0001580670-20-000017 | 10-K | XBRL Viewer

Cover Page - USD ($) $ in Billions	12 Months Ended
Cover Page - USD ($) $ in Billions	Dec. 31, 2019	Feb. 21, 2020	Jun. 28, 2019
Cover page.
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2019
Document Transition Report	false
Entity File Number	001-36126
Entity Registrant Name	LGI HOMES, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	46-3088013
Entity Address, Address Line One	1450 Lake Robbins Drive,
Entity Address, City or Town	The Woodlands,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77380
City Area Code	(281)
Local Phone Number	362-8998
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	LGIH
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 1.4
Entity Common Stock, Shares Outstanding		25,359,409
Documents Incorporated by Reference	Portions from the registrant’s definitive Proxy Statement for the 2020 Annual Meeting of Stockholders are incorporated herein by reference (to the extent indicated) into Part III.
Entity Central Index Key	0001580670
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus (Q1,Q2,Q3,FY)	FY
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
ASSETS
Cash and cash equivalents	$ 38,345	$ 46,624
Accounts receivable	56,390	42,836
Real estate inventory	1,499,624	1,228,256
Pre-acquisition costs and deposits	37,244	45,752
Property and equipment, net	1,632	1,432
Other assets	16,241	15,765
Deferred tax assets, net	4,621	2,790
Goodwill	12,018	12,018
Total assets	1,666,115	1,395,473
LIABILITIES AND EQUITY
Accounts payable	12,495	9,241
Accrued expenses and other liabilities	117,868	76,555
Notes payable	690,559	653,734
Total liabilities	820,922	739,530
EQUITY
Common stock, par value $0.01, 250,000,000 shares authorized, 26,398,409 shares issued and 25,359,409 shares outstanding as of December 31, 2019 and 23,746,385 shares issued and 22,707,385 shares outstanding as of December 31, 2018	264	237
Additional paid-in capital	252,603	241,988
Retained earnings	610,382	431,774
Treasury stock, at cost 1,039,000 shares	(18,056)	(18,056)
Total equity	845,193	655,943
Total liabilities and equity	$ 1,666,115	$ 1,395,473

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	26,398,409	23,746,385
Common stock, shares outstanding	25,359,409	22,707,385
Treasury stock, shares	1,039,000	1,039,000

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Statement [Abstract]
Home sales revenues	$ 1,838,154	$ 1,504,400	$ 1,257,960
Cost of sales	1,401,675	1,124,484	937,540
Selling expenses	131,561	109,460	94,957
General and administrative	77,380	70,345	55,662
Operating income	227,538	200,111	169,801
Loss on extinguishment of debt	169	3,599	0
Other income, net	(4,463)	(2,586)	(1,601)
Net income before income taxes	231,832	199,098	171,402
Income tax provision	53,224	43,812	58,096
Net income	$ 178,608	$ 155,286	$ 113,306
Earnings per share:
Basic earnings per share (in dollars per share)	$ 7.70	$ 6.89	$ 5.24
Diluted earnings per share (in dollars per share)	$ 7.02	$ 6.24	$ 4.73
Weighted average shares outstanding:
Basic (in shares)	23,191,595	22,551,762	21,604,932
Diluted (in shares)	25,430,841	24,892,274	23,933,122

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Treasury Stock
Beginning balance (in shares) at Dec. 31, 2016		22,311,310
Beginning Balance at Dec. 31, 2016	$ 355,201	$ 223	$ 208,346	$ 163,182	$ (16,550)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	113,306			113,306
Issuance of shares (in shares)		354,620
Issuance of shares in settlement of Convertible Notes	15,342	$ 3	15,339
Issuance of restricted stock units in settlement of accrued bonuses	167		167
Compensation expense for equity awards	4,188		4,188
Stock issued under employee incentive plans (in shares)		179,650
Stock issued under employee incentive plans	1,642	$ 2	1,640
Ending balance (in shares) at Dec. 31, 2017		22,845,580
Ending Balance at Dec. 31, 2017	489,846	$ 228	229,680	276,488	(16,550)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	155,286			155,286
Issuance of shares, Wynn Homes Acquisition (in shares)		70,746
Issuance of shares, Wynn Homes Acquisition	4,000	$ 1	3,999
Repurchase of shares	(1,506)				(1,506)
Issuance of shares (in shares)		486,679
Issuance of shares in settlement of Convertible Notes	(477)	$ 5	(482)
Issuance of restricted stock units in settlement of accrued bonuses	181		181
Compensation expense for equity awards	5,923		5,923
Stock issued under employee incentive plans (in shares)		343,380
Stock issued under employee incentive plans	2,690	$ 3	2,687
Ending balance (in shares) at Dec. 31, 2018		23,746,385
Ending Balance at Dec. 31, 2018	655,943	$ 237	241,988	431,774	(18,056)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	178,608			178,608
Issuance of shares in settlement of Convertible Note (in shares)		2,381,751
Issuance of shares in settlement of Convertible Notes	0	$ 24	(24)
Issuance of restricted stock units in settlement of accrued bonuses	217		217
Compensation expense for equity awards	7,539		7,539
Stock issued under employee incentive plans (in shares)		270,273
Stock issued under employee incentive plans	2,886	$ 3	2,883
Ending balance (in shares) at Dec. 31, 2019		26,398,409
Ending Balance at Dec. 31, 2019	$ 845,193	$ 264	$ 252,603	$ 610,382	$ (18,056)

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Cash Flows [Abstract]
Net income	$ 178,608	$ 155,286	$ 113,306
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	643	711	791
Loss on extinguishment of debt	169	3,588	0
Loss on disposal of assets	37	6	13
Compensation expense for equity awards	7,539	5,937	4,188
Deferred income taxes	(1,831)	(724)	(2,092)
Changes in assets and liabilities:
Accounts receivable	(13,554)	1,870	(27,651)
Real estate inventory	(266,651)	(234,664)	(200,609)
Pre-acquisition costs and deposits	8,507	(18,853)	(8,215)
Other assets	6,228	(1,398)	(8,643)
Accounts payable	3,254	(2,779)	(257)
Accrued expenses and other liabilities	35,117	(25,703)	60,702
Net cash used in operating activities	(41,934)	(116,723)	(68,467)
Cash flows from investing activities:
Purchases of property and equipment	(734)	(475)	(518)
Payments to Acquire Equity Method Investments	(1,059)	0	0
Payment for business acquisition	0	(74,463)	0
Net cash used in investing activities	(1,793)	(74,938)	(518)
Cash flows from financing activities:
Proceeds from notes payable	309,308	612,717	100,000
Payments on notes payable	(273,762)	(436,238)	(25,000)
Loan issuance costs	(2,984)	(6,741)	(4,375)
Proceeds from sale of stock, net of offering expenses	2,886	2,690	17,130
Stock repurchase	0	(1,506)	0
Payment for offering costs	0	(76)	(69)
Payment for earnout obligation	0	(132)	(648)
Net cash provided by financing activities	35,448	170,714	87,038
Net increase (decrease) in cash and cash equivalents	(8,279)	(20,947)	18,053
Cash and cash equivalents, beginning of year	46,624	67,571	49,518
Cash and cash equivalents, end of year	$ 38,345	$ 46,624	$ 67,571

Organization and Business	12 Months Ended
Organization and Business	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Business	ORGANIZATION AND BUSINESS Organization and Description of the Business LGI Homes, Inc., a Delaware corporation (the “Company”, “we,” “us,” or “our”), is headquartered in The Woodlands, Texas. We engage in the design, construction and sale of new homes in markets in Texas, Arizona, Florida, Georgia, New Mexico, Colorado, North Carolina, South Carolina, Washington, Tennessee, Minnesota, Oklahoma, Alabama, California, Oregon, Nevada, West Virginia and Virginia. Acquisition On August 2, 2018, we acquired certain homebuilding assets owned by Crosswind Properties, LLC, Wynn Construction, Inc., Crosswind Development, Inc., Crosswind Investments, Inc. and First Continental Communities, Inc. (collectively, “Wynn Homes”), and assumed certain related liabilities. As a result of the Wynn Homes acquisition, we expanded our North Carolina presence in the Raleigh market, as well as established an immediate presence in the Wilmington market. We acquired approximately 200 homes under construction and more than 4,000 owned and controlled lots. The total purchase price for the Wynn Homes acquisition was approximately $78.5 million, consisting of approximately $74.5 million in cash and $4.0 million in shares of our common stock. The acquisition was accounted for in accordance with Accounting Standards Codification (“ASC”) Topic 805, Business Combinations (“ASC 805”).

