Meritage Homes (MTH) 10-Q 1 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 27, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	Meritage Homes CORP
Entity Central Index Key	833,079
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		40,314,092

UNAUDITED CONSOLIDATED BALANCE

UNAUDITED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Assets
Cash and cash equivalents	$ 85,689	$ 131,702
Other receivables	86,232	70,355
Real estate	2,512,853	2,422,063
Real estate not owned	9,987	0
Deposits on real estate under option or contract	78,526	85,556
Investments in unconsolidated entities	16,928	17,097
Property and equipment, net	32,700	33,202
Deferred tax asset	53,883	53,320
Prepaids, other assets and goodwill	79,749	75,396
Total assets	2,956,547	2,888,691
Liabilities
Accounts payable	136,804	140,682
Accrued liabilities	158,666	170,852
Home sale deposits	32,797	28,348
Liabilities related to real estate not owned	8,489	0
Loans payable and other borrowings	75,820	32,195
Senior and convertible senior notes, net	1,095,606	1,095,119
Total liabilities	1,508,182	1,467,196
Stockholders’ Equity
Preferred stock, par value $0.01. Authorized 10,000,000 shares; none issued and outstanding at March 31, 2017 and December 31, 2016	0	0
Common stock, par value $0.01. Authorized 125,000,000 shares; issued 40,314,092 and 40,030,518 shares at March 31, 2017 and December 31, 2016, respectively	403	400
Additional paid-in capital	575,801	572,506
Retained earnings	872,161	848,589
Total stockholders’ equity	1,448,365	1,421,495
Total liabilities and stockholders’ equity	$ 2,956,547	$ 2,888,691

UNAUDITED CONSOLIDATED BALANCE3

UNAUDITED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	125,000,000	125,000,000
Common stock, shares issued (in shares)	40,314,092	40,030,518

UNAUDITED CONSOLIDATED INCOME S

UNAUDITED CONSOLIDATED INCOME STATEMENTS - USD ($) shares in Thousands, $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Homebuilding:
Home closing revenue		$ 660,617	$ 595,617
Land closing revenue		12,155	2,149
Total closing revenue		672,772	597,766
Cost of home closings		(553,349)	(492,270)
Cost of land closings		(9,660)	(1,700)
Total cost of closings		(563,009)	(493,970)
Home closing gross profit		107,268	103,347
Land closing gross profit		2,495	449
Total closing gross profit		109,763	103,796
Financial Services:
Revenue		2,944	2,500
Expense		(1,379)	(1,246)
Earnings from financial services unconsolidated entities and other, net		2,725	2,792
Financial services profit		4,290	4,046
Commissions and other sales costs		(48,320)	(46,177)
General and administrative expenses		(29,622)	(29,618)
Earnings/(loss) from other unconsolidated entities, net		373	(157)
Interest expense		(825)	(3,288)
Other income, net		1,110	283
Earnings before income taxes		36,769	28,885
Provision for income taxes		(13,197)	(7,916)
Net earnings		$ 23,572	$ 20,969
Earnings per common share:
Basic (in dollars per share)		$ 0.59	$ 0.53
Diluted (in dollars per share)	[1]	$ 0.56	$ 0.50
Weighted average number of shares:
Basic (in shares)		40,178	39,839
Diluted (in shares)		42,808	42,363
[1]	In accordance with ASC 260-10, Earnings Per Share, ("ASC 260-10") we calculate the dilutive effect of convertible securities using the "if-converted" method.

UNAUDITED CONSOLIDATED STATEMEN

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net earnings	$ 23,572	$ 20,969
Adjustments to reconcile net earnings to net cash used in operating activities:
Depreciation and amortization	3,670	3,402
Stock-based compensation	3,295	4,758
Excess income tax provision from stock-based awards	0	516
Equity in earnings from unconsolidated entities	(3,098)	(2,635)
Distributions of earnings from unconsolidated entities	3,280	3,477
Other	(18)	1,048
Changes in assets and liabilities:
Increase in real estate	(89,222)	(116,035)
Decrease/(increase) in deposits on real estate under option or contract	5,532	(4,046)
Increase in other receivables, prepaids and other assets	(20,162)	(168)
(Decrease)/increase in accounts payable and accrued liabilities	(16,064)	455
Increase in home sale deposits	4,449	6,442
Net cash used in operating activities	(84,766)	(81,817)
Cash flows from investing activities:
Investments in unconsolidated entities	(10)	(63)
Purchases of property and equipment	(3,238)	(3,940)
Proceeds from sales of property and equipment	49	35
Maturities/sales of investments and securities	1,226	645
Payments to purchase investments and securities	(1,226)	(645)
Net cash used in investing activities	(3,199)	(3,968)
Cash flows from financing activities:
Proceeds from Credit Facility, net	45,000	0
Repayment of loans payable and other borrowings	(3,048)	(3,893)
Excess income tax provision from stock-based awards	0	(516)
Proceeds from stock option exercises	0	161
Net cash provided by/(used in) financing activities	41,952	(4,248)
Net decrease in cash and cash equivalents	(46,013)	(90,033)
Cash and cash equivalents, beginning of period	131,702	262,208
Cash and cash equivalents, end of period	$ 85,689	$ 172,175

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND BASIS OF PRESENTATION	ORGANIZATION AND BASIS OF PRESENTATION Organization. Meritage Homes is a leading designer and builder of single-family homes. We primarily build in historically high-growth regions of the United States and offer a variety of homes that are designed to appeal to a wide range of homebuyers, including first-time, move-up, active adult and luxury. We have homebuilding operations in three regions: West, Central and East, which are comprised of nine states: Arizona, California, Colorado, Texas, Florida, Georgia, North Carolina, South Carolina and Tennessee. We also operate a wholly-owned title company, Carefree Title Agency, Inc. ("Carefree Title"). Carefree Title's core business includes title insurance and closing/settlement services we offer to our homebuyers. Through our predecessors, we commenced our homebuilding operations in 1985. Meritage Homes Corporation was incorporated in 1988 in the state of Maryland. Our homebuilding and marketing activities are conducted under the name of Meritage Homes in each of our homebuilding markets. We also offer luxury homes under the brand name of Monterey Homes in some markets. At March 31, 2017 , we were actively selling homes in 256 communities, with base prices ranging from approximately $168,000 to $1,400,000 . Basis of Presentation . The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These financial statements should be read in conjunction with the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2016. The consolidated financial statements include the accounts of Meritage Homes Corporation and those of our consolidated subsidiaries, partnerships and other entities in which we have a controlling financial interest, and of variable interest entities (see Note 3) in which we are deemed the primary beneficiary (collectively, “us”, “we”, “our” and “the Company”). Intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, the accompanying unaudited financial statements include all adjustments (consisting only of normal recurring entries), necessary for the fair presentation of our results for the interim periods presented. Results for interim periods are not necessarily indicative of results to be expected for the full year. Cash and Cash Equivalents. Liquid investments with an initial maturity of three months or less are classified as cash equivalents. Amounts in transit from title companies or closing agents for home closings of approximately $37.5 million and $75.3 million are included in cash and cash equivalents at March 31, 2017 and December 31, 2016 , respectively. Real Estate. Real estate is stated at cost unless the asset is determined to be impaired, at which point the inventory is written down to fair value as required by Accounting Standards Codification (“ASC”) 360-10, Property, Plant and Equipment (“ASC 360-10”) . Inventory includes the costs of land acquisition, land development, home construction, capitalized interest, real estate taxes, capitalized direct overhead costs incurred during development and home construction that benefit the entire community, less impairments, if any. Land and development costs are typically allocated and transferred to homes under construction when construction begins. Home construction costs are accumulated on a per-home basis, while selling costs are expensed as incurred. Cost of home closings includes the specific construction costs of the home and all related allocated land acquisition, land development and other common costs (both incurred and estimated to be incurred) that are allocated based upon the total number of homes expected to be closed in each community or phase. Any changes to the estimated total development costs of a community or phase are allocated to the remaining homes in the community or phase. When a home closes, we may have incurred costs for goods and services that have not yet been paid. An accrued liability to capture such obligations is recorded in connection with the home closing and charged directly to cost of sales. We rely on certain estimates to determine our construction and land development costs. Construction and land costs are comprised of direct and allocated costs, including estimated future costs. In determining these costs, we compile project budgets that are based on a variety of assumptions, including future construction schedules and costs to be incurred. It is possible that actual results could differ from budgeted amounts for various reasons, including construction delays, labor or material shortages, increases in costs that have not yet been committed, changes in governmental requirements, or other unanticipated issues encountered during construction and development and other factors beyond our control. To address uncertainty in these budgets, we assess, update and revise project budgets on a regular basis, utilizing the most current information available to estimate construction and land costs. Typically, a community's life cycle ranges from three to five years, commencing with the acquisition of the land, continuing through the land development phase, if applicable, and concluding with the sale, construction and closing of the homes. Actual community lives will vary based on the size of the community, the sales absorption rate and whether the land purchased was raw, partially-developed or in finished status. Master-planned communities encompassing several phases and super-block land parcels may have significantly longer lives and projects involving smaller finished lot purchases may be shorter. All of our land inventory and related real estate assets are reviewed for recoverability, as our inventory is considered “long-lived” in accordance with GAAP. Impairment charges are recorded to write down an asset to its estimated fair value if the undiscounted cash flows expected to be generated by the asset are lower than its carrying amount. Our determination of fair value is based on projections and estimates. Changes in these expectations may lead to a change in the outcome of our impairment analysis, and actual results may also differ from our assumptions. Such an analysis is conducted if there is an indication of a decline in value of our land and real estate assets. The impairment of a community is allocated to each lot on a straight-line basis. Deposits. Deposits paid related to land options and purchase contracts are recorded and classified as Deposits on real estate under option or contract until the related land is purchased. Deposits are reclassified as a component of real estate inventory at the time the deposit is used to offset the acquisition price of the lots based on the terms of the underlying agreements. To the extent they are non-refundable, deposits are charged to expense if the land acquisition is terminated or no longer considered probable. Since our acquisition contracts typically do not require specific performance, we do not consider such contracts to be contractual obligations to purchase the land and our total exposure under such contracts is limited to the loss of the non-refundable deposits and any ancillary capitalized costs. Our deposits on real estate under option or contract were $78.5 million and $85.6 million as of March 31, 2017 and December 31, 2016 , respectively. Goodwill. In accordance with ASC 350, Intangibles, Goodwill and Other ("ASC 350"), we analyze goodwill on an annual basis (or whenever indication of impairment exists) through a qualitative assessment to determine whether it is necessary to perform a two-step goodwill impairment test. ASC 350 states that an entity may first assess qualitative factors to determine whether it is necessary to perform a two-step goodwill impairment test. Such qualitative factors include: (1) macroeconomic conditions, such as a deterioration in general economic conditions, (2) industry and market considerations such as deterioration in the environment in which the entity operates, (3) cost factors such as increases in raw materials and labor costs, and (4) overall financial performance such as negative or declining cash flows or a decline in actual or planned revenue or earnings. If the qualitative analysis determines that additional impairment testing is required, the two-step impairment testing in accordance with ASC 350 would be initiated. We continually evaluate our qualitative inputs to assess whether events and circumstances have occurred that indicate the goodwill balance may not be recoverable. Off-Balance Sheet Arrangements - Joint Ventures . We may participate in land development joint ventures as a means of accessing larger parcels of land and lot positions, expanding our market opportunities, managing our risk profile and leveraging our capital base. See Note 4 for additional discussion of our investments in unconsolidated entities . Off-Balance Sheet Arrangements - Other. In the normal course of business, we may acquire lots from various development entities pursuant to option and purchase agreements. The purchase price generally approximates the market price at the date the contract is executed (with possible future escalators). See Note 3 for additional information on off-balance sheet arrangements. Surety Bonds and Letters of Credit. We provide letters of credit in support of our obligations relating to the development of our projects and other corporate purposes. Surety bonds are generally posted in lieu of letters of credit or cash deposits. The amount of these obligations outstanding at any time varies depending on the stage and level of completion of our development activities. Bonds are generally not released until all development activities under the bond are complete. In the event a bond or letter of credit is drawn upon, we would be obligated to reimburse the issuer for any amounts advanced under the bond. We believe it is unlikely that any significant amounts of these bonds or letters of credit will be drawn upon. The table below outlines our surety bond and letter of credit obligations (in thousands): As of March 31, 2017 December 31, 2016 Outstanding Estimated work remaining to complete Outstanding Estimated work remaining to complete Sureties: Sureties related to owned projects and lots under contract 236,764 81,245 239,246 85,706 Total Sureties $ 236,764 $ 81,245 $ 239,246 $ 85,706 Letters of Credit (“LOCs”): LOCs in lieu of deposits for contracted lots $ 5,250 N/A $ 250 N/A LOCs for land development 38,245 N/A 39,839 N/A LOCs for general corporate operations 3,750 N/A 3,750 N/A Total LOCs $ 47,245 N/A $ 43,839 N/A Accrued Liabilities . Accrued liabilities at March 31, 2017 and December 31, 2016 consisted of the following (in thousands): As of March 31, 2017 December 31, 2016 Accruals related to real estate development and construction activities $ 51,050 $ 53,778 Payroll and other benefits 30,660 52,941 Accrued taxes 12,143 9,637 Warranty reserves 22,477 22,660 Legal reserves (1) 875 673 Other accruals 41,461 31,163 Total $ 158,666 $ 170,852 (1) See Note 15 for additional information related to our legal reserves. Warranty Reserves. We provide home purchasers with limited warranties against certain building defects and we have certain obligations related to those post-construction warranties for closed homes. The specific terms and conditions of these limited warranties vary by state, but overall the nature of the warranties include a complete workmanship and materials warranty typically during the first one to two years after the close of the home and a structural warranty that typically extends up to 10 years subsequent to the close of the home. With the assistance of an actuary, we have estimated these reserves for the structural warranty based on the number of homes still under warranty and historical data and trends for our communities. We also use industry data with respect to similar product types and geographic areas in markets where our experience is incomplete to draw a meaningful conclusion. We regularly review our warranty reserves and adjust them, as necessary, to reflect changes in trends as information becomes available. No adjustments were made to our warranty reserve balance in the three months ended March 31, 2017 . In the three months ended March 31, 2016 we increased our warranty reserve balance by $441,000 , which increased our cost of sales. A summary of changes in our warranty reserves follows (in thousands): Three Months Ended March 31, 2017 2016 Balance, beginning of period $ 22,660 $ 21,615 Additions to reserve from new home deliveries 3,815 3,094 Warranty claims (3,998 ) (2,842 ) Adjustments to pre-existing reserves — 441 Balance, end of period $ 22,477 $ 22,308 Warranty reserves are included in Accrued liabilities on the accompanying unaudited consolidated balance sheets, and additions and adjustments to the reserves, if any, are included in Cost of home closings within the accompanying unaudited consolidated income statements. These reserves are intended to cover costs associated with our contractual and statutory warranty obligations, which include, among other items, claims involving defective workmanship and materials. We believe that our total reserves, coupled with our contractual relationships and rights with our trades and the general liability insurance we maintain, are sufficient to cover our general warranty obligations. However, as unanticipated changes in legal, weather, environmental or other conditions could have an impact on our actual warranty costs, future costs could differ significantly from our estimates. Recent Accounting Pronouncements. In August 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (Topic 230) , ("ASU 2016-15"). ASU 2016-15 adds and clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows, reducing the existing diversity in practice that has resulted from the lack of consistent principles on this topic. ASU 2016-15 is effective for us beginning January 1, 2018. Early adoption is permitted. We are currently evaluating the impact adopting this guidance will have on classifications in our statement of cash flows. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. In addition, ASU 2016-09 permits entities to make an election to either estimate forfeitures or recognize them as they occur. ASU 2016-09 was effective for us beginning January 1, 2017, and is reflected prospectively in the March 31, 2017 provision for income taxes in the accompanying unaudited consolidated income statement. The impact of the adoption was not material to our consolidated financial statements, including our prior year cash flow, which was not revised. We continue to estimate forfeitures in calculating stock-based compensation expense and have not elected to recognize forfeitures as they occur. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02"), which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets. ASU 2016-02 will be effective for us beginning January 1, 2019, and early adoption is permitted. ASU 2016-02 requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. We are currently evaluating the impact adopting this guidance will have on our financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), (“ASU 2014-09”). ASU 2014-09 requires entities to recognize revenue that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services by applying the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 supersedes the revenue recognition requirements in ASU 605, Revenue Recognition , most industry-specific guidance throughout the industry topics of the ASC, and some cost guidance related to construction-type and production-type contracts. ASU 2014-09 is effective for us on January 1, 2018, and the guidance allows for full retrospective or modified retrospective methods of adoption. We are currently evaluating the potential impact of adopting this guidance on our consolidated financial statements. We do not believe the adoption of ASU 2014-09 will have an impact on the amount or timing of our homebuilding revenues. We are still evaluating the potential impact the adoption of ASU 2014-09 will have on the timing and recognition of certain selling costs we incur to obtain a sales contract.

