10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended June 30, 2018

OR

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

For the transition period from                    to

Commission File Number 000-08822

Cavco Industries, Inc.

(Exact name of registrant as specified in its charter)

Delaware	56-2405642
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
3636 North Central Avenue, Suite 1200 Phoenix, Arizona 85012
(Address of principal executive offices, including zip code)

602-256-6263

(Registrant's telephone number, including area code)

1001 North Central Avenue, Suite 800

Phoenix, Arizona 85004

(Former name, former address and former fiscal year, if changed since last year)

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  ý    No  ¨

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  ý    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a small 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	ý
Non-accelerated filer	¨ (Do not check if a smaller reporting company)	Smaller reporting company	¨
Emerging Growth Company	¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

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

As of August 3, 2018, 9,068,067 shares of Registrant's Common Stock, $.01 par value, were outstanding.

CAVCO INDUSTRIES, INC.

FORM 10-Q

June 30, 2018

TABLE OF CONTENTS

	Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets as of June 30, 2018 (unaudited) and March 31, 2018	1
Consolidated Statements of Comprehensive Income (unaudited) for the three months ended June 30, 2018 and July 1, 2017	2
Consolidated Statements of Cash Flows (unaudited) for the three months ended June 30, 2018 and July 1, 2017	3
Notes to Consolidated Financial Statements	4
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3. Quantitative and Qualitative Disclosures About Market Risk	38
Item 4. Controls and Procedures	38
PART II. OTHER INFORMATION
Item 1. Legal Proceedings	39
Item 1A. Risk Factors	39
Item 6. Exhibits	39
SIGNATURES	40

PART 1. FINANCIAL INFORMATION

Item 1. Financial Statements

CAVCO INDUSTRIES, INC.

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except per share amounts)

	June 30, 2018			March 31, 2018
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	177,487		$	186,766
Restricted cash, current	12,918			11,228
Accounts receivable, net	39,922			35,043
Short-term investments	14,268			11,866
Current portion of consumer loans receivable, net	34,450			31,096
Current portion of commercial loans receivable, net	10,902			5,481
Inventories	110,437			109,152
Prepaid expenses and other current assets	28,853			27,961
Total current assets	429,237			418,593
Restricted cash	1,066			1,264
Investments	32,879			33,573
Consumer loans receivable, net	63,707			63,855
Commercial loans receivable, net	19,731			11,120
Property, plant and equipment, net	64,005			63,355
Goodwill and other intangibles, net	82,936			83,020
Total assets	$	693,561		$	674,780
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	24,615		$	23,785
Accrued liabilities	126,774			126,500
Current portion of securitized financings and other	24,237			26,044
Total current liabilities	175,626			176,329
Securitized financings and other	33,884			33,768
Deferred income taxes	8,364			7,577
Stockholders' equity:
Preferred stock, $.01 par value; 1,000,000 shares authorized; No shares issued or outstanding	—			—
Common stock, $.01 par value; 40,000,000 shares authorized; Outstanding 9,061,306 and 9,044,858 shares, respectively	91			90
Additional paid-in capital	244,627			246,197
Retained earnings	231,147			209,381
Accumulated other comprehensive income (loss)	(178		)	1,438
Total stockholders' equity	475,687			457,106
Total liabilities and stockholders' equity	$	693,561		$	674,780

See accompanying Notes to Consolidated Financial Statements

1

CAVCO INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in thousands, except per share amounts)

(Unaudited)

	Three Months Ended
	June 30, 2018			July 1, 2017
Net revenue	$	246,403		$	206,816
Cost of sales	194,927			164,850
Gross profit	51,476			41,966
Selling, general and administrative expenses	29,213			26,305
Income from operations	22,263			15,661
Interest expense	(972		)	(1,048		)
Other income, net	2,845			1,038
Income before income taxes	24,136			15,651
Income tax expense	(4,445		)	(3,898		)
Net income	$	19,691		$	11,753
Comprehensive income:
Net income	$	19,691		$	11,753
Reclassification adjustment for net gains realized in income	—			(76		)
Applicable income taxes	—			27
Net change in unrealized position of investments	6			(833		)
Applicable income taxes	(1		)	327
Comprehensive income	$	19,696		$	11,198
Net income per share:
Basic	$	2.18		$	1.30
Diluted	$	2.12		$	1.28
Weighted average shares outstanding:
Basic	9,048,579			9,006,999
Diluted	9,267,048			9,162,491

See accompanying Notes to Consolidated Financial Statements

2

CAVCO INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

(Unaudited)

	Three Months Ended
	June 30, 2018			July 1, 2017
OPERATING ACTIVITIES
Net income	$	19,691		$	11,753
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,104			974
Provision for credit losses	75			27
Deferred income taxes	640			(62		)
Stock-based compensation expense	599			513
Non-cash interest income, net	(139		)	(254		)
Gain on sale of property, plant and equipment, net	(40		)	(64		)
Gain on investments and sale of loans, net	(3,361		)	(2,110		)
Changes in operating assets and liabilities:
Accounts receivable	(4,879		)	(1,974		)
Consumer loans receivable originated	(33,617		)	(34,389		)
Proceeds from sales of consumer loans	28,206			29,252
Principal payments on consumer loans receivable	3,462			3,088
Inventories	(1,285		)	(3,727		)
Prepaid expenses and other current assets	(282		)	2,426
Commercial loans receivable	(14,103		)	(469		)
Accounts payable and accrued liabilities	1,814			(3,280		)
Net cash (used in) provided by operating activities	(2,115		)	1,704
INVESTING ACTIVITIES
Purchases of property, plant and equipment	(1,679		)	(594		)
Payments for Lexington Homes, net	—			(564		)
Proceeds from sale of property, plant and equipment	49			387
Purchases of investments	(2,026		)	(1,646		)
Proceeds from sale of investments	2,083			1,809
Net cash used in investing activities	(1,573		)	(608		)
FINANCING ACTIVITIES
Payments from exercise of stock options	(2,168		)	(1,780		)
Proceeds from secured financings and other	226			1,505
Payments on securitized financings	(2,157		)	(2,103		)
Net cash used in financing activities	(4,099		)	(2,378		)
Net decrease in cash, cash equivalents and restricted cash	(7,787		)	(1,282		)
Cash, cash equivalents and restricted cash at beginning of the period	199,258			144,839
Cash, cash equivalents and restricted cash at end of the period	$	191,471		$	143,557
Supplemental disclosures of cash flow information:
Cash paid for income taxes	$	6,170		$	2,118
Cash paid for interest	$	663		$	767
Assets acquired under capital lease	$	—		$	1,749

See accompanying Notes to Consolidated Financial Statements

3

CAVCO INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. Basis of Presentation

The accompanying unaudited Consolidated Financial Statements of Cavco Industries, Inc., and its subsidiaries (collectively, the "Company" or "Cavco"), have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") for Quarterly Reports on Form 10-Q and Article 10 of SEC Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to such rules and regulations.

In the opinion of management, these statements include all of the normal recurring adjustments necessary to fairly state the Company's Consolidated Financial Statements. Certain prior period amounts have been reclassified to conform to current period classification. The Company has evaluated subsequent events after the balance sheet date through the date of the filing of this report with the SEC; there were no disclosable subsequent events. These Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the Notes to the Consolidated Financial Statements ("Notes") included in the Company's 2018 Annual Report on Form 10-K for the year ended March 31, 2018, filed with the SEC on May 30, 2018 ("Form 10-K").

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and the accompanying Notes. Actual results could differ from those estimates. The Consolidated Statements of Comprehensive Income and Consolidated Statements of Cash Flows for the interim periods are not necessarily indicative of the results or cash flows for the full year. The Company operates on a 52-53 week fiscal year ending on the Saturday nearest to March 31 of each year. Each fiscal quarter consists of 13 weeks, with an occasional fourth quarter extending to 14 weeks, if necessary, for the fiscal year to end on the Saturday nearest to March 31. The Company's current fiscal year will end on March 30, 2019.

The Company operates principally in two segments: (1) factory-built housing, which includes wholesale and retail systems-built housing operations, and (2) financial services, which includes manufactured housing consumer finance and insurance. The Company designs and builds a wide variety of affordable manufactured homes, modular homes and park model RVs in 20 factories located throughout the United States, which are sold to a network of independent retailers, through the Company's 39 Company-owned retail stores and to community owners and developers. Our financial services group is comprised of a mortgage subsidiary, CountryPlace Acceptance Corp. ("CountryPlace"), and an insurance subsidiary, Standard Casualty Co. ("Standard Casualty"). CountryPlace is an approved Federal National Mortgage Association ("FNMA" or "Fannie Mae") and Federal Home Loan Mortgage Corporation ("FHLMC" or "Freddie Mac") seller/servicer, and a Government National Mortgage Association ("GNMA" or "Ginnie Mae") mortgage-backed securities issuer which offers conforming mortgages, non-conforming mortgages and home-only loans to purchasers of factory-built homes. Standard Casualty provides property and casualty insurance to owners of manufactured homes.

Adoption of New Accounting Standards.

In May 2014, the Federal Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASC 606"), which requires entities to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We adopted ASC 606 using the modified retrospective method for contracts that were not completed as of April 1, 2018, and recorded a reduction of $600,000 to accrued liabilities and a corresponding increase to retained earnings related to gross margin on home sales that were previously deferred for the cumulative effect of the adoption. Prior periods were not restated. There were no significant changes to processes or internal controls as a result of the adoption of ASC 606. See Note 2 for additional information.

4

In January 2016, the FASB issued ASU 2016-01, Financial Instruments (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"). The Company adopted ASU 2016-01 on April 1, 2018 using the modified retrospective transition method. Upon adoption, we reclassified $1.6 million in gains, net of tax, related to available-for-sale equity investment securities from accumulated other comprehensive income to retained earnings as a cumulative-effect adjustment. Under the new guidance, these securities will continue to be measured at fair value; however, the changes in unrealized net holding gains and losses will be reported in earnings. Comparative information continues to be reported under the accounting standards in effect for the period. The effect of the change for the three months endedJune 30, 2018 was an increase to income before income taxes of approximately $1.6 million, which is either included in Net revenue or Other income, net on the Consolidated Statements of Comprehensive Income, depending on the nature of the investment.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) ("ASU 2016-18"), which requires restricted cash to be included with cash and cash equivalents when reconciling beginning and ending cash on the statement of cash flows. We adopted ASU 2016-18 on April 1, 2018 using the retrospective transition method. The comparative information in our Consolidated Statements of Cash Flows has been adjusted accordingly. The impact from adoption of this guidance was not material to our Consolidated Statements of Cash Flows. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the accompanying Consolidated Balance Sheets to the combined amounts shown on the Consolidated Statements of Cash Flows (in thousands):

	June 30, 2018		July 1, 2017
Cash and cash equivalents	$	177,487	$	129,509
Restricted cash, current	12,918		13,323
Restricted cash	1,066		725
	$	191,471	$	143,557

Accounting Standards Issued But Not Yet Adopted.

In February 2016, the FASB issued ASU 2016-02, Leases(Topic 842) ("ASU 2016-02"). ASU 2016-02 will be effective beginning with the first quarter of the Company's fiscal year 2020, with early adoption permitted. The amendments require balance sheet recognition of leased assets and lease liabilities for most leases, and recognition of expenses in the income statement in a manner similar to current accounting treatment. In addition, disclosures of key information about leasing arrangements are required. Upon adoption, leases will be recognized and measured at the beginning of the earliest period presented using a modified retrospective approach. The Company does not plan to early adopt the guidance and is currently evaluating the effect ASU 2016-02 will have on the Company's Consolidated Financial Statements and disclosures.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). ASU 2016-13 changes the impairment model for most financial assets and certain other instruments to base measurement on expected losses through a forward-looking model rather than a model based on incurred losses. The guidance also requires increased disclosures. ASU 2016-13 will be effective beginning with the first quarter of the Company's fiscal year 2021 and is to be applied using a modified retrospective transition method with early adoption permitted. The Company does not plan to early adopt the guidance and is currently evaluating the effect ASU 2016-13 will have on the Company's Consolidated Financial Statements and disclosures.

In March 2017, the FASB issued ASU 2017-08, Receivables — Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities ("ASU 2017-08"), which requires the premium on callable debt securities to be amortized to the earliest call date as opposed to the contractual life of the security. ASU 2017-08 will be effective beginning with the first quarter of the Company's fiscal year 2020. The Company is currently evaluating the effect ASU 2017-08 will have on the Company's Consolidated Financial Statements and disclosures.

5

From time to time, new accounting pronouncements are issued by the FASB and other regulatory bodies that are adopted by the Company as of the specified effective dates. Unless otherwise discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company's Consolidated Financial Statements upon adoption.

For a description of other significant accounting policies used by the Company in the preparation of its Consolidated Financial Statements, please refer to Note 1 of the Notes to Consolidated Financial Statements on Form 10-K.

2. Revenue from Contracts with Customers

As discussed in Note 1, we adopted ASC 606 on April 1, 2018. Our revenue recognition practices under ASC 606 do not differ materially from prior practices. Under ASC 606, revenues are recognized when a good or service is transferred to a customer. A good or service is transferred when, or as, the customer obtains control of that good or service. Revenues are based on the consideration we expect to receive in connection with our promises to deliver goods and services to our customers.

Factory-Built Housing Revenue Recognition - Wholesale. Revenue from homes sold to independent retailers is generally recognized when the home is shipped, at which time title passes to the independent retailer and collectability is reasonably assured. Homes sold to independent retailers are generally either paid upon shipment or floor plan financed by the independent retailer through standard industry financing arrangements, which can include repurchase agreements. Manufacturing sales financed under repurchase agreements are reduced by a provision for estimated repurchase obligations (see Note 16).

Prior to the adoption of ASC 606, revenue from homes sold under commercial loan programs involving funds provided by the Company were either deferred until such time that payment for the related commercial loan was received by the Company or recognized when the home was shipped and title transferred, depending on the nature of the program and borrower. Upon adoption of ASC 606, we generally recognize home sales revenue upon shipment and transfer of title, as it is probable that substantially all of the consideration in exchange for the goods or services transferred to the customer will be collected. One consideration under the guidance requires the evaluation of the financing component of the related loan program. If it is determined that the interest rate charged under the loan program is less than the market rate, the Company will reduce the transaction price by an amount for deferred interest. In these cases, interest income will be accrued and recognized over the life of the loan using the effective interest method. A significant amount of the Company's loan programs are offered at market rates.

Factory-Built Housing Revenue Recognition - Retail. Sales by Company-owned retail locations are generally recognized when the customer has entered into a legally binding sales contract, the home is delivered and permanently located at the customer's site, accepted by the customer, title has transferred and funding is assured.

Site Improvements on Retail Sales. Under previous guidance, the Company recorded the sales of subcontracted ancillary services, such as preparation of the home site or other exterior enhancements, net of associated costs. Such services are provided as a convenience to the customer. As the Company is involved in the selection of subcontractors, under ASC 606, we have concluded that it is appropriate to recognize the sale of these ancillary services on a gross basis. The revenue associated with these programs for the three months endedJune 30, 2018 and July 1, 2017 were $6.5 million and $5.1 million, respectively.