Summary of Significant Accounting Policies	12 Months Ended
Summary of Significant Accounting Policies	Dec. 31, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) and include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates, and these differences could have a significant impact on the financial statements. The significant accounting estimates include real estate inventory and cost of sales, impairment of real estate inventory and property and equipment, goodwill, warranty reserves, the fair value of the convertible debt, loss contingencies, incentive compensation expense, and income taxes. Cash and Cash Equivalents and Concentration of Credit Risk Cash and cash equivalents are defined as cash on hand, demand deposits with financial institutions, and short-term liquid investments with an initial maturity date of less than three months. Our cash in demand deposit accounts may exceed federally insured limits and could be negatively impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. To date, we have experienced no loss or diminished access to cash in our demand deposit accounts. Accounts Receivable Accounts receivable consist primarily of proceeds due from title companies for sales closed prior to period end and are generally collected within a few days from closing. Real Estate Inventory Inventory consists of land, land under development, finished lots, information centers, homes in progress, and completed homes. Inventory is stated at cost unless the carrying amount is determined not to be recoverable, in which case the affected inventory is written down to fair value. Land, development and other project costs, including interest and property taxes incurred during development and home construction and net of expected reimbursements of development costs, are capitalized to real estate inventory. Land development and other common costs that benefit the entire community, including field construction supervision and related direct overhead, are allocated to individual lots or homes, as appropriate. The costs of lots are assigned to homes in progress when home construction begins. Home construction costs and related carrying charges are allocated to the cost of individual homes using the specific identification method. Costs that are not specifically identifiable to a home are allocated on a pro rata basis, which we believe approximates the costs that would be determined using an allocation method based on relative sales values since the individual lots or homes within a community are similar in value. Inventory costs for completed homes are expensed to cost of sales as homes are closed. Changes to estimated total development costs subsequent to initial home closings in a community are generally allocated to the remaining unsold lots and homes in the community on a pro rata basis. The life cycle of a community generally ranges from two to five years, commencing with the acquisition of land, continuing through the land development phase, and concluding with the construction and sale of homes. A constructed home is used as the community information center during the life of the community and then sold. Actual individual community lives will vary based on the size of the community, the sales absorption rate, and whether the property was purchased as raw land or finished lots. In accordance with ASC Topic 360, Property, Plant, and Equipment, real estate inventory is evaluated for indicators of impairment by each community during each reporting period. In conducting its review for indicators of impairment on a community level, management evaluates, among other things, the margins on homes that have been closed, communities with slow moving inventory, projected margins on future home sales over the life of the community, and the estimated fair value of the land. For individual communities with indicators of impairment, additional analysis is performed to estimate the community’s undiscounted future cash flows. If the estimated undiscounted future cash flows are greater than the carrying value of the community group of assets, no impairment adjustment is required. If the undiscounted cash flows are less than the community’s carrying value, the asset group is impaired and is written down to its fair value. We estimate the fair value of communities using a discounted cash flow model. As of December 31, 2019 and 2018, the real estate inventory is stated at cost; there were no inventory impairment charges recorded during the years ended December 31, 2019, 2018 and 2017. Capitalized Interest Interest and other financing costs are capitalized as cost of inventory during community development and home construction activities, in accordance with ASC Topic 835, Interest and expensed in cost of sales as homes in the community are closed. To the extent the debt exceeds qualified assets, a portion of the interest incurred is expensed. Pre-Acquisition Costs and Deposits Amounts paid for land options, deposits on land purchase contracts, and other pre-acquisition costs are capitalized and classified as deposits to purchase. Upon execution of the purchase, these deposits are applied to the acquisition price of the land and recorded as a cost component of the land in real estate inventory. To the extent that any deposits are nonrefundable and the associated land acquisition process is terminated or no longer determined probable, the deposit and related pre-acquisition costs are charged to general and administrative expenses. Management reviews the likelihood of the acquisition of contracted lots in conjunction with its periodic real estate impairment analysis. Under ASC Topic 810, Consolidation (“ASC 810”), a nonrefundable deposit paid to an entity is deemed to be a variable interest that will absorb some or all of the entity’s expected losses if they occur. Non-refundable land purchase and lot option deposits generally represent our maximum exposure if we elect not to purchase the optioned property. In some instances, we may also expend funds for due diligence, development and construction activities with respect to optioned land prior to close. Such costs are classified as preacquisition costs, which we would have to absorb should the option not be exercised. Therefore, whenever we enter into a land option or purchase contract with an entity and make a nonrefundable deposit, we may have a variable interest in a variable interest entity (“VIE”). In accordance with ASC 810, we perform ongoing reassessments of whether we are the primary beneficiary of a VIE and would consolidate the VIE if we are deemed to be the primary beneficiary. As of December 31, 2019 and 2018, we were not deemed to be the primary beneficiary for any VIEs associated with non-refundable land deposits. Deferred Loan Costs Deferred loan costs represent debt issuance costs related to a recognized debt liability and are presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. Other Assets Other assets consist primarily of prepaid insurance, prepaid expenses, security deposits, and right-of-use (“ROU”) assets. Our prepaid insurance and prepaid expenses were $7.8 million and $12.1 million as of December 31, 2019 and 2018, respectively. Property and Equipment, Net Property, building, equipment and leasehold improvements are stated at cost, less accumulated depreciation. Depreciation expense is recorded in general and administrative expenses. Upon sale or retirement, the costs and related accumulated depreciation are eliminated from the respective accounts and any resulting gain or loss is included in other income, net. Depreciation is generally computed using the straight-line method over the estimated useful lives of the assets, ranging from two to five years for property and equipment and 30 years for our building. Leasehold improvements are depreciated over the shorter of the asset life or the term of the lease. Maintenance and repair costs are expensed as incurred. Impairments of long-lived assets are determined periodically when indicators of impairment are present. If such indicators are present, the determination of the amount of impairment is based on judgments as to the future undiscounted operating cash flows to be generated from these assets throughout the remaining estimated useful lives. If these undiscounted cash flows are less than the carrying amount of the related asset, impairment is recognized for the excess of the carrying value over its fair value. There were no impairments of property, equipment and leasehold improvements recorded during the years ended December 31, 2019, 2018 and 2017. Investment in Unconsolidated Entity We have an investment in a unconsolidated entity with an independent third party. The equity method of accounting is used for unconsolidated entities over which we have significant influence; generally, this represents ownership interests of at least 20% and not more than 50%. Under the equity method of accounting, we recognize our proportionate share of the earnings and losses of this entity. In the event we buy land from this entity we intend to defer the recognition of profits from such activities until the time we ultimately sell the related land. We evaluate our investment in the unconsolidated entity for recoverability in accordance with ASC Topic 323, Investments - Equity Method and Joint Ventures (“ASC 323”). If we determine that a loss in the value of the investment is other than temporary, we write down the investment to its estimated fair value. Any such losses are recorded to equity in (earnings) loss of unconsolidated entities, which is reflected in other income, net. Due to uncertainties in the estimation process and the significant volatility in demand for new housing, actual results could differ significantly from such estimates. Goodwill and Intangible Assets The excess of the purchase price of a business acquisition over the net fair value of assets acquired and liabilities assumed is capitalized as goodwill in accordance with ASC Topic 805, Business Combinations. Goodwill and intangible assets that do not have finite lives are not amortized, but are assessed for impairment at least annually or more frequently if certain impairment indicators are present. The $12.0 million of goodwill is related to the reorganization transactions completed in connection with the initial public offering of our common stock in November 2013. In applying the goodwill impairment test, we have the option to perform a qualitative test (also known as “Step 0”) or a two-step quantitative test (consisting of “Step 1” and “Step 2”). Under the Step 0 test, we first assess qualitative factors to determine whether it is more likely than not that the fair value of the reporting units is less than their carrying value. Qualitative factors may include, but are not limited to, economic conditions, industry and market considerations, cost factors, overall financial performance of the reporting unit and other entity and reporting unit specific events. If after assessing these qualitative factors, we determine it is “more-likely-than-not” that the fair value of the reporting unit is less than the carrying value, then performing the two-step quantitative test is necessary. Annually, we performed a Step 0 analysis and determined that it is not “more likely than not” that the fair values of the reporting units were less than their carrying amounts. No goodwill impairment charges were recorded in 2019, 2018 and 2017. Warranty Reserves Future direct warranty costs are accrued and charged to cost of sales in the period when the related home is closed. Our warranty liability is based upon historical warranty cost experience and is adjusted as appropriate to reflect qualitative risks associated with the types of homes built, the geographic areas in which they are built, and potential impacts of our continued expansion. Warranty reserves are reviewed quarterly to assess the reasonableness and adequacy and adjusted, as needed, to reflect changes in trends and historical data as information becomes available. Customer Deposits Customer deposits are received upon signing a purchase contract and are generally $1,000 . Deposits are generally refundable if the customer is unable to obtain financing. Forfeited buyer deposits related to home sales are recognized in other income in the period in which it is determined that the buyer will not complete the purchase of the property and the deposit is nonrefundable to the buyer. Home Sales Revenues from home sales are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Revenues from home sales are recorded at the time each home sale is closed, title and possession are transferred to the customer and we have no significant continuing involvement with the home. Home sales discounts and incentives granted to customers, which are related to the customers’ closing costs that we pay on the customers’ behalf, are recorded as a reduction of revenue in our consolidated financial statements of operations. Cost of Sales As discussed under “—Real Estate Inventory” above, cost of sales for homes closed include the construction costs of each home and allocable land acquisition and land development costs, capitalized interest, and other related common costs (both incurred and estimated to be incurred). Selling and Commission Costs Sales commissions are paid and expensed based on homes closed. Other selling costs are expensed in the period incurred. Advertising Costs Advertising and direct mail costs are expensed as incurred. Advertising and direct mail costs were $20.2 million, $17.6 million and $15.2 million for the years ended December 31, 2019, 2018, and 2017, respectively. Income Taxes We are a taxable entity subject to federal and state taxes. We utilize the liability method of accounting for income taxes. Under the liability method, deferred tax assets and liabilities are recognized using enacted tax rates for the effect of temporary differences between the book and tax bases of recorded assets and liabilities. Changes in tax rate are recognized in the year of enactment. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the net deferred tax assets will not be realized. Our ability to realize deferred tax assets is assessed throughout the year and a valuation allowance is established, if required. We recognize the impact of a tax position only if it is more likely than not to be sustained upon examination based on the technical merits of the position. We recognize potential interest and penalties related to uncertain tax positions in income tax expense. Earnings Per Share Basic earnings per share is based on the weighted average number of shares of common stock outstanding. Diluted earnings per share is based on the weighted average number of shares of common stock and dilutive securities outstanding. In accordance with ASC 260-10, Earnings Per Share, we calculated the dilutive effect of our 4.25% Convertible Notes due 2019 (the “Convertible Notes”) using the treasury stock method through the maturity date of the Convertible Notes, since we had the intent and ability to settle the principal amount of the outstanding Convertible Notes in cash. Under the treasury stock method, the Convertible Notes had a dilutive impact on diluted earnings per share to the extent that the average market price of our common stock for a reporting period exceeded the conversion price of $21.52 per share.The Convertible Notes matured on November 15, 2019, resulting in the issuance of 2,381,751 shares of our common stock. Diluted earnings per share excludes all dilutive potential shares of common stock if their effect is antidilutive. Stock-Based Compensation Compensation costs for non-performance-based restricted stock awards are measured using the closing price of our common stock on the date of grant and are expensed on a straight-line basis over the requisite service period of the award. Compensation costs for performance-based restricted stock awards also contain a market condition. These costs are measured using the derived grant date fair value, based on a third party valuation analysis, and are expensed in accordance with ASC 718-10-25-20, Compensation - Stock Compensation, which requires an assessment of probability of attainment of the performance target. Once the performance target outcome is determined to be probable, the cumulative expense is adjusted, as needed, to recognize compensation expense on a straight-line basis over the award’s requisite service period. Recently Adopted Accounting Standards On January 1, 2019, we adopted the Financial Accounting Standards Board (the “FASB”) Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), which amends the existing standards for lease accounting, requiring lessees to recognize most leases on their balance sheets and disclose key information about leasing arrangements. The new standard establishes an ROU model that requires a lessee to recognize an ROU asset and lease liability on the balance sheet for all leases with a term longer than one year. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. We adopted the new standard with a modified retrospective transition approach, so financial information is not updated for periods prior to January 1, 2019. Pursuant to the adoption of the new standard, we elected the practical expedients upon transition that do not require us to reassess existing contracts to determine if they contain leases under the new definition of a lease, or to reassess historical lease classification or initial direct costs. We also elected the practical expedient to not separate lease and non-lease components for new leases after adoption of the new standard. The adoption of Topic 842 is accounted for as a change in accounting principle in conformity with FASB ASC 250, “Accounting Changes and Error Corrections.” As a result of the adoption, the most significant changes are related to the recognition of new ROU assets and lease liabilities of $5.4 million as of January 1, 2019 on the balance sheet for office operating leases. The Company's existing material leases are all considered operating leases under the new leasing standard and as a result, no adjustment to retained earnings was required. Recently Issued Accounting Pronouncements In August 2018, the 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 requires entities that are customers in cloud computing arrangements to defer implementation costs if they would be capitalized by the entity in software licensing arrangements under the internal-use software guidance. The guidance may be applied retrospectively or prospectively to implementation costs incurred after the date of adoption. ASU 2018-15 is effective for us beginning January 1, 2020. We are currently evaluating the impact that this standard will have on our financial statements. 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 modifies the disclosure requirements of fair value measurements. ASU 2018-13 is effective for us beginning January 1, 2020. Certain disclosures are required to be applied on a retrospective basis and others on a prospective basis. We do not expect ASU 2018-13 to have a material impact on our financial statements. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment” (“ASU 2017-04”), which removes the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for us beginning January 1, 2020, with early adoption permitted, and applied prospectively. We do not expect ASU 2017-04 to have a material impact on our financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which changes the impairment model for most financial assets and certain other instruments from an “incurred loss” approach to a new “expected credit loss” methodology. ASU 2016-13 is effective for us beginning January 1, 2020, with early adoption permitted. We are currently evaluating the impact that this standard will have on our financial statements.

Revenues

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer

REVENUES

Revenue Recognition

Revenues from home sales are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Revenues from home sales are recorded at the time each home sale is closed, title and possession are transferred to the customer and we have no significant continuing involvement with the home. Home sales discounts and incentives granted to customers, which are related to the customers’ closing costs that we pay on the customers’ behalf, are recorded as a reduction of revenue in our consolidated financial statements of operations.

The following table presents our home sales revenues disaggregated by revenue stream (in thousands):



	For the Year Ended December 31,
	2019		2018		2017
Retail home sales revenues	$	1,714,277	$	1,394,475	$	1,217,191
Other	123,877		109,925		40,769
Total home sales revenues	$	1,838,154	$	1,504,400	$	1,257,960

The following table presents our home sales revenues disaggregated by geography, based on our determined operating segments in Note 15 (in thousands):



	For the Year Ended December 31,
	2019		2018		2017
Central	$	724,981	$	623,751	$	533,254
Southeast	347,817		271,073		183,422
Northwest	304,294		277,567		215,421
West	271,186		151,059		126,130
Florida	189,876		180,950		199,733
Home sales revenues	$	1,838,154	$	1,504,400	$	1,257,960

Home Sales Revenues

We generate revenues primarily by delivering move-in ready entry-level and move-up spec homes sold under our LGI Homes brand and our luxury series spec homes sold under our Terrata Homes brand.

Retail homes sold under both our LGI Homes brand and Terrata Homes brand focus on providing move-in ready homes with standardized features within favorable markets that meet certain demographic and economic conditions. Our LGI Homes brand primarily markets to entry-level or first-time homebuyers, while our Terrata Homes brand primarily markets to move-up homebuyers.

Our other revenues are composed of our wholesale home sales under our LGI Homes brand and Terrata Homes brand in existing markets. Wholesale homes are primarily sold under a bulk sales agreement and focus on providing move-in ready homes with standardized features to real estate investors that will ultimately use the single-family homes as rental properties.

Performance Obligations

Our contracts with customers include a single performance obligation to transfer a completed home to the customer. We generally determine selling price per home on the expected cost plus margin. Our contracts contain no significant financing terms as customers who finance do so through a third party. Performance obligations are satisfied at a moment in time when the home is complete and control of the asset is transferred to the customer at closing. Home sales proceeds are generally received from the title company within a few business days after closing.

Sales and broker commissions are incremental costs incurred to obtain a contract with a customer that would not have been incurred if the contract had not been obtained. Sales and broker commissions are expensed upon fulfillment of a home closing. Advertising costs are costs to obtain a contract that would have been incurred regardless of whether the contract was obtained and are recognized as an expense when incurred. Sales and broker commissions and advertising costs are recorded within sales and marketing expense presented in our consolidated statements of operations as selling expenses.

Real Estate Inventory

12 Months Ended

Dec. 31, 2019

Inventory Disclosure [Abstract]

Real Estate Inventory

REAL ESTATE INVENTORY

Our real estate inventory consists of the following (in thousands):



	December 31,
	2019		2018
Land, land under development, and finished lots	$	912,651	$	736,402
Information centers	26,959		21,179
Homes in progress	234,470		149,506
Completed homes	325,544		321,169
Total real estate inventory	$	1,499,624	$	1,228,256

See “Real Estate Inventory” under Note 2 for more information.

Interest and financing costs incurred under our debt obligations, as more fully discussed in Note 7, are capitalized to qualifying real estate projects under development and homes under construction.

Property and Equipment

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Property and Equipment

PROPERTY AND EQUIPMENT

Property and equipment consist of the following (in thousands):



		December 31,
	Asset Life	2019			2018
	(years)
Computer equipment	2-5	$	1,395		$	1,342
Machinery and equipment	5	154			102
Furniture and fixtures	2-5	3,758			3,183
Buildings	30	145			—
Leasehold improvements	5	272			267
Total property and equipment		5,724			4,894
Less: Accumulated depreciation		(4,092		)	(3,462		)
Property and equipment, net		$	1,632		$	1,432

Depreciation expense incurred for the years ended December 31, 2019, 2018 and 2017 was $0.6 million, $0.7 million and $0.8 million, respectively.

Accrued Expenses and Other Liabilities

12 Months Ended

Dec. 31, 2019

Payables and Accruals [Abstract]

Accrued Expenses and Other Liabilities

ACCRUED EXPENSES AND OTHER LIABILITIES

Accrued and other liabilities consist of the following (in thousands):



	December 31,
	2019		2018
Taxes payable	$	28,679	$	10,773
Retentions and development payable	26,790		18,899
Accrued compensation, bonuses and benefits	16,748		13,913
Accrued interest	11,361		12,339
Inventory related obligations	7,808		7,041
Lease Liability	5,645		—
Warranty reserve	3,500		2,950
Other	17,337		10,640
Total accrued expenses and other liabilities	$	117,868	$	76,555

Inventory Related Obligations

We own lots in certain communities in Arizona, Florida, and Texas that have Community Development Districts (“CDD”) or similar utility and infrastructure development special assessment programs that allocate a fixed amount of debt service associated with development activities to each lot. This obligation for infrastructure development is attached to the land, is typically payable over a 30-year period, and is ultimately assumed by the homebuyer when home sales are closed. Such obligations represent a non-cash cost of the lots. At December 31, 2019 and 2018, we had CDD and other utility development obligations of approximately $7.8 million and $7.0 million, respectively.

