Meritage Homes (MTH) 10-K 12 Feb 21 2020 FY Annual report Financial data

COVER PAGE

COVER PAGE - USD ($) $ in Billions	12 Months Ended
	Dec. 31, 2020	Feb. 08, 2021	Jun. 30, 2020
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2020
Document Transition Report	false
Entity File Number	1-9977
Entity Registrant Name	Meritage Homes Corporation
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	86-0611231
Entity Address, Address Line One	8800 E. Raintree Drive
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	Scottsdale
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85260
City Area Code	480
Local Phone Number	515-8100
Title of 12(b) Security	Common Stock $.01 par value
Trading Symbol	MTH
Security Exchange Name	NYSE
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 2.8
Entity Common Stock, Shares Outstanding		37,512,127
Entity Central Index Key	0000833079
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Assets
Cash and cash equivalents	$ 745,621	$ 319,466
Other receivables	98,573	88,492
Real estate	2,778,039	2,744,361
Deposits on real estate under option or contract	59,534	50,901
Investments in unconsolidated entities	4,350	4,443
Property and equipment, net	38,933	50,606
Deferred tax assets, net	36,040	25,917
Prepaids, other assets and goodwill	103,308	114,063
Total assets	3,864,398	3,398,249
Liabilities
Accounts payable	175,250	155,024
Accrued liabilities	296,121	226,008
Home sale deposits	25,074	24,246
Loans payable and other borrowings	23,094	22,876
Senior notes, net	996,991	996,105
Total liabilities	1,516,530	1,424,259
Stockholders’ Equity
Preferred stock, par value $0.01. Authorized 10,000,000 shares; none issued and outstanding at December 31, 2020 and 2019	0	0
Common stock, par value $0.01. Authorized 125,000,000 shares; 37,512,127 and 38,199,111 shares issued and outstanding at December 31, 2020 and 2019, respectively	375	382
Additional paid-in Capital	455,762	505,352
Retained earnings	1,891,731	1,468,256
Total stockholders’ equity	2,347,868	1,973,990
Total liabilities and stockholders’ equity	$ 3,864,398	$ 3,398,249

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2020	Dec. 31, 2019
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)	37,512,127	38,199,111
Common stock, shares outstanding (in shares)	37,512,127	38,199,111

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Earnings from financial services unconsolidated entities and other, net	$ 4,496	$ 11,945	$ 16,333
Commissions and other sales costs	(287,901)	(246,728)	(241,897)
General and administrative expenses	(159,020)	(146,093)	(138,478)
Interest expense	(2,177)	(8,370)	(785)
Other income, net	6,662	9,577	11,217
Loss on early extinguishment of debt	0	(5,635)	0
Earnings before income taxes	533,566	302,945	283,254
Provision for income taxes	(110,091)	(53,282)	(55,922)
Net earnings	$ 423,475	$ 249,663	$ 227,332
Earnings per common share:
Basic (in dollars per share)	$ 11.23	$ 6.55	$ 5.67
Diluted (in dollars per share)	$ 11	$ 6.42	$ 5.58
Weighted average number of shares:
Basic (in shares)	37,718	38,100	40,107
Diluted (in shares)	38,484	38,891	40,728
Homebuilding
Revenue	$ 4,464,389	$ 3,604,629	$ 3,474,712
Cost of goods and services sold	(3,483,981)	(2,923,969)	(2,842,762)
Total closing gross profit	980,408	680,660	631,950
Land [Member]
Revenue	17,731	45,854	38,707
Cost of goods and services sold	(38,525)	(46,899)	(41,504)
Total closing gross profit	(20,794)	(1,045)	(2,797)
Real Estate [Member]
Revenue	4,482,120	3,650,483	3,513,419
Cost of goods and services sold	(3,522,506)	(2,970,868)	(2,884,266)
Total closing gross profit	959,614	679,615	629,153
Financial Service [Member]
Revenue	19,097	16,461	15,162
Cost of revenue	(7,797)	(6,781)	(6,454)
Total closing gross profit	16,388	20,579	24,044
Earnings from financial services unconsolidated entities and other, net	$ 5,088	$ 10,899	$ 15,336

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Additional Paid-In Capital	Retained Earnings	Retained EarningsCumulative Effect, Period of Adoption, Adjustment
Beginning balance (in shares) at Dec. 31, 2017			40,331,000
Beginning balance at Dec. 31, 2017	$ 1,576,825	$ (583)	$ 403	$ 584,578	$ 991,844	$ (583)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	227,332				227,332
Issuance of stock (in shares)			326,000
Issuance of stock	0		$ 4	(4)
Equity award compensation expense	17,181			17,181
Share repurchases (in shares)			(2,584,000)
Share repurchases	(100,000)		$ (26)	(99,974)
Ending balance (in shares) at Dec. 31, 2018			38,073,000
Ending balance at Dec. 31, 2018	$ 1,720,755		$ 381	501,781	1,218,593
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible List]	us-gaap:AccountingStandardsUpdate201409Member
Net earnings	$ 249,663				249,663
Issuance of stock (in shares)			435,000
Issuance of stock	0		$ 4	(4)
Equity award compensation expense	19,607			19,607
Share repurchases (in shares)			(309,000)
Share repurchases	$ (16,035)		$ (3)	(16,032)
Ending balance (in shares) at Dec. 31, 2019	38,199,111		38,199,000
Ending balance at Dec. 31, 2019	$ 1,973,990		$ 382	505,352	1,468,256
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	423,475				423,475
Issuance of stock (in shares)			413,000
Issuance of stock	0		$ 4	(4)
Equity award compensation expense	19,995			19,995
Share repurchases (in shares)			(1,100,000)
Share repurchases	$ (69,592)		$ (11)	(69,581)
Ending balance (in shares) at Dec. 31, 2020	37,512,127		37,512,000
Ending balance at Dec. 31, 2020	$ 2,347,868		$ 375	$ 455,762	$ 1,891,731

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net earnings	$ 423,475	$ 249,663	$ 227,332
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	31,052	27,923	26,966
Stock-based compensation	19,995	19,607	17,170
Loss on extinguishment of debt	0	5,635	0
Equity in earnings from unconsolidated entities	(4,496)	(11,945)	(16,333)
Deferred tax asset revaluation	0	0	(2,741)
Distributions of earnings from unconsolidated entities	3,594	13,438	16,142
Other	14,406	9,273	15,847
Changes in assets and liabilities:
(Increase)/decrease in real estate	(40,089)	3,621	(19,426)
(Increase)/decrease in deposits on real estate under option or contract	(9,477)	453	12,444
Decrease/(increase) in receivables, prepaids and other assets	2,130	(9,112)	3,042
Increase/(decrease) in accounts payable and accrued liabilities	88,942	42,654	(12,820)
Increase/(decrease) in home sale deposits	828	(4,390)	(5,423)
Net cash provided by operating activities	530,360	346,820	262,200
Cash flows from investing activities:
Investments in unconsolidated entities	(5)	(1,113)	(808)
Distributions of capital from unconsolidated entities	1,000	11,550	597
Purchases of property and equipment	(19,932)	(24,385)	(33,415)
Proceeds from sales of property and equipment	703	459	99
Maturities/sales of investments and securities	2,489	754	1,181
Payments to purchase investments and securities	(2,489)	(754)	(1,181)
Net cash used in investing activities	(18,234)	(13,489)	(33,527)
Cash flows from financing activities:
Repayment of loans payable and other borrowings	(16,379)	(3,676)	(15,755)
Repayment of senior notes and senior convertible notes	0	(305,620)	(175,000)
Proceeds from issuance of senior notes	0	0	206,000
Payment of debt issuance costs	0	0	(3,198)
Repurchase of shares	(69,592)	(16,035)	(100,000)
Net cash used in financing activities	(85,971)	(325,331)	(87,953)
Net increase in cash and cash equivalents	426,155	8,000	140,720
Cash and cash equivalents, beginning of year	319,466	311,466	170,746
Cash and cash equivalents, end of year	$ 745,621	$ 319,466	$ 311,466

SUPPLEMENTAL DISCLOSURE OF CASH

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION	12 Months Ended
	Dec. 31, 2020
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): Years Ended December 31, 2020 2019 2018 Cash paid during the year for: Interest, net of interest capitalized $ 355 $ 10,810 $ 4,229 Income taxes $ 84,739 $ 64,658 $ 56,350 Non-cash operating activities: Real estate acquired through notes payable $ 16,597 $ 11,721 $ 13,174

BUSINESS AND SUMMARY OF SIGNIFI

BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization. Meritage Homes Corporation ("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 for the first-time and first move-up buyers. 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. These three regions are our principal homebuilding reporting segments. We also operate a financial services reporting segment. In this segment, we offer title and escrow, mortgage, and insurance services. Carefree Title Agency, Inc. ("Carefree Title"), our wholly-owned title company, provides title insurance and closing/settlement services to our homebuyers. Managing our own title operations allows us greater control over the entire escrow and closing cycles in addition to generating additional revenue. Beginning in the fourth quarter of 2019, we commenced operations of a wholly-owned insurance broker, Meritage Homes Insurance Agency (“Meritage Insurance”). Meritage Insurance works in collaboration with insurance companies nationwide to offer homeowners' insurance and other various insurance products to our homebuyers. Our financial services operations also provide mortgage loans to our homebuyers indirectly through an unconsolidated joint venture. We commenced our homebuilding operations in 1985 through our predecessor company known as Monterey Homes. Meritage Homes Corporation was incorporated in the state of Maryland in 1988 under the name of Homeplex Mortgage Investments Corporation and merged with Monterey Homes in 1996, at which time our name was changed to Monterey Homes Corporation and later ultimately to Meritage Homes Corporation. Since that time, we have engaged in homebuilding and related activities and ceased to operate as a real estate investment trust. Meritage Homes Corporation operates as a holding company and has no independent assets or operations. Its homebuilding construction, development and sales activities are conducted through its subsidiaries. Our homebuilding activities are conducted under the name of Meritage Homes in each of our homebuilding markets. At December 31, 2020, we were actively selling homes in 195 communities, with base prices ranging from approximately $191,000 to $921,000. Basis of Presentation . The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and 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. 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 for home closings of approximately $61.3 million and $54.5 million are included in cash and cash equivalents at December 31, 2020 and 2019, respectively. Real Estate. Real estate is stated at cost unless the community or land 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, and capitalized direct overhead costs incurred during development, 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) and 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. Actual results can differ from budgeted amounts for various reasons, including construction delays, labor or material shortages, slower absorptions, 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 home construction and land development costs. Typically, a community's life cycle ranges from three All of our land inventory and related real estate assets are periodically reviewed for recoverability when certain criteria are met, but at least annually, 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. Our analysis is conducted if indication of a decline in value of our land and real estate assets exist. If an asset is deemed to be impaired, the impairment recognized is measured as the amount by which the asset's carrying amount exceeds its fair value. The impairment of a community is allocated to each lot on a straight-line basis. See Note 2 for additional information related to real estate and impairments. Deposits. Deposits paid related to land option 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 any non-refundable deposits and any ancillary capitalized costs. Our deposits were $59.5 million and $50.9 million as of December 31, 2020 and December 31, 2019, respectively. Goodwill. In accordance with ASC 350, Intangibles, Goodwill and Other ("ASC 350"), we analyze goodwill on an annual basis (or whenever indicators of impairment exist) through a qualitative assessment to determine whether it is necessary to perform a goodwill impairment test. ASC 350 states that an entity may assess qualitative factors to determine whether it is necessary to perform a 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, labor costs, etc., 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. See Note 10 for additional information related to goodwill. Property and Equipment, net. Property and equipment, net consists of computer and office equipment, model home furnishings and capitalized sales office costs. Depreciation is generally calculated using the straight-line method over the estimated useful lives of the assets, which range from three At December 31, 2020 2019 Computer and office equipment $ 59,407 $ 57,162 Model home furnishings and capitalized sales office costs 76,398 86,047 Gross property and equipment 135,805 143,209 Accumulated depreciation (96,872) (92,603) Total $ 38,933 $ 50,606 Deferred Costs. At December 31, 2020 and 2019, deferred costs representing debt issuance costs related to our Credit Facility of approximately $4.7 million and $3.3 million, net of accumulated amortization, are included on our consolidated balance sheets within Prepaids, other assets and goodwill. The costs are primarily amortized to interest expense using the straight line method which approximates the effective interest method. See Note 7 for additional information related to net debt issuance costs associated with our senior notes. Investments in Unconsolidated Entities . We use the equity method of accounting for investments in unconsolidated entities over which we exercise significant influence but do not have a controlling interest. Under the equity method, our share of the unconsolidated entities’ earnings or loss is included in Other income net, or Earnings from financial services unconsolidated entities and other, net, in our income statements. We use the cost method of accounting for investments in unconsolidated entities over which we do not have significant influence, if any. We track cumulative earnings and distributions from each of our ventures. For cash flow classification, to the extent distributions do not exceed cumulative earnings, we designate such distributions as return on capital. Distributions in excess of cumulative earnings are treated as return of capital. We evaluate our investments in unconsolidated entities for impairment when events that trigger an evaluation of recoverability present themselves. See Note 5 for additional information related to investments in unconsolidated entities. Accrued Liabilities . Accrued liabilities at December 31, 2020 and 2019 consisted of the following (in thousands): At December 31, 2020 2019 Accruals related to real estate development and construction activities $ 92,701 $ 74,448 Payroll and other benefits 88,337 67,734 Accrued interest 8,457 8,758 Accrued taxes 34,373 8,459 Warranty reserves 23,743 22,015 Lease liabilities (1) 28,254 34,231 Other accruals 20,256 10,363 Total $ 296,121 $ 226,008 (1) Refer to Note 4 for additional information related to our leases. Revenue Recognition. In accordance with ASC 606 , Revenue from Contracts with Customers , we apply the following steps in determining the timing and amount of revenue to recognize: (1) identify the contract with our customer; (2) identify the performance obligation(s) in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract, if applicable; and (5) recognize revenue when (or as) we satisfy the performance obligation. The performance obligation and subsequent revenue recognition for our three sources of revenue are outlined below: • Revenue from closings of residential real estate is recognized when closings have occurred, the risks and rewards of ownership are transferred to the buyer, and we have no continuing involvement with the property, which is generally upon the close of escrow. Revenue is reported net of any discounts and incentives. • Revenue from land sales is recognized when a significant down payment is received, title passes and collectability of the receivable is reasonably assured, and we have no continuing involvement with the property, which is generally upon the close of escrow. • Revenue from financial services is recognized when closings have occurred and all financial services have been rendered, which generally upon the close of escrow. Home sale contract assets consist of cash from home closings that are in transit from title companies, which are considered cash in transit and are classified as cash on our accompanying consolidated balance sheet. See "Cash and Cash Equivalents" in this Note 1 for further information. Contract liabilities include home sale deposit liabilities related to sold but unclosed homes, and are classified as Home sale deposits in our accompanying consolidated balance sheet. Substantially all of our home sales are scheduled to close and be recorded as revenue within one year from the date of receiving a customer deposit. Revenue expected to be recognized in any future year related to remaining performance obligations (if any) and contract liabilities expected to be recognized as revenue, excluding revenue pertaining to contracts that have an original expected duration of one year or less, is not material. Revenue from financial services includes estimated future insurance policy renewal commissions as our performance obligations are satisfied upon issuance of the initial policy with a third party broker. The related contract assets for these estimated future renewal commissions are not material. Our three sources of revenue are disaggregated by type in the accompanying consolidated income statements. Cost of Home Closings . Cost of home closings includes direct home construction costs, closing costs, land acquisition and development costs, development period interest and common costs, and impairments, if any. Direct construction costs are accumulated during the period of construction and charged to cost of closings under specific identification methods, as are closing costs. Estimates of costs incurred or to be incurred but not paid are accrued and expensed at the time of closing. Land development, acquisition and common costs are allocated to each lot based on the number of lots remaining to close. Income Taxes. We account for income taxes using the asset and liability method, which requires that deferred tax assets and liabilities be recognized based on future tax consequences of both temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period when the changes are enacted. We record deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we consider all available objectively verifiable positive and negative evidence, including scheduled reversals of deferred tax liabilities, whether we are in a cumulative loss position, projected future taxable income, tax planning strategies and recent financial operations. If we determine that we will not be able to realize our deferred tax assets in the future, we will record a valuation allowance, which increases the provision for income taxes. We recognize interest and penalties related to unrecognized tax benefits within Provision for income taxes in the accompanying consolidated income statement. Accrued interest and penalties are included within Accrued liabilities in the accompanying consolidated balance sheets. See Note 12 for additional information related to income taxes. Advertising Costs. We expense advertising costs as they are incurred. Advertising expense was approximately $10.5 million, $14.6 million and $15.4 million in fiscal 2020, 2019 and 2018, respectively. Earnings Per Share. We compute basic earnings per share by dividing net earnings by the weighted average number of common shares outstanding during the period. Diluted earnings per share gives effect to the potential dilution that could occur if securities or contracts to issue common stock that are dilutive were exercised or converted into common stock or resulted in the issuance of common stock that then shared in our earnings. In periods of net losses, no dilution is computed. See Note 9 for additional information related to earnings per share. Stock-Based Compensation . We account for stock-based compensation in accordance with ASC 718-10, Compensation—Stock Compensation ("ASC 718"). This guidance requires us to estimate forfeitures in calculating the expense related to stock-based compensation. Awards with either a graded or cliff vesting are expensed on a straight-line basis over the life of the award. See Note 11 for additional information on stock-based compensation. 401(k) Retirement Plan. We have a 401(k) plan for all full-time Meritage employees. We match portions of employees’ voluntary contributions, and contributed to the plan approximately $4.7 million, $4.1 million and $3.7 million for the years ended 2020, 2019 and 2018, respectively. 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, although our participation in such ventures is currently very limited. See Note 5 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 purchase and option agreements. The purchase price generally approximates the market price at the date the contract is executed (with possible future escalators) and may have staggered purchase schedules. See Note 3 for additional information on off-balance sheet arrangements. Surety Bonds and Letters of Credit. We provide surety bonds and letters of credit in support of our obligations relating to the development of our projects and other corporate purposes, in lieu of cash deposits. The amount of these obligations outstanding at any time varies depending on the stage and level of our development activities. Bonds are generally not wholly 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 or letter of credit. 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): At December 31, 2020 2019 Outstanding Estimated work Outstanding Estimated work Sureties: Sureties related to owned projects and lots under contract 478,788 216,708 405,017 186,986 Total Sureties $ 478,788 $ 216,708 $ 405,017 $ 186,986 Letters of Credit (“LOCs”): LOCs for land development 93,661 N/A 57,192 N/A LOCs for general corporate operations 3,750 N/A 3,750 N/A Total LOCs $ 97,411 N/A $ 60,942 N/A Warranty Reserves. We provide home purchasers with limited warranties against certain building defects and 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 for the first year after the close of the home, a major mechanical warranty for two years after the close of the home and a structural warranty that typically extends up to 10 years after 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 may 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. Based on such reviews of warranty costs incurred, we did not adjust the warranty reserve balance in the twelve months ended December 31, 2020 and 2019. Included in the warranty reserve balances at December 31, 2020 and December 31, 2019 reflected in the table below are case-specific reserves for a warranty matter related to alleged stucco defects in Florida and water drainage issues in a single community in Florida. See Note 16 for additional information regarding these case-specific reserves. A summary of changes in our warranty reserves follows (in thousands): Years Ended December 31, 2020 2019 Balance, beginning of year $ 22,015 $ 24,552 Additions to reserve from new home deliveries 18,503 15,841 Warranty claims (16,775) (18,378) Adjustments to pre-existing reserves — — Balance, end of year $ 23,743 $ 22,015 Warranty reserves are included in Accrued liabilities on the accompanying consolidated balance sheets, and additions and adjustments to the reserves are included in Cost of home closings within the accompanying 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 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 2018, the Financial Accounting Standards Board ("FASB") issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract ("ASU 2018-15"), which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Entities will need to consider both the nature of the costs and the phase of development in which the implementation costs are incurred to determine whether the costs should be capitalized or expensed. ASU 2018-15 was effective for us beginning January 1, 2020 on a prospective basis to all implementation costs incurred after the date of adoption. The adoption of ASU 2018-15 did not have a material impact on our financial statement disclosures. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2018-13"), which eliminates, adds, and modifies certain disclosure requirements for fair value measurements. Entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU 2018-13 was effective for us beginning January 1, 2020. As we currently only have Level 2 financial instruments, the adoption of ASU 2018-13 did not have a material impact on our financial statement disclosures.