Additional Items. Expected consideration, and therefore revenue, reflects reductions for returns, allowances, and other incentives, some of which may be contingent on future events. Additionally, we have a volume rebate program under which certain sales to retailers, builders and developers can qualify for cash rebates generally based on the level of sales attained during a twelve-month period. Volume rebates are accrued at the time of sale and are recorded as a reduction of revenue.

6

In customer contracts for retail sales of manufactured homes, consideration includes certain state and local excise taxes billed to customers when those taxes are levied directly upon us by the taxing authorities. Expected consideration excludes sales and other taxes collected on behalf of taxing authorities. Revenue includes consideration for shipping and other fulfillment activities performed prior to the customer obtaining control of the goods. We also elect to treat consideration for shipping performed as a fulfillment activity.

Practical Expedients and Exemptions. We generally expense sales commissions when incurred because the amortization period would be one year or less. These costs are recorded within selling, general and administrative expenses. In addition, we do not disclose the value of unsatisfied performance obligations for contracts with an expected length of one year or less.

Financial Services Revenue Recognition. Financial services revenue is generally not within the scope of ASC 606, with the exception of insurance agency commissions received from third-party insurance companies. The Company recognizes such revenue upon execution of the insurance policy, where the Company has no future or ongoing obligation.

Disaggregation of Revenue. The following table summarizes customer contract revenues disaggregated by reportable segment and the source of the revenue for the three months endedJune 30, 2018 (in thousands). All revenue from customers is recognized at a point in time, either when the customer takes delivery or when a third-party insurance contract is executed, as more fully discussed above. Other items included in our consolidated revenues are primarily related to financial services, including manufactured housing consumer finance and insurance, which are not within the scope of ASC 606. See Form 10-K for revenue recognition policies related to these items.

	Three Months Ended June 30, 2018
Factory-built housing
U.S. Housing and Urban Development code homes	$	186,316
Modular homes	22,447
Park model RVs	11,727
Other (1)	12,272
Net revenue from factory-built housing	232,762
Financial services
Insurance agency commissions received from third-party insurance companies	632
Other	13,009
Net revenue from financial services	13,641
Total net revenue	$	246,403

(1) Other factory-built housing revenue from ancillary products and services including used homes, freight and other services.

7

Impacts on Consolidated Financial Statements. The impact to our consolidated financial statements as a result of ASC 606 implementation are as follows (in thousands):

	June 30, 2018
Consolidated Balance Sheet	As Reported		Adjustments			Balance without ASC 606 Adoption
Accrued liabilities	$	126,774	$	1,644		$	128,418
Total current liabilities	175,626		1,644			177,270
Deferred income taxes	8,364		(441		)	7,923
Retained earnings	231,147		(1,203		)	229,944
Total stockholders’ equity	475,687		(1,203		)	474,484

	Three Months Ended June 30, 2018
Consolidated Statement of Comprehensive Income	As Reported			Adjustments			Balance without ASC 606 Adoption
Net revenue	$	246,403		$	(13,669	)	$	232,734
Cost of sales	194,927			(12,389		)	182,538
Gross profit	51,476			(1,280		)	50,196
Selling, general and administrative expenses	29,213			(308		)	28,905
Income from operations	22,263			(972		)	21,291
Income before income taxes	24,136			(972		)	23,164
Income tax expense	(4,445		)	225			(4,220		)
Net income	19,691			(747		)	18,944

3. Restricted Cash

Restricted cash consists of the following (in thousands):

	June 30, 2018		March 31, 2018
Cash related to CountryPlace customer payments to be remitted to third parties	$	10,626	$	9,180
Cash related to CountryPlace customer payments on securitized loans to be remitted to bondholders	1,343		1,311
Other restricted cash	2,015		2,001
	$	13,984	$	12,492

Corresponding amounts are recorded in accounts payable and accrued liabilities for customer payments, deposits and other restricted cash.

8

4. Investments

Investments consist of the following (in thousands):

	June 30, 2018		March 31, 2018
Available-for-sale debt securities	$	15,523	$	16,181
Marketable equity securities	12,736		10,405
Non-marketable equity investments	18,888		18,853
	$	47,147	$	45,439

The Company's investments in marketable equity securities consist of common stock holdings of industrial and other companies.

Non-marketable equity investments includes $15.0 million as of June 30, 2018 and March 31, 2018, of contributions to equity-method investments in community-based initiatives that buy and sell our homes and provide home-only financing to residents of certain manufactured home communities. Other non-marketable investments include investments in other distribution operations.

The following tables summarize the Company's available-for-sale debt securities, gross unrealized gains and losses and fair value, aggregated by investment category (in thousands):

	June 30, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury and government debt securities	$	300	$	—	$	(8	)	$	292
Residential mortgage-backed securities	7,334		—		(182		)	7,152
State and political subdivision debt securities	6,038		109		(118		)	6,029
Corporate debt securities	2,076		2		(28		)	2,050
	$	15,748	$	111	$	(336	)	$	15,523

	March 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury and government debt securities	$	300	$	—	$	(7	)	$	293
Residential mortgage-backed securities	7,654		—		(155		)	7,499
State and political subdivision debt securities	6,377		109		(149		)	6,337
Corporate debt securities	2,081		1		(30		)	2,052
	$	16,412	$	110	$	(341	)	$	16,181

9

The following tables show the gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands):

	June 30, 2018
	Less than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Treasury and government debt securities	$	292	$	(8	)	$	—	$	—		$	292	$	(8	)
Residential mortgage-backed securities	3,128		(64		)	4,019		(118		)	7,147		(182		)
State and political subdivision debt securities	1,932		(38		)	2,169		(80		)	4,101		(118		)
Corporate debt securities	1,432		(13		)	365		(15		)	1,797		(28		)
	$	6,784	$	(123	)	$	6,553	$	(213	)	$	13,337	$	(336	)

	March 31, 2018
	Less than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Treasury and government debt securities	$	293	$	(7	)	$	—	$	—		$	293	$	(7	)
Residential mortgage-backed securities	3,185		(52		)	3,909		(103		)	7,094		(155		)
State and political subdivision debt securities	2,224		(40		)	2,180		(109		)	4,404		(149		)
Corporate debt securities	1,384		(12		)	367		(18		)	1,751		(30		)
	$	7,086	$	(111	)	$	6,456	$	(230	)	$	13,542	$	(341	)

Based on the Company's ability and intent to hold the investments for a reasonable period of time sufficient for a forecasted recovery of fair value, the Company does not consider any investments to be other-than-temporarily impaired at June 30, 2018.

The amortized cost and fair value of the Company's investments in debt securities, by contractual maturity, are shown in the table below (in thousands). Expected maturities differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	June 30, 2018
	Amortized Cost		Fair Value
Due in less than one year	$	1,125	$	1,108
Due after one year through five years	3,020		2,934
Due after five years through ten years	930		908
Due after ten years	3,339		3,421
Mortgage-backed securities	7,334		7,152
	$	15,748	$	15,523

10

We recognize investment gains and losses on debt securities when we sell or otherwise dispose of securities on a specific identification method. There were no gross gains or losses realized during the three months ending June 30, 2018. During the three months ending July 1, 2017, there were no gross gains realized and $10,000 in gross losses realized.

Beginning in fiscal year 2019, we recognize unrealized gains and losses on marketable equity securities from changes in market prices during the period as a component of earnings in the Consolidated Statements of Comprehensive Income. The net investment gains and losses for the three months ended June 30, 2018 and July 1, 2017 are as follows (in thousands):

	Three Months Ended June 30, 2018
	June 30, 2018			July 1, 2017
Marketable equity securities:
Gains on securities held	$	1,610		$	—
Losses on securities sold	(40		)	—
Gross realized gains	—			165
Gross realized losses	—			(51		)
Total net gain on marketable equity securities	$	1,570		$	114

5. Inventories

Inventories consist of the following (in thousands):

	June 30, 2018		March 31, 2018
Raw materials	$	38,331	$	36,124
Work in process	13,240		13,670
Finished goods and other	58,866		59,358
	$	110,437	$	109,152

6. Consumer Loans Receivable

The following table summarizes consumer loans receivable (in thousands):

	June 30, 2018			March 31, 2018
Loans held for investment (at Acquisition Date)	$	49,825		$	51,798
Loans held for investment (originated after Acquisition Date)	23,874			21,183
Loans held for sale	14,535			12,830
Construction advances	12,259			11,088
Consumer loans receivable	100,493			96,899
Deferred financing fees and other, net	(1,949		)	(1,551		)
Allowance for loan losses	(387		)	(397		)
Consumer loans receivable, net	$	98,157		$	94,951

The allowance for loan losses is developed at the loan level and allocated to specific individual loans or to impaired loans. A range of probable losses is calculated after giving consideration to, among other things, the loan characteristics, and historical loss experience. The Company then makes a determination of the best estimate within the range of loan losses. The allowance for loan losses reflects the Company’s judgment of the probable loss exposure on its loans held for investment portfolio.

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As of the date of the Palm Harbor acquisition ("Acquisition Date"), the Company determined the excess of the loan pool's scheduled contractual principal and contractual interest payments over all cash flows expected as an amount that includes interest that cannot be accreted into interest income (the non-accretable difference). The cash flow expected to be collected in excess of the carrying value of the acquired loans includes interest that is accreted into interest income over the remaining life of the loans (referred to as accretable yield). Interest income on consumer loans receivable is recognized as net revenue.

	June 30, 2018			March 31, 2018
	(in thousands)
Consumer loans receivable held for investment – contractual amount	$	114,919		$	120,096
Purchase discount
Accretable	(42,873		)	(44,481		)
Non-accretable	(22,214		)	(23,711		)
Less consumer loans receivable reclassified as other assets	(7		)	(106		)
Total acquired consumer loans receivable held for investment, net	$	49,825		$	51,798

Over the life of the acquired loans, the Company estimates cash flows expected to be collected to determine if an allowance for loan loss related to loans acquired subsequent to the Acquisition Date is required. The weighted averages of assumptions used in the calculation of expected cash flows to be collected were as follows:

	June 30, 2018		March 31, 2018
Prepayment rate	16.1	%	16.0	%
Default rate	1.2	%	1.2	%

Assuming there was a 1% unfavorable variation from the expected level, for each key assumption, the expected cash flows for the life of the portfolio, as of June 30, 2018, would decrease by approximately $1.2 million and $3.3 million for the expected prepayment rate and expected default rate, respectively.

The changes in accretable yield on acquired consumer loans receivable held for investment were as follows (in thousands):

	Three Months Ended
	June 30, 2018			July 1, 2017
Balance at the beginning of the period	$	44,481		$	56,686
Accretion	(1,899		)	(2,210		)
Reclassifications from (to) non-accretable discount	291			436
Balance at the end of the period	$	42,873		$	54,912

The consumer loans held for investment had the following characteristics:

	June 30, 2018		March 31, 2018
Weighted average contractual interest rate	8.51	%	8.57	%
Weighted average effective interest rate	8.85	%	9.34	%
Weighted average months to maturity	168		168

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The following table disaggregates CountryPlace's gross consumer loans receivable for each class by portfolio segment and credit quality indicator as of the time of origination (in thousands):

	June 30, 2018
	Consumer Loans Held for Investment
	Securitized 2005		Securitized 2007		Unsecuritized		Construction Advances		Consumer Loans Held For Sale		Total
Asset Class
Credit Quality Indicator (FICO® score)
Chattel loans
0-619	$	439	$	271	$	323	$	—	$	—	$	1,033
620-719	9,668		6,889		10,351		—		—		26,908
720+	10,186		6,139		11,958		—		504		28,787
Other	49		—		408		—		—		457
Subtotal	20,342		13,299		23,040		—		504		57,185
Conforming mortgages
0-619	—		—		155		—		189		344
620-719	—		—		2,232		7,950		8,350		18,532
720+	—		—		298		4,309		5,492		10,099
Other	—		—		116		—		—		116
Subtotal	—		—		2,801		12,259		14,031		29,091
Non-conforming mortgages
0-619	81		398		1,030		—		—		1,509
620-719	1,061		4,151		3,061		—		—		8,273
720+	1,277		2,493		377		—		—		4,147
Other	—		—		278		—		—		278
Subtotal	2,419		7,042		4,746		—		—		14,207
Other loans	—		—		10		—		—		10
	$	22,761	$	20,341	$	30,597	$	12,259	$	14,535	$	100,493

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	March 31, 2018
	Consumer Loans Held for Investment
	Securitized 2005		Securitized 2007		Unsecuritized		Construction Advances		Consumer Loans Held For Sale		Total
Asset Class
Credit Quality Indicator (FICO® score)
Chattel loans
0-619	$	465	$	354	$	330	$	—	$	—	$	1,149
620-719	10,102		7,107		8,587		—		245		26,041
720+	10,594		6,410		11,285		—		155		28,444
Other	49		—		403		—		—		452
Subtotal	21,210		13,871		20,605		—		400		56,086
Conforming mortgages
0-619	—		—		156		141		179		476
620-719	—		—		2,137		6,428		6,479		15,044
720+	—		—		199		4,519		5,663		10,381
Subtotal	—		—		2,608		11,088		12,430		26,126
Non-conforming mortgages
0-619	82		405		1,047		—		—		1,534
620-719	1,120		4,378		3,093		—		—		8,591
720+	1,348		2,526		395		—		—		4,269
Other	—		—		282		—		—		282
Subtotal	2,550		7,309		4,817		—		—		14,676
Other loans	—		—		11		—		—		11
	$	23,760	$	21,180	$	28,041	$	11,088	$	12,830	$	96,899

Loan contracts secured by collateral that is geographically concentrated could experience higher rates of delinquencies, default and foreclosure losses than loan contracts secured by collateral that is more geographically dispersed. As of June 30, 2018, 45.6% of the outstanding principal balance of the consumer loans receivable portfolio is concentrated in Texas and 10.5% is concentrated in Florida. As of March 31, 2018, 44.2% of the outstanding principal balance of the consumer loans receivable portfolio was concentrated in Texas and 11.0% was concentrated in Florida. Other than Texas and Florida, no other state had concentrations in excess of 10% of the principal balance of the consumer loans receivable as of June 30, 2018.

Collateral for repossessed loans is acquired through foreclosure or similar proceedings and is recorded at the estimated fair value of the home, less the costs to sell. At repossession, the fair value of the collateral is computed based on the historical recovery rates of previously charged-off loans; the loan is charged off and the loss is recorded to the allowance for loan losses. On a monthly basis, the fair value of the collateral is adjusted to the lower of the amount recorded at repossession or the estimated sales price less estimated costs to sell, based on current information. Repossessed homes totaled approximately $1.1 million and $1.5 million as of June 30, 2018 and March 31, 2018, respectively, and are included in Prepaid expenses and other current assets in the Consolidated Balance Sheet. Foreclosure or similar proceedings in progress totaled approximately $1.6 million and $1.1 million as of June 30, 2018 and March 31, 2018, respectively.

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7. Commercial Loans Receivable and Allowance for Loan Losses

The Company's commercial loans receivable balance consists of two classes: (i) direct financing arrangements for the home product needs of our independent retailers, communities and developers; and (ii) amounts loaned by the Company under participation financing programs.