Estimated Warranty Reserve

We typically provide homebuyers with a one-year warranty on the house and a ten-year limited warranty for major defects in structural elements such as framing components and foundation systems.

Changes to our warranty accrual are as follows (in thousands):



	December 31,
	2019			2018			2017
Warranty reserves, beginning of period	$	2,950		$	2,450		$	1,600
Warranty provision	5,286			4,438			4,999
Warranty expenditures	(4,736		)	(3,938		)	(4,149		)
Warranty reserves, end of period	$	3,500		$	2,950		$	2,450

Notes Payable

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Notes Payable

NOTES PAYABLE

Revolving Credit Agreement

On May 6, 2019, we entered into that certain Fourth Amended and Restated Credit Agreement (as amended, the “Credit Agreement”) with several financial institutions and Wells Fargo Bank, National Association, as administrative agent. The Credit Agreement has substantially similar terms and provisions to our third amended and restated credit agreement entered into in May 2018 with several financial institutions and Wells Fargo Bank, National Association, as administrative agent (the “2018 Credit Agreement”), but, among other things, provides for a revolving credit facility of $550.0 million, which could be increased at our request by up to $100.0 million if the lenders make additional commitments, subject to the terms and conditions of the Credit Agreement (which was requested in December 2019). On December 6, 2019, we entered into a Lender Addition and Acknowledgement Agreement and First Amendment to Fourth Amended and Restated Credit Agreement with certain lenders and Wells Fargo Bank, National Association, as an increasing lender and administrative agent, whereby the aggregate revolving commitments under the Credit Agreement increased by $100.0 million from $550.0 million to $650.0 million in accordance with the relevant provisions of the Credit Agreement.

The Credit Agreement matures on May 31, 2022. Before each anniversary of the Credit Agreement, we may request a one-year extension of the maturity date. The Credit Agreement is guaranteed by each of our subsidiaries that have gross assets equal to or greater than $0.5 million. As of December 31, 2019, the borrowing base under the Credit Agreement was $940.1 million, of which borrowings, including our 6.875% Senior Notes due 2026 (the “Senior Notes”), of $699.6 million were outstanding, $11.6 million of letters of credit were outstanding and $228.0 million was available to borrow under the Credit Agreement, net of deferred purchase price obligations.

Interest is paid monthly on borrowings under the Credit Agreement at LIBOR plus 2.50%. The Credit Agreement applicable margin for LIBOR loans ranges from 2.35% to 2.75% based on our leverage ratio. At December 31, 2019, LIBOR was 1.75%.

The Credit Agreement contains various financial covenants, including a minimum tangible net worth, a leverage ratio, a minimum liquidity amount and an EBITDA to interest expense ratio. The Credit Agreement contains various covenants that, among other restrictions, limit the amount of our additional debt and our ability to make certain investments. At December 31, 2019, we were in compliance with all of the covenants contained in the Credit Agreement.

In connection with the issuance of the Senior Notes in July 2018, we reduced the revolving commitment under the 2018 Credit Agreement from $750.0 million to $450.0 million. During the year ended December 31, 2018, we recognized on our consolidated statements of operations $3.4 million in debt extinguishment costs related to the 2018 Credit Agreement.

Convertible Notes

We issued $85.0 million aggregate principal amount of the Convertible Notes in November 2014 pursuant to an exemption from the registration requirements afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”).

During the fourth quarter of 2017, we received notice from holders of $15.0 million principal amount of the Convertible Notes to convert their Convertible Notes. The conversion of such Convertible Notes was settled in the first quarter of 2018, resulting in the issuance of 486,679 shares of our common stock, a $0.6 million reduction to debt discount and additional paid in capital, a $0.2 million loss on the extinguishment of debt and a cash payment of $15.0 million for the principal amount of such Convertible Notes. On November 15, 2019, the Convertible Notes matured, which resulted in the principal payment of $70.0 million and the issuance of 2,381,751 shares of our common stock for the premium associated with the Convertible Notes.

Senior Notes Offering

On July 6, 2018, we issued $300.0 million aggregate principal amount of the Senior Notes in an offering to persons reasonably believed to be qualified institutional buyers in the United States pursuant to Rule 144A under the Securities Act and to certain non-U.S. persons in transactions outside the United States pursuant to Regulation S under the Securities Act. Interest on the Senior Notes accrues at a rate of 6.875% per annum, payable semi-annually in arrears on January 15 and July 15 of each year, commencing on January 15, 2019, and the Senior Notes mature on July 15, 2026. Terms of the Senior Notes are governed by an indenture and supplemental indenture, each dated as of July 6, 2018, among us, our subsidiaries that guarantee our obligations under the Credit Agreement and Wilmington Trust, National Association, as trustee.

We received net proceeds from the offering of the Senior Notes of approximately $296.2 million, after deducting the initial purchasers’ discounts of $2.3 million and commissions and offering expenses of $1.5 million. The net proceeds from the offering were used to repay a portion of the borrowings under the 2018 Credit Agreement.

Notes payable consist of the following (in thousands):



	December 31,
	2019		2018
Notes payable under the Credit Agreement ($650.0 million revolving credit facility at December 31, 2019) maturing on May 31, 2022; interest paid monthly at LIBOR plus 2.50%; net of debt issuance costs of approximately $5.0 million and $3.7 million at December 31, 2019 and December 31, 2018, respectively	$	394,531	$	290,131
6.875% Senior Notes due July 15, 2026; interest paid semi-annually at 6.875%; net of debt issuance costs of approximately $2.2 million and $2.5 at December 31, 2019 and December 31, 2018, respectively; and approximately $1.8 million and $2.1 million in unamortized discount at December 31, 2019 and December 31, 2018, respectively	296,028		295,352
Convertible Notes matured November 15, 2019; interest paid semi-annually at 4.25%; net of debt issuance costs of approximately $0.0 million and $0.4 million at December 31, 2019 and December 31, 2018, respectively; and approximately $0.0 million and $1.3 million in unamortized discount at December 31, 2019 and December 31, 2018, respectively	—		68,251
Total Notes Payable	$	690,559	$	653,734

As of December 31, 2019, the annual aggregate maturities of notes payable during each of the next five fiscal years are as follows (in thousands):



	Amount
2020	$	—
2021	—
2022	399,558
2023	—
2024	—
Thereafter	300,000
Total notes payable	699,558
Less: Debt discount	(1,758		)
Less: Debt issuance costs	(7,241		)
Net notes payable	$	690,559

Capitalized Interest

Interest activity, including other financing costs, for notes payable for the periods presented is as follows (in thousands):



	Year Ended December 31,
	2019			2018			2017
Interest incurred	$	45,555		$	38,216		$	24,275
Less: Amounts capitalized	(45,555		)	(38,216		)	(24,275		)
Interest expense	$	—		$	—		$	—

Cash paid for interest	$	42,438		$	23,376		$	19,704

Included in interest incurred was amortization of deferred financing costs for notes payable and amortization of the Convertible Notes and the Senior Notes discounts of $4.1 million, $4.6 million, and $4.1 million for the years ended December 31, 2019, 2018, and 2017, respectively.

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The provision for income taxes consisted of the following (in thousands):



	Year ended December 31,
	2019			2018			2017
Current:
Federal	$	47,886		$	39,053		$	55,218
State	7,169			5,483			4,970
Current tax provision	55,055			44,536			60,188
Deferred:
Federal	(1,637		)	(663		)	(1,918		)
State	(194		)	(61		)	(174		)
Deferred tax provision (benefit)	(1,831		)	(724		)	(2,092		)
Total income tax provision	$	53,224		$	43,812		$	58,096

Income taxes paid were $38.0 million, $83.3 million and $16.8 million for the years ended December 31, 2019, 2018 and 2017, respectively.

A reconciliation of the provision for income taxes and the amount computed by applying the statutory federal income tax rate to income before provision for income taxes for the years ended December 31, 2019, 2018 and 2017 (in thousands):



	Year Ended December 31,
	2019					2018					2017
Tax at federal statutory rate ⁽¹⁾	$	48,685		21.0	%	$	41,816		21.0	%	$	60,008		35.0	%
State income taxes (net of federal benefit)	5,497			2.4		4,263			2.1		3,060			1.8
Domestic production activity deduction	—			—		—			—		(5,461		)	(3.2	)
Stock-based compensation	(1,749		)	(0.8	)	(3,107		)	(1.5	)	(1,039		)	(0.6	)
Non deductible expenses and other	771			0.4		850			0.4		382			0.2
Change in tax rates - deferred taxes	20			—		(10		)	—		1,146			0.7
Tax at effective rate	$	53,224		23.0	%	$	43,812		22.0	%	$	58,096		33.9	%

(1) The Tax Act (as defined below) reduced the U.S. federal statutory rate from 35% to 21% beginning in 2018.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

The components of net deferred tax assets and liabilities at December 31, 2019 and 2018 are as follows (in thousands):



	December 31
	2019			2018
Deferred tax assets:
Accruals and reserves	$	3,035		$	2,642
Lease	1,026			—
Inventory	692			755
Stock-based compensation	2,892			1,918
Debt Extinguishment	134			531
Other	79			297
Total deferred tax assets	7,858			6,143
Deferred tax liabilities:
Discount on Convertible Notes	—			(307		)
Prepaids	(1,382		)	(2,370		)
Lease	(1,219		)	—
Tax depreciation in excess of book depreciation	(19		)	(183		)
Goodwill and other assets amortized for tax	(617		)	(493		)
Total deferred tax liabilities	(3,237		)	(3,353		)
Total net deferred tax assets (liabilities)	$	4,621		$	2,790

All Company operations are domestic. We file U.S. and state income tax returns in jurisdictions with varying statutes of limitations. The statute of limitations with regards to our federal income tax filings is three years. The statute of limitations for our state tax jurisdictions is three to four years depending on the jurisdiction. In the normal course of business, we are subject to tax audits in various jurisdictions, and such jurisdictions may assess additional income taxes. We do not expect the outcome of any audit to have a material effect on our consolidated financial statements; however, audit outcomes and the timing of audit adjustments are subject to significant uncertainty.

On December 22, 2017, the President signed into law the U.S. federal income tax legislation commonly referred to as the “Tax Cuts and Jobs Act” (the “Tax Act”), reducing the U.S. federal corporate income tax rate for tax years beginning after December 31, 2017, among other changes. Under ASC 740, Income Taxes (“ASC 740”), the effects of the Tax Act are recognized in the period that includes the date of enactment. The effect of this change impacted our effective tax rate and reduced the value of our deferred tax assets by approximately $1.1 million.

Equity

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Equity

EQUITY

We are authorized to issue 250,000,000 shares of common stock, par value $0.01 per share, and 5,000,000 shares of preferred stock, par value $0.01 per share. As of December 31, 2019 and 2018, no shares of preferred stock were issued or outstanding.

At December 31, 2019, we had 26,398,409 shares of common stock issued and 25,359,409 shares of common stock outstanding, including 1,039,000 treasury shares of our common stock. At December 31, 2018, we had 23,746,385 shares of common stock issued and 22,707,385 shares of common stock outstanding, including the 1,039,000 treasury shares of our common stock purchased by us. On November 15, 2019, the Convertible Notes matured, which resulted in the principal payment of $70.0 million and the issuance of 2,381,751 shares of our common stock for the premium associated with the Convertible Notes.

Shelf Registration Statement

We have an effective shelf registration statement on Form S-3 (Registration No. 333-227012) that was filed on August 24, 2018 with the Securities and Exchange Commission, registering the offering and sale of an indeterminate amount of debt securities, guarantees of debt securities, preferred stock, common stock, warrants, depositary shares, purchase contracts and units that include any of these securities.

Stock Repurchase Program

In November 2018, we announced that our Board of Directors (the “Board”) authorized a stock repurchase program, pursuant to which we may purchase up to $50.0 million of shares of our common stock through open market transactions, privately negotiated transactions or otherwise in accordance with applicable laws. For the year ended December 31, 2019, we did not repurchase any shares of our common stock. For the year ended December 31, 2018, we repurchased 39,000 shares of our common stock for $1.5 million to be held as treasury stock. As of December 31, 2019 we may purchase up to $48.5 million of shares of our common stock under our stock repurchase program.

Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31, 2019, 2018, and 2017.



	For the Year Ended December 31,
	2019		2018		2017
Numerator (in thousands):
Net income	$	178,608	$	155,286	$	113,306
Denominator:
Basic weighted average shares outstanding	23,191,595		22,551,762		21,604,932
Effect of dilutive securities:
Convertible Notes - treasury stock method	1,966,639		2,030,023		1,975,648
Stock-based compensation units	272,607		310,489		352,542
Diluted weighted average shares outstanding	25,430,841		24,892,274		23,933,122

Basic earnings per share	$	7.70	$	6.89	$	5.24
Diluted earnings per share	$	7.02	$	6.24	$	4.73
Antidilutive non-vested restricted stock units excluded from calculation of diluted earnings per share	14,211		20,462		16,473

In accordance with ASC 260-10, Earnings Per Share, we calculated the dilutive effect of the Convertible Notes using the treasury stock method, since we had the intent and ability to settle the principal amount of the outstanding Convertible Notes in cash. The Convertible Notes matured and were repaid in full on November 15, 2019. Prior to maturity of the Convertible Notes, we included the effect of the additional potential dilutive shares if our common stock price exceeded the conversion price of $21.52 per share under the treasury stock method.

Throughout each fiscal year presented to the maturity date of the Convertible Notes, the average market price of our common stock exceeded the conversion price of $21.52 per share; therefore, the calculation of diluted earnings per share for all years presented includes the effect of our common stock related to the conversion spread of the Convertible Notes.

Stock-Based Compensation

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

STOCK-BASED COMPENSATION

Non-performance Based Restricted Stock Units

A total of 3,000,000 shares of our common stock have been reserved for issuance under the LGI Homes, Inc. Amended and Restated 2013 Equity Incentive Plan (the “2013 Incentive Plan”). There were 162,686 restricted stock units (“RSUs”) outstanding at December 31, 2019, issued at a $0.00 exercise price.