REAL ESTATE AND CAPITALIZED INT

REAL ESTATE AND CAPITALIZED INTEREST	3 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
REAL ESTATE AND CAPITALIZED INTEREST	REAL ESTATE AND CAPITALIZED INTEREST Real estate consists of the following (in thousands): As of March 31, 2017 December 31, 2016 Homes under contract under construction (1) $ 617,790 $ 508,927 Unsold homes, completed and under construction (1) 395,841 431,725 Model homes (1) 149,872 147,406 Finished home sites and home sites under development (2) 1,349,350 1,334,005 Total $ 2,512,853 $ 2,422,063 (1) Includes the allocated land and land development costs associated with each lot for these homes. (2) Includes raw land, land held for development and land held for sale. Land held for development primarily reflects land and land development costs related to land where development activity is not currently underway but is expected to begin in the future. For these parcels, we may have chosen not to currently develop certain land holdings as they typically represent a portion or phases of a larger land parcel that we plan to build out over several years. We do not capitalize interest for inactive assets, and all ongoing costs of land ownership (i.e. property taxes, homeowner association dues, etc.) are expensed as incurred. Subject to sufficient qualifying assets, we capitalize our development period interest costs incurred in connection with our real estate development and construction activities. Capitalized interest is allocated to active real estate when incurred and charged to cost of closings when the related property is delivered. A summary of our capitalized interest is as follows (in thousands): Three Months Ended March 31, 2017 2016 Capitalized interest, beginning of period $ 68,196 $ 61,202 Interest incurred 17,895 17,559 Interest expensed (825 ) (3,288 ) Interest amortized to cost of home and land closings (14,381 ) (11,347 ) Capitalized interest, end of period (1) $ 70,885 $ 64,126 (1) Approximately $47,000 and $130,000 of the capitalized interest is related to our joint venture investments and is a component of Investments in unconsolidated entities on our consolidated balance sheet as of March 31, 2017 and December 31, 2016 , respectively.

VARIABLE INTEREST ENTITIES AND

VARIABLE INTEREST ENTITIES AND CONSOLIDATED REAL ESTATE NOT OWNED	3 Months Ended
	Mar. 31, 2017
Variable Interest Entities and Consolidated Real Estate Not Owned [Abstract]
VARIABLE INTEREST ENTITIES AND CONSOLIDATED REAL ESTATE NOT OWNED	VARIABLE INTEREST ENTITIES AND CONSOLIDATED REAL ESTATE NOT OWNED We enter into purchase and option agreements for land or lots as part of the normal course of business. These purchase and option agreements enable us to acquire properties at one or multiple future dates at pre-determined prices. We believe these acquisition structures reduce our financial risk associated with land acquisitions and allow us to better leverage our balance sheet. Based on the provisions of the relevant accounting guidance, we have concluded that when we enter into a purchase or option agreement to acquire land or lots from an entity, a variable interest entity, or “VIE”, may be created. We evaluate all purchase and option agreements for land to determine whether they are a VIE. ASC 810, Consolidation , requires that for each VIE, we assess whether we are the primary beneficiary and, if so, consolidate the VIE in our financial statements and reflect such assets and liabilities as Real estate not owned. The liabilities related to consolidated VIEs are generally excluded from our debt covenant calculations. In order to determine if we are the primary beneficiary, we must first assess whether we have the ability to control the activities of the VIE that most significantly impact its economic performance. Such activities include, but are not limited to: the ability to determine the budget and scope of land development work, if any; the ability to control financing decisions for the VIE; the ability of the VIE to acquire additional land or dispose of land not under contract with Meritage; and the ability to change or amend the existing option contract with the VIE. If we are not determined to control such activities, we are not considered the primary beneficiary of the VIE. If we do have the ability to control such activities, we will continue our analysis by determining if we are also expected to absorb a potentially significant amount of the VIE’s losses or, if no party absorbs the majority of such losses, if we will benefit from a potentially significant amount of the VIE’s expected gains. In substantially all cases, creditors of the entities with which we have option agreements have no recourse against us and the maximum exposure to loss in our option agreements is limited to non-refundable option deposits and any capitalized pre-acquisition costs. Often, we are at risk for items over budget related to land development on property we have under option if we are the land developer. In these cases, we have contracted to complete development at a fixed cost for our benefit, but on behalf of the land owner, and any budget savings or shortfalls are typically borne by us. Some of our option deposits may be refundable to us if certain contractual conditions are not performed by the party selling the lots. The table below presents a summary of our lots under option at March 31, 2017 (dollars in thousands): Projected Number of Lots Purchase Price Option/ Earnest Money Deposits–Cash Purchase and option contracts recorded on balance sheet as Real estate not owned 65 $ 9,987 $ 1,498 Option contracts — non-refundable deposits, committed (1) 4,903 386,834 49,858 Purchase contracts — non-refundable deposits, committed (1) 5,336 279,229 21,795 Purchase and option contracts —refundable deposits, committed 1,173 67,221 2,663 Total committed 11,477 743,271 75,814 Purchase and option contracts — refundable deposits, uncommitted (2) 8,632 280,234 4,210 Total lots under contract or option 20,109 $ 1,023,505 $ 80,024 Total purchase and option contracts not recorded on balance sheet (3) 20,044 $ 1,013,518 $ 78,526 (4) (1) Deposits are non-refundable except if certain contractual conditions are not performed by the selling party. (2) Deposits are refundable at our sole discretion. We have not completed our acquisition evaluation process and we have not internally committed to purchase these lots. (3) Except for our specific performance contracts recorded on our balance sheet as Real estate not owned, none of our option agreements require us to purchase lots. (4) Amount is reflected on our consolidated balance sheet in Deposits on real estate under option or contract as of March 31, 2017 . Generally, our options to purchase lots remain effective so long as we purchase a pre-established minimum number of lots each month or quarter, as determined by the respective agreement. Although the pre-established number is typically structured to approximate our expected rate of home construction starts, during a weakened homebuilding market, we may purchase lots at an absorption level that exceeds our sales and home starts pace in order to meet the pre-established minimum number of lots or we will work to restructure our original contract to terms that more accurately reflect our revised sales pace expectations.

INVESTMENTS IN UNCONSOLIDATED E

INVESTMENTS IN UNCONSOLIDATED ENTITIES	3 Months Ended
	Mar. 31, 2017
Equity Method Investments and Joint Ventures [Abstract]
INVESTMENTS IN UNCONSOLIDATED ENTITIES	INVESTMENTS IN UNCONSOLIDATED ENTITIES We may enter into land development joint ventures as a means of accessing larger parcels of land, expanding our market opportunities, managing our risk profile and leveraging our capital base. While purchasing land through a joint venture can be beneficial, currently we do not view joint ventures as critical to the success of our homebuilding operations. In 2016, we entered into our first new joint venture since 2008. Based on the structure of each joint venture, it may or may not be consolidated into our results. Our joint venture partners are generally other homebuilders, land sellers or other real estate investors. We generally do not have a controlling interest in these ventures, which means our joint venture partners could cause the venture to take actions we disagree with, or fail to take actions we believe should be undertaken, including the sale of the underlying property to repay debt or recoup all or part of the partners' investments. As of March 31, 2017 , we had three active equity-method land ventures. As of March 31, 2017 , we also participated in one mortgage joint venture, which is engaged in mortgage activities and provides services to both our homebuyers as well as other buyers. Our investment in this mortgage joint venture as of March 31, 2017 and December 31, 2016 was $1.7 million and $2.3 million , respectively. Summarized condensed combined financial information related to unconsolidated joint ventures that are accounted for using the equity method was as follows (in thousands): As of March 31, 2017 December 31, 2016 Assets: Cash $ 7,533 $ 7,446 Real estate 54,252 54,319 Other assets 4,166 6,461 Total assets $ 65,951 $ 68,226 Liabilities and equity: Accounts payable and other liabilities $ 5,506 $ 7,339 Notes and mortgages payable 23,332 23,000 Equity of: Meritage (1) 14,671 14,245 Other 22,442 23,642 Total liabilities and equity $ 65,951 $ 68,226 Three Months Ended March 31, 2017 2016 Revenue $ 7,599 $ 11,071 Costs and expenses (4,480 ) (4,976 ) Net earnings of unconsolidated entities $ 3,119 $ 6,095 Meritage’s share of pre-tax earnings (1) (2) $ 3,182 $ 2,635 (1) Balance represents Meritage’s interest, as reflected in the financial records of the respective joint ventures. This balance may differ from the balance reported in our consolidated financial statements due to the following reconciling items: (i) timing differences for revenue and distributions recognition, (ii) step-up basis and corresponding amortization, (iii) capitalization of interest on qualified assets, (iv) income deferrals as discussed in Note (2) below and (v) the cessation of allocation of losses from joint ventures in which we have previously written down our investment balance to zero and where we have no commitment to fund additional losses. As discussed in Note 2 to these unaudited combined financial statements, balances do not include $47,000 and $130,000 of capitalized interest that is a component of our investment balances at March 31, 2017 and December 31, 2016 , respectively. (2) Our share of pre-tax earnings is recorded in Earnings from financial services unconsolidated entities and other, net and Earnings/(loss) from other unconsolidated entities, net on our consolidated income statements and excludes joint venture profit related to lots we purchased from the joint ventures. Such profit is deferred until homes are delivered by us and title passes to a homebuyer. The joint venture assets and liabilities noted in the table above primarily represent three active land ventures, one mortgage venture and various inactive ventures. Our total investment in all of these joint ventures is $16.9 million and $17.1 million as of March 31, 2017 and December 31, 2016 , respectively. We believe these ventures are in compliance with their respective debt agreements, if applicable, and such debt is non-recourse to us.

LOANS PAYABLE AND OTHER BORROWI

LOANS PAYABLE AND OTHER BORROWINGS	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
LOANS PAYABLE AND OTHER BORROWINGS	LOANS PAYABLE AND OTHER BORROWINGS Loans payable and other borrowings consist of the following (in thousands): As of March 31, 2017 December 31, 2016 Other borrowings, real estate notes payable (1) $ 15,820 $ 17,195 $540 million unsecured revolving credit facility with interest approximating LIBOR (approximately 0.98% at March 31, 2017) plus 1.75% or Prime (4.00% at March 31, 2017) plus 0.75% 60,000 15,000 Total $ 75,820 $ 32,195 (1) Reflects balance of non-recourse notes payable in connection with land purchases, with interest rates ranging from 0% to 8% . The Company has a $540.0 million unsecured revolving credit facility ("Credit Facility"), with an accordion feature that permits the size of the facility to increase to a maximum of $600.0 million . In June 2016, the maturity date of a substantial portion of the credit facility was extended whereby $60.0 million matures in July 2019 with the remainder maturing in July 2020. Borrowings under the Credit Facility are unsecured but availability is subject to, among other things, a borrowing base. The Credit Facility also contains certain financial covenants, including (a) a minimum tangible net worth requirement of $670.3 million (which amount is subject to increase over time based on subsequent earnings and proceeds from equity offerings), and (b) a maximum leverage covenant that prohibits the leverage ratio (as defined therein) from exceeding 60% . In addition, we are required to maintain either (i) an interest coverage ratio (EBITDA to interest expense, as defined therein) of at least 1.50 to 1.00 or (ii) liquidity (as defined therein) of an amount not less than our consolidated interest incurred during the trailing 12 months . We had $60.0 million of outstanding borrowings under the Credit Facility as of March 31, 2017 and $15.0 million in borrowings at December 31, 2016 . During the three months ended March 31, 2017 we had $160.0 million of gross borrowings and $115.0 million of repayments. During the three months ended March 31, 2016 , there were no gross borrowings or repayments. As of March 31, 2017 we had outstanding borrowings of $60.0 million and outstanding letters of credit issued under the Credit Facility totaling $47.2 million , leaving $432.8 million available under the Credit Facility to be drawn.