REAL ESTATE AND CAPITALIZED INT

REAL ESTATE AND CAPITALIZED INTEREST	12 Months Ended
	Dec. 31, 2020
Inventory Disclosure [Abstract]
REAL ESTATE AND CAPITALIZED INTEREST	REAL ESTATE AND CAPITALIZED INTEREST Real estate consists of the following (in thousands): At December 31, 2020 2019 Homes under contract under construction (1) $ 873,365 $ 564,762 Unsold homes, completed and under construction (1) 357,861 686,948 Model homes (1) 82,502 121,340 Finished home sites and home sites under development (2) (3) 1,464,311 1,371,311 $ 2,778,039 $ 2,744,361 (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. (3) Includes land held for sale of $72.7 million and $36.6 million as of December 31, 2020 and 2019, respectively. As previously noted, in accordance with ASC 360-10, each of our land inventory and related real estate assets is reviewed for recoverability when certain criteria are met, but at least annually, as our inventory is considered “long-lived” in accordance with GAAP. ASC 360-10 requires impairment charges to be recorded if the asset is not deemed recoverable and the fair value of such assets is less than their carrying amounts. Our determination of fair value is based on projections and estimates. We also evaluate alternative product offerings in communities where impairment indicators are present and other strategies for the land exist, such as selling or holding the land for sale. We recorded impairment charges of approximately $24.9 million and $7.3 million for the years ended December 31, 2020 and 2019, respectively. The majority of the impairment charges during the year ended December 31, 2020 are the result of upcoming dispositions of certain assets that no longer fit our strategy of entry-level and first move-up communities. Subject to sufficient qualifying assets, we capitalize our development period interest costs incurred in connection with the development and construction of real estate. Capitalized interest is allocated to active real estate when incurred and charged to cost of closings when the related property is closed. A summary of our capitalized interest is as follows (in thousands): Years Ended December 31, 2020 2019 2018 Capitalized interest, beginning of year $ 82,014 $ 88,454 $ 78,564 Interest incurred 66,289 83,856 85,278 Interest expensed (2,177) (8,370) (785) Interest amortized to cost of home and land closings (87,186) (81,926) (74,603) Capitalized interest, end of year (1) $ 58,940 $ 82,014 $ 88,454 (1) Approximately $217,000, $279,000 and $454,000 of the capitalized interest is related to our joint venture investments and is a component of Investments in unconsolidated entities in our consolidated balance sheet as of December 31, 2020, 2019 and 2018, respectively.

VARIABLE INTEREST ENTITIES AND

VARIABLE INTEREST ENTITIES AND CONSOLIDATED REAL ESTATE NOT OWNED	12 Months Ended
	Dec. 31, 2020
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 holdings 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 an option or purchase agreement to acquire land or lots from an entity, a variable interest entity, or “VIE”, may be created. We evaluate all option and purchase agreements and amendments 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 we are, we 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 to acquire additional land into the VIE or dispose of land in the VIE 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 typically contracted to complete development at a fixed cost on behalf of the land owner and any budget savings or shortfalls are 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 that are not recorded on the balance sheet at December 31, 2020 (dollars in thousands): Projected Number Purchase Option/ Purchase and option contracts recorded on balance sheet as Real estate not owned — $ — $ — Option contracts — non-refundable deposits, committed (1) 8,869 440,660 31,710 Purchase contracts — non-refundable deposits, committed (1) 11,619 360,921 23,761 Purchase and option contracts —refundable deposits, committed 2,246 65,719 1,218 Total committed 22,734 867,300 56,689 Purchase and option contracts — refundable deposits, uncommitted (2) 14,325 423,083 2,845 Total lots under contract or option 37,059 $ 1,290,383 $ 59,534 Total purchase and option contracts not recorded on balance sheet (3) 37,059 $ 1,290,383 $ 59,534 (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 (if any), none of our purchase or option contracts require us to purchase lots. (4) Amount is reflected in our consolidated balance sheet in the line item “Deposits on real estate under option or contract” as of December 31, 2020.

LEASES

LEASES	12 Months Ended
	Dec. 31, 2020
Leases [Abstract]
LEASES	LEASES We lease certain office space and equipment for use in our operations. We assess each of these contracts to determine whether the arrangement contains a lease as defined by ASC 842, Leases ("ASC 842"). In order to meet the definition of a lease under ASC 842, the contractual arrangement must convey to us the right to control the use of an identifiable asset for a period of time in exchange for consideration. We recognize lease expense for these leases on a straight-line basis over the lease term and combine lease and non-lease components for all leases. Some of our leases contain renewal options and in accordance with ASC 842, our lease terms include those renewals only to the extent that they are reasonably certain to be exercised. The exercise of these lease renewal options is generally at our discretion. In accordance with ASC 842, the lease liability is equal to the present value of the remaining lease payments while the right of use ("ROU") asset is based on the lease liability, subject to adjustment, such as for lease incentives. Our leases do not provide a readily determinable implicit interest rate and therefore, we must estimate our incremental borrowing rate. In determining our incremental borrowing rate, we consider the lease period, market interest rates, current interest rates on our senior notes and the effects of collateralization. Our lease population at December 31, 2020 is comprised of operating leases where we are the lessee and these leases are primarily real estate for office space for our corporate office, division offices and design centers, in addition to leases of certain equipment. As allowed by ASC 842, we adopted an accounting policy election to not record leases with lease terms of twelve months or less on the consolidated balance sheet. Lease cost included in our consolidated income statements in General and administrative expenses and Commissions and other sales costs is in the table below (in thousands). Our short-term lease costs and sublease income are de minimis. Years Ended December 31, 2020 2019 Operating lease expense $ 7,657 $ 6,981 Non-cash lease expense $ 6,037 $ 5,418 Cash payments on lease liabilities $ 9,013 $ 8,058 ROU assets obtained in exchange for new operating lease obligations $ 1,364 $ 11,471 ROU assets are classified within Prepaids, other assets and goodwill on our consolidated balance sheet, while lease liabilities are classified within Accrued liabilities on our consolidated balance sheet. The following table contains additional information about our leases (dollars in thousands): At December 31, 2020 2019 ROU assets $ 21,624 $ 26,332 Lease liabilities $ 28,254 $ 34,231 Weighted-average remaining lease term 4.0 years 4.8 years Weighted-average discount rate (incremental borrowing rate) 4.54 % 4.53 % Maturities of our operating lease liabilities as of December 31, 2020 are as follows (in thousands): Year ended December 31, 2021 $ 8,985 2022 8,043 2023 6,628 2024 3,760 2025 3,457 Thereafter 3,841 Total payments 34,714 Less: imputed interest (6,460) Present value of lease liabilities $ 28,254

INVESTMENTS IN UNCONSOLIDATED E

INVESTMENTS IN UNCONSOLIDATED ENTITIES	12 Months Ended
	Dec. 31, 2020
Equity Method Investments and Joint Ventures [Abstract]
INVESTMENTS IN UNCONSOLIDATED ENTITIES	INVESTMENTS IN UNCONSOLIDATED ENTITIES We may enter into 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. Based on the structure of these joint ventures, they may or may not be consolidated into our results. Our joint venture partners generally are 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 December 31, 2020, we had one active equity-method land venture. As of December 31, 2020, we also participated in one mortgage joint venture, which is engaged in mortgage activities and primarily provides services to our homebuyers. Our investment in this mortgage joint venture as of December 31, 2020 and December 31, 2019 was $1.0 million and $0.7 million, respectively. Summarized condensed financial information related to unconsolidated joint ventures that are accounted for using the equity method was as follows (in thousands): At December 31, 2020 2019 Assets: Cash $ 4,656 $ 6,329 Real estate 5,745 6,654 Other assets 5,118 4,382 Total assets $ 15,519 $ 17,365 Liabilities and equity: Accounts payable and other liabilities $ 5,588 $ 6,580 Equity of: Meritage (1) 5,330 5,678 Other 4,601 5,107 Total liabilities and equity $ 15,519 $ 17,365 Years Ended December 31, 2020 2019 2018 Revenue $ 39,823 $ 53,841 $ 43,672 Costs and expenses (31,918) (31,375) (17,294) Net earnings of unconsolidated entities $ 7,905 $ 22,466 $ 26,378 Meritage’s share of pre-tax earnings (1) (2) $ 4,559 $ 11,945 $ 16,396 (1) Balance represents Meritage’s interest, as reflected in the financial records of the respective joint ventures. This balance may differ from the balance reflected 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 consolidated financial statements, the balances above do not include $217,000, $279,000 and $454,000 of capitalized interest that is a component of our investment balances at December 31, 2020, 2019 and 2018, respectively. (2) Our share of pre-tax earnings is recorded in Earnings from financial services unconsolidated entities and other, net or Other income, net, as applicable, 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. Our total investment in all of these joint ventures is $4.4 million as of December 31, 2020. 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	12 Months Ended
	Dec. 31, 2020
Debt Disclosure [Abstract]
LOANS PAYABLE AND OTHER BORROWINGS	LOANS PAYABLE AND OTHER BORROWINGS Loans payable and other borrowings consist of the following (in thousands): At December 31, 2020 2019 Other borrowings, real estate note payable (1) $ 23,094 $ 22,876 $780.0 million unsecured revolving credit facility with interest approximating LIBOR (approximately 0.14% at December 31, 2020) plus 1.375% or Prime (3.25% at December 31, 2020) plus 0.375% — — Total $ 23,094 $ 22,876 (1) Reflects balance of non-recourse non-interest bearing notes payable in connection with land purchases. The Company entered into an amended and restated unsecured revolving credit facility ("Credit Facility") in 2014 that has been amended from time to time. In December 2020, the Credit Facility was amended to extend the maturity date to December 22, 2025 and provide for the replacement of LIBOR in the event such rate is no longer available. The Credit Facility's aggregate commitment is $780.0 million with an accordion feature permitting the size of the facility to increase to a maximum of $880.0 million, subject to certain conditions, including the availability of additional bank commitments. 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 $1.5 billion (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 were in compliance with all Credit Facility covenants as of December 31, 2020. We had no outstanding borrowings under the Credit Facility as of December 31, 2020 and December 31, 2019. During the twelve months ended December 31, 2020, we had $500.0 million of gross borrowings and repayments. During the twelve months ended December 31, 2019, we had $90.0 million of gross borrowings and repayments. During the twelve months ended December 31, 2018, we had $285.0 million of gross borrowings and repayments. As of December 31, 2020 we had outstanding letters of credit issued under the Credit Facility totaling $97.4 million, leaving $682.6 million available under the Credit Facility to be drawn.

