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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2018	Nov. 02, 2018
Entity Information [Line Items]
Entity Registrant Name	LGI Homes, Inc.
Entity Central Index Key	0001580670
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding		22,717,096

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
ASSETS
Cash and cash equivalents	$ 37,969	$ 67,571
Accounts receivable	31,379	44,706
Real estate inventory	1,187,994	918,933
Pre-acquisition costs and deposits	40,055	18,866
Property and equipment, net	1,520	1,674
Other assets	11,033	14,196
Deferred tax assets, net	3,858	1,928
Goodwill and intangible assets, net	19,979	12,018
Total assets	1,333,787	1,079,892
LIABILITIES AND EQUITY
Accounts payable	17,891	12,020
Accrued expenses and other liabilities	75,782	102,831
Notes payable	627,695	475,195
Total liabilities	721,368	590,046
COMMITMENTS AND CONTINGENCIES
EQUITY
Common stock, par value $0.01, 250,000,000 shares authorized, 23,717,153 shares issued and 22,717,153 shares outstanding as of September 30, 2018 and 22,845,580 shares issued and 21,845,580 shares outstanding as of December 31, 2017	237	228
Additional paid-in capital	239,611	229,680
Retained earnings	389,121	276,488
Treasury stock, at cost, 1,000,000 shares	(16,550)	(16,550)
Total equity	612,419	489,846
Total liabilities and equity	$ 1,333,787	$ 1,079,892

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	23,717,153	22,845,580
Common stock, shares outstanding	22,717,153	21,845,580
Treasury stock, shares	1,000,000	1,000,000

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
Home sales revenues	$ 380,369	$ 365,896	$ 1,079,240	$ 852,985
Cost of sales	283,035	274,000	802,882	631,242
Selling expenses	27,890	26,018	80,140	66,318
General and administrative	17,794	15,431	51,536	40,376
Operating income	51,650	50,447	144,682	115,049
Loss on extinguishment of debt	3,058	0	3,599	0
Other income, net	(399)	(430)	(1,806)	(1,312)
Net income before income taxes	48,991	50,877	142,889	116,361
Income tax provision	11,268	17,190	30,256	38,695
Net income	$ 37,723	$ 33,687	$ 112,633	$ 77,666
Earnings per share:
Basic (in dollars per share)	$ 1.66	$ 1.55	$ 5.07	$ 3.60
Diluted (in dollars per share)	$ 1.52	$ 1.40	$ 4.57	$ 3.32
Weighted average shares outstanding:
Basic (in shares)	22,658,457	21,668,585	22,236,018	21,544,747
Diluted (in shares)	24,896,569	24,050,385	24,642,882	23,413,467

CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - 9 months ended Sep. 30, 2018 - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Treasury Stock
Beginning Balance (in shares) at Dec. 31, 2017		22,845,580
Beginning Balance at Dec. 31, 2017	$ 489,846	$ 228	$ 229,680	$ 276,488	$ (16,550)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	112,633			112,633
Issuance of shares in settlement of Convertible Notes (in shares)		486,679
Issuance of shares in settlement of Convertible Notes	(470)	$ 5	(475)
Issuance of shares, Wynn Homes Acquisition (in shares)		70,746
Issuance of shares, Wynn Homes Acquisition	4,000	$ 1	3,999
Issuance of restricted stock units in settlement of accrued bonuses	181		181
Compensation expense for equity awards	4,172		4,172
Stock issued under employee incentive plans (in shares)		314,148
Stock issued under employee incentive plans	2,057	$ 3	2,054
Ending Balance (in shares) at Sep. 30, 2018		23,717,153
Ending Balance at Sep. 30, 2018	$ 612,419	$ 237	$ 239,611	$ 389,121	$ (16,550)

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net income	$ 112,633	$ 77,666
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	543	600
Loss on extinguishment of debt	3,588	0
Loss on disposal of assets	6	0
Compensation expense for equity awards	4,172	2,677
Deferred income taxes	(1,784)	(2,353)
Changes in assets and liabilities:
Accounts receivable	13,327	(15,661)
Real estate inventory	(194,387)	(183,666)
Pre-acquisition costs and deposits	(19,938)	(3,508)
Other assets	3,347	(3,858)
Accounts payable	5,871	13,794
Accrued expenses and other liabilities	(29,394)	42,136
Net cash used in operating activities	(102,016)	(72,173)
Cash flows from investing activities:
Purchases of property and equipment	(395)	(502)
Payment for business acquisition	(73,829)	0
Net cash used in investing activities	(74,224)	(502)
Cash flows from financing activities:
Proceeds from notes payable	537,717	80,000
Payments on notes payable	(386,238)	(15,000)
Loan issuance costs	(6,690)	(4,375)
Proceeds from sale of stock, net of offering expenses	2,057	11,049
Payment for offering costs	(76)	(69)
Payment for earnout obligation	(132)	(480)
Net cash provided by financing activities	146,638	71,125
Net decrease in cash and cash equivalents	(29,602)	(1,550)
Cash and cash equivalents, beginning of period	67,571	49,518
Cash and cash equivalents, end of period	$ 37,969	$ 47,968

Organization and Basis of Presentation	9 Months Ended
Organization and Basis of Presentation	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Basis of Presentation Disclosures	ORGANIZATION AND BASIS OF PRESENTATION Organization and Description of the Business LGI Homes, Inc., a Delaware corporation (the “Company”, “us,” “we,” or “our”), is engaged in the development of communities and the design, construction and sale of new homes in Texas, Arizona, Florida, Georgia, New Mexico, Colorado, North Carolina, South Carolina, Washington, Tennessee, Minnesota, Oklahoma, Alabama, California, Oregon and Nevada. Basis of Presentation The unaudited consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These financial statements should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017. The accompanying unaudited consolidated financial statements include all adjustments that are of a normal recurring nature and necessary for the fair presentation of our results for the interim periods presented. Results for interim periods are not necessarily indicative of results to be expected for the full year. The accompanying unaudited financial statements as of September 30, 2018, and for the three and nine months ended September 30, 2018 and 2017, 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. Recently Adopted Accounting Standards Effective January 1, 2018, we adopted the Financial Accounting Standards Board (the “FASB”) Accounting Standards Update (“ASU”) No. 2016-15, “Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”), which addresses specific classification issues and is intended to reduce diversity in current practice regarding the manner in which certain cash receipts and cash payments are presented and classified in the consolidated statements of cash flows. The adoption of ASU 2016-15 did not have a material effect on our consolidated statements of cash flows or disclosures. Effective January 1, 2018, we adopted the FASB ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“Topic 606”), which provides guidance for revenue recognition. Topic 606 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets and supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition” (“Topic 605”) and most industry-specific guidance. Topic 606 also supersedes certain cost guidance included in Subtopic 605-35, “Revenue Recognition—Construction-Type and Production-Type Contracts.” Topic 606’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. We adopted Topic 606 using the modified retrospective transition method only with respect to contracts not completed at the date of adoption. We have developed the additional expanded disclosures required; however, the adoption of Topic 606 did not have a material effect on our consolidated statements of operations, balance sheets or cash flows. See Note 3 for further details. Effective January 1 2018, we adopted the FASB ASU No. 2017-01, “Business Combinations - Clarifying the Definition of a Business” (“ASU 2017-01”). ASU 2017-01 provides additional guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The adoption of ASU 2017-01 was applied prospectively and had no effect on our consolidated financial statements. Recently Issued Accounting Pronouncements 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 are currently evaluating the impact that adoption of this guidance will have on our financial statement disclosures. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets. Under ASU 2016-02, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than twelve months. Lessor accounting remains substantially similar to current GAAP. In addition, disclosures of leasing activities will be expanded to include qualitative and specific quantitative information. ASU 2016-02 will be effective for annual reporting periods beginning after December 15, 2018, and early adoption is permitted. ASU 2016-02 requires a modified retrospective transition approach. As part of our assessment work-to-date, we have formed an implementation work team and identified non-cancelable operating leases primarily associated with office facilities, real estate and office equipment. We believe the recognition of new right-of-use assets and lease liabilities will be the most significant change for us under ASU 2016-02. We are in the process of identifying and implementing appropriate changes to our business processes, systems and controls to support the adoption and disclosures required under ASU 2016-02.