SENIOR AND CONVERTIBLE SENIOR N

SENIOR AND CONVERTIBLE SENIOR NOTES, NET	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
SENIOR AND CONVERTIBLE SENIOR NOTES, NET	SENIOR AND CONVERTIBLE SENIOR NOTES, NET Senior and convertible senior notes, net consist of the following (in thousands): As of March 31, 2017 December 31, 2016 4.50% senior notes due 2018 $ 175,000 $ 175,000 7.15% senior notes due 2020. At March 31, 2017 and December 31, 2016 there was approximately $1,707 and $1,849 in net unamortized premium, respectively 301,707 301,849 7.00% senior notes due 2022 300,000 300,000 6.00% senior notes due 2025 200,000 200,000 1.875% convertible senior notes due 2032 126,500 126,500 Net debt issuance costs (7,601 ) (8,230 ) Total $ 1,095,606 $ 1,095,119 The indentures for all of our senior notes contain covenants including, among others, limitations on the amount of secured debt we may incur, and limitations on sale and leaseback transactions and mergers. We believe we are in compliance with all such covenants as of March 31, 2017 . Our convertible senior notes ("Convertible Notes") do not have any financial covenants. The Convertible Notes are convertible into shares of our common stock at an initial conversion rate of 17.1985 shares of our common stock per $1,000 principal amount of convertible senior notes. This corresponds to an initial conversion price of $58.14 per share and represented a 47.5% conversion premium based on the closing price of our common stock on the issue date of the convertible senior notes. The Convertible Notes may be redeemed by the note-holders on the fifth, tenth and fifteenth anniversary dates of the Convertible Notes. On such dates, the note-holders may require us to repurchase all or any portion of their outstanding notes. The fifth anniversary of the Convertible Notes is September 15, 2017. The amount due to the note-holders in the event of a repurchase is equal to 100% of the principal amount plus any accrued and unpaid interest. We may call the Convertible Notes at any time after the fifth anniversary. Obligations to pay principal and interest on the senior and convertible notes are guaranteed by substantially all of our wholly-owned subsidiaries (each a “Guarantor” and, collectively, the “Guarantor Subsidiaries”), each of which is directly or indirectly 100% owned by Meritage Homes Corporation. Such guarantees are full and unconditional, and joint and several. In the event of a sale or other disposition of all of the assets of any Guarantor, by way of merger, consolidation or otherwise, or a sale or other disposition of all of the equity interests of any Guarantor then held by Meritage and its subsidiaries, then that Guarantor may be released and relieved of any obligations under its note guarantee. There are no significant restrictions on our ability or the ability of any Guarantor to obtain funds from their respective subsidiaries, as applicable, by dividend or loan. We do not provide separate financial statements of the Guarantor Subsidiaries because Meritage (the parent company) has no independent assets or operations and the guarantees are full and unconditional and joint and several. Subsidiaries of Meritage Homes Corporation that are nonguarantor subsidiaries are, individually and in the aggregate, minor.

FAIR VALUE DISCLOSURES

FAIR VALUE DISCLOSURES	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE DISCLOSURES	FAIR VALUE DISCLOSURES We account for non-recurring fair value measurements of our non-financial assets and liabilities in accordance with ASC 820-10 Fair Value Measurement ("ASC 820"). This guidance defines fair value, establishes a framework for measuring fair value and addresses required disclosures about fair value measurements. This standard establishes a three-level hierarchy for fair value measurements based upon the significant inputs used to determine fair value. Observable inputs are those which are obtained from market participants external to the company while unobservable inputs are generally developed internally, utilizing management’s estimates, assumptions and specific knowledge of the assets/liabilities and related markets. The three levels are defined as follows: • Level 1 — Valuation is based on quoted prices in active markets for identical assets and liabilities. • Level 2 — Valuation is determined from quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar instruments in markets that are not active, or by model-based techniques in which all significant inputs are observable in the market. • Level 3 — Valuation is derived from model-based techniques in which at least one significant input is unobservable and based on the company’s own estimates about the assumptions that market participants would use to value the asset or liability. If the only observable inputs are from inactive markets or for transactions which the company evaluates as “distressed”, the use of Level 1 inputs should be modified by the company to properly address these factors, or the reliance of such inputs may be limited, with a greater weight attributed to Level 3 inputs. Refer to Notes 1 and 2 for additional information regarding the valuation of our non-financial assets. Financial Instruments : The fair value of our fixed-rate debt is derived from quoted market prices by independent dealers (level 2 inputs as per the discussion above) and is as follows (in thousands): As of March 31, 2017 December 31, 2016 Aggregate Principal Estimated Fair Value Aggregate Principal Estimated Fair Value 4.50% senior notes $ 175,000 $ 178,063 $ 175,000 $ 177,625 7.15% senior notes $ 300,000 $ 328,080 $ 300,000 $ 325,500 7.00% senior notes $ 300,000 $ 336,000 $ 300,000 $ 324,750 6.00% senior notes $ 200,000 $ 208,380 $ 200,000 $ 202,500 1.875% convertible senior notes $ 126,500 $ 126,026 $ 126,500 $ 126,105 Due to the short-term nature of other financial assets and liabilities, including our Loans payable and other borrowings, we consider the carrying amounts of our other short-term financial instruments to approximate fair value.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE Basic and diluted earnings per common share were calculated as follows (in thousands, except per share amounts): Three Months Ended March 31, 2017 2016 Basic weighted average number of shares outstanding 40,178 39,839 Effect of dilutive securities: Convertible senior notes (1) 2,176 2,176 Unvested restricted stock 454 348 Diluted average shares outstanding 42,808 42,363 Net earnings as reported $ 23,572 $ 20,969 Interest attributable to convertible senior notes, net of income taxes 387 400 Net earnings for diluted earnings per share $ 23,959 $ 21,369 Basic earnings per share $ 0.59 $ 0.53 Diluted earnings per share (1) $ 0.56 $ 0.50 Antidilutive stock not included in the calculation of diluted earnings per share 14 68 (1) In accordance with ASC 260-10, Earnings Per Share , ("ASC 260-10") we calculate the dilutive effect of convertible securities using the "if-converted" method.

ACQUISITIONS AND GOODWILL

ACQUISITIONS AND GOODWILL	3 Months Ended
	Mar. 31, 2017
Business Acquisitions and Goodwill [Abstract]
ACQUISITIONS AND GOODWILL	ACQUISITIONS AND GOODWILL Goodwill. Over the past several years, we entered new markets through the acquisition of the homebuilding assets and operations of local/regional homebuilders in Georgia, South Carolina and Tennessee. As a result of these transactions, we recorded approximately $33.0 million of goodwill. Goodwill represents the excess of the purchase price of our acquisitions over the fair value of the net assets acquired. Our acquisitions are recorded in accordance with ASC 805, Business Combination s ("ASC 805") and ASC 820, using the acquisition method of accounting. The purchase price for acquisitions is allocated based on estimated fair value of the assets and liabilities at the date of the acquisition. The combined excess purchase price of our acquisitions over the fair value of the net assets is classified as goodwill and is included on our consolidated balance sheet in Prepaids, other assets and goodwill. In accordance with ASC 350, we assess the recoverability of goodwill annually, or more frequently, if impairment indicators are present. A summary of the carrying amount of goodwill follows (in thousands): West Central East Financial Services Corporate Total Balance at December 31, 2016 $ — $ — $ 32,962 $ — $ — $ 32,962 Additions — — — — — — Impairments — — — — — — Balance at March 31, 2017 $ — $ — $ 32,962 $ — $ — $ 32,962

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2017
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' EQUITY	STOCKHOLDERS’ EQUITY A summary of changes in stockholders’ equity is presented below (in thousands): Three Months Ended March 31, 2017 (In thousands) Number of Shares Common Stock Additional Paid-In Capital Retained Earnings Total Balance at December 31, 2016 40,031 $ 400 $ 572,506 $ 848,589 $ 1,421,495 Net earnings — — — 23,572 23,572 Exercise/vesting of stock-based awards 283 3 (3 ) — — Stock-based compensation expense — — 3,298 — 3,298 Balance at March 31, 2017 40,314 $ 403 $ 575,801 $ 872,161 $ 1,448,365 Three Months Ended March 31, 2016 (In thousands) Number of Shares Common Stock Additional Paid-In Capital Retained Earnings Total Balance at December 31, 2015 39,669 $ 397 $ 559,492 $ 699,048 $ 1,258,937 Net earnings — — — 20,969 20,969 Exercise/vesting of stock-based awards 316 3 158 — 161 Excess income tax benefit from stock-based awards — — (516 ) — (516 ) Stock-based compensation expense — — 4,758 — 4,758 Balance at March 31, 2016 39,985 $ 400 $ 563,892 $ 720,017 $ 1,284,309

STOCK BASED AND DEFERRED COMPEN

STOCK BASED AND DEFERRED COMPENSATION	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK BASED AND DEFERRED COMPENSATION	STOCK BASED AND DEFERRED COMPENSATION We have a stock compensation plan, the Amended and Restated 2006 Stock Incentive Plan (the “Plan”), that was adopted in 2006 and has been amended or restated from time to time. The Plan was approved by our stockholders and is administered by our Board of Directors. The provisions of the Plan allow for the grant of stock appreciation rights, restricted stock awards, restricted stock units, performance share awards and performance-based awards in addition to non-qualified and incentive stock options. The Plan authorizes awards to officers, key employees, non-employee directors and consultants for up to 5,350,000 shares of common stock, of which 1,057,842 shares remain available for grant at March 31, 2017 . The available shares include shares from expired, terminated or forfeited awards under prior plans that have since expired and are thus available for grant under the Plan. We believe that such awards provide a means of performance-based compensation to attract and retain qualified employees and better align the interests of our employees with those of our stockholders. Non-vested stock awards are usually granted with a five -year ratable vesting period for employees and with a three -year cliff vesting for both non-vested stock and performance-based awards granted to certain senior executive officers and non-employee directors. Compensation cost related to time-based restricted stock awards is measured as of the closing price on the date of grant and is expensed on a straight-line basis over the vesting period of the award. Compensation cost related to performance-based restricted stock awards is also measured as of the closing price on the date of grant but is expensed in accordance with ASC 718-10-25-20, Compensation – Stock Compensation ("ASC 718"), which requires an assessment of probability of attainment of the performance target. As our performance targets are dependent on performance over a specified measurement period, once we determine that the performance target outcome is probable, the cumulative expense is recorded immediately with the remaining expense recorded on a straight-line basis through the end of the award vesting period. Beginning with grants in 2014, a portion of the performance-based restricted stock awards granted contain market conditions as defined by ASC 718. The guidance in ASC 718 requires that compensation expense for stock awards with market conditions be expensed based on a derived grant date fair value and expensed over the service period. We engaged a third party to perform a valuation analysis on the awards containing market conditions and our associated expense with those awards is based on the derived fair value from that analysis and is being expensed straight-line over the service period of the awards. Below is a summary of compensation expense and stock award activity (dollars in thousands): Three Months Ended March 31, 2017 2016 Stock-based compensation expense $ 3,295 $ 4,758 Non-vested shares granted 416,500 493,865 Performance-based non-vested shares granted 154,120 66,698 Stock options exercised (1) — 11,200 Restricted stock awards vested (includes performance-based awards) 283,574 305,085 (1) As of December 31, 2016, we have no remaining unexercised stock options. The following table includes additional information regarding our Plan (dollars in thousands): As of March 31, 2017 December 31, 2016 Unrecognized stock-based compensation cost $ 27,472 $ 18,528 Weighted average years expense recognition period 3.28 2.56 Total stock-based awards outstanding (1) 1,367,271 1,147,271 (1) Includes unvested restricted stock and performance-based awards (at target level) and restricted stock units. We also offer a non-qualified deferred compensation plan ("deferred compensation plan") to highly compensated employees in order to allow them additional pre-tax income deferrals above and beyond the limits that qualified plans, such as 401k plans, impose on highly compensated employees. We do not currently offer a contribution match on the deferred compensation plan. All contributions to the plan to date have been funded by the employees and, therefore, we have no associated expense related to the deferred compensation plan for the three months ended March 31, 2017 or 2016 , other than minor administrative costs.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Components of the income tax provision are as follows (in thousands): Three Months Ended March 31, 2017 2016 Federal $ 11,573 $ 6,541 State 1,624 1,375 Total $ 13,197 $ 7,916 The effective tax rate for the three months ended March 31, 2017 was 35.9% , and for the three months ended March 31, 2016 was 27.4% . Our tax rate has been favorably impacted in both years by the homebuilding manufacturing deduction. The lower 2016 effective tax rate reflects the benefit of federal energy credits for homes sold in both 2016 and in prior periods as a result of the Protecting Americans from Tax Hikes (PATH) Act of 2015. The PATH Act was the enabling legislation for claiming federal energy tax credits on homes qualifying in 2015 and 2016. This legislation has expired and has not yet been renewed for 2017. Accordingly, our effective tax rate for 2017 does no t reflect a tax benefit from federal energy credits for homes sold in 2017. At March 31, 2017 and December 31, 2016 , we have no unrecognized tax benefits due to the lapse of applicable statutes of limitations and completion of audits for prior years. We believe that our current income tax filing positions and deductions will be sustained on audit and do not anticipate any adjustments that will result in a material change. Our policy is to accrue interest and penalties on unrecognized tax benefits and include them in federal income tax expense. We determine our deferred tax assets and liabilities in accordance with ASC 740-10, Income Taxes ("ASC 740" ) . We evaluate our deferred tax assets, including the benefit from NOLs, by jurisdiction to determine if a valuation allowance is required. Companies must assess whether a valuation allowance should be established based on the consideration of all available evidence using a “more likely than not” standard with significant weight being given to evidence that can be objectively verified. This assessment considers, among other matters, the nature, frequency and severity of cumulative losses, forecasts of future profitability, the length of statutory carry forward periods, experiences with operating losses and experiences of utilizing tax credit carry forwards and tax planning alternatives. We have no valuation allowance on our deferred tax assets and NOL carryovers at March 31, 2017 . At March 31, 2017 , we had no remaining federal NOL carry forward or un-utilized federal tax credits. At March 31, 2017 , and December 31, 2016 we had tax benefits for state NOL carry forwards of $1.4 million , net of federal benefit, that begin to expire in 2028. At March 31, 2017 , we have income taxes payable of $6.4 million , which primarily consists of current federal and state tax accruals, net of estimated tax payments and tax credits. This amount is recorded in Accrued liabilities on the accompanying unaudited balance sheet at March 31, 2017 . We conduct business and are subject to tax in the U.S. and several states. With few exceptions, we are no longer subject to U.S. federal, state, or local income tax examinations by taxing authorities for years prior to 2012. We have one state income tax examination of multiple years under audit at this time and do not expect it to have a material outcome. The tax benefits from NOLs, built-in losses, and tax credits would be materially reduced or potentially eliminated if we experience an “ownership change” as defined under Internal Revenue Code §382. Based on our analysis performed as of March 31, 2017 we do not believe that we have experienced an ownership change. As a protective measure, our stockholders held a Special Meeting of Stockholders on February 16, 2009 and approved an amendment to our Articles of Incorporation that restricts certain transfers of our common stock. The amendment is intended to help us avoid an unintended ownership change and thereby preserve the value of any tax benefit for future utilization.