SENIOR NOTES, NET

SENIOR NOTES, NET	12 Months Ended
	Dec. 31, 2020
Debt Disclosure [Abstract]
SENIOR NOTES, NET	SENIOR NOTES, NET Senior notes, net consist of the following (in thousands): At December 31, 2020 2019 7.00% senior notes due 2022 $ 300,000 $ 300,000 6.00% senior notes due 2025. At December 31, 2020 and December 31, 2019 there was approximately $3,614 and $4,432 in net unamortized premium, respectively. (1) 403,614 404,432 5.125% senior notes due 2027 300,000 300,000 Net debt issuance costs (6,623) (8,327) Total $ 996,991 $ 996,105 (1) $200.0 million of the total $400.0 million of 6.00% Senior Notes due 2025 outstanding at December 31, 2020 was issued at par and had no unamortized premium. The indentures for all of our senior notes contain non-financial covenants including, among others, limitations on the amount of secured debt we may incur, and limitations on sale and leaseback transactions and mergers. We were in compliance with all such covenants as of December 31, 2020. Obligations to pay principal and interest on the senior 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 will 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, if any, are, individually and in the aggregate, minor. During 2010, we completed an offering of $200.0 million aggregate principal amount of 7.15% senior notes due 2020 (the "2020 Notes"). During 2013, we completed a $100.0 million add-on offering to the existing 7.50% senior notes due 2020. In the fourth quarter of 2019, we redeemed the 2020 Notes, incurring $5.6 million in charges reflected as Loss on early extinguishment of debt in the accompanying income statements. In April 2012, we completed an offering of $300.0 million aggregate principal amount of 7.00% Senior Notes due 2022. Concurrent with this offering, we repurchased all $285.0 million outstanding of our 6.25% Senior Notes due 2015. We also repurchased the remaining aggregate principal amount of approximately $26.1 million of our 7.731% Senior Subordinated Notes due 2017. In June 2015, we completed an offering of $200.0 million aggregate principal amount of 6.00% Senior Notes due 2025 (the "2025 Notes"). The 2025 Notes were issued at par, and the proceeds were used for general corporate obligations and future land spend. In March 2018, the Company completed an offering of $200.0 million aggregate principal amount of additional 2025 Notes (the "Additional Notes"). The Additional Notes were issued as an add-on to the existing 2025 Notes that were issued in June 2015 which resulted in a combined $400.0 million aggregate principal amount of 6.00% Senior Notes due 2025 outstanding as of December 31, 2020. The Additional Notes were issued at a premium of 103% of the principal amount and the net proceeds were used to repay outstanding borrowings under the Credit Facility, which included borrowings used for the redemption of the Company's $175.0 million of 4.50% Senior Notes that were due to mature on March 1, 2018. In June 2017, we completed an offering of $300.0 million aggregate principal amount of 5.125% Senior Notes due 2027 (the "2027 Notes"). The 2027 notes were issued at par. Using the proceeds from the 2027 Notes offering, we retired all $126.5 million of our convertible senior notes through a repurchase of $51.9 million in privately negotiated transactions and a redemption of the remaining $74.6 million through a combination of holder redemptions and an exercise of our call option at a redemption price equal to 100% of the principal amount of the notes redeemed, plus accrued and unpaid interest. Scheduled principal maturities of our senior and notes as of December 31, 2020 follow (in thousands): Year Ended December 31, 2021 $ — 2022 300,000 2023 — 2024 — 2025 400,000 Thereafter 300,000 Total $ 1,000,000

FAIR VALUE DISCLOSURES

FAIR VALUE DISCLOSURES	12 Months Ended
	Dec. 31, 2020
Fair Value Disclosures [Abstract]
FAIR VALUE DISCLOSURES	FAIR VALUE DISCLOSURES ASC 820-10 Fair Value Measurement 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. 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): At December 31, 2020 2019 Aggregate Estimated Fair Aggregate Estimated Fair 7.00% senior notes $ 300,000 $ 319,758 $ 300,000 $ 327,390 6.00% senior notes $ 400,000 $ 451,913 $ 400,000 $ 449,200 5.125% senior notes $ 300,000 $ 333,328 $ 300,000 $ 319,500 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. Non-Financial Instruments : Our Real estate assets are Level 3 instruments that are required to be recorded at fair value on non-recurring basis when events and circumstances indicate that the carrying value may not be recoverable. Refer to Notes 1 and 2 for information regarding the valuation of these assets. Our Real estate assets measured at fair value are as follows (in thousands): Year Ended December 31, 2020 2019 Description: Adjusted basis of long-lived real estate assets $ 46,917 $ 42,949 Impairments $ 24,852 $ 7,293 Initial basis of long-lived real estate assets $ 71,769 $ 50,242 At December 31, 2020, we remeasured these assets at fair value because of a decision to sell certain assets that are no longer aligned with our focus on first-time and first move-up homebuyers. The non-recurring fair values included in the table above represent only those assets whose carrying values were adjusted to fair value as of the respective balance sheet dates.

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
	Dec. 31, 2020
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): Years Ended December 31, 2020 2019 2018 Basic weighted average number of shares outstanding 37,718 38,100 40,107 Effect of dilutive securities: Unvested restricted stock 766 791 621 Diluted average shares outstanding 38,484 38,891 40,728 Net earnings as reported $ 423,475 $ 249,663 $ 227,332 Basic earnings per share $ 11.23 $ 6.55 $ 5.67 Diluted earnings per share $ 11.00 $ 6.42 $ 5.58

ACQUISITIONS AND GOODWILL

ACQUISITIONS AND GOODWILL	12 Months Ended
	Dec. 31, 2020
Business Acquisitions and Goodwill [Abstract]
ACQUISITIONS AND GOODWILL	ACQUISITIONS AND GOODWILL Goodwill. We have previously entered new markets through the acquisition of the homebuilding assets and operations of other homebuilders. Our current goodwill is related to acquisitions of local/regional homebuilders in Georgia, South Carolina and Tennessee. The acquisitions were recorded in accordance with ASC 805, Business Combination s and ASC 820, using the acquisition method of accounting. The purchase price for the acquisitions were allocated based on estimated fair value of the assets and liabilities at the date of the acquisition. The combined excess purchase price over the fair value of the net assets of $33.0 million was recorded as goodwill, which is included in 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 triggers are present. Our analysis concluded that our goodwill balance was not impaired. A summary of changes in the carrying amount of goodwill follows (in thousands): West Central East Financial Services Corporate Total Balance at January 1, 2019 $ — $ — $ 32,962 $ — $ — $ 32,962 Additions — — — — — — Balance at December 31, 2019 — — 32,962 — — 32,962 Additions — — — — — — Balance at December 31, 2020 $ — $ — $ 32,962 $ — $ — $ 32,962

STOCK BASED AND DEFERRED COMPEN

STOCK BASED AND DEFERRED COMPENSATION	12 Months Ended
	Dec. 31, 2020
Share-based Payment Arrangement [Abstract]
STOCK BASED AND DEFERRED COMPENSATION	STOCK BASED AND DEFERRED COMPENSATION We have a stock compensation plan, the Meritage Homes Corporation 2018 Stock Incentive Plan (the “2018 Plan"), that was approved by our Board of Directors and our stockholders and adopted in May 2018. The 2018 Plan is administered by our Board of Directors and allows 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. All available shares from expired, terminated, or forfeited awards that remained under prior plans were merged into and became available for grant under the 2018 Plan. The 2018 Plan authorizes awards to officers, key employees, non-employee directors and consultants. The 2018 Plan authorizes 6,600,000 shares of common stock to be awarded, of which 1,308,510 shares remain available for grant at December 31, 2020. 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, a three-year cliff vesting for non-vested stock and performance-based awards granted to senior executive officers and either a three-year cliff vesting or one-year vesting for non-employee directors, dependent on their start date. Summary of Nonvested (Restricted) Shares and Units Activity: We grant time-based and performance-based restricted shares or units. Performance-based restricted shares are only granted to executive officers. All performance shares only vest upon the attainment of certain financial and operational criteria as established and approved by our Board of Directors. The number of shares that may be issued to the award recipients may be greater or lesser than the target award amount depending on actual performance achieved as compared to the performance targets set forth in the awards. Nonvested Weighted Nonvested Weighted Outstanding at January 1, 2018 982,652 $ 35.59 287,005 $ 35.80 Granted 315,247 46.07 157,637 45.20 Vested (Earned/Released) (288,709) 37.93 (36,801) 41.17 Forfeited (1) (85,900) 37.53 (29,386) 41.17 Outstanding as of December 31, 2018 923,290 38.25 378,455 38.77 Granted (2) 385,328 44.46 115,191 40.46 Vested (Earned/Released) (347,555) 37.15 (87,737) 34.39 Forfeited (1) (126,443) 40.45 — — Outstanding at December 31, 2019 834,620 41.25 405,909 40.20 Granted (3) 225,593 72.51 80,193 61.06 Vested (Earned/Released) (234,842) 38.80 (178,174) 34.10 Forfeited (1) (34,754) 46.31 — — Outstanding at December 31, 2020 790,617 $ 50.67 307,928 $ 49.16 (1) Forfeitures on time-based nonvested shares are a result of terminations of employment, while forfeitures on performance-based nonvested shares are a result of failing to attain certain goals as outlined in our executive officers' compensation agreements. (2) Performance-based shares granted for the year ended December 31, 2019 includes 21,039 shares that were issued as a result of the performance achievement exceeding the performance targets related to grants to our executive officers for the year ended December 31, 2016. These shares vested in March 2019. (3) Performance-based shares granted for the year ended December 31, 2020 includes 24,054 shares that were issued as a result of the performance achievement exceeding the performance targets related to grants to our executive officers for the year ended December 31, 2017. These shares vested in February 2020. Compensation cost related to time-based restricted stock awards is measured as of the closing price on the date of grant and is expensed, less forfeitures, 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, 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 and recorded on a straight-line basis through the end of the award’s vesting period. 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 (in thousands): Years Ended December 31, 2020 2019 2018 Stock-based compensation expense $ 19,995 $ 19,607 $ 17,170 The following table includes additional information regarding our Plan (dollars in thousands): At December 31, 2020 2019 Unrecognized stock-based compensation cost $ 22,687 $ 22,341 Weighted average years expense recognition period 2.01 1.70 Total equity awards outstanding (1) 1,098,545 1,240,529 (1) Includes unvested restricted stock, performance-based awards (assuming 100% payout) 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 401(k) 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 years ended December 31, 2020, 2019 and 2018, other than minor administrative costs.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2020
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Components of income tax expense are as follows (in thousands): Years Ended December 31, 2020 2019 2018 Current taxes: Federal $ 99,174 $ 41,019 $ 37,926 State 21,012 11,644 9,162 120,186 52,663 47,088 Deferred taxes: Federal (9,725) (8) 6,687 State (370) 627 2,147 (10,095) 619 8,834 Total $ 110,091 $ 53,282 $ 55,922 Income taxes for the years ended December 31, 2020, 2019 and 2018, differ from the expected amounts computed using the federal statutory income tax rate of 21% as a result of the following (in thousands): Years Ended December 31, 2020 2019 2018 Expected taxes at current federal statutory income tax rate $ 112,049 $ 63,618 $ 59,483 State income taxes, net of federal tax benefit 16,307 9,999 8,934 Tax Act revaluation of deferred tax balances — — (2,741) Federal tax credits (16,523) (20,582) (10,330) Non-deductible costs and other (1,742) 247 576 Income tax expense $ 110,091 $ 53,282 $ 55,922 The effective tax rate was 20.6%, 17.6%, and 19.7% for 2020, 2019 and 2018, respectively. The rates in all three years are due to extension of the Internal Revenue Code ("IRC") §45L new energy efficient homes credits, and additional energy tax credits obtained by qualifying more homes in open prior tax years. The rate in 2019 also reflects the additional benefit of energy tax credit for the 2018 tax year that was realized in the 2019 tax year due to the retroactive application of the 2019 Act. Deferred tax assets and liabilities are netted on our balance sheet by tax jurisdiction. Net overall deferred tax assets for all jurisdictions are grouped and included as a separate asset. Net overall deferred tax liabilities for all jurisdictions are grouped and included in Accrued liabilities. At December 31, 2020, we have a net deferred tax asset of $36.0 million. We also have net deferred tax liabilities of $4.5 million. Deferred tax assets and liabilities are comprised of timing differences (in thousands) as follows: At December 31, 2020 2019 Deferred tax assets: Real estate $ 18,710 $ 12,090 Warranty reserve 5,588 5,190 Wages payable 7,798 6,429 Equity-based compensation 7,114 5,991 Accrued expenses 193 75 Net operating loss carry-forwards — 752 Other 5,498 4,488 Total deferred tax assets 44,901 35,015 Deferred tax liabilities: Goodwill 879 3 Prepaids 1,487 2,113 Fixed assets 6,495 6,982 Total deferred tax liabilities 8,861 9,098 Deferred tax assets, net 36,040 25,917 Other deferred tax liabilities - state franchise taxes 4,476 4,449 Net deferred tax assets and liabilities $ 31,564 $ 21,468 At December 31, 2020 and December 31, 2019, we have no unrecognized tax benefits. 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, Income Taxes ("ASC 740" ) . We evaluate our deferred tax assets, including the benefit from net operating losses ("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 carryforward periods, experiences with operating losses and experiences of utilizing tax credit carryforwards and tax planning alternatives. We have no valuation allowance on our deferred tax assets and no NOL carryovers at December 31, 2020. On December 22, 2017, the President signed into law the Tax Cuts and Jobs Act ("Tax Act"). Under ASC 740, the effects of new legislation are recognized in the period that includes the date of enactment. The estimated impact on 2017 was to reduce the value of our deferred tax asset by $19.7 million, which was reflected in our effective tax rate reconciliation for that year. The impact was our most reasonable estimate at that time based on our understanding of the Tax Act as it applied to our business and changed as more information became available. At December 31, 2018, we had completed our accounting for the income tax effects of the Tax Act on our deferred tax assets. In accordance with SEC Staff Accounting Bulletin No. 118 and ASC 740, we revised the valuation of our 2017 deferred tax assets for the impact of the Tax Act based on completion of our 2017 income tax returns in 2018. Accordingly, in 2018 we recorded a favorable revaluation adjustment of $2.7 million which was reflected in our effective tax rate reconciliation for 2018. On February 9, 2018, the Bipartisan Budget Act of 2018 was enacted and extended the availability for the IRC §45L new energy efficient homes credit retroactively to the end of 2017. In accordance with ASC 740, we recognized a tax benefit of $8.1 million in 2018 for qualifying new homes closed in 2017. The tax effected benefit is reflected in our effective tax rate reconciliation as the benefit from federal tax credits. In December of 2019, Congress passed the Taxpayer Certainty and Disaster Tax Relief Act of 2019 as a part of the Further Consolidated Appropriations Act, 2020 (the "2020 Act") which the President signed into law on December 20, 2019. The 2020 Act further extended the availability of the IRC §45L new energy efficient homes credit (the "energy tax credit") through the end of 2020. Under ASC 740, the effects of the new legislation are recognized in the period that includes the date of enactment, regardless of the retroactive benefit. In accordance with this guidance, we recorded a tax benefit of $19.9 million based on our estimate for qualifying new energy efficient homes that we closed in 2018 and 2019. The estimated tax effected benefit is reflected in our effective tax rate reconciliation as the benefit from federal tax credits. In December of 2020, the energy tax credit was extended through the end of 2021 and we expect to recognize a benefit from this extension. Our future deferred tax asset realization depends on sufficient taxable income in the carryforward periods under existing tax laws. Federal NOL carryforwards may be used to offset future taxable income for 20 years. State NOL carryforwards may be used to offset future taxable income for a period of time ranging from 5 to 20 years, depending on the state jurisdiction. At December 31, 2020, we had no remaining un-utilized federal NOL carryforward, federal tax credits, or state NOL carryforwards. At December 31, 2020, we have a current tax payable of $25.3 million, which consists of current federal and state income tax accruals net of current energy tax credits and estimated tax payments. This amount is recorded in Accrued liabilities in the accompanying balance sheet at December 31, 2020. At December 31, 2020, we have a current tax receivable of $0.7 million from amending prior year returns to claim additional energy tax credits. This amount is recorded in Other Receivables in the accompanying balance sheet at December 31, 2020. 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 2016. We have no federal or state income tax examinations being conducted at this time. The future tax benefits from any NOLs, built-in losses, and tax credits would be materially reduced or potentially eliminated if we experience an “ownership change” as defined under IRC §382. Based on our analysis performed as of December 31, 2020, 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.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2020
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONSFrom time to time, in the normal course of business, we have transacted with related or affiliated companies and with certain of our officers and directors. We believe that the terms and fees negotiated for all transactions listed below are no less favorable than those that could be negotiated in arm’s length transactions.We charter aircraft services from companies that use the private plane of Steven Hilton, our Executive Chairman and former CEO, although Mr. Hilton does not have an ownership interest in the charter companies. Payments made to these charter companies were approximately $408,000, $466,000 and $606,000 for the years ended December 31, 2020, 2019 and 2018, respectively.