Business Acquisition

9 Months Ended

Sep. 30, 2018

Business Combinations [Abstract]

Business Combination Disclosure

ACQUISITION

On August 2, 2018, we acquired certain homebuilding assets owned by Crosswind Properties, LLC, Wynn Construction, Inc., Crosswind Development, Inc., Crosswind Investments, Inc., First Continental Communities, Inc. and William Wynn (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 $77.8 million, consisting of approximately $73.8 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”). The preliminary allocation of the purchase price to the tangible and intangible assets acquired and liabilities assumed may change for a period of up to one year from the date of the acquisition. Our purchase accounting for Wynn Homes as of September 30, 2018 was incomplete and we expect to complete the working capital adjustment and valuation of the tangible assets, intangible assets and liabilities assumed as of the acquisition date within one year from the acquisition date. Accordingly, we may adjust the amounts recorded as of September 30, 2018 to reflect the final valuations of assets acquired or liabilities assumed. At September 30, 2018, the acquired assets and assumed liabilities have been recorded at their estimated fair values at the acquisition date as noted below (amounts in thousands):



Purchase Consideration:	Total
Cash paid for net assets	$	73,829
Common Stock	4,000
Total consideration	77,829
Assets acquired and liabilities assumed:
Real estate inventory	74,359
Pre-acquisition costs, deposits and other assets	1,360
Intangible assets	7,961
Total assets	83,680
Accounts payable and accrued liabilities	(5,851		)
Total liabilities	(5,851		)

Net assets acquired	$	77,829

Pre-acquisition costs, deposits and other assets, accounts payable and accrued liabilities, and customer deposits are stated at historical carrying values given the short-term nature of these assets and liabilities. Real estate inventory was adjusted to reflect fair value. Intangible assets acquired in connection with the Wynn Homes acquisition consist of contracts to purchase controlled properties previously controlled by Wynn Homes that are at varying stages of completion from third-party sellers, and are amortized as homes are sold on these properties.

The Company determined the estimated fair values of the real estate inventory with the assistance of appraisals performed by independent third-party specialists and estimates by management.

Significant assumptions included in our estimates of the fair value of the assets acquired include future development costs and the timing of the completion of development activities, absorption rates, and mix of products sold in each community. Based on the estimated purchase consideration, management believes that the purchase price for the Wynn Homes acquisition was at market value and there was no excess of purchase price over the net fair value of assets acquired and liabilities assumed.

The Company has expensed approximately $0.8 million of acquisition related costs for legal and due diligence services; these costs are included in the general and administrative expenses in the accompanying consolidated statements of operations.

Revenue

9 Months Ended

Sep. 30, 2018

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer

REVENUES

Adoption of Topic 606, “Revenue from Contracts with Customers”

On January 1, 2018, we adopted Topic 606 using the modified retrospective method. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. We did not record any adjustments or net reductions to opening retained earnings as of January 1, 2018 in relation to the adoption of Topic 606.

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. Proceeds from home sales are generally received from the title company within a few business days after closing. Home sales discounts and incentives granted to customers, which are related to the customers’ closing costs that we pay on the customer’s 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):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Retail home sales revenues	$	353,594	$	347,626	$	1,017,952	$	819,309
Other	26,775		18,270		61,288		33,676
Total home sales revenues	$	380,369	$	365,896	$	1,079,240	$	852,985

The following table presents our home sales revenues disaggregated by geography, based on our determined operating segments in Note 14 (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Central	$	150,045	$	165,870	$	438,811	$	370,550
Southwest	65,742		66,002		193,055		162,386
Southeast	73,507		54,331		178,984		133,665
Florida	38,750		56,171		136,211		129,345
Northwest	50,697		23,522		129,852		57,039
Midwest	1,628		—		2,327		—
Total home sales revenues	$	380,369	$	365,896	$	1,079,240	$	852,985

Home Sales Revenues

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

9 Months Ended

Sep. 30, 2018

Inventory Disclosure [Abstract]

Real Estate Inventory Disclosures

REAL ESTATE INVENTORY

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



	September 30,		December 31,
	2018		2017
Land, land under development and finished lots	$	647,580	$	494,552
Information centers	21,796		18,327
Homes in progress	242,286		191,659
Completed homes	276,332		214,395
Total real estate inventory	$	1,187,994	$	918,933

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 transferred 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.

Interest and financing costs incurred under our debt obligations, as more fully discussed in Note 6, are capitalized to qualifying real estate projects under development and homes under construction.

Accrued Expenses and Other Liabilities

9 Months Ended

Sep. 30, 2018

Payables and Accruals [Abstract]

Accrued Expenses and Other Liabilities Disclosures

ACCRUED EXPENSES AND OTHER LIABILITIES

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



	September 30,		December 31,
	2018		2017
Inventory related obligations	$	9,714	$	12,906
Taxes payable	4,107		48,733
Retentions and development payable	23,544		12,025
Accrued compensation, bonuses and benefits	12,811		14,462
Accrued interest	7,607		2,096
Warranty reserve	2,850		2,450
Other	15,149		10,159
Total accrued expenses and other liabilities	$	75,782	$	102,831

Inventory Related Obligations

We own lots in certain communities in Arizona, California, Florida and Texas that have Community Development Districts 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.

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):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Warranty reserves, beginning of period	$	2,800		$	1,850		$	2,450		$	1,600
Warranty provision	1,240			1,990			2,923			3,189
Warranty expenditures	(1,190		)	(1,840		)	(2,523		)	(2,789		)
Warranty reserves, end of period	$	2,850		$	2,000		$	2,850		$	2,000

Notes Payable

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

Notes Payable Disclosures

NOTES PAYABLE

Revolving Credit Agreement

On May 25, 2018, we entered into that certain Third Amended and Restated Credit Agreement with several financial institutions, and Wells Fargo Bank, National Association, as administrative agent, which was amended as of June 19, 2018 by that certain First Amendment thereto (the “First Amendment”; such credit agreement, as amended by the First Amendment, the “Credit Agreement”). The Credit Agreement has substantially similar terms and provisions to our second amended and restated credit agreement entered into in May 2017 with several financial institutions, and Wells Fargo Bank, National Association, as administrative agent (the “2017 Credit Agreement”) but, among other things, provided for, as of September 30, 2018, a revolving credit facility of $450.0 million, which could be increased at our request by up to $50.0 million if the lenders make additional commitments, subject to the terms and conditions of the Credit Agreement (which was requested and approved in October 2018); see Note 15 for further details.

The Credit Agreement matures on May 31, 2021. 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. The revolving credit facility is currently unsecured, but we have agreed to provide collateral if we fail to meet certain financial conditions in the future. As of September 30, 2018, the borrowing base under the Credit Agreement was $743.9 million, of which borrowings, including the Convertible Notes (as defined below) and the Senior Notes (as defined below), of $638.8 million were outstanding, $5.3 million of letters of credit were outstanding and $99.8 million was available to borrow under the Credit Agreement.