The following table summarizes the activity of our time-vested RSUs:



	Shares		Weighted Average Grant Date Fair Value
Balance at December 31, 2016	133,853		$	20.13
Granted	76,586		$	36.83
Vested	(25,803	)	$	18.45
Forfeited	(9,536	)	$	20.48
Balance at December 31, 2017	175,100		$	27.66
Granted	54,874		$	57.60
Vested	(51,694	)	$	20.79
Forfeited	(7,225	)	$	34.77
Balance at December 31, 2018	171,055		$	39.04
Granted	62,512		$	60.72
Vested	(55,230	)	$	26.47
Forfeited	(15,651	)	$	47.73
Balance at December 31, 2019	162,686		$	50.84

In 2019, we issued 20,847 RSUs to senior management for the time-based portion of our 2019 long-term incentive compensation program and 16,159 RSUs for 2018 annual bonuses to managers, which generally cliff vest on the third anniversary of the grant date. In 2018, we issued 15,867 RSUs to senior management for the time-based portion of our 2018 long-term incentive compensation program and 11,780 RSUs for 2017 annual bonuses to managers, which generally cliff vest on the third anniversary of the grant date. In 2017, we issued 27,764 RSUs to senior management for the time-based portion of our 2017 long-term incentive compensation program and 18,366 RSUs for 2016 annual bonuses to managers, which generally cliff vest on the third anniversary of the grant date. In addition, during the years ended December 31, 2019, 2018 and 2017, we issued 25,506, 27,227 and 30,456 RSUs, respectively, to certain employees, executives and non-employee directors, which vest over periods ranging from one to three years. Under the terms of the grant award agreements, all of the RSUs may only be settled in shares of our common stock.

We recognized $2.2 million, $2.0 million, and $1.3 million of stock-based compensation expense related to outstanding RSUs grants for the years ended December 31, 2019, 2018 and 2017, respectively. At December 31, 2019, we had unrecognized compensation cost of $4.3 million related to unvested RSUs, which is expected to be recognized over a weighted average period of 1.7 years.

Performance Based Restricted Stock Units

The Compensation Committee of the Board has granted awards of performance-based RSUs (“PSUs”) under the 2013 Incentive Plan to certain members of senior management based on three-year performance cycles. At December 31, 2019, there were 246,052 PSUs outstanding that have been granted to certain members of management at a $0.00 exercise price. The PSUs provide for shares of our common stock to be issued based on the attainment of certain performance metrics over the applicable three-year periods. The number of shares of our common stock that may be issued to the recipients for the PSUs range from 0% to 200% of the target amount depending on actual results as compared to the target performance metrics. The terms of the PSUs provide that the payouts will be capped at 100% of the target number of PSUs granted if absolute total stockholder return is negative during the performance period, regardless of EPS performance; this market condition applies for amounts recorded above target. The compensation expense associated with the grants of PSU is determined using the derived grant date fair value, based on a third-party valuation analysis, and expensed over the applicable period. The PSUs vest upon the determination date for the actual results at the end of the three-year period and require that the recipients continue to be employed by us through the determination date. The PSUs can only be settled in shares of our common stock.



Period Granted	Performance Period	Target PSUs Outstanding at December 31, 2018	Target PSUs Granted	Target PSUs Vested		Target PSUs Forfeited		Target PSUs Outstanding at December 31, 2019	Weighted Average Grant Date Fair Value
2016	2016 - 2018	83,656	—	(83,656	)	—		—	$	21.79
2017	2017 - 2019	108,247	—	—		(3,477	)	104,770	$	31.64
2018	2018 - 2020	61,898	—	—		(1,858	)	60,040	$	64.60
2019	2019 -2021	—	83,367	—		(2,125	)	81,242	$	56.49
Total		253,801	83,367	(83,656	)	(7,460	)	246,052

At December 31, 2019, management estimates that the recipients will receive approximately106%, 128%, and 199%, of the 2019, 2018, and 2017 target number of PSUs, respectively, at the end of the applicable three-year performance cycle based on projected performance compared to the target performance metrics. The 2016 - 2018 performance period grants vested and issued on March 15, 2019 at 200% of the target number. We recognized $4.8 million, $4.0 million, and $2.9 million of total stock-based compensation expense related to outstanding PSUs grants for the years ended December 31, 2019, 2018 and 2017, respectively. At December 31, 2019, we had unrecognized compensation cost of $5.7 million, based on the probable amount, related to unvested PSUs, which is expected to be recognized over a weighted average period of 1.8 years.

Employee Stock Purchase Plan

The LGI Homes, Inc. Employee Stock Purchase Plan (the “ESPP”) provides for employees to make quarterly elections for payroll withholdings to purchase shares of our common stock at a 15% discount from the closing price of our common stock on the purchase date, which is the last business day of each calendar quarter. During the years ended December 31, 2019, 2018 and 2017, we issued 47,731, 49,744, and 33,887 shares of our common stock to the ESPP participants. We received net proceeds of approximately $2.9 million, $2.7 million and $1.6 million related to the ESPP for 2019, 2018, and 2017, respectively. We recognized $0.5 million, $0.4 million, and $0.2 million in stock compensation expense related to the ESPP for 2019, 2018, and 2017, respectively. The ESPP contributions are not refundable (other than in the case of termination of employment) and, therefore, the shares purchasable with the amounts withheld are included in weighted-average shares outstanding for both basic and diluted earnings per share. The maximum aggregate number of shares of our common stock which may be issued pursuant to the ESPP is 500,000 shares, and as of December 31, 2019, 349,240 shares of our common stock remain available for issuance under the ESPP.

Fair Value Disclosure

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Disclosures

FAIR VALUE DISCLOSURES

ASC Topic 820, Fair Value Measurements (“ASC 820”), defines fair value as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date” within an entity’s principal market, if any. The principal market is the market in which the reporting entity would sell the asset or transfer the liability with the greatest volume and level of activity, regardless of whether it is the market in which the entity will ultimately transact for a particular asset or liability or if a different market is potentially more advantageous. Accordingly, this exit price concept may result in a fair value that differs from the transaction price or market price of the asset or liability.

ASC 820 provides a framework for measuring fair value under GAAP, expands disclosures about fair value measurements, and establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of the fair value hierarchy are summarized as follows:

Level 1 - Fair value is based on quoted prices in active markets for identical assets or liabilities.

Level 2 - Fair value is determined using significant observable inputs, generally either quoted prices in active markets for

similar assets or liabilities, or quoted prices in markets that are not active.

Level 3 - Fair value is determined using one or more significant inputs that are unobservable in active markets at the

measurement date, such as a pricing model, discounted cash flow, or similar technique.

We utilize fair value measurements to account for certain items and account balances within our consolidated financial statements. Fair value measurements may also be utilized on a nonrecurring basis, such as for the impairment of long-lived assets. The fair value of financial instruments, including cash and cash equivalents, accounts receivable and accounts payable, approximate their carrying amounts due to the short-term nature of these instruments. As of December 31, 2019, the Credit Agreement’s carrying value approximates market value since it has a floating interest rate, which increases or decreases with market interest rates and our leverage ratio.

In order to determine the fair value of the Convertible Notes and the Senior Notes listed below, the future contractual cash flows are discounted at our estimate of current market rates of interest, which were determined based upon the average interest rates of similar convertible notes and senior notes within the homebuilding industry (Level 2 measurement).

The following table below shows the level and measurement of liabilities at December 31, 2019 and 2018 (in thousands):



		December 31, 2019				December 31, 2018
	Fair Value Hierarchy	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value⁽¹⁾
Convertible Notes⁽²⁾	Level 2	$	—	$	—	$	68,251	$	67,787
Senior Notes	Level 2	$	296,028	$	337,853	$	295,352	$	296,905


(1)	Excludes the fair value of the equity component of the Convertible Notes. See the “Convertible Notes” section within Note 7 for further details.

(2)

The Convertible Notes matured on November 15, 2019 and were repaid in full on such date.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Related Party Transactions	12 Months Ended
Related Party Transactions	Dec. 31, 2019
Related Party Transactions [Abstract]
Related Party Transactions	RELATED PARTY TRANSACTIONS Land Purchases from Affiliates As of December 31, 2019, we have two land purchase contracts to purchase a total of 198 finished lots in Pasco County and Manatee County, Florida from affiliates of one of our directors for a total base purchase price of approximately $6.9 million. The lots will be purchased in takedowns, subject to annual price escalation ranging from 3% to 6% per annum, and may provide for additional payments to the seller at the time of sale to the homebuyer. We have a $0.5 million non-refundable deposit at December 31, 2019 related to these land purchase contracts. We purchased the first takedown of 58 lots on the Pasco County contract during the twelve months ended December 31, 2019 for a base purchase price of approximately $2.1 million. We anticipate the first closing on the Manatee County contract and the second takedown on the Pasco County contract to occur in 2020. In 2018, we completed our commitments under a land purchase contract to purchase 106 finished lots in Montgomery County, Texas from an affiliate of a family member of our chief executive officer for a total base purchase price of approximately $8.0 million. The lots were purchased in takedowns of at least 21 lots during successive six-month periods, subject to 5% annual price escalation and certain price protection terms. During 2018, we purchased the final takedown of 22 lots under this land purchase contract for $1.8 million and a $100,000 non-refundable deposit related to this land purchase contract was applied to this takedown. Home Sales to Affiliates In 2017, we sold three homes to an affiliate of one of our directors for approximately $0.7 million.

Retirement Benefits	12 Months Ended
Retirement Benefits	Dec. 31, 2019
Retirement Benefits [Abstract]
Retirement Benefits Disclosure	RETIREMENT BENEFITS Our employees are eligible to participate in a 401(k) savings plan. Employees are eligible to participate after completing 90 days of service and having attained the age of 21. Salary deferrals are allowed in amounts up to 100% of an eligible employee’s salary, not to exceed the maximum allowed by law. A discretionary match may be made by us of up to 100% of the first 4% of an eligible employee’s deferral, not to exceed the maximum allowed by law. For each of the years ended December 31, 2019, 2018 and 2017, our matching contributions were $2.9 million, $2.6 million and $1.8 million, respectively.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

Contingencies

In the ordinary course of doing business, we are subject to claims or proceedings from time to time relating to the purchase, development, and sale of real estate and homes and other aspects of our homebuilding operations. Management believes that these claims include usual obligations incurred by real estate developers and residential home builders in the normal course of business. In the opinion of management, these matters will not have a material effect on our consolidated financial position, results of operations or cash flows.

We have provided unsecured environmental indemnities to certain lenders and other counterparties. In each case, we have performed due diligence on the potential environmental risks including obtaining an independent environmental review from outside environmental consultants. These indemnities obligate us to reimburse the guaranteed parties for damages related to environmental matters. There is no term or damage limitation on these indemnities; however, if an environmental matter arises, we may have recourse against other previous owners. In the ordinary course of doing business, we are subject to regulatory

proceedings from time to time related to environmental and other matters. In the opinion of management, these matters will not have a material effect on our consolidated financial position, results of operations, or cash flows.

Land Deposits

We have land purchase contracts, generally through cash deposits, for the right to purchase land or lots at a future point in time with predetermined terms. We do not have title to the property, and obligations with respect to the land purchase contracts are generally limited to the forfeiture of the related nonrefundable cash deposits. The following is a summary of our land purchase deposits included in pre-acquisition costs and deposits (in thousands, except for lot count):



	December 31,
	2019		2018
Land deposits and option payments	$	35,111	$	40,015
Commitments under the land purchase contracts if the purchases are consummated	$	539,122	$	776,224
Lots under land purchase contracts	16,205		22,820

As of December 31, 2019 and 2018, approximately $26.3 million and $25.2 million, respectively, of the land deposits are related to purchase contracts to deliver finished lots that are refundable under certain circumstances and secured by mortgages or letters of credit, or guaranteed by the seller or its affiliates.

Lease Obligations

As described in the “Recently Adopted Accounting Standards” section within Note 2, as of January 1, 2019, we adopted the provisions of ASU 2016-02 and recognized lease obligations and associated ROU assets for our existing non-cancelable leases. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We have non-cancelable operating leases primarily associated with our corporate and regional office facilities. Operating lease expense is recognized on a straight-line basis over the lease term, subject to any changes in the lease or expectations regarding the terms. Variable lease costs such as common area costs and property taxes are expensed as incurred. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. ROU assets, as included in other assets on the consolidated balance sheets, were $5.3 million as of December 31, 2019. Lease obligations, as included in accrued expenses and other liabilities on the consolidated balance sheets, were $5.6 million as of December 31, 2019.

Operating lease cost, as included in general and administrative expense in our consolidated statements of operations, totaled $1.3 million, $1.0 million and $1.0 million for the years ended December 31, 2019, 2018 and 2017, respectively. Cash paid for amounts included in the measurement of lease liabilities for operating leases during the year ended December 31, 2019 was $1.3 million. As of December 31, 2019, the weighted-average discount rate was 5.46% and our weighted-average remaining life was 7.2 years. We do not have any significant lease contracts that have not yet commenced at December 31, 2019.

The table below shows the future minimum payments under non-cancelable operating leases at December 31, 2019 (in thousands):



Year Ending December 31,	Operating leases
2020	1,140
2021	1,095
2022	944
2023	819
2024	674
Thereafter	2,239
Total	6,911
Lease amount representing interest	(1,266		)
Present value of lease liabilities	$	5,645

Bonding and Letters of Credit

We have outstanding letters of credit and performance and surety bonds totaling $108.7 million (including $11.6 million of letters of credit issued under the Credit Agreement) and $77.5 million at December 31, 2019 and 2018, respectively, related to our obligations for site improvements at various projects. Management does not believe that draws upon the letters of credit, surety bonds, or financial guarantees if any, will have a material effect on our consolidated financial position, results of operations, or cash flows.

Segment Information

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

We operate one principal homebuilding business that is organized and reports by division. We have seven operating segments that we aggregate into five reportable segments at December 31, 2019: our Central, Northwest, Southeast, Florida, and West reportable segments. The Central reportable segment is our largest reportable segment and comprised approximately 39.4%, 41.5% and 42.4% of total home sales revenues for the years ended December 31, 2019, 2018 and 2017, respectively.

