASC 805, Business Combinations ("ASC 805"). We recorded the acquired assets and liabilities at their estimated fair value. We determined 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 exceeded the fair value of the net assets acquired in this transaction, such excess was assigned to goodwill. We acquired substantially all of the assets of Bonterra, 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, including the liabilities and obligations relating to the acquired contracts, but excluding certain home warranty obligations relating to homes closed by Bonterra prior to the acquisition. The following table summarizes the calculation of the fair value of the total consideration transferred to Bonterra and the amounts of assets acquired and liabilities assumed as of the acquisition date (in thousands): Calculation of purchase price consideration Cash paid for Bonterra net assets $ 42,241 Contingent consideration (earn-out) 6,300 Debt repaid at closing 52,941 Total consideration $ 101,482 Assets acquired and liabilities assumed Assets Receivables and other current assets $ 574 Land and other inventories 91,631 Property, plant and equipment 14 Trade name 1,400 Non-compete intangible asset 600 Goodwill 14,947 Total assets acquired 109,166 Liabilities Accounts payable 5,071 Accrued and other liabilities 763 Customer deposits 1,850 Total liabilities assumed 7,684 Total net assets acquired $ 101,482 Fair value Cash and equivalents, receivables, other current assets, property, plant, and equipment, accounts payable, accrued and other liabilities and customer deposits were generally stated at historical carrying values given the short-term nature of these assets and liabilities. Liabilities were recorded at historical carrying values in accordance with ASC 805. We determined the fair value of inventory on a lot-by-lot basis primarily using a combination of market comparable land transactions, where available, and discounted cash flow models, and independent appraisals were also utilized in certain instances. These estimated cash flows are significantly impacted by 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 for acquired intangible assets were determined based on valuations performed by independent valuation specialists. 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 $0.1 million for the three months ended September 30, 2015, which is included in the consolidated statements of operations and comprehensive income (loss) within homebuilding expense. We have completed our preliminary analysis of our business combination accounting as of September 30, 2015. We have not completed our final review of inventory, contingent consideration and certain other assets and liabilities. Final determinations of the values of assets acquired and liabilities assumed may result in adjustments to the values presented above and a corresponding adjustment to goodwill. As such, we have not completed the assignment of goodwill to reporting units at this time. Transaction and integration costs Transaction and integration costs directly related to the Bonterra acquisition, including legal and accounting fees totaled $0.7 million and $0.9 million for the three and nine months ended September 30, 2015, respectively, the majority of which are included in the consolidated statements of operations and comprehensive income (loss) within corporate general and administrative expenses. Such costs were expensed as incurred in accordance with ASC 805. Goodwill As of the acquisition date, goodwill included the expected economic value attributable to Bonterra’s assembled workforce. The acquisition provided increased scale and presence in an existing market with immediate revenue opportunities through an established backlog. We expect $8.6 million of goodwill to be deductible for tax purposes as of September 30, 2015. Supplemental pro forma information The following represents pro forma operating results as if Bonterra had been included in the Company’s consolidated statements of operations and comprehensive income (loss) as of the beginning of the fiscal year presented (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2014 2015 2014 Revenue $ 114,895 $ 362,813 $ 266,524 Net income (loss) 2,448 772 (2,458 ) Income (loss) per common share - basic $ 0.11 $ 0.04 $ (0.11 ) Income (loss) per common share - diluted $ 0.11 $ 0.04 $ (0.11 ) The supplemental pro forma operating results have been determined after adjusting the operating results of Bonterra 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, 2014. These results may not be indicative of future operating results. Royal Oak Homes Acquisition On March 13, 2014, we acquired substantially all of the assets and certain liabilities of Royal Oak Homes, LLC, a residential homebuilder based in Orlando, Florida (“Royal Oak”). In connection with the transaction, we also acquired certain land positions from an affiliate of Royal Oak. The transaction expanded our presence in Central Florida and the Poinciana market. With over 2,500 primary residential lots owned or controlled at the time of acquisition, Royal Oak enhanced our position in a key growth market. The total purchase price paid under the acquisition agreements was approximately $65.0 million in cash, which includes a potential $3.0 million payment related to an earn-out covering the financial results for 2014 and 2015. 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 Royal Oak business through the end of 2015. We will not pay any earn-out amounts unless the Royal Oak business achieves at least 50% of the target amount of financial performance. The current estimate of the total payment for the earn-out is $2.1 million, of which $1.2 million has been paid as of September 30, 2015. The results of Royal Oak's operations are included in our consolidated financial statements from the acquisition date of March 13, 2014. The Royal Oak acquisition was accounted for in accordance with ASC 805, Business Combinations ("ASC 805"). We recorded the acquired assets and liabilities at their estimated fair value. We determined 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 exceeded the fair value of the net assets acquired in this transaction, such excess was assigned to goodwill. We acquired substantially all of the assets of Royal Oak, 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 Royal Oak, including the liabilities and obligations relating to the acquired contracts but excluding certain home warranty obligations relating to homes closed by Royal Oak prior to the acquisition. The following table summarizes the calculation of the fair value of the total consideration transferred to Royal Oak and its affiliate and the amounts of assets acquired and liabilities assumed as of the acquisition date (in thousands): Calculation of purchase price consideration Cash paid for Royal Oak net assets $ 25,848 Cash paid for bulk land purchase 28,009 Contingent consideration (earn-out) 2,500 Debt repaid at closing 8,827 Total consideration $ 65,184 Assets acquired and liabilities assumed Assets Prepaid and other current assets $ 582 Land and other inventories 60,217 Property, plant and equipment 366 Trade name 614 Goodwill 6,071 Total assets acquired 67,850 Liabilities Accounts payable 1,343 Accrued and other liabilities 469 Customer deposits 854 Total liabilities assumed 2,666 Total net assets acquired $ 65,184 Fair value Cash and equivalents, other assets, accounts payable, and accrued and other liabilities were generally stated at historical carrying values given the short-term nature of these assets and liabilities. Liabilities were recorded at historical carrying values in accordance with ASC 805. We determined the fair value of inventory on a lot-by-lot basis primarily using a combination of market comparable land transactions, where available, and discounted cash flow models, and independent appraisals were also utilized in certain instances. These estimated cash flows are significantly impacted by 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 for acquired intangible assets were determined based on valuations performed by independent valuation specialists. The $0.6 million of acquired intangible assets relates to trade names that are being amortized over three years . Amortization expense for these assets totaled $0.1 million and $0.2 million for the three and nine months ended September 30, 2015 , respectively, which is included in the consolidated statements of operations and comprehensive income (loss) within homebuilding expense. We completed our business combination accounting as of the end of the measurement period, which did not extend beyond one year from the acquisition date. Transaction and integration costs Transaction and integration costs directly related to the Royal Oak acquisition, including legal, accounting and broker fees, totaled $0.0 million and $1.1 million for the three and nine months ended September 30, 2014, respectively, the majority of which are included in the consolidated statements of operations and comprehensive income (loss) within corporate general and administrative expenses. Such costs were expensed as incurred in accordance with ASC 805. Goodwill As of the acquisition date, goodwill included the expected economic value attributable to Royal Oak’s assembled workforce. The acquisition provided increased scale and presence in an existing market with immediate revenue opportunities through an established backlog. We expect $4.0 million of goodwill to be deductible for tax purposes as of September 30, 2015. Supplemental pro forma information The following represents pro forma operating results as if Royal Oak had been included in the Company’s consolidated statements of operations and comprehensive income (loss) as of the beginning of the fiscal year presented (in thousands, except per share data): Nine Months Ended September 30, 2014 Revenue $ 195,089 Net loss (1,418 ) Loss per common share - basic and diluted $ (0.06 ) The supplemental pro forma operating results have been determined after adjusting the operating results of Royal Oak to reflect additional amortization that would have been recorded assuming the fair value adjustments to intangible assets had been applied as of January 1, 2014. Certain other adjustments, including those related to conforming accounting policies and adjusting acquired inventory to fair value, have not been reflected in the supplemental pro forma operating results due to the impracticability of estimating such impacts. These results may not be indicative of future operating results.