Interest is paid monthly on borrowings under the Credit Agreement at LIBOR plus 2.90%. The Credit Agreement applicable margin for LIBOR loans ranges from 2.65% to 3.25% based on our leverage ratio. At September 30, 2018, LIBOR was 2.18%.

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 September 30, 2018, we were in compliance with all of the covenants contained in the Credit Agreement.

In connection with the issuance of our 6.875% Senior Notes due 2026 (the “Senior Notes”) in July 2018, we reduced the revolving commitment under the Credit Agreement from $750.0 million to $450.0 million pursuant to the First Amendment. During the three months ended September 30, 2018, we recognized on our consolidated statements of operations $3.1 million in debt extinguishment costs related to the Credit Agreement.

Convertible Notes

We issued $85.0 million aggregate principal amount of our 4.25% Convertible Notes due 2019 (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”). The Convertible Notes mature on November 15, 2019. Interest on the Convertible Notes is payable semi-annually in arrears on May 15 and November 15 of each year at a rate of 4.25%. When the Convertible Notes were issued, the fair value of $76.5 million was recorded to notes payable. $5.5 million of the remaining proceeds was recorded to additional paid in capital to reflect the equity component and the remaining $3.0 million was recorded as a deferred tax liability. The carrying amount of the Convertible Notes is being accreted to face value over the term to maturity.

Prior to May 15, 2019, the Convertible Notes are convertible only upon satisfaction of any of the specified conversion events. On or after May 15, 2019, the holders of the Convertible Notes can convert their Convertible Notes at any time at their option. Upon the election of a holder of Convertible Notes to convert their Convertible Notes, we may settle the conversion of the Convertible Notes using any combination of cash and shares of our common stock. It is our intent, and belief that we have the ability, to settle in cash the conversion of any Convertible Notes that the holders elect to convert. The initial conversion rate of the Convertible Notes is 46.4792 shares of our common stock for each $1,000 principal amount of Convertible Notes, which represents an initial conversion price of approximately $21.52 per share of our common stock. The conversion rate is subject to adjustments upon the occurrence of certain specified events.

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. As of September 30, 2018, we have $70.0 million aggregate principal amount of Convertible Notes outstanding.

During the third quarter of 2018, the Convertible Notes were convertible because the closing sale price of our common stock was greater than 130% of the $21.52 conversion price on at least 20 trading days during the 30 trading day period ending on June 30, 2018. As a result, the holders of the Convertible Notes could elect to convert some or all of their Convertible Notes in accordance with the terms and provisions of the indenture governing the Convertible Notes during the conversion period of July 1, 2018 through September 30, 2018 (inclusive). The Convertible Notes continue to be convertible during the fourth quarter of 2018. As of the date of the filing of this Quarterly Report on Form 10-Q, no other conversion notices have been received by us.

On July 6, 2018, concurrently with the offering of the Senior Notes, we entered into that certain First Supplemental Indenture, dated as of July 6, 2018, among us, our subsidiaries that guarantee our obligations under our revolving credit facility (the “Subsidiary Guarantors”) and Wilmington Trust, National Association, as trustee, which supplements the indenture governing the Convertible Notes, pursuant to which (i) the subordination provisions in the indenture governing the Convertible Notes were eliminated, (ii) each Subsidiary Guarantor agreed (A) to, concurrently with the issuance of the Senior Notes, fully and unconditionally guarantee the Convertible Notes to the same extent that such Subsidiary Guarantor is guaranteeing the Senior Notes and (B) that such Subsidiary Guarantor’s guarantee of the Convertible Notes ranks equally with such Subsidiary Guarantor’s guarantee of the Senior Notes and (iii) the Company agreed to not, directly or indirectly, incur any indebtedness in the form of, or otherwise become liable in respect of, any notes or other debt securities issued pursuant to an indenture or note purchase agreement (including the Senior Notes) unless such indebtedness is equal with or contractually subordinated to the Convertible Notes in right of payment.

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, the Subsidiary Guarantors 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 Credit Agreement.

Notes payable consist of the following (in thousands):



	September 30, 2018		December 31, 2017
Notes payable under the Credit Agreement ($450.0 million revolving credit facility at September 30, 2018) maturing on May 31, 2021; interest paid monthly at LIBOR plus 2.90%; net of debt issuance costs of approximately $4.1 million and $5.3 million at September 30, 2018 and December 31, 2017, respectively	$	264,747	$	394,714
4.25% Convertible Notes due November 15, 2019; interest paid semi-annually at 4.25%; net of debt issuance costs of approximately $0.5 million and $1.0 million at September 30, 2018 and December 31, 2017, respectively; and approximately $1.7 million and $3.5 million in unamortized discount at September 30, 2018 and December 31, 2017, respectively	67,759		80,481
Senior Notes due July 15, 2026; interest paid semi-annually at 6.875%; net of debt issuance costs of approximately $2.6 million at September 30, 2018 and approximately $2.2 million in unamortized discount at September 30, 2018	295,189		—
Total notes payable	$	627,695	$	475,195

Capitalized Interest

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



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Interest incurred	$	10,823		$	6,526		$	26,803		$	17,628
Less: Amounts capitalized	(10,823		)	(6,526		)	(26,803		)	(17,628		)
Interest expense	$	—		$	—		$	—		$	—

Cash paid for interest	$	4,517		$	4,361		$	17,786		$	13,272

Included in interest incurred was amortization of deferred financing costs for notes payable and amortization of Convertible Notes and Senior Notes discounts of $1.3 million and $1.0 million for the three months ended September 30, 2018 and 2017, respectively, and $3.5 million and $3.0 million for the nine months ended September 30, 2018 and 2017, respectively.

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income Tax Disclosures	INCOME TAXES We file U.S. federal and state income tax returns. As of September 30, 2018, we have no unrecognized tax benefits. We are no longer subject to exam for years before 2014 (2013 for Texas). For the nine months ended September 30, 2018, our effective tax rate of 21.2% is higher than the Federal statutory rate primarily as a result of the deductions in excess of compensation cost (“windfalls”) for share-based payments, offset by an increase in rate for state income taxes, net of the federal benefit payments. The Securities and Exchange Commission (the “SEC”) staff issued Staff Accounting Bulletin 118, which provides guidance on accounting for the tax effects of the U.S. federal income tax legislation signed into law on December 22, 2017, commonly known as the “Tax Cuts and Jobs Act of 2017” (the “Tax Act”), for which the accounting under ASC 740 is incomplete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but the company is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before enactment of the Tax Act. As of September 30, 2018, we have completed the majority of our accounting for the tax effects of the Tax Act. However, as there is some uncertainty around the grandfathering provisions and their applicability to our performance-based executive compensation, we have estimated a provisional amount for deferred tax assets related to performance-based executive compensation. In addition, we also re-measured the applicable deferred tax assets and liabilities based on the rates at which they are expected to reverse. However, we are still analyzing certain aspects of the Tax Act and refining our calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. In June 2018, the Internal Revenue Service (“IRS”) commenced an examination of the Company’s U.S. income tax return for 2016 that is anticipated to be completed in early 2019. As of September 30, 2018, the IRS has not proposed any adjustments to our tax positions. During the three months ended September 30, 2018, we received notice from the State of Texas that an examination of the Company’s Texas Franchise tax report for 2015 will be conducted. As of September 30, 2018, the examination has not commenced. Income taxes paid were $12.8 million and $2.0 million for the three months ended September 30, 2018 and 2017, respectively. Income taxes paid were $76.5 million and $16.7 million for the nine months ended September 30, 2018 and 2017, respectively.