Under the terms of the direct programs, the Company provides funds for independent retailers, communities and developers' financed home purchases. Notes are secured by the homes as collateral and, in some instances, other security depending on the circumstances. The other terms of direct arrangements vary depending on the needs of the borrower and the opportunity for the Company.

Under the terms of the participation programs, the Company provides loans to independent floor plan lenders, representing a significant portion of the funds that such financiers then lend to retailers to finance their inventory purchases. The participation commercial loan receivables are unsecured general obligations of the independent floor plan lenders.

Commercial loans receivable, net, consisted of the following by class of financing notes receivable (in thousands):

	June 30, 2018			March 31, 2018
Direct loans receivable	$	30,414		$	16,368
Participation loans receivable	332			275
Allowance for loan losses	(113		)	(42		)
	$	30,633		$	16,601

The commercial loans receivable balance had the following characteristics:

	June 30, 2018		March 31, 2018
Weighted average contractual interest rate	5.5	%	4.6	%
Weighted average months to maturity	5		6

The Company evaluates the potential for loss from its participation loan programs based on each independent lender's overall financial stability, as well as historical experience, and has determined that an allowance for loan losses was not needed at June 30, 2018 or March 31, 2018.

With respect to direct programs with communities and developers, borrower activity is monitored on a regular basis and contractual arrangements are in place to provide adequate loss mitigation in the event of a default. For direct programs with independent retailers, the risk of loss is spread over numerous borrowers. Borrower activity is monitored in conjunction with third-party service providers, where applicable, to estimate the potential for loss on the related notes receivable, considering potential exposures, including repossession costs, remarketing expenses, impairment of value and the risk of collateral loss. The Company has historically been able to resell repossessed unused homes, thereby mitigating loss experience. If a default occurs and collateral is lost, the Company is exposed to loss of the full value of the home loan. If the Company determines that it is probable that a borrower will default, a specific reserve is determined and recorded within the estimated allowance for loan losses. The Company recorded an allowance for loan losses of $113,000 and $222,000 at June 30, 2018 and July 1, 2017, respectively.

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The following table represents changes in the estimated allowance for loan losses, including related additions and deductions to the allowance for loan losses applicable to the direct programs (in thousands):

	Three Months Ended
	June 30, 2018		July 1, 2017
Balance at beginning of period	$	42	$	210
Provision for inventory finance credit losses	71		12
Loans charged off, net of recoveries	—		—
Balance at end of period	$	113	$	222

The following table disaggregates commercial loans receivable and the estimated allowance for loan losses for each class of financing receivable by evaluation methodology (in thousands):

	Direct Commercial Loans						Participation Commercial Loans
	June 30, 2018			March 31, 2018			June 30, 2018		March 31, 2018
Inventory finance notes receivable:
Collectively evaluated for impairment	$	11,349		$	4,193		$	—	$	—
Individually evaluated for impairment	19,065			12,175			332		275
	$	30,414		$	16,368		$	332	$	275
Allowance for loan losses:
Collectively evaluated for impairment	$	(113	)	$	(42	)	$	—	$	—
Individually evaluated for impairment	—			—			—		—
	$	(113	)	$	(42	)	$	—	$	—

Loans are subject to regular review and are given management's attention whenever a problem situation appears to be developing. Loans with indicators of potential performance problems are placed on watch list status and are subject to additional monitoring and scrutiny. Nonperforming status includes loans accounted for on a non-accrual basis and accruing loans with principal payments past due 90 days or more. The Company's policy is to place loans on nonaccrual status when interest is past due and remains unpaid 90 days or more or when there is a clear indication that the borrower has the inability or unwillingness to meet payments as they become due. The Company will resume accrual of interest once these factors have been remedied. At June 30, 2018, there are no commercial loans that are 90 days or more past due that are still accruing interest. Payments received on nonaccrual loans are recorded on a cash basis, first to interest and then to principal. At June 30, 2018, the Company was not aware of any potential problem loans that would have a material effect on the commercial receivables balance. Charge-offs occur when it becomes probable that outstanding amounts will not be recovered.

The following table disaggregates the Company's inventory finance receivables by class and credit quality indicator (in thousands):

	Direct Commercial Loans				Participation Commercial Loans
	June 30, 2018		March 31, 2018		June 30, 2018		March 31, 2018
Risk profile based on payment activity:
Performing	$	30,414	$	16,368	$	332	$	275
Watch list	—		—		—		—
Nonperforming	—		—		—		—
	$	30,414	$	16,368	$	332	$	275

16

The Company has concentrations of commercial loans receivable related to factory-built homes in excess of 10% located in the following states, measured as a percentage of commercial loans receivables principal balance outstanding:

	June 30, 2018		March 31, 2018
Arizona	16.0	%	16.7	%
California	13.4	%	14.4	%
Oregon	11.1	%	14.7	%
Texas	10.6	%	9.0	%

The risks created by these concentrations have been considered in the determination of the adequacy of the allowance for loan losses. The Company did not have concentrations in excess of 10% of the principal balance of the commercial loans receivables in any other states as of June 30, 2018 or March 31, 2018.

As of June 30, 2018 and March 31, 2018, the Company had concentrations with one independent third-party that equaled 22.3% and 37.4% of the principal balance outstanding, respectively, all of which was secured.

8. Property, Plant and Equipment

Property, plant and equipment consisted of the following (in thousands):

	June 30, 2018			March 31, 2018
Property, plant and equipment, at cost:
Land	$	24,001		$	24,001
Buildings and improvements	39,963			39,613
Machinery and equipment	25,414			24,154
	89,378			87,768
Accumulated depreciation	(25,373		)	(24,413		)
Property, plant and equipment, net	$	64,005		$	63,355

Depreciation expense was $1.0 million and $882,000 for the three months endedJune 30, 2018 and July 1, 2017, respectively.

Included in the amounts above are certain assets under capital leases. See Note 9 for additional information.

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9. Capital Leases

On April 3, 2017, in connection with the purchase of Lexington Homes, the Company recorded capital leases on manufacturing facilities and land in Lexington, Mississippi. The following amounts were recorded for the leased assets as of June 30, 2018 and March 31, 2018 (in thousands):

	June 30, 2018			March 31, 2018
Land	$	699		$	699
Buildings and improvements	1,050			1,050
	1,749			1,749
Accumulated amortization	(44		)	(35		)
Leased assets, net	$	1,705		$	1,714

Future minimum payments under the leases as of June 30, 2018 were as follows (in thousands):

FY 2019	$	103
FY 2020	766
FY 2021	73
FY 2022	73
FY 2023	73
Thereafter	196
Total remaining lease payments	$	1,284
Less: Amount representing interest	(148		)
Present value of future minimum lease payments	$	1,136

10. Goodwill and Other Intangibles

Goodwill and other intangibles consisted of the following (in thousands):

	June 30, 2018							March 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Indefinite-lived:
Goodwill	$	72,920	$	—		$	72,920	$	72,920	$	—		$	72,920
Trademarks and trade names	7,200		—			7,200		7,200		—			7,200
State insurance licenses	1,100		—			1,100		1,100		—			1,100
Total indefinite-lived intangible assets	81,220		—			81,220		81,220		—			81,220
Finite lived:
Customer relationships	7,100		(5,809		)	1,291		7,100		(5,756		)	1,344
Other	1,384		(959		)	425		1,384		(928		)	456
Total goodwill and other intangible assets	$	89,704	$	(6,768	)	$	82,936	$	89,704	$	(6,684	)	$	83,020

The Company recognized amortization expense of $84,000 and $92,000 during each three month period ending June 30, 2018 and July 1, 2017, respectively.

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11. Accrued Liabilities

Accrued liabilities consist of the following (in thousands):

	June 30, 2018		March 31, 2018
Customer deposits	$	23,774	$	21,294
Salaries, wages and benefits	20,055		24,416
Unearned insurance premiums	18,216		17,432
Estimated warranties	16,670		16,638
Accrued volume rebates	9,044		7,778
Insurance loss reserves	6,472		6,157
Company repurchase option on certain loans sold	5,264		5,637
Accrued insurance	4,543		5,320
Accrued taxes	2,368		1,986
Reserve for repurchase commitments	2,315		2,207
Capital lease obligation	1,136		1,155
Other	16,917		16,480
	$	126,774	$	126,500

12. Warranties

Activity in the liability for estimated warranties was as follows (in thousands):

	Three Months Ended
	June 30, 2018			July 1, 2017
Balance at beginning of period	$	16,638		$	15,479
Purchase accounting additions	—			838
Charged to costs and expenses	6,229			5,223
Payments and deductions	(6,197		)	(5,224		)
Balance at end of period	$	16,670		$	16,316

13. Debt Obligations

Debt obligations primarily consist of amounts related to loans sold that did not qualify for loan sale accounting treatment. The following table summarizes debt obligations (in thousands):

	June 30, 2018		March 31, 2018
Acquired securitized financings (acquired as part of the Palm Harbor transaction)
Securitized financing 2005-1	$	19,732	$	20,524
Securitized financing 2007-1	21,797		22,552
Other secured financings	5,009		4,966
Secured credit facilities	11,583		11,770
Total securitized financings and other, net	$	58,121	$	59,812

Acquired securitized financings were recorded at fair value at the time of acquisition, which resulted in a discount, and subsequently are accounted for in a manner similar to ASC 310-30 to accrete the discount.

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The following table summarizes acquired securitized financings (in thousands):

	June 30, 2018			March 31, 2018
Securitized financings – contractual amount	$	44,226		$	46,591
Purchase discount
Accretable	(2,697		)	(3,515		)
Non-accretable (1)	—			—
Total acquired securitized financings, net	$	41,529		$	43,076

(1) There is no non-accretable difference, as the contractual payments on acquired securitized financing are determined by the cash collections from the underlying loans.

Over the life of the loans, the Company continues to estimate cash flows expected to be paid on securitized financings. The Company evaluates at the balance sheet date whether the present value of its securitized financings, determined using the effective interest rate, has increased or decreased. The present value of any subsequent change in cash flows expected to be paid adjusts the amount of accretable yield recognized on a prospective basis over the securitized financing's remaining life.

The changes in accretable yield on securitized financings were as follows (in thousands):

	Three Months Ended
	June 30, 2018			July 1, 2017
Balance at the beginning of the period	$	3,515		$	7,636
Accretion	(803		)	(871		)
Adjustment to cash flows	(15		)	(99		)
Balance at the end of the period	$	2,697		$	6,666

Prior to the Company's acquisition of Palm Harbor and CountryPlace, CountryPlace completed its initial securitization (2005-1), which was structured as a securitized borrowing. At the balance sheet dates of June 30, 2018 and March 31, 2018, only Class A-4, originally totaling $27.4 million with a coupon rate of 5.20%, remained outstanding, with a call date in January 2019. Additionally, CountryPlace completed its second securitized borrowing (2007-1), of which only Class A-4 originally totaling $25.1 million with a coupon rate of 5.846% remained outstanding at June 30, 2018 and March 31, 2018, with a call date in July 2019. It is anticipated that the Company will purchase or refinance these outstanding facilities at or prior to their call dates.

CountryPlace's securitized debt is subject to provisions that require certain levels of overcollateralization. Overcollateralization is equal to CountryPlace's equity in the bonds. Failure to satisfy these provisions could cause cash, which would normally be distributed to CountryPlace, to be used for repayment of the principal of the related Class A bonds until the required overcollateralization level is reached. During periods when the overcollateralization is below the specified level, cash collections from the securitized loans in excess of servicing fees payable to CountryPlace and amounts owed to the Class A bondholders, trustee and surety, are applied to reduce the Class A debt until such time overcollateralization reaches the specified level. Therefore, failure to meet the overcollateralization requirement could adversely affect the timing of cash flows received by CountryPlace. However, principal payments of the securitized debt, including accelerated amounts, is payable only from cash collections from the securitized loans and no additional sources of repayment are required or permitted. As of June 30, 2018, the 2005-1 and 2007-1 securitized portfolios were within the required overcollateralization level.

20

The Company has entered into secured credit facilities with independent third party banks with draw periods from one to fifteen months and maturity dates of ten years after the expiration of the draw periods. The proceeds are used by the Company to originate and hold consumer home-only loans secured by manufactured homes, which are pledged as collateral to the facilities. Upon completion of the draw down period, the facilities are converted into an amortizing loan based on a 20 or 25 year amortization period with a balloon payment due upon maturity. The maximum advance for loans under this program is 80% of the outstanding collateral principal balance, with the Company providing the remaining funds. As of June 30, 2018, the outstanding balance of the converted loans was $11.6 million at a weighted average interest rate of 4.9%, with $5.0 million available to draw. Amounts drawn will bear interest at 5.15%. Once converted, the initial annual interest rate of 5.15% will adjust every 5 years beginning in 2024 to Prime plus 0.40%. The per annum interest rate will never be less than 5.00% or greater than 6.00%.

14. Reinsurance

Standard Casualty is primarily a specialty writer of manufactured home physical damage insurance. Certain of Standard Casualty's premiums and benefits are assumed from and ceded to other insurance companies under various reinsurance agreements. The ceded reinsurance agreements provide Standard Casualty with increased capacity to write larger risks and maintain its exposure to loss within its capital resources. Standard Casualty remains obligated for amounts ceded in the event that the reinsurers do not meet their obligations. Substantially all of Standard Casualty's assumed reinsurance is with one entity.

The effects of reinsurance on premiums written and earned are as follows (in thousands):

	Three Months Ended
	June 30, 2018						July 1, 2017
	Written			Earned			Written			Earned
Direct premiums	$	4,541		$	4,211		$	4,366		$	4,150
Assumed premiums—nonaffiliate	6,934			6,234			6,260			6,267
Ceded premiums—nonaffiliate	(2,847		)	(2,847		)	(2,948		)	(2,948		)
Net premiums	$	8,628		$	7,598		$	7,678		$	7,469

Typical insurance policies written or assumed by Standard Casualty have a maximum coverage of $300,000 per claim, of which Standard Casualty cedes $175,000 of the risk of loss per reinsurance. Therefore, Standard Casualty maintains risk of loss limited to $125,000 per claim on typical policies. After this limit, amounts are recoverable by Standard Casualty through reinsurance for catastrophic losses in excess of $1.5 million per occurrence, up to a maximum of $43.5 million in the aggregate.

Purchasing reinsurance contracts protects Standard Casualty from frequency and/or severity of losses incurred on insurance policies issued, such as in the case of a catastrophe that generates a large number of serious claims on multiple policies at the same time. Under these agreements, the Company is required to repurchase and reestablish its reinsurance contracts for the remainder of the year to the extent they are utilized.

15. Income Taxes

The Company's deferred tax assets primarily result from financial statement accruals not currently deductible for tax purposes and differences in the acquired basis of certain assets, and its deferred tax liabilities primarily result from tax amortization of goodwill and other intangible assets.

The Company complies with the provisions of ASC 740, Income Taxes ("ASC 740"), which clarifies the accounting for income taxes by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. ASC 740 also provides guidance on derecognizing, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. The amount of unrecognized tax benefits recorded by the Company and the impact on the effective tax rate if all unrecognized tax benefits were recognized would be insignificant. The Company classifies interest and penalties related to unrecognized tax benefits in tax expense.

