10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q/A

Amendment No. 1

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2012

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 333-177328 

SHEA HOMES LIMITED PARTNERSHIP

(Exact name of registrant as specified in its charter)

California	95-4240219
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
655 Brea Canyon Road, Walnut, CA	91789
(Address of principal executive offices)	(Zip Code)

(909) 594-9500

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ¨    No  x.

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one).

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	x  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x.

EXPLANATORY NOTE

Shea Homes Limited Partnership is filing this Amendment No. 1 on Form 10-Q/A to our Quarterly Report on Form 10-Q for the three months ended March 31, 2012, filed with the Securities and Exchange Commission on May 11, 2012, solely for the purpose of including Exhibit 101.

Except as specifically indicated herein, no other information included in our Quarterly Report on Form 10-Q is amended by this Amendment No. 1 on Form 10-Q/A.

PART II. OTHER INFORMATION

ITEM 6. EXHIBITS

Exhibit No.

101 The following materials from Shea Homes Limited Partnership’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012, formatted in eXtensible Business Reporting Language (XBRL): (i) Condensed Consolidated Balance Sheets, (ii) Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss), (iii) Unaudited Condensed Consolidated Statements of Changes in Equity, (iv) Unaudited Condensed Consolidated Statements of Cash Flows, and (v) Notes to Unaudited Condensed Consolidated Financial Statements. Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed furnished and not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SHEA HOMES LIMITED PARTNERSHIP     (Registrant)
Dated: June 8, 2012	By:	/s/ BRUCE J. VARKER
		Bruce J. Varker
		Chief Financial Officer (Principal Financial Officer)

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Restricted Cash - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Homebuilding Operations
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	$ 13.5	$ 13.3
PIC
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	$ 0.4	$ 0.4

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Investments in Joint Ventures - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011	Dec. 31, 2011
Investment [Line Items]
Deficit Distributions	$ 903,000		$ 928,000
Impairment on investments	0	0
Notes payable	751,374,000		752,056,000
Indemnification agreement from joint ventures, percentage	90.00%		90.00%
Guarantees not provided
Investment [Line Items]
Notes payable secured by real property	31,000,000		44,200,000
Notes payable	7,300,000		48,300,000
Unconsolidated Joint Ventures | Total Notes Payable
Investment [Line Items]
Notes payable	47,500,000		103,700,000
Unconsolidated Joint Ventures | Bank and Seller Financing Notes Payable | Total Notes Payable
Investment [Line Items]
Notes payable secured by real property	40,200,000		55,400,000
Unconsolidated Joint Ventures | Guarantee provided
Investment [Line Items]
Notes payable outstanding	9,200,000		11,200,000
Unconsolidated Joint Ventures | Maximum
Investment [Line Items]
Ownership interest	50.00%
Joint Ventures
Investment [Line Items]
Deficit Distributions	903,000		928,000
Joint Ventures | Indirect
Investment [Line Items]
Ownership interest	12.30%		12.30%
Notes payable secured by real property	7,200,000		7,200,000
Joint Ventures | Bank and Seller Financing Notes Payable
Investment [Line Items]
Notes payable secured by real property			15,400,000
SCLLC | Unconsolidated Joint Ventures | Bank and Seller Financing Notes Payable
Investment [Line Items]
Notes payable secured by real property			14,000,000
Notes payable			$ 40,900,000

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Fair Value Disclosures - Additional Information (Detail) (Senior Secured Notes, USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Net Book Value	$ 750,000	$ 750,000
Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Net Book Value	$ 750,000

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Financial Information for Reportable Segments - Assets (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Segment Reporting Disclosure [Line Items]
Assets	$ 1,292,700	$ 1,328,116
Corporate
Segment Reporting Disclosure [Line Items]
Assets	353,515	342,961
Homebuilding
Segment Reporting Disclosure [Line Items]
Assets	939,185	985,155
Homebuilding | Southern California
Segment Reporting Disclosure [Line Items]
Assets	184,294	176,999
Homebuilding | San Diego
Segment Reporting Disclosure [Line Items]
Assets	121,314	127,438
Homebuilding | Northern California
Segment Reporting Disclosure [Line Items]
Assets	216,664	219,734
Homebuilding | Mountain West
Segment Reporting Disclosure [Line Items]
Assets	301,987	351,050
Homebuilding | South West
Segment Reporting Disclosure [Line Items]
Assets	109,408	105,621
Homebuilding | Other Areas
Segment Reporting Disclosure [Line Items]
Assets	$ 5,518	$ 4,313

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Variable Interest Entities (Detail) (USD $) In Millions, unless otherwise specified				3 Months Ended
	Mar. 31, 2012 Land Option Contracts	Mar. 31, 2012 Loss Exposure Land Option Contracts	Dec. 31, 2011 Loss Exposure Land Option Contracts	Mar. 31, 2012 Affiliated Entity	Mar. 31, 2012 Third Party	Mar. 31, 2012 Baker Ranch	Dec. 31, 2011 Baker Ranch	Mar. 31, 2012 Unconsolidated Variable Interest Entities Land Option Contracts
Variable Interest Entity [Line Items]
VIEs ownership interest				50.00%	50.00%
Notes payable outstanding						$ 25.4	$ 25.4
Refundable and non-refundable cash deposits	8.1	14.0	14.2					6.0
Remaining purchase price of cash deposits	$ 121.6							$ 83.5

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Summary of Changes in Fair Value of Level 3 Financial Instruments (Detail) (Fair Value, Inputs, Level 3, Private Debt Obligations, USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012
Fair Value, Inputs, Level 3 | Private Debt Obligations
Fair Value Measurements [Line Items]
Fair value at December 31, 2011	$ 10,504
Unrealized gains, included in other comprehensive income (loss)	2,077
Fair value at March 31, 2012	$ 12,581

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Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2012

Receivables from Related Parties

At March 31, 2012 and December 31, 2011, receivables from related parties, net were as follows:

	March 31, 2012			December 31, 2011
	(In thousands)
Note receivable from JFSCI	$	25,635		$	25,381
Notes receivable from unconsolidated joint ventures		366			25,631
Notes receivable from other related parties		20,749			21,013
Reserves for notes receivable from other related parties		(12,715	)		(12,697	)
Receivables from related parties		1,302			895
Total receivables from related parties, net	$	35,337		$	60,223

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Financial Information Relating to Reportable Segments - Loss Before Income Taxes (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Segment Reporting Disclosure [Line Items]
(Loss) Income before income taxes	$ (950)	$ (8,541)
Corporate
Segment Reporting Disclosure [Line Items]
(Loss) Income before income taxes	1,531	880
Homebuilding
Segment Reporting Disclosure [Line Items]
(Loss) Income before income taxes	(2,481)	(9,421)
Homebuilding | Southern California
Segment Reporting Disclosure [Line Items]
(Loss) Income before income taxes	1,974	(2,325)
Homebuilding | San Diego
Segment Reporting Disclosure [Line Items]
(Loss) Income before income taxes	1	(1,299)
Homebuilding | Northern California
Segment Reporting Disclosure [Line Items]
(Loss) Income before income taxes	817	(1,729)
Homebuilding | Mountain West
Segment Reporting Disclosure [Line Items]
(Loss) Income before income taxes	(3,367)	(1,780)
Homebuilding | South West
Segment Reporting Disclosure [Line Items]
(Loss) Income before income taxes	(1,657)	(2,034)
Homebuilding | Other Areas
Segment Reporting Disclosure [Line Items]
(Loss) Income before income taxes	$ (249)	$ (254)

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Notes Payable (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Debt Instrument [Line Items]
Notes payable	$ 751,374	$ 752,056
Senior Secured Notes 8.625 Percent Due May 2019
Debt Instrument [Line Items]
Notes payable	750,000	750,000
Promissory Notes Maturing 2014
Debt Instrument [Line Items]
Notes payable	$ 1,374	$ 2,056

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Condensed Consolidating Statement of Cash Flows (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012		Mar. 31, 2011
Operating activities
Net cash (used in) provided by operating activities	$ 9,760		$ (38,170)
Investing activities
Net (increase) decrease in promissory notes from related parties	(108)		11,327
Other investing activities	(69)		(238)
Net cash (used in) provided by investing activities	(421)		10,935
Financing activities
Principal payments to financial institutions and others	(601)		(20,439)
Intercompany	0		0
Other financing activities	1,234		4,227
Net cash provided by (used in) financing activities	633		(16,212)
Net (decrease) increase in cash and cash equivalents	9,972		(43,447)
Cash and cash equivalents at beginning of period	268,366		166,874
Cash and cash equivalents at end of period	278,338		123,427
SHLP Corp
Operating activities
Net cash (used in) provided by operating activities	(13,830)	[1]	(17,983)	[2]
Investing activities
Net (increase) decrease in promissory notes from related parties	282	[1]	(1,008)	[2]
Other investing activities	(146)	[1]	(343)	[2]
Net cash (used in) provided by investing activities	136	[1]	(1,351)	[2]
Financing activities
Principal payments to financial institutions and others	(402)	[1]	(20,439)	[2]
Intercompany	24,223	[1]	(29,799)	[2]
Other financing activities	0	[1]	4,317	[2]
Net cash provided by (used in) financing activities	23,821	[1]	(45,921)	[2]
Net (decrease) increase in cash and cash equivalents	10,127	[1]	(65,255)	[2]
Cash and cash equivalents at beginning of period	157,511	[1],[3]	99,511	[2]
Cash and cash equivalents at end of period	167,638	[1],[4]	34,256	[2]
Guarantor Subsidiaries
Operating activities
Net cash (used in) provided by operating activities	268		(14,256)
Investing activities
Net (increase) decrease in promissory notes from related parties	(247)		(56)
Other investing activities	122		750
Net cash (used in) provided by investing activities	(125)		694
Financing activities
Principal payments to financial institutions and others	0		0
Intercompany	803		35,745
Other financing activities	0		0
Net cash provided by (used in) financing activities	803		35,745
Net (decrease) increase in cash and cash equivalents	946		22,183
Cash and cash equivalents at beginning of period	96,100		54,393
Cash and cash equivalents at end of period	97,046		76,576
Non-Guarantor Subsidiaries
Operating activities
Net cash (used in) provided by operating activities	22,583		458
Investing activities
Net (increase) decrease in promissory notes from related parties	(143)		(215)
Other investing activities	(289)		(799)
Net cash (used in) provided by investing activities	(432)		(1,014)
Financing activities
Principal payments to financial institutions and others	(199)		0
Intercompany	(24,287)		271
Other financing activities	1,234		(90)
Net cash provided by (used in) financing activities	(23,252)		181
Net (decrease) increase in cash and cash equivalents	(1,101)		(375)
Cash and cash equivalents at beginning of period	14,755		12,970
Cash and cash equivalents at end of period	13,654		12,595
Consolidation, Eliminations
Operating activities
Net cash (used in) provided by operating activities	739		(6,389)
Investing activities
Net (increase) decrease in promissory notes from related parties	0		12,606
Other investing activities	0		0
Net cash (used in) provided by investing activities	0		12,606
Financing activities
Principal payments to financial institutions and others	0		0
Intercompany	(739)		(6,217)
Other financing activities	0		0
Net cash provided by (used in) financing activities	(739)		(6,217)
Net (decrease) increase in cash and cash equivalents	0		0
Cash and cash equivalents at beginning of period	0		0
Cash and cash equivalents at end of period	$ 0		$ 0

[1] Includes Shea Homes Funding Corp.; no significant activity occurred in 2012.

[2] Shea Homes Funding Corp. was formed on April 26, 2011, therefore no amounts are included in any financial statement before this date.

[3] Includes Shea Homes Funding Corp., whose financial position at December 31, 2011 was not material.

[4] Includes Shea Homes Funding Corp., whose financial position at March 31, 2012 was not material.

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Financial Information for Reportable Segments - Inventory (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Segment Reporting Disclosure [Line Items]
Inventory	$ 770,734	$ 783,810
Corporate
Segment Reporting Disclosure [Line Items]
Inventory	0	0
Homebuilding
Segment Reporting Disclosure [Line Items]
Inventory	770,734	783,810
Homebuilding | Southern California
Segment Reporting Disclosure [Line Items]
Inventory	145,072	142,877
Homebuilding | San Diego
Segment Reporting Disclosure [Line Items]
Inventory	103,558	105,595
Homebuilding | Northern California
Segment Reporting Disclosure [Line Items]
Inventory	201,035	204,901
Homebuilding | Mountain West
Segment Reporting Disclosure [Line Items]
Inventory	243,075	256,685
Homebuilding | South West
Segment Reporting Disclosure [Line Items]
Inventory	74,477	71,289
Homebuilding | Other Areas
Segment Reporting Disclosure [Line Items]
Inventory	$ 3,517	$ 2,463

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2012

Inventory

Inventory

Inventory is stated at cost, unless the carrying amount is determined not to be recoverable, in which case inventory is written down to fair value. Quarterly, we review our real estate assets at each community for indicators of impairment. Real estate assets include projects actively selling and projects under development or held for future development. Indicators of impairment include, but not limited to, significant decreases in local housing market values and selling prices of comparable homes, significant decreases in gross margins and sales absorption rates, costs in excess of budget, and actual or projected cash flow losses.

Semi-annually, or if there are indications of impairment, we perform a detailed budget and cash flow review of our real estate assets to determine whether the estimated remaining undiscounted future cash flows of the community are more or less than the asset’s carrying value. If the undiscounted cash flows are more than the asset’s carrying value, no impairment adjustment is required. However, if the undiscounted cash flows are less than the asset’s carrying value, the asset is deemed impaired and is written down to fair value. These impairment evaluations require us to make estimates and assumptions regarding future conditions, including timing and amounts of development costs and sales prices of real estate assets, to determine if expected future undiscounted cash flows will be sufficient to recover the asset’s carrying value.

When estimating undiscounted cash flows of a community, we make various assumptions, including: (i) expected sales prices and sales incentives to be offered, including the number of homes available, pricing and incentives being offered by us or other builders in other communities, and future sales price adjustments based on market and economic trends; (ii) expected sales pace and cancellation rates based on local housing market conditions, competition and historical trends; (iii) costs expended to date and expected to be incurred, including, but not limited to, land and land development costs, home construction costs, interest costs, indirect construction and overhead costs, and selling and marketing costs; (iv) alternative product offerings that may be offered that could have an impact on sales pace, sales price and/or building costs; and (v) alternative uses for the property.

Many assumptions are interdependent and a change in one may require a corresponding change to other assumptions. For example, increasing or decreasing sales absorption rates has a direct impact on the estimated per unit sales price of a home, the level of time sensitive costs (such as indirect construction, overhead and carrying costs), and selling and marketing costs (such as model maintenance costs and advertising costs). Depending on the underlying objective of the community, assumptions could have a significant impact on the projected cash flow analysis. For example, if our objective is to preserve operating margins, our cash flow analysis will be different than if the objective is to increase sales. These objectives may vary significantly from community to community and over time.

If assets are considered impaired, impairment is determined by the amount the asset’s carrying value exceeds its fair value. Fair value is determined based on estimated future cash flows discounted for inherent risks associated with real estate assets or other valuation techniques. These discounted cash flows are impacted by expected risk based on estimated land development, construction and delivery timelines; market risk of price erosion; uncertainty of development or construction cost increases; and other risks specific to the asset or market conditions where the asset is located when assessment is made. These factors are specific to each community and may vary among communities. The discount rate used in determining each asset’s fair value depends on the community’s projected life and development stage. We generally use discount rates ranging from 10% to 25%, subject to perceived risks associated with the community’s cash flow streams relative to its inventory.

Completed Operations Claim Costs

Completed Operations Claim Costs

We maintain, and require our subcontractors to maintain, general liability insurance which includes coverage for completed operations losses and damages. Most of our subcontractors carry this insurance through our “rolling wrap-up” insurance program, where our risks, and risks of participating subcontractors working on our projects, are insured through master policies.

Completed operations claims reserves primarily represent claims for property damage to completed homes and projects outside of our one-to-two year warranty period. Specific terms and conditions of completed operations warranties vary depending on the market in which homes are closed and can range to 12 years.

We record expenses and liabilities for estimated costs of potential completed operations claims based upon aggregated loss experience, which includes an estimate of completed operations claims incurred but not reported and is actuarially estimated using individual case-basis valuations and statistical analysis. These estimates make up our entire reserve and are subject to a high degree of variability due to uncertainties such as trends in completed operations claims related to our markets and products built, changes in claims reporting and settlement patterns, third party recoveries, insurance industry practices, insurance regulations and legal precedent. Because state regulations vary, completed operations claims are reported and resolved over an extended period, sometimes exceeding 12 years. As a result, actual costs may differ significantly from estimates.

The actuarial analyses that determined these incurred but not reported claims consider various factors, including frequency and severity of losses, which are based on our historical claims experience supplemented by industry data. The actuarial analyses of these claims and reserves also consider historical third party recovery rates and claims management expenses. Due to the inherent uncertainty related to each of these factors, periodic changes to such factors based on updated relevant information could result in actual costs to differ significantly from estimated costs.

In accordance with our underlying completed operations insurance policies, these completed operations claims costs are recoverable from our subcontractors or insurance carriers. Completed operations claims through July 31, 2009 are insured with third-party insurance carriers and completed operations claims commencing August 1, 2009 are insured with affiliate insurance carriers.

Revenues

Revenues

In accordance with Accounting Standards Codification (“ASC”) 360, revenues from housing and other real estate sales are recognized when the respective units are closed. Housing and other real estate sales are closed when all conditions of escrow are met, including delivery of the home or other real estate asset, title passage, appropriate consideration is received and collection of associated receivables, if any, is reasonably assured. Sales incentives are a reduction of revenues when the respective unit is closed.

Income Taxes

Income Taxes

SHLP is treated as a partnership for income tax purposes. As a limited partnership, SHLP is subject to certain minimal state taxes and fees; however, taxes on income or losses realized by SHLP are generally the obligation of the Partners and their owners.