OPERATING AND REPORTING SEGMENT

OPERATING AND REPORTING SEGMENTS	12 Months Ended
	Dec. 31, 2020
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 Central: Texas East: Florida, Georgia, North Carolina, South Carolina and Tennessee 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, “Business and Summary of Significant Accounting Policies.” 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: Years Ended December 31, 2020 2019 2018 Homebuilding revenue (1): West $ 1,800,223 $ 1,422,516 $ 1,436,334 Central 1,282,339 1,038,052 1,013,878 East 1,399,558 1,189,915 1,063,207 Consolidated total 4,482,120 3,650,483 3,513,419 Homebuilding segment operating income: West 213,918 141,435 134,852 Central 185,202 101,686 92,925 East 157,971 87,285 59,522 Total homebuilding segment operating income 557,091 330,406 287,299 Financial services segment profit 16,388 20,579 24,044 Corporate and unallocated costs (2) (44,398) (43,612) (38,521) Interest expense (2,177) (8,370) (785) Other income, net (3) 6,662 9,577 11,217 Loss on early extinguishment of debt — (5,635) — Net earnings before income taxes $ 533,566 $ 302,945 $ 283,254 (1) Homebuilding revenue includes the following land closing revenue, by segment: Years Ended December 31, Land closing revenue: 2020 2019 2018 West $ 4,974 $ 12,463 $ 18,508 Central 8,678 4,297 7,657 East 4,079 29,094 12,542 Total $ 17,731 $ 45,854 $ 38,707 (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 reporting segments. (3) For the year ended December 31, 2018, Other income, net includes a favorable $4.8 million legal settlement from long-standing litigation related to a previous joint venture in Nevada. At December 31, 2020 West Central East Financial Services Corporate and Total Deposits on real estate under option or contract $ 22,493 $ 11,154 $ 25,887 $ — $ — $ 59,534 Real estate 1,154,488 814,919 808,632 — — 2,778,039 Investments in unconsolidated entities 261 3,090 — — 999 4,350 Other assets 51,271 (1) 122,933 (2) 81,601 (3) 612 766,058 (4) 1,022,475 Total assets $ 1,228,513 $ 952,096 $ 916,120 $ 612 $ 767,057 $ 3,864,398 (1) Balance consists primarily of cash and property and equipment. (2) Balance consists primarily of cash, development reimbursements from local municipalities and prepaids and other assets. (3) Balance consists primarily of cash, goodwill, prepaids and other assets, and property and equipment. (4) Balance consists primarily of cash, deferred tax assets and prepaids and other assets. At December 31, 2019 West Central East Financial Services Corporate and Total Deposits on real estate under option or contract $ 10,568 $ 10,963 $ 29,370 $ — $ — $ 50,901 Real estate 1,223,949 708,786 811,626 — — 2,744,361 Investments in unconsolidated entities 260 3,508 — — 675 4,443 Other assets 58,173 (1) 107,791 (2) 83,475 (3) 765 348,340 (4) 598,544 Total assets $ 1,292,950 $ 831,048 $ 924,471 $ 765 $ 349,015 $ 3,398,249 (1) Balance consists primarily of cash and property and equipment. (2) Balance consists primarily of development reimbursements from local municipalities and prepaids and other assets. (3) Balance consists primarily of goodwill, prepaids and other assets, and property and equipment. (4) Balance consists primarily of cash.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIESWe are involved in various routine legal and regulatory proceedings, including, without limitation, claims and litigation 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 pending litigation matters, 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 prior to litigation. 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. As discussed in Note 1 under the heading “Warranty Reserves”, we have case specific reserves within our $23.7 million of total warranty reserves related to alleged stucco defects in homes in certain Florida communities we developed between 2006 and 2016 and for water drainage issues in a single community in Florida that we developed in 2016. Our review and handling of these two matters is ongoing and our estimate of and reserves for resolving these matters is based on internal data, our judgment and various assumptions and estimates. Due to the degree of judgment and the potential for variability in our underlying assumptions and data, as we obtain additional information, we may revise our estimate and thus our related reserves. As of December 31, 2020, after considering potential recoveries from the consultants and contractors involved and their insurers and the potential recovery under our general liability insurance policies, we believe our reserves are sufficient to cover the above mentioned matters. See Note 1 for information related to our warranty obligations. Lease Agreements See Note 4 for information related to our leases.

SELECTED QUARTERLY FINANCIAL DA

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)	12 Months Ended
	Dec. 31, 2020
Quarterly Financial Information Disclosure [Abstract]
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)	SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) Quarterly results for the years ended December 31, 2020 and 2019 follow (in thousands, except per share amounts): First Second Third Fourth 2020 Total closing revenue $ 901,013 $ 1,033,079 $ 1,138,091 $ 1,409,937 Total closing gross profit $ 178,743 $ 219,248 $ 244,077 $ 317,546 Earnings before income taxes $ 86,833 $ 115,862 $ 135,506 $ 195,365 Net earnings $ 71,152 $ 90,678 $ 109,118 $ 152,527 Per Share Data: Basic earnings per share (1) $ 1.87 $ 2.41 $ 2.90 $ 4.06 Diluted earnings per share (1) $ 1.83 $ 2.38 $ 2.84 $ 3.97 2019 Total closing revenue $ 708,145 $ 864,610 $ 940,880 $ 1,136,848 Total closing gross profit $ 116,828 $ 157,376 $ 186,091 $ 219,320 Earnings before income taxes $ 32,370 $ 67,674 $ 92,366 $ 110,535 Net earnings $ 25,412 $ 50,828 $ 69,809 $ 103,614 Per Share Data: Basic earnings per share (1) $ 0.66 $ 1.33 $ 1.82 $ 2.71 Diluted earnings per share (1) $ 0.65 $ 1.31 $ 1.79 $ 2.65 (1) Due to the computation of earnings per share, the sum of the quarterly amounts may not equal the full-year results. We typically experience seasonal variability in our quarterly operating results and capital requirements. Historically, we sell more homes in the first half of the year, which results in more working capital requirements and home closings in the third and fourth quarters. However, during economic downturns or times of certain government incentives, our results may not follow our historical trends.

BUSINESS AND SUMMARY OF SIGNI_2

BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and 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.
Cash and Cash Equivalents	Liquid investments with an initial maturity of three months or less are classified as cash equivalents.
Real Estate	Real estate is stated at cost unless the community or land 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, and capitalized direct overhead costs incurred during development, 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) and 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. 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 home construction and land development costs. Typically, a community's life cycle ranges from three All of our land inventory and related real estate assets are periodically reviewed for recoverability when certain criteria are met, but at least annually, 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. Our analysis is conducted if indication of a decline in value of our land and real estate assets exist. If an asset is deemed to be impaired, the impairment recognized is measured as the amount by which the asset's carrying amount exceeds its fair value. The impairment of a community is allocated to each lot on a straight-line basis. See Note 2 for additional information related to real estate and impairments.
Deposits	Deposits paid related to land option 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 any non-refundable deposits and any ancillary capitalized costs.
Goodwill	In accordance with ASC 350, Intangibles, Goodwill and Other
Property and Equipment, net	Property and equipment, net consists of computer and office equipment, model home furnishings and capitalized sales office costs. Depreciation is generally calculated using the straight-line method over the estimated useful lives of the assets, which range from three
Deferred Costs	The costs are primarily amortized to interest expense using the straight line method which approximates the effective interest method.
Investments in Unconsolidated Entities	We use the equity method of accounting for investments in unconsolidated entities over which we exercise significant influence but do not have a controlling interest. Under the equity method, our share of the unconsolidated entities’ earnings or loss is included in Other income net, or Earnings from financial services unconsolidated entities and other, net, in our income statements. We use the cost method of accounting for investments in unconsolidated entities over which we do not have significant influence, if any. We track cumulative earnings and distributions from each of our ventures. For cash flow classification, to the extent distributions do not exceed cumulative earnings, we designate such distributions as return on capital. Distributions in excess of cumulative earnings are treated as return of capital. We evaluate our investments in unconsolidated entities for impairment when events that trigger an evaluation of recoverability present themselves. See Note 5 for additional information related to investments in unconsolidated entities.
Revenue Recognition	accordance with ASC 606 , Revenue from Contracts with Customers , we apply the following steps in determining the timing and amount of revenue to recognize: (1) identify the contract with our customer; (2) identify the performance obligation(s) in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract, if applicable; and (5) recognize revenue when (or as) we satisfy the performance obligation. The performance obligation and subsequent revenue recognition for our three sources of revenue are outlined below: • Revenue from closings of residential real estate is recognized when closings have occurred, the risks and rewards of ownership are transferred to the buyer, and we have no continuing involvement with the property, which is generally upon the close of escrow. Revenue is reported net of any discounts and incentives. • Revenue from land sales is recognized when a significant down payment is received, title passes and collectability of the receivable is reasonably assured, and we have no continuing involvement with the property, which is generally upon the close of escrow. • Revenue from financial services is recognized when closings have occurred and all financial services have been rendered, which generally upon the close of escrow. Home sale contract assets consist of cash from home closings that are in transit from title companies, which are considered cash in transit and are classified as cash on our accompanying consolidated balance sheet. See "Cash and Cash Equivalents" in this Note 1 for further information. Contract liabilities include home sale deposit liabilities related to sold but unclosed homes, and are classified as Home sale deposits in our accompanying consolidated balance sheet. Substantially all of our home sales are scheduled to close and be recorded as revenue within one year from the date of receiving a customer deposit. Revenue expected to be recognized in any future year related to remaining performance obligations (if any) and contract liabilities expected to be recognized as revenue, excluding revenue pertaining to contracts that have an original expected duration of one year or less, is not material. Revenue from financial services includes estimated future insurance policy renewal commissions as our performance obligations are satisfied upon issuance of the initial policy with a third party broker. The related contract assets for these estimated future renewal commissions are not material. Our three sources of revenue are disaggregated by type in the accompanying consolidated income statements. Cost of Home Closings . Cost of home closings includes direct home construction costs, closing costs, land acquisition and development costs, development period interest and common costs, and impairments, if any. Direct construction costs are accumulated during the period of construction and charged to cost of closings under specific identification methods, as are closing costs. Estimates of costs incurred or to be incurred but not paid are accrued and expensed at the time of closing. Land development, acquisition and common costs are allocated to each lot based on the number of lots remaining to close.
Income Taxes	We account for income taxes using the asset and liability method, which requires that deferred tax assets and liabilities be recognized based on future tax consequences of both temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period when the changes are enacted. We record deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we consider all available objectively verifiable positive and negative evidence, including scheduled reversals of deferred tax liabilities, whether we are in a cumulative loss position, projected future taxable income, tax planning strategies and recent financial operations. If we determine that we will not be able to realize our deferred tax assets in the future, we will record a valuation allowance, which increases the provision for income taxes. We recognize interest and penalties related to unrecognized tax benefits within Provision for income taxes in the accompanying consolidated income statement. Accrued interest and penalties are included within Accrued liabilities in the accompanying consolidated balance sheets. See Note 12 for additional information related to income taxes. We determine our deferred tax assets and liabilities in accordance with ASC 740, Income Taxes ("ASC 740" )
Advertising Costs	We expense advertising costs as they are incurred.
Earnings Per Share	We compute basic earnings per share by dividing net earnings by the weighted average number of common shares outstanding during the period. Diluted earnings per share gives effect to the potential dilution that could occur if securities or contracts to issue common stock that are dilutive were exercised or converted into common stock or resulted in the issuance of common stock that then shared in our earnings. In periods of net losses, no dilution is computed. See Note 9 for additional information related to earnings per share.
Stock-Based Compensation	We account for stock-based compensation in accordance with ASC 718-10, Compensation—Stock Compensation ("ASC 718"). This guidance requires us to estimate forfeitures in calculating the expense related to stock-based compensation. Awards with either a graded or cliff vesting are expensed on a straight-line basis over the life of the award. See Note 11 for additional information on stock-based compensation.
401(k) Retirement Plan	We have a 401(k) plan for all full-time Meritage employees. We match portions of employees’ voluntary contributions
Off-Balance Sheet Arrangements	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, although our participation in such ventures is currently very limited. See Note 5 for additional discussion of our investments in unconsolidated entities.In the normal course of business, we may acquire lots from various development entities pursuant to purchase and option agreements. The purchase price generally approximates the market price at the date the contract is executed (with possible future escalators) and may have staggered purchase schedules. See Note 3 for additional information on off-balance sheet arrangements. We provide surety bonds and letters of credit in support of our obligations relating to the development of our projects and other corporate purposes, in lieu of cash deposits. The amount of these obligations outstanding at any time varies depending on the stage and level of our development activities. Bonds are generally not wholly 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 or letter of credit. We believe it is unlikely that any significant amounts of these bonds or letters of credit will be drawn upon.
Warranty Reserves	We provide home purchasers with limited warranties against certain building defects and 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 for the first year after the close of the home, a major mechanical warranty for two years after the close of the home and a structural warranty that typically extends up to 10 years after 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 may 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.Warranty reserves are included in Accrued liabilities on the accompanying consolidated balance sheets, and additions and adjustments to the reserves are included in Cost of home closings within the accompanying 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 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.
Recently Accounting Pronouncements	In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract ("ASU 2018-15"), which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Entities will need to consider both the nature of the costs and the phase of development in which the implementation costs are incurred to determine whether the costs should be capitalized or expensed. ASU 2018-15 was effective for us beginning January 1, 2020 on a prospective basis to all implementation costs incurred after the date of adoption. The adoption of ASU 2018-15 did not have a material impact on our financial statement disclosures. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2018-13"), which eliminates, adds, and modifies certain disclosure requirements for fair value measurements. Entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU 2018-13 was effective for us beginning January 1, 2020. As we currently only have Level 2 financial instruments, the adoption of ASU 2018-13 did not have a material impact on our financial statement disclosures.
Variable Interest Entities	Based on the provisions of the relevant accounting guidance, we have concluded that when we enter into an option or purchase agreement to acquire land or lots from an entity, a variable interest entity, or “VIE”, may be created. We evaluate all option and purchase agreements and amendments 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 we are, we 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 to acquire additional land into the VIE or dispose of land in the VIE 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 typically contracted to complete development at a fixed cost on behalf of the land owner and any budget savings or shortfalls are 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 Measurement	ASC 820-10 Fair Value Measurement 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.
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 Central: Texas East: Florida, Georgia, North Carolina, South Carolina and Tennessee