Equity	9 Months Ended
Equity	Sep. 30, 2018
Equity [Abstract]
Equity Disclosures	EQUITY Convertible Notes 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 $0.5 million reduction to additional paid in capital, net of tax and a cash payment of $15.0 million for the principal amount of such Convertible Notes. As of the date of the filing of this Quarterly Report on Form 10-Q, no other conversion notices have been received by us. See the “Convertible Notes” section within Note 6 for further details on this debt obligation. Shelf Registration Statement and ATM Offering Program On August 24, 2018, we and certain of our subsidiaries filed an automatic shelf registration statement on Form S-3 (Registration No. 333-227012), 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. In November 2017, we concluded our $25.0 million at-the-market common stock offering program (the “2016 ATM Program”) under our prior shelf registration statement. During the three and nine months ended September 30, 2017, we issued and sold 112,798 and 267,788 shares of our common stock, respectively, under the 2016 ATM Program and received net proceeds of approximately $5.1 million and $10.0 million, respectively.

Earnings Per Share

9 Months Ended

Sep. 30, 2018

Earnings Per Share [Abstract]

Earnings Per Share Disclosures

EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2018 and 2017:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Numerator (in thousands):
Numerator for basic and dilutive earnings per share	$	37,723	$	33,687	$	112,633	$	77,666
Denominator:
Basic weighted average shares outstanding	22,658,457		21,668,585		22,236,018		21,544,747
Effect of dilutive securities:
Convertible Notes - treasury stock method	1,978,770		2,037,665		2,128,854		1,601,450
Stock-based compensation units	259,342		344,135		278,010		267,270
Diluted weighted average shares outstanding	24,896,569		24,050,385		24,642,882		23,413,467

Basic earnings per share	$	1.66	$	1.55	$	5.07	$	3.60
Diluted earnings per share	$	1.52	$	1.40	$	4.57	$	3.32
Antidilutive non-vested restricted stock units excluded from calculation of diluted earnings per share	2,245		1,873		9,744		7,801

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 have the intent and ability to settle the principal amount of the outstanding Convertible Notes in cash. Under the treasury stock method, the Convertible Notes have a dilutive impact on diluted earnings per share to the extent that the average market price of our common stock for a reporting period exceeds the conversion price of $21.52 per share.

During the three and nine months ended September 30, 2018 and 2017, the average market price of our common stock exceeded the conversion price of $21.52 per share. Included in the calculation of diluted earnings per share was the effect of approximately 2.0 million shares of our common stock related to the conversion spread of the Convertible Notes for both the three months ended September 30, 2018 and 2017, and 2.1 million and 1.6 million shares of our common stock related to the conversion spread of the Convertible Notes for the nine months ended September 30, 2018 and 2017, respectively.

Stock-Based Compensation

9 Months Ended

Sep. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation Disclosures

STOCK-BASED COMPENSATION

Non-performance Based Restricted Stock Units

The following table summarizes the activity of our time-vested restricted stock units (“RSUs”):



	Nine Months Ended September 30,
	2018				2017
	Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value
Beginning balance	175,100		$	27.66	133,853		$	20.13
Granted	40,844		$	63.30	68,109		$	32.38
Vested	(36,486	)	$	15.70	(12,323	)	$	15.63
Forfeited	(5,941	)	$	34.31	(9,219	)	$	20.09
Ending balance	173,517		$	38.34	180,420		$	25.06

During the nine months ended September 30, 2018, we issued 15,867 RSUs to senior management for the time-based portion of our 2018 long-term incentive compensation program, 11,780 RSUs for 2017 bonuses to managers under our Annual Bonus Plan and 13,197 RSUs to other employees. Generally, the RSUs cliff vest on the third anniversary of the grant date and can only be settled in shares of our common stock.

We recognized $0.5 million and $0.3 million of stock-based compensation expense related to outstanding RSUs for the three months ended September 30, 2018 and 2017, respectively. We recognized $1.5 million and $0.9 million of stock-based compensation expense related to outstanding RSUs for the nine months ended September 30, 2018 and 2017, respectively. At September 30, 2018, we had unrecognized compensation cost of $3.6 million related to unvested RSUs, which is expected to be recognized over a weighted average period of 2.1 years.

Performance-Based Restricted Stock Units

The Compensation Committee of our Board of Directors has granted awards of Performance-Based RSUs (“PSUs”) under the Amended and Restated LGI Homes, Inc. 2013 Equity Incentive Plan to certain members of senior management based on the three-year performance cycles. 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 PSU grants 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.

The following table summarizes the activity of our PSUs for the nine months ended September 30, 2018:



Period Granted	Performance Period	Target PSUs Outstanding at December 31, 2017	Target PSUs Granted	Target PSUs Vested		Target PSUs Forfeited		Target PSUs Outstanding at September 30, 2018	Weighted Average Grant Date Fair Value
2015	2015 - 2017	120,971	—	(120,971	)	—		—	$	13.34
2016	2016 - 2018	87,605	—	—		(3,929	)	83,676	$	21.79
2017	2017 - 2019	111,035	—	—		(2,788	)	108,247	$	31.64
2018	2018 - 2020	—	61,898	—		—		61,898	$	64.60
Total		319,611	61,898	(120,971	)	(6,717	)	253,821

At September 30, 2018, management estimates that the recipients will receive approximately 100%, 200% and 200% of the 2018, 2017 and 2016 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. We recognized $0.9 million and $0.7 million of total stock-based compensation expense related to outstanding PSUs for the three months ended September 30, 2018 and 2017, respectively. We recognized $2.7 million and $2.6 million of total stock-based compensation expense related to outstanding PSUs for the nine months ended September 30, 2018 and 2017, respectively. PSUs granted in 2015 vested on March 15, 2018 at 200% of the target amount, and 241,942 shares of our common stock were issued upon such vesting. At September 30, 2018, we had unrecognized compensation cost of $6.4 million, based on the probable amount, related to unvested PSUs, which is expected to be recognized over a weighted average period of 0.8 years.

Fair Value Disclosures

9 Months Ended

Sep. 30, 2018

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 September 30, 2018, our revolving credit facility’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 September 30, 2018 and December 31, 2017 (in thousands):



		September 30, 2018				December 31, 2017
	Fair Value Hierarchy	Carrying Value		Estimated Fair Value ⁽¹⁾		Carrying Value		Estimated Fair Value ⁽¹⁾
Convertible Notes	Level 2	$	67,759	$	68,149	$	80,481	$	81,523
Senior Notes	Level 2	$	295,189	$	297,895	$	—	$	—


(1)	Excludes the fair value of the equity component of the Convertible Notes. See the “Convertible Notes” section within Note 6 for further details.

- 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	9 Months Ended
Related Party Transactions	Sep. 30, 2018
Related Party Transactions [Abstract]
Related Party Transactions Disclosures	RELATED PARTY TRANSACTIONS Land Purchases from Affiliates In April 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 the nine months ended September 30, 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. During the nine months ended September 30, 2017, we purchased 21 lots under this land purchase contract for $1.7 million. As of September 30, 2018, 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 $0.7 million non-refundable deposit at September 30, 2018 related to these land purchase contracts. We anticipate closing on these contracts in the first quarter of 2019. Home Sales to Affiliates We had no home closings to affiliates during the three and nine months ended September 30, 2018 or the three months ended September 30, 2017. During the nine months ended September 30, 2017, we closed on three homes sold to an affiliate of one of our directors for approximately $0.7 million.