SHI and PIC are C corporations. Federal and state income taxes are provided for these entities in accordance with the provisions of ASC 740. The provision for, or benefit from, income taxes is calculated using the asset and liability method, under which deferred tax assets and liabilities are recorded based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect the year in which differences are expected to reverse. Deferred tax assets are evaluated to determine whether a valuation allowance should be established based on its determination of whether it is more likely than not some or all of the deferred tax asset will not be realized. The ultimate realization of deferred tax assets depends primarily on generation of future taxable income during periods in which those temporary differences become deductible. Judgment is required in determining future tax consequences of events that have been recognized in the consolidated financial statements and/or tax returns. Differences between anticipated and actual outcomes of these future tax consequences could have a material impact on the consolidated financial position or results of operations.

New Accounting Pronouncements

New Accounting Pronouncements

In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs, (“ASU 2011-04”). ASU 2011-04 amends ASC 820, Fair Value Measurements (“ASC 820”), providing a consistent definition and measurement of fair value, as well as similar disclosure requirements between U.S. GAAP and International Financial Reporting Standards. ASU 2011-04 changes certain fair value measurement principles, clarifies application of existing fair value measurement and expands the ASC 820 disclosure requirements, particularly for Level 3 fair value measurements. The Company adopted ASU 2011-04 effective January 1, 2012, which did not have a material impact on its consolidated financial position or results of operations.

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Inventory (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Inventory Disclosure [Line Items]
Homes under construction	$ 122,581	$ 97,952
Lots available for construction	305,405	282,292
Land under development	96,225	144,070
Land held for future development	127,135	129,247
Land deposits and preacquisition costs	16,065	18,207
Total inventory	770,734	783,810
Model Homes
Inventory Disclosure [Line Items]
Inventory finished homes	75,005	82,339
Completed Homes for Sale
Inventory Disclosure [Line Items]
Inventory finished homes	$ 28,318	$ 29,703

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Investments - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011	Dec. 31, 2011 Debt Securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities realized gains	$ 0	$ 0.1
Unrealized gains (losses) on available-for-sale securities, before tax	2.2	(1.0)
Reclassification adjustment on available-for-sale securities, before tax		0.1
Unrealized gains (losses) on available-for-sale securities, tax	(0.8)	(0.4)
Securities in unrealized loss position	0
Securities in unrealized loss position for less than one year			10.9
Securities at fair value with no continous losses			$ 21.5

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Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012		Mar. 31, 2011
Revenues	$ 105,603		$ 74,059
Cost of sales	(85,035)		(63,446)
Gross margin	20,568		10,613
Selling expenses	(9,352)		(8,218)
General and administrative expenses	(8,251)		(8,223)
Equity in income (loss) from joint ventures, net	67		(393)
Equity in income (loss) from subsidiaries	0		0
Interest expense	(6,288)	[1]	(3,951)	[1]
Other income (expense), net	2,306		1,631
(Loss) income before income taxes	(950)		(8,541)
Income tax benefit (expense)	752		341
Net (loss) income	(198)		(8,200)
Less: Net income attributable to non-controlling interests	(213)		(89)
Net (loss) income attributable to SHLP	(411)		(8,289)
Comprehensive income (loss)	1,245		(7,520)
SHLP Corp
Revenues	67,786	[2]	60,787	[3]
Cost of sales	(54,206)	[2]	(52,522)	[3]
Gross margin	13,580	[2]	8,265	[3]
Selling expenses	(5,379)	[2]	(5,339)	[3]
General and administrative expenses	(5,604)	[2]	(6,195)	[3]
Equity in income (loss) from joint ventures, net	129	[2]	(202)	[3]
Equity in income (loss) from subsidiaries	3,751	[2]	(229)	[3]
Interest expense	(5,958)	[2]	(3,739)	[3]
Other income (expense), net	(926)	[2]	(847)	[3]
(Loss) income before income taxes	(407)	[2]	(8,286)	[3]
Income tax benefit (expense)	(4)	[2]	(3)	[3]
Net (loss) income	(411)	[2]	(8,289)	[3]
Less: Net income attributable to non-controlling interests	0	[2]	0	[3]
Net (loss) income attributable to SHLP	(411)	[2]	(8,289)	[3]
Comprehensive income (loss)	1,032	[2]	(7,609)	[3]
Guarantor Subsidiaries
Revenues	36,327		10,709
Cost of sales	(30,707)		(9,251)
Gross margin	5,620		1,458
Selling expenses	(2,992)		(1,595)
General and administrative expenses	(2,051)		(1,487)
Equity in income (loss) from joint ventures, net	(24)		(7)
Equity in income (loss) from subsidiaries	(853)		(732)
Interest expense	(326)		(212)
Other income (expense), net	1,845		1,678
(Loss) income before income taxes	1,219		(897)
Income tax benefit (expense)	752		354
Net (loss) income	1,971		(543)
Less: Net income attributable to non-controlling interests	0		0
Net (loss) income attributable to SHLP	1,971		(543)
Comprehensive income (loss)	3,414		137
Non-Guarantor Subsidiaries
Revenues	1,490		2,563
Cost of sales	(186)		(1,721)
Gross margin	1,304		842
Selling expenses	(981)		(1,284)
General and administrative expenses	(596)		(541)
Equity in income (loss) from joint ventures, net	(38)		(184)
Equity in income (loss) from subsidiaries	(1,277)		(707)
Interest expense	(4)		0
Other income (expense), net	1,451		848
(Loss) income before income taxes	(141)		(1,026)
Income tax benefit (expense)	4		(10)
Net (loss) income	(137)		(1,036)
Less: Net income attributable to non-controlling interests	(213)		(89)
Net (loss) income attributable to SHLP	(350)		(1,125)
Comprehensive income (loss)	(137)		(1,036)
Consolidation, Eliminations
Revenues	0		0
Cost of sales	64		48
Gross margin	64		48
Selling expenses	0		0
General and administrative expenses	0		0
Equity in income (loss) from joint ventures, net	0		0
Equity in income (loss) from subsidiaries	(1,621)		1,668
Interest expense	0		0
Other income (expense), net	(64)		(48)
(Loss) income before income taxes	(1,621)		1,668
Income tax benefit (expense)	0		0
Net (loss) income	(1,621)		1,668
Less: Net income attributable to non-controlling interests	0		0
Net (loss) income attributable to SHLP	(1,621)		1,668
Comprehensive income (loss)	$ (3,064)		$ 988

[1] For the three months ended March 31, 2012 and 2011, assets qualifying for interest capitalization did not exceed debt; therefore, non-qualifying interest was expensed.

[2] Includes Shea Homes Funding Corp.; no significant activity occurred in 2012.

[3] Shea Homes Funding Corp. was formed on April 26, 2011, therefore no amounts are included in any financial statement before this date.

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Basis of Presentation - Additional Information (Detail) (JFSCI)	Mar. 31, 2012
JFSCI
Business Acquisition [Line Items]
Ownership interest	96.00%

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Inventory - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Inventory Disclosure [Line Items]
Write-offs of deposits and preacquisition costs	$ 0.3	$ 0

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Equity - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Series B
Stockholders Equity Note [Line Items]
Interest rate determination	2.05%	2.05%
Preferred return percentage earned on unreturned preferred capital	1.20%	1.20%
Accumulated undistributed preferred returns	$ 19.4	$ 18.9
Series D
Stockholders Equity Note [Line Items]
Ownership interest	1.00%
Preferred return percentage earned on unreturned preferred capital	7.00%
Accumulated undistributed preferred returns	$ 43.3	$ 40.3
Limited Partner
Stockholders Equity Note [Line Items]
Ownership interest	78.38%
General Partner
Stockholders Equity Note [Line Items]
Ownership interest	20.62%

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Changes in Completed Operations (Detail) (USD $) In Thousands, unless otherwise specified				3 Months Ended
	Mar. 31, 2012	Dec. 31, 2011	Mar. 31, 2011	Mar. 31, 2012 Insured Operations	Mar. 31, 2011 Insured Operations	Mar. 31, 2012 Self Insured Operations	Mar. 31, 2011 Self Insured Operations
Completed Operations [Line Items]
Total completed operations	$ 103,980	$ 109,390	$ 116,939	$ 103,980	$ 116,939	$ 0	$ 0
Balance, beginning of the period	103,980	109,390	116,939	109,390	102,860	0	15,613
Reserves provided (relieved)				1,391	(1,344)	0	907
Insurance purchased				0	16,520	0	(16,520)
Claims paid				(6,801)	(1,097)
Balance, end of the period	$ 103,980	$ 109,390	$ 116,939	$ 103,980	$ 116,939	$ 0	$ 0

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Net Book Values of Estimated Fair Values of Notes Payable (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Senior Secured Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Net Book Value	$ 750,000	$ 750,000
Estimated Fair Value	772,500	697,500
Secured Promissory Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Net Book Value	1,374	2,056
Estimated Fair Value	$ 1,374	$ 2,056

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Investments

3 Months Ended

Mar. 31, 2012

Investments

4. Investments

Investments consist of available-for-sale securities and are measured at fair value, which is based on quoted market prices or cash flow models. Accordingly, unrealized gains and temporary losses on investments, net of tax, are reported as accumulated other comprehensive income (loss). Realized gains and losses are determined using the specific identification method.

At March 31, 2012 and December 31, 2011, investments were as follows:

	March 31, 2012
	Cost / Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Debt securities:
Corporate obligations	$	20,520	$	260	$	0	$	20,780
Mortgage/asset-backed securities		69		9		0		78
Private debt obligations (a)		1,726		11,780		0		13,506
Total debt securities		22,315		12,049		0		34,364
Equity securities		4		6		0		10
Total investments	$	22,319	$	12,055	$	0	$	34,374

	December 31, 2011
	Cost / Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Debt securities:
Corporate obligations	$	20,747	$	158	$	(39	)	$	20,866
Mortgage/asset-backed securities		101		10		0			111
Private debt obligations (a)		1,742		9,700		(2	)		11,440
Total debt securities		22,590		9,868		(41	)		32,417
Equity securities		4		7		0			11
Total investments	$	22,594	$	9,875	$	(41	)	$	32,428

(a) Through December 31, 2009, certain private debt obligations experienced other-than-temporary losses and $13.2 million of impairments were recorded. Unrealized gains of private debt obligations are stated as the difference between their fair value and cost basis, net of impairment.

For the three months ended March 31, 2012 and 2011, realized gains on available-for-sale securities were zero and $0.1 million, respectively, which were included in other income, net.

For the three months ended March 31, 2012, included in accumulated other comprehensive income (loss) were $2.2 million of unrealized gains and $(0.8) million of tax expense. For the three months ended March 31, 2011, included in accumulated other comprehensive income (loss) were $1.0 million of unrealized losses, reclassification adjustments for $0.1 million of realized gains and $(0.4) million of tax expense.

At March 31, 2012, the contractual maturities of debt securities classified as available-for-sale were as follows:

	March 31, 2012
	Cost		Fair Value
	(In thousands)
Due in one year or less	$	20,100	$	20,325
Due after one year through five years		438		524
Due after five years through ten years		920		5,895
Due after ten years		788		7,542
Mortgage/asset-backed securities		69		78
Total	$	22,315	$	34,364

Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without penalty.

At March 31, 2012, there were no securities in an unrealized loss position. At December 31, 2011, there were debt securities with a $10.9 million fair value and nominal unrealized losses that were in a continuous unrealized loss position for less than one year, and debt securities with a $21.5 million fair value with no continuous losses. We evaluated investments with unrealized losses to determine if they experienced an other-than-temporary impairment. This evaluation was based on various factors, including length of time securities were in a loss position, ability and intent to hold investments until temporary losses were recovered or mature, investee’s industry and amount of the unrealized loss. Based on these factors, unrealized losses at December 31, 2011 were not deemed as an other-than-temporary impairment.

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Other Liabilities - Additional Information (Detail) (USD $)	3 Months Ended		12 Months Ended			3 Months Ended					3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011	Dec. 31, 2011	Mar. 31, 2012 Remaining Amount	Dec. 31, 2011 Remaining Amount	Mar. 31, 2012 JFSCI	Mar. 31, 2011 JFSCI	Sep. 30, 2009 JFSCI	Mar. 31, 2012 JFSCI Remaining Amount	Mar. 31, 2011 JFSCI Remaining Amount	Mar. 31, 2012 PIC	Mar. 31, 2011 PIC	Mar. 31, 2012 PIC Remaining Amount	Mar. 31, 2011 PIC Remaining Amount
Other Liabilities [Line Items]
Insurance receivables	$ 103,980,000		$ 109,390,000
Percentage of uncovered losses related to completed operations	12.50%
Deferred revenue on completed operation claims								19,200,000	15,000,000	15,600,000	15,600,000		900,000	1,100,000
Deferral recognized as income						600,000	100,000				200,000	100,000
Distribution payable to non-controlling interest	3,164,000		3,344,000	3,200,000	3,300,000
Distribution to non-controlling interest	$ 344,000	$ 90,000	$ 100,000

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Contractual Maturities of Debt Securities Classified as Available-for-Sale (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]
Cost	$ 22,319	$ 22,594
Debt Securities
Schedule of Available-for-sale Securities [Line Items]
Cost	22,315	22,590
Fair Value	34,364
Debt Securities | Due In One Year Or Less
Schedule of Available-for-sale Securities [Line Items]
Cost	20,100
Fair Value	20,325
Debt Securities | Due After One Year Through Five Years
Schedule of Available-for-sale Securities [Line Items]
Cost	438
Fair Value	524
Debt Securities | Due After Five Years Through Ten Years
Schedule of Available-for-sale Securities [Line Items]
Cost	920
Fair Value	5,895
Debt Securities | Due After Ten Years
Schedule of Available-for-sale Securities [Line Items]
Cost	788
Fair Value	7,542
Debt Securities | Mortgage and Asset Backed Securities
Schedule of Available-for-sale Securities [Line Items]
Cost	69
Fair Value	$ 78

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Inventory (Tables)

3 Months Ended

Mar. 31, 2012

Summary of Inventory

At March 31, 2012 and December 31, 2011, inventory was as follows:

	March 31, 2012		December 31, 2011
	(In thousands)
Model homes	$	75,005	$	82,339
Completed homes for sale		28,318		29,703
Homes under construction		122,581		97,952
Lots available for construction		305,405		282,292
Land under development		96,225		144,070
Land held for future development		127,135		129,247
Land deposits and preacquisition costs		16,065		18,207
Total inventory	$	770,734	$	783,810

Inventory Impairment

For the three months ended March 31, 2012 and 2011, inventory impairment was as follows:

	Three Months Ended March 21,
	2012		2011
	(Dollars in thousands)
Inventory impairment	$	0	$	618
Remaining carrying value of inventory impaired at end of period	$	0	$	1,113
Projects impaired		0		1
Projects evaluated for impairment (a)		140		148

(a) Large land parcels not subdivided into communities are counted as one project. Once parcels are subdivided, the project count will increase accordingly.

Interest Incurred, Capitalized and Expensed

For the three months ended March 31, 2012 and 2011, interest incurred, capitalized and expensed was as follows:

	Three Months Ended March 31,
	2012			2011
	(In thousands)
Interest incurred	$	16,661		$	19,662
Interest expensed (a)	$	6,288		$	3,951
Interest capitalized as a cost of inventory	$	10,195		$	15,271
Interest previously capitalized as a cost of inventory, included in cost of sales	$	(7,784	)	$	(5,808	)
Capitalized interest in ending inventory (b)	$	113,847		$	115,414
Interest capitalized as a cost of investments in joint ventures	$	177		$	440
Interest previously capitalized as a cost of investments in joint ventures, included in equity in income (loss) from joint ventures	$	(177	)	$	(243	)
Capitalized interest in ending investments in joint ventures	$	0		$	1,143

(a) For the three months ended March 31, 2012 and 2011, assets qualifying for interest capitalization did not exceed debt; therefore, non-qualifying interest was expensed.

(b) Inventory impairment charges were recorded against total inventory of the respective community. Capitalized interest reflects the gross amount of capitalized interest as impairment charges recognized were generally not allocated to specific components of inventory.

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Accounts and Other Receivables, net (Tables)

3 Months Ended

Mar. 31, 2012

Accounts and Other Receivables

At March 31, 2012 and December 31, 2011, accounts and other receivables, net were as follows:

	March 31, 2012			December 31, 2011
	(In thousands)
Insurance receivables	$	103,980			$109,390
Escrow receivables		1,842			5,815
Notes receivable		4,001			3,566
Other receivables		5,460			4,937
Reserve		(3,016	)		(3,019	)
Total accounts and other receivables, net	$	112,267			$120,689

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Other Assets (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Other Assets [Line Items]
Income tax receivables	$ 5,003	$ 7,473
Prepaid professional fees	3,832	3,695
Prepaid loan fees	7,475	7,738
Prepaid bank fees	540	657
Deposits in lieu of bonds and letters of credit	8,495	6,439
Prepaid insurance	1,865	1,970
Other	991	1,048
Total other assets, net	$ 28,201	$ 29,020

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Financial Instruments Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, USD $)	Mar. 31, 2012	Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available-for-sale securities, debt securities	$ 34,364,000	$ 32,417,000
Available-for-sale securities, equity securities	10,000	11,000
Fair value of asset	34,374,000	32,428,000
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available-for-sale securities, debt securities	17,243,000	17,186,000
Available-for-sale securities, equity securities	0	0
Fair value of asset	17,243,000	17,186,000
Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available-for-sale securities, debt securities	4,540,000	4,727,000
Available-for-sale securities, equity securities	10,000	11,000
Fair value of asset	4,550,000	4,738,000
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available-for-sale securities, debt securities	12,581,000	10,504,000
Available-for-sale securities, equity securities	0	0
Fair value of asset	$ 12,581,000	$ 10,504,000

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Other Assets, Net (Tables)

3 Months Ended

Mar. 31, 2012

Other Assets

At March 31, 2012 and December 31, 2011, other assets were as follows:

	March 31, 2012		December 31, 2011
	(In thousands)
Income tax receivables	$	5,003	$	7,473
Prepaid professional fees		3,832		3,695
Prepaid loan fees		7,475		7,738
Prepaid bank fees		540		657
Deposits in lieu of bonds and letters of credit		8,495		6,439
Prepaid insurance		1,865		1,970
Other		991		1,048
Total other assets, net	$	28,201	$	29,020

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Notes Payable (Tables)

3 Months Ended

Mar. 31, 2012

Summary of Notes Payable

At March 31, 2012 and December 31, 2011, notes payable were as follows:

	March 31, 2012		December 31, 2011
	(In thousands)
$750,000 senior secured notes, due May 2019 at 8.625%	$	750,000	$	750,000
Promissory notes, interest ranging 1% to 6%, maturing through 2014, secured by deeds of trust on inventory		1,374		2,056
Total notes payable	$	751,374	$	752,056

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Restricted Cash

3 Months Ended

Mar. 31, 2012

Restricted Cash

3. Restricted Cash

Restricted cash related to homebuilding operations included cash used as collateral for potential obligations paid by the Company’s bank, customer deposits temporarily restricted in accordance with regulatory requirements, and cash used in lieu of bonds. At March 31, 2012 and December 31, 2011, restricted cash related to homebuilding operations was $13.5 million and $13.3 million, respectively.