BUSINESS AND SUMMARY OF SIGNI_3

BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Property and Equipment, net	At December 31, 2020 and 2019, property and equipment, net consisted of the following (in thousands): At December 31, 2020 2019 Computer and office equipment $ 59,407 $ 57,162 Model home furnishings and capitalized sales office costs 76,398 86,047 Gross property and equipment 135,805 143,209 Accumulated depreciation (96,872) (92,603) Total $ 38,933 $ 50,606
Schedule of Accrued Liabilities	Accrued liabilities at December 31, 2020 and 2019 consisted of the following (in thousands): At December 31, 2020 2019 Accruals related to real estate development and construction activities $ 92,701 $ 74,448 Payroll and other benefits 88,337 67,734 Accrued interest 8,457 8,758 Accrued taxes 34,373 8,459 Warranty reserves 23,743 22,015 Lease liabilities (1) 28,254 34,231 Other accruals 20,256 10,363 Total $ 296,121 $ 226,008
Schedule of Surety Bond and Letter of Credit Obligations	The table below outlines our surety bond and letter of credit obligations (in thousands): At December 31, 2020 2019 Outstanding Estimated work Outstanding Estimated work Sureties: Sureties related to owned projects and lots under contract 478,788 216,708 405,017 186,986 Total Sureties $ 478,788 $ 216,708 $ 405,017 $ 186,986 Letters of Credit (“LOCs”): LOCs for land development 93,661 N/A 57,192 N/A LOCs for general corporate operations 3,750 N/A 3,750 N/A Total LOCs $ 97,411 N/A $ 60,942 N/A
Summary of Changes in Warranty Reserves	A summary of changes in our warranty reserves follows (in thousands): Years Ended December 31, 2020 2019 Balance, beginning of year $ 22,015 $ 24,552 Additions to reserve from new home deliveries 18,503 15,841 Warranty claims (16,775) (18,378) Adjustments to pre-existing reserves — — Balance, end of year $ 23,743 $ 22,015

REAL ESTATE AND CAPITALIZED I_2

REAL ESTATE AND CAPITALIZED INTEREST (Tables)	12 Months Ended
	Dec. 31, 2020
Inventory Disclosure [Abstract]
Schedule of Real Estate	Real estate consists of the following (in thousands): At December 31, 2020 2019 Homes under contract under construction (1) $ 873,365 $ 564,762 Unsold homes, completed and under construction (1) 357,861 686,948 Model homes (1) 82,502 121,340 Finished home sites and home sites under development (2) (3) 1,464,311 1,371,311 $ 2,778,039 $ 2,744,361 (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. (3) Includes land held for sale of $72.7 million and $36.6 million as of December 31, 2020 and 2019, respectively.
Summary of Capitalized Interest	A summary of our capitalized interest is as follows (in thousands): Years Ended December 31, 2020 2019 2018 Capitalized interest, beginning of year $ 82,014 $ 88,454 $ 78,564 Interest incurred 66,289 83,856 85,278 Interest expensed (2,177) (8,370) (785) Interest amortized to cost of home and land closings (87,186) (81,926) (74,603) Capitalized interest, end of year (1) $ 58,940 $ 82,014 $ 88,454 (1) Approximately $217,000, $279,000 and $454,000 of the capitalized interest is related to our joint venture investments and is a component of Investments in unconsolidated entities in our consolidated balance sheet as of December 31, 2020, 2019 and 2018, respectively.

VARIABLE INTEREST ENTITIES AN_2

VARIABLE INTEREST ENTITIES AND CONSOLIDATED REAL ESTATE NOT OWNED (Tables)	12 Months Ended
	Dec. 31, 2020
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 that are not recorded on the balance sheet at December 31, 2020 (dollars in thousands): Projected Number Purchase Option/ Purchase and option contracts recorded on balance sheet as Real estate not owned — $ — $ — Option contracts — non-refundable deposits, committed (1) 8,869 440,660 31,710 Purchase contracts — non-refundable deposits, committed (1) 11,619 360,921 23,761 Purchase and option contracts —refundable deposits, committed 2,246 65,719 1,218 Total committed 22,734 867,300 56,689 Purchase and option contracts — refundable deposits, uncommitted (2) 14,325 423,083 2,845 Total lots under contract or option 37,059 $ 1,290,383 $ 59,534 Total purchase and option contracts not recorded on balance sheet (3) 37,059 $ 1,290,383 $ 59,534 (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 (if any), none of our purchase or option contracts require us to purchase lots. (4) Amount is reflected in our consolidated balance sheet in the line item “Deposits on real estate under option or contract” as of December 31, 2020.

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Dec. 31, 2020
Leases [Abstract]
Lease, Cost	Our short-term lease costs and sublease income are de minimis. Years Ended December 31, 2020 2019 Operating lease expense $ 7,657 $ 6,981 Non-cash lease expense $ 6,037 $ 5,418 Cash payments on lease liabilities $ 9,013 $ 8,058 ROU assets obtained in exchange for new operating lease obligations $ 1,364 $ 11,471 ROU assets are classified within Prepaids, other assets and goodwill on our consolidated balance sheet, while lease liabilities are classified within Accrued liabilities on our consolidated balance sheet. The following table contains additional information about our leases (dollars in thousands): At December 31, 2020 2019 ROU assets $ 21,624 $ 26,332 Lease liabilities $ 28,254 $ 34,231 Weighted-average remaining lease term 4.0 years 4.8 years Weighted-average discount rate (incremental borrowing rate) 4.54 % 4.53 %
Lessee, Operating Lease, Liability, Maturity	Maturities of our operating lease liabilities as of December 31, 2020 are as follows (in thousands): Year ended December 31, 2021 $ 8,985 2022 8,043 2023 6,628 2024 3,760 2025 3,457 Thereafter 3,841 Total payments 34,714 Less: imputed interest (6,460) Present value of lease liabilities $ 28,254

INVESTMENTS IN UNCONSOLIDATED_2

INVESTMENTS IN UNCONSOLIDATED ENTITIES (Tables)	12 Months Ended
	Dec. 31, 2020
Equity Method Investments and Joint Ventures [Abstract]
Summary of Condensed Financial Information Related to Unconsolidated Equity Method Joint Ventures	Summarized condensed financial information related to unconsolidated joint ventures that are accounted for using the equity method was as follows (in thousands): At December 31, 2020 2019 Assets: Cash $ 4,656 $ 6,329 Real estate 5,745 6,654 Other assets 5,118 4,382 Total assets $ 15,519 $ 17,365 Liabilities and equity: Accounts payable and other liabilities $ 5,588 $ 6,580 Equity of: Meritage (1) 5,330 5,678 Other 4,601 5,107 Total liabilities and equity $ 15,519 $ 17,365 Years Ended December 31, 2020 2019 2018 Revenue $ 39,823 $ 53,841 $ 43,672 Costs and expenses (31,918) (31,375) (17,294) Net earnings of unconsolidated entities $ 7,905 $ 22,466 $ 26,378 Meritage’s share of pre-tax earnings (1) (2) $ 4,559 $ 11,945 $ 16,396 (1) Balance represents Meritage’s interest, as reflected in the financial records of the respective joint ventures. This balance may differ from the balance reflected 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 consolidated financial statements, the balances above do not include $217,000, $279,000 and $454,000 of capitalized interest that is a component of our investment balances at December 31, 2020, 2019 and 2018, respectively. (2) Our share of pre-tax earnings is recorded in Earnings from financial services unconsolidated entities and other, net or Other income, net, as applicable, 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 BORRO_2

LOANS PAYABLE AND OTHER BORROWINGS (Tables)	12 Months Ended
	Dec. 31, 2020
Debt Disclosure [Abstract]
Schedule of Loans Payable and Other Borrowings	Loans payable and other borrowings consist of the following (in thousands): At December 31, 2020 2019 Other borrowings, real estate note payable (1) $ 23,094 $ 22,876 $780.0 million unsecured revolving credit facility with interest approximating LIBOR (approximately 0.14% at December 31, 2020) plus 1.375% or Prime (3.25% at December 31, 2020) plus 0.375% — — Total $ 23,094 $ 22,876 (1) Reflects balance of non-recourse non-interest bearing notes payable in connection with land purchases.

SENIOR NOTES, NET (Tables)

SENIOR NOTES, NET (Tables)	12 Months Ended
	Dec. 31, 2020
Debt Disclosure [Abstract]
Schedule of Senior and Convertible Senior Notes	Senior notes, net consist of the following (in thousands): At December 31, 2020 2019 7.00% senior notes due 2022 $ 300,000 $ 300,000 6.00% senior notes due 2025. At December 31, 2020 and December 31, 2019 there was approximately $3,614 and $4,432 in net unamortized premium, respectively. (1) 403,614 404,432 5.125% senior notes due 2027 300,000 300,000 Net debt issuance costs (6,623) (8,327) Total $ 996,991 $ 996,105 (1) $200.0 million of the total $400.0 million of 6.00% Senior Notes due 2025 outstanding at December 31, 2020 was issued at par and had no unamortized premium.
Schedule of Principal Maturities of Senior and Senior Convertible Notes	Scheduled principal maturities of our senior and notes as of December 31, 2020 follow (in thousands): Year Ended December 31, 2021 $ — 2022 300,000 2023 — 2024 — 2025 400,000 Thereafter 300,000 Total $ 1,000,000

FAIR VALUE DISCLOSURES (Tables)

FAIR VALUE DISCLOSURES (Tables)	12 Months Ended
	Dec. 31, 2020
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): At December 31, 2020 2019 Aggregate Estimated Fair Aggregate Estimated Fair 7.00% senior notes $ 300,000 $ 319,758 $ 300,000 $ 327,390 6.00% senior notes $ 400,000 $ 451,913 $ 400,000 $ 449,200 5.125% senior notes $ 300,000 $ 333,328 $ 300,000 $ 319,500
Schedule of Real Estate Assets Measured at Fair Value	Our Real estate assets measured at fair value are as follows (in thousands): Year Ended December 31, 2020 2019 Description: Adjusted basis of long-lived real estate assets $ 46,917 $ 42,949 Impairments $ 24,852 $ 7,293 Initial basis of long-lived real estate assets $ 71,769 $ 50,242

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2020
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): Years Ended December 31, 2020 2019 2018 Basic weighted average number of shares outstanding 37,718 38,100 40,107 Effect of dilutive securities: Unvested restricted stock 766 791 621 Diluted average shares outstanding 38,484 38,891 40,728 Net earnings as reported $ 423,475 $ 249,663 $ 227,332 Basic earnings per share $ 11.23 $ 6.55 $ 5.67 Diluted earnings per share $ 11.00 $ 6.42 $ 5.58

ACQUISITIONS AND GOODWILL (Tabl

ACQUISITIONS AND GOODWILL (Tables)	12 Months Ended
	Dec. 31, 2020
Business Acquisitions and Goodwill [Abstract]
Summary of Changes in the Carrying Amount of Goodwill	A summary of changes in the carrying amount of goodwill follows (in thousands): West Central East Financial Services Corporate Total Balance at January 1, 2019 $ — $ — $ 32,962 $ — $ — $ 32,962 Additions — — — — — — Balance at December 31, 2019 — — 32,962 — — 32,962 Additions — — — — — — Balance at December 31, 2020 $ — $ — $ 32,962 $ — $ — $ 32,962

STOCK BASED AND DEFERRED COMP_2

STOCK BASED AND DEFERRED COMPENSATION (Tables)	12 Months Ended
	Dec. 31, 2020
Share-based Payment Arrangement [Abstract]
Summary of Nonvested (Restricted) Shares and Units Activity	We grant time-based and performance-based restricted shares or units. Performance-based restricted shares are only granted to executive officers. All performance shares only vest upon the attainment of certain financial and operational criteria as established and approved by our Board of Directors. The number of shares that may be issued to the award recipients may be greater or lesser than the target award amount depending on actual performance achieved as compared to the performance targets set forth in the awards. Nonvested Weighted Nonvested Weighted Outstanding at January 1, 2018 982,652 $ 35.59 287,005 $ 35.80 Granted 315,247 46.07 157,637 45.20 Vested (Earned/Released) (288,709) 37.93 (36,801) 41.17 Forfeited (1) (85,900) 37.53 (29,386) 41.17 Outstanding as of December 31, 2018 923,290 38.25 378,455 38.77 Granted (2) 385,328 44.46 115,191 40.46 Vested (Earned/Released) (347,555) 37.15 (87,737) 34.39 Forfeited (1) (126,443) 40.45 — — Outstanding at December 31, 2019 834,620 41.25 405,909 40.20 Granted (3) 225,593 72.51 80,193 61.06 Vested (Earned/Released) (234,842) 38.80 (178,174) 34.10 Forfeited (1) (34,754) 46.31 — — Outstanding at December 31, 2020 790,617 $ 50.67 307,928 $ 49.16 (1) Forfeitures on time-based nonvested shares are a result of terminations of employment, while forfeitures on performance-based nonvested shares are a result of failing to attain certain goals as outlined in our executive officers' compensation agreements. (2) Performance-based shares granted for the year ended December 31, 2019 includes 21,039 shares that were issued as a result of the performance achievement exceeding the performance targets related to grants to our executive officers for the year ended December 31, 2016. These shares vested in March 2019. (3) Performance-based shares granted for the year ended December 31, 2020 includes 24,054 shares that were issued as a result of the performance achievement exceeding the performance targets related to grants to our executive officers for the year ended December 31, 2017. These shares vested in February 2020.
Summary of Compensation Expense and Stock Award Activity	Below is a summary of compensation expense and stock award activity (in thousands): Years Ended December 31, 2020 2019 2018 Stock-based compensation expense $ 19,995 $ 19,607 $ 17,170
Summary of Additional Information Regarding Stock Plan	The following table includes additional information regarding our Plan (dollars in thousands): At December 31, 2020 2019 Unrecognized stock-based compensation cost $ 22,687 $ 22,341 Weighted average years expense recognition period 2.01 1.70 Total equity awards outstanding (1) 1,098,545 1,240,529 (1) Includes unvested restricted stock, performance-based awards (assuming 100% payout) and restricted stock units.