21

Income tax returns are filed in the U.S. federal jurisdiction and in several state jurisdictions. In August 2017, the Company received a notice of examination from the Internal Revenue Service ("IRS") for the Company’s federal income tax return for the fiscal year ended April 2, 2016. In general, the Company is no longer subject to examination by the IRS for years before fiscal year 2015 or state and local income tax examinations by tax authorities for years before fiscal year 2013. The Company believes that its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material change to the Company's financial position. The total amount of unrecognized tax benefit related to any particular tax position is not anticipated to change significantly within the next 12 months. The provision for income taxes generally represents income taxes paid or payable for the current year plus the change in deferred taxes during the year.

On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act makes broad and complex changes to the U.S. tax code that affect the Company and include, but are not limited to: (1) reducing the U.S. federal corporate tax rate, (2) allowing bonus depreciation for full expensing of qualified property and (3) eliminating the manufacturing deduction. The Tax Act reduces the federal corporate tax rate to 21% for our fiscal year ending March 30, 2019.

In addition, on December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 ("SAB 118") that allows us to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. The Company is currently analyzing the impact of the various provisions of the Tax Act. The ultimate impact may differ from the provisional amounts recorded. The Company expects to complete our analysis within the measurement period in accordance with SAB 118.

16. Commitments and Contingencies

Repurchase Contingencies. The Company is contingently liable under terms of repurchase agreements with financial institutions providing inventory financing for independent retailers of its products. These arrangements, which are customary in the industry, provide for the repurchase of products sold to retailers in the event of default by the retailer. The risk of loss under these agreements is spread over numerous retailers. The price the Company is obligated to pay generally declines over the period of the agreement (generally 18 to 36 months, calculated from the date of sale to the retailer) and the risk of loss is further reduced by the resale value of the repurchased homes. The maximum amount for which the Company was contingently liable under such agreements approximated $71.2 million at June 30, 2018, without reduction for the resale value of the homes. The Company applies ASC 460, Guarantees ("ASC 460"), and ASC 450-20, Loss Contingencies ("ASC 450-20"), to account for its liability for repurchase commitments. Under the provisions of ASC 460, the Company records the greater of the estimated value of the non-contingent obligation or a contingent liability for each repurchase arrangement under the provisions of ASC 450-20. The Company recorded an estimated liability of $2.3 million and $2.2 million at June 30, 2018 and March 31, 2018, respectively, related to the commitments pertaining to these agreements.

Letters of Credit. To secure certain reinsurance contracts, Standard Casualty maintains an irrevocable letter of credit of $11.0 million to provide assurance that Standard Casualty will fulfill its reinsurance obligations. This letter of credit is secured by certain of the Company's investments. There were no amounts outstanding at either June 30, 2018 or March 31, 2018.

Construction-Period Mortgages. CountryPlace funds construction-period mortgages through periodic advances during the period of home construction. At the time of initial funding, CountryPlace commits to fully fund the loan contract in accordance with a predetermined schedule. Subsequent advances are contingent upon the performance of contractual obligations by the seller of the home and the borrower. Cumulative advances on construction-period mortgages are carried in the consolidated balance sheet at the amount advanced less a valuation allowance, and are included in consumer loans receivable. The total loan contract amount, less cumulative advances, represents an off-balance sheet contingent commitment of CountryPlace to fund future advances.

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Loan contracts with off-balance sheet commitments are summarized below (in thousands):

	June 30, 2018			March 31, 2018
Construction loan contract amount	$	29,961		$	27,093
Cumulative advances	(12,259		)	(11,088		)
Remaining construction contingent commitment	$	17,702		$	16,005

Representations and Warranties of Mortgages Sold. CountryPlace sells loans to GSEs and whole-loan purchasers and finances certain loans with long-term credit facilities secured by the respective loans. In connection with these activities, CountryPlace provides to the GSEs, whole-loan purchasers and lenders, representations and warranties related to the loans sold or financed. These representations and warranties generally relate to the ownership of the loan, the validity of the lien securing the loan, the loan's compliance with the criteria for inclusion in the sale transactions, including compliance with underwriting standards or loan criteria established by the buyer, and CountryPlace's ability to deliver documentation in compliance with applicable laws. Generally, representations and warranties may be enforced at any time over the life of the loan. Upon a breach of a representation, CountryPlace may be required to repurchase the loan or to indemnify a party for incurred losses. Repurchase demands and claims for indemnification payments are reviewed on a loan-by-loan basis to validate if there has been a breach requiring repurchase. CountryPlace manages the risk of repurchase through underwriting and quality assurance practices and by servicing the mortgage loans to investor standards. CountryPlace maintains a reserve for these contingent repurchase and indemnification obligations. This reserve of $1.0 million as of June 30, 2018 and March 31, 2018, included in accrued liabilities, reflects management's estimate of probable loss. CountryPlace considers a variety of assumptions, including borrower performance (both actual and estimated future defaults), historical repurchase demands and loan defect rates to estimate the liability for loan repurchases and indemnifications. During the three months endedJune 30, 2018, no claim request resulted in execution of an indemnification agreement.

Interest Rate Lock Commitments. In originating loans for sale, CountryPlace issues interest rate lock commitments ("IRLCs") to prospective borrowers and third-party originators. These IRLCs represent an agreement to extend credit to a loan applicant, or an agreement to purchase a loan from a third-party originator, whereby the interest rate on the loan is set prior to loan closing or sale. These IRLCs bind CountryPlace to fund the approved loan at the specified rate regardless of whether interest rates or market prices for similar loans have changed between the commitment date and the closing date. As such, outstanding IRLCs are subject to interest rate risk and related loan sale price risk during the period from the date of the IRLC through the earlier of the loan sale date or IRLC expiration date. The loan commitments generally range between 30 and 270 days; however, borrowers are not obligated to close the related loans. As a result, CountryPlace is subject to fallout risk related to IRLCs, which is realized if approved borrowers choose not to close on the loans within the terms of the IRLCs unless the commitment is successfully paired with another loan that may mitigate losses from fallout.

As of June 30, 2018, CountryPlace had outstanding IRLCs with a notional amount of $17.0 million and are recorded at fair value in accordance with ASC 815, Derivatives and Hedging ("ASC 815"). ASC 815 clarifies that the expected net future cash flows related to the associated servicing of a loan should be included in the measurement of all written loan commitments that are accounted for at fair value through earnings. The estimated fair values of IRLCs are recorded in other assets in the consolidated balance sheets. The fair value of IRLCs is based on the value of the underlying mortgage loan adjusted for: (i) estimated cost to complete and originate the loan and (ii) the estimated percentage of IRLCs that will result in closed mortgage loans. The initial and subsequent changes in the value of IRLCs are a component of gain (loss) on mortgage loans held for sale. During the three months ended June 30, 2018 and July 1, 2017, CountryPlace recognized gainsof $20,000 and losses of $25,000 on outstanding IRLCs, respectively.

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Forward Sales Commitments. CountryPlace manages the risk profiles of a portion of its outstanding IRLCs and mortgage loans held for sale by entering into forward sales of mortgage-backed securities ("MBS") and whole loan sale commitments. As of June 30, 2018, CountryPlace had $50.1 million in outstanding notional forward sales of MBSs and forward sales commitments. Commitments to forward sales of whole loans are typically in an amount proportionate with the amount of IRLCs expected to close in particular time frames, assuming no change in mortgage interest rates, for the respective loan products intended for whole loan sale.

The estimated fair values of forward sales of MBS and forward sale commitments are based on quoted market values and are recorded within Prepaid expenses and other current assets in the Consolidated Balance Sheets. During the three months ended June 30, 2018 and July 1, 2017, CountryPlace recognized losses of $175,000 and gains of $155,000, respectively, on forward sales and whole loan sale commitments.

Legal Matters. The Company is party to certain legal proceedings that arise in the ordinary course and are incidental to its business. Certain of the claims pending against the Company in these proceedings allege, among other things, breach of contract and warranty, product liability and personal injury. Although litigation is inherently uncertain, based on past experience and the information currently available, management does not believe that the currently pending and threatened litigation or claims will have a material adverse effect on the Company's consolidated financial position, liquidity or results of operations. However, future events or circumstances currently unknown to management will determine whether the resolution of pending or threatened litigation or claims will ultimately have a material effect on the Company's consolidated financial position, liquidity or results of operations in any future reporting periods.

17. Stockholders' Equity

The following table represents changes in stockholders' equity for the three months ended June 30, 2018 (dollars in thousands):

				Additional paid-in capital			Retained earnings		Accumulated other comprehensive income (loss)			Total
	Common Stock
	Shares	Amount
Balance, March 31, 2018	9,044,858	$	90	$	246,197		$	209,381	$	1,438		$	457,106
Cumulative effect of implementing ASU 2016-01, net	—	—		—			1,621		(1,621		)	—
Cumulative effect of implementing ASC 606, net	—	—		—			454		—			454
Stock option exercises	16,448	1		(2,169		)	—		—			(2,168		)
Stock-based compensation	—	—		599			—		—			599
Net income	—	—		—			19,691		—			19,691
Other comprehensive income, net	—	—		—			—		5			5
Balance, June 30, 2018	9,061,306	$	91	$	244,627		$	231,147	$	(178	)	$	475,687

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18. Stock-Based Compensation

The Company maintains stock incentive plans whereby stock option grants or awards of restricted stock may be made to certain officers, directors and key employees. As of June 30, 2018, the plans, which are shareholder approved, permit the award of up to 1,650,000 shares of the Company's common stock, of which 356,272 shares were still available for grant. When options are exercised, new shares of the Company's common stock are issued. Stock options may not be granted below 100% of the fair market value of the Company's common stock at the date of grant and generally expire seven years from the date of grant. Stock options and awards of restricted stock typically vest over a one to five year period as determined by the plan administrator (the Compensation Committee of the Board of Directors, which consists of independent directors). The stock incentive plans provide for accelerated vesting of stock options upon a change in control (as defined in the plans).

Stock-based compensation cost charged against income for the three months ended June 30, 2018 and July 1, 2017 was $599,000 and $513,000, respectively.

As of June 30, 2018, total unrecognized compensation cost related to stock options was approximately $3.0 million and the related weighted-average period over which the expense is expected to be recognized is approximately 2.87 years.

The following table summarizes the option activity within the Company's stock-based compensation plans for the three months ended June 30, 2018:

	Number of Options
Outstanding at March 31, 2018	418,205
Granted	4,000
Exercised	(33,683	)
Canceled or expired	—
Outstanding at June 30, 2018	388,522
Exercisable at June 30, 2018	171,038

19. Earnings Per Share

Basic earnings per common share is computed based on the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per common share is computed based on the combination of dilutive common share equivalents, comprised of shares issuable under the Company's stock-based compensation plans and the weighted-average number of common shares outstanding during the reporting period. Dilutive common share equivalents include the dilutive effect of in-the-money options to purchase shares, which is calculated based on the average share price for each period using the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share (dollars in thousands, except per share amounts):

	Three Months Ended
	June 30, 2018		July 1, 2017
Net income	$	19,691	$	11,753
Weighted average shares outstanding:
Basic	9,048,579		9,006,999
Common stock equivalents—treasury stock method	218,469		155,492
Diluted	9,267,048		9,162,491
Net income per share:
Basic	$	2.18	$	1.30
Diluted	$	2.12	$	1.28

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Anti-dilutive common stock equivalents excluded from the computation of diluted earnings per share for the three months ended June 30, 2018 and July 1, 2017 were 1,268 and 10,973, respectively.

20. Fair Value Measurements

The book value and estimated fair value of the Company's financial instruments are as follows (in thousands):

	June 30, 2018						March 31, 2018
	Book Value			Estimated Fair Value			Book Value			Estimated Fair Value
Available-for-sale debt securities (1)	$	15,523		$	15,523		$	16,181		$	16,181
Marketable equity securities (1)	12,736			12,736			10,405			10,405
Non-marketable equity investments (2)	18,888			18,888			18,853			18,853
Consumer loans receivable (3)	98,157			115,032			94,951			113,277
Interest rate lock commitment derivatives (4)	(8		)	(8		)	(12		)	(12		)
Forward loan sale commitment derivatives (4)	149			149			26			26
Commercial loans receivable (5)	30,633			31,301			16,601			16,972
Securitized financings and other (6)	(58,121		)	(63,210		)	(59,812		)	(64,509		)
Mortgage servicing rights (7)	1,443			1,443			1,410			1,410

(1) For Level 1 classified securities, the fair value is based on quoted market prices. The fair value of Level 2 securities is based on other inputs, as further described below.

(2) The fair value approximates book value based on the non-marketable nature of the investments.

(3) Includes consumer loans receivable held for investment, held for sale and construction advances. The fair value of the loans held for investment is based on the discounted value of the remaining principal and interest cash flows. The fair value of the loans held for sale are estimated based on recent GSE mortgage-backed bond prices. The fair value of the construction advances approximates book value and the sales price of these loans.

(4) The fair values are based on changes in GSE mortgage-backed bond prices and, additionally for IRLCs, pull through rates.

(5) The fair value is estimated using market interest rates of comparable loans.

(6) The fair value is estimated using recent public transactions of similar asset-backed securities.

(7) The fair value of the mortgage servicing rights is based on the present value of expected net cash flows related to servicing these loans.

In accordance with ASC 820, Fair Value Measurements and Disclosures ("ASC 820"), fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1 –	Quoted prices in active markets for identical assets or liabilities.
Level 2 –	Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 –	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

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The Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

When the Company uses observable market prices for identical securities that are traded in less active markets, it classifies such securities as Level 2. When observable market prices for identical securities are not available, the Company prices its marketable debt instruments using non-binding market consensus prices that are corroborated with observable market data; quoted market prices for similar instruments; or pricing models, such as a discounted cash flow model, with all significant inputs derived from or corroborated with observable market data. Non-binding market consensus prices are based on the proprietary valuation models of pricing providers or brokers. These valuation models incorporate a number of inputs, including non-binding and binding broker quotes; observable market prices for identical or similar securities; and the internal assumptions of pricing providers or brokers that use observable market inputs and, to a lesser degree, unobservable market inputs.

Financial instruments measured at fair value on a recurring basis are summarized below (in thousands):

	June 30, 2018
	Total			Level 1		Level 2		Level 3
Securities issued by the U.S Treasury and Government (1)	$	292		$	—	$	292	$	—
Mortgage-backed securities (1)	7,152			—		7,152		—
Securities issued by states and political subdivisions (1)	6,029			—		6,029		—
Corporate debt securities (1)	2,050			—		2,050		—
Marketable equity securities (2)	12,736			12,736		—		—
Interest rate lock commitment derivatives (3)	(8		)	—		—		(8		)
Forward loan sale commitment derivatives (3)	149			—		—		149
Mortgage servicing rights (4)	1,443			—		—		1,443

(1) Unrealized gains or losses on investments are recorded in accumulated other comprehensive income (loss) at each measurement date.

(2) Unrealized gains or losses on investments are recorded in earnings at each measurement date.

(3) Gains or losses on derivatives are recognized in current period earnings through cost of sales.

(4) Changes in the fair value of mortgage servicing rights are recognized in the current period earnings through net revenue.