Restricted cash of PIC included cash held in escrow by PIC’s claim administrators. At March 31, 2012 and December 31, 2011, restricted cash of PIC was $0.4 million and $0.4 million, respectively.

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Other Liabilities (Tables)

3 Months Ended

Mar. 31, 2012

Summary of Other Liabilities

At March 31, 2012 and December 31, 2011, other liabilities were as follows:

	March 31, 2012		December 31, 2011
	(In thousands)
Completed operations	$	103,980	$	109,390
Warranty reserves		16,660		17,358
Deferred revenue		18,846		20,329
Provisions for closed homes/communities		11,281		13,156
Deposits		11,592		7,766
Legal reserves		6,980		5,824
Accrued interest		24,258		8,122
Accrued compensation and benefits		2,880		2,109
Distributions payable		3,164		3,344
Deficit Distributions (see Note 8)		903		928
Other		10,614		11,325
Total other liabilities	$	211,158	$	199,651

Changes in Completed Operations

For the three months ended March 31, 2012 and 2011, changes in completed operations were as follows:

	Three Months Ended March 31,
	2012			2011
	(In thousands)
Insured completed operations
Balance, beginning of the period	$	109,390		$	102,860
Reserves provided (relieved)		1,391			(1,344	)
Insurance purchased		0			16,520
Claims paid		(6,801	)		(1,097	)
Balance, end of the period		103,980			116,939
Self-insured completed operations
Balance, beginning of the period		0			15,613
Reserves provided		0			907
Insurance purchased		0			(16,520	)
Balance, end of the period		0			0
Total completed operations	$	103,980		$	116,939

Changes in Warranty Liabilities

For the three months ended March 31, 2012 and 2011, changes in warranty liability were as follows:

	Three Months Ended March 31,
	2012			2011
	(In thousands)
Balance, beginning of the period	$	17,358		$	16,238
Provision for warranties		1,475			1,037
Warranty costs paid		(2,173	)		(2,172	)
Balance, end of the period	$	16,660		$	15,103

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Summary of Investments (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012		Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]
Cost / Amortized Cost	$ 22,319		$ 22,594
Gross Unrealized Gains	12,055		9,875
Gross Unrealized Losses	0		(41)
Fair Value	34,374		32,428
Debt Securities
Schedule of Available-for-sale Securities [Line Items]
Cost / Amortized Cost	22,315		22,590
Gross Unrealized Gains	12,049		9,868
Gross Unrealized Losses	0		(41)
Fair Value	34,364		32,417
Debt Securities | Corporate Debt Obligations
Schedule of Available-for-sale Securities [Line Items]
Cost / Amortized Cost	20,520		20,747
Gross Unrealized Gains	260		158
Gross Unrealized Losses	0		(39)
Fair Value	20,780		20,866
Debt Securities | Mortgage and Asset Backed Securities
Schedule of Available-for-sale Securities [Line Items]
Cost / Amortized Cost	69		101
Gross Unrealized Gains	9		10
Gross Unrealized Losses	0		0
Fair Value	78		111
Debt Securities | Private Debt Obligations
Schedule of Available-for-sale Securities [Line Items]
Cost / Amortized Cost	1,726	[1]	1,742	[1]
Gross Unrealized Gains	11,780	[1]	9,700	[1]
Gross Unrealized Losses	0	[1]	(2)	[1]
Fair Value	13,506	[1]	11,440	[1]
Equity Securities
Schedule of Available-for-sale Securities [Line Items]
Cost / Amortized Cost	4		4
Gross Unrealized Gains	6		7
Gross Unrealized Losses	0		0
Fair Value	$ 10		$ 11

[1] Through December 31, 2009, certain private debt obligations experienced other-than-temporary losses and $13.2 million of impairments were recorded. Unrealized gains of private debt obligations are stated as the difference between their fair value and cost basis, net of impairment.

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Interest Incurred, Capitalized and Expensed (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012		Mar. 31, 2011
Capitalized Interest [Line Items]
Interest incurred	$ 16,661		$ 19,662
Interest expensed	6,288	[1]	3,951	[1]
Interest capitalized as a cost of inventory	10,195		15,271
Interest previously capitalized as a cost of inventory, included in cost of sales	(7,784)		(5,808)
Capitalized interest in ending inventory	113,847	[2]	115,414	[2]
Joint Ventures
Capitalized Interest [Line Items]
Interest capitalized as a cost of investments in joint ventures	177		440
Interest previously capitalized as a cost of investments in joint ventures, included in equity in income (loss) from joint ventures	(177)		(243)
Capitalized interest in ending investments in joint ventures	$ 0		$ 1,143

[1] For the three months ended March 31, 2012 and 2011, assets qualifying for interest capitalization did not exceed debt; therefore, non-qualifying interest was expensed.

[2] Inventory impairment charges were recorded against total inventory of the respective community. Capitalized interest reflects the gross amount of capitalized interest as impairment charges recognized were generally not allocated to specific components of inventory.

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Financial Information for Reportable Segments - Revenues (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Segment Reporting Disclosure [Line Items]
Revenues	$ 105,603	$ 74,059
Corporate
Segment Reporting Disclosure [Line Items]
Revenues	243	257
Homebuilding
Segment Reporting Disclosure [Line Items]
Revenues	105,360	73,802
Homebuilding | Southern California
Segment Reporting Disclosure [Line Items]
Revenues	26,379	19,773
Homebuilding | San Diego
Segment Reporting Disclosure [Line Items]
Revenues	14,107	5,761
Homebuilding | Northern California
Segment Reporting Disclosure [Line Items]
Revenues	25,960	15,855
Homebuilding | Mountain West
Segment Reporting Disclosure [Line Items]
Revenues	18,594	13,154
Homebuilding | South West
Segment Reporting Disclosure [Line Items]
Revenues	19,515	18,168
Homebuilding | Other Areas
Segment Reporting Disclosure [Line Items]
Revenues	$ 805	$ 1,091

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Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Assets
Cash and cash equivalents	$ 278,338	$ 268,366
Restricted cash	13,886	13,718
Investments	34,374	32,428
Accounts and other receivables, net	112,267	120,689
Receivables from related parties, net	35,337	60,223
Inventory	770,734	783,810
Investments in joint ventures	17,558	17,870
Property and equipment, net	2,005	1,992
Other assets, net	28,201	29,020
Total assets	1,292,700	1,328,116
Liabilities:
Notes payable	751,374	752,056
Payables to related parties	3,332	2,343
Accounts payable	36,005	46,063
Other liabilities	211,158	199,651
Total liabilities	1,001,869	1,000,113
SHLP equity:
Owners' equity	282,520	294,511
Accumulated other comprehensive income	7,835	6,392
Total SHLP equity	290,355	300,903
Non-controlling interests	476	27,100
Total equity	290,831	328,003
Total liabilities and equity	$ 1,292,700	$ 1,328,116

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Unobservable Inputs Used in Valuation of Level 3 Financial Instruments (Detail) (Fair Value, Inputs, Level 3, Private Debt Obligations, USD $)	3 Months Ended
	Mar. 31, 2012
Group One
Financial Instruments [Line Items]
Fair Value	$ 12,581
Valuation Technique	Discounted cash flow
Unobservable Input	Constant prepayment rate
Range	15.00%
Weighted Average	15.00%
Group Two
Financial Instruments [Line Items]
Fair Value	12,581
Valuation Technique	Discounted cash flow
Unobservable Input	Probility of default
Range	2.00%
Weighted Average	2.00%
Group Three | Minimum
Financial Instruments [Line Items]
Fair Value	12,581
Valuation Technique	Discounted cash flow
Unobservable Input	Recovery rate
Range	50.00%
Weighted Average	66.00%
Group Three | Maximum
Financial Instruments [Line Items]
Fair Value	$ 12,581
Valuation Technique	Discounted cash flow
Unobservable Input	Recovery rate
Range	70.00%
Weighted Average	66.00%

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Basis of Presentation

3 Months Ended

Mar. 31, 2012

Basis of Presentation

1. Basis of Presentation

The accompanying unaudited, consolidated financial statements include the accounts of Shea Homes Limited Partnership (“SHLP”) and its wholly-owned subsidiaries, including Shea Homes, Inc. (“SHI”) and its wholly-owned subsidiaries. The Company consolidates all joint ventures in which it has a controlling interest or other ventures in which it is the primary beneficiary of a variable interest entity (“VIE”). Material intercompany accounts and transactions are eliminated. The consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these consolidated financial statements do not include all information and notes required by GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements and accompanying notes for the year ended December 31, 2011, which are contained in the Company’s prospectus filed with the Securities and Exchange Commission (“SEC”) on April 6, 2012 (the “Prospectus”) pursuant to Rule 424(b) under the Securities Act of 1933, as amended (the “Securities Act”). Adjustments, consisting of normal, recurring accruals, loss reserves and deferred tax asset valuation allowance adjustments, considered necessary for a fair presentation, are included.

Effective January 1, 2012, the Company adopted Accounting Standards Update (“ASU”) 2011-05, Presentation of Comprehensive Income (“ASU 2011-05”). ASU 2011-05 requires the presentation of comprehensive income in either (1) a continuous statement of operations and comprehensive income or (2) two separate but consecutive statements. In accordance with ASU 2011-05, the 2011 financial statements have been restated to conform to the current year presentation of comprehensive income (loss).

Unless the context otherwise requires, the terms “we”, “us”, “our” and “the Company” refer to SHLP and its subsidiaries.

Organization

SHLP, a California limited partnership, was formed January 4, 1989, pursuant to an agreement of partnership (the “Agreement”), as most recently amended January 1, 2009, by and between J.F. Shea, LP, a Delaware limited partnership, as general partner, and the Company’s limited partners who are comprised of entities and trusts, including J.F. Shea Co., Inc. (“JFSCI”), that are under the common control of Shea family members (collectively, the “Partners”). J.F. Shea, LP is 96% owned by JFSCI.

Nature of Operations

Our principal business purpose is homebuilding, which includes acquiring and developing land and constructing and selling residential homes thereon. Our principal markets are California, Arizona, Colorado, Washington, Nevada and Florida.

We own a captive insurance company, Partners Insurance Company, Inc. (“PIC”), which provided warranty, general liability, workers’ compensation and completed operations insurance for related companies and third-party subcontractors. Effective for the policy years commencing in 2007, PIC ceased issuing policies for these coverages. Thereafter, our warranty coverage became self-insured, and the general liability, workers’ compensation and completed operations coverages (through July 31, 2009) were insured by an affiliate insurance carrier for primary coverage and by third-party insurance carriers for excess coverage. In February 2011, we purchased completed operations insurance from affiliate insurance carriers, retroactive to August 1, 2009.

Seasonality

Historically, the homebuilding industry experiences seasonal fluctuations. We typically experience the highest new home sales order activity in spring and summer, although this activity is also highly dependent on the number of active selling communities, timing of new community openings and other market factors. Since it typically takes three to eight months to construct a new home, we deliver more homes in the second half of the year as spring and summer home sales orders convert to home deliveries. Because of this seasonality, home starts, construction costs and related cash outflows have historically been highest from April to October, and the majority of cash receipts from home closings occur during the second half of the year. Therefore, operating results for the three months ended March 31, 2012 are not necessarily indicative of results expected for the year ended December 31, 2012.

Further, in contrast to this historical seasonal pattern, weakness in homebuilding market conditions since 2006 has distorted our results. Although we may experience our seasonal pattern in the future, given current market conditions, we make no assurances as to when or whether this pattern will recur.

Use of Estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ significantly from those estimates.

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Notes Payable - Additional Information (Detail) (USD $)	1 Months Ended	3 Months Ended
	May 10, 2011	Mar. 31, 2012	Dec. 31, 2011
Debt Instrument [Line Items]
Accrued interest		$ 24,258,000	$ 8,122,000
Senior Secured Notes 8.625 Percent Due May 2019
Debt Instrument [Line Items]
Principal amount of debt issued	750,000,000
Maturity date		May 15, 2019
Accrued interest		24,300,000	8,100,000
Senior Secured Notes 8.625 Percent Due May 2019 | Semi Annual Payment, First Payment
Debt Instrument [Line Items]
Interest payment date		November 15
Senior Secured Notes 8.625 Percent Due May 2019 | Semi Annual Payment, Second Payment
Debt Instrument [Line Items]
Interest payment date		May 15
Secured Debt
Debt Instrument [Line Items]
Principal payment on debt	779,600,000
Interest payment on debt	2,500,000
Gain (loss) on extinquishment of debt	$ (88,400,000)

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2012

Financial Information Related to Reportable Segments

Financial information relating to reportable segments was as follows:

	March 31, 2012		December 31, 2011
	(In thousands)
Total assets:
Southern California	$	184,294	$	176,999
San Diego		121,314		127,438
Northern California		216,664		219,734
Mountain West		301,987		351,050
South West		109,408		105,621
Other		5,518		4,313
Total homebuilding assets		939,185		985,155
Corporate		353,515		342,961
Total assets	$	1,292,700	$	1,328,116

	March 31, 2012		December 31, 2011
	(In thousands)
Inventory:
Southern California	$	145,072	$	142,877
San Diego		103,558		105,595
Northern California		201,035		204,901
Mountain West		243,075		256,685
South West		74,477		71,289
Other		3,517		2,463
Total homebuilding inventory		770,734		783,810
Corporate		0		0
Total inventory	$	770,734	$	783,810

	Three Months Ended March 31,
	2012		2011
	(In thousands)
Revenues:
Southern California	$	26,379	$	19,773
San Diego		14,107		5,761
Northern California		25,960		15,855
Mountain West		18,594		13,154
South West		19,515		18,168
Other		805		1,091
Total homebuilding revenues		105,360		73,802
Corporate		243		257
Total revenues	$	105,603	$	74,059

	Three Months Ended March 31,
	2012			2011
	(In thousands)
(Loss) income before income taxes:
Southern California	$	1,974		$	(2,325	)
San Diego		1			(1,299	)
Northern California		817			(1,729	)
Mountain West		(3,367	)		(1,780	)
South West		(1,657	)		(2,034	)
Other		(249	)		(254	)
Total homebuilding loss before income taxes		(2,481	)		(9,421	)
Corporate		1,531			880
Total loss before income taxes	$	(950	)	$	(8,541	)

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Related Party Transactions - Additional Information (Detail) (USD $)	3 Months Ended			3 Months Ended								3 Months Ended							1 Months Ended				3 Months Ended			3 Months Ended			3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011	Dec. 31, 2011	Mar. 31, 2012 Related Party Receivables and Payables	Dec. 31, 2011 Related Party Receivables and Payables	Mar. 31, 2012 Related Party Receivables and Payables Minimum	Dec. 31, 2011 Related Party Receivables and Payables Minimum	Mar. 31, 2012 Related Party Receivables and Payables Maximum	Dec. 31, 2011 Related Party Receivables and Payables Maximum	Mar. 31, 2012 Related Party Receivables and Payables Other	Dec. 31, 2011 Related Party Receivables and Payables Other	Mar. 31, 2012 General and Administrative Related Party Transactions	Mar. 31, 2011 General and Administrative Related Party Transactions	Mar. 31, 2012 General and Administrative Related Party Transactions Noncancelable Operating Lease Agreements	Mar. 31, 2012 General and Administrative Related Party Transactions Noncancelable Operating Lease Agreements Minimum	Mar. 31, 2012 General and Administrative Related Party Transactions Noncancelable Operating Lease Agreements Maximum	Mar. 31, 2012 Real Property and Joint Ventures Transactions	Mar. 31, 2012 JFSCI	Aug. 31, 2011 JFSCI Related Party Receivables and Payables	May 31, 2011 JFSCI Related Party Receivables and Payables	Mar. 31, 2012 JFSCI Related Party Receivables and Payables	Dec. 31, 2011 JFSCI Related Party Receivables and Payables	Mar. 31, 2012 JFSCI General and Administrative Related Party Transactions	Mar. 31, 2011 JFSCI General and Administrative Related Party Transactions	Mar. 31, 2012 Unconsolidated Joint Ventures Maximum	Mar. 31, 2012 Unconsolidated Joint Ventures Related Party Receivables and Payables	Dec. 31, 2011 Unconsolidated Joint Ventures Related Party Receivables and Payables	Dec. 31, 2011 SCLLC Related Party Receivables and Payables	Mar. 31, 2012 SCLLC Real Property and Joint Ventures Transactions	Mar. 31, 2012 SHLP Real Property and Joint Ventures Transactions	Mar. 31, 2012 Joint Ventures Real Property and Joint Ventures Transactions	Mar. 31, 2011 Joint Ventures Real Property and Joint Ventures Transactions
Related Party Transaction [Line Items]
Bearing interest from notes receivable						2.50%	2.50%	4.20%	4.20%											4.00%						8.00%
Proceeds from notes receivable																				$ 75,000,000
Contribution of assets through secured note																				41,500,000
Convertible notes receivable																				38,900,000
Receivable maturity date																				May 15, 2019
Prepayment on notes																			14,300,000
Notes receivable	20,749,000		21,013,000	1,300,000	900,000					8,000,000	8,300,000										25,600,000	25,400,000				400,000	25,600,000	25,200,000
Notes receivable, maturity year																										2020
Internal rate of return																										17.50%
Reserves for notes receivable from other related parties	12,715,000		12,697,000	12,715,000	12,715,000
Notes receivable, maturity periods				November 2012 through April 2021
Payables to related parties	3,332,000		2,343,000	3,332,000	2,343,000
Ownership interest																		96.00%							50.00%					58.00%
Estimated fair value of the assets received																														30,800,000
Distributed assets and liabilities																														24,000,000
Cash from distribution																														2,200,000
Secured notes receivable	4,001,000		3,566,000																											3,000,000
Inventory																														20,000,000
Other liabilities	211,158,000		199,651,000																											1,200,000
Reduction in assets																													41,800,000
Reduction in liabilities																													2,000,000
Reduction in equity																														(11,600,000)
Reduction in equity of non-controlling interest																	(28,200,000)
General and administrative expense	8,251,000	8,223,000																					4,000,000	4,000,000							1,000,000	900,000
Management fees																															100,000	300,000
Lease terms															5 years	10 years
Lease renewal term														5 years
Related party rental expense												$ 200,000	$ 200,000

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Supplemental Disclosure to Consolidated Statements of Cash Flows

3 Months Ended

Mar. 31, 2012

Supplemental Disclosure to Consolidated Statements of Cash Flows

17. Supplemental Disclosure to Consolidated Statements of Cash Flows

Supplemental disclosures to the consolidated statements of cash flows were as follows:

	Three Months Ended March 31,
	2012			2011
	(In thousands)
Supplemental disclosure of cash flow information
Income taxes (refunded) paid	$	(2,445	)	$	26
Interest paid, net of amounts capitalized	$	14		$	3,989
Supplemental disclosure of non-cash activities
Unrealized gain on available-for-sale investments, net	$	1,443		$	680
Reclassification of Deficit Distributions from unconsolidated joint ventures to other liabilities	$	(25	)	$	31
Purchase of land in exchange for note payable	$	319		$	402
Elimination of joint venture inventory, receivables from related parties and other assets	$	(41,600	)	$	0
Elimination of joint venture note payable and other liabilities	$	(1,949	)	$	0
Redemption of Company’s interest in consolidated joint venture and elimination of non-controlling interest, less cash retained by non-controlling interest	$	(39,651	)	$	0

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Supplemental Guarantor Information (Tables)

3 Months Ended

Mar. 31, 2012

Condensed Consolidating Balance Sheet

Presented herein are the condensed consolidated financial statements for the guarantor subsidiaries and non-guarantor subsidiaries.