Land and Other Inventories

Land and Other Inventories	9 Months Ended
	Sep. 30, 2015
Land and Other Inventories [Abstract]
Land and Other Inventories	Land and Other Inventories Land and other inventories consist of the following (in thousands): September 30, 2015 December 31, 2014 Land held for future development $ 21,392 $ 20,844 Land developed and in process of development 350,712 269,764 Homes completed or under construction 247,777 92,576 $ 619,881 $ 383,184 We capitalize interest to inventories during the period of development in accordance with ASC 835, Interest ("ASC 835"). Homebuilding interest capitalized to cost of inventory 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 the three and nine months ended September 30, 2015 and 2014 (in thousands): Three Months Nine Months 2015 2014 2015 2014 Interest incurred $ 7,501 $ 6,716 $ 21,002 $ 11,403 Interest capitalized (5,661 ) (3,875 ) (13,499 ) (8,451 ) Interest expense $ 1,840 $ 2,841 $ 7,503 $ 2,952

Investments in Unconsolidated E

Investments in Unconsolidated Entities	9 Months Ended
	Sep. 30, 2015
Variable Interest Entities [Abstract]
Investments in Partnerships and LLCs	Investments in Unconsolidated Entities We participate in entities with equity interests ranging from 20% to 58% for the purpose of acquiring and/or developing land. 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. 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 $0.0 million and $2.9 million to our unconsolidated entities during the three and nine months ended September 30, 2015, respectively. We made contributions totaling $1.7 million and $ 2.0 million to our unconsolidated entities during the three and nine months ended September 30, 2014. The balance of our investments in unconsolidated entities was $1.2 million and $18.0 million at September 30, 2015 and December 31, 2014 , respectively. In May 2012, we entered into an agreement with JEN Arizona 4, LLC to form a limited liability company, EM 646, LLC (“EM 646”). We hold a 58% interest in the venture, which was organized for the purpose of acquiring, entitling, developing, and distributing specific sections of real property located in Mesa, Arizona. The property was originally acquired in November 2012 and in April 2015 the final distribution of developed land to the partners was completed at cost. For the nine months ended September 30, 2015 and 2014 , EM 646 distributed $19.9 million and $7.1 million, respectively, of developed land to AV Homes. During 2014, we were no longer considered the primary beneficiary of EM 646 due to a discontinuation of a related party affiliation, resulting in shared power between the remaining members. As we no longer have the power on a stand-alone basis to direct the activities of the LLC that most significantly impact the LLC’s economic performance, we deconsolidated this LLC, in accordance with ASC 810, Consolidation and ASC 360. As this transaction involves the deconsolidation of insubstance real estate, we have accounted for the deconsolidation under ASC 360-20, Real Estate Sales . In determining whether a gain should be recognized as part of this transaction, ASC 360-20-40-10, Real Estate Sales requires that a sufficient amount of cash be received in order to recognize a gain on transactions within the scope of ASC 360. As we did not receive any proceeds from this transaction and as there was not a culmination of an earning process, we recognized our investment in the venture at our carry over cost basis and, therefore, no gain or loss was recognized. We will reflect future earnings, contributions and distributions on an equity method basis. At September 30, 2015 and December 31, 2014 our consolidated balance sheets included amounts related to investments in the unconsolidated EM 646 entity of $0.0 million and $15.6 million , respectively. We and our equity partners make capital contributions to the entity and receive distributions on a pro rata basis. The obligation to make such capital contributions is governed by the entity’s operating agreement. As of September 30, 2015 , this entity was financed by partner equity and does not have third-party debt. In addition, we have not provided any guarantees to the entity or our equity partner. The assets of our investee can only be used to settle obligations of the investee.

Debt

Debt	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Debt	Debt Our debt is summarized as follows (in thousands): September 30, 2015 December 31, 2014 7.50% Senior Convertible Notes due 2016 46,793 55,481 7.50% Senior Exchange Convertible Notes due 2016 — 44,475 8.50% Senior Notes due 2019 200,000 200,000 6.00% Senior Convertible Notes due 2020, net of discount 79,926 — Senior Secured Credit Facility 30,000 — Total $ 356,719 $ 299,956 We made interest payments of $2.0 million and $24.0 million for the three and nine months ended September 30, 2015, respectively. We made interest payments of $0.1 million and $7.6 million for the three and nine months ended September 30, 2014, respectively. We were in compliance with all debt covenants as of September 30, 2015 and December 31, 2014 . 7.50% Senior Convertible Notes and 7.50% Senior Exchange Convertible Notes due 2016 On February 4, 2011, we completed an underwritten public offering for $100.0 million aggregate principal amount of our 7.50% Senior Convertible Notes due 2016 (the “ 7.50% Notes”). The 7.50% Notes mature on February 15, 2016 unless earlier converted, redeemed or repurchased. The 7.50% Notes are governed by the Indenture and the First Supplemental Indenture, each dated February 4, 2011, between us and the trustee named therein. Interest on the 7.50% Notes is payable semi-annually in arrears in cash on February 15 and August 15 of each year. In July 2012, we entered into exchange agreements under which we retired $44.5 million in aggregate principal amount of our 7.50% Notes, in exchange for the issuance of $44.5 million in aggregate principal of new 7.50% Senior Exchange Convertible Notes due 2016 (“ 7.50% Exchange Notes”). The 7.50% Exchange Notes mature on February 15, 2016 unless earlier converted, redeemed or repurchased. The 7.50% Exchange Notes are governed by the Indenture dated February 4, 2011 and the Second Supplemental Indenture dated July 25, 2012 between us and the trustee named therein. Interest on the 7.50% Exchange Notes was payable semi-annually in arrears in cash on February 15 and August 15 of each year, commencing February 15, 2013. In connection with the issuance of the 6.00% Notes (defined below), $20.5 million of 7.50% Exchange Notes and $8.7 million of 7.50% Notes were repurchased on June 23, 2015. On July 20, 2015, the remaining 7.50% Exchange Notes were redeemed, pursuant to our option to redeem such notes at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest. 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 mature on July 1, 2019 unless earlier converted, redeemed or repurchased. Interest on the 8.50% Notes is 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 will be 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. 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 (the “Note Purchase Agreements”) entered into on June 17, 2015 by us and certain qualified institutional buyers. TPG Aviator, L.P. (“TPG”), which owns approximately 41% of our outstanding common stock, 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. 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. Senior Secured Credit Facility On April 7, 2014, we entered into a $65.0 million senior secured credit facility with JPMorgan Chase Bank, N.A., as agent, a lender and a letter of credit issuer (the "Senior Secured Credit Facility"). The other lenders and letter of credit issuers include Royal Bank of Canada and Credit Suisse AG. Later in 2014, we increased the senior secured credit facility by $40.0 million with the addition of Citibank, N.A., and Deutsche Bank, A.G., as additional lenders. The Senior Secured Credit Facility includes revolving credit and letter of credit facilities in an aggregate principal amount of up to $105.0 million, with an “accordion” feature that allows us, with the consent of the lenders, to increase the aggregate amount to $175.0 million. The Senior Secured Credit Facility also includes a swing line loan facility in an aggregate principal amount of up to $30.0 million. At September 30, 2015 , we had sufficient qualified assets in the borrowing base to cover the full $105.0 million capacity and had $30.0 million borrowings outstanding.