Commitments and Contingencies

9 Months Ended

Sep. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosures

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):



	September 30, 2018		December 31, 2017
Land deposits and option payments	$	38,263	$	17,761
Commitments under the land purchase contracts if the purchases are consummated	$	778,264	$	460,714
Lots under land purchase contracts	26,836		18,758

As of September 30, 2018 and December 31, 2017, approximately $22.3 million and $8.4 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.

Bonding and Letters of Credit

We have outstanding letters of credit and performance and surety bonds totaling $56.0 million (including $5.3 million of letters of credit issued under our revolving credit facility) and $49.7 million at September 30, 2018 and December 31, 2017, 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

9 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

Segment Information Disclosures

SEGMENT INFORMATION

Beginning in the fourth quarter of 2017, we changed our reportable segment to Central, Southwest, Southeast, Florida, Northwest and Midwest. These segments reflect the way the Company evaluates its business performance and manages its operations. Prior year information has been restated for corresponding items of our segment information.

We operate one principal homebuilding business that is organized and reports by division. We have six operating segments at September 30, 2018: our Central, Southwest, Southeast, Florida, Northwest and Midwest divisions. The Central division is our largest division and comprised approximately 41% and 43% of total home sales revenues for the nine months ended September 30, 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 operating segments qualify as our six 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):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Revenues:
Central	$	150,045		$	165,870		$	438,811		$	370,550
Southwest	65,742			66,002			193,055			162,386
Southeast	73,507			54,331			178,984			133,665
Florida	38,750			56,171			136,211			129,345
Northwest	50,697			23,522			129,852			57,039
Midwest	1,628			—			2,327			—
Total home sales revenues	$	380,369		$	365,896		$	1,079,240		$	852,985

Net income (loss) before income taxes:
Central	$	25,571		$	28,824		$	75,614		$	63,245
Southwest	8,824			7,170			23,999			18,347
Southeast	7,512			6,225			19,438			15,145
Florida	4,522			7,430			16,079			16,222
Northwest	7,051			2,524			15,901			6,336
Midwest	(600		)	(393		)	(1,800		)	(620		)
Corporate ⁽¹⁾	(3,889		)	(903		)	(6,342		)	(2,314		)
Total net income (loss) before income taxes	$	48,991		$	50,877		$	142,889		$	116,361


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



	September 30, 2018		December 31, 2017
Assets:
Central	$	518,225	$	439,833
Southwest	186,204		175,786
Southeast	304,916		155,928
Florida	104,006		119,257
Northwest	152,390		80,350
Midwest	22,718		15,066
Corporate ⁽¹⁾	45,328		93,672
Total assets	$	1,333,787	$	1,079,892

(1)

As of September 30, 2018, the Corporate balance consists primarily of cash, prepaid insurance and prepaid expenses. As of December 31, 2017, the Corporate balance consists primarily of cash, deposits and pre-acquisition costs, prepaid insurance and prepaid expenses. As of December 31, 2017, $18.9 million of deposits and pre-acquisition costs were reported at Corporate and balances as of September 30, 2018 were allocated to the six reportable segments.

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENT Revolving Credit Agreement On October 18, 2018, we entered into a Lender Acknowledgement Agreement with certain lenders and Wells Fargo Bank, National Association, as administrative agent, whereby the aggregate revolving commitments under our revolving credit facility increased by $50.0 million from $450.0 million to $500.0 million in accordance with the relevant provisions of the Credit Agreement.

Business Acquisition (Tables)

9 Months Ended

Sep. 30, 2018

Business Combinations [Abstract]

Business Combination, Separately Recognized Transactions

At September 30, 2018, the acquired assets and assumed liabilities have been recorded at their estimated fair values at the acquisition date as noted below (amounts in thousands):



Purchase Consideration:	Total
Cash paid for net assets	$	73,829
Common Stock	4,000
Total consideration	77,829
Assets acquired and liabilities assumed:
Real estate inventory	74,359
Pre-acquisition costs, deposits and other assets	1,360
Intangible assets	7,961
Total assets	83,680
Accounts payable and accrued liabilities	(5,851		)
Total liabilities	(5,851		)

Net assets acquired	$	77,829

Revenue (Tables)

9 Months Ended

Sep. 30, 2018

Disaggregation of Revenue [Line Items]

Revenue from External Customers by Products

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



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Retail home sales revenues	$	353,594	$	347,626	$	1,017,952	$	819,309
Other	26,775		18,270		61,288		33,676
Total home sales revenues	$	380,369	$	365,896	$	1,079,240	$	852,985

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 14 (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Central	$	150,045	$	165,870	$	438,811	$	370,550
Southwest	65,742		66,002		193,055		162,386
Southeast	73,507		54,331		178,984		133,665
Florida	38,750		56,171		136,211		129,345
Northwest	50,697		23,522		129,852		57,039
Midwest	1,628		—		2,327		—
Total home sales revenues	$	380,369	$	365,896	$	1,079,240	$	852,985

Real Estate Inventory (Tables)

9 Months Ended

Sep. 30, 2018

Inventory Disclosure [Abstract]

Schedule of Real Estate Inventory

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



	September 30,		December 31,
	2018		2017
Land, land under development and finished lots	$	647,580	$	494,552
Information centers	21,796		18,327
Homes in progress	242,286		191,659
Completed homes	276,332		214,395
Total real estate inventory	$	1,187,994	$	918,933

Accrued Expenses and Other Liabilities (Tables)

9 Months Ended

Sep. 30, 2018

Payables and Accruals [Abstract]

Accrued and Other Current Liabilities

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



	September 30,		December 31,
	2018		2017
Inventory related obligations	$	9,714	$	12,906
Taxes payable	4,107		48,733
Retentions and development payable	23,544		12,025
Accrued compensation, bonuses and benefits	12,811		14,462
Accrued interest	7,607		2,096
Warranty reserve	2,850		2,450
Other	15,149		10,159
Total accrued expenses and other liabilities	$	75,782	$	102,831

Changes in Company's Warranty Accrual

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



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Warranty reserves, beginning of period	$	2,800		$	1,850		$	2,450		$	1,600
Warranty provision	1,240			1,990			2,923			3,189
Warranty expenditures	(1,190		)	(1,840		)	(2,523		)	(2,789		)
Warranty reserves, end of period	$	2,850		$	2,000		$	2,850		$	2,000

Notes Payable (Tables)

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

Schedule of Notes Payable

Notes payable consist of the following (in thousands):



	September 30, 2018		December 31, 2017
Notes payable under the Credit Agreement ($450.0 million revolving credit facility at September 30, 2018) maturing on May 31, 2021; interest paid monthly at LIBOR plus 2.90%; net of debt issuance costs of approximately $4.1 million and $5.3 million at September 30, 2018 and December 31, 2017, respectively	$	264,747	$	394,714
4.25% Convertible Notes due November 15, 2019; interest paid semi-annually at 4.25%; net of debt issuance costs of approximately $0.5 million and $1.0 million at September 30, 2018 and December 31, 2017, respectively; and approximately $1.7 million and $3.5 million in unamortized discount at September 30, 2018 and December 31, 2017, respectively	67,759		80,481
Senior Notes due July 15, 2026; interest paid semi-annually at 6.875%; net of debt issuance costs of approximately $2.6 million at September 30, 2018 and approximately $2.2 million in unamortized discount at September 30, 2018	295,189		—
Total notes payable	$	627,695	$	475,195