Condensed Consolidating Balance Sheet

March 31, 2012

	SHLP Corp (a)		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Total
	(In thousands)
Assets
Cash and cash equivalents	$	167,638	$	97,046		$	13,654	$	0		$	278,338
Restricted cash		11,889		1,549			448		0			13,886
Investments		0		34,374			0		0			34,374
Accounts and other receivables, net		85,986		25,741			30,995		(30,455	)		112,267
Receivables from related parties, net		9,269		26,046			22		0			35,337
Inventory		598,206		172,265			1,410		(1,147	)		770,734
Investments in joint ventures		4,022		1,269			12,267		0			17,558
Investments in subsidiaries		667,337		84,309			97,256		(848,902	)		0
Property and equipment, net		376		1,629			0		0			2,005
Other assets, net		18,747		9,417			37		0			28,201
Total assets	$	1,563,470	$	453,645		$	156,089	$	(880,504	)	$	1,292,700
Liabilities and equity
Liabilities:
Notes payable	$	751,374	$	0		$	0	$	0		$	751,374
Payables to related parties		20		0			0		3,312			3,332
Accounts payable		24,539		11,178			329		(41	)		36,005
Other liabilities		152,811		40,201			50,512		(32,366	)		211,158
Intercompany		344,371		(364,155	)		22,291		(2,507	)		0
Total liabilities		1,273,115		(312,776	)		73,132		(31,602	)		1,001,869
Equity:
SHLP equity:
Owners’ equity		282,520		758,586			82,481		(841,067	)		282,520
Accumulated other comprehensive income		7,835		7,835			0		(7,835	)		7,835
Total SHLP equity		290,355		766,421			82,481		(848,902	)		290,355
Non-controlling interests		0		0			476		0			476
Total equity		290,355		766,421			82,957		(848,902	)		290,831
Total liabilities and equity	$	1,563,470	$	453,645		$	156,089	$	(880,504	)	$	1,292,700

(a) Includes Shea Homes Funding Corp., whose financial position at March 31, 2012 was not material.

Condensed Consolidating Balance Sheet

December 31, 2011

	SHLP Corp (b)		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Total
	(In thousands)
Assets
Cash and cash equivalents	$	157,511	$	96,100		$	14,755	$	0		$	268,366
Restricted cash		11,747		1,538			433		0			13,718
Investments		0		32,428			0		0			32,428
Accounts and other receivables, net		94,949		22,208			39,520		(35,988	)		120,689
Receivables from related parties, net		8,147		26,753			25,323		0			60,223
Inventory		574,832		173,333			36,857		(1,212	)		783,810
Investments in joint ventures		4,141		1,265			12,464		0			17,870
Investments in subsidiaries		698,886		85,118			98,555		(882,559	)		0
Property and equipment, net		380		1,612			0		0			1,992
Other assets, net		18,851		10,057			112		0			29,020
Total assets	$	1,569,444	$	450,412		$	228,019	$	(919,759	)	$	1,328,116
Liabilities and equity
Liabilities:
Notes payable	$	751,457	$	0		$	599	$	0		$	752,056
Payables to related parties		0		0			1		2,342			2,343
Accounts payable		30,781		15,453			377		(548	)		46,063
Other liabilities		140,992		36,954			58,931		(37,226	)		199,651
Intercompany		345,311		(365,259	)		21,714		(1,766	)		0
Total liabilities		1,268,541		(312,852	)		81,622		(37,198	)		1,000,113
Equity:
SHLP equity:
Owners’ equity		294,511		756,872			119,297		(876,169	)		294,511
Accumulated other comprehensive income		6,392		6,392			0		(6,392	)		6,392
Total SHLP equity		300,903		763,264			119,297		(882,561	)		300,903
Non-controlling interests		0		0			27,100		0			27,100
Total equity		300,903		763,264			146,397		(882,561	)		328,003
Total liabilities and equity	$	1,569,444	$	450,412		$	228,019	$	(919,759	)	$	1,328,116

(b) Includes Shea Homes Funding Corp., whose financial position at December 31, 2011 was not material.

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

Three Months Ended March 31, 2012

	SHLP Corp (a)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In thousands)
Revenues	$	67,786		$	36,327		$	1,490		$	0		$	105,603
Cost of sales		(54,206	)		(30,707	)		(186	)		64			(85,035	)
Gross margin		13,580			5,620			1,304			64			20,568
Selling expenses		(5,379	)		(2,992	)		(981	)		0			(9,352	)
General and administrative expenses		(5,604	)		(2,051	)		(596	)		0			(8,251	)
Equity in income (loss) from joint ventures, net		129			(24	)		(38	)		0			67
Equity in income (loss) from subsidiaries		3,751			(853	)		(1,277	)		(1,621	)		0
Interest expense		(5,958	)		(326	)		(4	)		0			(6,288	)
Other income (expense), net		(926	)		1,845			1,451			(64	)		2,306
(Loss) income before income taxes		(407	)		1,219			(141	)		(1,621	)		(950	)
Income tax benefit (expense)		(4	)		752			4			0			752
Net (loss) income		(411	)		1,971			(137	)		(1,621	)		(198	)
Less: Net income attributable to non-controlling interests		0			0			(213	)		0			(213	)
Net (loss) income attributable to SHLP	$	(411	)	$	1,971		$	(350	)	$	(1,621	)	$	(411	)
Comprehensive income (loss)	$	1,032		$	3,414		$	(137	)	$	(3,064	)	$	1,245

(a) Includes Shea Homes Funding Corp., no significant activity occurred in 2012.

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

Three Months Ended March 31, 2011

	SHLP Corp (b)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In thousands)
Revenues	$	60,787		$	10,709		$	2,563		$	0		$	74,059
Cost of sales		(52,522	)		(9,251	)		(1,721	)		48			(63,446	)
Gross margin		8,265			1,458			842			48			10,613
Selling expenses		(5,339	)		(1,595	)		(1,284	)		0			(8,218	)
General and administrative expenses		(6,195	)		(1,487	)		(541	)		0			(8,223	)
Equity in loss from joint ventures		(202	)		(7	)		(184	)		0			(393	)
Equity in loss from subsidiaries		(229	)		(732	)		(707	)		1,668			0
Interest expense		(3,739	)		(212	)		0			0			(3,951	)
Other income (expense), net		(847	)		1,678			848			(48	)		1,631
Loss before income taxes		(8,286	)		(897	)		(1,026	)		1,668			(8,541	)
Income tax benefit (expense)		(3	)		354			(10	)		0			341
Net loss		(8,289	)		(543	)		(1,036	)		1,668			(8,200	)
Less: Net income attributable to non-controlling interests		0			0			(89	)		0			(89	)
Net loss attributable to SHLP	$	(8,289	)	$	(543	)	$	(1,125	)	$	1,668		$	(8,289	)
Comprehensive (loss) income	$	(7,609	)	$	137		$	(1,036	)	$	988		$	(7,520	)

(b) Shea Homes Funding Corp. was formed on April 26, 2011, therefore no amounts are included in any financial statement before this date.

Condensed Consolidated Cash Flows

Condensed Consolidating Statement of Cash Flows

Three Months Ended March 31, 2012

	SHLP Corp (a)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In thousands)
Operating activities
Net cash provided by (used in) operating activities	$	(13,830	)	$	268		$	22,583		$	739		$	9,760
Investing activities
Net (increase) decrease in promissory notes from related parties		282			(247	)		(143	)		0			(108	)
Other investing activities		(146	)		122			(289	)		0			(313	)
Net cash (used in) provided by investing activities		136			(125	)		(432	)		0			(421	)
Financing activities
Principal payments to financial institutions and others		(402	)		0			(199	)		0			(601	)
Intercompany		24,223			803			(24,287	)		(739	)		0
Other financing activities		0			0			1,234			0			1,234
Net cash provided by (used in) financing activities		23,821			803			(23,252	)		(739	)		633
Net increase (decrease) in cash and cash equivalents		10,127			946			(1,101	)		0			9,972
Cash and cash equivalents at beginning of period		157,511			96,100			14,755			0			268,366
Cash and cash equivalents at end of period	$	167,638		$	97,046		$	13,654		$	0		$	278,338

(a) Includes Shea Homes Funding Corp., no significant activity occurred in 2012.

Condensed Consolidating Statement of Cash Flows

Three Months Ended March 31, 2011

	SHLP Corp (b)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In thousands)
Operating activities
Net cash (used in) provided by operating activities	$	(17,983	)	$	(14,256	)	$	458		$	(6,389	)	$	(38,170	)
Investing activities
Net decrease (increase) in promissory notes from related parties		(1,008	)		(56	)		(215	)		12,606			11,327
Other investing activities		(343	)		750			(799	)		0			(392	)
Net cash provided by (used in) investing activities		(1,351	)		694			(1,014	)		12,606			10,935
Financing activities
Principal payments to financial institutions and others		(20,439	)		0			0			0			(20,439	)
Intercompany		(29,799	)		35,745			271			(6,217	)		0
Other financing activities		4,317			0			(90	)		0			4,227
Net cash provided by (used in) financing activities		(45,921	)		35,745			181			(6,217	)		(16,212	)
Net (decrease) increase in cash and cash equivalents		(65,255	)		22,183			(375	)		0			(43,447	)
Cash and cash equivalents at beginning of period		99,511			54,393			12,970			0			166,874
Cash and cash equivalents at end of period	$	34,256		$	76,576		$	12,595		$	0		$	123,427

(b) Shea Homes Funding Corp. was formed on April 26, 2011, therefore no amounts are included in any financial statement before this date.

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Supplemental Guarantor Information

3 Months Ended

Mar. 31, 2012

Supplemental Guarantor Information

19. Supplemental Guarantor Information

On May 10, 2011, SHLP and Shea Homes Funding Corp., a wholly-owned subsidiary of SHLP (collectively “SHLP Corp”), issued 8.625% senior secured notes in the aggregate principal amount of $750.0 million (the “Secured Notes”) and the outstanding obligations of the Secured Facilities were paid. Certain of SHLP’s wholly-owned direct and indirect subsidiaries guarantee the Secured Notes. Vistancia Marketing, LLC and Vistancia Construction, LLC, two of our limited liability company subsidiaries that guarantee the notes, are currently organized as single member limited liability companies under Vistancia, LLC, a non-guarantor subsidiary that is 83.3% owned by Shea Homes Southwest, Inc. However, pursuant to the terms of the Vistancia, LLC limited liability company agreement, Shea Homes Southwest, Inc. owns 100% of the economic and voting interests in Vistancia Marketing, LLC and Vistancia Construction, LLC.

The obligations under the Secured Notes are not guaranteed by any SHLP joint venture where SHLP Corp does not own 100% of the economic interest, including those that are consolidated, and the collateral securing the Secured Notes does not include a pledge of the capital stock of any subsidiary if such pledge would result in a requirement that SHLP Corp file separate financial statements with respect to such subsidiary pursuant to Rule 3-16 of Regulation S-X under the Securities Act. Presented herein are the condensed consolidated financial statements for the guarantor subsidiaries and non-guarantor subsidiaries.

Condensed Consolidating Balance Sheet

March 31, 2012

	SHLP Corp (a)		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Total
	(In thousands)
Assets
Cash and cash equivalents	$	167,638	$	97,046		$	13,654	$	0		$	278,338
Restricted cash		11,889		1,549			448		0			13,886
Investments		0		34,374			0		0			34,374
Accounts and other receivables, net		85,986		25,741			30,995		(30,455	)		112,267
Receivables from related parties, net		9,269		26,046			22		0			35,337
Inventory		598,206		172,265			1,410		(1,147	)		770,734
Investments in joint ventures		4,022		1,269			12,267		0			17,558
Investments in subsidiaries		667,337		84,309			97,256		(848,902	)		0
Property and equipment, net		376		1,629			0		0			2,005
Other assets, net		18,747		9,417			37		0			28,201
Total assets	$	1,563,470	$	453,645		$	156,089	$	(880,504	)	$	1,292,700
Liabilities and equity
Liabilities:
Notes payable	$	751,374	$	0		$	0	$	0		$	751,374
Payables to related parties		20		0			0		3,312			3,332
Accounts payable		24,539		11,178			329		(41	)		36,005
Other liabilities		152,811		40,201			50,512		(32,366	)		211,158
Intercompany		344,371		(364,155	)		22,291		(2,507	)		0
Total liabilities		1,273,115		(312,776	)		73,132		(31,602	)		1,001,869
Equity:
SHLP equity:
Owners’ equity		282,520		758,586			82,481		(841,067	)		282,520
Accumulated other comprehensive income		7,835		7,835			0		(7,835	)		7,835
Total SHLP equity		290,355		766,421			82,481		(848,902	)		290,355
Non-controlling interests		0		0			476		0			476
Total equity		290,355		766,421			82,957		(848,902	)		290,831
Total liabilities and equity	$	1,563,470	$	453,645		$	156,089	$	(880,504	)	$	1,292,700

(a) Includes Shea Homes Funding Corp., whose financial position at March 31, 2012 was not material.

Condensed Consolidating Balance Sheet

December 31, 2011

	SHLP Corp (b)		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Total
	(In thousands)
Assets
Cash and cash equivalents	$	157,511	$	96,100		$	14,755	$	0		$	268,366
Restricted cash		11,747		1,538			433		0			13,718
Investments		0		32,428			0		0			32,428
Accounts and other receivables, net		94,949		22,208			39,520		(35,988	)		120,689
Receivables from related parties, net		8,147		26,753			25,323		0			60,223
Inventory		574,832		173,333			36,857		(1,212	)		783,810
Investments in joint ventures		4,141		1,265			12,464		0			17,870
Investments in subsidiaries		698,886		85,118			98,555		(882,559	)		0
Property and equipment, net		380		1,612			0		0			1,992
Other assets, net		18,851		10,057			112		0			29,020
Total assets	$	1,569,444	$	450,412		$	228,019	$	(919,759	)	$	1,328,116
Liabilities and equity
Liabilities:
Notes payable	$	751,457	$	0		$	599	$	0		$	752,056
Payables to related parties		0		0			1		2,342			2,343
Accounts payable		30,781		15,453			377		(548	)		46,063
Other liabilities		140,992		36,954			58,931		(37,226	)		199,651
Intercompany		345,311		(365,259	)		21,714		(1,766	)		0
Total liabilities		1,268,541		(312,852	)		81,622		(37,198	)		1,000,113
Equity:
SHLP equity:
Owners’ equity		294,511		756,872			119,297		(876,169	)		294,511
Accumulated other comprehensive income		6,392		6,392			0		(6,392	)		6,392
Total SHLP equity		300,903		763,264			119,297		(882,561	)		300,903
Non-controlling interests		0		0			27,100		0			27,100
Total equity		300,903		763,264			146,397		(882,561	)		328,003
Total liabilities and equity	$	1,569,444	$	450,412		$	228,019	$	(919,759	)	$	1,328,116

(b) Includes Shea Homes Funding Corp., whose financial position at December 31, 2011 was not material.

Condensed Consolidating Statement of Operations and Comphrehensive Income (Loss)

Three Months Ended March 31, 2012

	SHLP Corp (a)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In thousands)
Revenues	$	67,786		$	36,327		$	1,490		$	0		$	105,603
Cost of sales		(54,206	)		(30,707	)		(186	)		64			(85,035	)
Gross margin		13,580			5,620			1,304			64			20,568
Selling expenses		(5,379	)		(2,992	)		(981	)		0			(9,352	)
General and administrative expenses		(5,604	)		(2,051	)		(596	)		0			(8,251	)
Equity in income (loss) from joint ventures, net		129			(24	)		(38	)		0			67
Equity in income (loss) from subsidiaries		3,751			(853	)		(1,277	)		(1,621	)		0
Interest expense		(5,958	)		(326	)		(4	)		0			(6,288	)
Other income (expense), net		(926	)		1,845			1,451			(64	)		2,306
(Loss) income before income taxes		(407	)		1,219			(141	)		(1,621	)		(950	)
Income tax benefit (expense)		(4	)		752			4			0			752
Net (loss) income		(411	)		1,971			(137	)		(1,621	)		(198	)
Less: Net income attributable to non-controlling interests		0			0			(213	)		0			(213	)
Net (loss) income attributable to SHLP	$	(411	)	$	1,971		$	(350	)	$	(1,621	)	$	(411	)
Comprehensive income (loss)	$	1,032		$	3,414		$	(137	)	$	(3,064	)	$	1,245

(a) Includes Shea Homes Funding Corp., no significant activity occurred in 2012.