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense	Components of income tax expense are as follows (in thousands): Years Ended December 31, 2020 2019 2018 Current taxes: Federal $ 99,174 $ 41,019 $ 37,926 State 21,012 11,644 9,162 120,186 52,663 47,088 Deferred taxes: Federal (9,725) (8) 6,687 State (370) 627 2,147 (10,095) 619 8,834 Total $ 110,091 $ 53,282 $ 55,922
Schedule of Income Tax Reconciliation	Income taxes for the years ended December 31, 2020, 2019 and 2018, differ from the expected amounts computed using the federal statutory income tax rate of 21% as a result of the following (in thousands): Years Ended December 31, 2020 2019 2018 Expected taxes at current federal statutory income tax rate $ 112,049 $ 63,618 $ 59,483 State income taxes, net of federal tax benefit 16,307 9,999 8,934 Tax Act revaluation of deferred tax balances — — (2,741) Federal tax credits (16,523) (20,582) (10,330) Non-deductible costs and other (1,742) 247 576 Income tax expense $ 110,091 $ 53,282 $ 55,922
Schedule of Deferred Tax Assets and Liabilities	Deferred tax assets and liabilities are comprised of timing differences (in thousands) as follows: At December 31, 2020 2019 Deferred tax assets: Real estate $ 18,710 $ 12,090 Warranty reserve 5,588 5,190 Wages payable 7,798 6,429 Equity-based compensation 7,114 5,991 Accrued expenses 193 75 Net operating loss carry-forwards — 752 Other 5,498 4,488 Total deferred tax assets 44,901 35,015 Deferred tax liabilities: Goodwill 879 3 Prepaids 1,487 2,113 Fixed assets 6,495 6,982 Total deferred tax liabilities 8,861 9,098 Deferred tax assets, net 36,040 25,917 Other deferred tax liabilities - state franchise taxes 4,476 4,449 Net deferred tax assets and liabilities $ 31,564 $ 21,468

SUPPLEMENTAL DISCLOSURE OF CA_2

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2020
Supplemental Cash Flow Elements [Abstract]
Schedule of Supplemental Cash Flow Information	The following table presents certain supplemental cash flow information (in thousands): Years Ended December 31, 2020 2019 2018 Cash paid during the year for: Interest, net of interest capitalized $ 355 $ 10,810 $ 4,229 Income taxes $ 84,739 $ 64,658 $ 56,350 Non-cash operating activities: Real estate acquired through notes payable $ 16,597 $ 11,721 $ 13,174

OPERATING AND REPORTING SEGME_2

OPERATING AND REPORTING SEGMENTS (Tables)	12 Months Ended
	Dec. 31, 2020
Segment Reporting [Abstract]
Schedule of Segment Information	The following segment information is in thousands: Years Ended December 31, 2020 2019 2018 Homebuilding revenue (1): West $ 1,800,223 $ 1,422,516 $ 1,436,334 Central 1,282,339 1,038,052 1,013,878 East 1,399,558 1,189,915 1,063,207 Consolidated total 4,482,120 3,650,483 3,513,419 Homebuilding segment operating income: West 213,918 141,435 134,852 Central 185,202 101,686 92,925 East 157,971 87,285 59,522 Total homebuilding segment operating income 557,091 330,406 287,299 Financial services segment profit 16,388 20,579 24,044 Corporate and unallocated costs (2) (44,398) (43,612) (38,521) Interest expense (2,177) (8,370) (785) Other income, net (3) 6,662 9,577 11,217 Loss on early extinguishment of debt — (5,635) — Net earnings before income taxes $ 533,566 $ 302,945 $ 283,254 (1) Homebuilding revenue includes the following land closing revenue, by segment: Years Ended December 31, Land closing revenue: 2020 2019 2018 West $ 4,974 $ 12,463 $ 18,508 Central 8,678 4,297 7,657 East 4,079 29,094 12,542 Total $ 17,731 $ 45,854 $ 38,707 (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 reporting segments. (3) For the year ended December 31, 2018, Other income, net includes a favorable $4.8 million legal settlement from long-standing litigation related to a previous joint venture in Nevada.
Schedule of Land Closing Revenue	Homebuilding revenue includes the following land closing revenue, by segment: Years Ended December 31, Land closing revenue: 2020 2019 2018 West $ 4,974 $ 12,463 $ 18,508 Central 8,678 4,297 7,657 East 4,079 29,094 12,542 Total $ 17,731 $ 45,854 $ 38,707
Schedule of Segment Assets	At December 31, 2020 West Central East Financial Services Corporate and Total Deposits on real estate under option or contract $ 22,493 $ 11,154 $ 25,887 $ — $ — $ 59,534 Real estate 1,154,488 814,919 808,632 — — 2,778,039 Investments in unconsolidated entities 261 3,090 — — 999 4,350 Other assets 51,271 (1) 122,933 (2) 81,601 (3) 612 766,058 (4) 1,022,475 Total assets $ 1,228,513 $ 952,096 $ 916,120 $ 612 $ 767,057 $ 3,864,398 (1) Balance consists primarily of cash and property and equipment. (2) Balance consists primarily of cash, development reimbursements from local municipalities and prepaids and other assets. (3) Balance consists primarily of cash, goodwill, prepaids and other assets, and property and equipment. (4) Balance consists primarily of cash, deferred tax assets and prepaids and other assets. At December 31, 2019 West Central East Financial Services Corporate and Total Deposits on real estate under option or contract $ 10,568 $ 10,963 $ 29,370 $ — $ — $ 50,901 Real estate 1,223,949 708,786 811,626 — — 2,744,361 Investments in unconsolidated entities 260 3,508 — — 675 4,443 Other assets 58,173 (1) 107,791 (2) 83,475 (3) 765 348,340 (4) 598,544 Total assets $ 1,292,950 $ 831,048 $ 924,471 $ 765 $ 349,015 $ 3,398,249 (1) Balance consists primarily of cash and property and equipment. (2) Balance consists primarily of development reimbursements from local municipalities and prepaids and other assets. (3) Balance consists primarily of goodwill, prepaids and other assets, and property and equipment. (4) Balance consists primarily of cash.

SELECTED QUARTERLY FINANCIAL _2

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)	12 Months Ended
	Dec. 31, 2020
Quarterly Financial Information Disclosure [Abstract]
Schedule of Quarterly Results	Quarterly results for the years ended December 31, 2020 and 2019 follow (in thousands, except per share amounts): First Second Third Fourth 2020 Total closing revenue $ 901,013 $ 1,033,079 $ 1,138,091 $ 1,409,937 Total closing gross profit $ 178,743 $ 219,248 $ 244,077 $ 317,546 Earnings before income taxes $ 86,833 $ 115,862 $ 135,506 $ 195,365 Net earnings $ 71,152 $ 90,678 $ 109,118 $ 152,527 Per Share Data: Basic earnings per share (1) $ 1.87 $ 2.41 $ 2.90 $ 4.06 Diluted earnings per share (1) $ 1.83 $ 2.38 $ 2.84 $ 3.97 2019 Total closing revenue $ 708,145 $ 864,610 $ 940,880 $ 1,136,848 Total closing gross profit $ 116,828 $ 157,376 $ 186,091 $ 219,320 Earnings before income taxes $ 32,370 $ 67,674 $ 92,366 $ 110,535 Net earnings $ 25,412 $ 50,828 $ 69,809 $ 103,614 Per Share Data: Basic earnings per share (1) $ 0.66 $ 1.33 $ 1.82 $ 2.71 Diluted earnings per share (1) $ 0.65 $ 1.31 $ 1.79 $ 2.65 (1) Due to the computation of earnings per share, the sum of the quarterly amounts may not equal the full-year results.

BUSINESS AND SUMMARY OF SIGNI_4

BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)regionstatecommunity	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)
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	195
Deposits on real estate under option or contract	$ 59,534	$ 50,901
Depreciation expense	18,900	17,300	$ 16,300
Debt issuance costs related to credit facility, net	4,700	3,300
Advertising expense	10,500	14,600	15,400
Contribution to the 401(K) Retirement Plan	4,700	4,100	$ 3,700
Increase (decrease) to warranty reserve balance	0	0
Right of use asset	21,624	26,332
Present value of lease liabilities	$ 28,254	34,231
Non-Structural Items [Member]
Organization and Presentation [Line Items]
Warranty period following home closings	2 years
Cash and Cash Equivalents [Member]
Organization and Presentation [Line Items]
Amounts in transit from title companies for home closings	$ 61,300	$ 54,500
Minimum [Member]
Organization and Presentation [Line Items]
Base price per house for sale range	$ 191
Community life cycle range	3 years
Property and equipment useful life	3 years
Maximum [Member]
Organization and Presentation [Line Items]
Base price per house for sale range	$ 921
Community life cycle range	5 years
Property and equipment useful life	7 years
Maximum [Member] | Structural [Member]
Organization and Presentation [Line Items]
Warranty period following home closings	10 years

BUSINESS AND SUMMARY OF SIGNI_5

BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Property and Equipment, net (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Gross property and equipment	$ 135,805	$ 143,209
Accumulated depreciation	(96,872)	(92,603)
Total	38,933	50,606
Real estate	2,778,039	2,744,361
Computer and office equipment [Member]
Property, Plant and Equipment [Line Items]
Gross property and equipment	59,407	57,162
Model home furnishings [Member]
Property, Plant and Equipment [Line Items]
Gross property and equipment	$ 76,398	$ 86,047

BUSINESS AND SUMMARY OF SIGNI_6

BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Accrued Liabilities
Accruals related to real estate development and construction activities	$ 92,701	$ 74,448
Payroll and other benefits	88,337	67,734
Accrued interest	8,457	8,758
Accrued taxes	34,373	8,459
Total warranty reserves	23,743	22,015	$ 24,552
Lease liabilities	28,254	34,231
Other accruals	20,256	10,363
Total	$ 296,121	$ 226,008
Operating Lease, Liability, Statement of Financial Position [Extensible List]	us-gaap:AccruedLiabilitiesCurrentAndNoncurrent	us-gaap:AccruedLiabilitiesCurrentAndNoncurrent

BUSINESS AND SUMMARY OF SIGNI_7

BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Surety Bond and Letter of Credit Obligations (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Loss Contingencies [Line Items]
Total LOCs	$ 97,411	$ 60,942
Sureties related to owned projects and lots under contract [Member]
Loss Contingencies [Line Items]
Outstanding	478,788	405,017
Estimated work remaining to complete (unaudited)	216,708	186,986
Total Sureties [Member]
Loss Contingencies [Line Items]
Outstanding	478,788	405,017
Estimated work remaining to complete (unaudited)	216,708	186,986
LOCs for land development [Member]
Loss Contingencies [Line Items]
Total LOCs	93,661	57,192
LOCs for general corporate operations [Member]
Loss Contingencies [Line Items]
Total LOCs	$ 3,750	$ 3,750

BUSINESS AND SUMMARY OF SIGNI_8

BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Changes in Warranty Reserves (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Warranty Reserves
Balance, beginning of year	$ 22,015	$ 24,552
Additions to reserve from new home deliveries	18,503	15,841
Warranty claims	(16,775)	(18,378)
Adjustments to pre-existing reserves	0	0
Balance, end of year	$ 23,743	$ 22,015

REAL ESTATE AND CAPITALIZED I_3

REAL ESTATE AND CAPITALIZED INTEREST - Schedule of Real Estate (Details) - USD ($) $ in Thousands		Dec. 31, 2020	Dec. 31, 2019
Real Estate Properties
Homes under contract under construction	[1]	$ 873,365	$ 564,762
Unsold homes, completed and under construction	[1]	357,861	686,948
Model homes	[1]	82,502	121,340
Finished home sites and home sites under development	[2]	1,464,311	1,371,311
Real estate		2,778,039	2,744,361
Land held for sale		$ 72,700	$ 36,600
[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. (3) Includes land held for sale of $72.7 million and $36.6 million as of December 31, 2020 and 2019, respectively.

REAL ESTATE AND CAPITALIZED I_4

REAL ESTATE AND CAPITALIZED INTEREST - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Real Estate [Abstract]
Impairment of real estate	$ 24.9	$ 7.3

REAL ESTATE AND CAPITALIZED I_5

REAL ESTATE AND CAPITALIZED INTEREST - Summary of Capitalized Interest (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2020		Dec. 31, 2019		Dec. 31, 2018
Summary of capitalized interest
Capitalized interest, beginning of year		$ 82,014	[1]	$ 88,454	[1]	$ 78,564
Interest incurred		66,289		83,856		85,278
Interest expensed		(2,177)		(8,370)		(785)
Interest amortized to cost of home and land closings		(87,186)		(81,926)		(74,603)
Capitalized interest, end of year	[1]	$ 58,940		$ 82,014		$ 88,454
[1]	Approximately $217,000, $279,000 and $454,000 of the capitalized interest is related to our joint venture investments and is a component of Investments in unconsolidated entities in our consolidated balance sheet as of December 31, 2020, 2019 and 2018, respectively.

REAL ESTATE AND CAPITALIZED I_6

REAL ESTATE AND CAPITALIZED INTEREST - Summary of Capitalized Interest (Footnote) (Details) - USD ($) $ in Thousands	Dec. 31, 2020		Dec. 31, 2019		Dec. 31, 2018		Dec. 31, 2017
Schedule of Equity Method Investments [Line Items]
Capitalized interest	$ 58,940	[1]	$ 82,014	[1]	$ 88,454	[1]	$ 78,564
Equity-method land ventures
Schedule of Equity Method Investments [Line Items]
Capitalized interest	$ 217		$ 279		$ 454
[1]	Approximately $217,000, $279,000 and $454,000 of the capitalized interest is related to our joint venture investments and is a component of Investments in unconsolidated entities in our consolidated balance sheet as of December 31, 2020, 2019 and 2018, respectively.

VARIABLE INTEREST ENTITIES AN_3

VARIABLE INTEREST ENTITIES AND CONSOLIDATED REAL ESTATE NOT OWNED - Summary of Lots Under Option (Details) $ in Thousands	Dec. 31, 2020USD ($)lot
Projected Number of Lots (unaudited)
Purchase and option contracts recorded on balance sheet as Real estate not owned | lot	0
Option contracts — non-refundable deposits, committed | lot	8,869	[1]
Purchase contracts — non-refundable deposits, committed | lot	11,619	[1]
Purchase and option contracts —refundable deposits, committed | lot	2,246
Total committed | lot	22,734
Purchase and option contracts — refundable deposits, uncommitted | lot	14,325	[2]
Total lots under contract or option | lot	37,059
Total purchase and option contracts not recorded on balance sheet (3) | lot	37,059
Purchase Price (unaudited)
Purchase and option contracts recorded on balance sheet as Real estate not owned	$ 0
Option contracts — non-refundable deposits, committed	440,660	[1]
Purchase contracts — non-refundable deposits, committed	360,921	[1]
Purchase and option contracts —refundable deposits, committed	65,719
Total committed	867,300
Purchase and option contracts — refundable deposits, uncommitted	423,083	[2]
Total lots under contract or option	1,290,383
Total purchase and option contracts not recorded on balance sheet (3)	1,290,383
Option/ Earnest  Money Deposits–Cash
Purchase and option contracts recorded on balance sheet as Real estate not owned	0
Option contracts — non-refundable deposits, committed	31,710	[1]
Purchase contracts — non-refundable deposits, committed	23,761	[1]
Purchase and option contracts —refundable deposits, committed	1,218
Total committed	56,689
Purchase and option contracts — refundable deposits, uncommitted	2,845	[2]
Total lots under contract or option	59,534
Total purchase and option contracts not recorded on balance sheet (3)	$ 59,534	[3]
[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 (if any), none of our purchase or option contracts require us to purchase lots.
[3]	Amount is reflected in our consolidated balance sheet in the line item “Deposits on real estate under option or contract” as of December 31, 2020.

LEASES - Lease Cost (Details)

LEASES - Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Operating lease expense	$ 7,657	$ 6,981
Non-cash lease expense	6,037	5,418
Cash payments on lease liabilities	9,013	8,058
ROU assets obtained in exchange for new operating lease obligations	1,364	11,471
ROU assets	21,624	26,332
Lease liabilities	$ 28,254	$ 34,231
Weighted-average remaining lease term	4 years	4 years 9 months 18 days
Weighted-average discount rate (incremental borrowing rate)	4.54%	4.53%
Operating Lease, Liability, Statement of Financial Position [Extensible List]	us-gaap:AccruedLiabilitiesCurrentAndNoncurrent	us-gaap:AccruedLiabilitiesCurrentAndNoncurrent

LEASES - Schedule of Operating

LEASES - Schedule of Operating Lease Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2021	$ 8,985
2022	8,043
2023	6,628
2024	3,760
2025	3,457
Thereafter	3,841
Total payments	34,714
Less: imputed interest	(6,460)
Present value of lease liabilities	$ 28,254	$ 34,231

INVESTMENTS IN UNCONSOLIDATED_3

INVESTMENTS IN UNCONSOLIDATED ENTITIES - Narrative (Details) $ in Thousands	Dec. 31, 2020USD ($)joint_venture		Dec. 31, 2019USD ($)		Dec. 31, 2018USD ($)		Dec. 31, 2017USD ($)
Schedule of Equity Method Investments [Line Items]
Investments in unconsolidated entities	$ 4,350		$ 4,443
Capitalized interest	$ 58,940	[1]	82,014	[1]	$ 88,454	[1]	$ 78,564
Equity-method land ventures
Schedule of Equity Method Investments [Line Items]
Number of joint ventures | joint_venture	1
Capitalized interest	$ 217		279		$ 454
Mortgage joint ventures [Member]
Schedule of Equity Method Investments [Line Items]
Number of joint ventures | joint_venture	1
Investments in unconsolidated entities	$ 1,000		$ 700
[1]	Approximately $217,000, $279,000 and $454,000 of the capitalized interest is related to our joint venture investments and is a component of Investments in unconsolidated entities in our consolidated balance sheet as of December 31, 2020, 2019 and 2018, respectively.