Estimated Development Liability

Estimated Development Liability	9 Months Ended
	Sep. 30, 2015
Estimated Development Liability for Sold Land [Abstract]
Estimated Development Liability for Sold Land	Estimated Development Liability The estimated development liability consists primarily of utilities improvements in Rio Rico and Poinciana 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 costs. In addition, we obtain third-party engineer evaluations on an annual basis and adjust this liability to reflect changes in the estimated costs. Cash expenditures associated with these obligations were $0.1 million and $0.2 million during the three months ended September 30, 2015 and 2014 , respectively, and $0.2 million and $0.2 million during the nine months ended September 30, 2015 and 2014, respectively. 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 $ 32.7 million and $33.0 million at September 30, 2015 and December 31, 2014, respectively.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies We are involved in litigation from time to time, primarily arising in the normal course of our business. Liabilities or costs arising out of these and other currently pending litigation is not expected to have a material adverse effect on our business, consolidated financial position, results of operations or cash flows. Performance bonds, issued by third-party entities, are used primarily to guarantee our performance to construct improvements in our various communities. As of September 30 , 2015 , we had outstanding performance bonds of approximately $30.5 million. The amount of outstanding performance bonds could fluctuate depending on the level of development activity. We do not believe that it is likely any of these outstanding performance bonds will be drawn upon.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Segments	Segment Information Prior to the first quarter of 2015, our operations included the following reportable segments: (i) active adult communities; (ii) primary residential communities; and (iii) land sales. Based on the evolving nature of our business and recent operational and reporting changes, we reevaluated the identification of our reportable segments during the first quarter of 2015. As a result, beginning with the first quarter of 2015, our reportable segments are as follows: Florida, Arizona and the Carolinas. 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 three and nine months ended September 30, 2015 and 2014 , which have been recast for all periods presented to reflect the change described above (in thousands): Three Months Nine Months 2015 2014 2015 2014 Operating income (loss): Florida Revenues Homebuilding $ 86,892 $ 53,669 $ 185,484 $ 114,600 Amenity and other 2,691 2,572 8,195 7,630 Land sales 6 12,942 3,470 15,300 Total Revenues 89,589 69,183 197,149 137,530 Expenses Homebuilding 68,409 43,891 149,033 93,118 Homebuilding selling, general and administrative 11,419 6,613 26,172 15,923 Amenity and other 2,199 2,537 6,938 7,888 Land sales 2 8,688 385 9,388 Segment operating income 7,560 7,454 14,621 11,213 Arizona Revenues Homebuilding $ 20,012 $ 17,458 $ 45,196 $ 30,555 Land sales — — — 13,868 Total Revenues 20,012 17,458 45,196 44,423 Expenses Homebuilding 16,497 14,660 38,704 25,640 Homebuilding selling, general and administrative 3,009 2,209 7,846 5,150 Amenity and other 22 66 96 327 Land sales — (16 ) — 11,522 Segment operating income (loss) 484 539 (1,450 ) 1,784 Carolinas Revenues Homebuilding $ 44,226 $ — $ 49,701 $ — Total Revenues 44,226 — 49,701 — Expenses Homebuilding 36,182 — 41,174 — Homebuilding selling, general and administrative 4,944 538 6,718 1,237 Segment operating income (loss) 3,100 (538 ) 1,809 (1,237 ) Operating income $ 11,144 $ 7,455 $ 14,980 $ 11,760 Unallocated income (expenses): Interest income and other 41 85 165 258 Equity in earnings (loss) in unconsolidated entities (5 ) (5 ) 160 (10 ) Corporate general and administrative expenses (3,820 ) (4,016 ) (11,756 ) (12,264 ) Interest expense (1,840 ) (2,841 ) (7,503 ) (2,952 ) Income (loss) before income taxes 5,520 678 (3,954 ) (3,208 ) Income tax expense (benefit) — — — — Net income attributable to non-controlling interests — — — 329 Net income (loss) attributable to AV Homes $ 5,520 $ 678 $ (3,954 ) $ (3,537 ) September 30, December 31, 2015 2014 Segment assets: Florida $ 348,503 $ 278,091 Arizona 179,004 145,380 Carolinas 166,383 28,475 Unallocated assets 62,250 216,940 Total assets $ 756,140 $ 668,886

Fair Value Disclosures

Fair Value Disclosures	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value Disclosures	Fair Value Disclosures ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) 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 value of cash and cash equivalents, restricted cash, receivables, and accounts payable approximates the fair value due to their short-term maturities. The majority of our non-financial instruments, which include land and other inventories and property and equipment, are not required to be carried at fair value on a recurring basis. However, if certain triggering events occur such that a non-financial instrument is required to be evaluated for impairment, a resulting asset impairment would require that the non-financial instrument be recorded at the lower of historical cost or its fair value. For assets held for sale (vacant land parcels available for sale), we perform a quarterly impairment test in which the asset is reviewed for impairment by comparing the fair value (estimated sales price) less cost to sell the asset to its carrying value. If such fair value less cost to sell is less than the asset’s carrying value, the carrying value is written down to its estimated fair value less cost to sell. 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 stage 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 and certain factors described below. 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. The carrying amounts and fair values of our financial liabilities at September 30, 2015 and December 31, 2014 are as follows (in thousands): September 30, 2015 December 31, 2014 Carrying Amount Fair Value Carrying Amount Fair Value Notes Payable: 7.50% Notes and 7.50% Exchange Notes $ 46,793 $ 45,740 $ 99,956 $ 99,040 8.50% Senior Notes $ 200,000 $ 199,000 $ 200,000 $ 193,000 6.00% Notes $ 79,926 $ 77,608 $ — $ — Senior Secured Credit Facility $ 30,000 $ 30,000 $ — $ — Contingent consideration (earn-out) $ 7,200 $ 7,200 $ 2,404 $ 2,404 In estimating the fair value of financial liabilities, we used the following methods and assumptions: 8.50% Senior Notes, 7.50% Notes, 7.50% Exchange Notes, and 6.00% Notes: At September 30, 2015 and December 31, 2014 , the fair value of the 7.50% Notes, 7.50% Exchange Notes, the 8.50% Notes and the 6.00% Notes is estimated, based on quoted or estimated market prices. These fall within Level 2 of the fair value hierarchy. Contingent consideration ("earn-out"): This was first recognized as part of the purchase price paid for the Royal Oak and Bonterra Builders acquisitions in 2014 and 2015, respectively, and falls within Level 3 of the fair value hierarchy.