Condensed Consolidating Statement of Operations and Comprehensive Income

Three Months Ended March 31, 2011

	SHLP Corp (b)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In thousands)
Revenues	$	60,787		$	10,709		$	2,563		$	0		$	74,059
Cost of sales		(52,522	)		(9,251	)		(1,721	)		48			(63,446	)
Gross margin		8,265			1,458			842			48			10,613
Selling expenses		(5,339	)		(1,595	)		(1,284	)		0			(8,218	)
General and administrative expenses		(6,195	)		(1,487	)		(541	)		0			(8,223	)
Equity in loss from joint ventures		(202	)		(7	)		(184	)		0			(393	)
Equity in loss from subsidiaries		(229	)		(732	)		(707	)		1,668			0
Interest expense		(3,739	)		(212	)		0			0			(3,951	)
Other income (expense), net		(847	)		1,678			848			(48	)		1,631
Loss before income taxes		(8,286	)		(897	)		(1,026	)		1,668			(8,541	)
Income tax benefit (expense)		(3	)		354			(10	)		0			341
Net loss		(8,289	)		(543	)		(1,036	)		1,668			(8,200	)
Less: Net income attributable to non-controlling interests		0			0			(89	)		0			(89	)
Net loss attributable to SHLP	$	(8,289	)	$	(543	)	$	(1,125	)	$	1,668		$	(8,289	)
Comprehensive (loss) income	$	(7,609	)	$	137		$	(1,036	)	$	988		$	(7,520	)

(b) Shea Homes Funding Corp. was formed on April 26, 2011, therefore no amounts are included in any financial statement before this date.

Condensed Consolidating Statement of Cash Flows

Three Months Ended March 31, 2012

	SHLP Corp (a)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In thousands)
Operating activities
Net cash provided by (used in) operating activities	$	(13,830	)	$	268		$	22,583		$	739		$	9,760
Investing activities
Net (increase) decrease in promissory notes from related parties		282			(247	)		(143	)		0			(108	)
Other investing activities		(146	)		122			(289	)		0			(313	)
Net cash (used in) provided by investing activities		136			(125	)		(432	)		0			(421	)
Financing activities
Principal payments to financial institutions and others		(402	)		0			(199	)		0			(601	)
Intercompany		24,223			803			(24,287	)		(739	)		0
Other financing activities		0			0			1,234			0			1,234
Net cash provided by (used in) financing activities		23,821			803			(23,252	)		(739	)		633
Net increase (decrease) in cash and cash equivalents		10,127			946			(1,101	)		0			9,972
Cash and cash equivalents at beginning of period		157,511			96,100			14,755			0			268,366
Cash and cash equivalents at end of period	$	167,638		$	97,046		$	13,654		$	0		$	278,338

(a) Includes Shea Homes Funding Corp., no significant activity occurred in 2012.

Condensed Consolidating Statement of Cash Flows

Three Months Ended March 31, 2011

	SHLP Corp (b)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
	(In thousands)
Operating activities
Net cash (used in) provided by operating activities	$	(17,983	)	$	(14,256	)	$	458		$	(6,389	)	$	(38,170	)
Investing activities
Net decrease (increase) in promissory notes from related parties		(1,008	)		(56	)		(215	)		12,606			11,327
Other investing activities		(343	)		750			(799	)		0			(392	)
Net cash provided by (used in) investing activities		(1,351	)		694			(1,014	)		12,606			10,935
Financing activities
Principal payments to financial institutions and others		(20,439	)		0			0			0			(20,439	)
Intercompany		(29,799	)		35,745			271			(6,217	)		0
Other financing activities		4,317			0			(90	)		0			4,227
Net cash provided by (used in) financing activities		(45,921	)		35,745			181			(6,217	)		(16,212	)
Net (decrease) increase in cash and cash equivalents		(65,255	)		22,183			(375	)		0			(43,447	)
Cash and cash equivalents at beginning of period		99,511			54,393			12,970			0			166,874
Cash and cash equivalents at end of period	$	34,256		$	76,576		$	12,595		$	0		$	123,427

(b) Shea Homes Funding Corp. was formed on April 26, 2011, therefore no amounts are included in any financial statement before this date.

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Commitment and Contingencies - Additional Information (Detail) (USD $)						1 Months Ended
	Mar. 31, 2012	Dec. 31, 2011	May 10, 2011	Mar. 31, 2012 Homebuilding Operations	Dec. 31, 2011 Homebuilding Operations	Feb. 29, 2012 Bad Boy Guarantee	Mar. 31, 2012 Bad Boy Guarantee	Dec. 31, 2011 Bad Boy Guarantee	Mar. 31, 2012 Related Party	Dec. 31, 2011 Related Party	Mar. 31, 2012 Baker Ranch	Dec. 31, 2011 Baker Ranch	Mar. 31, 2012 Unconsolidated Joint Ventures	Dec. 31, 2011 Unconsolidated Joint Ventures
Commitments and Contingencies Disclosure [Line Items]
Legal reserves	$ 6,980,000	$ 5,824,000
Principal balance on debt outstanding							31,200,000	34,100,000			25,400,000	25,400,000
Number of loans matured						1
Maturity period							2012-09
Letters of credit, borrowing capacity			75,000,000
Letters of credit, outstanding amount	4,200,000	4,200,000
Exposure of surety bonds in connection with development of projects				68,800,000	71,000,000				3,100,000	3,100,000			29,300,000	29,300,000
Bonds issued for development of projects				169,700,000	178,400,000				6,900,000	6,900,000			69,000,000	69,000,000
Purchase of water systems rights	$ 36,700,000	$ 36,700,000

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2012

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Inventory

Inventory is stated at cost, unless the carrying amount is determined not to be recoverable, in which case inventory is written down to fair value. Quarterly, we review our real estate assets at each community for indicators of impairment. Real estate assets include projects actively selling and projects under development or held for future development. Indicators of impairment include, but not limited to, significant decreases in local housing market values and selling prices of comparable homes, significant decreases in gross margins and sales absorption rates, costs in excess of budget, and actual or projected cash flow losses.

Semi-annually, or if there are indications of impairment, we perform a detailed budget and cash flow review of our real estate assets to determine whether the estimated remaining undiscounted future cash flows of the community are more or less than the asset’s carrying value. If the undiscounted cash flows are more than the asset’s carrying value, no impairment adjustment is required. However, if the undiscounted cash flows are less than the asset’s carrying value, the asset is deemed impaired and is written down to fair value. These impairment evaluations require us to make estimates and assumptions regarding future conditions, including timing and amounts of development costs and sales prices of real estate assets, to determine if expected future undiscounted cash flows will be sufficient to recover the asset’s carrying value.

When estimating undiscounted cash flows of a community, we make various assumptions, including: (i) expected sales prices and sales incentives to be offered, including the number of homes available, pricing and incentives being offered by us or other builders in other communities, and future sales price adjustments based on market and economic trends; (ii) expected sales pace and cancellation rates based on local housing market conditions, competition and historical trends; (iii) costs expended to date and expected to be incurred, including, but not limited to, land and land development costs, home construction costs, interest costs, indirect construction and overhead costs, and selling and marketing costs; (iv) alternative product offerings that may be offered that could have an impact on sales pace, sales price and/or building costs; and (v) alternative uses for the property.

Many assumptions are interdependent and a change in one may require a corresponding change to other assumptions. For example, increasing or decreasing sales absorption rates has a direct impact on the estimated per unit sales price of a home, the level of time sensitive costs (such as indirect construction, overhead and carrying costs), and selling and marketing costs (such as model maintenance costs and advertising costs). Depending on the underlying objective of the community, assumptions could have a significant impact on the projected cash flow analysis. For example, if our objective is to preserve operating margins, our cash flow analysis will be different than if the objective is to increase sales. These objectives may vary significantly from community to community and over time.

If assets are considered impaired, impairment is determined by the amount the asset’s carrying value exceeds its fair value. Fair value is determined based on estimated future cash flows discounted for inherent risks associated with real estate assets or other valuation techniques. These discounted cash flows are impacted by expected risk based on estimated land development, construction and delivery timelines; market risk of price erosion; uncertainty of development or construction cost increases; and other risks specific to the asset or market conditions where the asset is located when assessment is made. These factors are specific to each community and may vary among communities. The discount rate used in determining each asset’s fair value depends on the community’s projected life and development stage. We generally use discount rates ranging from 10% to 25%, subject to perceived risks associated with the community’s cash flow streams relative to its inventory.

Completed Operations Claim Costs

We maintain, and require our subcontractors to maintain, general liability insurance which includes coverage for completed operations losses and damages. Most of our subcontractors carry this insurance through our “rolling wrap-up” insurance program, where our risks, and risks of participating subcontractors working on our projects, are insured through master policies.

Completed operations claims reserves primarily represent claims for property damage to completed homes and projects outside of our one-to-two year warranty period. Specific terms and conditions of completed operations warranties vary depending on the market in which homes are closed and can range to 12 years.

We record expenses and liabilities for estimated costs of potential completed operations claims based upon aggregated loss experience, which includes an estimate of completed operations claims incurred but not reported and is actuarially estimated using individual case-basis valuations and statistical analysis. These estimates make up our entire reserve and are subject to a high degree of variability due to uncertainties such as trends in completed operations claims related to our markets and products built, changes in claims reporting and settlement patterns, third party recoveries, insurance industry practices, insurance regulations and legal precedent. Because state regulations vary, completed operations claims are reported and resolved over an extended period, sometimes exceeding 12 years. As a result, actual costs may differ significantly from estimates.

The actuarial analyses that determined these incurred but not reported claims consider various factors, including frequency and severity of losses, which are based on our historical claims experience supplemented by industry data. The actuarial analyses of these claims and reserves also consider historical third party recovery rates and claims management expenses. Due to the inherent uncertainty related to each of these factors, periodic changes to such factors based on updated relevant information could result in actual costs to differ significantly from estimated costs.

In accordance with our underlying completed operations insurance policies, these completed operations claims costs are recoverable from our subcontractors or insurance carriers. Completed operations claims through July 31, 2009 are insured with third-party insurance carriers and completed operations claims commencing August 1, 2009 are insured with affiliate insurance carriers.

Revenues

In accordance with Accounting Standards Codification (“ASC”) 360, revenues from housing and other real estate sales are recognized when the respective units are closed. Housing and other real estate sales are closed when all conditions of escrow are met, including delivery of the home or other real estate asset, title passage, appropriate consideration is received and collection of associated receivables, if any, is reasonably assured. Sales incentives are a reduction of revenues when the respective unit is closed.

Income Taxes

SHLP is treated as a partnership for income tax purposes. As a limited partnership, SHLP is subject to certain minimal state taxes and fees; however, taxes on income or losses realized by SHLP are generally the obligation of the Partners and their owners.

SHI and PIC are C corporations. Federal and state income taxes are provided for these entities in accordance with the provisions of ASC 740. The provision for, or benefit from, income taxes is calculated using the asset and liability method, under which deferred tax assets and liabilities are recorded based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect the year in which differences are expected to reverse. Deferred tax assets are evaluated to determine whether a valuation allowance should be established based on its determination of whether it is more likely than not some or all of the deferred tax asset will not be realized. The ultimate realization of deferred tax assets depends primarily on generation of future taxable income during periods in which those temporary differences become deductible. Judgment is required in determining future tax consequences of events that have been recognized in the consolidated financial statements and/or tax returns. Differences between anticipated and actual outcomes of these future tax consequences could have a material impact on the consolidated financial position or results of operations.

New Accounting Pronouncements

In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs, (“ASU 2011-04”). ASU 2011-04 amends ASC 820, Fair Value Measurements (“ASC 820”), providing a consistent definition and measurement of fair value, as well as similar disclosure requirements between U.S. GAAP and International Financial Reporting Standards. ASU 2011-04 changes certain fair value measurement principles, clarifies application of existing fair value measurement and expands the ASC 820 disclosure requirements, particularly for Level 3 fair value measurements. The Company adopted ASU 2011-04 effective January 1, 2012, which did not have a material impact on its consolidated financial position or results of operations.

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Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012		Mar. 31, 2011
Revenues	$ 105,603		$ 74,059
Cost of sales	(85,035)		(63,446)
Gross margin	20,568		10,613
Selling expenses	(9,352)		(8,218)
General and administrative expenses	(8,251)		(8,223)
Equity in income (loss) from joint ventures, net	67		(393)
Interest expense	(6,288)	[1]	(3,951)	[1]
Other income, net	2,306		1,631
(Loss) income before income taxes	(950)		(8,541)
Income tax benefit	752		341
Net loss	(198)		(8,200)
Less: Net income attributable to non-controlling interests	(213)		(89)
Net loss attributable to SHLP	(411)		(8,289)
Comprehensive income (loss)	$ 1,245		$ (7,520)

[1] For the three months ended March 31, 2012 and 2011, assets qualifying for interest capitalization did not exceed debt; therefore, non-qualifying interest was expensed.

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Other Liabilities

3 Months Ended

Mar. 31, 2012

Other Liabilities

12. Other Liabilities

At March 31, 2012 and December 31, 2011, other liabilities were as follows:

	March 31, 2012		December 31, 2011
	(In thousands)
Completed operations	$	103,980	$	109,390
Warranty reserves		16,660		17,358
Deferred revenue		18,846		20,329
Provisions for closed homes/communities		11,281		13,156
Deposits		11,592		7,766
Legal reserves		6,980		5,824
Accrued interest		24,258		8,122
Accrued compensation and benefits		2,880		2,109
Distributions payable		3,164		3,344
Deficit Distributions (see Note 8)		903		928
Other		10,614		11,325
Total other liabilities	$	211,158	$	199,651

Completed Operations

Reserves for completed operations primarily represent claims for property damage to completed homes and projects outside of our one-to-two year warranty period. Specific terms and conditions of completed operations warranties vary depending on the market in which homes are closed and can range to 12 years. Expenses and liabilities are recorded for potential completed operations claims based upon aggregated loss experience, which includes an estimate of completed operations claims incurred but not reported, and is actuarially estimated using individual case-basis valuations and statistical analysis. From August 1, 2001 to July 31, 2009, completed operations claims are insured with third-party insurance carriers. Commencing August 1, 2009, completed operations claims are insured with affiliate insurance carriers.

For the three months ended March 31, 2012 and 2011, changes in completed operations were as follows:

	Three Months Ended March 31,
	2012			2011
	(In thousands)
Insured completed operations
Balance, beginning of the period	$	109,390		$	102,860
Reserves provided (relieved)		1,391			(1,344	)
Insurance purchased		0			16,520
Claims paid		(6,801	)		(1,097	)
Balance, end of the period		103,980			116,939
Self-insured completed operations
Balance, beginning of the period		0			15,613
Reserves provided		0			907
Insurance purchased		0			(16,520	)
Balance, end of the period		0			0
Total completed operations	$	103,980		$	116,939

Reserves provided for self-insured completed operations are included in cost of sales. Reserves provided (relieved) for insured completed operations are offset by changes in insurance receivables (see Note 6), however, premiums paid for insured completed operations are included in cost of sales.

For actual completed operations claims and estimates of completed operations claims incurred but not reported, we estimate and record insurance receivables under applicable policies when recovery is probable. At March 31, 2012 and December 31, 2011, insurance receivables were $104.0 million and $109.4 million, respectively.

Expenses, liabilities and receivables related to these claims are subject to a high degree of variability due to uncertainties such as trends in completed operations claims related to our markets and products built, claim settlement patterns and insurance industry practices. Although considerable variability is inherent in such estimates, we believe reserves for completed operations claims are adequate.

Warranty Reserve

We offer a limited one or two year warranty for our homes. Specific terms and conditions of these warranties vary depending on the market in which homes are closed. We estimate warranty costs to be incurred and record a liability and an expense to cost of sales when home revenue is recognized. We also include in our warranty reserve uncovered losses related to completed operations coverage, which approximates 12.5% of the total property damage. Factors affecting warranty liability include number of homes closed, historical and anticipated warranty claims, and cost per claim. We periodically assess adequacy of our warranty liabilities and adjust amounts as necessary.

For the three months ended March 31, 2012 and 2011, changes in warranty liability were as follows:

	Three Months Ended March 31,
	2012			2011
	(In thousands)
Balance, beginning of the period	$	17,358		$	16,238
Provision for warranties		1,475			1,037
Warranty costs paid		(2,173	)		(2,172	)
Balance, end of the period	$	16,660		$	15,103

Deferred Revenue

Deferred revenue represents deferred profit on transactions in which an insufficient down payment was received or a future performance, passage of time or event is required. At March 31, 2012 and December 31, 2011, deferred revenue primarily represents the PIC Transaction.

Completed operations claims were previously insured through PIC for policy years August 1, 2001 to July 31, 2009. In December 2009, PIC entered into a series of novation and reinsurance transactions (the “PIC Transaction”).

First, PIC entered into a novation agreement with JFSCI to novate its deductible reimbursement obligations related to its workers’ compensation and general liability risks at September 30, 2009, and its completed operations claims from August 1, 2005 to July 31, 2007. Concurrently, JFSCI entered into insurance arrangements with unrelated third-party insurance carriers to insure these programs. As a result of this novation, the $19.2 million gain was deferred in these consolidated financial statements and will be recognized as income (expense) when related claims are paid or actuarial estimates are adjusted. At March 31, 2012 and December 31, 2011, the remaining deferred revenue was $15.0 million and $15.6 million, respectively. For the three months ended March 31, 2012 and 2011, we recognized $0.6 million and $0.1 million, respectively, of this deferral as income, which was included in other income, net.