SUPPLEMENTAL DISCLOSURE OF CASH

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION	3 Months Ended
	Mar. 31, 2017
Supplemental Cash Flow Elements [Abstract]
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION	SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION The following table presents certain supplemental cash flow information (in thousands): Three Months Ended March 31, 2017 2016 Interest capitalized, net $ (10,930 ) $ (8,811 ) Income taxes paid $ 10,485 $ 7,420 Non-cash operating activities: Real estate not owned increase $ 9,987 $ — Real estate acquired through notes payable $ 1,673 $ 5,358

OPERATING AND REPORTING SEGMENT

OPERATING AND REPORTING SEGMENTS	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
OPERATING AND REPORTING SEGMENTS	OPERATING AND REPORTING SEGMENTS We operate with two principal business segments: homebuilding and financial services. As defined in ASC 280-10, Segment Reporting , we have nine homebuilding operating segments. The homebuilding segments are engaged in the business of acquiring and developing land, constructing homes, marketing and selling those homes and providing warranty and customer services. We aggregate our homebuilding operating segments into reporting segments based on similar long-term economic characteristics and geographical proximity. Our current reportable homebuilding segments are as follows: West: Arizona, California and Colorado (1) Central: Texas East: Florida, Georgia, North Carolina, South Carolina and Tennessee (1) Activity for our wind-down Nevada operations is reflected in the West Region's results. Management’s evaluation of segment performance is based on segment operating income, which we define as homebuilding and land revenues less cost of home construction, commissions and other sales costs, land development and other land sales costs and other costs incurred by or allocated to each segment, including impairments. Each reportable segment follows the same accounting policies described in Note 1, “Organization and Basis of Presentation.” Operating results for each segment may not be indicative of the results for such segment had it been an independent, stand-alone entity for the periods presented. The following segment information is in thousands: Three Months Ended March 31, 2017 2016 Homebuilding revenue (1) : West $ 311,804 $ 261,046 Central 174,831 161,889 East 186,137 174,831 Consolidated total $ 672,772 $ 597,766 Homebuilding segment operating income: West $ 24,012 $ 16,063 Central 13,890 13,894 East 2,436 5,859 Total homebuilding segment operating income 40,338 35,816 Financial services segment profit 4,290 4,046 Corporate and unallocated costs (2) (8,517 ) (7,815 ) Earnings/(loss) from other unconsolidated entities, net 373 (157 ) Interest expense (825 ) (3,288 ) Other income, net 1,110 283 Net earnings before income taxes $ 36,769 $ 28,885 (1) Homebuilding revenue includes the following land closing revenue, by segment, as outlined in the table below. Three Months Ended March 31, 2017 2016 Land closing revenue: West $ 11,800 $ — Central 122 1,918 East 233 231 Total $ 12,155 $ 2,149 (2) Balance consists primarily of corporate costs and numerous shared service functions such as finance and treasury that are not allocated to the homebuilding or financial services reporting segments. At March 31, 2017 West Central East Financial Services Corporate and Unallocated Total Deposits on real estate under option or contract $ 21,757 $ 25,217 $ 31,552 $ — $ — $ 78,526 Real estate 1,137,301 639,624 735,928 — — 2,512,853 Investments in unconsolidated entities 7,339 7,856 — — 1,733 16,928 Other assets 62,978 (1) 85,600 (2) 75,021 (3) 724 123,917 (4) 348,240 Total assets $ 1,229,375 $ 758,297 $ 842,501 $ 724 $ 125,650 $ 2,956,547 (1) Balance consists primarily of cash, property and equipment and real estate not owned. (2) Balance consists primarily of development reimbursements from local municipalities and cash. (3) Balance consists primarily of goodwill (see Note 9), prepaid permits and fees to local municipalities and cash. (4) Balance consists primarily of cash and our deferred tax asset. At December 31, 2016 West Central East Financial Services Corporate and Unallocated Total Deposits on real estate under option or contract $ 25,863 $ 27,669 $ 32,024 $ — $ — $ 85,556 Real estate 1,120,038 595,485 706,540 — — 2,422,063 Investments in unconsolidated entities 7,362 7,450 — — 2,285 17,097 Other assets 45,624 94,299 (1) 93,245 (2) 812 129,995 (3) 363,975 Total assets $ 1,198,887 $ 724,903 $ 831,809 $ 812 $ 132,280 $ 2,888,691 (1) Balance consists primarily of development reimbursements from local municipalities and cash. (2) Balance consists primarily of goodwill (see Note 9), prepaid permits and fees to local municipalities and cash. (3) Balance consists primarily of cash and our deferred tax asset.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES We are involved in various routine legal and regulatory proceedings, including, without limitation, warranty claims and litigation and arbitration proceedings alleging construction defects. In general, the proceedings are incidental to our business, and most exposure is subject to and should be covered by warranty and indemnity obligations of our consultants and subcontractors. Additionally, some such claims are also covered by insurance. With respect to the majority of such legal proceedings, our ultimate legal and financial responsibility, if any, cannot be estimated with certainty and, in most cases, any potential losses related to these matters are not considered probable. Historically, most disputes regarding warranty claims are resolved without the initiation of legal proceedings. We believe there are not any pending legal or warranty matters that could have a material adverse impact upon our consolidated financial condition, results of operations or cash flows that have not been sufficiently reserved. Joint Venture Litigation From 2008 through January 2016, we were involved in litigation initiated by the lender group for a large Nevada-based land acquisition and development joint venture in which we held a 3.53% interest. We were the only builder joint venture partner to have fully performed its obligations with respect to takedowns of lots from the joint venture, having completed our first takedown in April 2007 and having tendered full performance of our second and final takedown in April 2008. The joint venture and the lender group rejected our tender of performance for our second and final takedown, and we contended, among other things, that the rejection by the joint venture and the lender group of our tender of full performance was wrongful and constituted a breach of contract and should release us of liability with respect to the takedown and extinguish or greatly reduce our exposure under all guarantees. On December 9, 2010, three of the lenders filed a petition seeking to place the venture into an involuntary bankruptcy (JP Morgan Chase Bank, N.A. v. South Edge, LLC (Case No. 10-32968-bam)). On June 6, 2011, we received a demand letter from the lenders requesting full payment of $13.2 million the lenders claimed to be owed under the springing repayment guarantee, including past-due interest and penalties. The lenders claimed that the involuntary bankruptcy filed by three of the co-lenders triggered the springing repayment guarantee. We contested the Lenders’ claim on the basis that the lenders breached their contract with us by refusing to accept the April 2008 tender of our performance, by refusing to release their lien in connection with our second and final takedown in this project, and the repayment guarantee was not properly triggered by the lenders' filing of the involuntary bankruptcy. On August 25, 2011, the U.S. District Court of Nevada entered judgments in favor of JP Morgan in a combined amount of $16.6 million , which included prejudgment interest and attorneys' fees. We paid the judgment amount in 2016, thus concluding the litigation with the lender group. We believe that four of our co-venturers in the South Edge entity (KB Home, Toll Brothers, Pardee Homes and Beazer Homes) are liable to Meritage for certain amounts that Meritage has paid pursuant to or related to the above-mentioned litigation with the lender group, and we have filed an arbitration claim against those builders to recover such amounts from them based on breach of contract, unjust enrichment, breach of the implied covenant of good faith and fair dealing, and other claims.