In accordance with ASC Topic 280, Segment Reporting, operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision-makers (“CODMs”) in deciding how to allocate resources and in assessing performance. The CODMs primarily evaluate performance based on the number of homes closed, gross margin and average sales price.

The seven operating segments qualify as our five reportable segments. In determining the most appropriate reportable segments, we consider operating segments’ economic and other characteristics, including home floor plans, average selling prices, gross margin percentage, geographical proximity, production construction processes, suppliers, subcontractors, regulatory environments, customer type, and underlying demand and supply. Each operating segment follows the same accounting policies and is managed by our management team. We have no inter-segment sales, as all sales are to external customers. Operating results for each segment may not be indicative of the results for such segment had it been an independent, stand-alone entity for the periods presented. Financial information relating to our reportable segments was as follows (in thousands):



	For the Year Ended December 31,
	2019			2018			2017
Revenues:
Central	$	724,981		$	623,751		$	533,254
Southeast	347,817			271,073			183,422
Northwest	304,294			277,567			215,421
West	271,186			151,059			126,130
Florida	189,876			180,950			199,733
Total home sales revenues	$	1,838,154		$	1,504,400		$	1,257,960

Net income (loss) before income taxes:
Central	$	117,350		$	104,625		$	89,133
Southeast	30,316			29,078			19,959
Northwest	46,863			40,906			34,206
West	28,504			13,595			5,890
Florida	16,012			21,341			25,687
Corporate ⁽¹⁾	(7,213		)	(10,447		)	(3,473		)
Total net income (loss) before income taxes	$	231,832		$	199,098		$	171,402

(1)The Corporate balance consists primarily of general and administration unallocated costs for various shared service functions, as well as our warranty reserve and loss on extinguishment of debt. Actual warranty expenses are reflected within the reportable segments.



	December 31,
Assets:	2019		2018
Central	$	637,083	$	569,409
Southeast	410,944		300,758
Northwest	221,132		200,443
West	193,545		161,514
Florida	149,877		106,398
Corporate ⁽¹⁾	53,534		56,951
Total assets	$	1,666,115	$	1,395,473

(1) As of December 31, 2019, the Corporate balance consists primarily of cash, prepaid insurance, ROU assets and prepaid expenses. As of December 31, 2018, the Corporate balance consists primarily of cash, prepaid insurance and prepaid expenses.

Selected Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Financial Data (Unaudited)

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

Quarterly results are as follows (in thousands, except per share data):



	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
	2019		2019		2019		2019
Total home sales revenues	$	287,594	$	461,830	$	483,081	$	605,649
Gross margin	66,304		111,311		116,650		142,214
Income before income taxes	21,694		60,535		64,732		84,871
Net income	18,334		46,055		49,349		64,870
Basic earnings per share	0.81		2.01		2.15		2.69
Diluted earnings per share	0.73		1.82		1.93		2.52



	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
	2018		2018		2018		2018
Total home sales revenues	$	279,024	$	419,847	$	380,369	$	425,160
Gross margin	69,259		109,765		97,334		103,558
Income before income taxes	31,227		62,671		48,991		56,209
Net income	27,302		47,608		37,723		42,653
Basic earnings per share	1.23		2.11		1.66		1.89
Diluted earnings per share	1.10		1.90		1.52		1.72

Quarterly and year-to-date computations of per share amounts are made independently. Therefore, the sum of per share amounts for the quarters may not agree with per share amounts for the year.

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2019
Accounting Policies [Abstract]
Basis of Presentation Policy	Basis of Presentation The consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) and include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates Policy	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates, and these differences could have a significant impact on the financial statements. The significant accounting estimates include real estate inventory and cost of sales, impairment of real estate inventory and property and equipment, goodwill, warranty reserves, the fair value of the convertible debt, loss contingencies, incentive compensation expense, and income taxes.
Cash and Cash Equivalents and Concentration of Credit Risk Policy	Cash and Cash Equivalents and Concentration of Credit Risk Cash and cash equivalents are defined as cash on hand, demand deposits with financial institutions, and short-term liquid investments with an initial maturity date of less than three months. Our cash in demand deposit accounts may exceed federally insured limits and could be negatively impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. To date, we have experienced no loss or diminished access to cash in our demand deposit accounts.
Accounts Receivable Policy	Accounts Receivable Accounts receivable consist primarily of proceeds due from title companies for sales closed prior to period end and are generally collected within a few days from closing.
Real Estate Inventory Policy	Real Estate Inventory Inventory consists of land, land under development, finished lots, information centers, homes in progress, and completed homes. Inventory is stated at cost unless the carrying amount is determined not to be recoverable, in which case the affected inventory is written down to fair value. Land, development and other project costs, including interest and property taxes incurred during development and home construction and net of expected reimbursements of development costs, are capitalized to real estate inventory. Land development and other common costs that benefit the entire community, including field construction supervision and related direct overhead, are allocated to individual lots or homes, as appropriate. The costs of lots are assigned to homes in progress when home construction begins. Home construction costs and related carrying charges are allocated to the cost of individual homes using the specific identification method. Costs that are not specifically identifiable to a home are allocated on a pro rata basis, which we believe approximates the costs that would be determined using an allocation method based on relative sales values since the individual lots or homes within a community are similar in value. Inventory costs for completed homes are expensed to cost of sales as homes are closed. Changes to estimated total development costs subsequent to initial home closings in a community are generally allocated to the remaining unsold lots and homes in the community on a pro rata basis. The life cycle of a community generally ranges from two to five years, commencing with the acquisition of land, continuing through the land development phase, and concluding with the construction and sale of homes. A constructed home is used as the community information center during the life of the community and then sold. Actual individual community lives will vary based on the size of the community, the sales absorption rate, and whether the property was purchased as raw land or finished lots. In accordance with ASC Topic 360, Property, Plant, and Equipment, real estate inventory is evaluated for indicators of impairment by each community during each reporting period. In conducting its review for indicators of impairment on a community level, management evaluates, among other things, the margins on homes that have been closed, communities with slow moving inventory, projected margins on future home sales over the life of the community, and the estimated fair value of the land. For individual communities with indicators of impairment, additional analysis is performed to estimate the community’s undiscounted future cash flows. If the estimated undiscounted future cash flows are greater than the carrying value of the community group of assets, no impairment adjustment is required. If the undiscounted cash flows are less than the community’s carrying value, the asset group is impaired and is written down to its fair value. We estimate the fair value of communities using a discounted cash flow model. As of December 31, 2019 and 2018, the real estate inventory is stated at cost; there were no inventory impairment charges recorded during the years ended December 31, 2019, 2018 and 2017.
Capitalized Interest Policy	Capitalized Interest Interest and other financing costs are capitalized as cost of inventory during community development and home construction activities, in accordance with ASC Topic 835, Interest and expensed in cost of sales as homes in the community are closed. To the extent the debt exceeds qualified assets, a portion of the interest incurred is expensed.
Pre-Acquisition Costs and Deposits Policy	Pre-Acquisition Costs and Deposits Amounts paid for land options, deposits on land purchase contracts, and other pre-acquisition costs are capitalized and classified as deposits to purchase. Upon execution of the purchase, these deposits are applied to the acquisition price of the land and recorded as a cost component of the land in real estate inventory. To the extent that any deposits are nonrefundable and the associated land acquisition process is terminated or no longer determined probable, the deposit and related pre-acquisition costs are charged to general and administrative expenses. Management reviews the likelihood of the acquisition of contracted lots in conjunction with its periodic real estate impairment analysis. Under ASC Topic 810, Consolidation (“ASC 810”), a nonrefundable deposit paid to an entity is deemed to be a variable interest that will absorb some or all of the entity’s expected losses if they occur. Non-refundable land purchase and lot option deposits generally represent our maximum exposure if we elect not to purchase the optioned property. In some instances, we may also expend funds for due diligence, development and construction activities with respect to optioned land prior to close. Such costs are classified as preacquisition costs, which we would have to absorb should the option not be exercised. Therefore, whenever we enter into a land option or purchase contract with an entity and make a nonrefundable deposit, we may have a variable interest in a variable interest entity (“VIE”). In accordance with ASC 810, we perform ongoing reassessments of whether we are the primary beneficiary of a VIE and would consolidate the VIE if we are deemed to be the primary beneficiary. As of December 31, 2019 and 2018, we were not deemed to be the primary beneficiary for any VIEs associated with non-refundable land deposits.
Deferred Loan Costs Policy	Deferred Loan Costs Deferred loan costs represent debt issuance costs related to a recognized debt liability and are presented in the balance sheet as a direct deduction from the carrying amount of that debt liability.
Other Assets Policy	Other Assets Other assets consist primarily of prepaid insurance, prepaid expenses, security deposits, and right-of-use (“ROU”) assets. Our prepaid insurance and prepaid expenses were $7.8 million and $12.1 million as of December 31, 2019 and 2018, respectively.
Property and Equipment Policy	Property and Equipment, Net Property, building, equipment and leasehold improvements are stated at cost, less accumulated depreciation. Depreciation expense is recorded in general and administrative expenses. Upon sale or retirement, the costs and related accumulated depreciation are eliminated from the respective accounts and any resulting gain or loss is included in other income, net. Depreciation is generally computed using the straight-line method over the estimated useful lives of the assets, ranging from two to five years for property and equipment and 30 years for our building. Leasehold improvements are depreciated over the shorter of the asset life or the term of the lease. Maintenance and repair costs are expensed as incurred. Impairments of long-lived assets are determined periodically when indicators of impairment are present. If such indicators are present, the determination of the amount of impairment is based on judgments as to the future undiscounted operating cash flows to be generated from these assets throughout the remaining estimated useful lives. If these undiscounted cash flows are less than the carrying amount of the related asset, impairment is recognized for the excess of the carrying value over its fair value. There were no impairments of property, equipment and leasehold improvements recorded during the years ended December 31, 2019, 2018 and 2017.
Investment in unconsolidated entity	Investment in Unconsolidated Entity We have an investment in a unconsolidated entity with an independent third party. The equity method of accounting is used for unconsolidated entities over which we have significant influence; generally, this represents ownership interests of at least 20% and not more than 50%. Under the equity method of accounting, we recognize our proportionate share of the earnings and losses of this entity. In the event we buy land from this entity we intend to defer the recognition of profits from such activities until the time we ultimately sell the related land. We evaluate our investment in the unconsolidated entity for recoverability in accordance with ASC Topic 323, Investments - Equity Method and Joint Ventures (“ASC 323”). If we determine that a loss in the value of the investment is other than temporary, we write down the investment to its estimated fair value. Any such losses are recorded to equity in (earnings) loss of unconsolidated entities, which is reflected in other income, net. Due to uncertainties in the estimation process and the significant volatility in demand for new housing, actual results could differ significantly from such estimates.
Goodwill and Intangible Assets Policy	Goodwill and Intangible Assets The excess of the purchase price of a business acquisition over the net fair value of assets acquired and liabilities assumed is capitalized as goodwill in accordance with ASC Topic 805, Business Combinations. Goodwill and intangible assets that do not have finite lives are not amortized, but are assessed for impairment at least annually or more frequently if certain impairment indicators are present. The $12.0 million of goodwill is related to the reorganization transactions completed in connection with the initial public offering of our common stock in November 2013. In applying the goodwill impairment test, we have the option to perform a qualitative test (also known as “Step 0”) or a two-step quantitative test (consisting of “Step 1” and “Step 2”). Under the Step 0 test, we first assess qualitative factors to determine whether it is more likely than not that the fair value of the reporting units is less than their carrying value. Qualitative factors may include, but are not limited to, economic conditions, industry and market considerations, cost factors, overall financial performance of the reporting unit and other entity and reporting unit specific events. If after assessing these qualitative factors, we determine it is “more-likely-than-not” that the fair value of the reporting unit is less than the carrying value, then performing the two-step quantitative test is necessary. Annually, we performed a Step 0 analysis and determined that it is not “more likely than not” that the fair values of the reporting units were less than their carrying amounts. No goodwill impairment charges were recorded in 2019, 2018 and 2017.
Warranty Reserves Policy	Warranty Reserves Future direct warranty costs are accrued and charged to cost of sales in the period when the related home is closed. Our warranty liability is based upon historical warranty cost experience and is adjusted as appropriate to reflect qualitative risks associated with the types of homes built, the geographic areas in which they are built, and potential impacts of our continued expansion. Warranty reserves are reviewed quarterly to assess the reasonableness and adequacy and adjusted, as needed, to reflect changes in trends and historical data as information becomes available.
Customer Deposits Policy	Customer Deposits Customer deposits are received upon signing a purchase contract and are generally $1,000 . Deposits are generally refundable if the customer is unable to obtain financing. Forfeited buyer deposits related to home sales are recognized in other income in the period in which it is determined that the buyer will not complete the purchase of the property and the deposit is nonrefundable to the buyer.
Home Sales Policy	Home Sales
Cost of Sales Policy	Cost of Sales As discussed under “—Real Estate Inventory” above, cost of sales for homes closed include the construction costs of each home and allocable land acquisition and land development costs, capitalized interest, and other related common costs (both incurred and estimated to be incurred).
Selling and Commission Costs Policy	Selling and Commission Costs Sales commissions are paid and expensed based on homes closed. Other selling costs are expensed in the period incurred.
Advertising Costs Policy	Advertising Costs Advertising and direct mail costs are expensed as incurred. Advertising and direct mail costs were $20.2 million, $17.6 million and $15.2 million for the years ended December 31, 2019, 2018, and 2017, respectively.
Income Taxes Policy	Income Taxes We are a taxable entity subject to federal and state taxes. We utilize the liability method of accounting for income taxes. Under the liability method, deferred tax assets and liabilities are recognized using enacted tax rates for the effect of temporary differences between the book and tax bases of recorded assets and liabilities. Changes in tax rate are recognized in the year of enactment. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the net deferred tax assets will not be realized. Our ability to realize deferred tax assets is assessed throughout the year and a valuation allowance is established, if required. We recognize the impact of a tax position only if it is more likely than not to be sustained upon examination based on the technical merits of the position. We recognize potential interest and penalties related to uncertain tax positions in income tax expense.
Earnings Per Share Policy	Earnings Per Share Basic earnings per share is based on the weighted average number of shares of common stock outstanding. Diluted earnings per share is based on the weighted average number of shares of common stock and dilutive securities outstanding. In accordance with ASC 260-10, Earnings Per Share, we calculated the dilutive effect of our 4.25% Convertible Notes due 2019 (the “Convertible Notes”) using the treasury stock method through the maturity date of the Convertible Notes, since we had the intent and ability to settle the principal amount of the outstanding Convertible Notes in cash. Under the treasury stock method, the Convertible Notes had a dilutive impact on diluted earnings per share to the extent that the average market price of our common stock for a reporting period exceeded the conversion price of $21.52 per share.The Convertible Notes matured on November 15, 2019, resulting in the issuance of 2,381,751 shares of our common stock. Diluted earnings per share excludes all dilutive potential shares of common stock if their effect is antidilutive.
Share-Based Compensation Policy	Stock-Based Compensation Compensation costs for non-performance-based restricted stock awards are measured using the closing price of our common stock on the date of grant and are expensed on a straight-line basis over the requisite service period of the award. Compensation costs for performance-based restricted stock awards also contain a market condition. These costs are measured using the derived grant date fair value, based on a third party valuation analysis, and are expensed in accordance with ASC 718-10-25-20, Compensation - Stock Compensation, which requires an assessment of probability of attainment of the performance target. Once the performance target outcome is determined to be probable, the cumulative expense is adjusted, as needed, to recognize compensation expense on a straight-line basis over the award’s requisite service period.
Recently Adopted New Accounting Pronouncements Policy	Recently Adopted Accounting Standards On January 1, 2019, we adopted the Financial Accounting Standards Board (the “FASB”) Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), which amends the existing standards for lease accounting, requiring lessees to recognize most leases on their balance sheets and disclose key information about leasing arrangements. The new standard establishes an ROU model that requires a lessee to recognize an ROU asset and lease liability on the balance sheet for all leases with a term longer than one year. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. We adopted the new standard with a modified retrospective transition approach, so financial information is not updated for periods prior to January 1, 2019. Pursuant to the adoption of the new standard, we elected the practical expedients upon transition that do not require us to reassess existing contracts to determine if they contain leases under the new definition of a lease, or to reassess historical lease classification or initial direct costs. We also elected the practical expedient to not separate lease and non-lease components for new leases after adoption of the new standard. The adoption of Topic 842 is accounted for as a change in accounting principle in conformity with FASB ASC 250, “Accounting Changes and Error Corrections.” As a result of the adoption, the most significant changes are related to the recognition of new ROU assets and lease liabilities of $5.4 million as of January 1, 2019 on the balance sheet for office operating leases. The Company's existing material leases are all considered operating leases under the new leasing standard and as a result, no adjustment to retained earnings was required.
New Accounting Pronouncements Policy	Recently Issued Accounting Pronouncements In August 2018, the 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 requires entities that are customers in cloud computing arrangements to defer implementation costs if they would be capitalized by the entity in software licensing arrangements under the internal-use software guidance. The guidance may be applied retrospectively or prospectively to implementation costs incurred after the date of adoption. ASU 2018-15 is effective for us beginning January 1, 2020. We are currently evaluating the impact that this standard will have on our financial statements. 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 modifies the disclosure requirements of fair value measurements. ASU 2018-13 is effective for us beginning January 1, 2020. Certain disclosures are required to be applied on a retrospective basis and others on a prospective basis. We do not expect ASU 2018-13 to have a material impact on our financial statements. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment” (“ASU 2017-04”), which removes the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for us beginning January 1, 2020, with early adoption permitted, and applied prospectively. We do not expect ASU 2017-04 to have a material impact on our financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which changes the impairment model for most financial assets and certain other instruments from an “incurred loss” approach to a new “expected credit loss” methodology. ASU 2016-13 is effective for us beginning January 1, 2020, with early adoption permitted. We are currently evaluating the impact that this standard will have on our financial statements.