Second, PIC entered into reinsurance agreements with various unrelated reinsurers that reinsured 100% of the completed operations claims coverage from August 1, 2001 to July 31, 2005. As a result of the reinsurance, the $15.6 million gain was deferred in these consolidated financial statements and will be recognized as income (expense) when the related claims are paid or actuarial estimates are adjusted. At March 31, 2012 and December 31, 2011, the remaining deferred revenue was $0.9 million and $1.1 million, respectively. For the three months ended March 31, 2012 and 2011, we recognized $0.2 million and $0.1 million, respectively, of this deferral as income, which was included in other income, net.

Distributions Payable

In December 2011, our consolidated joint venture, Vistancia, LLC, sold its remaining interest in an unconsolidated joint venture. As a result of the sale, no other assets of Vistancia, LLC economically benefit the non-controlling interest of Vistancia, LLC and the Company recorded the remaining $3.3 million distribution payable to the non-controlling interest, which is paid $0.1 million each quarter. At March 31, 2012, the remaining distribution payable was $3.2 million.

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Document and Entity Information	3 Months Ended
	Mar. 31, 2012
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q1
Entity Registrant Name	SHEA HOMES LIMITED PARTNERSHIP
Entity Central Index Key	0001531744
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding	0

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Related Party Transactions

3 Months Ended

Mar. 31, 2012

Related Party Transactions

13. Related Party Transactions

Related Party Receivables and Payables

At March 31, 2012 and December 31, 2011, receivables from related parties, net were as follows:

	March 31, 2012			December 31, 2011
	(In thousands)
Note receivable from JFSCI	$	25,635		$	25,381
Notes receivable from unconsolidated joint ventures		366			25,631
Notes receivable from other related parties		20,749			21,013
Reserves for notes receivable from other related parties		(12,715	)		(12,697	)
Receivables from related parties		1,302			895
Total receivables from related parties, net	$	35,337		$	60,223

Until August 2011, we participated in a centralized cash management function operated by JFSCI, whereby net cash flows from operations were transferred daily with JFSCI and resulted in related party transactions and monetary transfers to settle amounts owed. The resultant notes receivable and payable were unsecured, due on demand, and accrued interest monthly based on Prime less 2.05%. In August 2011, we ceased participation in this function and performed it independently. In May 2011, concurrent with issuance of the Secured Notes, through a $75.0 million cash payment and $41.5 million contribution of assets, the receivable from JFSCI was paid down by JFSCI and converted to a $38.9 million unsecured term note receivable from JFSCI, bearing 4% interest, payable in equal quarterly installments and maturing May 15, 2019. In June 2011 and August 2011, JFSCI elected to make prepayments, including accrued interest, totaling $14.3 million and applied these prepayments to future installments such that JFSCI would not be required to make a payment until February 2014. At March 31, 2012 and December 31, 2011, the note receivable from JFSCI, including accrued interest, was $25.6 million and $25.4 million, respectively. Quarterly, we evaluate collectability of the note receivable from JFSCI, which includes consideration of JFSCI’s payment history, operating performance and future payment requirements under the note. Based on these criteria, and as JFSCI applied prepayments under the note to defer future installments until February 2014, we do not presently anticipate collection risks on the note receivable from JFSCI.

Notes receivable from unconsolidated joint ventures, including accrued interest, at March 31, 2012 and December 31, 2011 were $0.4 million and $25.6 million, respectively. At December 31, 2011, included in the $25.6 million of notes receivable were $25.2 million of notes receivable held by our consolidated joint venture, SCLLC. In March 2012, our interest in SCLLC was redeemed by SCLLC and therefore, effective March 31, 2012, SCLLC’s notes receivable from unconsolidated joint ventures were excluded from these consolidated financial statements. At March 31, 2012, the remaining note receivable from an unconsolidated joint venture bears interest at 8% and matures in 2020. Further, this note earns additional interest to achieve a 17.5% internal rate of return, subject to available cash flows of the joint venture, and can be repaid prior to 2020. Quarterly, we evaluate collectability of this note, which includes consideration of prior payment history, operating performance and future payment requirements under the applicable note. Based on these criteria, we do not presently anticipate collection risks on this note. 

 Notes receivable from other related parties, including accrued interest, at March 31, 2012 and December 31, 2011 were $8.0 million and $8.3 million, respectively, net of related reserves of $12.7 million and $12.7 million, respectively. These notes are unsecured and mature from November 2012 through April 2021. At March 31, 2012 and December 31, 2011, these notes bore interest ranging from Prime less .75% (2.5%) to 4.2%. Quarterly, we evaluate collectability of these notes. Our evaluation includes consideration of prior payment history, operating performance and future payment requirements under the applicable notes. At December 31, 2009, based on these criteria, notes receivable from Shea Management LLC and Shea Properties Management Company, Inc. (“SPMCI”) were deemed uncollectible and fully reserved. In June 2011, SPMCI paid the accrued interest for 2010 and forward. Therefore, unpaid interest in 2012 from SPMCI is not reserved; accrued interest prior to 2010 and the principal balance remain reserved. In addition, based on these criteria, we do not presently anticipate collection risks on the other notes

The Company, entities under common control and these unconsolidated joint ventures also engage in transactions on behalf of the other, such as payment of invoices and payroll. The amounts resulting from these transactions are recorded in receivables from related parties or payables to related parties, non-interest bearing and due on demand. At March 31, 2012 and December 31, 2011, these receivables were $1.3 million and $0.9 million, respectively, and these payables were $3.3 million and $2.3 million, respectively.

Real Property and Joint Venture Transactions

In March 2012, SHLP’s entire 58% interest in SCLLC, a consolidated joint venture with Shea Properties II, LLC, a related party and the non-controlling interest, was redeemed by SCLLC. In valuing its 58% interest in SCLLC, SHLP, to ensure receipt of net assets of equal value to its ownership interest, used third-party real estate appraisals for real property held by SCLLC. The estimated fair value of the assets received by SHLP was $30.8 million. However, as the non-controlling interest is a related party under common control, the assets and liabilities received by SHLP were recorded at net book value and the difference in SHLP’s investment in SCLLC and the net book value of the assets and liabilities received was recorded as a reduction to SHLP’s equity.

As consideration for the redemption, SCLLC distributed assets and liabilities to SHLP having a net book value of $24.0 million, including $2.2 million cash, a $3.0 million secured note receivable, $20.0 million of inventory and $1.2 million of other liabilities. In addition, as a result of this redemption, SCLLC is excluded from these consolidated financial statements effective March 31, 2012 which resulted in a net reduction of $41.8 million in assets and $2.0 million in liabilities, and a corresponding reduction in total equity, of which $11.6 million was attributable to SHLP and $28.2 million was attributable to non-controlling interests.

At March 31, 2012 and 2011, we were the managing member for seven and ten, respectively, unconsolidated joint ventures and received a management fee from these joint ventures as reimbursement for direct and overhead costs incurred on behalf of the joint ventures. Fees from joint ventures representing reimbursement of our costs are recorded as a reduction to general and administrative expense. Fees from joint ventures representing profit are recorded as revenues. For the three months ended March 31, 2012, $1.0 million of management fees were offset against general and administrative expenses, and $0.1 million of management fees were included in revenues. For the three months ended March 31, 2011, $0.9 million of management fees were offset against general and administrative expenses, and $0.3 million management fees, were included in revenues.

General and Administrative Related Party Transactions

JFSCI provides corporate services to us, including management, legal, tax, information technology, risk management, facilities, accounting, treasury and human resources. For the three months ended March 31, 2012 and 2011, general and administrative expenses included $4.0 million and $4.0 million, respectively, for corporate services provided by JFSCI.

We lease office space from related parties under non-cancelable operating leases. Leases are for five to ten year terms and generally provide for five year renewal options. For the three months ended March 31, 2012 and 2011, related-party rental expense was $0.2 million and $0.2 million, respectively.

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Condensed Consolidated Statements of Changes in Equity (USD $) In Thousands, unless otherwise specified	Total	Members Equity	Accumulated Other Comprehensive Income (Loss)	Parent	Noncontrolling Interest	Limited Partner Common Stock	Limited Partner Series B Preferred Stock	Limited Partner Series D Preferred Stock	General Partner Common Stock
Beginning Balance at Dec. 31, 2010	$ 432,313	$ 406,863	$ 5,363	$ 412,226	$ 20,087	$ 71,830	$ 194,240	$ 121,892	$ 18,901
Comprehensive loss:
Net (loss) income	(8,200)	(8,289)	0	(8,289)	89	(6,496)	0	(84)	(1,709)
Change in unrealized gains on investments, net	680	0	680	680	0	0	0	0	0
Total comprehensive loss	(7,520)			(7,609)	89
Distributions to non-controlling interests	(90)	0	0	0	(90)	0	0	0	0
Ending Balance at Mar. 31, 2011	424,703	398,574	6,043	404,617	20,086	65,334	194,240	121,808	17,192
Beginning Balance at Dec. 31, 2011	328,003	294,511	6,392	300,903	27,100	1	173,555	120,955	0
Comprehensive loss:
Net (loss) income	(198)	(411)	0	(411)	213	0	(411)	0	0
Change in unrealized gains on investments, net	1,443	0	1,443	1,443	0	0	0	0	0
Total comprehensive loss	1,245			1,032	213
Redemption of Company's interest in consolidated joint venture	(39,819)	(11,580)	0	(11,580)	(28,239)	0	(11,580)	0	0
Contributions from non-controlling interests	1,746	0	0	0	1,746	0	0	0	0
Distributions to non-controlling interests	(344)	0	0	0	(344)	0	0	0	0
Ending Balance at Mar. 31, 2012	$ 290,831	$ 282,520	$ 7,835	$ 290,355	$ 476	$ 1	$ 161,564	$ 120,955	$ 0

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Inventory

3 Months Ended

Mar. 31, 2012

Inventory

7. Inventory

At March 31, 2012 and December 31, 2011, inventory was as follows:

	March 31, 2012		December 31, 2011
	(In thousands)
Model homes	$	75,005	$	82,339
Completed homes for sale		28,318		29,703
Homes under construction		122,581		97,952
Lots available for construction		305,405		282,292
Land under development		96,225		144,070
Land held for future development		127,135		129,247
Land deposits and preacquisition costs		16,065		18,207
Total inventory	$	770,734	$	783,810

Impairment

Inventory, including all captions listed above, are stated at cost, unless the carrying amount is determined to be unrecoverable, in which case inventories are written down to fair value (see Note 2).

For the three months ended March 31, 2012 and 2011, inventory impairment was as follows:

	Three Months Ended March 31,
	2012		2011
	(Dollars in thousands)
Inventory impairment	$	0	$	618
Remaining carrying value of inventory impaired at end of period	$	0	$	1,113
Projects impaired		0		1
Projects evaluated for impairment (a)		140		148

(a) Large land parcels not subdivided into communities are counted as one project. Once parcels are subdivided, the project count will increase accordingly.

Inventory impairment was included in cost of sales in the accompanying consolidated statements of operations and primarily attributable to lower home prices driven by increased incentives and price reductions required in response to weak demand and economic conditions, including record foreclosures, high unemployment, low consumer confidence and tighter mortgage credit standards.

Write-off of Deposits and Preacquisition Costs

Land deposits and preacquisition costs for potential acquisitions and land option contracts are included in inventory. When a potential acquisition or land option contract is abandoned, related deposits and preacquisition costs are written off to other income, net. For the three months ended March 31, 2012, write-offs of deposits and preacquisition costs were $0.3 million and no option lots were abandoned. For the three months ended March 31, 2011, write-offs of deposits and preacquisition costs were zero and no option lots were abandoned.

Interest Capitalization

Interest is capitalized on inventory and investments in joint ventures during development and other qualifying activities. Interest capitalized as cost of inventory is included in cost of sales as related units are closed. Interest capitalized as cost of investment in joint ventures is included in equity in income (loss) from joint venture as related units in the joint venture are closed.

For the three months ended March 31, 2012 and 2011, interest incurred, capitalized and expensed was as follows:

	Three Months Ended March 31,
	2012			2011
	(In thousands)
Interest incurred	$	16,661		$	19,662
Interest expensed (a)	$	6,288		$	3,951
Interest capitalized as a cost of inventory	$	10,195		$	15,271
Interest previously capitalized as a cost of inventory, included in cost of sales	$	(7,784	)	$	(5,808	)
Capitalized interest in ending inventory (b)	$	113,847		$	115,414
Interest capitalized as a cost of investments in joint ventures	$	177		$	440
Interest previously capitalized as a cost of investments in joint ventures, included in equity in income (loss) from joint ventures	$	(177	)	$	(243	)
Capitalized interest in ending investments in joint ventures	$	0		$	1,143

(a) For the three months ended March 31, 2012 and 2011, assets qualifying for interest capitalization did not exceed debt; therefore, non-qualifying interest was expensed.

(b) Inventory impairment charges were recorded against total inventory of the respective community. Capitalized interest reflects the gross amount of capitalized interest as impairment charges recognized were generally not allocated to specific components of inventory.

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Accounts and Other Receivables, net

3 Months Ended

Mar. 31, 2012

Accounts and Other Receivables, net

6. Accounts and Other Receivables, net

At March 31, 2012 and December 31, 2011, accounts and other receivables, net were as follows:

	March 31, 2012			December 31, 2011
	(In thousands)
Insurance receivables	$	103,980			$109,390
Escrow receivables		1,842			5,815
Notes receivable		4,001			3,566
Other receivables		5,460			4,937
Reserve		(3,016	)		(3,019	)
Total accounts and other receivables, net	$	112,267			$120,689

We record insurance receivables from insurance carriers for reimbursable claims pertaining to resultant damage from construction defects on our closed homes. Closed homes for policy years August 1, 2001 to July 31, 2009 are insured with third-party insurance carriers, and closed homes for policy years commencing August 1, 2009 are insured with affiliate insurance carriers.

We reserve for uncollectible receivables that are specifically identified or outstanding more than 120 days.

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Segment Information

3 Months Ended

Mar. 31, 2012

Segment Information

18. Segment Information

Our homebuilding business, which is responsible for nearly all our operating results, constructs and sells single-family attached and detached homes designed to appeal to first-time, move-up and active adult homebuyers. Our homebuilding business also provides management services to joint ventures and other related and unrelated parties. We manage each homebuilding community as an operating segment and have aggregated these communities into reportable segments based on geography as follows:

• Southern California, comprised of communities in Los Angeles, Ventura, Orange, Riverside and San Bernardino Counties;

• San Diego, comprised of communities in San Diego County, California;

• Northern California, comprised of communities in northern and central California;

• Mountain West, comprised of communities in Colorado and Washington;

• South West, comprised of communities in Arizona and Nevada; and

• Other, comprised primarily of communities in Florida.

In accordance with ASC 280, Segment Reporting, in determining the most appropriate aggregation of our homebuilding communities, we also considered similar economic and other characteristics, including product types, average selling prices, gross profits, production processes, suppliers, subcontractors, regulatory environments, land acquisition results, and underlying demand and supply.

Our Corporate segment primarily provides management services to our operating segments, and includes results of our captive insurance provider, which primarily administers claims reinsured by third-party carriers. Results of our insurance brokerage services business are also included in our Corporate segment.

The reportable segments follow the same accounting policies as our consolidated financial statements described in Note 2. Operational results of each reportable segment are not necessarily indicative of the results that would have been achieved had the reportable segment been an independent, stand-alone entity during the periods presented. As a result of certain reporting changes that became effective December 31, 2011, we reclassified certain 2011 amounts to conform to the current reportable segments of the Company.

Financial information relating to reportable segments was as follows:

	March 31, 2012		December 31, 2011
	(In thousands)
Total assets:
Southern California	$	184,294	$	176,999
San Diego		121,314		127,438
Northern California		216,664		219,734
Mountain West		301,987		351,050
South West		109,408		105,621
Other		5,518		4,313
Total homebuilding assets		939,185		985,155
Corporate		353,515		342,961
Total assets	$	1,292,700	$	1,328,116

	March 31, 2012		December 31, 2011
	(In thousands)
Inventory:
Southern California	$	145,072	$	142,877
San Diego		103,558		105,595
Northern California		201,035		204,901
Mountain West		243,075		256,685
South West		74,477		71,289
Other		3,517		2,463
Total homebuilding inventory		770,734		783,810
Corporate		0		0
Total inventory	$	770,734	$	783,810

	Three Months Ended March 31,
	2012		2011
	(In thousands)
Revenues:
Southern California	$	26,379	$	19,773
San Diego		14,107		5,761
Northern California		25,960		15,855
Mountain West		18,594		13,154
South West		19,515		18,168
Other		805		1,091
Total homebuilding revenues		105,360		73,802
Corporate		243		257
Total revenues	$	105,603	$	74,059

	Three Months Ended March 31,
	2012			2011
	(In thousands)
(Loss) income before income taxes:
Southern California	$	1,974		$	(2,325	)
San Diego		1			(1,299	)
Northern California		817			(1,729	)
Mountain West		(3,367	)		(1,780	)
South West		(1,657	)		(2,034	)
Other		(249	)		(254	)
Total homebuilding loss before income taxes		(2,481	)		(9,421	)
Corporate		1,531			880
Total loss before income taxes	$	(950	)	$	(8,541	)

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Income Taxes

3 Months Ended

Mar. 31, 2012

Income Taxes

14. Income Taxes

For the three months ended March 31, 2012, income tax benefit was $0.8 million, primarily from the decrease in the deferred tax asset valuation allowance. At March 31, 2012, the net deferred tax asset was $36.7 million, which primarily related to available loss carryforwards, impairments of inventory and available-for-sale investments, housing inventory and land basis differences, and timing of income recognition. The $36.7 million deferred tax asset valuation allowance fully reserves the net deferred tax asset due to inherent uncertainty of future income. To the extent eligible taxable income exists, which allows tax benefits of these deferred tax assets to be utilized, the effective tax rate may be reduced, subject to certain limitations under Internal Revenue Code Section 382 (“Section 382”), by reducing the valuation allowance and offsetting a portion of taxable income.

In 2009, we filed a petition with the United States Tax Court (the “Tax Court”) regarding our position on the completed contract method for homebuilding activities by SHLP, SHI and subsidiaries. During 2010 and 2011, we engaged in formal and informal discovery with the IRS. We expect the Tax Court will schedule a trial for July 2012. We expect our position will prevail. Accordingly, no liability for related taxes or interest has been recorded for SHI and its subsidiaries. Furthermore, as a limited partnership, any income taxes, interest or penalties imposed on SHLP are the responsibility of the Partners and are not reflected in the tax provision in these consolidated financial statements. However, if the Tax Court rules in favor of the IRS, SHI could be obligated to pay the IRS and applicable state taxing authorities up to $60 million and, under the Tax Distribution Agreement, SHLP could be obligated to make a distribution to the Partners up to $103 million to fund their related payments to the IRS and the applicable state taxing authorities.