INVESTMENTS IN UNCONSOLIDATED_4

INVESTMENTS IN UNCONSOLIDATED ENTITIES - Summary of Condensed Financial Information Related to Unconsolidated Equity Method Joint Ventures, Assets Liabilities and Equity (Details) - USD ($) $ in Thousands		Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Assets
Real estate		$ 2,778,039	$ 2,744,361
Other assets		1,022,475	598,544
Total assets		3,864,398	3,398,249
Equity of:
Meritage		2,347,868	1,973,990	$ 1,720,755	$ 1,576,825
Total liabilities and stockholders’ equity		3,864,398	3,398,249
Equity Method Investment, Nonconsolidated Investee or Group of Investees
Assets
Cash		4,656	6,329
Real estate		5,745	6,654
Other assets		5,118	4,382
Total assets		15,519	17,365
Liabilities and equity:
Accounts payable and other liabilities		5,588	6,580
Equity of:
Meritage	[1]	5,330	5,678
Other		4,601	5,107
Total liabilities and stockholders’ equity		$ 15,519	$ 17,365
[1]	Balance represents Meritage’s interest, as reflected in the financial records of the respective joint ventures. This balance may differ from the balance reflected 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 consolidated financial statements, the balances above do not include $217,000, $279,000 and $454,000 of capitalized interest that is a component of our investment balances at December 31, 2020, 2019 and 2018, respectively.

INVESTMENTS IN UNCONSOLIDATED_5

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								12 Months Ended
		Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Financial information related to unconsolidated joint ventures, Operations
Net earnings		$ 152,527	$ 109,118	$ 90,678	$ 71,152	$ 103,614	$ 69,809	$ 50,828	$ 25,412	$ 423,475	$ 249,663	$ 227,332
Equity Method Investment, Nonconsolidated Investee or Group of Investees
Financial information related to unconsolidated joint ventures, Operations
Revenue										39,823	53,841	43,672
Costs and expenses										(31,918)	(31,375)	(17,294)
Net earnings										7,905	22,466	26,378
Meritage’s share of pre-tax earnings	[1],[2]									$ 4,559	$ 11,945	$ 16,396
[1]	Balance represents Meritage’s interest, as reflected in the financial records of the respective joint ventures. This balance may differ from the balance reflected 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 consolidated financial statements, the balances above do not include $217,000, $279,000 and $454,000 of capitalized interest that is a component of our investment balances at December 31, 2020, 2019 and 2018, respectively.
[2]	Our share of pre-tax earnings is recorded in Earnings from financial services unconsolidated entities and other, net or Other income, net, as applicable, 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 BORRO_3

LOANS PAYABLE AND OTHER BORROWINGS - Schedule of Loans Payable and Other Borrowings (Details) - USD ($)		12 Months Ended
		Dec. 31, 2020	Dec. 31, 2019
Other borrowings, real estate note payable [Member]
Line of Credit Facility [Line Items]
Loans payable and other borrowings	[1]	$ 23,094,000	$ 22,876,000
Line of credit [Member] | Revolving credit facility [Member]
Line of Credit Facility [Line Items]
Loans payable and other borrowings		0	0
Current borrowing capacity		$ 780,000,000
Line of credit [Member] | Revolving credit facility [Member] | London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Base rate		0.14%
Basis spread on variable rate		1.375%
Line of credit [Member] | Revolving credit facility [Member] | Prime Rate [Member]
Line of Credit Facility [Line Items]
Base rate		3.25%
Basis spread on variable rate		0.375%
Loans payable and other borrowings total [Member]
Line of Credit Facility [Line Items]
Loans payable and other borrowings		$ 23,094,000	$ 22,876,000
[1]	Reflects balance of non-recourse non-interest bearing notes payable in connection with land purchases.

LOANS PAYABLE AND OTHER BORRO_4

LOANS PAYABLE AND OTHER BORROWINGS - Narrative (Details)	12 Months Ended
	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Line of Credit Facility [Line Items]
Repayments	$ 500,000,000	$ 90,000,000
Proceeds from lines of credit	500,000,000	90,000,000	$ 285,000,000
Total LOCs	97,411,000	60,942,000
Revolving credit facility [Member] | Line of credit [Member]
Line of Credit Facility [Line Items]
Current borrowing capacity	780,000,000
Maximum borrowing capacity	880,000,000
Minimum tangible net worth	$ 1,500,000,000
Leverage ratio	0.60
Interest coverage ratio	1.50
Outstanding borrowings under Credit Facility	$ 0	$ 0
Total LOCs	97,400,000
Line of credit facility, remaining borrowing capacity	$ 682,600,000

SENIOR NOTES, NET - Schedule of

SENIOR NOTES, NET - Schedule of Senior and Convertible Senior Notes (Details) - Senior Notes [Member] - USD ($) $ in Thousands		Dec. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Net debt issuance costs		$ (6,623)	$ (8,327)
Senior and convertible senior notes, net		996,991	996,105
7.00% senior notes due 2022 [Member]
Debt Instrument [Line Items]
Senior and convertible senior notes, gross		300,000	300,000
6.00% senior notes due 2025
Debt Instrument [Line Items]
Senior and convertible senior notes, gross	[1]	403,614	404,432
5.125% senior notes due 2027 [Member]
Debt Instrument [Line Items]
Senior and convertible senior notes, gross		$ 300,000	$ 300,000
[1]	$200.0 million of the total $400.0 million of 6.00% Senior Notes due 2025 outstanding at December 31, 2020 was issued at par and had no unamortized premium.

SENIOR NOTES, NET - Schedule _2

SENIOR NOTES, NET - Schedule of Senior and Convertible Senior Notes (Descriptors) (Details) - Senior Notes [Member] - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Jun. 30, 2015
6.00% senior notes due 2025 [Member]
Debt Instrument [Line Items]
Aggregate Principal	$ 200,000,000		$ 200,000,000
Debt instrument, stated rate	6.00%	6.00%	6.00%
Unamortized premium		$ 0
Senior Notes Due Two Thousand Twenty Five, Combined Amount [Member]
Debt Instrument [Line Items]
Aggregate Principal	$ 400,000,000
Debt instrument, stated rate	6.00%	6.00%
Unamortized premium	$ 3,614,000	$ 4,432,000

SENIOR NOTES, NET - Narrative (

SENIOR NOTES, NET - Narrative (Details) - USD ($)	1 Months Ended	3 Months Ended		12 Months Ended
	Jun. 30, 2017	Dec. 31, 2020	Mar. 31, 2018	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Jun. 30, 2015	Dec. 31, 2013	Apr. 30, 2012	Dec. 31, 2011
Debt Instrument [Line Items]
Percentage of wholly owned subsidiary		100.00%		100.00%
Loss on extinguishment of debt				$ 0	$ 5,635,000	$ 0
Senior Notes [Member] | 7.15% senior notes due 2020 [Member]
Debt Instrument [Line Items]
Aggregate principal amount of offering										$ 200,000,000
Debt instrument, stated rate										7.15%
Add-on to existing 7.50% senior notes								$ 100,000,000
Effective percentage of debt instrument										7.50%
Loss on extinguishment of debt		$ 5,600,000
Senior Notes [Member] | 7.00% senior notes due 2022 [Member]
Debt Instrument [Line Items]
Aggregate principal amount of offering									$ 300,000,000
Debt instrument, stated rate		7.00%		7.00%	7.00%				7.00%
Senior Notes [Member] | 6.25% senior notes due 2015 [Member]
Debt Instrument [Line Items]
Debt instrument, stated rate									6.25%
Aggregate principal amount repurchased									$ 285,000,000
Senior Notes [Member] | 7.731% senior subordinated notes due 2017 [Member]
Debt Instrument [Line Items]
Debt instrument, stated rate									7.731%
Aggregate principal amount repurchased									$ 26,100,000
Senior Notes [Member] | 6.00% senior notes due 2025 [Member]
Debt Instrument [Line Items]
Aggregate principal amount of offering		$ 200,000,000		$ 200,000,000			$ 200,000,000
Debt instrument, stated rate		6.00%		6.00%	6.00%		6.00%
Senior Notes [Member] | Senior Notes Due 2025, Additional Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount of offering			$ 200,000,000
Debt issuance price, percentage			103.00%
Senior Notes [Member] | Senior Notes Due Two Thousand Twenty Five, Combined Amount [Member]
Debt Instrument [Line Items]
Aggregate principal amount of offering		$ 400,000,000		$ 400,000,000
Debt instrument, stated rate		6.00%		6.00%	6.00%
Senior Notes [Member] | 4.50% senior notes due 2018 [Member]
Debt Instrument [Line Items]
Debt instrument, stated rate			4.50%
Repayments of debt			$ 175,000,000
Senior Notes [Member] | 5.125% senior notes due 2027 [Member]
Debt Instrument [Line Items]
Aggregate principal amount of offering	$ 300,000,000
Debt instrument, stated rate	5.125%	5.125%		5.125%	5.125%
Senior Notes [Member] | 1.875% convertible senior notes due 2032 [Member]
Debt Instrument [Line Items]
Aggregate principal amount repurchased	$ 126,500,000
Percentage of principal in the event of a repurchase	100.00%
Senior Notes [Member] | 1.875% convertible senior notes due 2032 [Member] | Privately negotiated transactions
Debt Instrument [Line Items]
Aggregate principal amount repurchased	$ 51,900,000
Senior Notes [Member] | 1.875% convertible senior notes due 2032 [Member] | Remaining redemptions
Debt Instrument [Line Items]
Aggregate principal amount repurchased	$ 74,600,000

SENIOR NOTES, NET - Schedule _3

SENIOR NOTES, NET - Schedule of Principal Maturities of Senior and Senior Convertible Notes (Details) - Senior Notes [Member] - Senior and senior convertible notes [Member] $ in Thousands	Dec. 31, 2020USD ($)
Long-term Debt, Fiscal Year Maturity [Abstract]
2021	$ 0
2022	300,000
2023	0
2024	0
2025	400,000
Thereafter	300,000
Total	$ 1,000,000

FAIR VALUE DISCLOSURES - Schedu

FAIR VALUE DISCLOSURES - Schedule of Fair Value of Fixed-Rate Debt (Details) - Senior Notes [Member] - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Mar. 31, 2018	Jun. 30, 2017	Jun. 30, 2015	Apr. 30, 2012	Dec. 31, 2011
4.50% senior notes [Member]
Fair value of fixed-rate debt
Debt instrument, stated rate			4.50%
7.15% senior notes [Member]
Debt Instrument [Line Items]
Aggregate Principal							$ 200,000,000
Fair value of fixed-rate debt
Debt instrument, stated rate							7.15%
7.00% senior notes [Member]
Debt Instrument [Line Items]
Aggregate Principal						$ 300,000,000
Fair value of fixed-rate debt
Debt instrument, stated rate	7.00%	7.00%				7.00%
7.00% senior notes [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	319,758,000	$ 327,390,000
6.00% senior notes [Member]
Debt Instrument [Line Items]
Aggregate Principal	$ 200,000,000				$ 200,000,000
Fair value of fixed-rate debt
Debt instrument, stated rate	6.00%	6.00%			6.00%
6.00% senior notes [Member] | Level 2 [Member]
Debt Instrument [Line Items]
Aggregate Principal	$ 400,000,000	$ 400,000,000
Fair value of fixed-rate debt
Estimated  Fair Value	$ 451,913,000	$ 449,200,000
5.125% senior notes [Member]
Debt Instrument [Line Items]
Aggregate Principal				$ 300,000,000
Fair value of fixed-rate debt
Debt instrument, stated rate	5.125%	5.125%		5.125%
5.125% senior notes [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	$ 333,328,000	$ 319,500,000

FAIR VALUE DISCLOSURES - Sche_2

FAIR VALUE DISCLOSURES - Schedule of Impairment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Description:
Impairment of real estate	$ 24,900	$ 7,300
Land held for sale	72,700	36,600
Fair Value, Nonrecurring | Fair Value, Inputs, Level 3
Description:
Impairment of real estate	24,852	7,293
Initial basis of long-lived real estate assets	71,769	50,242
Land held for sale	$ 46,917	$ 42,949

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																12 Months Ended
	Dec. 31, 2020		Sep. 30, 2020		Jun. 30, 2020		Mar. 31, 2020		Dec. 31, 2019		Sep. 30, 2019		Jun. 30, 2019		Mar. 31, 2019		Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Basic and Diluted (Loss)/Earnings Per Common Share
Basic weighted average number of shares outstanding (in shares)																	37,718	38,100	40,107
Effect of dilutive securities:
Stock options and unvested restricted stock (in shares)																	766	791	621
Diluted average shares outstanding (in shares)																	38,484	38,891	40,728
Net earnings as reported (in dollars)	$ 152,527		$ 109,118		$ 90,678		$ 71,152		$ 103,614		$ 69,809		$ 50,828		$ 25,412		$ 423,475	$ 249,663	$ 227,332
Basic earnings per share (in dollars per share)	$ 4.06	[1]	$ 2.90	[1]	$ 2.41	[1]	$ 1.87	[1]	$ 2.71	[1]	$ 1.82	[1]	$ 1.33	[1]	$ 0.66	[1]	$ 11.23	$ 6.55	$ 5.67
Diluted earnings per share (in dollars per share)	$ 3.97	[1]	$ 2.84	[1]	$ 2.38	[1]	$ 1.83	[1]	$ 2.65	[1]	$ 1.79	[1]	$ 1.31	[1]	$ 0.65	[1]	$ 11	$ 6.42	$ 5.58
[1]	Due to the computation of earnings per share, the sum of the quarterly amounts may not equal the full-year results.