Basis of Financial Statement 14

Basis of Financial Statement Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
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. The interim consolidated financial statements have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Accordingly, they do not include all information and footnotes required by U.S generally accepted accounting principles ("GAAP") for complete financial statements. These statements reflect all normal and recurring adjustments which, in the opinion of management, are necessary to present fairly the financial position, results of operations and cash flows of AV Homes at September 30, 2015 and for all periods presented. These statements should be read in conjunction with our consolidated financial statements and notes thereto included in AV Homes' Annual Report on Form 10-K for the year ended December 31, 2014. All significant intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of our consolidated financial statements in conformity with 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.
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 September 30, 2015 , 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 approximates their fair values. Our cash items that are restricted as to withdrawal or usage include deposits of $26.3 million and $16.4 million as of September 30 , 2015 and December 31, 2014 , respectively, associated with an interest reserve to comply with the terms of our Senior Secured Credit Facility
Land and Other Inventories	Land and Other Inventories Land and other inventories include expenditures for land acquisition, land development, home construction, 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 Accounting Standards Codification ("ASC") 360, Property, Plant and Equipment (“ASC 360”). We evaluate our land and other inventories for impairment on a quarterly basis in accordance with ASC 360 to reflect market conditions, including a market by market consideration of supply of new and resale homes for sale, 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 and certain factors described below. 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 three and nine months ended September 30, 2015 and 2014, our impairment assessments resulted in no impairment charges.
Receivables, net	Receivables Receivables includes amounts in transit or due from title companies for house closings; membership dues related to our amenity operations; and contracts and mortgage notes receivable from the sale of land.
Property and Equipment	Property and Equipment, net Property and equipment, net are stated at cost and depreciation is computed by the straight-line method over the following estimated useful lives of the assets: land improvements 10 to 25 years ; buildings and improvements 8 to 39 years ; and machinery, equipment and fixtures 3 to 7 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, net includes certain amenities such as club facilities on properties owned by us. These amenities include expenditures for land acquisition, land development, construction, and direct and allocated costs, including 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 our housing communities, indicators of potential impairment are similar to those of our housing communities (described above), 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 amenities. For the three and nine months ended September 30, 2015 and 2014 , we did not identify indicators of impairments for property and equipment.
Assets Held for Sale	Assets Held for Sale We classify assets held for sale in accordance with the criteria set forth in ASC 360. We continue to opportunistically sell non-core commercial and industrial assets, as well as scattered lot positions and land assets that are in excess of our needed supply in a given market. Under this plan, assets that meet the criteria above are classified as held for sale. During the nine months ended September 30, 2015 , we changed our plans to sell assets that were previously classified as held for sale, or the assets no longer met the held-for-sale criteria, resulting in a reclassification of $4.1 million of land positions to land and other inventories. There was no change in the carrying value in these assets due to this reclassification. During the three and nine months ended September 30, 2014 , we sold assets held for sale with a carrying value of $7.9 million and $19.9 million, respectively, for cash proceeds of $11.9 million and $27.1 million, respectively. Included in this was the sale of a multi-family property in Arizona to a related party for $13.9 million for a gain of $2.3 million during the nine months ended September 30, 2014.
Investments in Partnerships and LLCs	Investments in Partnerships and LLCs 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. 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 where we don't hold the controlling interest and we are not the primary beneficiary are accounted for under the equity method. 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. Factors considered in determining whether we are the primary beneficiary include risk and reward sharing, experience and financial condition of other partner(s), sufficiency of equity to conduct the operations of the entity, voting rights, involvement in decisions significantly impacting the entity's economic performance, level of economic disproportionality between us and the other partner(s) and contracts to purchase assets from VIEs. We have investments in unconsolidated entities, including joint ventures, with independent third parties. The equity method of accounting is used for unconsolidated entities over which we have significant influence. Under the equity method of accounting, we recognize our proportionate share of the earnings and losses of these entities. We evaluate our investments in unconsolidated entities for recoverability in accordance with ASC 323, Investments - Equity Method and Joint Ventures (“ASC 323”). 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 and comprehensive income (loss). Due to uncertainties in the estimation process and the significant volatility in demand for new housing, actual results could differ significantly from such estimates. During the three and nine months ended September 30, 2015 and 2014, our impairment assessments resulted in no impairment charges.
Purchase Accounting
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 three and nine month periods ended September 30, 2015 and 2014.
Revenues	Revenues In accordance with ASC 360, revenues from the sales of housing units are recognized when the sales are closed and title passes to the purchasers. In addition, revenues from land sales are 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 are included in homebuilding revenue in the accompanying consolidated statements of operations and comprehensive income (loss).
Warranty Costs	Warranty Costs Warranty reserves for houses 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 house. 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 accompanying consolidated balance sheets.
Income Taxes	Income Taxes Income taxes have been provided for using the liability method under ASC 740, Income Taxes (“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. We evaluate our deferred tax assets quarterly to determine if valuation allowances are required. ASC 740 requires that companies assess whether valuation allowances should be established based on the consideration of all available evidence using a “more likely than not” standard. We continue to analyze all available positive and negative evidence in determining the continuing need for a valuation allowance. This evaluation considers, among other factors, historical operating results, forecasts of future profitability, and the duration of statutory carryforward periods. One of the primary pieces of negative evidence we consider is the significant losses we have incurred in recent years, including being in a three-year cumulative pre-tax loss position at September 30, 2015, provided significant negative evidence supporting the need for a valuation allowance. However, we earned a profit before income taxes for the three months ended September 30, 2015 and have seen significant increases in community count, new orders, and backlog. If current business trends continue, including continued improvements in the homebuilding industry, and we continue to be profitable, we believe that there could be sufficient positive evidence to support reducing a significant portion of the valuation allowance in future periods. During the nine months ended September 30, 2015 , we recognized an increase of $1.0 million in the valuation allowance, primarily attributable to our year-to-date net loss. As of September 30, 2015 , our deferred tax asset valuation allowance was $130.8 million. 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 and comprehensive income (loss) as income tax expense.
Share-based Compensation	Share-Based Compensation The Amended and Restated 1997 Incentive and Capital Accumulation Plan (2011 Restatement), as amended ("the Incentive Plan") and the 2015 Incentive Compensation Plan (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 September 30 , 2015 , an aggregate of 590,483 shares of our common stock, subject to certain adjustments, were reserved for issuance under the Incentive Plan, relating to outstanding options and restricted stock units previously awarded and currently outstanding under the Incentive Plan. There were approximately 760,513 shares available for grant at September 30, 2015 under the 2015 Plan and 19,477 shares reserved for issuance relating to restricted stock units previously awarded and currently outstanding under the 2015 Plan.
Earnings (Loss) Per Share	Earnings (Loss) Per Share Basic earnings (loss) per share is computed by dividing net income (loss) attributable to AV Homes stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) 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 computation of diluted earnings per share for the three months ended September 30, 2015 and 2014 did not assume the effect of employee stock options or the 7.50% Senior Convertible Notes or the 7.50% Senior Convertible Exchange Notes because the effects were antidilutive. The computation of diluted earnings (loss) per share for the nine months ended September 30, 2015 and 2014 did not assume the effect of outstanding restricted stock, restricted stock units, employee stock options, or the convertible notes because the effects were antidilutive.
Comprehensive Loss	Comprehensive Income (Loss) Net income (loss) and comprehensive income (loss) are the same for the three and nine months ended September 30, 2015 and 2014 .