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Other Assets, Net

3 Months Ended

Mar. 31, 2012

Other Assets, Net

10. Other Assets, Net

At March 31, 2012 and December 31, 2011, other assets were as follows:

	March 31, 2012		December 31, 2011
	(In thousands)
Income tax receivables	$	5,003	$	7,473
Prepaid professional fees		3,832		3,695
Prepaid loan fees		7,475		7,738
Prepaid bank fees		540		657
Deposits in lieu of bonds and letters of credit		8,495		6,439
Prepaid insurance		1,865		1,970
Other		991		1,048
Total other assets, net	$	28,201	$	29,020

Prepaid Professional and Loan Fees

In accordance with ASC 470, these debt issuance costs are capitalized to other assets and amortized as interest over the term of the related debt.

Deposits in Lieu of Bonds and Letters of Credit

We may be required to make deposits in lieu of bonds with various agencies for our homebuilding projects. These deposits may be returned as the collateral requirements decrease, or replaced with new bonds as bonding becomes available.

In June 2010, due to maturity of an unsecured bank line of credit, certain letters of credit were presented for payment and recorded as deposits in lieu of letters of credit. These deposits may be returned as collateral requirements decrease, or replaced with new letters of credit.

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Other Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011	Mar. 31, 2011
Other Liabilities [Line Items]
Completed operations	$ 103,980	$ 109,390	$ 116,939
Warranty reserves	16,660	17,358
Deferred revenue	18,846	20,329
Provisions for closed homes/communities	11,281	13,156
Deposits	11,592	7,766
Legal reserves	6,980	5,824
Accrued interest	24,258	8,122
Accrued compensation and benefits	2,880	2,109
Distributions payable	3,164	3,344
Deficit Distributions (see Note 8)	903	928
Other	10,614	11,325
Total other liabilities	$ 211,158	$ 199,651

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Investments in Joint Ventures

3 Months Ended

Mar. 31, 2012

Investments in Joint Ventures

8. Investments in Joint Ventures

Unconsolidated joint ventures, which we do not control but have significant influence through ownership interests generally up to 50%, are accounted for using the equity method of accounting. These joint ventures are generally involved in real property development. Earnings and losses are allocated in accordance with terms of joint venture agreements.

Losses and distributions from joint ventures, in excess of the carrying amount of our investment (“Deficit Distributions”) are included in other liabilities. We record Deficit Distributions since we are liable for this deficit to respective joint ventures. Deficit Distributions are offset by future earnings of, or future contributions to, joint ventures. At March 31, 2012 and December 31, 2011, Deficit Distributions were $0.9 million and $0.9 million, respectively.

For the three months ended March 31, 2012 and 2011, there were no impairments on investments in joint ventures.

At December 31, 2011, our consolidated joint venture, Shea Colorado, LLC (“SCLLC”), had investments in unconsolidated joint ventures, which unconsolidated joint ventures had $14.0 million of bank and seller financing notes payable secured by real property and $40.9 million of notes payable with joint ventures’ partners, of which $15.4 million was secured by real property. In March 2012, our interest in SCLLC was redeemed by SCLLC and therefore, effective March 31, 2012, SCLLC’s investments in these unconsolidated joint ventures were excluded from these consolidated financial statements (see Note 13).

At March 31, 2012, total unconsolidated joint ventures’ notes payable were $47.5 million and included $40.2 million of bank and seller financing notes payable secured by real property and $7.3 million of notes payables with joint ventures’ partners. At December 31, 2011, total unconsolidated joint ventures’ notes payable were $103.7 million and included $55.4 million of bank and seller financing notes payable secured by real property and $48.3 million of notes payable to joint ventures’ partners, of which $15.4 million was secured by real property. In addition, at March 31, 2012 and December 31, 2011, we had an indirect 12.3% effective ownership in a joint venture that had bank notes payable secured by real property of $7.2 million, in which we have not provided guarantees.

At March 31, 2012 and December 31, 2011, of the $40.2 million and $55.4 million in our unconsolidated joint ventures’ outstanding bank and seller financing secured notes payable, respectively, we provided guarantees on a joint and several basis for one secured note payable, which had an outstanding balance of $9.2 million and $11.2 million at March 31, 2012 and December 31, 2011, respectively. These guarantees include, but are not limited to, project completion and loan-to-value maintenance guarantees. At March 31, 2012 and December 31, 2011, we also had an indemnification agreement from our joint venture partner for 90% of this secured note payable’s outstanding balance of $9.2 million and $11.2 million, respectively. At March 31, 2012 and December 31, 2011, no liabilities were recorded for these guarantees as the fair value of secured real estate assets exceeded the outstanding notes payable. At March 31, 2012 and December 31, 2011, we have not provided guarantees on bank and seller financing secured notes payable of $31.0 million and $44.2 million, respectively, or on notes payable to joint ventures’ partners of $7.3 million and $48.3 million, respectively.

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Variable Interest Entities

3 Months Ended

Mar. 31, 2012

Variable Interest Entities

9. Variable Interest Entities

ASC 810 requires a VIE to be consolidated in financial statements of a company if it is the primary beneficiary of the VIE. Accordingly, the primary beneficiary has the power to direct activities of the VIE that most significantly impact the VIE’s economic performance, and the obligation to absorb its losses or the right to receive its benefits. All VIEs with which we were involved at March 31, 2012 and December 31, 2011 were evaluated to determine the primary beneficiary.

Joint Ventures

We routinely enter into joint ventures for homebuilding activities. Investments in these joint ventures may create a variable interest in a VIE, depending on contractual terms of the arrangement. We analyze our joint ventures in accordance with ASC 810 to determine whether they are VIEs and, if so, whether we are the primary beneficiary. At March 31, 2012 and December 31, 2011, these joint ventures were not consolidated into our consolidated financial statements since they were not VIEs, or in the event that they were VIEs, we were not the primary beneficiary.

At March 31, 2012 and December 31, 2011, we had a variable interest in a joint venture in which we do not hold a direct, or indirect, investment, and the joint venture was determined to be a VIE. The joint venture, Shea/Baker Ranch Associates, LLC (“Baker Ranch”), is owned 50% by an affiliate and 50% by a third-party. We provided an unconditional loan-to-value maintenance guarantee on Baker Ranch’s outstanding bank notes payable which, at March 31, 2012 and December 31, 2011, was $25.4 million. We have not recorded a liability for this obligation as the fair value of the secured real estate assets exceeded the outstanding notes payable (see Note 16).

In accordance with ASC 810, we determined we were not the primary beneficiary of Baker Ranch because we did not have the power to direct activities that most significantly impact the economic performance of Baker Ranch, such as determining or limiting the scope or purpose of the entity, selling or transferring property owned or controlled by the entity, and arranging financing for the entity.

Land Option Contracts

We enter into land option contracts to procure land for home construction. Use of land option and similar contracts allows us to reduce market risks associated with direct land ownership and development, reduces capital and financial commitments, including interest and other carrying costs, and minimizes land inventory. Under these contracts, we pay a specified deposit for the right to purchase land, usually at a predetermined price. Under the requirements of ASC 810, certain contracts may create a variable interest with the land seller.

In compliance with ASC 810, we analyzed our land option and similar contracts to determine if respective land sellers are VIEs and, if so, if we are the primary beneficiary. Although we do not have legal title to the optioned land, ASC 810 requires us to consolidate a VIE if we are the primary beneficiary. At March 31, 2012 and December 31, 2011, we determined we were not the primary beneficiary of such VIEs because we did not have the power to direct activities of the VIE that most significantly impact the VIE’s economic performance, such as selling, transferring or developing land owned by the VIE.

At March 31, 2012, we had $6.0 million of refundable and non-refundable cash deposits associated with land option contracts with unconsolidated VIEs, having an $83.5 million remaining purchase price and subject to a specific performance clause. We also had $8.1 million of refundable and non-refundable cash deposits associated with land option contracts that were not with VIEs, having a $121.6 million remaining purchase price.

Our loss exposure on land option contracts consisted of non-refundable deposits, which were $14.0 million and $14.2 million at March 31, 2012 and December 31, 2011, respectively, and were included in inventory in the consolidated balance sheets.

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Notes Payable

3 Months Ended

Mar. 31, 2012

Notes Payable

11. Notes Payable

At March 31, 2012 and December 31, 2011, notes payable were as follows:

	March 31, 2012		December 31, 2011
	(In thousands)
$750,000 senior secured notes, due May 2019 at 8.625%	$	750,000	$	750,000
Promissory notes, interest ranging 1% to 6%, maturing through 2014, secured by deeds of trust on inventory		1,374		2,056
Total notes payable	$	751,374	$	752,056

On May 10, 2011, 8.625% senior secured notes were issued in the aggregate principal of $750.0 million (the “Secured Notes”) and the outstanding obligations of the Company’s previous secured notes payable and senior secured subordinated notes payable (the “Secured Facilities”) were paid. Principal and interest paid under the Secured Facilities was $779.6 million and $2.5 million, respectively. Concurrent with payoff of the Secured Facilities, an $88.4 million loss on debt extinguishment was recognized.

The Secured Notes were issued pursuant to Rule 144A and Regulation S, with registration rights. The Secured Notes bear interest at 8.625% paid semi-annually on May 15 and November 15, and do not require principal payments until maturity on May 15, 2019. At March 31, 2012 and December 31, 2011, accrued interest was $24.3 million and $8.1 million, respectively.

Holders of the Secured Notes are entitled to the benefits of a registration rights agreement dated November 14, 2011 (“Registration Rights Agreement”), between the Company and the initial purchasers listed therein. Pursuant to the Registration Rights Agreement, we agreed to file a registration statement with the SEC for an offer to exchange the Secured Notes for a new issuance of substantially identical notes issued under the Securities Act on or before 180 days after May 10, 2011, and to consummate the exchange offer registered thereby on or before 360 days after May 10, 2011. We completed the registration of the Secured Notes with the SEC and the exchange of Secured Notes issued under the Securities Act on May 4, 2012.

Other than the Registration Rights Agreement relating to the Secured Notes described above, we were not subject to any other registration rights agreements with respect to any notes payable.

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Related Party Transactions (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Related Party Transaction [Line Items]
Note receivable from JFSCI	$ 25,635	$ 25,381
Notes receivable from unconsolidated joint ventures	366	25,631
Notes receivable from other related parties	20,749	21,013
Reserves for notes receivable from other related parties	(12,715)	(12,697)
Receivables from related parties	1,302	895
Total receivables from related parties, net	$ 35,337	$ 60,223

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Income Taxes - Additional Information (Detail) (USD $)	3 Months Ended			12 Months Ended
	Mar. 31, 2012	Mar. 31, 2011	Dec. 31, 2011	Dec. 31, 2009 SHI Minimum
Income Taxes [Line Items]
Income tax benefit	$ 752,000	$ 341,000
Deferred tax asset, net	36,700,000
Deferred tax asset valuation			36,700,000
Estimated income tax payment under the Tax Distribution Agreement				60,000,000
Distribution to Partners to fund related payment to IRS				$ 103,000,000

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Changes in Warranty Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Warranty Liability [Line Items]
Balance, beginning of the period	$ 17,358	$ 16,238
Provision for warranties	1,475	1,037
Warranty costs paid	(2,173)	(2,172)
Balance, end of the period	$ 16,660	$ 15,103

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Supplemental Disclosure to Consolidated Statements of Cash Flows (Tables)

3 Months Ended

Mar. 31, 2012

Consolidated Statement of Cash Flow Supplemental Disclosure

Supplemental disclosures to the consolidated statements of cash flows were as follows:

	Three Months Ended March 31,
	2012			2011
	(In thousands)
Supplemental disclosure of cash flow information
Income taxes (refunded) paid	$	(2,445	)	$	26
Interest paid, net of amounts capitalized	$	14		$	3,989
Supplemental disclosure of non-cash activities
Unrealized gain on available-for-sale investments, net	$	1,443		$	680
Reclassification of Deficit Distributions from unconsolidated joint ventures to other liabilities	$	(25	)	$	31
Purchase of land in exchange for note payable	$	319		$	402
Elimination of joint venture inventory, receivables from related parties and other assets	$	(41,600	)	$	0
Elimination of joint venture note payable and other liabilities	$	(1,949	)	$	0
Redemption of Company’s interest in consolidated joint venture and elimination of non-controlling interest, less cash retained by non-controlling interest	$	(39,651	)	$	0

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Inventory Impairment (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012 Project		Mar. 31, 2011 Project
Inventory Disclosure [Line Items]
Inventory impairment	$ 0		$ 618
Remaining carrying value of inventory impaired at end of period	$ 0		$ 1,113
Projects impaired	0		1
Projects evaluated for impairment	140	[1]	148	[1]

[1] Large land parcels not subdivided into communities are counted as one project. Once parcels are subdivided, the project count will increase accordingly.

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Contingencies and Commitments

3 Months Ended

Mar. 31, 2012

Contingencies and Commitments

16. Contingencies and Commitments

Lawsuits, claims and proceedings have been or may be instituted or asserted against us in the normal course of business, including actions brought on behalf of various classes of claimants. We are also subject to local, state and federal laws and regulations related to land development activities, house construction standards, sales practices, employment practices and environmental protection. As a result, we are subject to periodic examinations or inquiry by agencies administering these laws and regulations.

We record a reserve for potential legal claims and regulatory matters when they are probable of occurring and a potential loss is reasonably estimable, and are based on specific facts and circumstances, and we revise these estimates when necessary. At March 31, 2012 and December 31, 2011, we had reserves of $7.0 million and $5.8 million, respectively, net of expected recoveries, relating to these claims and matters, and while their outcome cannot be predicted with certainty, we believe we have appropriately reserved for them. However, if the liability arising from their resolution exceeds their recorded reserves, we could incur additional charges that could be significant.

Due to the inherent difficulty of predicting outcomes of legal claims and related contingencies, we generally cannot predict their ultimate resolution, related timing or eventual loss. If our evaluations indicate loss contingencies that could be material are not probable, but are reasonably possible, we will disclose their nature with an estimate of possible range of losses or a statement that such loss is not reasonably estimable. At March 31, 2012, the range of reasonably possible losses in excess of amounts recorded was not material.

At March 31, 2012 and December 31, 2011, in addition to guarantees on our joint venture’s outstanding borrowings, an unconditional loan-to-value maintenance guarantee was provided, on a joint and several basis, for a secured development loan for Baker Ranch, a related party in which we have no ownership interest (see Note 9). At March 31, 2012 and December 31, 2011, the loan had a $25.4 million outstanding principal balance. A liability was not recorded for this guarantee as the fair value of the secured real estate assets exceeded the outstanding notes payable.

At March 31, 2012 and December 31, 2011, joint and several non-recourse (“bad boy”) guarantees were provided for two secured permanent financing loans of related parties in which we have no ownership interest. The bad boy guarantee may become a liability for us upon a voluntary bankruptcy filing by the related party borrower or occurrence of other “bad” acts, including fraud or a material misrepresentation by the related party borrower. At December 31, 2011, these loans had a $34.1 million outstanding principal balance. In February 2012, one loan matured and we were released as a guarantor. At March 31, 2012, the remaining loan had a $31.2 million outstanding principal balance and matures in September 2012. A liability was not recorded for this guarantee as the probability of payment on this guarantee is remote.

On May 10, 2011, concurrent with issuance of the Secured Notes, we entered into a new $75.0 million letter of credit facility. At March 31, 2012 and December 31, 2011, outstanding letters of credit against the letter of credit facility were $4.2 million and $4.2 million, respectively.

We are required to provide surety bonds that guarantee completion of certain infrastructure serving our homebuilding projects. At March 31, 2012, we had a $68.8 million exposure in connection with $169.7 million of surety bonds issued for our projects. At December 31, 2011, we had a $71.0 million exposure in connection with $178.4 million of surety bonds issued for our projects.

We also provided indemnification for bonds issued by unconsolidated joint ventures and other related party projects in which we have no ownership interest. At March 31, 2012, we had a $29.3 million exposure in connection with $69.0 million of surety bonds issued for unconsolidated joint venture projects, and a $3.1 million exposure in connection with $6.9 million of surety bonds issued for related party projects. At December 31, 2011, we had a $29.3 million exposure in connection with $69.0 million of surety bonds issued for unconsolidated joint venture projects, and a $3.1 million exposure in connection with $6.9 million of surety bonds issued for related party projects.

Certain of our consolidated and joint ventures’ homebuilding projects utilize, and may continue to utilize, community facility district, metro-district and other local government bond financing programs to fund construction or acquisition of infrastructure improvements. Interest and principal on these bonds are typically paid from taxes and assessments levied on homeowners following the sale of new homes within the project. We have also entered into credit support arrangements where we make interest and principal payments on these bonds if the taxes and assessments levied on homeowners are insufficient to cover such obligations. Furthermore, reimbursement of these payments to us is dependent on the district or local government’s ability to generate sufficient tax and assessment revenues from the sale of new homes.

In December 2011, Vistancia, LLC, a consolidated joint venture, sold its remaining interest in an unconsolidated joint venture. As a condition of sale, the Company effectively remains an 8.33% guarantor on certain community facility district bond obligations to which the Company must meet a calculated tangible net worth; otherwise, the Company is required to fund collateral to the bond issuer. At March 31, 2012 and December 31, 2011, the Company exceeded the minimum tangible net worth requirement.

In certain consolidated homebuilding projects, we have contractual obligations to purchase and receive water system connection rights which, at March 31, 2012 and December 31, 2011, were $36.7 million. These water system connection rights are held and then transferred to homebuyers upon closing of their home or transferred upon sale of land to the respective buyer. These water system connection rights can also be sold or leased but generally only within the local jurisdiction.