ACQUISITIONS AND GOODWILL - Nar

ACQUISITIONS AND GOODWILL - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Business Acquisitions and Goodwill [Abstract]
Goodwill	$ 32,962	$ 32,962	$ 32,962

ACQUISITIONS AND GOODWILL - Sum

ACQUISITIONS AND GOODWILL - Summary of Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Goodwill [Roll Forward]
Beginning balance	$ 32,962	$ 32,962
Additions	0	0
Ending balance	32,962	32,962
Operating Segments [Member] | Financial Services [Member]
Goodwill [Roll Forward]
Beginning balance	0	0
Additions	0	0
Ending balance	0	0
Operating Segments [Member] | Reportable Subsegments [Member] | Homebuilding | West [Member]
Goodwill [Roll Forward]
Beginning balance	0	0
Additions	0	0
Ending balance	0	0
Operating Segments [Member] | Reportable Subsegments [Member] | Homebuilding | Central [Member]
Goodwill [Roll Forward]
Beginning balance	0	0
Additions	0	0
Ending balance	0	0
Operating Segments [Member] | Reportable Subsegments [Member] | Homebuilding | East [Member]
Goodwill [Roll Forward]
Beginning balance	32,962	32,962
Additions	0	0
Ending balance	32,962	32,962
Corporate [Member]
Goodwill [Roll Forward]
Beginning balance	0	0
Additions	0	0
Ending balance	$ 0	$ 0

STOCK BASED AND DEFERRED COMP_3

STOCK BASED AND DEFERRED COMPENSATION - Narrative (Details)	12 Months Ended
	Dec. 31, 2020shares
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 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
Non-Employee Director [Member] | Non-vested stock 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
Award cliff vesting period	1 year
2018 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock authorized under stock compensation plan (in shares)	6,600,000
Remaining shares available for grant (in shares)	1,308,510

STOCK BASED AND DEFERRED COMP_4

STOCK BASED AND DEFERRED COMPENSATION - Summary of Nonvested (Restricted) Shares and Units Activity (Details) - $ / shares		12 Months Ended
		Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Nonvested Restricted Share Activity (time-based) [Member]
Nonvested Restricted Share Activity (time-based and performance-based), Number of Shares [Roll Forward]
Outstanding at beginning of year (in shares)		834,620	923,290	982,652
Granted (in shares)		225,593	385,328	315,247
Vested (Earned/Released) (in shares)		(234,842)	(347,555)	(288,709)
Forfeited (in shares)	[1]	(34,754)	(126,443)	(85,900)
Outstanding at end of year (in shares)		790,617	834,620	923,290
Nonvested Restricted Share Activity (time-based and performance-based), Weighted Average Grant Date Fair Value [Roll Forward]
Outstanding at beginning of year (in dollars per share)		$ 41.25	$ 38.25	$ 35.59
Granted (in dollars per share)		72.51	44.46	46.07
Vested (Earned/Released) (in dollars per share)		38.80	37.15	37.93
Forfeited (in dollars per share)	[1]	46.31	40.45	37.53
Outstanding at end of year (in dollars per share)		$ 50.67	$ 41.25	$ 38.25
Nonvested Restricted Share Activity (performance- based) [Member]
Nonvested Restricted Share Activity (time-based and performance-based), Number of Shares [Roll Forward]
Outstanding at beginning of year (in shares)		405,909	378,455	287,005
Granted (in shares)		80,193	115,191	157,637
Vested (Earned/Released) (in shares)		(178,174)	(87,737)	(36,801)
Forfeited (in shares)	[1]	0	0	(29,386)
Outstanding at end of year (in shares)		307,928	405,909	378,455
Nonvested Restricted Share Activity (time-based and performance-based), Weighted Average Grant Date Fair Value [Roll Forward]
Outstanding at beginning of year (in dollars per share)		$ 40.20	$ 38.77	$ 35.80
Granted (in dollars per share)		61.06	40.46	45.20
Vested (Earned/Released) (in dollars per share)		34.10	34.39	41.17
Forfeited (in dollars per share)	[1]	0	0	41.17
Outstanding at end of year (in dollars per share)		$ 49.16	$ 40.20	$ 38.77
Shares issued as a result of performance achievement (in shares)		24,054	21,039
[1]	Forfeitures on time-based nonvested shares are a result of terminations of employment, while forfeitures on performance-based nonvested shares are a result of failing to attain certain goals as outlined in our executive officers' compensation agreements. (2) Performance-based shares granted for the year ended December 31, 2019 includes 21,039 shares that were issued as a result of the performance achievement exceeding the performance targets related to grants to our executive officers for the year ended December 31, 2016. These shares vested in March 2019. (3) Performance-based shares granted for the year ended December 31, 2020 includes 24,054 shares that were issued as a result of the performance achievement exceeding the performance targets related to grants to our executive officers for the year ended December 31, 2017. These shares vested in February 2020.

STOCK BASED AND DEFERRED COMP_5

STOCK BASED AND DEFERRED COMPENSATION - Summary of Compensation Expense and Stock Award Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Summary of compensation expense and stock award activity
Stock-based compensation expense	$ 19,995	$ 19,607	$ 17,170

STOCK BASED AND DEFERRED COMP_6

STOCK BASED AND DEFERRED COMPENSATION - Summary of Additional Information Regarding Stock Plan (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Summary of stock based compensation agreements
Unrecognized stock-based compensation cost	$ 22,687	$ 22,341
Weighted average years expense recognition period	2 years 3 days	1 year 8 months 12 days
Total equity awards outstanding (in shares)	1,098,545	1,240,529
Payout percentage	100.00%

INCOME TAXES - Schedule of Comp

INCOME TAXES - Schedule of Components of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Current taxes:
Federal	$ 99,174	$ 41,019	$ 37,926
State	21,012	11,644	9,162
Current income taxes	120,186	52,663	47,088
Deferred taxes:
Federal	(9,725)	(8)	6,687
State	(370)	627	2,147
Deferred income taxes	(10,095)	619	8,834
Income tax expense	$ 110,091	$ 53,282	$ 55,922

INCOME TAXES - Narrative (Detai

INCOME TAXES - Narrative (Details)	12 Months Ended
	Dec. 31, 2020USD ($)examination	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Operating Loss Carryforwards [Line Items]
Statutory federal income tax rate	21.00%	21.00%	21.00%
Effective tax rate	20.60%	17.60%	19.70%
Deferred tax assets, net	$ 36,040,000	$ 25,917,000
Deferred tax liabilities	4,476,000	4,449,000
Unrecognized tax benefits	0	0
Deferred tax assets, valuation allowance	0
Effective tax rate reconciliation adjustment for deferred tax asset			$ 19,700,000
Favorable revaluation adjustment		(2,700,000)
Tax benefit recognized for energy efficient homes credit	19,900,000	$ 8,100,000
NOL carryforwards	$ 0
Internal Revenue Service (IRS) [Member]
Operating Loss Carryforwards [Line Items]
Number of income tax examinations pending | examination	0
State [Member]
Operating Loss Carryforwards [Line Items]
Number of income tax examinations pending | examination	0
Other Receivables [Member]
Operating Loss Carryforwards [Line Items]
Current tax receivable	$ 700,000
Accrued Liabilities [Member]
Operating Loss Carryforwards [Line Items]
Current tax payable	$ 25,300,000

INCOME TAXES - Schedule of Inco

INCOME TAXES - Schedule of Income Tax Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract]
Statutory federal income tax rate	21.00%	21.00%	21.00%
Expected taxes at current federal statutory income tax rate	$ 112,049	$ 63,618	$ 59,483
State income taxes, net of federal tax benefit	16,307	9,999	8,934
Tax Act revaluation of deferred tax balances	0	0	(2,741)
Federal tax credits	(16,523)	(20,582)	(10,330)
Non-deductible costs and other	(1,742)	247	576
Income tax expense	$ 110,091	$ 53,282	$ 55,922

INCOME TAXES - Schedule of Defe

INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Deferred tax assets:
Real estate	$ 18,710	$ 12,090
Warranty reserve	5,588	5,190
Wages payable	7,798	6,429
Equity-based compensation	7,114	5,991
Accrued expenses	193	75
Net operating loss carry-forwards	0	752
Other	5,498	4,488
Total deferred tax assets	44,901	35,015
Deferred tax liabilities:
Goodwill	879	3
Prepaids	1,487	2,113
Fixed assets	6,495	6,982
Total deferred tax liabilities	8,861	9,098
Deferred tax assets, net	36,040	25,917
Other deferred tax liabilities - state franchise taxes	4,476	4,449
Net deferred tax assets and liabilities	$ 31,564	$ 21,468

SUPPLEMENTAL DISCLOSURE OF CA_3

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash paid during the year for:
Interest, net of interest capitalized	$ 355	$ 10,810	$ 4,229
Income taxes	84,739	64,658	56,350
Non-cash operating activities:
Real estate acquired through notes payable	$ 16,597	$ 11,721	$ 13,174

RELATED PARTY TRANSACTIONS - Na

RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Payments to aviation charter [Member] | Steve Hilton, Chairman and CEO [Member]
Related Party Transaction [Line Items]
Payments to related parties	$ 408	$ 466	$ 606

OPERATING AND REPORTING SEGME_3

OPERATING AND REPORTING SEGMENTS - Narrative (Details)	12 Months Ended
	Dec. 31, 2020segmentoperating_segment
Segment Reporting [Abstract]
Number of business segments | segment	2
Number of operating segments | operating_segment	9

OPERATING AND REPORTING SEGME_4

OPERATING AND REPORTING SEGMENTS - Schedule of Segment Information (Details) - USD ($) $ in Thousands		3 Months Ended								12 Months Ended
		Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Homebuilding segment operating income:
Corporate and unallocated costs										$ (159,020)	$ (146,093)	$ (138,478)
Interest expense										(2,177)	(8,370)	(785)
Other income, net										6,662	9,577	11,217
Loss on early extinguishment of debt										0	(5,635)	0
Earnings before income taxes		$ 195,365	$ 135,506	$ 115,862	$ 86,833	$ 110,535	$ 92,366	$ 67,674	$ 32,370	533,566	302,945	283,254
Operating Segments [Member] | Homebuilding
Homebuilding segment operating income:
Operating Income										557,091	330,406	287,299
Operating Segments [Member] | Financial Services [Member]
Homebuilding segment operating income:
Operating Income										16,388	20,579	24,044
Operating Segments [Member] | Reportable Subsegments [Member] | Homebuilding | West [Member]
Homebuilding segment operating income:
Operating Income										213,918	141,435	134,852
Operating Segments [Member] | Reportable Subsegments [Member] | Homebuilding | Central [Member]
Homebuilding segment operating income:
Operating Income										185,202	101,686	92,925
Operating Segments [Member] | Reportable Subsegments [Member] | Homebuilding | East [Member]
Homebuilding segment operating income:
Operating Income										157,971	87,285	59,522
Corporate and Unallocated [Member]
Homebuilding segment operating income:
Corporate and unallocated costs	[1]									(44,398)	(43,612)	(38,521)
Segment Reconciling Items [Member]
Homebuilding segment operating income:
Interest expense										(2,177)	(8,370)	(785)
Other income, net	[2]									6,662	9,577	11,217
Real Estate [Member]
Homebuilding revenue:
Revenue		$ 1,409,937	$ 1,138,091	$ 1,033,079	$ 901,013	$ 1,136,848	$ 940,880	$ 864,610	$ 708,145	4,482,120	3,650,483	3,513,419
Real Estate [Member] | Operating Segments [Member] | Homebuilding
Homebuilding revenue:
Revenue	[3]									4,482,120	3,650,483	3,513,419
Real Estate [Member] | Operating Segments [Member] | Reportable Subsegments [Member] | Homebuilding | West [Member]
Homebuilding revenue:
Revenue	[3]									1,800,223	1,422,516	1,436,334
Real Estate [Member] | Operating Segments [Member] | Reportable Subsegments [Member] | Homebuilding | Central [Member]
Homebuilding revenue:
Revenue	[3]									1,282,339	1,038,052	1,013,878
Real Estate [Member] | Operating Segments [Member] | Reportable Subsegments [Member] | Homebuilding | East [Member]
Homebuilding revenue:
Revenue	[3]									$ 1,399,558	$ 1,189,915	$ 1,063,207
[1]	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 reporting segments.
[2]	For the year ended December 31, 2018, Other income, net includes a favorable $4.8 million legal settlement from long-standing litigation related to a previous joint venture in Nevada.
[3]	Homebuilding revenue includes the following land closing revenue, by segment: Years Ended December 31, Land closing revenue: 2020 2019 2018 West $ 4,974 $ 12,463 $ 18,508 Central 8,678 4,297 7,657 East 4,079 29,094 12,542 Total $ 17,731 $ 45,854 $ 38,707

OPERATING AND REPORTING SEGME_5

OPERATING AND REPORTING SEGMENTS - Schedule of Segment Information, Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Litigation settlement received	$ 4,800
Land [Member]
Segment Reporting Information [Line Items]
Revenue	17,731	$ 45,854	$ 38,707
Land [Member] | Operating Segments [Member] | Homebuilding
Segment Reporting Information [Line Items]
Revenue	17,731	45,854	38,707
Land [Member] | Operating Segments [Member] | Reportable Subsegments [Member] | Homebuilding | West [Member]
Segment Reporting Information [Line Items]
Revenue	4,974	12,463	18,508
Land [Member] | Operating Segments [Member] | Reportable Subsegments [Member] | Homebuilding | Central [Member]
Segment Reporting Information [Line Items]
Revenue	8,678	4,297	7,657
Land [Member] | Operating Segments [Member] | Reportable Subsegments [Member] | Homebuilding | East [Member]
Segment Reporting Information [Line Items]
Revenue	$ 4,079	$ 29,094	$ 12,542

OPERATING AND REPORTING SEGME_6

OPERATING AND REPORTING SEGMENTS - Schedule of Segment Assets (Details) - USD ($) $ in Thousands		Dec. 31, 2020		Dec. 31, 2019
Segment Reporting Information [Line Items]
Deposits on real estate under option or contract		$ 59,534		$ 50,901
Real estate		2,778,039		2,744,361
Investments in unconsolidated entities		4,350		4,443
Other assets		1,022,475		598,544
Total assets		3,864,398		3,398,249
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		612		765
Total assets		612		765
Operating Segments [Member] | Reportable Subsegments [Member] | Homebuilding | West [Member]
Segment Reporting Information [Line Items]
Deposits on real estate under option or contract		22,493		10,568
Real estate		1,154,488		1,223,949
Investments in unconsolidated entities		261		260
Other assets	[1]	51,271		58,173
Total assets		1,228,513		1,292,950
Operating Segments [Member] | Reportable Subsegments [Member] | Homebuilding | Central [Member]
Segment Reporting Information [Line Items]
Deposits on real estate under option or contract		11,154		10,963
Real estate		814,919		708,786
Investments in unconsolidated entities		3,090		3,508
Other assets	[2]	122,933		107,791
Total assets		952,096		831,048
Operating Segments [Member] | Reportable Subsegments [Member] | Homebuilding | East [Member]
Segment Reporting Information [Line Items]
Deposits on real estate under option or contract		25,887		29,370
Real estate		808,632		811,626
Investments in unconsolidated entities		0		0
Other assets		81,601	[3]	83,475
Total assets		916,120		924,471
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		999		675
Other assets		766,058	[4]	348,340
Total assets		$ 767,057		$ 349,015
[1]	Balance consists primarily of cash and property and equipment.
[2]	Balance consists primarily of cash, development reimbursements from local municipalities and prepaids and other assets.
[3]	Balance consists primarily of cash, goodwill, prepaids and other assets, and property and equipment.
[4]	Balance consists primarily of cash, deferred tax assets and prepaids and other assets.

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Total warranty reserves	$ 23,743	$ 22,015	$ 24,552

SELECTED QUARTERLY FINANCIAL _3

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) - Schedule of Quarterly Results (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended																12 Months Ended
	Dec. 31, 2020		Sep. 30, 2020		Jun. 30, 2020		Mar. 31, 2020		Dec. 31, 2019		Sep. 30, 2019		Jun. 30, 2019		Mar. 31, 2019		Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Selected Quarterly Financial Information [Abstract]
Earnings before income taxes	$ 195,365		$ 135,506		$ 115,862		$ 86,833		$ 110,535		$ 92,366		$ 67,674		$ 32,370		$ 533,566	$ 302,945	$ 283,254
Net earnings	$ 152,527		$ 109,118		$ 90,678		$ 71,152		$ 103,614		$ 69,809		$ 50,828		$ 25,412		$ 423,475	$ 249,663	$ 227,332
Per Share Data:
Basic earnings per share (in dollars per share)	$ 4.06	[1]	$ 2.90	[1]	$ 2.41	[1]	$ 1.87	[1]	$ 2.71	[1]	$ 1.82	[1]	$ 1.33	[1]	$ 0.66	[1]	$ 11.23	$ 6.55	$ 5.67
Diluted earnings per share (in dollars per share)	$ 3.97	[1]	$ 2.84	[1]	$ 2.38	[1]	$ 1.83	[1]	$ 2.65	[1]	$ 1.79	[1]	$ 1.31	[1]	$ 0.65	[1]	$ 11	$ 6.42	$ 5.58
Real Estate [Member]
Selected Quarterly Financial Information [Abstract]
Revenue	$ 1,409,937		$ 1,138,091		$ 1,033,079		$ 901,013		$ 1,136,848		$ 940,880		$ 864,610		$ 708,145		$ 4,482,120	$ 3,650,483	$ 3,513,419
Total closing gross profit	$ 317,546		$ 244,077		$ 219,248		$ 178,743		$ 219,320		$ 186,091		$ 157,376		$ 116,828		$ 959,614	$ 679,615	$ 629,153
[1]	Due to the computation of earnings per share, the sum of the quarterly amounts may not equal the full-year results.