Basis of Financial Statement 15

Basis of Financial Statement Presentation and Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Changes in warranty reserve	During the three and nine months ended September 30, 2015 and 2014 , changes in the warranty reserve consisted of the following (in thousands): Three Months Nine Months 2015 2014 2015 2014 Accrued warranty reserve, beginning of period $1,767 $ 806 $ 1,528 $ 639 Reserve provided 1,818 (1) 467 2,954 (1) 933 Payments (1,168) (234 ) (2,065 ) (533 ) Accrued warranty reserve, end of period $2,417 $ 1,039 $ 2,417 $ 1,039 (1) This balance includes $0.7 million of warranty reserve established in connection with the Bonterra transaction. See Note 2 - Business Acquisitions for further information.
Reconciliation of net loss and weighted averages shares outstanding for the calculation of basic and diluted loss 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 three and nine months ended September 30, 2015 and 2014 (in thousands, except share data): Three Months Nine Months 2015 2014 2015 2014 Numerator: Basic and diluted net income (loss) $ 5,520 $ 678 $ (3,954 ) $ (3,537 ) Denominator: Basic weighted average shares outstanding 22,018,449 21,953,484 22,006,460 21,941,293 Diluted weighted average shares outstanding 22,166,873 22,071,236 22,006,460 21,941,293 Basic earnings (loss) per share $ 0.25 $ 0.03 $ (0.18 ) $ (0.16 ) Diluted earnings (loss) per share $ 0.25 $ 0.03 $ (0.18 ) $ (0.16 )

Business Acquisition (Tables)

Business Acquisition (Tables)	9 Months Ended
	Sep. 30, 2015
Business Combinations [Abstract]
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 Royal Oak and its affiliate and the amounts of assets acquired and liabilities assumed as of the acquisition date (in thousands): Calculation of purchase price consideration Cash paid for Royal Oak net assets $ 25,848 Cash paid for bulk land purchase 28,009 Contingent consideration (earn-out) 2,500 Debt repaid at closing 8,827 Total consideration $ 65,184 Assets acquired and liabilities assumed Assets Prepaid and other current assets $ 582 Land and other inventories 60,217 Property, plant and equipment 366 Trade name 614 Goodwill 6,071 Total assets acquired 67,850 Liabilities Accounts payable 1,343 Accrued and other liabilities 469 Customer deposits 854 Total liabilities assumed 2,666 Total net assets acquired $ 65,184 The following table summarizes the calculation of the fair value of the total consideration transferred to Bonterra and the amounts of assets acquired and liabilities assumed as of the acquisition date (in thousands): Calculation of purchase price consideration Cash paid for Bonterra net assets $ 42,241 Contingent consideration (earn-out) 6,300 Debt repaid at closing 52,941 Total consideration $ 101,482 Assets acquired and liabilities assumed Assets Receivables and other current assets $ 574 Land and other inventories 91,631 Property, plant and equipment 14 Trade name 1,400 Non-compete intangible asset 600 Goodwill 14,947 Total assets acquired 109,166 Liabilities Accounts payable 5,071 Accrued and other liabilities 763 Customer deposits 1,850 Total liabilities assumed 7,684 Total net assets acquired $ 101,482
Pro Forma Operating Results	The following represents pro forma operating results as if Bonterra had been included in the Company’s consolidated statements of operations and comprehensive income (loss) as of the beginning of the fiscal year presented (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2014 2015 2014 Revenue $ 114,895 $ 362,813 $ 266,524 Net income (loss) 2,448 772 (2,458 ) Income (loss) per common share - basic $ 0.11 $ 0.04 $ (0.11 ) Income (loss) per common share - diluted $ 0.11 $ 0.04 $ (0.11 ) The following represents pro forma operating results as if Royal Oak had been included in the Company’s consolidated statements of operations and comprehensive income (loss) as of the beginning of the fiscal year presented (in thousands, except per share data): Nine Months Ended September 30, 2014 Revenue $ 195,089 Net loss (1,418 ) Loss per common share - basic and diluted $ (0.06 )

Land and Other Inventories (Tab

Land and Other Inventories (Tables)	9 Months Ended
	Sep. 30, 2015
Land and Other Inventories [Abstract]
Land and Other Inventories	Land and other inventories consist of the following (in thousands): September 30, 2015 December 31, 2014 Land held for future development $ 21,392 $ 20,844 Land developed and in process of development 350,712 269,764 Homes completed or under construction 247,777 92,576 $ 619,881 $ 383,184
Interest incurred, capitialized and expensed	The following table represents interest incurred, interest capitalized, and interest expense for the three and nine months ended September 30, 2015 and 2014 (in thousands): Three Months Nine Months 2015 2014 2015 2014 Interest incurred $ 7,501 $ 6,716 $ 21,002 $ 11,403 Interest capitalized (5,661 ) (3,875 ) (13,499 ) (8,451 ) Interest expense $ 1,840 $ 2,841 $ 7,503 $ 2,952

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Schedule of Notes Payable	Our debt is summarized as follows (in thousands): September 30, 2015 December 31, 2014 7.50% Senior Convertible Notes due 2016 46,793 55,481 7.50% Senior Exchange Convertible Notes due 2016 — 44,475 8.50% Senior Notes due 2019 200,000 200,000 6.00% Senior Convertible Notes due 2020, net of discount 79,926 — Senior Secured Credit Facility 30,000 — Total $ 356,719 $ 299,956

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Reportable Segment Information	The following table summarizes our information for reportable segments for the three and nine months ended September 30, 2015 and 2014 , which have been recast for all periods presented to reflect the change described above (in thousands): Three Months Nine Months 2015 2014 2015 2014 Operating income (loss): Florida Revenues Homebuilding $ 86,892 $ 53,669 $ 185,484 $ 114,600 Amenity and other 2,691 2,572 8,195 7,630 Land sales 6 12,942 3,470 15,300 Total Revenues 89,589 69,183 197,149 137,530 Expenses Homebuilding 68,409 43,891 149,033 93,118 Homebuilding selling, general and administrative 11,419 6,613 26,172 15,923 Amenity and other 2,199 2,537 6,938 7,888 Land sales 2 8,688 385 9,388 Segment operating income 7,560 7,454 14,621 11,213 Arizona Revenues Homebuilding $ 20,012 $ 17,458 $ 45,196 $ 30,555 Land sales — — — 13,868 Total Revenues 20,012 17,458 45,196 44,423 Expenses Homebuilding 16,497 14,660 38,704 25,640 Homebuilding selling, general and administrative 3,009 2,209 7,846 5,150 Amenity and other 22 66 96 327 Land sales — (16 ) — 11,522 Segment operating income (loss) 484 539 (1,450 ) 1,784 Carolinas Revenues Homebuilding $ 44,226 $ — $ 49,701 $ — Total Revenues 44,226 — 49,701 — Expenses Homebuilding 36,182 — 41,174 — Homebuilding selling, general and administrative 4,944 538 6,718 1,237 Segment operating income (loss) 3,100 (538 ) 1,809 (1,237 ) Operating income $ 11,144 $ 7,455 $ 14,980 $ 11,760 Unallocated income (expenses): Interest income and other 41 85 165 258 Equity in earnings (loss) in unconsolidated entities (5 ) (5 ) 160 (10 ) Corporate general and administrative expenses (3,820 ) (4,016 ) (11,756 ) (12,264 ) Interest expense (1,840 ) (2,841 ) (7,503 ) (2,952 ) Income (loss) before income taxes 5,520 678 (3,954 ) (3,208 ) Income tax expense (benefit) — — — — Net income attributable to non-controlling interests — — — 329 Net income (loss) attributable to AV Homes $ 5,520 $ 678 $ (3,954 ) $ (3,537 ) September 30, December 31, 2015 2014 Segment assets: Florida $ 348,503 $ 278,091 Arizona 179,004 145,380 Carolinas 166,383 28,475 Unallocated assets 62,250 216,940 Total assets $ 756,140 $ 668,886