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):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Interest incurred	$	10,823		$	6,526		$	26,803		$	17,628
Less: Amounts capitalized	(10,823		)	(6,526		)	(26,803		)	(17,628		)
Interest expense	$	—		$	—		$	—		$	—

Cash paid for interest	$	4,517		$	4,361		$	17,786		$	13,272

Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2018

Earnings Per Share [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 three and nine months ended September 30, 2018 and 2017:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Numerator (in thousands):
Numerator for basic and dilutive earnings per share	$	37,723	$	33,687	$	112,633	$	77,666
Denominator:
Basic weighted average shares outstanding	22,658,457		21,668,585		22,236,018		21,544,747
Effect of dilutive securities:
Convertible Notes - treasury stock method	1,978,770		2,037,665		2,128,854		1,601,450
Stock-based compensation units	259,342		344,135		278,010		267,270
Diluted weighted average shares outstanding	24,896,569		24,050,385		24,642,882		23,413,467

Basic earnings per share	$	1.66	$	1.55	$	5.07	$	3.60
Diluted earnings per share	$	1.52	$	1.40	$	4.57	$	3.32
Antidilutive non-vested restricted stock units excluded from calculation of diluted earnings per share	2,245		1,873		9,744		7,801

Stock-based Compensation (Tables)

9 Months Ended

Sep. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Restricted Stock Unit Activity

The following table summarizes the activity of our time-vested restricted stock units (“RSUs”):



	Nine Months Ended September 30,
	2018				2017
	Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value
Beginning balance	175,100		$	27.66	133,853		$	20.13
Granted	40,844		$	63.30	68,109		$	32.38
Vested	(36,486	)	$	15.70	(12,323	)	$	15.63
Forfeited	(5,941	)	$	34.31	(9,219	)	$	20.09
Ending balance	173,517		$	38.34	180,420		$	25.06

Schedule of Performance Based Stock Activity

The following table summarizes the activity of our PSUs for the nine months ended September 30, 2018:



Period Granted	Performance Period	Target PSUs Outstanding at December 31, 2017	Target PSUs Granted	Target PSUs Vested		Target PSUs Forfeited		Target PSUs Outstanding at September 30, 2018	Weighted Average Grant Date Fair Value
2015	2015 - 2017	120,971	—	(120,971	)	—		—	$	13.34
2016	2016 - 2018	87,605	—	—		(3,929	)	83,676	$	21.79
2017	2017 - 2019	111,035	—	—		(2,788	)	108,247	$	31.64
2018	2018 - 2020	—	61,898	—		—		61,898	$	64.60
Total		319,611	61,898	(120,971	)	(6,717	)	253,821

Fair Value Disclosures (Tables)

9 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

The following table below shows the level and measurement of liabilities at September 30, 2018 and December 31, 2017 (in thousands):



		September 30, 2018				December 31, 2017
	Fair Value Hierarchy	Carrying Value		Estimated Fair Value ⁽¹⁾		Carrying Value		Estimated Fair Value ⁽¹⁾
Convertible Notes	Level 2	$	67,759	$	68,149	$	80,481	$	81,523
Senior Notes	Level 2	$	295,189	$	297,895	$	—	$	—


(1)	Excludes the fair value of the equity component of the Convertible Notes. See the “Convertible Notes” section within Note 6 for further details.

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2018

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):



	September 30, 2018		December 31, 2017
Land deposits and option payments	$	38,263	$	17,761
Commitments under the land purchase contracts if the purchases are consummated	$	778,264	$	460,714
Lots under land purchase contracts	26,836		18,758

Segment (Tables)

9 Months Ended

Sep. 30, 2018

Segment Reporting Information [Line Items]

Schedule of Segment Reporting Information, by Segment

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



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Revenues:
Central	$	150,045		$	165,870		$	438,811		$	370,550
Southwest	65,742			66,002			193,055			162,386
Southeast	73,507			54,331			178,984			133,665
Florida	38,750			56,171			136,211			129,345
Northwest	50,697			23,522			129,852			57,039
Midwest	1,628			—			2,327			—
Total home sales revenues	$	380,369		$	365,896		$	1,079,240		$	852,985

Net income (loss) before income taxes:
Central	$	25,571		$	28,824		$	75,614		$	63,245
Southwest	8,824			7,170			23,999			18,347
Southeast	7,512			6,225			19,438			15,145
Florida	4,522			7,430			16,079			16,222
Northwest	7,051			2,524			15,901			6,336
Midwest	(600		)	(393		)	(1,800		)	(620		)
Corporate ⁽¹⁾	(3,889		)	(903		)	(6,342		)	(2,314		)
Total net income (loss) before income taxes	$	48,991		$	50,877		$	142,889		$	116,361


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



	September 30, 2018		December 31, 2017
Assets:
Central	$	518,225	$	439,833
Southwest	186,204		175,786
Southeast	304,916		155,928
Florida	104,006		119,257
Northwest	152,390		80,350
Midwest	22,718		15,066
Corporate ⁽¹⁾	45,328		93,672
Total assets	$	1,333,787	$	1,079,892

(1)

Business Acquisition (Details) $ in Thousands	9 Months Ended
Business Acquisition (Details) $ in Thousands	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)
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
Purchase price of business combination	$ 77,829
Payment for business acquisition	73,829	$ 0
Stock issued in business combination	4,000
Real estate inventory acquired in business combination	74,359
Pre-acquisition costs, deposits, and other assets in a business combination	1,360
Intangible assets acquired in a business combination	7,961
Total assets acquired in a business acquisition	83,680
Liabilities assumed in a business combination	(5,851)
Net assets acquired in a business combination	77,829
Acquisition related costs	$ 800

Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Revenue (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Home sales revenues	$ 380,369	$ 365,896	$ 1,079,240	$ 852,985
Retail
Disaggregation of Revenue [Line Items]
Home sales revenues	353,594	347,626	1,017,952	819,309
Wholesale
Disaggregation of Revenue [Line Items]
Home sales revenues	26,775	18,270	61,288	33,676
Central Division
Disaggregation of Revenue [Line Items]
Home sales revenues	150,045	165,870	438,811	370,550
Southwest Division
Disaggregation of Revenue [Line Items]
Home sales revenues	65,742	66,002	193,055	162,386
Southeast Division
Disaggregation of Revenue [Line Items]
Home sales revenues	73,507	54,331	178,984	133,665
Florida Division
Disaggregation of Revenue [Line Items]
Home sales revenues	38,750	56,171	136,211	129,345
Northwest Division
Disaggregation of Revenue [Line Items]
Home sales revenues	50,697	23,522	129,852	57,039
Midwest Division
Disaggregation of Revenue [Line Items]
Home sales revenues	$ 1,628	$ 0	$ 2,327	$ 0

Schedule of Real Estate Inventory (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Inventory [Line Items]
Land, land under development and finished lots	$ 647,580	$ 494,552
Information centers	21,796	18,327
Homes in progress	242,286	191,659
Completed homes	276,332	214,395
Total real estate inventory	$ 1,187,994	$ 918,933
Minimum
Inventory [Line Items]
Community life cycle	P2Y
Maximum
Inventory [Line Items]
Community life cycle	P5Y

Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Inventory related obligations	$ 9,714	$ 12,906
Taxes payable	4,107	48,733
Retentions and development payable	23,544	12,025
Accrued compensation, bonuses and benefits	12,811	14,462
Accrued interest	7,607	2,096
Warranty reserve	2,850	2,450
Other	15,149	10,159
Total accrued expenses and other liabilities	$ 75,782	$ 102,831
Inventory related obligation term	30 years