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Investments (Tables)

3 Months Ended

Mar. 31, 2012

Summary of Investments

At March 31, 2012 and December 31, 2011, investments were as follows:

	March 31, 2012
	Cost / Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Debt securities:
Corporate obligations	$	20,520	$	260	$	0	$	20,780
Mortgage/asset-backed securities		69		9		0		78
Private debt obligations (a)		1,726		11,780		0		13,506
Total debt securities		22,315		12,049		0		34,364
Equity securities		4		6		0		10
Total investments	$	22,319	$	12,055	$	0	$	34,374

	December 31, 2011
	Cost / Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Debt securities:
Corporate obligations	$	20,747	$	158	$	(39	)	$	20,866
Mortgage/asset-backed securities		101		10		0			111
Private debt obligations (a)		1,742		9,700		(2	)		11,440
Total debt securities		22,590		9,868		(41	)		32,417
Equity securities		4		7		0			11
Total investments	$	22,594	$	9,875	$	(41	)	$	32,428

(a) Through December 31, 2009, certain private debt obligations experienced other-than-temporary losses and $13.2 million of impairments were recorded. Unrealized gains of private debt obligations are stated as the difference between their fair value and cost basis, net of impairment.

Contractual Maturities of Debt Securities Classified as Available-for-Sale

At March 31, 2012, the contractual maturities of debt securities classified as available-for-sale were as follows:

	March 31, 2012
	Cost		Fair Value
	(In thousands)
Due in one year or less	$	20,100	$	20,325
Due after one year through five years		438		524
Due after five years through ten years		920		5,895
Due after ten years		788		7,542
Mortgage/asset-backed securities		69		78
Total	$	22,315	$	34,364

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Accounts and Other Receivables (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Accounts and Other Receivables [Line Items]
Insurance receivables	$ 103,980	$ 109,390
Escrow receivables	1,842	5,815
Notes receivable	4,001	3,566
Other receivables	5,460	4,937
Reserve	(3,016)	(3,019)
Total accounts and other receivables, net	$ 112,267	$ 120,689

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Summary of Investments (Parenthetical) (Detail) (Private Debt Obligations, USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2009	Dec. 31, 2008
Private Debt Obligations
Schedule of Available-for-sale Securities [Line Items]
Other than temporary losses impairment on available-for-sale securities	$ 13.2	$ 13.2

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Condensed Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Operating activities
Net loss	$ (198)	$ (8,200)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Equity in (income) loss from joint ventures	(67)	393
Net gain on sale of available-for-sale investments	(23)	(139)
Depreciation and amortization expense	1,812	1,547
Impairment of inventory	0	618
Net interest capitalized on investment in joint ventures	(177)	(440)
Distributions of earnings from joint ventures	500	0
Changes in operating assets and liabilities:
Restricted cash	(168)	(1,092)
Receivables and other assets	8,749	1,751
Inventory	(3,908)	(30,576)
Payables and other liabilities	3,240	(2,032)
Net cash provided by (used in) operating activities	9,760	(38,170)
Investing activities
Proceeds from sale of available-for-sale investments	203	294
Net (increase) decrease in promissory notes from related parties	(108)	11,327
Investments in joint ventures	(450)	(1,148)
Distributions from joint ventures	3	700
Other investing activities	(69)	(238)
Net cash (used in) provided by investing activities	(421)	10,935
Financing activities
Repayments on revolving lines of credit	0	(848)
Principal payments to financial institutions and others	(601)	(20,439)
Accrued interest on notes payable	0	1,368
Amortization of notes payable discount	0	3,797
Contributions from non-controlling interests	1,746	0
Distributions to non-controlling interests	(344)	(90)
Cash retained by non-controlling interests for the redemption of the Company's interest in consolidated joint venture	(168)	0
Net cash provided by (used in) financing activities	633	(16,212)
Net increase (decrease) in cash and cash equivalents	9,972	(43,447)
Cash and cash equivalents at beginning of period	268,366	166,874
Cash and cash equivalents at end of period	$ 278,338	$ 123,427

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Fair Value Disclosures

3 Months Ended

Mar. 31, 2012

Fair Value Disclosures

5. Fair Value Disclosures

ASC 820, Fair Value Measurement, defines fair value as the price that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at measurement date and requires assets and liabilities carried at fair value to be classified and disclosed in the following three categories:

• Level 1 — Quoted prices for identical instruments in active markets

• Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are inactive; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets at measurement date

• Level 3 — Valuations derived from techniques where one or more significant inputs or significant value drivers are unobservable in active markets at measurement date

The financial instruments measured at fair value on a recurring basis were as follows:

	March 31, 2012
Description	Level 1		Level 2		Level 3		Total
	(In thousands)
Debt securities	$	17,243	$	4,540	$	12,581	$	34,364
Equity securities		0		10		0		10
Total investments	$	17,243	$	4,550	$	12,581	$	34,374

	December 31, 2011
Description	Level 1		Level 2		Level 3		Total
		(In thousands)
Debt securities	$	17,186	$	4,727	$	10,504	$	32,417
Equity securities		0		11		0		11
Total investments	$	17,186	$	4,738	$	10,504	$	32,428

Level 1 financial instruments are debt securities in which fair values were determined from quoted prices in an active market. Level 2 financial instruments are debt and equity securities in which fair values were determined from quoted prices in an inactive market or for similar instruments in an active market. Level 3 financial instruments are private debt securities where fair value was determined using a cash flow model that considered estimated interest rates, discount rates, prepayments and defaults.

The Company uses a third-party service provider to value its Level 3 financial instruments. Significant changes in the pricing of these instruments are compared to activity of similar financial instruments, or general market conditions, for reasonableness. At March 31, 2012, the unobservable inputs used in the valuation of Level 3 financial instruments were as follows:

	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted  Average)
				Constant prepayment rate		15% (15%)
Private debt obligations	$	12,581	Discounted cash flow	Probability of default		2%   (2%)
				Recovery rate		50% - 70%  (66%)

At March 31, 2012, the summary of changes in fair value of Level 3 financial instruments was as follows:

	Private Debt Obligations
		(In thousands)
Fair value at December 31, 2011	$	10,504
Unrealized gains, included in other comprehensive income (loss)		2,077
Fair value at March 31, 2012	$	12,581

At March 31, 2012 and December 31, 2011, as required by ASC 825, Financial Instruments, the following presents net book values and estimated fair values of notes payable.

	March 31, 2012				December 31, 2011
	Net Book Value		Estimated Fair Value		Net Book Value		Estimated Fair Value
	(In thousands)
$750,000 senior secured notes	$	750,000	$	772,500	$	750,000	$	697,500
Secured promissory notes	$	1,374	$	1,374	$	2,056	$	2,056

The $750.0 million senior secured notes are level 2 financial instruments in which fair value was based on quoted market prices at the end of the period in an inactive market.

The Company’s other financial instruments consist primarily of cash and cash equivalents, restricted cash, accounts and other receivables, accounts payable, other liabilities and secured promissory notes. Book values of these financial instruments approximate fair value due to their relatively short-term nature.

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Notes Payable (Parenthetical) (Detail)	Mar. 31, 2012	Dec. 31, 2011
Senior Secured Notes 8.625 Percent Due May 2019
Debt Instrument [Line Items]
Interest rate	8.625%	8.625%
Maturity period	2019-05	2019-05
Promissory Notes Maturing 2014
Debt Instrument [Line Items]
Maturity year	2014
Promissory Notes Maturing 2014 | Minimum
Debt Instrument [Line Items]
Interest rate	1.00%
Promissory Notes Maturing 2014 | Maximum
Debt Instrument [Line Items]
Interest rate	6.00%

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Supplemental Disclosures to Consolidated Statements of Cash Flows (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Supplemental disclosure of cash flow information
Income taxes (refunded) paid	$ (2,445)	$ 26
Interest paid, net of amounts capitalized	14	3,989
Supplemental disclosure of non-cash activities
Unrealized gain on available-for-sale investments, net	1,443	680
Reclassification of Deficit Distributions from unconsolidated joint ventures to other liabilities	(25)	31
Purchase of land in exchange for note payable	319	402
Elimination of joint venture inventory, receivables from related parties and other assets	(41,600)	0
Elimination of joint venture note payable and other liabilities	(1,949)	0
Redemption of Company's interest in consolidated joint venture and elimination of non-controlling interest, less cash retained by non-controlling interest	$ (39,651)	$ 0

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Fair Value Disclosures (Tables)

3 Months Ended

Mar. 31, 2012

Financial Instruments Measured at Fair Value on Recurring Basis

The financial instruments measured at fair value on a recurring basis were as follows:

	March 31, 2012
Description	Level 1		Level 2		Level 3		Total
	(In thousands)
Debt securities	$	17,243	$	4,540	$	12,581	$	34,364
Equity securities		0		10		0		10
Total investments	$	17,243	$	4,550	$	12,581	$	34,374

	December 31, 2011
Description	Level 1		Level 2		Level 3		Total
		(In thousands)
Debt securities	$	17,186	$	4,727	$	10,504	$	32,417
Equity securities		0		11		0		11
Total investments	$	17,186	$	4,738	$	10,504	$	32,428

Unobservable Inputs Used in Valuation of Level 3 Financial Instruments

The Company uses a third-party service provider to value its Level 3 financial instruments. Significant changes in the pricing of these instruments are compared to activity of similar financial instruments, or general market conditions, for reasonableness. At March 31, 2012, the unobservable inputs used in the valuation of Level 3 financial instruments were as follows:

	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted  Average)
				Constant prepayment rate		15% (15%)
Private debt obligations	$	12,581	Discounted cash flow	Probability of default		2%   (2%)
				Recovery rate		50% - 70%  (66%)

Summary of Changes in Fair Value of Level 3 Financial Instruments

At March 31, 2012, the summary of changes in fair value of Level 3 financial instruments was as follows:

	Private Debt Obligations
		(In thousands)
Fair value at December 31, 2011	$	10,504
Unrealized gains, included in other comprehensive income (loss)		2,077
Fair value at March 31, 2012	$	12,581

Net Book Values and Estimated Fair Values of Notes Payable

At March 31, 2012 and December 31, 2011, as required by ASC 825, Financial Instruments, the following presents net book values and estimated fair values of notes payable.

	March 31, 2012				December 31, 2011
	Net Book Value		Estimated Fair Value		Net Book Value		Estimated Fair Value
	(In thousands)
$750,000 senior secured notes	$	750,000	$	772,500	$	750,000	$	697,500
Secured promissory notes	$	1,374	$	1,374	$	2,056	$	2,056

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Condensed Consolidating Balance Sheet (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012		Dec. 31, 2011		Mar. 31, 2011		Dec. 31, 2010
Assets
Cash and cash equivalents	$ 278,338		$ 268,366		$ 123,427		$ 166,874
Restricted cash	13,886		13,718
Investments	34,374		32,428
Accounts and other receivables, net	112,267		120,689
Receivables from related parties, net	35,337		60,223
Inventory	770,734		783,810
Investments in joint ventures	17,558		17,870
Investments in subsidiaries	0		0
Property and equipment, net	2,005		1,992
Other assets, net	28,201		29,020
Total assets	1,292,700		1,328,116
Liabilities:
Notes payable	751,374		752,056
Payables to related parties	3,332		2,343
Accounts payable	36,005		46,063
Other liabilities	211,158		199,651
Intercompany	0		0
Total liabilities	1,001,869		1,000,113
SHLP equity:
Owners' equity	282,520		294,511
Accumulated other comprehensive income	7,835		6,392
Total SHLP equity	290,355		300,903
Non-controlling interests	476		27,100
Total equity	290,831		328,003		424,703		432,313
Total liabilities and equity	1,292,700		1,328,116
SHLP Corp
Assets
Cash and cash equivalents	167,638	[1],[2]	157,511	[1],[3]	34,256	[4]	99,511	[4]
Restricted cash	11,889	[2]	11,747	[3]
Investments	0	[2]	0	[3]
Accounts and other receivables, net	85,986	[2]	94,949	[3]
Receivables from related parties, net	9,269	[2]	8,147	[3]
Inventory	598,206	[2]	574,832	[3]
Investments in joint ventures	4,022	[2]	4,141	[3]
Investments in subsidiaries	667,337	[2]	698,886	[3]
Property and equipment, net	376	[2]	380	[3]
Other assets, net	18,747	[2]	18,851	[3]
Total assets	1,563,470	[2]	1,569,444	[3]
Liabilities:
Notes payable	751,374	[2]	751,457	[3]
Payables to related parties	20	[2]	0	[3]
Accounts payable	24,539	[2]	30,781	[3]
Other liabilities	152,811	[2]	140,992	[3]
Intercompany	344,371	[2]	345,311	[3]
Total liabilities	1,273,115	[2]	1,268,541	[3]
SHLP equity:
Owners' equity	282,520	[2]	294,511	[3]
Accumulated other comprehensive income	7,835	[2]	6,392	[3]
Total SHLP equity	290,355	[2]	300,903	[3]
Non-controlling interests	0	[2]	0	[3]
Total equity	290,355	[2]	300,903	[3]
Total liabilities and equity	1,563,470	[2]	1,569,444	[3]
Guarantor Subsidiaries
Assets
Cash and cash equivalents	97,046		96,100		76,576		54,393
Restricted cash	1,549		1,538
Investments	34,374		32,428
Accounts and other receivables, net	25,741		22,208
Receivables from related parties, net	26,046		26,753
Inventory	172,265		173,333
Investments in joint ventures	1,269		1,265
Investments in subsidiaries	84,309		85,118
Property and equipment, net	1,629		1,612
Other assets, net	9,417		10,057
Total assets	453,645		450,412
Liabilities:
Notes payable	0		0
Payables to related parties	0		0
Accounts payable	11,178		15,453
Other liabilities	40,201		36,954
Intercompany	(364,155)		(365,259)
Total liabilities	(312,776)		(312,852)
SHLP equity:
Owners' equity	758,586		756,872
Accumulated other comprehensive income	7,835		6,392
Total SHLP equity	766,421		763,264
Non-controlling interests	0		0
Total equity	766,421		763,264
Total liabilities and equity	453,645		450,412
Non-Guarantor Subsidiaries
Assets
Cash and cash equivalents	13,654		14,755		12,595		12,970
Restricted cash	448		433
Investments	0		0
Accounts and other receivables, net	30,995		39,520
Receivables from related parties, net	22		25,323
Inventory	1,410		36,857
Investments in joint ventures	12,267		12,464
Investments in subsidiaries	97,256		98,555
Property and equipment, net	0		0
Other assets, net	37		112
Total assets	156,089		228,019
Liabilities:
Notes payable	0		599
Payables to related parties	0		1
Accounts payable	329		377
Other liabilities	50,512		58,931
Intercompany	22,291		21,714
Total liabilities	73,132		81,622
SHLP equity:
Owners' equity	82,481		119,297
Accumulated other comprehensive income	0		0
Total SHLP equity	82,481		119,297
Non-controlling interests	476		27,100
Total equity	82,957		146,397
Total liabilities and equity	156,089		228,019
Consolidation, Eliminations
Assets
Cash and cash equivalents	0		0		0		0
Restricted cash	0		0
Investments	0		0
Accounts and other receivables, net	(30,455)		(35,988)
Receivables from related parties, net	0		0
Inventory	(1,147)		(1,212)
Investments in joint ventures	0		0
Investments in subsidiaries	(848,902)		(882,559)
Property and equipment, net	0		0
Other assets, net	0		0
Total assets	(880,504)		(919,759)
Liabilities:
Notes payable	0		0
Payables to related parties	3,312		2,342
Accounts payable	(41)		(548)
Other liabilities	(32,366)		(37,226)
Intercompany	(2,507)		(1,766)
Total liabilities	(31,602)		(37,198)
SHLP equity:
Owners' equity	(841,067)		(876,169)
Accumulated other comprehensive income	(7,835)		(6,392)
Total SHLP equity	(848,902)		(882,561)
Non-controlling interests	0		0
Total equity	(848,902)		(882,561)
Total liabilities and equity	$ (880,504)		$ (919,759)

[1] Includes Shea Homes Funding Corp.; no significant activity occurred in 2012.

[2] Includes Shea Homes Funding Corp., whose financial position at March 31, 2012 was not material.

[3] Includes Shea Homes Funding Corp., whose financial position at December 31, 2011 was not material.

[4] Shea Homes Funding Corp. was formed on April 26, 2011, therefore no amounts are included in any financial statement before this date.

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Summary of Significant Accounting Policies - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2012
Minimum
Significant Accounting Policies [Line Items]
Assets fair value discount rates	10.00%
Operations claims standard warranty period	1 year
Maximum
Significant Accounting Policies [Line Items]
Assets fair value discount rates	25.00%
Operations claims standard warranty period	2 years
Completed operations extended warranty period	12 years

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Owners' Equity

3 Months Ended

Mar. 31, 2012

Owners' Equity

15. Owners’ Equity

Owners’ equity consists of partners’ preferred and common capital. Common capital is comprised of limited partners with a collective 78.38% ownership and general partner with a 20.62% ownership. Preferred capital is comprised of limited partners with either series B (“Series B”) or series D (“Series D”) classification. Series B holders have no ownership interest but earn a preferred return at Prime less 2.05% (1.2% at March 31, 2012 and December 31, 2011) per annum on unreturned capital balances. At March 31, 2012 and December 31, 2011, accumulated undistributed preferred returns for Series B holders were $19.4 million and $18.9 million, respectively. Series D holders have a 1% ownership interest and earn a preferred return at 7% per annum on unreturned preferred capital balances. At March 31, 2012 and December 31, 2011, accumulated undistributed preferred returns for Series D holders were $43.3 million and $40.3 million, respectively.

Net income is allocated to Partners in a priority order that considers previously allocated net losses and preferred return considerations and, thereafter, in proportion to their respective ownership interests. Net loss is allocated in a priority order to Partners generally in proportion to their ownership interests and adjusted capital account balances, and, thereafter, to the general partner.

The general partner, in its sole discretion, may make additional capital contributions or accept additional capital contributions from the limited partners. Cash distributions are made to Partners in proportion to their unpaid preferred returns and, thereafter, in proportion to their ownership interests. Distributions to Partners are made at the discretion of the general partner, including payment of personal income taxes related to the Company or other entities under control of Shea family members. Similarly, distributions to Partners from other entities under control of Shea family members, such as JFSCI, are used for payment of personal incomes taxes related to the Company and other uses.