ORGANIZATION AND BASIS OF PRE21

ORGANIZATION AND BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation . The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These financial statements should be read in conjunction with the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2016. The consolidated financial statements include the accounts of Meritage Homes Corporation and those of our consolidated subsidiaries, partnerships and other entities in which we have a controlling financial interest, and of variable interest entities (see Note 3) in which we are deemed the primary beneficiary (collectively, “us”, “we”, “our” and “the Company”). Intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, the accompanying unaudited financial statements include all adjustments (consisting only of normal recurring entries), necessary for the fair presentation of our results for the interim periods presented. Results for interim periods are not necessarily indicative of results to be expected for the full year.
Cash and Cash Equivalents	Cash and Cash Equivalents. Liquid investments with an initial maturity of three months or less are classified as cash equivalents.
Real Estate	Real Estate. Real estate is stated at cost unless the asset is determined to be impaired, at which point the inventory is written down to fair value as required by Accounting Standards Codification (“ASC”) 360-10, Property, Plant and Equipment (“ASC 360-10”) . Inventory includes the costs of land acquisition, land development, home construction, capitalized interest, real estate taxes, capitalized direct overhead costs incurred during development and home construction that benefit the entire community, less impairments, if any. Land and development costs are typically allocated and transferred to homes under construction when construction begins. Home construction costs are accumulated on a per-home basis, while selling costs are expensed as incurred. Cost of home closings includes the specific construction costs of the home and all related allocated land acquisition, land development and other common costs (both incurred and estimated to be incurred) that are allocated based upon the total number of homes expected to be closed in each community or phase. Any changes to the estimated total development costs of a community or phase are allocated to the remaining homes in the community or phase. When a home closes, we may have incurred costs for goods and services that have not yet been paid. An accrued liability to capture such obligations is recorded in connection with the home closing and charged directly to cost of sales. We rely on certain estimates to determine our construction and land development costs. Construction and land costs are comprised of direct and allocated costs, including estimated future costs. In determining these costs, we compile project budgets that are based on a variety of assumptions, including future construction schedules and costs to be incurred. It is possible that actual results could differ from budgeted amounts for various reasons, including construction delays, labor or material shortages, increases in costs that have not yet been committed, changes in governmental requirements, or other unanticipated issues encountered during construction and development and other factors beyond our control. To address uncertainty in these budgets, we assess, update and revise project budgets on a regular basis, utilizing the most current information available to estimate construction and land costs. Typically, a community's life cycle ranges from three to five years, commencing with the acquisition of the land, continuing through the land development phase, if applicable, and concluding with the sale, construction and closing of the homes. Actual community lives will vary based on the size of the community, the sales absorption rate and whether the land purchased was raw, partially-developed or in finished status. Master-planned communities encompassing several phases and super-block land parcels may have significantly longer lives and projects involving smaller finished lot purchases may be shorter. All of our land inventory and related real estate assets are reviewed for recoverability, as our inventory is considered “long-lived” in accordance with GAAP. Impairment charges are recorded to write down an asset to its estimated fair value if the undiscounted cash flows expected to be generated by the asset are lower than its carrying amount. Our determination of fair value is based on projections and estimates. Changes in these expectations may lead to a change in the outcome of our impairment analysis, and actual results may also differ from our assumptions. Such an analysis is conducted if there is an indication of a decline in value of our land and real estate assets. The impairment of a community is allocated to each lot on a straight-line basis.
Deposits	Deposits. Deposits paid related to land options and purchase contracts are recorded and classified as Deposits on real estate under option or contract until the related land is purchased. Deposits are reclassified as a component of real estate inventory at the time the deposit is used to offset the acquisition price of the lots based on the terms of the underlying agreements. To the extent they are non-refundable, deposits are charged to expense if the land acquisition is terminated or no longer considered probable. Since our acquisition contracts typically do not require specific performance, we do not consider such contracts to be contractual obligations to purchase the land and our total exposure under such contracts is limited to the loss of the non-refundable deposits and any ancillary capitalized costs.
Goodwill	Goodwill. In accordance with ASC 350, Intangibles, Goodwill and Other ("ASC 350"), we analyze goodwill on an annual basis (or whenever indication of impairment exists) through a qualitative assessment to determine whether it is necessary to perform a two-step goodwill impairment test. ASC 350 states that an entity may first assess qualitative factors to determine whether it is necessary to perform a two-step goodwill impairment test. Such qualitative factors include: (1) macroeconomic conditions, such as a deterioration in general economic conditions, (2) industry and market considerations such as deterioration in the environment in which the entity operates, (3) cost factors such as increases in raw materials and labor costs, and (4) overall financial performance such as negative or declining cash flows or a decline in actual or planned revenue or earnings. If the qualitative analysis determines that additional impairment testing is required, the two-step impairment testing in accordance with ASC 350 would be initiated. We continually evaluate our qualitative inputs to assess whether events and circumstances have occurred that indicate the goodwill balance may not be recoverable.
Off-Balance Sheet Arrangements	Off-Balance Sheet Arrangements - Joint Ventures . We may participate in land development joint ventures as a means of accessing larger parcels of land and lot positions, expanding our market opportunities, managing our risk profile and leveraging our capital base. See Note 4 for additional discussion of our investments in unconsolidated entities . Off-Balance Sheet Arrangements - Other. In the normal course of business, we may acquire lots from various development entities pursuant to option and purchase agreements. The purchase price generally approximates the market price at the date the contract is executed (with possible future escalators). See Note 3 for additional information on off-balance sheet arrangements. Surety Bonds and Letters of Credit. We provide letters of credit in support of our obligations relating to the development of our projects and other corporate purposes. Surety bonds are generally posted in lieu of letters of credit or cash deposits. The amount of these obligations outstanding at any time varies depending on the stage and level of completion of our development activities. Bonds are generally not released until all development activities under the bond are complete. In the event a bond or letter of credit is drawn upon, we would be obligated to reimburse the issuer for any amounts advanced under the bond. We believe it is unlikely that any significant amounts of these bonds or letters of credit will be drawn upon.
Warranty Reserves	Warranty Reserves. We provide home purchasers with limited warranties against certain building defects and we have certain obligations related to those post-construction warranties for closed homes. The specific terms and conditions of these limited warranties vary by state, but overall the nature of the warranties include a complete workmanship and materials warranty typically during the first one to two years after the close of the home and a structural warranty that typically extends up to 10 years subsequent to the close of the home. With the assistance of an actuary, we have estimated these reserves for the structural warranty based on the number of homes still under warranty and historical data and trends for our communities. We also use industry data with respect to similar product types and geographic areas in markets where our experience is incomplete to draw a meaningful conclusion. We regularly review our warranty reserves and adjust them, as necessary, to reflect changes in trends as information becomes available.
Recent Accounting Pronouncements	Recent Accounting Pronouncements. In August 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (Topic 230) , ("ASU 2016-15"). ASU 2016-15 adds and clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows, reducing the existing diversity in practice that has resulted from the lack of consistent principles on this topic. ASU 2016-15 is effective for us beginning January 1, 2018. Early adoption is permitted. We are currently evaluating the impact adopting this guidance will have on classifications in our statement of cash flows. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. In addition, ASU 2016-09 permits entities to make an election to either estimate forfeitures or recognize them as they occur. ASU 2016-09 was effective for us beginning January 1, 2017, and is reflected prospectively in the March 31, 2017 provision for income taxes in the accompanying unaudited consolidated income statement. The impact of the adoption was not material to our consolidated financial statements, including our prior year cash flow, which was not revised. We continue to estimate forfeitures in calculating stock-based compensation expense and have not elected to recognize forfeitures as they occur. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02"), which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets. ASU 2016-02 will be effective for us beginning January 1, 2019, and early adoption is permitted. ASU 2016-02 requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. We are currently evaluating the impact adopting this guidance will have on our financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), (“ASU 2014-09”). ASU 2014-09 requires entities to recognize revenue that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services by applying the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 supersedes the revenue recognition requirements in ASU 605, Revenue Recognition , most industry-specific guidance throughout the industry topics of the ASC, and some cost guidance related to construction-type and production-type contracts. ASU 2014-09 is effective for us on January 1, 2018, and the guidance allows for full retrospective or modified retrospective methods of adoption. We are currently evaluating the potential impact of adopting this guidance on our consolidated financial statements. We do not believe the adoption of ASU 2014-09 will have an impact on the amount or timing of our homebuilding revenues. We are still evaluating the potential impact the adoption of ASU 2014-09 will have on the timing and recognition of certain selling costs we incur to obtain a sales contract.
Variable Interest Entities	Based on the provisions of the relevant accounting guidance, we have concluded that when we enter into a purchase or option agreement to acquire land or lots from an entity, a variable interest entity, or “VIE”, may be created. We evaluate all purchase and option agreements for land to determine whether they are a VIE. ASC 810, Consolidation , requires that for each VIE, we assess whether we are the primary beneficiary and, if so, consolidate the VIE in our financial statements and reflect such assets and liabilities as Real estate not owned. The liabilities related to consolidated VIEs are generally excluded from our debt covenant calculations. In order to determine if we are the primary beneficiary, we must first assess whether we have the ability to control the activities of the VIE that most significantly impact its economic performance. Such activities include, but are not limited to: the ability to determine the budget and scope of land development work, if any; the ability to control financing decisions for the VIE; the ability of the VIE to acquire additional land or dispose of land not under contract with Meritage; and the ability to change or amend the existing option contract with the VIE. If we are not determined to control such activities, we are not considered the primary beneficiary of the VIE. If we do have the ability to control such activities, we will continue our analysis by determining if we are also expected to absorb a potentially significant amount of the VIE’s losses or, if no party absorbs the majority of such losses, if we will benefit from a potentially significant amount of the VIE’s expected gains. In substantially all cases, creditors of the entities with which we have option agreements have no recourse against us and the maximum exposure to loss in our option agreements is limited to non-refundable option deposits and any capitalized pre-acquisition costs. Often, we are at risk for items over budget related to land development on property we have under option if we are the land developer. In these cases, we have contracted to complete development at a fixed cost for our benefit, but on behalf of the land owner, and any budget savings or shortfalls are typically borne by us. Some of our option deposits may be refundable to us if certain contractual conditions are not performed by the party selling the lots.
Fair Value Disclosures	We account for non-recurring fair value measurements of our non-financial assets and liabilities in accordance with ASC 820-10 Fair Value Measurement ("ASC 820"). This guidance defines fair value, establishes a framework for measuring fair value and addresses required disclosures about fair value measurements. This standard establishes a three-level hierarchy for fair value measurements based upon the significant inputs used to determine fair value. Observable inputs are those which are obtained from market participants external to the company while unobservable inputs are generally developed internally, utilizing management’s estimates, assumptions and specific knowledge of the assets/liabilities and related markets. The three levels are defined as follows: • Level 1 — Valuation is based on quoted prices in active markets for identical assets and liabilities. • Level 2 — Valuation is determined from quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar instruments in markets that are not active, or by model-based techniques in which all significant inputs are observable in the market. • Level 3 — Valuation is derived from model-based techniques in which at least one significant input is unobservable and based on the company’s own estimates about the assumptions that market participants would use to value the asset or liability. If the only observable inputs are from inactive markets or for transactions which the company evaluates as “distressed”, the use of Level 1 inputs should be modified by the company to properly address these factors, or the reliance of such inputs may be limited, with a greater weight attributed to Level 3 inputs.
Stock-Based Compensation	Compensation cost related to time-based restricted stock awards is measured as of the closing price on the date of grant and is expensed on a straight-line basis over the vesting period of the award. Compensation cost related to performance-based restricted stock awards is also measured as of the closing price on the date of grant but is expensed in accordance with ASC 718-10-25-20, Compensation – Stock Compensation ("ASC 718"), which requires an assessment of probability of attainment of the performance target. As our performance targets are dependent on performance over a specified measurement period, once we determine that the performance target outcome is probable, the cumulative expense is recorded immediately with the remaining expense recorded on a straight-line basis through the end of the award vesting period. Beginning with grants in 2014, a portion of the performance-based restricted stock awards granted contain market conditions as defined by ASC 718. The guidance in ASC 718 requires that compensation expense for stock awards with market conditions be expensed based on a derived grant date fair value and expensed over the service period. We engaged a third party to perform a valuation analysis on the awards containing market conditions and our associated expense with those awards is based on the derived fair value from that analysis and is being expensed straight-line over the service period of the awards.
Income Tax Policy	We determine our deferred tax assets and liabilities in accordance with ASC 740-10, Income Taxes ("ASC 740" ) . We evaluate our deferred tax assets, including the benefit from NOLs, by jurisdiction to determine if a valuation allowance is required. Companies must assess whether a valuation allowance should be established based on the consideration of all available evidence using a “more likely than not” standard with significant weight being given to evidence that can be objectively verified. This assessment considers, among other matters, the nature, frequency and severity of cumulative losses, forecasts of future profitability, the length of statutory carry forward periods, experiences with operating losses and experiences of utilizing tax credit carry forwards and tax planning alternatives.
Segment Reporting	We operate with two principal business segments: homebuilding and financial services. As defined in ASC 280-10, Segment Reporting , we have nine homebuilding operating segments. The homebuilding segments are engaged in the business of acquiring and developing land, constructing homes, marketing and selling those homes and providing warranty and customer services. We aggregate our homebuilding operating segments into reporting segments based on similar long-term economic characteristics and geographical proximity. Our current reportable homebuilding segments are as follows: West: Arizona, California and Colorado (1) Central: Texas East: Florida, Georgia, North Carolina, South Carolina and Tennessee (1) Activity for our wind-down Nevada operations is reflected in the West Region's results. Management’s evaluation of segment performance is based on segment operating income, which we define as homebuilding and land revenues less cost of home construction, commissions and other sales costs, land development and other land sales costs and other costs incurred by or allocated to each segment, including impairments. Each reportable segment follows the same accounting policies described in Note 1, “Organization and Basis of Presentation.” Operating results for each segment may not be indicative of the results for such segment had it been an independent, stand-alone entity for the periods presented.

ORGANIZATION AND BASIS OF PRE22

ORGANIZATION AND BASIS OF PRESENTATION (Tables)	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Surety Bond and Letter of Credit Obligations	The table below outlines our surety bond and letter of credit obligations (in thousands): As of March 31, 2017 December 31, 2016 Outstanding Estimated work remaining to complete Outstanding Estimated work remaining to complete Sureties: Sureties related to owned projects and lots under contract 236,764 81,245 239,246 85,706 Total Sureties $ 236,764 $ 81,245 $ 239,246 $ 85,706 Letters of Credit (“LOCs”): LOCs in lieu of deposits for contracted lots $ 5,250 N/A $ 250 N/A LOCs for land development 38,245 N/A 39,839 N/A LOCs for general corporate operations 3,750 N/A 3,750 N/A Total LOCs $ 47,245 N/A $ 43,839 N/A
Schedule of Accrued Liabilities	Accrued liabilities at March 31, 2017 and December 31, 2016 consisted of the following (in thousands): As of March 31, 2017 December 31, 2016 Accruals related to real estate development and construction activities $ 51,050 $ 53,778 Payroll and other benefits 30,660 52,941 Accrued taxes 12,143 9,637 Warranty reserves 22,477 22,660 Legal reserves (1) 875 673 Other accruals 41,461 31,163 Total $ 158,666 $ 170,852 (1) See Note 15 for additional information related to our legal reserves.
Summary of Changes in Warranty Reserves	A summary of changes in our warranty reserves follows (in thousands): Three Months Ended March 31, 2017 2016 Balance, beginning of period $ 22,660 $ 21,615 Additions to reserve from new home deliveries 3,815 3,094 Warranty claims (3,998 ) (2,842 ) Adjustments to pre-existing reserves — 441 Balance, end of period $ 22,477 $ 22,308

REAL ESTATE AND CAPITALIZED I23

REAL ESTATE AND CAPITALIZED INTEREST (Tables)	3 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
Schedule of Real Estate	Real estate consists of the following (in thousands): As of March 31, 2017 December 31, 2016 Homes under contract under construction (1) $ 617,790 $ 508,927 Unsold homes, completed and under construction (1) 395,841 431,725 Model homes (1) 149,872 147,406 Finished home sites and home sites under development (2) 1,349,350 1,334,005 Total $ 2,512,853 $ 2,422,063 (1) Includes the allocated land and land development costs associated with each lot for these homes. (2) Includes raw land, land held for development and land held for sale. Land held for development primarily reflects land and land development costs related to land where development activity is not currently underway but is expected to begin in the future. For these parcels, we may have chosen not to currently develop certain land holdings as they typically represent a portion or phases of a larger land parcel that we plan to build out over several years. We do not capitalize interest for inactive assets, and all ongoing costs of land ownership (i.e. property taxes, homeowner association dues, etc.) are expensed as incurred.
Summary of Capitalized Interest	A summary of our capitalized interest is as follows (in thousands): Three Months Ended March 31, 2017 2016 Capitalized interest, beginning of period $ 68,196 $ 61,202 Interest incurred 17,895 17,559 Interest expensed (825 ) (3,288 ) Interest amortized to cost of home and land closings (14,381 ) (11,347 ) Capitalized interest, end of period (1) $ 70,885 $ 64,126 (1) Approximately $47,000 and $130,000 of the capitalized interest is related to our joint venture investments and is a component of Investments in unconsolidated entities on our consolidated balance sheet as of March 31, 2017 and December 31, 2016 , respectively.

VARIABLE INTEREST ENTITIES AN24

VARIABLE INTEREST ENTITIES AND CONSOLIDATED REAL ESTATE NOT OWNED (Tables)	3 Months Ended
	Mar. 31, 2017
Variable Interest Entities and Consolidated Real Estate Not Owned [Abstract]
Summary of Lots Under Option	The table below presents a summary of our lots under option at March 31, 2017 (dollars in thousands): Projected Number of Lots Purchase Price Option/ Earnest Money Deposits–Cash Purchase and option contracts recorded on balance sheet as Real estate not owned 65 $ 9,987 $ 1,498 Option contracts — non-refundable deposits, committed (1) 4,903 386,834 49,858 Purchase contracts — non-refundable deposits, committed (1) 5,336 279,229 21,795 Purchase and option contracts —refundable deposits, committed 1,173 67,221 2,663 Total committed 11,477 743,271 75,814 Purchase and option contracts — refundable deposits, uncommitted (2) 8,632 280,234 4,210 Total lots under contract or option 20,109 $ 1,023,505 $ 80,024 Total purchase and option contracts not recorded on balance sheet (3) 20,044 $ 1,013,518 $ 78,526 (4) (1) Deposits are non-refundable except if certain contractual conditions are not performed by the selling party. (2) Deposits are refundable at our sole discretion. We have not completed our acquisition evaluation process and we have not internally committed to purchase these lots. (3) Except for our specific performance contracts recorded on our balance sheet as Real estate not owned, none of our option agreements require us to purchase lots. (4) Amount is reflected on our consolidated balance sheet in Deposits on real estate under option or contract as of March 31, 2017 .

INVESTMENTS IN UNCONSOLIDATED25

INVESTMENTS IN UNCONSOLIDATED ENTITIES (Tables)	3 Months Ended
	Mar. 31, 2017
Equity Method Investments and Joint Ventures [Abstract]
Summary of Condensed Financial Information Related to Unconsolidated Equity Method Joint Ventures	Summarized condensed combined financial information related to unconsolidated joint ventures that are accounted for using the equity method was as follows (in thousands): As of March 31, 2017 December 31, 2016 Assets: Cash $ 7,533 $ 7,446 Real estate 54,252 54,319 Other assets 4,166 6,461 Total assets $ 65,951 $ 68,226 Liabilities and equity: Accounts payable and other liabilities $ 5,506 $ 7,339 Notes and mortgages payable 23,332 23,000 Equity of: Meritage (1) 14,671 14,245 Other 22,442 23,642 Total liabilities and equity $ 65,951 $ 68,226 Three Months Ended March 31, 2017 2016 Revenue $ 7,599 $ 11,071 Costs and expenses (4,480 ) (4,976 ) Net earnings of unconsolidated entities $ 3,119 $ 6,095 Meritage’s share of pre-tax earnings (1) (2) $ 3,182 $ 2,635 (1) Balance represents Meritage’s interest, as reflected in the financial records of the respective joint ventures. This balance may differ from the balance reported in our consolidated financial statements due to the following reconciling items: (i) timing differences for revenue and distributions recognition, (ii) step-up basis and corresponding amortization, (iii) capitalization of interest on qualified assets, (iv) income deferrals as discussed in Note (2) below and (v) the cessation of allocation of losses from joint ventures in which we have previously written down our investment balance to zero and where we have no commitment to fund additional losses. As discussed in Note 2 to these unaudited combined financial statements, balances do not include $47,000 and $130,000 of capitalized interest that is a component of our investment balances at March 31, 2017 and December 31, 2016 , respectively. (2) Our share of pre-tax earnings is recorded in Earnings from financial services unconsolidated entities and other, net and Earnings/(loss) from other unconsolidated entities, net on our consolidated income statements and excludes joint venture profit related to lots we purchased from the joint ventures. Such profit is deferred until homes are delivered by us and title passes to a homebuyer.