Changes in Warranty Reserve (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Product Warranty, Increase (Decrease) [Roll Forward]
Warranty reserves, beginning of period	$ 2,800	$ 1,850	$ 2,450	$ 1,600
Warranty provision	1,240	1,990	2,923	3,189
Warranty expenditures	(1,190)	(1,840)	(2,523)	(2,789)
Warranty reserves, end of period	$ 2,850	$ 2,000	$ 2,850	$ 2,000
Other Construction Components
Product Warranty Liability [Line Items]
Limited warranty period			1 year
Structural Elements
Product Warranty Liability [Line Items]
Limited warranty period			10 years

Schedule of Notes Payable (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Notes payable	$ 627,695	$ 475,195
Revolving Credit Facility
Debt Instrument [Line Items]
Notes payable	264,747	394,714
Debt issuance costs	4,051	5,286
Convertible Debt
Debt Instrument [Line Items]
Notes payable	67,759	80,481
Debt issuance costs	473	1,014
Unamortized discount	1,731	3,505
Senior Notes
Debt Instrument [Line Items]
Notes payable	295,189	0
Debt issuance costs	2,619	0
Unamortized discount	$ 2,192	$ 0

Revolving Credit Agreement (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2018	Dec. 31, 2017
Line of Credit Facility [Line Items]
Assets	$ 1,333,787		$ 1,333,787			$ 1,079,892
Loss on extinguishment of debt	(3,058)	$ 0	(3,599)	$ 0
Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility, current borrowing capacity	743,900		743,900
Line of credit facility, maximum borrowing capacity	450,000		450,000		$ 750,000
Line of credit facility, additional borrowing capacity	50,000		$ 50,000
Line of credit facility, expiration date			May 31, 2021
Line of credit, amount outstanding	638,800		$ 638,800
Letters of credit outstanding	5,300		5,300
Line of credit facility, remaining borrowing capacity	99,800		$ 99,800
Base spread on variable rate			2.90%
Loss on extinguishment of debt	$ 3,058
Revolving Credit Facility \| LIBOR
Line of Credit Facility [Line Items]
Variable interest rate	2.18%		2.18%
Revolving Credit Facility \| Minimum \| Guarantor Subsidiaries
Line of Credit Facility [Line Items]
Assets	$ 500		$ 500

Convertible Notes (Details)	1 Months Ended	9 Months Ended
Convertible Notes (Details)	Nov. 30, 2014 USD ($)	Sep. 30, 2018 USD ($) $ / shares shares	Sep. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)
Debt Instrument [Line Items]
Loss on extinguishment of debt		$ 3,588,000	$ 0
Convertible Debt
Debt Instrument [Line Items]
Debt conversion, original debt amount		$ 85,000,000
Stated interest rate on convertible note		4.25%
Line of credit facility, expiration date		Nov. 15, 2019
Convertible notes, fair value	$ 76,500,000	$ 68,149,000		$ 81,523,000
Adjustments to APIC, equity component of convertible debt	5,500,000	$ 600,000
Adjustments to APIC, deferred tax liability	$ 3,000,000
Convertible notes, conversion ratio		46.4792
Convertible notes, amount in multiples that may be converted		$ 1,000
Convertible notes, conversion price \| $ / shares		$ 21.52
Repayments of convertible notes		$ 15,000,000
Debt conversion, converted instrument, shares issued \| shares		486,679
Loss on extinguishment of debt		$ 200,000
Convertible debt		$ 70,000,000

Senior Notes (Details) - Senior Notes $ in Millions	9 Months Ended
Senior Notes (Details) - Senior Notes $ in Millions	Sep. 30, 2018 USD ($)
Debt Instrument [Line Items]
Senior Notes, Gross	$ 300.0
Stated interest rate on convertible note	6.875%
Senior Notes maturity date	Jul. 15, 2026
Initial debt discount	$ 2.3
Proceeds from issuance of debt	296.2
Debt offering commissions and offering costs	$ 1.5

Capitalized Interest (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Capitalized Interest (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Debt Disclosure [Abstract]
Interest incurred	$ 10,823	$ 6,526	$ 26,803	$ 17,628
Less: Amounts capitalized	(10,823)	(6,526)	(26,803)	(17,628)
Interest expense	0	0	0	0
Cash paid for interest	4,517	4,361	17,786	13,272
Amortization of financing costs and discounts	$ 1,300	$ 1,000	$ 3,500	$ 3,000

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Effective income tax rate reconciliation, percent			21.20%
Income taxes paid	$ 12.8	$ 2.0	$ 76.5	$ 16.7

Equity (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
Equity (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Equity [Line Items]
Issuance of shares in settlement of Convertible Notes		$ (470)
ATM Program maximum authorized amount	$ 25,000		$ 25,000
Issuance of shares (in shares)	112,798		267,788
Issuance of shares, net offering costs	$ 5,100		$ 10,000
Convertible Debt
Equity [Line Items]
Repayments of convertible notes		$ 15,000
Debt conversion, converted instrument, shares issued		486,679
Issuance of shares in settlement of Convertible Notes		$ (475)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Net income	$ 37,723	$ 33,687	$ 112,633	$ 77,666
Basic weighted average shares outstanding	22,658,457	21,668,585	22,236,018	21,544,747
Convertible Notes - treasury stock method	1,978,770	2,037,665	2,128,854	1,601,450
Stock-based compensation units	259,342	344,135	278,010	267,270
Diluted weighted average shares outstanding	24,896,569	24,050,385	24,642,882	23,413,467
Basic earnings per share (in dollars per share)	$ 1.66	$ 1.55	$ 5.07	$ 3.60
Diluted earnings per share (in dollars per share)	$ 1.52	$ 1.40	$ 4.57	$ 3.32
Antidilutive non-vested restricted stock units excluded from calculation of diluted earnings per share	2,245	1,873	9,744	7,801
Convertible Debt
Convertible notes, conversion price	$ 21.52		$ 21.52

Summary of Non-Perfomance Based Restricted Stock Units (Details) - Restricted stock units (RSUs) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Award [Abstract]
Balance at Beginning of Period			175,100	133,853
Granted			40,844	68,109
Vested			(36,486)	(12,323)
Forfeited			(5,941)	(9,219)
Balance at End of Period	173,517	180,420	173,517	180,420
Share-based Compensation Arrangement by Award, Fair Value [Abstract]
Shares outstanding at the beginning of the period, weighted average grant date fair value			$ 27.66	$ 20.13
Granted, weighted average grant date fair value			63.30	32.38
Vested, weighted average grant date fair value			15.70	15.63
Forfeited, weighted average grant date fair value			34.31	20.09
Shares outstanding at the end of the period, weighted average grant date fair value	$ 38.34	$ 25.06	$ 38.34	$ 25.06
Share-based compensation expense	$ 0.5	$ 0.3	$ 1.5	$ 0.9
Share-based compensation not yet recognized	$ 3.6		$ 3.6
Share-based compensation not yet recognized, period for recognition			2 years 1 month
Senior Management
Share-based Compensation Arrangement by Award [Abstract]
Granted			15,867
Management
Share-based Compensation Arrangement by Award [Abstract]
Granted			11,780
Certain Employees And Executives
Share-based Compensation Arrangement by Award [Abstract]
Granted			13,197