Revenues (Tables)

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue from External Customers by Products

The following table presents our home sales revenues disaggregated by revenue stream (in thousands):



	For the Year Ended December 31,
	2019		2018		2017
Retail home sales revenues	$	1,714,277	$	1,394,475	$	1,217,191
Other	123,877		109,925		40,769
Total home sales revenues	$	1,838,154	$	1,504,400	$	1,257,960

Revenue from External Customers by Geographic Areas

The following table presents our home sales revenues disaggregated by geography, based on our determined operating segments in Note 15 (in thousands):



	For the Year Ended December 31,
	2019		2018		2017
Central	$	724,981	$	623,751	$	533,254
Southeast	347,817		271,073		183,422
Northwest	304,294		277,567		215,421
West	271,186		151,059		126,130
Florida	189,876		180,950		199,733
Home sales revenues	$	1,838,154	$	1,504,400	$	1,257,960

Real Estate Inventory (Tables)

12 Months Ended

Dec. 31, 2019

Inventory Disclosure [Abstract]

Schedule of Real Estate Inventory

Our real estate inventory consists of the following (in thousands):



	December 31,
	2019		2018
Land, land under development, and finished lots	$	912,651	$	736,402
Information centers	26,959		21,179
Homes in progress	234,470		149,506
Completed homes	325,544		321,169
Total real estate inventory	$	1,499,624	$	1,228,256

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment consist of the following (in thousands):



		December 31,
	Asset Life	2019			2018
	(years)
Computer equipment	2-5	$	1,395		$	1,342
Machinery and equipment	5	154			102
Furniture and fixtures	2-5	3,758			3,183
Buildings	30	145			—
Leasehold improvements	5	272			267
Total property and equipment		5,724			4,894
Less: Accumulated depreciation		(4,092		)	(3,462		)
Property and equipment, net		$	1,632		$	1,432

Accrued Expenses and Other Liabilities (Tables)

12 Months Ended

Dec. 31, 2019

Payables and Accruals [Abstract]

Accrued and Other Current Liabilities

Accrued and other liabilities consist of the following (in thousands):



	December 31,
	2019		2018
Taxes payable	$	28,679	$	10,773
Retentions and development payable	26,790		18,899
Accrued compensation, bonuses and benefits	16,748		13,913
Accrued interest	11,361		12,339
Inventory related obligations	7,808		7,041
Lease Liability	5,645		—
Warranty reserve	3,500		2,950
Other	17,337		10,640
Total accrued expenses and other liabilities	$	117,868	$	76,555

Changes in Companies' Warranty Accrual

Changes to our warranty accrual are as follows (in thousands):



	December 31,
	2019			2018			2017
Warranty reserves, beginning of period	$	2,950		$	2,450		$	1,600
Warranty provision	5,286			4,438			4,999
Warranty expenditures	(4,736		)	(3,938		)	(4,149		)
Warranty reserves, end of period	$	3,500		$	2,950		$	2,450

Notes Payable (Tables)

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Schedule of Notes Payable

Notes payable consist of the following (in thousands):



	December 31,
	2019		2018
Notes payable under the Credit Agreement ($650.0 million revolving credit facility at December 31, 2019) maturing on May 31, 2022; interest paid monthly at LIBOR plus 2.50%; net of debt issuance costs of approximately $5.0 million and $3.7 million at December 31, 2019 and December 31, 2018, respectively	$	394,531	$	290,131
6.875% Senior Notes due July 15, 2026; interest paid semi-annually at 6.875%; net of debt issuance costs of approximately $2.2 million and $2.5 at December 31, 2019 and December 31, 2018, respectively; and approximately $1.8 million and $2.1 million in unamortized discount at December 31, 2019 and December 31, 2018, respectively	296,028		295,352
Convertible Notes matured November 15, 2019; interest paid semi-annually at 4.25%; net of debt issuance costs of approximately $0.0 million and $0.4 million at December 31, 2019 and December 31, 2018, respectively; and approximately $0.0 million and $1.3 million in unamortized discount at December 31, 2019 and December 31, 2018, respectively	—		68,251
Total Notes Payable	$	690,559	$	653,734

Contractual Obligation, Fiscal Year Maturity Schedule

As of December 31, 2019, the annual aggregate maturities of notes payable during each of the next five fiscal years are as follows (in thousands):



	Amount
2020	$	—
2021	—
2022	399,558
2023	—
2024	—
Thereafter	300,000
Total notes payable	699,558
Less: Debt discount	(1,758		)
Less: Debt issuance costs	(7,241		)
Net notes payable	$	690,559

Schedule of Interest Activity for Notes Payable

Interest activity, including other financing costs, for notes payable for the periods presented is as follows (in thousands):



	Year Ended December 31,
	2019			2018			2017
Interest incurred	$	45,555		$	38,216		$	24,275
Less: Amounts capitalized	(45,555		)	(38,216		)	(24,275		)
Interest expense	$	—		$	—		$	—

Cash paid for interest	$	42,438		$	23,376		$	19,704

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense

The provision for income taxes consisted of the following (in thousands):



	Year ended December 31,
	2019			2018			2017
Current:
Federal	$	47,886		$	39,053		$	55,218
State	7,169			5,483			4,970
Current tax provision	55,055			44,536			60,188
Deferred:
Federal	(1,637		)	(663		)	(1,918		)
State	(194		)	(61		)	(174		)
Deferred tax provision (benefit)	(1,831		)	(724		)	(2,092		)
Total income tax provision	$	53,224		$	43,812		$	58,096

Schedule of Effective Income Tax Rate Reconciliation



	Year Ended December 31,
	2019					2018					2017
Tax at federal statutory rate ⁽¹⁾	$	48,685		21.0	%	$	41,816		21.0	%	$	60,008		35.0	%
State income taxes (net of federal benefit)	5,497			2.4		4,263			2.1		3,060			1.8
Domestic production activity deduction	—			—		—			—		(5,461		)	(3.2	)
Stock-based compensation	(1,749		)	(0.8	)	(3,107		)	(1.5	)	(1,039		)	(0.6	)
Non deductible expenses and other	771			0.4		850			0.4		382			0.2
Change in tax rates - deferred taxes	20			—		(10		)	—		1,146			0.7
Tax at effective rate	$	53,224		23.0	%	$	43,812		22.0	%	$	58,096		33.9	%

Schedule of Deferred Tax Assets and Liabilities

The components of net deferred tax assets and liabilities at December 31, 2019 and 2018 are as follows (in thousands):



	December 31
	2019			2018
Deferred tax assets:
Accruals and reserves	$	3,035		$	2,642
Lease	1,026			—
Inventory	692			755
Stock-based compensation	2,892			1,918
Debt Extinguishment	134			531
Other	79			297
Total deferred tax assets	7,858			6,143
Deferred tax liabilities:
Discount on Convertible Notes	—			(307		)
Prepaids	(1,382		)	(2,370		)
Lease	(1,219		)	—
Tax depreciation in excess of book depreciation	(19		)	(183		)
Goodwill and other assets amortized for tax	(617		)	(493		)
Total deferred tax liabilities	(3,237		)	(3,353		)
Total net deferred tax assets (liabilities)	$	4,621		$	2,790

Equity (Tables)

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31, 2019, 2018, and 2017.



	For the Year Ended December 31,
	2019		2018		2017
Numerator (in thousands):
Net income	$	178,608	$	155,286	$	113,306
Denominator:
Basic weighted average shares outstanding	23,191,595		22,551,762		21,604,932
Effect of dilutive securities:
Convertible Notes - treasury stock method	1,966,639		2,030,023		1,975,648
Stock-based compensation units	272,607		310,489		352,542
Diluted weighted average shares outstanding	25,430,841		24,892,274		23,933,122

Basic earnings per share	$	7.70	$	6.89	$	5.24
Diluted earnings per share	$	7.02	$	6.24	$	4.73
Antidilutive non-vested restricted stock units excluded from calculation of diluted earnings per share	14,211		20,462		16,473

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Schedule of Restricted Stock Unit Activity

The following table summarizes the activity of our time-vested RSUs:



	Shares		Weighted Average Grant Date Fair Value
Balance at December 31, 2016	133,853		$	20.13
Granted	76,586		$	36.83
Vested	(25,803	)	$	18.45
Forfeited	(9,536	)	$	20.48
Balance at December 31, 2017	175,100		$	27.66
Granted	54,874		$	57.60
Vested	(51,694	)	$	20.79
Forfeited	(7,225	)	$	34.77
Balance at December 31, 2018	171,055		$	39.04
Granted	62,512		$	60.72
Vested	(55,230	)	$	26.47
Forfeited	(15,651	)	$	47.73
Balance at December 31, 2019	162,686		$	50.84

Schedule of Performance Based Stock Activity



Period Granted	Performance Period	Target PSUs Outstanding at December 31, 2018	Target PSUs Granted	Target PSUs Vested		Target PSUs Forfeited		Target PSUs Outstanding at December 31, 2019	Weighted Average Grant Date Fair Value
2016	2016 - 2018	83,656	—	(83,656	)	—		—	$	21.79
2017	2017 - 2019	108,247	—	—		(3,477	)	104,770	$	31.64
2018	2018 - 2020	61,898	—	—		(1,858	)	60,040	$	64.60
2019	2019 -2021	—	83,367	—		(2,125	)	81,242	$	56.49
Total		253,801	83,367	(83,656	)	(7,460	)	246,052

Fair Value Disclosure (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measures

The following table below shows the level and measurement of liabilities at December 31, 2019 and 2018 (in thousands):



		December 31, 2019				December 31, 2018
	Fair Value Hierarchy	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value⁽¹⁾
Convertible Notes⁽²⁾	Level 2	$	—	$	—	$	68,251	$	67,787
Senior Notes	Level 2	$	296,028	$	337,853	$	295,352	$	296,905


(1)	Excludes the fair value of the equity component of the Convertible Notes. See the “Convertible Notes” section within Note 7 for further details.

(2)

The Convertible Notes matured on November 15, 2019 and were repaid in full on such date.