No transfers between Level 1, Level 2 or Level 3 occurred during the three months ended June 30, 2018. The Company's policy regarding the recording of transfers between levels is to record any such transfers at the end of the reporting period.

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Financial instruments for which fair value is disclosed but not required to be recognized in the balance sheet on a recurring basis are summarized below (in thousands):

	June 30, 2018
	Total			Level 1		Level 2			Level 3
Loans held for investment	$	87,726		$	—	$	—		$	87,726
Loans held for sale	15,047			—		—			15,047
Loans held—construction advances	12,259			—		—			12,259
Commercial loans receivable	31,301			—		—			31,301
Securitized financings and other	(63,210		)	—		(63,210		)	—
Non-marketable equity investments	18,888			—		—			18,888

No recent sales have been executed in an orderly market of manufactured home loan portfolios with comparable product features, credit characteristics or performance. Therefore, loans held for investment are measured using Level 3 inputs that are calculated using estimated discounted future cash flows from the evaluation of loan credit quality and performance history to determine expected prepayments and defaults on the portfolio, discounted with rates considered to reflect current market conditions. Loans held for sale are measured at the lower of cost or fair value using inputs that consist quoted market prices for mortgage-backed securities or investor purchase commitments for similar types of loan commitments on hand from investors. These loans are held for relatively short periods, typically no more than 45 days. As a result, changes in loan-specific credit risk are not a significant component of the change in fair value and changes are largely driven by changes in interest rates or investor yield requirements. The cost of loans held for sale is lower than the fair value as of June 30, 2018. As noted above, activity in the manufactured housing asset-backed securities market is infrequent with no reliable market price information. As such, to determine the fair value of securitized financings, management evaluates the credit quality and performance history of the underlying loan assets to estimate the expected prepayment of the debt and credit spreads, based on market activity for similar rated bonds from other asset classes with similar durations.

The Company records impairment losses on long-lived assets held for sale when the fair value of such long-lived assets is below their carrying values. The Company records impairment charges on long-lived assets used in operations when events and circumstances indicate that long-lived assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts. No impairment charges were recorded during the three months ended June 30, 2018.

Mortgage Servicing. Mortgage Servicing Rights ("MSRs") are the rights to receive a portion of the interest coupon and fees collected from the mortgagors for performing specified mortgage servicing activities, which consist of collecting loan payments, remitting principal and interest payments to investors, managing escrow accounts, performing loss mitigation activities on behalf of investors and otherwise administering the loan servicing portfolio. MSRs are initially recorded at fair value. Changes in fair value subsequent to the initial capitalization are recorded in the Company's results of operations. The Company recognizes MSRs on all loans sold to investors that meet the requirements for sale accounting and for which servicing rights are retained.

The Company applies fair value accounting to MSRs, with all changes in fair value recorded to net revenue in accordance with ASC 860-50, Servicing Assets and Liabilities. The fair value of MSRs is based on the present value of the expected future cash flows related to servicing these loans. The revenue components of the cash flows are servicing fees, interest earned on custodial accounts and other ancillary income. The expense components include operating costs related to servicing the loans (including delinquency and foreclosure costs) and interest expenses on servicer advances that the Company believes are consistent with the assumptions major market participants use in valuing MSRs. The expected cash flows are primarily impacted by prepayment estimates, delinquencies and market discounts. Generally, the value of MSRs is expected to increase when interest rates rise and decrease when interest rates decline, due to the effect those changes in interest rates have on prepayment estimates. Other factors noted above as well as the overall market demand for MSRs may also affect the valuation.

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	June 30, 2018			March 31, 2018
Number of loans serviced with MSRs	4,399			4,346
Weighted average servicing fee (basis points)	32.05			32.03
Capitalized servicing multiple	85.24		%	84.76		%
Capitalized servicing rate (basis points)	27.32			27.15
Serviced portfolio with MSRs (in thousands)	$	528,206		$	519,167
Mortgage servicing rights (in thousands)	$	1,443		$	1,410

21. Business Segment Information

The Company operates principally in two segments: (1) factory-built housing, which includes wholesale and retail systems-built housing operations and (2) financial services, which includes manufactured housing consumer finance and insurance. The following table details net revenue and income before income taxes by segment (in thousands):

	Three Months Ended
	June 30, 2018		July 1, 2017
Net revenue:
Factory-built housing	$	232,762	$	192,882
Financial services	13,641		13,934
	$	246,403	$	206,816
Income before income taxes:
Factory-built housing	$	21,608	$	13,170
Financial services	2,528		2,481
	$	24,136	$	15,651

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

Statements in this Report on Form 10-Q includes "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities and Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are often characterized by the use of words such as "believes," "estimates," "expects," "projects," "may," "will," "intends," "plans," or "anticipates," or by discussions of strategy, plans or intentions. Forward-looking statements contained in this Report on Form 10-Q speak only as of the date of this report or, in the case of any document incorporated by reference, the date of that document. We do not intend to publicly update or revise any forward-looking statement contained in this Report on Form 10-Q or in any document incorporated herein by reference to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.

Forward-looking statements involve risks, uncertainties and other factors, which may cause our actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. To the extent that our assumptions differ from actual results, our ability to meet such forward-looking statements, including our ability to generate positive cash flow from operations, may be significantly hindered. Factors that could affect our results and cause them to materially differ from those contained in the forward-looking statements include, without limitation, those discussed in Risk Factors described in Part I, Item 1A. Risk Factors in our 2018 Annual Report on Form 10-K ("Form 10-K"), which is incorporated herein.

Introduction

The following should be read in conjunction with Cavco Industries, Inc. and its subsidiaries' (collectively, the "Company" or "Cavco") Consolidated Financial Statements and the related Notes that appear in Item 1 of this Report. References to "Note" or "Notes" pertain to the Notes to the Company's Consolidated Financial Statements.

Overview

Headquartered in Phoenix, Arizona, the Company designs and produces factory-built homes primarily distributed through a network of independent and Company-owned retailers. We are the second largest producer of manufactured homes in the United States, based on reported wholesale shipments, marketed under a variety of brand names, including Cavco Homes, Fleetwood Homes, Palm Harbor Homes, Fairmont Homes, Friendship Homes, Chariot Eagle and Lexington Homes. The Company is also a leading builder of park model RVs, vacation cabins and systems-built commercial structures, as well as modular homes built primarily under the Nationwide Homes brand. Cavco's mortgage subsidiary, CountryPlace Acceptance Corp. ("CountryPlace"), is an approved Federal National Mortgage Association ("FNMA" or "Fannie Mae") and Federal Home Loan Mortgage Corporation ("FHLMC" or "Freddie Mac") seller/servicer, and a Government National Mortgage Association ("GNMA" or "Ginnie Mae") mortgage-backed securities issuer that offers conforming mortgages, non-conforming mortgages and home-only loans to purchasers of factory-built homes. Our insurance subsidiary, Standard Casualty Co. ("Standard Casualty"), provides property and casualty insurance primarily to owners of manufactured homes.

Company Growth

From its inception in 1965, Cavco traditionally served affordable housing markets in the southwestern United States principally through manufactured home production. During the period from 1997 to 2000, Cavco was purchased by and became a wholly-owned subsidiary of Centex Corporation, which operated the Company until 2003, when Cavco became a stand-alone publicly-held Company traded on the NASDAQ Global Select Market under the ticker symbol CVCO.

Beginning in 2007, the overall housing industry experienced a multi-year decline, which included the manufactured housing industry. Since this downturn, Cavco strategically expanded its factory operations and related business initiatives primarily through the acquisition of industry competitor operations. This development has enabled the Company to more broadly participate in the overall housing industry recovery.

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In 2009, the Company acquired certain manufactured housing assets and liabilities of Fleetwood Enterprises, Inc. ("Fleetwood"). The assets purchased included seven operating production facilities as well as idle factories. During fiscal year 2011, the Company acquired certain manufactured housing assets and liabilities of Palm Harbor Homes, Inc., a Florida corporation. The assets purchased included five operating production facilities as well as idle factories, 49 operating retail locations, a manufactured housing finance company and a homeowners insurance company. These acquisitions expanded the Company’s presence across the United States.

In 2015, the Company purchased the business and operating assets of Chariot Eagle, a Florida-based manufacturer of park model RVs and manufactured homes, as well as certain assets and liabilities of Fairmont Homes. These transactions provided additional home production capabilities, grew the Company's offering of park model RV product lines and further strengthened our market position in the Southeast, Midwest, the western Great Plains states and several provinces in Canada.

On April 3, 2017, the Company purchased Lexington Homes, which operates one manufacturing facility in Lexington, Mississippi. This transaction was accounted for as a business combination and provides additional home production capabilities and increased distribution into new markets in the Southeast.

The Company operates 20 homebuilding facilities located in Millersburg and Woodburn, Oregon; Nampa, Idaho; Riverside, California; Phoenix and Goodyear, Arizona; Austin, Fort Worth, Seguin and Waco, Texas; Montevideo, Minnesota; Nappanee, Indiana; Lafayette, Tennessee; Lexington, Mississippi; Martinsville and Rocky Mount, Virginia; Douglas, Georgia; and Ocala and Plant City, Florida. The majority of the homes produced are sold to and distributed by independently owned retailers located primarily throughout the United States and Canada. In addition, our homes are sold through 39 Company-owned U.S. retail locations.

Company Outlook

We maintain a conservative cost structure in an effort to build added value into our homes. In addition, the Company has worked diligently to maintain a solid financial position. Our balance sheet strength and position in cash and cash equivalents should help us avoid liquidity problems and enable us to act effectively as market opportunities present themselves.

With manufacturing facilities strategically positioned across the United States, we utilize local market research to design homes to meet the demands of our customers. We have the ability to customize floor plans and designs to fulfill specific needs and interests. By offering a full range of homes from entry-level models to large custom homes with the ability to engineer designs in-house, we can accommodate virtually any customer request. In addition to homes built in accordance with the National Manufacturing Home Construction and Safety Standards ("HUD code") promulgated by the U.S. Department of Housing and Urban Development ("HUD"), we construct modular homes that conform to state and local codes, park model RVs and cabins and light commercial buildings at many of our manufacturing facilities.

We employ a concerted effort to identify niche market opportunities where our diverse product lines and custom building capabilities provide us with a competitive advantage. Our green building initiatives involve the creation of an energy efficient envelope and higher utilization of renewable materials. These homes provide environmentally-friendly maintenance requirements, typically lower utility costs, specially designed ventilation systems and sustainability. Cavco also builds homes designed to use alternative energy sources, such as solar and wind. From bamboo flooring and tankless water heaters to solar-powered homes, our products are diverse and tailored to a wide range of consumer interests. Innovation in housing design is a forte of the Company and we continue to introduce new models at competitive price points with expressive interiors and exteriors that complement home styles in the areas in which they are located.

Based on the relatively low cost associated with manufactured home ownership, our products have traditionally competed with rental housing's monthly payment affordability. Rental housing activity is reported to have continued to increase in recent years. As a result, tenant housing vacancy rates appear to have declined, causing a corresponding rise in associated rental rates. These rental market factors may cause some renters to become interested buyers of affordable-housing alternatives, including manufactured homes.

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Further, with respect to the general rise in demand for rental housing, we have realized a larger proportion of orders from developers and community owners for new manufactured homes intended for use as rental housing. The Company is responsive to the unique product and related requirements of these home buyers and values the opportunity to provide homes that are well suited for these purposes.

The backlog of sales orders at June 30, 2018 varied among our 20 factories and in total was approximately $196 million compared to $137 million at July 1, 2017. Retailers may cancel orders prior to production without penalty. Accordingly, until the production of a particular home has commenced, we do not consider our backlog to be firm orders. In response to this accelerating demand, we have raised production levels by increasing our workforce size and capabilities. However, the constrained labor market is a key challenge to further increasing production to keep pace with increased order rates. In addition, we have implemented higher product pricing to offset rising input costs, including labor and material price increases, although large backlogs may cause deferred realization of the full benefits.

The Company participates in certain commercial loan programs with members of the Company's independent wholesale distribution chain. Under these programs, the Company provides a significant amount of the funds that independent financiers then lend to distributors to finance retail inventories of our products. In addition, the Company has entered into direct commercial loan arrangements with distributors, communities and developers under which the Company provides funds for financing homes (see Note 7 to the Consolidated Financial Statements). While a large portion of our commercial loans receivable balance was received in the prior fiscal year, we continue to expand and grow these lending programs. The Company’s involvement in commercial loans has increased the availability of manufactured home financing to distributors and users of our products. We believe that our participation in wholesale financing is helpful to retailers, communities and developers and allows our homes additional opportunities for exposure to potential home buyers. These initiatives support the Company’s ongoing efforts to expand our distribution base in all of our markets with existing and new customers. However, the initiatives expose the Company to risks associated with the creditworthiness of certain customers and business partners, including independent retailers, developers, communities and inventory financing partners.

Restrictive underwriting guidelines, irregular appraisal processes, higher interest rates compared to site-built homes, regulatory burdens, a limited number of institutions lending to manufactured home buyers and limited secondary market availability for manufactured home loans have been significant constraints to industry growth. We are working directly with other industry participants to develop manufactured home consumer financing loan portfolios to attract industry financiers interested in furthering or expanding lending opportunities in the industry. Additionally, we continue to invest in community-based lending initiatives that provide home-only financing to new residents of certain manufactured home communities. Our mortgage subsidiary has developed and invests in home-only lending programs to grow sales of homes through traditional distribution points as well. We believe that growing our participation in home-only lending may provide additional sales growth opportunities for our factory-built housing operations.

We are also working through industry trade associations to encourage favorable legislative and Government-Sponsored Enterprise ("GSE") action to address the mortgage financing needs of potential buyers of affordable homes. Federal law requires the GSEs to issue a regulation to implement the "Duty to Serve" requirements specified in the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by the Housing and Economic Recovery Act of 2008. In December 2017, FNMA and FHLMC released their final Underserved Markets Plan that describes, with specificity, the actions they will take over a three-year period to fulfill the "Duty to Serve" obligation. These plans became effective on January 1, 2018. Each of the three-year plans is intended to establish steps to ensure home-only loans can be purchased in bulk prior to proceeding with a pilot program to purchase these loans. Expansion of the secondary market for home-only lending through the GSEs could provide further demand for housing, as lending options would likely become more available to home buyers. Although some limited progress has been made in the area, meaningful positive impact in the form of increased home orders has yet to be realized.

32

On January 25, 2018, HUD announced a top-to-bottom review of its manufactured housing rules as part of a broader effort to identify regulations that may be ineffective, overly burdensome, or excessively costly given the critical need for affordable housing. If certain changes are made, the Company may be able to more effectively serve buyers of affordable homes.

The insurance subsidiary is subject to adverse effects from excessive policy claims that may occur during periods of inclement weather, including seasonal spring storms or fall hurricane activity in Texas where most of its policies are underwritten. Where applicable, losses from catastrophic events are somewhat limited by reinsurance contracts in place as part of the Company’s loss mitigation structure.