LOANS PAYABLE AND OTHER BORRO26

LOANS PAYABLE AND OTHER BORROWINGS (Tables)	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Schedule of Loans Payable and Other Borrowings	Loans payable and other borrowings consist of the following (in thousands): As of March 31, 2017 December 31, 2016 Other borrowings, real estate notes payable (1) $ 15,820 $ 17,195 $540 million unsecured revolving credit facility with interest approximating LIBOR (approximately 0.98% at March 31, 2017) plus 1.75% or Prime (4.00% at March 31, 2017) plus 0.75% 60,000 15,000 Total $ 75,820 $ 32,195 (1) Reflects balance of non-recourse notes payable in connection with land purchases, with interest rates ranging from 0% to 8% .

SENIOR AND CONVERTIBLE SENIOR27

SENIOR AND CONVERTIBLE SENIOR NOTES, NET (Tables)	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Schedule of Senior and Convertible Senior Notes, Net	Senior and convertible senior notes, net consist of the following (in thousands): As of March 31, 2017 December 31, 2016 4.50% senior notes due 2018 $ 175,000 $ 175,000 7.15% senior notes due 2020. At March 31, 2017 and December 31, 2016 there was approximately $1,707 and $1,849 in net unamortized premium, respectively 301,707 301,849 7.00% senior notes due 2022 300,000 300,000 6.00% senior notes due 2025 200,000 200,000 1.875% convertible senior notes due 2032 126,500 126,500 Net debt issuance costs (7,601 ) (8,230 ) Total $ 1,095,606 $ 1,095,119

FAIR VALUE DISCLOSURES (Tables)

FAIR VALUE DISCLOSURES (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Schedule of Fair Value of Fixed-Rate Debt	The fair value of our fixed-rate debt is derived from quoted market prices by independent dealers (level 2 inputs as per the discussion above) and is as follows (in thousands): As of March 31, 2017 December 31, 2016 Aggregate Principal Estimated Fair Value Aggregate Principal Estimated Fair Value 4.50% senior notes $ 175,000 $ 178,063 $ 175,000 $ 177,625 7.15% senior notes $ 300,000 $ 328,080 $ 300,000 $ 325,500 7.00% senior notes $ 300,000 $ 336,000 $ 300,000 $ 324,750 6.00% senior notes $ 200,000 $ 208,380 $ 200,000 $ 202,500 1.875% convertible senior notes $ 126,500 $ 126,026 $ 126,500 $ 126,105

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Earnings per Common Share	Basic and diluted earnings per common share were calculated as follows (in thousands, except per share amounts): Three Months Ended March 31, 2017 2016 Basic weighted average number of shares outstanding 40,178 39,839 Effect of dilutive securities: Convertible senior notes (1) 2,176 2,176 Unvested restricted stock 454 348 Diluted average shares outstanding 42,808 42,363 Net earnings as reported $ 23,572 $ 20,969 Interest attributable to convertible senior notes, net of income taxes 387 400 Net earnings for diluted earnings per share $ 23,959 $ 21,369 Basic earnings per share $ 0.59 $ 0.53 Diluted earnings per share (1) $ 0.56 $ 0.50 Antidilutive stock not included in the calculation of diluted earnings per share 14 68 (1) In accordance with ASC 260-10, Earnings Per Share , ("ASC 260-10") we calculate the dilutive effect of convertible securities using the "if-converted" method.

ACQUISITIONS AND GOODWILL (Tabl

ACQUISITIONS AND GOODWILL (Tables)	3 Months Ended
	Mar. 31, 2017
Business Acquisitions and Goodwill [Abstract]
Summary of Changes in the Carrying Amount of Goodwill	A summary of the carrying amount of goodwill follows (in thousands): West Central East Financial Services Corporate Total Balance at December 31, 2016 $ — $ — $ 32,962 $ — $ — $ 32,962 Additions — — — — — — Impairments — — — — — — Balance at March 31, 2017 $ — $ — $ 32,962 $ — $ — $ 32,962

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	3 Months Ended
	Mar. 31, 2017
Stockholders' Equity Note [Abstract]
Summary of Changes in Shareholders' Equity	A summary of changes in stockholders’ equity is presented below (in thousands): Three Months Ended March 31, 2017 (In thousands) Number of Shares Common Stock Additional Paid-In Capital Retained Earnings Total Balance at December 31, 2016 40,031 $ 400 $ 572,506 $ 848,589 $ 1,421,495 Net earnings — — — 23,572 23,572 Exercise/vesting of stock-based awards 283 3 (3 ) — — Stock-based compensation expense — — 3,298 — 3,298 Balance at March 31, 2017 40,314 $ 403 $ 575,801 $ 872,161 $ 1,448,365 Three Months Ended March 31, 2016 (In thousands) Number of Shares Common Stock Additional Paid-In Capital Retained Earnings Total Balance at December 31, 2015 39,669 $ 397 $ 559,492 $ 699,048 $ 1,258,937 Net earnings — — — 20,969 20,969 Exercise/vesting of stock-based awards 316 3 158 — 161 Excess income tax benefit from stock-based awards — — (516 ) — (516 ) Stock-based compensation expense — — 4,758 — 4,758 Balance at March 31, 2016 39,985 $ 400 $ 563,892 $ 720,017 $ 1,284,309

STOCK BASED AND DEFERRED COMP32

STOCK BASED AND DEFERRED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Compensation Expense and Stock Award Activity	Below is a summary of compensation expense and stock award activity (dollars in thousands): Three Months Ended March 31, 2017 2016 Stock-based compensation expense $ 3,295 $ 4,758 Non-vested shares granted 416,500 493,865 Performance-based non-vested shares granted 154,120 66,698 Stock options exercised (1) — 11,200 Restricted stock awards vested (includes performance-based awards) 283,574 305,085 (1) As of December 31, 2016, we have no remaining unexercised stock options.
Summary of Additional Information Regarding Stock Plan	The following table includes additional information regarding our Plan (dollars in thousands): As of March 31, 2017 December 31, 2016 Unrecognized stock-based compensation cost $ 27,472 $ 18,528 Weighted average years expense recognition period 3.28 2.56 Total stock-based awards outstanding (1) 1,367,271 1,147,271 (1) Includes unvested restricted stock and performance-based awards (at target level) and restricted stock units.

INCOME TAXES (Tables)

INCOME TAXES (Tables)	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Provision	Components of the income tax provision are as follows (in thousands): Three Months Ended March 31, 2017 2016 Federal $ 11,573 $ 6,541 State 1,624 1,375 Total $ 13,197 $ 7,916

SUPPLEMENTAL DISCLOSURE OF CA34

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2017
Supplemental Cash Flow Elements [Abstract]
Schedule of Supplemental Cash Flow Information	The following table presents certain supplemental cash flow information (in thousands): Three Months Ended March 31, 2017 2016 Interest capitalized, net $ (10,930 ) $ (8,811 ) Income taxes paid $ 10,485 $ 7,420 Non-cash operating activities: Real estate not owned increase $ 9,987 $ — Real estate acquired through notes payable $ 1,673 $ 5,358

OPERATING AND REPORTING SEGME35

OPERATING AND REPORTING SEGMENTS (Tables)	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Schedule of Segment Information	The following segment information is in thousands: Three Months Ended March 31, 2017 2016 Homebuilding revenue (1) : West $ 311,804 $ 261,046 Central 174,831 161,889 East 186,137 174,831 Consolidated total $ 672,772 $ 597,766 Homebuilding segment operating income: West $ 24,012 $ 16,063 Central 13,890 13,894 East 2,436 5,859 Total homebuilding segment operating income 40,338 35,816 Financial services segment profit 4,290 4,046 Corporate and unallocated costs (2) (8,517 ) (7,815 ) Earnings/(loss) from other unconsolidated entities, net 373 (157 ) Interest expense (825 ) (3,288 ) Other income, net 1,110 283 Net earnings before income taxes $ 36,769 $ 28,885 (1) Homebuilding revenue includes the following land closing revenue, by segment, as outlined in the table below. Three Months Ended March 31, 2017 2016 Land closing revenue: West $ 11,800 $ — Central 122 1,918 East 233 231 Total $ 12,155 $ 2,149 (2) Balance consists primarily of corporate costs and numerous shared service functions such as finance and treasury that are not allocated to the homebuilding or financial services reporting segments.
Schedule of Segment Assets	At March 31, 2017 West Central East Financial Services Corporate and Unallocated Total Deposits on real estate under option or contract $ 21,757 $ 25,217 $ 31,552 $ — $ — $ 78,526 Real estate 1,137,301 639,624 735,928 — — 2,512,853 Investments in unconsolidated entities 7,339 7,856 — — 1,733 16,928 Other assets 62,978 (1) 85,600 (2) 75,021 (3) 724 123,917 (4) 348,240 Total assets $ 1,229,375 $ 758,297 $ 842,501 $ 724 $ 125,650 $ 2,956,547 (1) Balance consists primarily of cash, property and equipment and real estate not owned. (2) Balance consists primarily of development reimbursements from local municipalities and cash. (3) Balance consists primarily of goodwill (see Note 9), prepaid permits and fees to local municipalities and cash. (4) Balance consists primarily of cash and our deferred tax asset. At December 31, 2016 West Central East Financial Services Corporate and Unallocated Total Deposits on real estate under option or contract $ 25,863 $ 27,669 $ 32,024 $ — $ — $ 85,556 Real estate 1,120,038 595,485 706,540 — — 2,422,063 Investments in unconsolidated entities 7,362 7,450 — — 2,285 17,097 Other assets 45,624 94,299 (1) 93,245 (2) 812 129,995 (3) 363,975 Total assets $ 1,198,887 $ 724,903 $ 831,809 $ 812 $ 132,280 $ 2,888,691 (1) Balance consists primarily of development reimbursements from local municipalities and cash. (2) Balance consists primarily of goodwill (see Note 9), prepaid permits and fees to local municipalities and cash. (3) Balance consists primarily of cash and our deferred tax asset.

ORGANIZATION AND BASIS OF PRE36

ORGANIZATION AND BASIS OF PRESENTATION - Narrative (Details)	3 Months Ended
	Mar. 31, 2017USD ($)stateregioncommunity	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)
Organization and Presentation [Line Items]
Entity operations in number of regions | region	3
Number of states in regions | state	9
Number of communities in which homes are sold | community	256
Deposits on real estate under option or contract	$ 78,526,000		$ 85,556,000
Adjustments to warranty reserve balance	0	$ 441,000
Cash and cash equivalents [Member]
Organization and Presentation [Line Items]
Amounts in transit from title companies for home closings	37,500,000		$ 75,300,000
Minimum [Member]
Organization and Presentation [Line Items]
Base price per house for sale range	$ 168,000
Community life cycle range	3 years
Minimum [Member] | Non-Structural Items [Member]
Organization and Presentation [Line Items]
Warranty period following home closings	1 year
Maximum [Member]
Organization and Presentation [Line Items]
Base price per house for sale range	$ 1,400,000
Community life cycle range	5 years
Maximum [Member] | Non-Structural Items [Member]
Organization and Presentation [Line Items]
Warranty period following home closings	2 years
Maximum [Member] | Structural [Member]
Organization and Presentation [Line Items]
Warranty period following home closings	10 years

ORGANIZATION AND BASIS OF PRE37

ORGANIZATION AND BASIS OF PRESENTATION - Schedule of Surety Bond and Letter of Credit Obligations (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Sureties related to owned projects and lots under contract [Member]
Loss Contingencies [Line Items]
Outstanding	$ 236,764	$ 239,246
Estimated work remaining to complete	81,245	85,706
Sureties [Member]
Loss Contingencies [Line Items]
Outstanding	236,764	239,246
Estimated work remaining to complete	81,245	85,706
LOCs in lieu of deposits for contracted lots [Member]
Loss Contingencies [Line Items]
Letters of credit outstanding	5,250	250
LOCs for land development [Member]
Loss Contingencies [Line Items]
Letters of credit outstanding	38,245	39,839
LOCs for general corporate operations [Member]
Loss Contingencies [Line Items]
Letters of credit outstanding	3,750	3,750
Revolving credit facility [Member] | Line of Credit [Member]
Loss Contingencies [Line Items]
Letters of credit outstanding	$ 47,245	$ 43,839

ORGANIZATION AND BASIS OF PRE38

ORGANIZATION AND BASIS OF PRESENTATION - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands		Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Accrued Liabilities
Accruals related to real estate development and construction activities		$ 51,050	$ 53,778
Payroll and other benefits		30,660	52,941
Accrued taxes		12,143	9,637
Warranty reserves		22,477	22,660	$ 22,308	$ 21,615
Legal reserves	[1]	875	673
Other accruals		41,461	31,163
Total		$ 158,666	$ 170,852
[1]	See Note 15 for additional information related to our legal reserves.

ORGANIZATION AND BASIS OF PRE39

ORGANIZATION AND BASIS OF PRESENTATION - Summary of Changes in Warranty Reserves (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Warranty Reserves
Balance, beginning of period	$ 22,660,000	$ 21,615,000
Additions to reserve from new home deliveries	3,815,000	3,094,000
Warranty claims	(3,998,000)	(2,842,000)
Adjustments to pre-existing reserves	0	441,000
Balance, end of period	$ 22,477,000	$ 22,308,000

REAL ESTATE AND CAPITALIZED I40

REAL ESTATE AND CAPITALIZED INTEREST - Schedule of Real Estate (Details) - USD ($) $ in Thousands		Mar. 31, 2017	Dec. 31, 2016
Real Estate Properties
Homes under contract under construction	[1]	$ 617,790	$ 508,927
Unsold homes completed and under construction	[1]	395,841	431,725
Model homes	[1]	149,872	147,406
Finished home sites and home sites under development	[2]	1,349,350	1,334,005
Real estate		$ 2,512,853	$ 2,422,063
[1]	Includes the allocated land and land development costs associated with each lot for these homes.
[2]	Includes raw land, land held for development and land held for sale. Land held for development primarily reflects land and land development costs related to land where development activity is not currently underway but is expected to begin in the future. For these parcels, we may have chosen not to currently develop certain land holdings as they typically represent a portion or phases of a larger land parcel that we plan to build out over several years. We do not capitalize interest for inactive assets, and all ongoing costs of land ownership (i.e. property taxes, homeowner association dues, etc.) are expensed as incurred.