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Summary of Lots Under Option or Contract

The following is a summary of our land purchase deposits included in pre-acquisition costs and deposits (in thousands, except for lot count):



	December 31,
	2019		2018
Land deposits and option payments	$	35,111	$	40,015
Commitments under the land purchase contracts if the purchases are consummated	$	539,122	$	776,224
Lots under land purchase contracts	16,205		22,820

Schedule of Future Minimum Operating Lease Payments

December 31, 2019 (in thousands):



Year Ending December 31,	Operating leases
2020	1,140
2021	1,095
2022	944
2023	819
2024	674
Thereafter	2,239
Total	6,911
Lease amount representing interest	(1,266		)
Present value of lease liabilities	$	5,645

Segment Information (Tables)

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

Financial information relating to our reportable segments was as follows (in thousands):



	For the Year Ended December 31,
	2019			2018			2017
Revenues:
Central	$	724,981		$	623,751		$	533,254
Southeast	347,817			271,073			183,422
Northwest	304,294			277,567			215,421
West	271,186			151,059			126,130
Florida	189,876			180,950			199,733
Total home sales revenues	$	1,838,154		$	1,504,400		$	1,257,960

Net income (loss) before income taxes:
Central	$	117,350		$	104,625		$	89,133
Southeast	30,316			29,078			19,959
Northwest	46,863			40,906			34,206
West	28,504			13,595			5,890
Florida	16,012			21,341			25,687
Corporate ⁽¹⁾	(7,213		)	(10,447		)	(3,473		)
Total net income (loss) before income taxes	$	231,832		$	199,098		$	171,402



	December 31,
Assets:	2019		2018
Central	$	637,083	$	569,409
Southeast	410,944		300,758
Northwest	221,132		200,443
West	193,545		161,514
Florida	149,877		106,398
Corporate ⁽¹⁾	53,534		56,951
Total assets	$	1,666,115	$	1,395,473

Selected Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information

Quarterly results are as follows (in thousands, except per share data):



	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
	2019		2019		2019		2019
Total home sales revenues	$	287,594	$	461,830	$	483,081	$	605,649
Gross margin	66,304		111,311		116,650		142,214
Income before income taxes	21,694		60,535		64,732		84,871
Net income	18,334		46,055		49,349		64,870
Basic earnings per share	0.81		2.01		2.15		2.69
Diluted earnings per share	0.73		1.82		1.93		2.52



	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
	2018		2018		2018		2018
Total home sales revenues	$	279,024	$	419,847	$	380,369	$	425,160
Gross margin	69,259		109,765		97,334		103,558
Income before income taxes	31,227		62,671		48,991		56,209
Net income	27,302		47,608		37,723		42,653
Basic earnings per share	1.23		2.11		1.66		1.89
Diluted earnings per share	1.10		1.90		1.52		1.72

Organization and Business Organization and Business (Details) $ in Thousands		12 Months Ended
	Aug. 02, 2018 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Combination, Number of Homes under Construction	200
Number of owned and controlled lots in a business combination	4,000
Business Combination, Consideration Transferred	$ 78,500
Payments to Acquire Businesses, Gross	74,500	$ 0	$ 74,463	$ 0
Stock Issued During Period, Value, Acquisitions	$ 4,000		$ 4,000

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 01, 2019
Summary of Accounting Policies [Line Items]
Right of use asset	$ 5,300,000			$ 5,400,000
Lease liability	5,645,000	$ 0		$ 5,400,000
Real estate inventory:
Impairment of real estate inventory	0	0	$ 0
Other Assets:
Prepaid insurance and prepaid expense	7,800,000	12,100,000
Property and equipment:
Impairments of property, equipment and leasehold improvements	0	0	0
Goodwill:
Goodwill	12,000,000.0
Goodwill impairment	0	0	0
Advertising costs:
Advertising and direct mail costs	$ 20,200,000	$ 17,600,000	$ 15,200,000
Minimum
Real estate inventory:
Life cycle of community	2 years
Property and equipment:
Estimated useful life of asset	2 years
Maximum
Real estate inventory:
Life cycle of community	5 years
Property and equipment:
Estimated useful life of asset	5 years
Customer deposits:
Typical customer deposits	$ 1,000

Business Acquisition (Details)	Aug. 02, 2018
Business Combinations [Abstract]
Number of homes under construction in a business combination	200
Number of owned and controlled lots in a business combination	4,000

Revenues (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
Revenues (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Home sales revenues	$ 605,649	$ 483,081	$ 461,830	$ 287,594	$ 425,160	$ 380,369	$ 419,847	$ 279,024	$ 1,838,154	$ 1,504,400	$ 1,257,960
Retail
Disaggregation of Revenue [Line Items]
Home sales revenues									1,714,277	1,394,475	1,217,191
Wholesale
Disaggregation of Revenue [Line Items]
Home sales revenues									123,877	109,925	40,769
Central
Disaggregation of Revenue [Line Items]
Home sales revenues									724,981	623,751	533,254
Southeast
Disaggregation of Revenue [Line Items]
Home sales revenues									347,817	271,073	183,422
Northwest
Disaggregation of Revenue [Line Items]
Home sales revenues									304,294	277,567	215,421
West
Disaggregation of Revenue [Line Items]
Home sales revenues									271,186	151,059	126,130
Florida
Disaggregation of Revenue [Line Items]
Home sales revenues									$ 189,876	$ 180,950	$ 199,733

Schedule of Real Estate Inventory (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Land, land under development, and finished lots	$ 912,651	$ 736,402
Information centers	26,959	21,179
Homes in progress	234,470	149,506
Completed homes	325,544	321,169
Total real estate inventory	$ 1,499,624	$ 1,228,256

Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Property and equipment	$ 5,724	$ 4,894
Less: Accumulated depreciation	(4,092)	(3,462)
Property and equipment, net	1,632	1,432
Depreciation	600	700	$ 800
Computer Equipment
Property, Plant and Equipment [Line Items]
Property and equipment	1,395	1,342
Machinery, equipment and vehicles
Property, Plant and Equipment [Line Items]
Property and equipment	$ 154	102
Estimated useful life of asset	5 years
Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Property and equipment	$ 3,758	3,183
Building
Property, Plant and Equipment [Line Items]
Property and equipment	$ 145	0
Estimated useful life of asset	30 years
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property and equipment	$ 272	$ 267
Estimated useful life of asset	5 years
Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life of asset	2 years
Minimum \| Computer Equipment
Property, Plant and Equipment [Line Items]
Estimated useful life of asset	2 years
Minimum \| Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Estimated useful life of asset	2 years
Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life of asset	5 years
Maximum \| Computer Equipment
Property, Plant and Equipment [Line Items]
Estimated useful life of asset	5 years
Maximum \| Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Estimated useful life of asset	5 years

Accrued Expenses and Other Liabilites (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Inventory related obligations	$ 7,808		$ 7,041
Operating Lease, Liability	5,645	$ 5,400	0
Taxes payable	28,679		10,773
Retentions and development payable	26,790		18,899
Accrued compensation, bonuses and benefits	16,748		13,913
Accrued interest	11,361		12,339
Warranty reserve	3,500		2,950	$ 2,450	$ 1,600
Other	17,337		10,640
Total accrued expenses and other liabilities	$ 117,868		$ 76,555
Inventory Related Obligation Term	30 years

Changes in Warranty Reserve (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Warranty reserves, beginning of period	$ 2,950	$ 2,450	$ 1,600
Warranty provision	5,286	4,438	4,999
Warranty expenditures	(4,736)	(3,938)	(4,149)
Warranty reserves, end of period	$ 3,500	$ 2,950	$ 2,450
Other Construction Components
Limited Warranty Period	1 year
Structural Elements
Limited Warranty Period	10 years

Notes Payable - Schedule of Notes Payable (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Notes payable	$ 690,559	$ 653,734
Debt issuance costs	7,241
Unamortized discount	1,758
Revolving Credit Facility
Debt Instrument [Line Items]
Notes payable	394,531	290,131
Debt issuance costs	5,027	3,669
Convertible Debt
Debt Instrument [Line Items]
Notes payable	0	68,251
Debt issuance costs	0	364
Unamortized discount	0	1,347
Senior Notes
Debt Instrument [Line Items]
Notes payable	296,028	295,352
Debt issuance costs	2,214	2,548
Unamortized discount	$ 1,758	$ 2,100

Notes Payable - Revolving Credit Agreement (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jun. 30, 2018
Debt Instrument [Line Items]
Assets	$ 1,666,115	$ 1,395,473
Loss on extinguishment of debt	(169)	(3,599)	$ 0
Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility, Maximum Borrowing Capacity before Accordion	550,000	450,000
Line of Credit Facility, Additional Borrowing Capacity	100,000
Line of credit facility, maximum borrowing capacity	$ 650,000			$ 750,000
Line of credit facility, expiration date	May 31, 2022
Line of credit facility, current borrowing capacity	$ 940,100
Line of credit, amount outstanding	699,600
Letters of credit outstanding	11,600
Line of credit facility, remaining borrowing capacity	$ 228,000
Loss on extinguishment of debt		$ 3,400
Senior Notes
Debt Instrument [Line Items]
Stated interest rate on senior note	6.875%
Minimum \| Guarantor Subsidiaries \| Revolving Credit Facility
Debt Instrument [Line Items]
Assets	$ 500
London Interbank Offered Rate (LIBOR) \| Revolving Credit Facility
Debt Instrument [Line Items]
Basis spread on variable rate	2.50%
Variable interest rate	1.75%
London Interbank Offered Rate (LIBOR) \| Minimum \| Revolving Credit Facility
Debt Instrument [Line Items]
Basis spread on variable rate	2.35%
London Interbank Offered Rate (LIBOR) \| Maximum \| Revolving Credit Facility
Debt Instrument [Line Items]
Basis spread on variable rate	2.75%

Notes Payable - Convertible Notes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
reductionofdebtdiscountandapic		$ 600
Loss on extinguishment of debt	$ 169	3,588	$ 0
Convertible Debt
Debt Instrument [Line Items]
Debt conversion, original debt amount	85,000
Repayments of Convertible Debt	$ 70,000	$ 15,000
Debt conversion, converted instrument, shares issued		486,679
Loss on extinguishment of debt		$ 200
Common Stock
Debt Instrument [Line Items]
Issuance of shares in settlement of Convertible Note (in shares)	2,381,751

Senior Notes (Details) - USD ($) $ in Thousands	12 Months Ended
Senior Notes (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Senior Notes, Gross	$ 699,558
Senior Notes
Debt Instrument [Line Items]
Senior Notes, Gross		$ 300,000
Stated interest rate on senior note	6.875%
Senior Notes maturity date	Jul. 15, 2026
Proceeds from issuance of debt		296,200
Initial debt discount		2,300
Debt offering commissions and offering costs		$ 1,500

Notes Payable - Annual Aggregate Maturities of Notes Payable (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Maturities of Long-term Debt [Abstract]
Long-term debt, maturities in next twelve months	$ 0
Long-term debt, maturities in year two	0
Long-term debt, maturities in year three	399,558
Long-term debt, maturities in year four	0
Long-term debt, maturities in year five	0
Long-term debt, maturities after year five	300,000
Total Notes Payable, Gross	699,558
Unamortized discount	(1,758)
Debt issuance costs	(7,241)
Notes payable	$ 690,559	$ 653,734

Notes Payable - Capitalized Interest (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
Interest incurred	$ 45,555	$ 38,216	$ 24,275
Less: Amounts capitalized	(45,555)	(38,216)	(24,275)
Interest expense	0	0	0
Cash paid for interest	42,438	23,376	19,704
Amortization of financing costs and discounts	$ 4,100	$ 4,600	$ 4,100

Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current:
Federal	$ 47,886	$ 39,053	$ 55,218
State	7,169	5,483	4,970
Current tax provision	55,055	44,536	60,188
Deferred:
Federal	(1,637)	(663)	(1,918)
State	(194)	(61)	(174)
Deferred tax provision (benefit)	(1,831)	(724)	(2,092)
Total income tax provision	53,224	43,812	58,096
Income taxes paid	$ 38,000	$ 83,300	$ 16,800

Income Taxes - Effective Income Tax Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Tax at federal statutory rate (1)	$ 48,685	$ 41,816	$ 60,008
State income taxes (net of federal benefit)	5,497	4,263	3,060
Domestic production activity deduction	0	0	(5,461)
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Payment Arrangement, Amount	$ (1,749)	$ (3,107)	$ (1,039)
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Payment Arrangement, Percent	0.80%	1.50%	0.60%
Non deductible expenses and other	$ 771	$ 850	$ 382
Change in tax rates - deferred taxes	20	(10)	1,146
Total income tax provision	$ 53,224	$ 43,812	$ 58,096
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Tax at federal statutory rate (1)	21.00%	21.00%	35.00%
State income taxes (net of federal benefit)	2.40%	2.10%	1.80%
Domestic production activity deduction	0.00%	0.00%	(3.20%)
Non deductible expenses and other	0.40%	0.40%	0.20%
Change in tax rates - deferred taxes	0.00%	0.00%	0.70%
Tax at effective rate	23.00%	22.00%	33.90%

Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Tax Cuts and Jobs Act, Change in Tax Rate, Deferred Tax Asset, Income Tax Expense	$ 1,100
Deferred tax assets:
Accruals and reserves		$ 3,035	$ 2,642
Operating Lease, Liability		1,026
Inventory		692	755
Stock-based compensation		2,892	1,918
Deferred Tax Assets, Debt Extinguishment		134	531
Deferred Tax Assets, Other		79	297
Total deferred tax assets		7,858	6,143
Deferred tax liabilities:
Discount on Convertible Notes		0	(307)
Prepaids		(1,382)	(2,370)
Operating Lease, Right-Of-Use Assets		(1,219)
Tax depreciation in excess of book depreciation		(19)	(183)
Goodwill and other assets amortized for tax		(617)	(493)
Total deferred tax liabilities		(3,237)	(3,353)
Total net deferred tax assets		$ 4,621	$ 2,790