During the second quarter of fiscal 2018, Hurricane Harvey produced the largest recorded rain volume for a single weather event in U.S. history, resulting in historic flooding and widespread property damage, primarily in southeast Texas, causing high homeowners' insurance claim volume. The substantial economic toll in the affected market areas was widely reported. Increased consumer demand for replacement of homes lost as a result of these events may continue for several quarters. In addition, as a result of this event, the Company participated by producing a limited number of disaster-relief homes for the Federal Emergency Management Agency during the third and fourth quarters of fiscal year 2018.

Industry Overview

According to data reported by the Manufactured Housing Institute ("MHI"), industry home shipments continue to improve, totaling almost 93,000 HUD code manufactured homes in 2017, an increase of 14.8% over the approximately 81,000 units shipped in 2016. This was preceded by 71,000 homes shipped in 2015, 64,000 in 2014, 60,000 in 2013 and 55,000 in calendar year 2012, which was among the lowest levels since industry shipment statistics began to be recorded in 1959. Annual home shipments from 2009 to 2016 were less than the annual home shipments for each of the 40 years from 1969 to 2008. While industry HUD code manufactured home shipments have improved modestly in recent years, the manufactured housing industry continues to operate at relatively low levels compared to historical shipment statistics.

We believe that employment rates and underemployment among potential home buyers who favor affordable housing as well as consumer confidence levels are improving. "First-time" and "move-up" buyers of affordable homes are historically among the largest segments of new manufactured home purchasers. Included in this group are lower-income households that were particularly affected by an extended period of persistently low employment rates and underemployment. The process of repairing damaged credit among consumers and efforts to save for a home loan down-payment often require substantial time; however, improving consumer confidence in the U.S. economy is evident among manufactured home buyers interested in our products for seasonal or retirement living that have been concerned about financial stability, and now appear to be less hesitant to commit to a new home purchase. We believe sales of our products may continue to increase as employment and consumer confidence levels continue to rise.

The two largest manufactured housing consumer demographics, young adults and those who are 55+ years old, are both growing. The U.S. adult population is estimated to expand by approximately 12.1 million between 2018 and 2023. Young adults born from 1976 to 1995, sometimes referred to as Gen Y, represent a large segment of the population. Late-stage Gen Y is approximately 2.2 million people larger than the next age category born from 1966 to 1975, Gen X, and is considered to be in the peak home-buying years. Gen Y represents prime first-time home buyers who may be attracted by the affordability, diversity of style choices and location flexibility of factory-built homes. The age 55 and older category is reported to be the fastest growing segment of the U.S. population. This group is similarly interested in the value proposition; however, they are also motivated by the energy efficiency and low maintenance requirements of systems-built homes, and by the lifestyle offered by planned communities that are specifically designed for homeowners that fall into this age group.

33

Results of Operations

Three months endedJune 30, 2018 compared to July 1, 2017

Net Revenue.

Net revenue consisted of the following for the three months ended June 30, 2018 and July 1, 2017, respectively (dollars in thousands):

	Three Months Ended
	June 30, 2018		July 1, 2017		Change			% Change
Net revenue:
Factory-built housing	$	232,762	$	192,882	$	39,880		20.7	%
Financial services	13,641		13,934		(293		)	(2.1	)%
	$	246,403	$	206,816	$	39,587		19.1	%
Total homes sold	3,887		3,475		412			11.9	%
Net factory-built housing revenue per home sold	$	59,882	$	55,506	$	4,376		7.9	%

The increase in net revenue from the factory-built housing segment for the three months ended June 30, 2018 compared to the same period last year was from improved home sales volume and higher home selling prices from input cost inflation and modestly larger home sizes. Current quarter net revenue also includes $6.5 million from this quarter's required implementation of accounting standardswhereby subcontracted pass-through services, such as the preparation of a home site or other home enhancements, are now recognized on a gross basis rather than net of associated costs.

Net factory-built housing revenue per home sold is a volatile metric dependent upon several factors. A primary factor is the price disparity between sales of homes to independent retailers, builders, communities and developers ("Wholesale") and sales of homes to consumers by Company-owned retail centers ("Retail"). Wholesale sales prices are primarily comprised of the home and the cost to ship the home from a homebuilding facility to the home-site. Retail home prices include these items and retail markup, as well as items that are largely subject to home buyer discretion, including, but not limited to, installation, utility connections, site improvements, landscaping and additional services. Changes to the proportion of home sales among these distribution channels between reporting periods impacts the overall net revenue per home sold. For the three months ended June 30, 2018, the Company sold 3,188 homes Wholesale and 699 Retail versus 2,860 homes Wholesale and 615 homes Retail in the comparable prior year period. Further, fluctuations in net factory-built housing revenue per home sold are the result of changes in product mix, which results from home buyer tastes and preferences as they select home types/models, as well as optional home upgrades when purchasing the home. These selections vary regularly based on consumer interests, local housing preferences and economic circumstances. Our product prices are also periodically adjusted for the cost and availability of raw materials included in, and labor used to produce, each home. For these reasons, we have experienced, and expect to continue to experience, volatility in overall net factory-built housing revenue per home sold.

Financial services segment revenue decreased, resulting from 3.6%fewer home loan sales period over period, as longer factory backlogs have extended the loan closing time frame, and from lower interest income earned on securitized loan portfolios that continue to amortize. The decrease is partially offset by more insurance policies in force in the current year compared to the prior year.

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Gross Profit.

Gross profit consisted of the following for the three months ended June 30, 2018 and July 1, 2017, respectively (in thousands):

	Three Months Ended
	June 30, 2018			July 1, 2017			$ Change		% Change
Gross profit:
Factory-built housing	$	43,886		$	34,500		$	9,386	27.2	%
Financial services	7,590			7,466			124		1.7	%
	$	51,476		$	41,966		$	9,510	22.7	%
Gross profit as % of Net revenue:	20.9		%	20.3		%	N/A		0.6	%

Factory-built housing gross profit for the three months ended June 30, 2018 was up from higher home sales and average home selling prices from input cost inflation, as well as factory efficiencies from improved utilization.

Financial services gross profit for the three months ended June 30, 2018increased from lower weather-related insurance claim costs compared to the prior year period. These increases were partially offset by fewer home loan sales and lower interest income earned on securitized loan portfolios that continue to amortize.

Selling, General and Administrative Expenses.

Selling, general and administrative expenses consisted of the following for the three months ended June 30, 2018 and July 1, 2017, respectively (in thousands):

	Three Months Ended
	June 30, 2018			July 1, 2017			$ Change		% Change
Selling, general and administrative expenses:
Factory-built housing	$	25,049		$	22,297		$	2,752	12.3	%
Financial services	4,164			4,008			156		3.9	%
	$	29,213		$	26,305		$	2,908	11.1	%
Selling, general and administrative expenses as % of Net revenue:	11.9		%	12.7		%	N/A		(0.8	)%

Selling, general and administrative expenses related to factory-built housing increased for the three months ended June 30, 2018 primarily from higher salary and incentive compensation expense from improved home sales.

Selling, general and administrative expenses for financial services remained relatively flat from operating consistency.

As a percentage of Net revenue, Selling, general and administrative expenses decreased modestly from fixed cost efficiencies gained from higher sales volume.

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Interest Expense.

Interest expense was $1.0 million in each of the three months ended June 30, 2018 and July 1, 2017. Interest expense consists primarily of debt service on CountyPlace's securitized financings of manufactured home loans and secured credit facilities, as well as interest related to capital leases of manufacturing facilities and land entered into as part of the Lexington Homes acquisition during fiscal year 2018.

Other Income, net. 

Other income, net was $2.8 million and $1.0 million for the three months ended June 30, 2018 and July 1, 2017, respectively. The current period includes $1.5 million in unrealized gains on corporate investments from this quarter's implementation of ASU 2016-01, Financial Instruments (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. Unrealized gains and losses are now required to be reported on the Consolidated Statement of Comprehensive Income instead of recording these amounts in accumulated other comprehensive income on the Consolidated Balance Sheets. In addition, interest income increased $409,000 in the current period from higher interest rates on larger cash balances.

Income Before Income Taxes.

Income before income taxes consisted of the following for the three months ended June 30, 2018 and July 1, 2017, respectively (in thousands):

	Three Months Ended
	June 30, 2018		July 1, 2017		$ Change		% Change
Income before income taxes:
Factory-built housing	$	21,608	$	13,170	$	8,438	64.1	%
Financial services	2,528		2,481		47		1.9	%
	$	24,136	$	15,651	$	8,485	54.2	%

Income taxes. 

Income tax expense was $4.4 million and $3.9 million for three months ended June 30, 2018 and July 1, 2017, respectively. The effective income tax rate for the first fiscal quarter was 18.4% compared to an effective tax rate of 24.9% for the same period last year. The current fiscal quarter was benefited by the Tax Cuts and Jobs Act (the "Tax Act"), which was enacted on December 22, 2017. The Tax Act reduced the federal corporate tax rate to 21% for our fiscal year ending March 30, 2019. In addition, the current quarter includes a deduction of $1.2 million related to excess tax benefits from exercises of stock options, compared to $1.4 million deducted in the prior year period.

Liquidity and Capital Resources

We believe that cash and cash equivalents at June 30, 2018, together with cash flow from operations, will be sufficient to fund our operations and provide for growth for the next 12 months and into the foreseeable future. We maintain cash in U.S. Treasury money market funds and money market funds, some of which are in excess of federally insured limits. We expect to continue to evaluate potential acquisitions of, or strategic investments in, businesses that are complementary to our Company. Such transactions may require the use of cash and have other impacts on the Company's liquidity and capital resources in the event of such a transaction. Because of the Company’s sufficient cash position, we have not sought external sources of liquidity, with the exception of certain credit facilities for our home-only lending programs. However, depending on our operating results and strategic opportunities, we may need to seek additional or alternative sources of financing. There can be no assurance that such financing would be available on satisfactory terms, if at all. If this financing were not available, it could be necessary for us to reevaluate our long-term operating plans to make more efficient use of our existing capital resources. The exact nature of any changes to our plans that would be considered depends on various factors, such as conditions in the factory-built housing industry and general economic conditions outside of our control.

36

The following is a summary of our cash flows for three months ended June 30, 2018 and July 1, 2017, respectively (in thousands):

	Three Months Ended
	June 30, 2018			July 1, 2017			Change
Cash, cash equivalents and restricted cash at beginning of the period	$	199,258		$	144,839		$	54,419
Net cash (used in) provided by operating activities	(2,115		)	1,704			(3,819		)
Net cash used in investing activities	(1,573		)	(608		)	(965		)
Net cash used in financing activities	(4,099		)	(2,378		)	(1,721		)
Cash, cash equivalents and restricted cash at end of the period	$	191,471		$	143,557		$	47,914

Net cash used in operating activities during the three months ended June 30, 2018 included additional lending to expand the Company's commercial and home-only lending programs. Additionally, loan origination activity in excess of proceeds from the sale of loans and increased accounts receivable resulting from higher home sales offset the cash generated from net income before non-cash charges during the period.

Consumer loan originations decreased to $33.6 million from $34.4 million for the three months endedJune 30, 2018 and July 1, 2017, respectively. Proceeds from sales of consumer loans provided $28.2 million in cash, compared to $29.3 million in the previous year. These decreases relate to the timing of loan originations and sales, as longer factory backlogs have extended the loan closing time frame.

With respect to consumer lending for the purchase of manufactured housing, states may classify manufactured homes for both legal and tax purposes as personal property rather than real estate. As a result, financing for the purchase of manufactured homes is characterized by shorter loan maturities and higher interest rates. Unfavorable changes in these factors and the current lack of availability of financing in the industry may have material negative effects on liquidity. See Item IA, "Risk Factors" in our Form 10-K.

Cavco has entered into programs to provide some of the capital used by inventory lenders to finance wholesale home purchases by retailers. The Company has also entered into direct commercial loan arrangements with distributors, communities and developers under which the Company provides funds for financing homes and has invested in community-based lending initiatives that provide home-only financing to new residents of certain manufactured home communities (see Note 7 to the Consolidated Financial Statements). Further, the Company has invested in and developed home-only loan pools and lending programs to attract third party financier interest and to grow sales of new homes through traditional distribution point as well.

Cash used for investing activities during the three months ended June 30, 2018increased compared to the same period last year as the company continues to focus on investing in production capacity and efficiency initiatives, which has led to increased purchases of property, plant and equipment during the current period compared to last year.

Financing activities used $1.7 millionof additional cash during the current period compared to the same period last year, as payments related to stock option exercises and securitized financings were higher in the current period, offset by lower proceeds from secured credit facilities.

Financings. As of June 30, 2018, there were two classes of securitized bond debt outstanding: one totaling $19.7 million with a coupon rate of 5.20% with a call date in January 2019, and one totaling $21.8 million with a coupon rate of 5.846% with a call date in July 2019. It is anticipated that we will purchase or refinance these facilities prior to their call dates.

37

CountryPlace's securitized debt is subject to provisions that require certain levels of overcollateralization. Overcollateralization is equal to CountryPlace's equity in the bonds. Failure to satisfy these provisions could cause cash, which would normally be distributed to CountryPlace, to be used for repayment of the principal of the related Class A bonds until the required overcollateralization level is reached. During periods when the overcollateralization is below the specified level, cash collections from the securitized loans in excess of servicing fees payable to CountryPlace and amounts owed to the Class A bondholders, trustee and surety, are applied to reduce the Class A debt until such time overcollateralization reaches the specified level. Therefore, failure to meet the overcollateralization requirement could adversely affect the timing of cash flows received by CountryPlace. However, principal payments of the securitized debt, including accelerated amounts, is payable only from cash collections from the securitized loans and no additional sources of repayment are required or permitted. As of June 30, 2018, the 2005-1 and 2007-1 securitized portfolios were within the required overcollateralization level.

The Company has entered into secured credit facilities with independent third party banks with draw periods from one to fifteen months and maturity dates of ten years after the expiration of the draw periods. The proceeds are used by the Company to originate and hold consumer home-only loans secured by manufactured homes, which are pledged as collateral to the facilities. Upon completion of the draw down period, the facilities are converted into an amortizing loan based on a 20 or 25 year amortization period with a balloon payment due upon maturity. The maximum advance for loans under this program is 80% of the outstanding collateral principal balance, with the Company providing the remaining funds. As of June 30, 2018, the outstanding balance of the converted loans was $11.6 million at a weighted average interest rate of 4.9%, with $5.0 million available to draw. Amounts drawn will bear interest at 5.15%. Once converted, the initial annual interest rate of 5.15% will adjust every 5 years beginning in 2024 to Prime plus 0.40%. The per annum interest rate shall never be less than 5.00% or greater than 6.00%.

Critical Accounting Policies

In Part II, Item 7 of our Form 10-K, under the heading "Critical Accounting Policies," we have provided a discussion of the critical accounting policies that management believes affect its more significant judgments and estimates used in the preparation of our Consolidated Financial Statements.

Recent Accounting Pronouncements

See Note 1 to the Consolidated Financial Statements for a discussion of recently issued and adopted accounting pronouncements.

Off Balance Sheet Arrangements

See Note 16 to the Consolidated Financial Statements for a discussion of our off-balance sheet commitments.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

There have been no material changes from the quantitative and qualitative disclosures about market risk previously disclosed in our 2018 Annual Report on Form 10-K.