REAL ESTATE AND CAPITALIZED I41

REAL ESTATE AND CAPITALIZED INTEREST - Summary of Capitalized Interest (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Summary of capitalized interest
Capitalized interest, beginning of period		$ 68,196	$ 61,202
Interest incurred		17,895	17,559
Interest expensed		(825)	(3,288)
Interest amortized to cost of home and land closings		(14,381)	(11,347)
Capitalized interest, end of period	[1]	70,885	$ 64,126
Equity-method land ventures [Member]
Summary of capitalized interest
Capitalized interest, beginning of period		130
Capitalized interest, end of period		$ 47
[1]	Approximately $47,000 and $130,000 of the capitalized interest is related to our joint venture investments and is a component of Investments in unconsolidated entities on our consolidated balance sheet as of March 31, 2017 and December 31, 2016, respectively.

VARIABLE INTEREST ENTITIES AN42

VARIABLE INTEREST ENTITIES AND CONSOLIDATED REAL ESTATE NOT OWNED - Summary of Lots Under Option (Details) $ in Thousands	Mar. 31, 2017USD ($)lot
Projected Number of Lots
Purchase and option contracts recorded on balance sheet as Real estate not owned | lot	65
Option contracts not recorded on balance sheet — non-refundable deposits, committed | lot	4,903	[1]
Purchase contracts not recorded on balance sheet — non-refundable deposits, committed | lot	5,336	[1]
Purchase contracts not recorded on balance sheet —refundable deposits, committed | lot	1,173
Total committed (on and off balance sheet) | lot	11,477
Total purchase and option contracts not recorded on balance sheet — refundable deposits, uncommitted | lot	8,632	[2]
Total lots under contract or option | lot	20,109
Total purchase and option contracts not recorded on balance sheet | lot	20,044	[3]
Purchase Price
Purchase and option contracts recorded on balance sheet as Real estate not owned	$ 9,987
Option contracts not recorded on balance sheet — non-refundable deposits, committed	386,834	[1]
Purchase contracts not recorded on balance sheet — non-refundable deposits, committed	279,229	[1]
Purchase contracts not recorded on balance sheet —refundable deposits, committed	67,221
Total committed (on and off balance sheet)	743,271
Total purchase and option contracts not recorded on balance sheet — refundable deposits, uncommitted	280,234	[2]
Total lots under contract or option	1,023,505
Total purchase and option contracts not recorded on balance sheet	1,013,518	[3]
Option/ Earnest Money Deposits–Cash
Purchase and option contracts recorded on balance sheet as Real estate not owned	1,498
Option contracts not recorded on balance sheet — non-refundable deposits, committed	49,858	[1]
Purchase contracts not recorded on balance sheet — non-refundable deposits, committed	21,795	[1]
Purchase contracts not recorded on balance sheet —refundable deposits, committed	2,663
Total committed (on and off balance sheet)	75,814
Total purchase and option contracts not recorded on balance sheet — refundable deposits, uncommitted	4,210	[2]
Total lots under contract or option	80,024
Total purchase and option contracts not recorded on balance sheet	$ 78,526	[3],[4]
[1]	Deposits are non-refundable except if certain contractual conditions are not performed by the selling party.
[2]	Deposits are refundable at our sole discretion. We have not completed our acquisition evaluation process and we have not internally committed to purchase these lots.
[3]	Except for our specific performance contracts recorded on our balance sheet as Real estate not owned, none of our option agreements require us to purchase lots.
[4]	Amount is reflected on our consolidated balance sheet in Deposits on real estate under option or contract as of March 31, 2017.

INVESTMENTS IN UNCONSOLIDATED43

INVESTMENTS IN UNCONSOLIDATED ENTITIES - Narrative (Details) $ in Thousands	Mar. 31, 2017USD ($)joint_venture		Dec. 31, 2016USD ($)	Mar. 31, 2016USD ($)	[1]	Dec. 31, 2015USD ($)
Schedule of Equity Method Investments [Line Items]
Investments in unconsolidated entities	$ 16,928		$ 17,097
Capitalized interest	$ 70,885	[1]	68,196	$ 64,126		$ 61,202
Equity-method land ventures [Member]
Schedule of Equity Method Investments [Line Items]
Number of joint ventures | joint_venture	3
Capitalized interest	$ 47		130
Mortgage joint ventures [Member]
Schedule of Equity Method Investments [Line Items]
Number of joint ventures | joint_venture	1
Investments in unconsolidated entities	$ 1,700		$ 2,300
[1]	Approximately $47,000 and $130,000 of the capitalized interest is related to our joint venture investments and is a component of Investments in unconsolidated entities on our consolidated balance sheet as of March 31, 2017 and December 31, 2016, respectively.

INVESTMENTS IN UNCONSOLIDATED44

INVESTMENTS IN UNCONSOLIDATED ENTITIES - Summary of Condensed Financial Information Related to Unconsolidated Equity Method Joint Ventures, Assets Liabilities and Equity (Details) - USD ($) $ in Thousands		Mar. 31, 2017	Dec. 31, 2016
Assets:
Cash		$ 7,533	$ 7,446
Real estate		54,252	54,319
Other assets		4,166	6,461
Total assets		65,951	68,226
Liabilities and equity:
Accounts payable and other liabilities		5,506	7,339
Notes and mortgages payable		23,332	23,000
Equity of:
Meritage	[1]	14,671	14,245
Other		22,442	23,642
Total liabilities and equity		$ 65,951	$ 68,226
[1]	Balance represents Meritage’s interest, as reflected in the financial records of the respective joint ventures. This balance may differ from the balance reported in our consolidated financial statements due to the following reconciling items: (i) timing differences for revenue and distributions recognition, (ii) step-up basis and corresponding amortization, (iii) capitalization of interest on qualified assets, (iv) income deferrals as discussed in Note (2) below and (v) the cessation of allocation of losses from joint ventures in which we have previously written down our investment balance to zero and where we have no commitment to fund additional losses. As discussed in Note 2 to these unaudited combined financial statements, balances do not include $47,000 and $130,000 of capitalized interest that is a component of our investment balances at March 31, 2017 and December 31, 2016, respectively.

INVESTMENTS IN UNCONSOLIDATED45

INVESTMENTS IN UNCONSOLIDATED ENTITIES - Summary of Condensed Financial Information Related to Unconsolidated Equity Method Joint Ventures, Revenues and Expenses (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Financial information related to unconsolidated joint ventures, Operations
Revenue		$ 7,599	$ 11,071
Costs and expenses		(4,480)	(4,976)
Net earnings of unconsolidated entities		3,119	6,095
Meritage’s share of pre-tax earnings	[1],[2]	$ 3,182	$ 2,635
[1]	Balance represents Meritage’s interest, as reflected in the financial records of the respective joint ventures. This balance may differ from the balance reported in our consolidated financial statements due to the following reconciling items: (i) timing differences for revenue and distributions recognition, (ii) step-up basis and corresponding amortization, (iii) capitalization of interest on qualified assets, (iv) income deferrals as discussed in Note (2) below and (v) the cessation of allocation of losses from joint ventures in which we have previously written down our investment balance to zero and where we have no commitment to fund additional losses. As discussed in Note 2 to these unaudited combined financial statements, balances do not include $47,000 and $130,000 of capitalized interest that is a component of our investment balances at March 31, 2017 and December 31, 2016, respectively.
[2]	Our share of pre-tax earnings is recorded in Earnings from financial services unconsolidated entities and other, net and Earnings/(loss) from other unconsolidated entities, net on our consolidated income statements and excludes joint venture profit related to lots we purchased from the joint ventures. Such profit is deferred until homes are delivered by us and title passes to a homebuyer.

LOANS PAYABLE AND OTHER BORRO46

LOANS PAYABLE AND OTHER BORROWINGS - Schedule of Loans Payable and Other Borrowings (Details) - USD ($)		3 Months Ended
		Mar. 31, 2017	Dec. 31, 2016
Revolving credit facility [Member] | London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Description of variable rate basis		LIBOR
Base rate		0.98%
Basis spread on variable rate		1.75%
Revolving credit facility [Member] | Prime Rate [Member]
Line of Credit Facility [Line Items]
Description of variable rate basis		Prime
Base rate		4.00%
Basis spread on variable rate		0.75%
Other borrowings, real estate notes payable [Member]
Line of Credit Facility [Line Items]
Loans payable and other borrowings	[1]	$ 15,820,000	$ 17,195,000
Unsecured revolving credit facility [Member] | Revolving credit facility [Member]
Line of Credit Facility [Line Items]
Loans payable and other borrowings		60,000,000	15,000,000
Current borrowing capacity		540,000,000
Loans payable and other borrowings total [Member]
Line of Credit Facility [Line Items]
Loans payable and other borrowings		$ 75,820,000	$ 32,195,000
Minimum [Member] | Other borrowings, real estate notes payable [Member]
Line of Credit Facility [Line Items]
Debt instrument, stated rate (percent)		0.00%
Maximum [Member] | Other borrowings, real estate notes payable [Member]
Line of Credit Facility [Line Items]
Debt instrument, stated rate (percent)		8.00%
[1]	Reflects balance of non-recourse notes payable in connection with land purchases, with interest rates ranging from 0% to 8%.

LOANS PAYABLE AND OTHER BORRO47

LOANS PAYABLE AND OTHER BORROWINGS - Narrative (Details)	3 Months Ended
	Mar. 31, 2017USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)
Line of Credit Facility [Line Items]
Gross borrowings	$ 160,000,000	$ 0
Gross repayments	115,000,000	$ 0
Revolving credit facility [Member] | Line of Credit [Member]
Line of Credit Facility [Line Items]
Current borrowing capacity	540,000,000
Maximum borrowing capacity	600,000,000
Minimum tangible net worth	$ 670,300,000
Leverage ratio	0.6
Interest coverage ratio	1.5
Outstanding borrowings under Credit Facility	$ 60,000,000		$ 15,000,000
Total LOCs	47,245,000		$ 43,839,000
Remaining borrowing capacity	432,800,000
Revolving credit facility [Member] | Line of Credit [Member] | Revolving Credit Facility Maturing July 2019 [Member]
Line of Credit Facility [Line Items]
Current borrowing capacity	$ 60,000,000

SENIOR AND CONVERTIBLE SENIOR48

SENIOR AND CONVERTIBLE SENIOR NOTES, NET - Schedule of Senior and Convertible Senior Notes, Net (Details) - Senior Notes [Member] - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Net debt issuance costs	$ (7,601)	$ (8,230)
Senior and convertible senior notes, net	1,095,606	1,095,119
4.50% senior notes due 2018 [Member]
Debt Instrument [Line Items]
Senior and convertible senior notes, gross	$ 175,000	$ 175,000
Debt instrument, stated rate (percent)	4.50%	4.50%
7.15% senior notes due 2020 [Member]
Debt Instrument [Line Items]
Senior and convertible senior notes, gross	$ 301,707	$ 301,849
Debt instrument, stated rate (percent)	7.15%	7.15%
Unamortized premium	$ 1,707	$ 1,849
7.00% senior notes due 2022 [Member]
Debt Instrument [Line Items]
Senior and convertible senior notes, gross	$ 300,000	$ 300,000
Debt instrument, stated rate (percent)	7.00%	7.00%
6.00% senior notes due 2025 [Member]
Debt Instrument [Line Items]
Senior and convertible senior notes, gross	$ 200,000	$ 200,000
Debt instrument, stated rate (percent)	6.00%	6.00%
1.875% convertible senior notes due 2032 [Member]
Debt Instrument [Line Items]
Senior and convertible senior notes, gross	$ 126,500	$ 126,500
Debt instrument, stated rate (percent)	1.875%	1.875%

SENIOR AND CONVERTIBLE SENIOR49

SENIOR AND CONVERTIBLE SENIOR NOTES, NET - Narrative (Details) - Senior Notes [Member] - 1.875% convertible senior notes due 2032 [Member]	Sep. 18, 2012$ / shares
Debt Instrument [Line Items]
Debt instrument, convertible, conversion ratio	0.0171985000
Debt instrument, convertible, conversion price (in dollars per share)	$ 58.14
Debt instrument, convertible, conversion premium	47.50%
Debt instrument, percentage of principal amount due to note-holders	100.00%

FAIR VALUE DISCLOSURES - Schedu

FAIR VALUE DISCLOSURES - Schedule of Fair Value of Fixed-Rate Debt (Details) - Senior Notes [Member] - USD ($)	Mar. 31, 2017	Dec. 31, 2016
4.50% senior notes due 2018 [Member]
Fair value of fixed-rate debt
Debt instrument, stated rate (percent)	4.50%	4.50%
4.50% senior notes due 2018 [Member] | Level 2 [Member]
Debt Instrument [Line Items]
Aggregate Principal	$ 175,000,000	$ 175,000,000
Fair value of fixed-rate debt
Estimated Fair Value	$ 178,063,000	$ 177,625,000
7.15% senior notes due 2020 [Member]
Fair value of fixed-rate debt
Debt instrument, stated rate (percent)	7.15%	7.15%
7.15% senior notes due 2020 [Member] | Level 2 [Member]
Debt Instrument [Line Items]
Aggregate Principal	$ 300,000,000	$ 300,000,000
Fair value of fixed-rate debt
Estimated Fair Value	$ 328,080,000	$ 325,500,000
7.00% senior notes due 2022 [Member]
Fair value of fixed-rate debt
Debt instrument, stated rate (percent)	7.00%	7.00%
7.00% senior notes due 2022 [Member] | Level 2 [Member]
Debt Instrument [Line Items]
Aggregate Principal	$ 300,000,000	$ 300,000,000
Fair value of fixed-rate debt
Estimated Fair Value	$ 336,000,000	$ 324,750,000
6.00% senior notes due 2025 [Member]
Fair value of fixed-rate debt
Debt instrument, stated rate (percent)	6.00%	6.00%
6.00% senior notes due 2025 [Member] | Level 2 [Member]
Debt Instrument [Line Items]
Aggregate Principal	$ 200,000,000	$ 200,000,000
Fair value of fixed-rate debt
Estimated Fair Value	$ 208,380,000	$ 202,500,000
1.875% convertible senior notes due 2032 [Member]
Fair value of fixed-rate debt
Debt instrument, stated rate (percent)	1.875%	1.875%
1.875% convertible senior notes due 2032 [Member] | Level 2 [Member]
Debt Instrument [Line Items]
Aggregate Principal	$ 126,500,000	$ 126,500,000
Fair value of fixed-rate debt
Estimated Fair Value	$ 126,026,000	$ 126,105,000

EARNINGS PER SHARE - Schedule o

EARNINGS PER SHARE - Schedule of Basic and Diluted Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Basic and Diluted (Loss)/Earnings Per Common Share
Basic weighted average number of shares outstanding		40,178	39,839
Effect of dilutive securities:
Convertible debt	[1]	2,176	2,176
Stock options and unvested restricted stock		454	348
Diluted average shares outstanding		42,808	42,363
Net earnings as reported (in dollars)		$ 23,572	$ 20,969
Interest attributable to convertible senior notes, net of income taxes (in dollars)		387	400
Net earnings for diluted earnings per share (in dollars)		$ 23,959	$ 21,369
Basic earnings per share (in dollars per share)		$ 0.59	$ 0.53
Diluted earnings per share (in dollars per share)	[1]	$ 0.56	$ 0.50
Antidilutive stock options not included in the calculation of diluted earnings per share		14	68
[1]	In accordance with ASC 260-10, Earnings Per Share, ("ASC 260-10") we calculate the dilutive effect of convertible securities using the "if-converted" method.