Fair Value Disclosures (Tables)

Fair Value Disclosures (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Fair value, by Balance Sheet Grouping	The carrying amounts and fair values of our financial liabilities at September 30, 2015 and December 31, 2014 are as follows (in thousands): September 30, 2015 December 31, 2014 Carrying Amount Fair Value Carrying Amount Fair Value Notes Payable: 7.50% Notes and 7.50% Exchange Notes $ 46,793 $ 45,740 $ 99,956 $ 99,040 8.50% Senior Notes $ 200,000 $ 199,000 $ 200,000 $ 193,000 6.00% Notes $ 79,926 $ 77,608 $ — $ — Senior Secured Credit Facility $ 30,000 $ 30,000 $ — $ — Contingent consideration (earn-out) $ 7,200 $ 7,200 $ 2,404 $ 2,404

Basis of Financial Statement 21

Basis of Financial Statement Presentation and Summary of Significant Accounting Policies - Part One (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Class of Stock [Line Items]
Assets held for sale	$ 0		$ 0		$ 4,051,000
Asset impairment charges	0	$ 0	0	$ 0
Restricted cash	26,273,000		$ 26,273,000		$ 16,447,000
Land Improvements [Member] | Minimum [Member]
Class of Stock [Line Items]
Estimated useful lives			10 years
Land Improvements [Member] | Maximum [Member]
Class of Stock [Line Items]
Estimated useful lives			25 years
Building and Improvements [Member] | Minimum [Member]
Class of Stock [Line Items]
Estimated useful lives			8 years
Building and Improvements [Member] | Maximum [Member]
Class of Stock [Line Items]
Estimated useful lives			39 years
Machinery, Equipment and Fixtures [Member] | Minimum [Member]
Class of Stock [Line Items]
Estimated useful lives			3 years
Machinery, Equipment and Fixtures [Member] | Maximum [Member]
Class of Stock [Line Items]
Estimated useful lives			7 years
Restatement Adjustment [Member]
Class of Stock [Line Items]
Assets held for sale	$ 4,100,000		$ 4,100,000

Basis of Financial Statement 22

Basis of Financial Statement Presentation and Summary of Significant Accounting Policies - Part Two (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014
Class of Stock [Line Items]
Fair value of assets held for sale	$ 7.9	$ 19.9
Cash proceeds from sale of property	$ 11.9	27.1
Affiliated Entity [Member]
Class of Stock [Line Items]
Cash proceeds from sale of property		13.9
Gain on sale of Property		$ 2.3

Basis of Financial Statement 23

Basis of Financial Statement Presentation and Summary of Significant Accounting Policies - Part Three (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Estimated warranty expense	$ 1,818	$ 467	$ 2,954	$ 933
Movement in Standard Product Warranty Accrual [Roll Forward]
Accrued warranty reserve, beginning of period	1,767	806	1,528	639
Estimated warranty expense	1,818	467	2,954	933
Amounts charged against warranty reserve	(1,168)	(234)	(2,065)	(533)
Accrued warranty reserve, end of period	2,417	$ 1,039	2,417	$ 1,039
Increase in deferred tax asset valuation allowance			1,000
Valuation allowance for deferred tax assets	$ 130,800		$ 130,800
Amended and Restated 1997 Incentive and Capital Accumulation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			10 years
The Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance	590,483		590,483
2015 Incentive Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance	19,477		19,477
Shares available for grant (in shares)	760,513		760,513
Bonterra Builders, LLC [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Estimated warranty expense	$ 700
Movement in Standard Product Warranty Accrual [Roll Forward]
Estimated warranty expense	$ 700

Basis of Financial Statement 24

Basis of Financial Statement Presentation and Summary of Significant Accounting Policies - Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Jun. 23, 2015	Dec. 31, 2014	Jul. 31, 2012	Feb. 04, 2011
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage					6.00%
Numerator: [Abstract]
Net Income	$ 5,520	$ 678	$ (3,954)	$ (3,537)
Denominator: [Abstract]
Basic weighted average shares outstanding	22,018,449	21,953,484	22,006,460	21,941,293
Diluted weighted average shares outstanding	22,166,873	22,071,236	22,006,460	21,941,293
Basic earnings (loss) per share	$ 0.25	$ 0.03	$ (0.18)	$ (0.16)
Diluted earnings (loss) per share	$ 0.25	$ 0.03	$ (0.18)	$ (0.16)
7.50% Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	7.50%		7.50%			7.50%
7.50% Notes [Member] | Senior Convertible Debt [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage								7.50%
7.50% Notes [Member] | Senior Exchange Convertible Debt [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage							7.50%
7.50% Senior Exchange Convertible Notes [Member] | Senior Exchange Convertible Debt [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage							7.50%

Business Acquisition - Narrativ

Business Acquisition - Narrative (Details)	Jul. 01, 2015USD ($)lot	Mar. 13, 2014USD ($)lot	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)
Business Acquisition [Line Items]
Revenues			$ 153,827,000	$ 86,641,000	$ 292,046,000	$ 181,953,000
Net Income			5,520,000	678,000	(3,954,000)	(3,537,000)
Goodwill expected tax deductible amount			4,000,000		4,000,000
Bonterra Builders, LLC [Member]
Business Acquisition [Line Items]
Cash payments to acquire businesses	$ 101,500,000
Potential earn-out	6,000,000
Estimate of total payment for the earn-out	6,000,000
Consideration held as security	$ 800,000
Number of primary residential lots | lot	1,700
Revenues			41,200,000
Net Income			3,800,000
Trade name	$ 2,000,000
Amortization of Intangible Assets			100,000
Transaction and integration costs			700,000
Bonterra Builders, LLC [Member] | Trade Names [Member]
Business Acquisition [Line Items]
Trade name	$ 1,400,000
Amortization period	3 years
Bonterra Builders, LLC [Member] | Noncompete Agreements [Member]
Business Acquisition [Line Items]
Trade name	$ 600,000
Amortization period	5 years
Royal Oak LLC and Affiliate [Member]
Business Acquisition [Line Items]
Cash payments to acquire businesses		$ 65,000,000
Potential earn-out		3,000,000
Estimate of total payment for the earn-out			2,100,000
Contingent consideration (earn-out)			1,200,000
Target earn-out					3,000,000
Trade name		$ 614,000
Amortization of Intangible Assets			100,000		200,000
Transaction and integration costs				$ 0	900,000	$ 1,100,000
Goodwill expected tax deductible amount			$ 8,600,000		$ 8,600,000
Royal Oak LLC and Affiliate [Member] | Minimum [Member]
Business Acquisition [Line Items]
Performance target to receive earn-out		50.00%
Royal Oak LLC and Affiliate [Member] | Trade Names [Member]
Business Acquisition [Line Items]
Trade name		$ 600,000
Royal Oak LLC and Affiliate [Member] | Lots Owned Or Controlled [Member]
Business Acquisition [Line Items]
Number of primary residential lots | lot		2,500