Item 4. Controls and Procedures

(a) Disclosure Controls and Procedures

We carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in the Exchange Act Rules 13a-15(e) and 15d-15(e)). Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2018, our disclosure controls and procedures were effective.

38

(b) Changes in Internal Control over Financial Reporting

There have been no changes in our internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) that occurred during the fiscal quarter ended June 30, 2018, which have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Information regarding reportable legal proceedings is contained in Part I, Item 3, Legal Proceedings, in our 2018 Annual Report on Form 10-K. The following describes legal proceedings, if any, that became reportable during the period ended June 30, 2018, and, if applicable, amends and restates descriptions of previously reported legal proceedings in which there have been material developments during such quarter.

We are party to certain legal proceedings that arise in the ordinary course and are incidental to our business. Certain of the claims pending against us in these proceedings allege, among other things, breach of contract, breach of express and implied warranties, construction defect, deceptive trade practices, unfair insurance practices, product liability and personal injury. Although litigation is inherently uncertain, based on past experience and the information currently available, management does not believe that the currently pending and threatened litigation or claims will have a material adverse effect on the Company's consolidated financial position, liquidity or results of operations. However, future events or circumstances currently unknown to management will determine whether the resolution of pending or threatened litigation or claims will ultimately have a material effect on our consolidated financial position, liquidity or results of operations in any future reporting periods.

Item 1A. Risk Factors

In addition to the other information set forth in this Report, you should carefully consider the factors discussed in Part I, Item 1A, Risk Factors, in our 2018 Annual Report on Form 10-K, which could materially affect our business, financial condition or future results. The risks described in this Report and in our Annual Report on Form 10-K are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.

Item 6. Exhibits

Exhibit No.	Exhibit
31.1	Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 - Rule 13a-14(a)/15d-14(a)
31.2	Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 - Rule 13a-14(a)/15d-14(a)
32	Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following materials contained in this Quarterly Report on Form 10-Q for the period ended June 30, 2018 were formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Comprehensive Income, (iii) Consolidated Statements of Cash Flows and (iv) Notes to Consolidated Financial Statements

All other items required under Part II are omitted because they are not applicable.

39

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.

Cavco Industries, Inc.
Registrant
Signature	Title	Date
/s/ Joseph H. Stegmayer	Chairman, President and	August 7, 2018
Joseph H. Stegmayer	Chief Executive Officer
	(Principal Executive Officer)
/s/ Daniel L. Urness	Executive Vice President, Treasurer and	August 7, 2018
Daniel L. Urness	Chief Financial Officer
	(Principal Financial and Accounting Officer)

40

EX-31.1

Exhibit 31.1

Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Joseph H. Stegmayer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Cavco Industries, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated:	August 7, 2018
By:	/s/ Joseph H. Stegmayer
	Joseph H. Stegmayer
	Chairman, President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Daniel L. Urness, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Cavco Industries, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated:	August 7, 2018
By:	/s/ Daniel L. Urness
	Daniel L. Urness
	Executive Vice President, Treasurer, and Chief Financial Officer

EX-32

Exhibit 32

Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. 1350, As Adopted

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Cavco Industries, Inc. (the “Registrant”) on Form 10-Q for the period ending June 30, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), we, Joseph H. Stegmayer and Daniel L. Urness, Chief Executive Officer and Chief Financial Officer, respectively, of the Registrant, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that to our knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

August 7, 2018

/s/ Joseph H. Stegmayer

Joseph H. Stegmayer

Chairman, President and

Chief Executive Officer

/s/ Daniel L. Urness

Daniel L. Urness

Executive Vice President, Treasurer, and Chief Financial Officer

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	Jun. 30, 2018	Aug. 03, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	CAVCO INDUSTRIES INC.
Entity Central Index Key	0000278166
Current Fiscal Year End Date	--03-30
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		9,068,067

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Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018
Current assets:
Cash and cash equivalents	$ 177,487	$ 186,766
Restricted cash, current	12,918	11,228
Accounts receivable, net	39,922	35,043
Short-term investments	14,268	11,866
Current portion of consumer loans receivable, net	34,450	31,096
Current portion of commercial loans receivable, net	10,902	5,481
Inventories	110,437	109,152
Prepaid expenses and other current assets	28,853	27,961
Total current assets	429,237	418,593
Restricted cash	1,066	1,264
Investments	32,879	33,573
Consumer loans receivable, net	63,707	63,855
Commercial loans receivable, net	19,731	11,120
Property, plant and equipment, net	64,005	63,355
Goodwill and other intangibles, net	82,936	83,020
Total assets	693,561	674,780
Current liabilities:
Accounts payable	24,615	23,785
Accrued liabilities	126,774	126,500
Current portion of securitized financings and other	24,237	26,044
Total current liabilities	175,626	176,329
Securitized financings and other	33,884	33,768
Deferred income taxes	8,364	7,577
Stockholders' equity:
Preferred stock, $.01 par value; 1,000,000 shares authorized; No shares issued or outstanding	0	0
Common stock, $.01 par value; 40,000,000 shares authorized; Outstanding 9,061,306 and 9,044,858 shares, respectively	91	90
Additional paid-in capital	244,627	246,197
Retained earnings	231,147	209,381
Accumulated other comprehensive income (loss)	(178)	1,438
Total stockholders' equity	475,687	457,106
Total liabilities and stockholders' equity	$ 693,561	$ 674,780

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Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2018	Mar. 31, 2018
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares outstanding	9,061,306	9,044,858

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Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Income Statement [Abstract]
Net revenue	$ 246,403	$ 206,816
Cost of sales	194,927	164,850
Gross profit	51,476	41,966
Selling, general and administrative expenses	29,213	26,305
Income from operations	22,263	15,661
Interest expense	(972)	(1,048)
Other income, net	2,845	1,038
Income before income taxes	24,136	15,651
Income tax expense	(4,445)	(3,898)
Net income	19,691	11,753
Comprehensive income:
Net income	19,691	11,753
Reclassification adjustment for net gains realized in income, before Tax	0	(76)
Reclassification adjustment for net gains realized in income, Tax	0	27
Net change in unrealized position of investments, before Tax	6	(833)
Net change in unrealized position of investments, Tax	(1)	327
Comprehensive income	$ 19,696	$ 11,198
Net income per share attributable to Cavco common stockholders:
Basic (usd per share)	$ 2.18	$ 1.30
Diluted (usd per share)	$ 2.12	$ 1.28
Weighted average shares outstanding:
Basic (in shares)	9,048,579	9,006,999
Diluted (in shares)	9,267,048	9,162,491

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
OPERATING ACTIVITIES
Net income	$ 19,691	$ 11,753
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,104	974
Provision for credit losses	75	27
Deferred income taxes	640	(62)
Stock-based compensation expense	599	513
Non-cash interest income, net	139	254
Gain on sale of property, plant and equipment, net	(40)	(64)
Gain (loss) on sales of loans and investments	3,361	2,110
Changes in operating assets and liabilities:
Accounts receivable	(4,879)	(1,974)
Consumer loans receivable originated	(33,617)	(34,389)
Proceeds from sales of consumer loans	28,206	29,252
Principal payments on consumer loans receivable	3,462	3,088
Inventories	(1,285)	(3,727)
Prepaid expenses and other current assets	(282)	2,426
Commercial loans receivable	(14,103)	(469)
Accounts payable and accrued liabilities	1,814	(3,280)
Net cash (used in) provided by operating activities	(2,115)	1,704
INVESTING ACTIVITIES
Purchases of property, plant and equipment	(1,679)	(594)
Payments to Acquire Businesses, Gross	0	(564)
Proceeds from sale of property, plant and equipment	49	387
Purchases of investments	(2,026)	(1,646)
Proceeds from sale of investments	2,083	1,809
Net cash used in investing activities	(1,573)	(608)
FINANCING ACTIVITIES
Payments from exercise of stock options	2,168	1,780
Proceeds from secured financings and other	226	1,505
Payments on securitized financings	(2,157)	(2,103)
Net cash used in financing activities	(4,099)	(2,378)
Net decrease in cash, cash equivalents and restricted cash	(7,787)	(1,282)
Cash, cash equivalents and restricted cash at beginning of the period	199,258	144,839
Cash, cash equivalents and restricted cash at end of the period	191,471	143,557
Supplemental disclosures of cash flow information:
Cash paid for income taxes	6,170	2,118
Cash paid for interest	663	767
Assets Acquired under Capital Lease	$ 0	$ 1,749

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Basis of Presentation

3 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited Consolidated Financial Statements of Cavco Industries, Inc., and its subsidiaries (collectively, the "Company" or "Cavco"), have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") for Quarterly Reports on Form 10-Q and Article 10 of SEC Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to such rules and regulations.

In the opinion of management, these statements include all of the normal recurring adjustments necessary to fairly state the Company's Consolidated Financial Statements. Certain prior period amounts have been reclassified to conform to current period classification. The Company has evaluated subsequent events after the balance sheet date through the date of the filing of this report with the SEC; there were no disclosable subsequent events. These Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the Notes to the Consolidated Financial Statements ("Notes") included in the Company's 2018 Annual Report on Form 10-K for the year ended March 31, 2018, filed with the SEC on May 30, 2018 ("Form 10-K").

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and the accompanying Notes. Actual results could differ from those estimates. The Consolidated Statements of Comprehensive Income and Consolidated Statements of Cash Flows for the interim periods are not necessarily indicative of the results or cash flows for the full year. The Company operates on a 52-53 week fiscal year ending on the Saturday nearest to March 31 of each year. Each fiscal quarter consists of 13 weeks, with an occasional fourth quarter extending to 14 weeks, if necessary, for the fiscal year to end on the Saturday nearest to March 31. The Company's current fiscal year will end on March 30, 2019.

The Company operates principally in two segments: (1) factory-built housing, which includes wholesale and retail systems-built housing operations, and (2) financial services, which includes manufactured housing consumer finance and insurance. The Company designs and builds a wide variety of affordable manufactured homes, modular homes and park model RVs in 20 factories located throughout the United States, which are sold to a network of independent retailers, through the Company's 39 Company-owned retail stores and to community owners and developers. Our financial services group is comprised of a mortgage subsidiary, CountryPlace Acceptance Corp. ("CountryPlace"), and an insurance subsidiary, Standard Casualty Co. ("Standard Casualty"). CountryPlace is an approved Federal National Mortgage Association ("FNMA" or "Fannie Mae") and Federal Home Loan Mortgage Corporation ("FHLMC" or "Freddie Mac") seller/servicer, and a Government National Mortgage Association ("GNMA" or "Ginnie Mae") mortgage-backed securities issuer which offers conforming mortgages, non-conforming mortgages and home-only loans to purchasers of factory-built homes. Standard Casualty provides property and casualty insurance to owners of manufactured homes.

Adoption of New Accounting Standards.

In May 2014, the Federal Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASC 606"), which requires entities to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We adopted ASC 606 using the modified retrospective method for contracts that were not completed as of April 1, 2018, and recorded a reduction of $600,000 to accrued liabilities and a corresponding increase to retained earnings related to gross margin on home sales that were previously deferred for the cumulative effect of the adoption. Prior periods were not restated. There were no significant changes to processes or internal controls as a result of the adoption of ASC 606. See Note 2 for additional information.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"). The Company adopted ASU 2016-01 on April 1, 2018 using the modified retrospective transition method. Upon adoption, we reclassified $1.6 million in gains, net of tax, related to available-for-sale equity investment securities from accumulated other comprehensive income to retained earnings as a cumulative-effect adjustment. Under the new guidance, these securities will continue to be measured at fair value; however, the changes in unrealized net holding gains and losses will be reported in earnings. Comparative information continues to be reported under the accounting standards in effect for the period. The effect of the change for the three months endedJune 30, 2018 was an increase to income before income taxes of approximately $1.6 million, which is either included in Net revenue or Other income, net on the Consolidated Statements of Comprehensive Income, depending on the nature of the investment.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) ("ASU 2016-18"), which requires restricted cash to be included with cash and cash equivalents when reconciling beginning and ending cash on the statement of cash flows. We adopted ASU 2016-18 on April 1, 2018 using the retrospective transition method. The comparative information in our Consolidated Statements of Cash Flows has been adjusted accordingly. The impact from adoption of this guidance was not material to our Consolidated Statements of Cash Flows. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the accompanying Consolidated Balance Sheets to the combined amounts shown on the Consolidated Statements of Cash Flows (in thousands):

	June 30, 2018		July 1, 2017
Cash and cash equivalents	$	177,487	$	129,509
Restricted cash, current	12,918		13,323
Restricted cash	1,066		725
	$	191,471	$	143,557

Accounting Standards Issued But Not Yet Adopted.

In February 2016, the FASB issued ASU 2016-02, Leases(Topic 842) ("ASU 2016-02"). ASU 2016-02 will be effective beginning with the first quarter of the Company's fiscal year 2020, with early adoption permitted. The amendments require balance sheet recognition of leased assets and lease liabilities for most leases, and recognition of expenses in the income statement in a manner similar to current accounting treatment. In addition, disclosures of key information about leasing arrangements are required. Upon adoption, leases will be recognized and measured at the beginning of the earliest period presented using a modified retrospective approach. The Company does not plan to early adopt the guidance and is currently evaluating the effect ASU 2016-02 will have on the Company's Consolidated Financial Statements and disclosures.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). ASU 2016-13 changes the impairment model for most financial assets and certain other instruments to base measurement on expected losses through a forward-looking model rather than a model based on incurred losses. The guidance also requires increased disclosures. ASU 2016-13 will be effective beginning with the first quarter of the Company's fiscal year 2021 and is to be applied using a modified retrospective transition method with early adoption permitted. The Company does not plan to early adopt the guidance and is currently evaluating the effect ASU 2016-13 will have on the Company's Consolidated Financial Statements and disclosures.

In March 2017, the FASB issued ASU 2017-08, Receivables — Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities ("ASU 2017-08"), which requires the premium on callable debt securities to be amortized to the earliest call date as opposed to the contractual life of the security. ASU 2017-08 will be effective beginning with the first quarter of the Company's fiscal year 2020. The Company is currently evaluating the effect ASU 2017-08 will have on the Company's Consolidated Financial Statements and disclosures.

From time to time, new accounting pronouncements are issued by the FASB and other regulatory bodies that are adopted by the Company as of the specified effective dates. Unless otherwise discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company's Consolidated Financial Statements upon adoption.

For a description of other significant accounting policies used by the Company in the preparation of its Consolidated Financial Statements, please refer to Note 1 of the Notes to Consolidated Financial Statements on Form 10-K.

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Revenue from Contracts with Customers (Notes)

3 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

Revenue from Contracts with Customers

As discussed in Note 1, we adopted ASC 606 on April 1, 2018. Our revenue recognition practices under ASC 606 do not differ materially from prior practices. Under ASC 606, revenues are recognized when a good or service is transferred to a customer. A good or service is transferred when, or as, the customer obtains control of that good or service. Revenues are based on the consideration we expect to receive in connection with our promises to deliver goods and services to our customers.