ACQUISITIONS AND GOODWILL - Nar

ACQUISITIONS AND GOODWILL - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Business Acquisitions and Goodwill [Abstract]
Goodwill	$ 32,962	$ 32,962

ACQUISITIONS AND GOODWILL - Sum

ACQUISITIONS AND GOODWILL - Summary of Changes in the Carrying Amount of Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 32,962
Additions	0
Impairments	0
Ending balance	32,962
Operating Segments [Member] | Financial Services [Member]
Goodwill [Roll Forward]
Beginning balance	0
Additions	0
Impairments	0
Ending balance	0
Operating Segments [Member] | Reportable Subsegments [Member] | Homebuilding [Member] | West [Member]
Goodwill [Roll Forward]
Beginning balance	0
Additions	0
Impairments	0
Ending balance	0
Operating Segments [Member] | Reportable Subsegments [Member] | Homebuilding [Member] | Central [Member]
Goodwill [Roll Forward]
Beginning balance	0
Additions	0
Impairments	0
Ending balance	0
Operating Segments [Member] | Reportable Subsegments [Member] | Homebuilding [Member] | East [Member]
Goodwill [Roll Forward]
Beginning balance	32,962
Additions	0
Impairments	0
Ending balance	32,962
Corporate [Member]
Goodwill [Roll Forward]
Beginning balance	0
Additions	0
Impairments	0
Ending balance	$ 0

STOCKHOLDERS' EQUITY - Summary

STOCKHOLDERS' EQUITY - Summary of Changes in Shareholders' Equity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	40,030,518
Beginning balance	$ 1,421,495	$ 1,258,937
Net earnings	23,572	20,969
Exercise/vesting of stock-based awards	0	161
Excess income tax provision from stock-based awards		(516)
Stock-based compensation expense	$ 3,298	4,758
Ending balance (in shares)	40,314,092
Ending balance	$ 1,448,365	$ 1,284,309
Common Stock [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	40,031,000	39,669,000
Beginning balance	$ 400	$ 397
Exercise/vesting of stock-based awards (in shares)	283,000	316,000
Exercise/vesting of stock-based awards	$ 3	$ 3
Ending balance (in shares)	40,314,000	39,985,000
Ending balance	$ 403	$ 400
Additional Paid-in Capital [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	572,506	559,492
Exercise/vesting of stock-based awards	(3)	158
Excess income tax provision from stock-based awards		(516)
Stock-based compensation expense	3,298	4,758
Ending balance	575,801	563,892
Retained Earnings [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	848,589	699,048
Net earnings	23,572	20,969
Ending balance	$ 872,161	$ 720,017

STOCK BASED AND DEFERRED COMP55

STOCK BASED AND DEFERRED COMPENSATION - Narrative (Details)	3 Months Ended
	Mar. 31, 2017shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock authorized under stock compensation plan (up to) (in shares)	5,350,000
Remaining shares available for grant (in shares)	1,057,842
Employees [Member] | Non-vested stock awards [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for non-vested stock awards and stock options	5 years
Senior executive officers and non-employee directors [Member] | Non-vested stock awards and performance-based awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for non-vested stock awards and stock options	3 years

STOCK BASED AND DEFERRED COMP56

STOCK BASED AND DEFERRED COMPENSATION - Summary of Compensation Expense and Stock Award Activity (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Summary of compensation expense and stock award activity
Stock-based compensation expense (in dollars)		$ 3,295	$ 4,758
Stock options exercised (in shares)	[1]	0	11,200
Restricted Stock [Member]
Summary of compensation expense and stock award activity
Restricted stock awards vested (includes performance-based awards) (in shares)		283,574	305,085
Non-vested shares [Member]
Summary of compensation expense and stock award activity
Non-vested shares granted (in shares)		416,500	493,865
Performance-based non-vested shares [Member]
Summary of compensation expense and stock award activity
Non-vested shares granted (in shares)		154,120	66,698
[1]	As of December 31, 2016, we have no remaining unexercised stock options.

STOCK BASED AND DEFERRED COMP57

STOCK BASED AND DEFERRED COMPENSATION - Summary of Additional Information Regarding Stock Plan (Details) - USD ($) $ in Thousands		3 Months Ended	12 Months Ended
		Mar. 31, 2017	Dec. 31, 2016
Summary of stock based compensation agreements
Unrecognized stock-based compensation cost		$ 27,472	$ 18,528
Weighted average years expense recognition period		3 years 3 months 11 days	2 years 6 months 22 days
Total stock-based awards outstanding (in shares)	[1]	1,367,271	1,147,271
[1]	Includes unvested restricted stock and performance-based awards (at target level) and restricted stock units.

INCOME TAXES - Schedule of Comp

INCOME TAXES - Schedule of Components of Income Tax Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Current Taxes:
Federal	$ 11,573	$ 6,541
State	1,624	1,375
Total	$ 13,197	$ 7,916

INCOME TAXES - Narrative (Detai

INCOME TAXES - Narrative (Details)	3 Months Ended
	Mar. 31, 2017USD ($)examination	Mar. 31, 2016	Dec. 31, 2016USD ($)
Income Taxes (Textual) [Abstract]
Effective tax rate	35.90%	27.40%
Unrecognized tax benefits	$ 0		$ 0
Deferred tax assets, valuation allowance	0
NOL carryover, valuation allowance	0
Accrued liabilities [Member]
Income Taxes (Textual) [Abstract]
Income taxes payable	6,400,000
Federal [Member]
Income Taxes (Textual) [Abstract]
Tax credits	0
NOL carryforwards	0
State [Member]
Income Taxes (Textual) [Abstract]
NOL carryforwards	$ 1,400,000		$ 1,400,000
Number of income tax examinations pending | examination	1

SUPPLEMENTAL DISCLOSURE OF CA60

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash paid during the period for:
Interest capitalized, net	$ (10,930)	$ (8,811)
Income taxes paid	10,485	7,420
Non-cash operating activities:
Real estate not owned increase	9,987	0
Real estate acquired through notes payable	$ 1,673	$ 5,358

OPERATING AND REPORTING SEGME61

OPERATING AND REPORTING SEGMENTS - Narrative (Details)	3 Months Ended
	Mar. 31, 2017segmentoperating_segment
Segment Reporting [Abstract]
Number of business segments | segment	2
Number of operating segments | operating_segment	9

OPERATING AND REPORTING SEGME62

OPERATING AND REPORTING SEGMENTS - Schedule of Segment Information (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Homebuilding revenue:
Revenue		$ 672,772	$ 597,766
Homebuilding segment operating income:
Corporate and unallocated costs		(29,622)	(29,618)
Earnings/(loss) from other unconsolidated entities, net		373	(157)
Interest expense		(825)	(3,288)
Other income, net		1,110	283
Earnings before income taxes		36,769	28,885
Operating Segments [Member] | Homebuilding [Member]
Homebuilding revenue:
Revenue	[1]	672,772	597,766
Homebuilding segment operating income:
Operating Income		40,338	35,816
Operating Segments [Member] | Financial Services [Member]
Homebuilding segment operating income:
Operating Income		4,290	4,046
Operating Segments [Member] | Reportable Subsegments [Member] | Homebuilding [Member] | West [Member]
Homebuilding revenue:
Revenue	[1]	311,804	261,046
Homebuilding segment operating income:
Operating Income		24,012	16,063
Operating Segments [Member] | Reportable Subsegments [Member] | Homebuilding [Member] | Central [Member]
Homebuilding revenue:
Revenue	[1]	174,831	161,889
Homebuilding segment operating income:
Operating Income		13,890	13,894
Operating Segments [Member] | Reportable Subsegments [Member] | Homebuilding [Member] | East [Member]
Homebuilding revenue:
Revenue	[1]	186,137	174,831
Homebuilding segment operating income:
Operating Income		2,436	5,859
Corporate and Unallocated [Member]
Homebuilding segment operating income:
Corporate and unallocated costs	[2]	(8,517)	(7,815)
Segment Reconciling Items [Member]
Homebuilding segment operating income:
Earnings/(loss) from other unconsolidated entities, net		373	(157)
Interest expense		(825)	(3,288)
Other income, net		$ 1,110	$ 283
[1]	Homebuilding revenue includes the following land closing revenue, by segment, as outlined in the table below. Three Months Ended March 31, 2017 2016Land closing revenue: West$11,800 $—Central122 1,918East233 231Total$12,155 $2,149
[2]	Balance consists primarily of corporate costs and numerous shared service functions such as finance and treasury that are not allocated to the homebuilding or financial services reporting segments.

OPERATING AND REPORTING SEGME63

OPERATING AND REPORTING SEGMENTS - Schedule of Segment Information, Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Segment Reporting Information [Line Items]
Land closing revenue	$ 12,155	$ 2,149
Operating Segments [Member] | Homebuilding [Member]
Segment Reporting Information [Line Items]
Land closing revenue	12,155	2,149
Operating Segments [Member] | Reportable Subsegments [Member] | Homebuilding [Member] | West [Member]
Segment Reporting Information [Line Items]
Land closing revenue	11,800	0
Operating Segments [Member] | Reportable Subsegments [Member] | Homebuilding [Member] | Central [Member]
Segment Reporting Information [Line Items]
Land closing revenue	122	1,918
Operating Segments [Member] | Reportable Subsegments [Member] | Homebuilding [Member] | East [Member]
Segment Reporting Information [Line Items]
Land closing revenue	$ 233	$ 231

OPERATING AND REPORTING SEGME64

OPERATING AND REPORTING SEGMENTS - Schedule of Segment Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2017		Dec. 31, 2016
Segment Reporting Information [Line Items]
Deposits on real estate under option or contract	$ 78,526		$ 85,556
Real estate	2,512,853		2,422,063
Investments in unconsolidated entities	16,928		17,097
Other assets	348,240		363,975
Total assets	2,956,547		2,888,691
Operating Segments [Member] | Financial Services [Member]
Segment Reporting Information [Line Items]
Deposits on real estate under option or contract	0		0
Real estate	0		0
Investments in unconsolidated entities	0		0
Other assets	724		812
Total assets	724		812
Operating Segments [Member] | Reportable Subsegments [Member] | Homebuilding [Member] | West [Member]
Segment Reporting Information [Line Items]
Deposits on real estate under option or contract	21,757		25,863
Real estate	1,137,301		1,120,038
Investments in unconsolidated entities	7,339		7,362
Other assets	62,978	[1]	45,624
Total assets	1,229,375		1,198,887
Operating Segments [Member] | Reportable Subsegments [Member] | Homebuilding [Member] | Central [Member]
Segment Reporting Information [Line Items]
Deposits on real estate under option or contract	25,217		27,669
Real estate	639,624		595,485
Investments in unconsolidated entities	7,856		7,450
Other assets	85,600	[2]	94,299	[3]
Total assets	758,297		724,903
Operating Segments [Member] | Reportable Subsegments [Member] | Homebuilding [Member] | East [Member]
Segment Reporting Information [Line Items]
Deposits on real estate under option or contract	31,552		32,024
Real estate	735,928		706,540
Investments in unconsolidated entities	0		0
Other assets	75,021	[4]	93,245	[5]
Total assets	842,501		831,809
Corporate and Unallocated [Member]
Segment Reporting Information [Line Items]
Deposits on real estate under option or contract	0		0
Real estate	0		0
Investments in unconsolidated entities	1,733		2,285
Other assets	123,917	[6]	129,995	[7]
Total assets	$ 125,650		$ 132,280
[1]	Balance consists primarily of cash, property and equipment and real estate not owned.
[2]	Balance consists primarily of development reimbursements from local municipalities and cash.
[3]	Balance consists primarily of development reimbursements from local municipalities and cash.
[4]	Balance consists primarily of goodwill (see Note 9), prepaid permits and fees to local municipalities and cash.
[5]	Balance consists primarily of goodwill (see Note 9), prepaid permits and fees to local municipalities and cash.
[6]	Balance consists primarily of cash and our deferred tax asset.
[7]	Balance consists primarily of cash and our deferred tax asset.

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Millions	Jun. 06, 2011USD ($)	Dec. 09, 2010lender	Mar. 31, 2017joint_venture	Jan. 31, 2016USD ($)
South Edge [Member]
Loss Contingencies [Line Items]
Number of co-venturers liable to Meritage | joint_venture			4
JP Morgan Chase Bank N.A. v. South Edge LLC, Case No. 10-32968-bam [Member] | Pending litigation [Member]
Loss Contingencies [Line Items]
Number of lenders filing petition for involuntary bankruptcy | lender		3
Amount requested in demand for arbitration related to alleged breaches	$ 13.2
Litigation judgment amount with interest				$ 16.6
South Edge Guarantee [Member]
Loss Contingencies [Line Items]
Interest in joint venture			3.53%