Business Acquisition - Fair Val

Business Acquisition - Fair Value of the Total Consideration and Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Jul. 01, 2015	Mar. 13, 2014	Sep. 30, 2015	Dec. 31, 2014
Assets
Goodwill			$ 21,017	$ 6,071
Bonterra Builders, LLC [Member]
Business Acquisition [Line Items]
Cash paid for net assets	$ 42,241
Contingent consideration (earn-out)	6,300
Debt repaid at closing	52,941
Total consideration	101,482
Assets
Receivables and other current assets	574
Land and other inventories	91,631
Property, plant and equipment	14
Trade name	2,000
Goodwill	14,947
Total assets acquired	109,166
Liabilities
Accounts payable	5,071
Accrued and other liabilities	763
Customer deposits	1,850
Total liabilities assumed	7,684
Total net assets acquired	101,482
Royal Oak LLC and Affiliate [Member]
Business Acquisition [Line Items]
Cash paid for net assets		$ 25,848
Cash paid for bulk land purchase		28,009
Contingent consideration (earn-out)		2,500
Debt repaid at closing		8,827
Total consideration		65,184
Assets
Prepaid and other current assets		582
Land and other inventories		60,217
Property, plant and equipment		366
Trade name		614
Goodwill		6,071
Total assets acquired		67,850
Liabilities
Accounts payable		1,343
Accrued and other liabilities		469
Customer deposits		854
Total liabilities assumed		2,666
Total net assets acquired		65,184
Trade Names [Member] | Bonterra Builders, LLC [Member]
Assets
Trade name	1,400
Trade Names [Member] | Royal Oak LLC and Affiliate [Member]
Assets
Trade name		$ 600
Noncompete Agreements [Member] | Bonterra Builders, LLC [Member]
Assets
Trade name	$ 600

Business Acquisition - Pro Form

Business Acquisition - Pro Forma Operating Results (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Bonterra Builders, LLC [Member]
Business Acquisition [Line Items]
Revenue	$ 153,827	$ 114,895	$ 362,813	$ 266,524
Net income (loss)	$ 6,935	$ 2,448	$ 772	$ (2,458)
Income (loss) per common share - basic	$ 0.32	$ 0.11	$ 0.04	$ (0.11)
Income (loss) per common share - diluted	$ 0.31	$ 0.11	$ 0.04	$ (0.11)
Royal Oak LLC and Affiliate [Member]
Business Acquisition [Line Items]
Revenue				$ 195,089
Net income (loss)				$ (1,418)
Income (loss) per common share - basic and diluted				$ (0.06)

Land and Other Inventories (Det

Land and Other Inventories (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Inventory, Land Held for Development and Sale	$ 21,392		$ 21,392		$ 20,844
Land and other inventories	619,881		619,881		383,184
Interest Expense
Interest incurred	7,501	$ 6,716	21,002	$ 11,403
Interest capitalized	(5,661)	(3,875)	(13,499)	(8,451)
Interest expense	1,840	$ 2,841	7,503	$ 2,952
Primary residential [Member]
Property, Plant and Equipment [Line Items]
Land developed and in process of development	350,712		350,712		269,764
Homes completed or under construction	$ 247,777		$ 247,777		$ 92,576

Investments in Unconsolidated29

Investments in Unconsolidated Entities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Noncontrolling Interest [Line Items]
Investments in unconsolidated entities	$ 1,173		$ 1,173		$ 17,991
EM 646 [Member]
Noncontrolling Interest [Line Items]
Parent ownership percentage (percent)	58.00%		58.00%
Distribution Made to Partners, Value of Land Distributed			$ 19,900	$ 7,100
Investments in unconsolidated entities	$ 0		$ 0		15,600
EM 646 [Member] | Minimum [Member]
Noncontrolling Interest [Line Items]
Ownership percentage (percent)	20.00%		20.00%
EM 646 [Member] | Maximum [Member]
Noncontrolling Interest [Line Items]
Parent ownership percentage (percent)	58.00%		58.00%
Variable Interest Entity, Not Primary Beneficiary [Member]
Noncontrolling Interest [Line Items]
Contributions to unconsolidated entities	$ 0	$ 1,700	$ 2,900	$ 2,000
Investments in unconsolidated entities					$ 18,000

Debt (Details)

Debt (Details) - USD ($)	Jun. 23, 2015	Jun. 17, 2015	Jul. 31, 2012	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014	Aug. 31, 2014	Apr. 07, 2014	Feb. 04, 2011
Debt Instrument [Line Items]
Outstanding debt				$ 356,719,000		$ 356,719,000		$ 299,956,000
Interest payments				$ 2,000,000	$ 100,000	24,000,000	$ 7,600,000
Stated interest rate (percent)	6.00%
Accrued interest paid	$ 1,500,000
Cash payments of notes payable						$ 53,163,000	$ 5,421,000
Line of Credit [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity										$ 105,000,000
Conditional maximum borrowing capacity										175,000,000
Swing line maximum borrowing capacity										30,000,000
TPG Aviator, L.P. [Member]
Debt Instrument [Line Items]
Repurchase amount		$ 20,000,000
Ownership percentage (percent)		41.00%
Cash payments of notes payable		$ 20,000,000
JPMorgan Chase Bank, N.A. [Member] | Line of Credit [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity										$ 65,000,000
Citibank N.A. [Member] | Line of Credit [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity									$ 40,000,000
7.50% Notes [Member]
Debt Instrument [Line Items]
Stated interest rate (percent)				7.50%		7.50%		7.50%
Line of Credit [Member] | Senior Credit Facility [Member]
Debt Instrument [Line Items]
Outstanding debt				$ 30,000,000		$ 30,000,000		$ 0
Senior Convertible Debt [Member] | 7.50% Notes [Member]
Debt Instrument [Line Items]
Outstanding debt				46,793,000		46,793,000		55,481,000
Stated interest rate (percent)											7.50%
Aggregate principal amount											$ 100,000,000
Repurchase amount	8,700,000
Senior Exchange Convertible Debt [Member] | 7.50% Notes [Member]
Debt Instrument [Line Items]
Stated interest rate (percent)			7.50%
Principal amount of debt retired			$ 44,500,000
Senior Exchange Convertible Debt [Member] | 7.50% Senior Exchange Convertible Notes [Member]
Debt Instrument [Line Items]
Outstanding debt				0		0		44,475,000
Stated interest rate (percent)			7.50%
Aggregate principal amount			$ 0
Exchanged amount	15,400,000
Repurchase amount	$ 20,500,000
Senior Notes [Member] | 8.5% Senior Notes Due 2019 [Member]
Debt Instrument [Line Items]
Outstanding debt				$ 200,000,000		$ 200,000,000		200,000,000
Stated interest rate (percent)				8.50%	8.50%	8.50%	8.50%
Aggregate principal amount					$ 200,000,000		$ 200,000,000
Senior Notes [Member] | 6.00% Senior Convertible Notes Due 2020 [Member]
Debt Instrument [Line Items]
Outstanding debt				$ 79,926,000		$ 79,926,000		$ 0
Stated interest rate (percent)	6.00%
Aggregate principal amount	$ 80,000,000
Proceeds from notes	64,500,000
Repurchase amount	$ 30,700,000