Equity (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Class of Stock [Line Items]
Common stock, shares authorized	250,000,000	250,000,000
Common stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000
Preferred stock, par value per share	$ 0.01
Common stock, shares issued	26,398,409	23,746,385
Common stock, shares outstanding	25,359,409	22,707,385
Treasury stock, shares	1,039,000	1,039,000
Treasury stock acquired (in shares)		39,000
Stock Repurchase Program, Number of Shares Authorized to be Repurchased		50,000,000.0
Treasury Stock, Value, Acquired, Cost Method		$ 1.5
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased	48,500,000
Convertible Debt
Class of Stock [Line Items]
Repayments of Convertible Debt	$ 70.0	$ 15.0
Common Stock
Class of Stock [Line Items]
Issuance of shares in settlement of Convertible Note (in shares)	2,381,751
Issuance of shares (in shares)		486,679	354,620

Equity - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Net income	$ 64,870	$ 49,349	$ 46,055	$ 18,334	$ 42,653	$ 37,723	$ 47,608	$ 27,302	$ 178,608	$ 155,286	$ 113,306
Basic weighted average shares outstanding									23,191,595	22,551,762	21,604,932
Convertible Notes - treasury stock method									1,966,639	2,030,023	1,975,648
Stock-based compensation units									272,607	310,489	352,542
Diluted weighted average shares outstanding									25,430,841	24,892,274	23,933,122
Basic earnings per share (in dollars per share)	$ 2.69	$ 2.15	$ 2.01	$ 0.81	$ 1.89	$ 1.66	$ 2.11	$ 1.23	$ 7.70	$ 6.89	$ 5.24
Diluted earnings per share (in dollars per share)	2.52	$ 1.93	$ 1.82	$ 0.73	$ 1.72	$ 1.52	$ 1.90	$ 1.10	$ 7.02	$ 6.24	$ 4.73
Antidilutive non-vested restricted stock units excluded from calculation of diluted earnings per share									14,211	20,462	16,473
Convertible Debt
Convertible notes, conversion price	$ 21.52								$ 21.52

Summary of Non-Performance Based Restricted Stock Units (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Award, Fair Value [Abstract]
Shares reserved for future issuance	3,000,000
Restricted stock units (RSUs)
Share-based Compensation Arrangement by Award [Line Items]
Exercise price	$ 0.00
Share-based Compensation Arrangement by Award [Abstract]
Balance at Beginning of Period	171,055	175,100	133,853
Granted	62,512	54,874	76,586
Vested	(55,230)	(51,694)	(25,803)
Forfeited	(15,651)	(7,225)	(9,536)
Balance at End of Period	162,686	171,055	175,100
Share-based Compensation Arrangement by Award, Fair Value [Abstract]
Shares outstanding at the beginning of the period, weighted average grant date fair value	$ 39.04	$ 27.66	$ 20.13
Granted, weighted average grant date fair value	60.72	57.60	36.83
Vested, weighted average grant date fair value	26.47	20.79	18.45
Forfeited, weighted average grant date fair value	47.73	34.77	20.48
Shares outstanding at the end of the period, weighted average grant date fair value	$ 50.84	$ 39.04	$ 27.66
Share-based compensation expense	$ 2,200,000	$ 2,000,000.0	$ 1,300,000
Share-based compensation not yet recognized	$ 4,300,000
Share-based compensation not yet recognized, period for recognition	1 year 8 months 12 days
Restricted stock units (RSUs) \| Minimum
Share-based Compensation Arrangement by Award, Fair Value [Abstract]
Performance vesting period	1 year
Restricted stock units (RSUs) \| Maximum
Share-based Compensation Arrangement by Award, Fair Value [Abstract]
Performance vesting period	3 years
Senior Management and Other Officers \| Restricted stock units (RSUs)
Share-based Compensation Arrangement by Award [Abstract]
Granted	20,847	15,867	27,764
Management \| Restricted stock units (RSUs)
Share-based Compensation Arrangement by Award [Abstract]
Granted	16,159	11,780	18,366
Certain Employees And Executives \| Restricted stock units (RSUs)
Share-based Compensation Arrangement by Award [Abstract]
Granted	25,506	27,227	30,456

Summary of Performance Based Restricted Stock Units (Details) - Performance Based Shares - USD ($)		12 Months Ended
	Mar. 15, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Award [Line Items]
Exercise price		$ 0.00
Performance vesting period		3 years
Balance at Beginning of Period		253,801
Granted		83,367
Vested		(83,656)
Forfeited		(7,460)
Balance at End of Period		246,052	253,801
Share-based compensation expense		$ 4,800,000	$ 4,000,000.0	$ 2,900,000
Share-based compensation not yet recognized		$ 5,700,000
Share-based compensation not yet recognized, period for recognition		1 year 9 months 18 days
2016 Grant
Share-based Compensation Arrangement by Award [Line Items]
Percentage of total units vested	200.00%
Balance at Beginning of Period		83,656
Vested		(83,656)
Balance at End of Period		0	83,656
Weighted average grant date fair value		$ 21.79
2017 Grant
Share-based Compensation Arrangement by Award [Line Items]
Percentage of total units vested		199.00%
Balance at Beginning of Period		108,247
Forfeited		(3,477)
Balance at End of Period		104,770	108,247
Weighted average grant date fair value		$ 31.64
2018 Grant
Share-based Compensation Arrangement by Award [Line Items]
Percentage of total units vested		128.00%
Balance at Beginning of Period		61,898
Forfeited		(1,858)
Balance at End of Period		60,040	61,898
Weighted average grant date fair value		$ 64.60
2019 Grant
Share-based Compensation Arrangement by Award [Line Items]
Percentage of total units vested		106.00%
Balance at Beginning of Period		0
Granted		83,367
Forfeited		(2,125)
Balance at End of Period		81,242	0
Weighted average grant date fair value		$ 56.49
Minimum
Share-based Compensation Arrangement by Award [Line Items]
Percentage of total units vested		0.00%
Maximum
Share-based Compensation Arrangement by Award [Line Items]
Percentage of total units vested		200.00%

Employee's Stock Purchase Plan (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Employee Stock Purchase Plan (ESPP) Disclosures [Line Items]
Proceeds from issuance of common stock under ESPP	$ 2,886	$ 2,690	$ 17,130
Common stock, shares authorized	250,000,000	250,000,000
EmployeeStockPurchasePlan
Employee Stock Purchase Plan (ESPP) Disclosures [Line Items]
ESPP discount on shares of common stock	15.00%
Issuance of shares (in shares)	47,731	49,744	33,887
Proceeds from issuance of common stock under ESPP	$ 2,900	$ 2,700	$ 1,600
Share-based compensation expense	$ 500	$ 400	$ 200
Common stock, shares authorized	500,000
Remaining shares available for issuance	349,240

Fair Value Disclosure (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes payable, carrying value	$ 690,559	$ 653,734
Convertible Debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes payable, carrying value	0	68,251
Convertible notes, fair value	0	67,787
Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes payable, carrying value	296,028	295,352
Senior notes, fair value	$ 337,853	$ 296,905

Related Party Transactions - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2019 USD ($) lot	Dec. 31, 2018 USD ($) lot	Dec. 31, 2017 USD ($)
Related Party Transaction [Line Items]
Total lots under option contract to purchase \| lot	16,205	22,820
Revenue from home sales to related parties			$ 700,000
FLORIDA \| Affiliated Entity
Related Party Transaction [Line Items]
Total lots under option contract to purchase \| lot	198
Total purchase price for lots under option contract	$ 6,900,000
Non-refundable deposit related to option contract	$ 500,000
lgih_PurchasedLotsPreviouslyUnderPurchaseOptions \| lot	58
lgih_LandunderPurchaseOptionsPurchasePrice	$ 2,100,000
FLORIDA \| Minimum \| Affiliated Entity
Related Party Transaction [Line Items]
Annual price escalation rate	3.00%
FLORIDA \| Maximum \| Affiliated Entity
Related Party Transaction [Line Items]
Annual price escalation rate	6.00%
TEXAS \| Affiliated Entity
Related Party Transaction [Line Items]
Total lots under option contract to purchase \| lot		106
Total purchase price for lots under option contract		$ 8,000,000.0
Annual price escalation rate		5.00%
Non-refundable deposit related to option contract		$ 100,000
Interval lots under purchase option to take down \| lot		21
Purchased lots under purchase option \| lot		22
Purchase price for lots under option contract		$ 1,800,000

Retirement Benefits (Details) - USD ($) $ in Millions	12 Months Ended
Retirement Benefits (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Retirement Benefits [Abstract]
Minimum service period for employees to be covered under profit sharing plan	90 days
Employees eligibility age for participating in profit sharing plan	21 years
Maximum percentage of employees' gross pay eligible	100.00%
Maximum employer annual contribution percentage per employee	100.00%
Maximum employer matching contribution percentage of eligible employee contribution	4.00%
Employer contribution amount	$ 2.9	$ 2.6	$ 1.8

Commitments and Contingencies - Land Deposits (Detail) $ in Thousands	Dec. 31, 2019 USD ($) lot	Dec. 31, 2018 USD ($) lot
Commitments and Contingencies Disclosure [Abstract]
Land deposits and option payments	$ 35,111	$ 40,015
Commitments under the land purchase contracts if the purchases are consummated	$ 539,122	$ 776,224
Lots under land purchase contracts \| lot	16,205	22,820
Refundable land deposits of purchase contracts of finished lots	$ 26,300	$ 25,200

Commitments and Contingencies - Future Minimum Rental Payments for Operating Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 01, 2019
Commitments and Contingencies Disclosure [Abstract]
Operating Lease, Right-of-Use Asset	$ 5,300			$ 5,400
Operating Lease, Payments	$ 1,300
Operating Lease, Weighted Average Discount Rate, Percent	5.46%
Operating Lease, Weighted Average Remaining Lease Term	7 years 2 months 12 days
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months	$ 1,140
Lessee, Operating Lease, Liability, Payments, Due Year Two	1,095
Lessee, Operating Lease, Liability, Payments, Due Year Three	944
Lessee, Operating Lease, Liability, Payments, Due Year Four	819
Lessee, Operating Lease, Liability, Payments, Due Year Five	674
Thereafter	2,239
Total	6,911
Lessee, Operating Lease, Liability, Undiscounted Excess Amount	(1,266)
Operating Lease, Liability	5,645	$ 0		$ 5,400
Rent expense	$ 1,300	$ 1,000	$ 1,000

Commitment and Contingencies - Bonding and Letters of Credit (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Other Commitments [Line Items]
Letters of credit, performance and surety bonds, and other financial guarantees	$ 108.7	$ 77.5
Contributions to limited partnership	1.1
Revolving Credit Facility
Other Commitments [Line Items]
Letters of credit outstanding	11.6
Variable Interest Entity, Not Primary Beneficiary [Member]
Other Commitments [Line Items]
Limited partnership, maximum commitment	$ 30.0
Limited partnership, term	8 years
Limited partnership, renewal term	2 years

Segment Information (Details) $ in Thousands	3 Months Ended								12 Months Ended
Segment Information (Details) $ in Thousands	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2019 USD ($) Segment	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments \| Segment									7
Number of reporting segments \| Segment									5
Pre-acquisition costs and deposits	$ 37,244				$ 45,752				$ 37,244	$ 45,752
Home sales revenues	605,649	$ 483,081	$ 461,830	$ 287,594	425,160	$ 380,369	$ 419,847	$ 279,024	1,838,154	1,504,400	$ 1,257,960
Income before income taxes	84,871	$ 64,732	$ 60,535	$ 21,694	56,209	$ 48,991	$ 62,671	$ 31,227	231,832	199,098	$ 171,402
Assets	1,666,115				1,395,473				$ 1,666,115	$ 1,395,473
Central
Segment Reporting Information [Line Items]
Percentage of operations									39.40%	41.50%	42.40%
Home sales revenues									$ 724,981	$ 623,751	$ 533,254
Income before income taxes									117,350	104,625	89,133
Assets	637,083				569,409				637,083	569,409
Southeast
Segment Reporting Information [Line Items]
Home sales revenues									347,817	271,073	183,422
Income before income taxes									30,316	29,078	19,959
Assets	410,944				300,758				410,944	300,758
Northwest
Segment Reporting Information [Line Items]
Home sales revenues									304,294	277,567	215,421
Income before income taxes									46,863	40,906	34,206
Assets	221,132				200,443				221,132	200,443
West
Segment Reporting Information [Line Items]
Home sales revenues									271,186	151,059	126,130
Income before income taxes									28,504	13,595	5,890
Assets	193,545				161,514				193,545	161,514
Florida
Segment Reporting Information [Line Items]
Home sales revenues									189,876	180,950	199,733
Income before income taxes									16,012	21,341	25,687
Assets	149,877				106,398				149,877	106,398
Corporate
Segment Reporting Information [Line Items]
Income before income taxes									(7,213)	(10,447)	$ (3,473)
Assets	$ 53,534				$ 56,951				$ 53,534	$ 56,951

Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
Home sales revenues	$ 605,649	$ 483,081	$ 461,830	$ 287,594	$ 425,160	$ 380,369	$ 419,847	$ 279,024	$ 1,838,154	$ 1,504,400	$ 1,257,960
Gross margin	142,214	116,650	111,311	66,304	103,558	97,334	109,765	69,259
Income before income taxes	84,871	64,732	60,535	21,694	56,209	48,991	62,671	31,227	231,832	199,098	171,402
Net income	$ 64,870	$ 49,349	$ 46,055	$ 18,334	$ 42,653	$ 37,723	$ 47,608	$ 27,302	$ 178,608	$ 155,286	$ 113,306
Basic earnings per share (in dollars per share)	$ 2.69	$ 2.15	$ 2.01	$ 0.81	$ 1.89	$ 1.66	$ 2.11	$ 1.23	$ 7.70	$ 6.89	$ 5.24
Diluted earnings per share (in dollars per share)	$ 2.52	$ 1.93	$ 1.82	$ 0.73	$ 1.72	$ 1.52	$ 1.90	$ 1.10	$ 7.02	$ 6.24	$ 4.73

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details