Summary of Performance Based Restricted Stock Units (Details) - Performance Based Shares - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Award [Line Items]
Performance vesting period			3 years
Balance at Beginning of Period			319,611
Granted			61,898
Vested			(120,971)
Forfeited			(6,717)
Balance at End of Period	253,821		253,821
Share-based compensation expense	$ 0.9	$ 0.7	$ 2.7	$ 2.6
Share-based compensation not yet recognized	$ 6.4		$ 6.4
Share-based compensation not yet recognized, period for recognition			10 months
2015 Grant
Share-based Compensation Arrangement by Award [Line Items]
Percentage of total units vested			200.00%
Balance at Beginning of Period			120,971
Vested			(120,971)
Balance at End of Period	0		0
Weighted average grant date fair value	$ 13.34		$ 13.34
2016 Grant
Share-based Compensation Arrangement by Award [Line Items]
Percentage of total units vested			200.00%
Balance at Beginning of Period			87,605
Forfeited			(3,929)
Balance at End of Period	83,676		83,676
Weighted average grant date fair value	$ 21.79		$ 21.79
2017 Grant
Share-based Compensation Arrangement by Award [Line Items]
Percentage of total units vested			200.00%
Balance at Beginning of Period			111,035
Forfeited			(2,788)
Balance at End of Period	108,247		108,247
Weighted average grant date fair value	$ 31.64		$ 31.64
2018 Grant
Share-based Compensation Arrangement by Award [Line Items]
Percentage of total units vested			100.00%
Balance at Beginning of Period			0
Granted			61,898
Balance at End of Period	61,898		61,898
Weighted average grant date fair value	$ 64.60		$ 64.60
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%
Maximum \| 2015 Grant
Share-based Compensation Arrangement by Award [Line Items]
Vested			(241,942)

Fair Value Disclosures (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	Nov. 30, 2014
Fair Value Disclosures [Line Items]
Notes payable, carrying value	$ 627,695	$ 475,195
Convertible Debt
Fair Value Disclosures [Line Items]
Notes payable, carrying value	67,759	80,481
Convertible notes, fair value	68,149	81,523	$ 76,500
Senior Notes
Fair Value Disclosures [Line Items]
Notes payable, carrying value	295,189	0
Senior notes, fair value	$ 297,895	$ 0

Related Party Transactions (Details)	3 Months Ended		9 Months Ended
Related Party Transactions (Details)	Sep. 30, 2018 USD ($) lot	Sep. 30, 2017 USD ($) lot	Sep. 30, 2018 USD ($) lot	Sep. 30, 2017 USD ($) lot	Dec. 31, 2017
Related Party Transaction [Line Items]
Total lots under option contract to purchase	26,836		26,836		18,758
Affiliated Entity
Related Party Transaction [Line Items]
Number of homes closed	0	0	0	3
Revenue from home sales to related parties				$ 700,000
TEXAS \| Affiliated Entity
Related Party Transaction [Line Items]
Total lots under option contract to purchase \| lot	106		106
Total purchase price for lots under option contract	$ 8,000,000		$ 8,000,000
Interval lots under purchase options to takedown \| lot	21		21
Annual price escalation rate			5.00%
Purchased lots previously under purchase options \| lot	22	21	22	21
Land under purchase options, purchase price	$ 1,800,000	$ 1,700,000	$ 1,800,000	$ 1,700,000
Non-refundable deposit related to option contract	$ 100,000		$ 100,000
FLORIDA \| Affiliated Entity
Related Party Transaction [Line Items]
Total lots under option contract to purchase \| lot	198		198
Total purchase price for lots under option contract	$ 6,900,000		$ 6,900,000
Non-refundable deposit related to option contract	$ 700,000		$ 700,000
Minimum \| FLORIDA \| Affiliated Entity
Related Party Transaction [Line Items]
Annual price escalation rate			3.00%
Maximum \| FLORIDA \| Affiliated Entity
Related Party Transaction [Line Items]
Annual price escalation rate			6.00%

Commitments and Contingencies (Details) $ in Thousands	Sep. 30, 2018 USD ($)	Dec. 31, 2017 USD ($)
Other Commitments [Line Items]
Land deposits and option payments	$ 38,263	$ 17,761
Commitments under the land purchase contracts if the purchases are consummated	$ 778,264	$ 460,714
Lots under land purchase contracts	26,836	18,758
Refundable land deposits of purchase contracts of finished lots	$ 22,300	$ 8,400
Letters of credit, surety bonds, and other financials guarantees	56,000	$ 49,700
Revolving Credit Facility
Other Commitments [Line Items]
Letters of credit outstanding under revolving credit facility	$ 5,300

Segment Information (Details)	3 Months Ended		9 Months Ended
Segment Information (Details)	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2018 USD ($) business	Sep. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)
Segment Reporting Information [Line Items]
Assets	$ 1,333,787,000		$ 1,333,787,000		$ 1,079,892,000
Home sales revenues	380,369,000	$ 365,896,000	$ 1,079,240,000	$ 852,985,000
Number of reporting segments \| business			6
Number of operating segments \| business			6
Net income before income taxes	48,991,000	50,877,000	$ 142,889,000	116,361,000
Pre-acquisition costs and deposits	40,055,000		40,055,000		18,866,000
Central Division
Segment Reporting Information [Line Items]
Assets	518,225,000		518,225,000		439,833,000
Home sales revenues	150,045,000	165,870,000	438,811,000	370,550,000
Net income before income taxes	25,571,000	28,824,000	75,614,000	63,245,000
Southwest Division
Segment Reporting Information [Line Items]
Assets	186,204,000		186,204,000		175,786,000
Home sales revenues	65,742,000	66,002,000	193,055,000	162,386,000
Net income before income taxes	8,824,000	7,170,000	23,999,000	18,347,000
Southeast Division
Segment Reporting Information [Line Items]
Assets	304,916,000		304,916,000		155,928,000
Home sales revenues	73,507,000	54,331,000	178,984,000	133,665,000
Net income before income taxes	7,512,000	6,225,000	19,438,000	15,145,000
Florida Division
Segment Reporting Information [Line Items]
Assets	104,006,000		104,006,000		119,257,000
Home sales revenues	38,750,000	56,171,000	136,211,000	129,345,000
Net income before income taxes	4,522,000	7,430,000	16,079,000	16,222,000
Northwest Division
Segment Reporting Information [Line Items]
Assets	152,390,000		152,390,000		80,350,000
Home sales revenues	50,697,000	23,522,000	129,852,000	57,039,000
Net income before income taxes	7,051,000	2,524,000	15,901,000	6,336,000
Midwest Division
Segment Reporting Information [Line Items]
Assets	22,718,000		22,718,000		15,066,000
Home sales revenues	1,628,000	0	2,327,000	0
Net income before income taxes	(600,000)	(393,000)	(1,800,000)	(620,000)
Corporate
Segment Reporting Information [Line Items]
Assets	45,328,000		45,328,000		93,672,000
Net income before income taxes	$ (3,889,000)	$ (903,000)	$ (6,342,000)	$ (2,314,000)
Pre-acquisition costs and deposits					$ 18,866,000
Operating Segments \| Central Division
Segment Reporting Information [Line Items]
Percentage of operations			41.00%	43.00%
Intersegment Eliminations
Segment Reporting Information [Line Items]
Home sales revenues			$ 0

Subsequent Events (Details) - Revolving Credit Facility - USD ($) $ in Millions	Oct. 18, 2018	Sep. 30, 2018	Jun. 30, 2018
Subsequent Event [Line Items]
Line of credit facility, maximum borrowing capacity		$ 450.0	$ 750.0
Subsequent Event
Subsequent Event [Line Items]
Line of credit facility, increase	$ 50.0
Line of credit facility, maximum borrowing capacity	$ 500.0