Estimated Development Liabili31

Estimated Development Liability (Details) homesite in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015USD ($)homesite	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)homesite	Sep. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Estimated Development Liability for Sold Land [Abstract]
Number of estimated homes the estimated liability covers (homesites) | homesite	8		8
Charges related to estimated liability for sold land	$ 100	$ 200	$ 200	$ 200
Estimated development liability	$ 32,738		$ 32,738		$ 33,003

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Sep. 30, 2015USD ($)
Commitments and Contingencies Disclosure [Abstract]
Performance bond outstanding	$ 30.5

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Operating income (loss):
Cost of Real Estate Revenue	$ 142,683	$ 79,186	$ 277,066	$ 170,193
Segment operating income	11,144	7,455	14,980	11,760
Unallocated income (expenses):
Equity in earnings (loss) in unconsolidated entities	(5)	(5)	160	(10)
Corporate general and administrative expenses	(3,820)	(4,016)	(11,756)	(12,264)
Interest expense	(1,840)	(2,841)	(7,503)	(2,952)
Income tax expense (benefit)	0	0	0	0
Loss before income taxes	5,520	678	(3,954)	(3,208)
Net income attributable to non-controlling interests in consolidated entities	0	0	0	329
Net loss attributable to AV Homes	5,520	678	(3,954)	(3,537)
Segment assets	756,140		756,140		$ 668,886
Unallocated Revenues [Member]
Unallocated income (expenses):
Interest income and other	41	85	165	258
Equity in earnings (loss) in unconsolidated entities	(5)	(5)	160	(10)
Corporate general and administrative expenses	(3,820)	(4,016)	(11,756)	(12,264)
Interest expense	(1,840)	(2,841)	(7,503)	(2,952)
Income tax expense (benefit)	0	0	0	0
Loss before income taxes	5,520	678	(3,954)	(3,208)
Net income attributable to non-controlling interests in consolidated entities	0	0	0	329
Geography Eliminations [Member]
Unallocated income (expenses):
Segment assets	62,250		62,250		216,940
Florida [Member] | Operating Segments [Member]
Operating income (loss):
Revenues	89,589	69,183	197,149	137,530
Segment operating income	7,560	7,454	14,621	11,213
Florida [Member] | Operating Segments [Member] | Homebuilding [Member]
Operating income (loss):
Revenues	86,892	53,669	185,484	114,600
Cost of Real Estate Revenue	68,409	43,891	149,033	93,118
Homebuilding Selling, General and Administrative Expense	11,419	6,613	26,172	15,923
Florida [Member] | Operating Segments [Member] | Amenity [Member]
Operating income (loss):
Revenues	2,691	2,572	8,195	7,630
Cost of Real Estate Revenue	2,199	2,537	6,938	7,888
Florida [Member] | Operating Segments [Member] | Land Sales and Other [Member]
Operating income (loss):
Revenues	6	12,942	3,470	15,300
Cost of Real Estate Revenue	2	8,688	385	9,388
Florida [Member] | Reportable Geographical Components [Member]
Unallocated income (expenses):
Segment assets	348,503		348,503		278,091
Arizona [Member] | Operating Segments [Member]
Operating income (loss):
Revenues	20,012	17,458	45,196	44,423
Segment operating income	484	539	(1,450)	1,784
Arizona [Member] | Operating Segments [Member] | Homebuilding [Member]
Operating income (loss):
Revenues	20,012	17,458	45,196	30,555
Cost of Real Estate Revenue	16,497	14,660	38,704	25,640
Homebuilding Selling, General and Administrative Expense	3,009	2,209	7,846	5,150
Arizona [Member] | Operating Segments [Member] | Amenity [Member]
Operating income (loss):
Cost of Real Estate Revenue	22	66	96	327
Arizona [Member] | Operating Segments [Member] | Land Sales and Other [Member]
Operating income (loss):
Revenues	0	0	0	13,868
Cost of Real Estate Revenue	0	(16)	0	11,522
Arizona [Member] | Reportable Geographical Components [Member]
Unallocated income (expenses):
Segment assets	179,004		179,004		145,380
Carolinas [Member] | Operating Segments [Member]
Operating income (loss):
Revenues	44,226	0	49,701	0
Segment operating income	3,100	(538)	1,809	(1,237)
Carolinas [Member] | Operating Segments [Member] | Homebuilding [Member]
Operating income (loss):
Revenues	44,226	0	49,701	0
Cost of Real Estate Revenue	36,182	0	41,174	0
Homebuilding Selling, General and Administrative Expense	4,944	$ 538	6,718	$ 1,237
Carolinas [Member] | Reportable Geographical Components [Member]
Unallocated income (expenses):
Segment assets	$ 166,383		$ 166,383		$ 28,475

Fair Value Disclosures (Details

Fair Value Disclosures (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 23, 2015	Dec. 31, 2014	Sep. 30, 2014
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Stated interest rate (percent)		6.00%
7.50% Notes [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Stated interest rate (percent)	7.50%		7.50%
7.5% Senior Exchange Convertible Notes [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Stated interest rate (percent)	7.50%		7.50%
4.50% Notes [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Stated interest rate (percent)			8.50%
Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Contingent Consideration, Fair Value	$ 7,200		$ 2,404
Estimate of Fair Value, Fair Value Disclosure [Member] | Notes and Senior Exchange Convertible Notes [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Notes Payable, Fair Value Disclosure	45,740		99,040
Estimate of Fair Value, Fair Value Disclosure [Member] | 8.5% Senior Notes Due 2019 [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Notes Payable, Fair Value Disclosure	199,000		193,000
Estimate of Fair Value, Fair Value Disclosure [Member] | 6.00% Notes [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Notes Payable, Fair Value Disclosure	77,608		0
Estimate of Fair Value, Fair Value Disclosure [Member] | Senior Credit Facility [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Notes Payable, Fair Value Disclosure	30,000		0
Carrying Amount [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Contingent Consideration, Fair Value	7,200		2,404
Carrying Amount [Member] | Notes and Senior Exchange Convertible Notes [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Notes Payable, Fair Value Disclosure	46,793		99,956
Carrying Amount [Member] | 8.5% Senior Notes Due 2019 [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Notes Payable, Fair Value Disclosure	200,000		200,000
Carrying Amount [Member] | 6.00% Notes [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Notes Payable, Fair Value Disclosure	79,926		0
Carrying Amount [Member] | Senior Credit Facility [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Notes Payable, Fair Value Disclosure			$ 0
Line of Credit [Member] | Carrying Amount [Member] | Senior Credit Facility [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Notes Payable, Fair Value Disclosure	$ 30,000
Senior Notes [Member] | 8.5% Senior Notes Due 2019 [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Stated interest rate (percent)	8.50%			8.50%
Senior Notes [Member] | 6.00% Senior Convertible Notes Due 2020 [Member]
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items]
Stated interest rate (percent)		6.00%