Factory-Built Housing Revenue Recognition - Wholesale. Revenue from homes sold to independent retailers is generally recognized when the home is shipped, at which time title passes to the independent retailer and collectability is reasonably assured. Homes sold to independent retailers are generally either paid upon shipment or floor plan financed by the independent retailer through standard industry financing arrangements, which can include repurchase agreements. Manufacturing sales financed under repurchase agreements are reduced by a provision for estimated repurchase obligations (see Note 16).

Prior to the adoption of ASC 606, revenue from homes sold under commercial loan programs involving funds provided by the Company were either deferred until such time that payment for the related commercial loan was received by the Company or recognized when the home was shipped and title transferred, depending on the nature of the program and borrower. Upon adoption of ASC 606, we generally recognize home sales revenue upon shipment and transfer of title, as it is probable that substantially all of the consideration in exchange for the goods or services transferred to the customer will be collected. One consideration under the guidance requires the evaluation of the financing component of the related loan program. If it is determined that the interest rate charged under the loan program is less than the market rate, the Company will reduce the transaction price by an amount for deferred interest. In these cases, interest income will be accrued and recognized over the life of the loan using the effective interest method. A significant amount of the Company's loan programs are offered at market rates.

Factory-Built Housing Revenue Recognition - Retail. Sales by Company-owned retail locations are generally recognized when the customer has entered into a legally binding sales contract, the home is delivered and permanently located at the customer's site, accepted by the customer, title has transferred and funding is assured.

Site Improvements on Retail Sales. Under previous guidance, the Company recorded the sales of subcontracted ancillary services, such as preparation of the home site or other exterior enhancements, net of associated costs. Such services are provided as a convenience to the customer. As the Company is involved in the selection of subcontractors, under ASC 606, we have concluded that it is appropriate to recognize the sale of these ancillary services on a gross basis. The revenue associated with these programs for the three months endedJune 30, 2018 and July 1, 2017 were $6.5 million and $5.1 million, respectively.

Additional Items. Expected consideration, and therefore revenue, reflects reductions for returns, allowances, and other incentives, some of which may be contingent on future events. Additionally, we have a volume rebate program under which certain sales to retailers, builders and developers can qualify for cash rebates generally based on the level of sales attained during a twelve-month period. Volume rebates are accrued at the time of sale and are recorded as a reduction of revenue.

In customer contracts for retail sales of manufactured homes, consideration includes certain state and local excise taxes billed to customers when those taxes are levied directly upon us by the taxing authorities. Expected consideration excludes sales and other taxes collected on behalf of taxing authorities. Revenue includes consideration for shipping and other fulfillment activities performed prior to the customer obtaining control of the goods. We also elect to treat consideration for shipping performed as a fulfillment activity.

Practical Expedients and Exemptions. We generally expense sales commissions when incurred because the amortization period would be one year or less. These costs are recorded within selling, general and administrative expenses. In addition, we do not disclose the value of unsatisfied performance obligations for contracts with an expected length of one year or less.

Financial Services Revenue Recognition. Financial services revenue is generally not within the scope of ASC 606, with the exception of insurance agency commissions received from third-party insurance companies. The Company recognizes such revenue upon execution of the insurance policy, where the Company has no future or ongoing obligation.

Disaggregation of Revenue. The following table summarizes customer contract revenues disaggregated by reportable segment and the source of the revenue for the three months endedJune 30, 2018 (in thousands). All revenue from customers is recognized at a point in time, either when the customer takes delivery or when a third-party insurance contract is executed, as more fully discussed above. Other items included in our consolidated revenues are primarily related to financial services, including manufactured housing consumer finance and insurance, which are not within the scope of ASC 606. See Form 10-K for revenue recognition policies related to these items.

	Three Months Ended June 30, 2018
Factory-built housing
U.S. Housing and Urban Development code homes	$	186,316
Modular homes	22,447
Park model RVs	11,727
Other (1)	12,272
Net revenue from factory-built housing	232,762
Financial services
Insurance agency commissions received from third-party insurance companies	632
Other	13,009
Net revenue from financial services	13,641
Total net revenue	$	246,403

(1) Other factory-built housing revenue from ancillary products and services including used homes, freight and other services.

Impacts on Consolidated Financial Statements. The impact to our consolidated financial statements as a result of ASC 606 implementation are as follows (in thousands):

	June 30, 2018
Consolidated Balance Sheet	As Reported		Adjustments			Balance without ASC 606 Adoption
Accrued liabilities	$	126,774	$	1,644		$	128,418
Total current liabilities	175,626		1,644			177,270
Deferred income taxes	8,364		(441		)	7,923
Retained earnings	231,147		(1,203		)	229,944
Total stockholders’ equity	475,687		(1,203		)	474,484

	Three Months Ended June 30, 2018
Consolidated Statement of Comprehensive Income	As Reported			Adjustments			Balance without ASC 606 Adoption
Net revenue	$	246,403		$	(13,669	)	$	232,734
Cost of sales	194,927			(12,389		)	182,538
Gross profit	51,476			(1,280		)	50,196
Selling, general and administrative expenses	29,213			(308		)	28,905
Income from operations	22,263			(972		)	21,291
Income before income taxes	24,136			(972		)	23,164
Income tax expense	(4,445		)	225			(4,220		)
Net income	19,691			(747		)	18,944

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Restricted Cash

3 Months Ended

Jun. 30, 2018

Cash and Cash Equivalents [Abstract]

Restricted Cash

Restricted Cash

Restricted cash consists of the following (in thousands):

	June 30, 2018		March 31, 2018
Cash related to CountryPlace customer payments to be remitted to third parties	$	10,626	$	9,180
Cash related to CountryPlace customer payments on securitized loans to be remitted to bondholders	1,343		1,311
Other restricted cash	2,015		2,001
	$	13,984	$	12,492

Corresponding amounts are recorded in accounts payable and accrued liabilities for customer payments, deposits and other restricted cash.

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Investments

3 Months Ended

Jun. 30, 2018

Investments, Debt and Equity Securities [Abstract]

Investments

Investments

Investments consist of the following (in thousands):

	June 30, 2018		March 31, 2018
Available-for-sale debt securities	$	15,523	$	16,181
Marketable equity securities	12,736		10,405
Non-marketable equity investments	18,888		18,853
	$	47,147	$	45,439

The Company's investments in marketable equity securities consist of common stock holdings of industrial and other companies.

Non-marketable equity investments includes $15.0 million as of June 30, 2018 and March 31, 2018, of contributions to equity-method investments in community-based initiatives that buy and sell our homes and provide home-only financing to residents of certain manufactured home communities. Other non-marketable investments include investments in other distribution operations.

The following tables summarize the Company's available-for-sale debt securities, gross unrealized gains and losses and fair value, aggregated by investment category (in thousands):

	June 30, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury and government debt securities	$	300	$	—	$	(8	)	$	292
Residential mortgage-backed securities	7,334		—		(182		)	7,152
State and political subdivision debt securities	6,038		109		(118		)	6,029
Corporate debt securities	2,076		2		(28		)	2,050
	$	15,748	$	111	$	(336	)	$	15,523

	March 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury and government debt securities	$	300	$	—	$	(7	)	$	293
Residential mortgage-backed securities	7,654		—		(155		)	7,499
State and political subdivision debt securities	6,377		109		(149		)	6,337
Corporate debt securities	2,081		1		(30		)	2,052
	$	16,412	$	110	$	(341	)	$	16,181

The following tables show the gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands):

	June 30, 2018
	Less than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Treasury and government debt securities	$	292	$	(8	)	$	—	$	—		$	292	$	(8	)
Residential mortgage-backed securities	3,128		(64		)	4,019		(118		)	7,147		(182		)
State and political subdivision debt securities	1,932		(38		)	2,169		(80		)	4,101		(118		)
Corporate debt securities	1,432		(13		)	365		(15		)	1,797		(28		)
	$	6,784	$	(123	)	$	6,553	$	(213	)	$	13,337	$	(336	)

	March 31, 2018
	Less than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Treasury and government debt securities	$	293	$	(7	)	$	—	$	—		$	293	$	(7	)
Residential mortgage-backed securities	3,185		(52		)	3,909		(103		)	7,094		(155		)
State and political subdivision debt securities	2,224		(40		)	2,180		(109		)	4,404		(149		)
Corporate debt securities	1,384		(12		)	367		(18		)	1,751		(30		)
	$	7,086	$	(111	)	$	6,456	$	(230	)	$	13,542	$	(341	)

Based on the Company's ability and intent to hold the investments for a reasonable period of time sufficient for a forecasted recovery of fair value, the Company does not consider any investments to be other-than-temporarily impaired at June 30, 2018.

The amortized cost and fair value of the Company's investments in debt securities, by contractual maturity, are shown in the table below (in thousands). Expected maturities differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	June 30, 2018
	Amortized Cost		Fair Value
Due in less than one year	$	1,125	$	1,108
Due after one year through five years	3,020		2,934
Due after five years through ten years	930		908
Due after ten years	3,339		3,421
Mortgage-backed securities	7,334		7,152
	$	15,748	$	15,523

We recognize investment gains and losses on debt securities when we sell or otherwise dispose of securities on a specific identification method. There were no gross gains or losses realized during the three months ending June 30, 2018. During the three months ending July 1, 2017, there were no gross gains realized and $10,000 in gross losses realized.

Beginning in fiscal year 2019, we recognize unrealized gains and losses on marketable equity securities from changes in market prices during the period as a component of earnings in the Consolidated Statements of Comprehensive Income. The net investment gains and losses for the three months ended June 30, 2018 and July 1, 2017 are as follows (in thousands):

	Three Months Ended June 30, 2018
	June 30, 2018			July 1, 2017
Marketable equity securities:
Gains on securities held	$	1,610		$	—
Losses on securities sold	(40		)	—
Gross realized gains	—			165
Gross realized losses	—			(51		)
Total net gain on marketable equity securities	$	1,570		$	114

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Inventories

3 Months Ended

Jun. 30, 2018

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories consist of the following (in thousands):

	June 30, 2018		March 31, 2018
Raw materials	$	38,331	$	36,124
Work in process	13,240		13,670
Finished goods and other	58,866		59,358
	$	110,437	$	109,152

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Consumer Loans Receivable

3 Months Ended

Jun. 30, 2018

Receivables [Abstract]

Consumer Loans Receivable

Consumer Loans Receivable

The following table summarizes consumer loans receivable (in thousands):

	June 30, 2018			March 31, 2018
Loans held for investment (at Acquisition Date)	$	49,825		$	51,798
Loans held for investment (originated after Acquisition Date)	23,874			21,183
Loans held for sale	14,535			12,830
Construction advances	12,259			11,088
Consumer loans receivable	100,493			96,899
Deferred financing fees and other, net	(1,949		)	(1,551		)
Allowance for loan losses	(387		)	(397		)
Consumer loans receivable, net	$	98,157		$	94,951

The allowance for loan losses is developed at the loan level and allocated to specific individual loans or to impaired loans. A range of probable losses is calculated after giving consideration to, among other things, the loan characteristics, and historical loss experience. The Company then makes a determination of the best estimate within the range of loan losses. The allowance for loan losses reflects the Company’s judgment of the probable loss exposure on its loans held for investment portfolio.

As of the date of the Palm Harbor acquisition ("Acquisition Date"), the Company determined the excess of the loan pool's scheduled contractual principal and contractual interest payments over all cash flows expected as an amount that includes interest that cannot be accreted into interest income (the non-accretable difference). The cash flow expected to be collected in excess of the carrying value of the acquired loans includes interest that is accreted into interest income over the remaining life of the loans (referred to as accretable yield). Interest income on consumer loans receivable is recognized as net revenue.

	June 30, 2018			March 31, 2018
	(in thousands)
Consumer loans receivable held for investment – contractual amount	$	114,919		$	120,096
Purchase discount
Accretable	(42,873		)	(44,481		)
Non-accretable	(22,214		)	(23,711		)
Less consumer loans receivable reclassified as other assets	(7		)	(106		)
Total acquired consumer loans receivable held for investment, net	$	49,825		$	51,798

Over the life of the acquired loans, the Company estimates cash flows expected to be collected to determine if an allowance for loan loss related to loans acquired subsequent to the Acquisition Date is required. The weighted averages of assumptions used in the calculation of expected cash flows to be collected were as follows:

	June 30, 2018		March 31, 2018
Prepayment rate	16.1	%	16.0	%
Default rate	1.2	%	1.2	%

Assuming there was a 1% unfavorable variation from the expected level, for each key assumption, the expected cash flows for the life of the portfolio, as of June 30, 2018, would decrease by approximately $1.2 million and $3.3 million for the expected prepayment rate and expected default rate, respectively.

The changes in accretable yield on acquired consumer loans receivable held for investment were as follows (in thousands):

	Three Months Ended
	June 30, 2018			July 1, 2017
Balance at the beginning of the period	$	44,481		$	56,686
Accretion	(1,899		)	(2,210		)
Reclassifications from (to) non-accretable discount	291			436
Balance at the end of the period	$	42,873		$	54,912

The consumer loans held for investment had the following characteristics:

	June 30, 2018		March 31, 2018
Weighted average contractual interest rate	8.51	%	8.57	%
Weighted average effective interest rate	8.85	%	9.34	%
Weighted average months to maturity	168		168

The following table disaggregates CountryPlace's gross consumer loans receivable for each class by portfolio segment and credit quality indicator as of the time of origination (in thousands):

	June 30, 2018
	Consumer Loans Held for Investment
	Securitized 2005		Securitized 2007		Unsecuritized		Construction Advances		Consumer Loans Held For Sale		Total
Asset Class
Credit Quality Indicator (FICO® score)
Chattel loans
0-619	$	439	$	271	$	323	$	—	$	—	$	1,033
620-719	9,668		6,889		10,351		—		—		26,908
720+	10,186		6,139		11,958		—		504		28,787
Other	49		—		408		—		—		457
Subtotal	20,342		13,299		23,040		—		504		57,185
Conforming mortgages
0-619	—		—		155		—		189		344
620-719	—		—		2,232		7,950		8,350		18,532
720+	—		—		298		4,309		5,492		10,099
Other	—		—		116		—		—		116
Subtotal	—		—		2,801		12,259		14,031		29,091
Non-conforming mortgages
0-619	81		398		1,030		—		—		1,509
620-719	1,061		4,151		3,061		—		—		8,273
720+	1,277		2,493		377		—		—		4,147
Other	—		—		278		—		—		278
Subtotal	2,419		7,042		4,746		—		—		14,207
Other loans	—		—		10		—		—		10
	$	22,761	$	20,341	$	30,597	$	12,259	$	14,535	$	100,493

	March 31, 2018
	Consumer Loans Held for Investment
	Securitized 2005		Securitized 2007		Unsecuritized		Construction Advances		Consumer Loans Held For Sale		Total
Asset Class
Credit Quality Indicator (FICO® score)
Chattel loans
0-619	$	465	$	354	$	330	$	—	$	—	$	1,149
620-719	10,102		7,107		8,587		—		245		26,041
720+	10,594		6,410		11,285		—		155		28,444
Other	49		—		403		—		—		452
Subtotal	21,210		13,871		20,605		—		400		56,086
Conforming mortgages
0-619	—		—		156		141		179		476
620-719	—		—		2,137		6,428		6,479		15,044
720+	—		—		199		4,519		5,663		10,381
Subtotal	—		—		2,608		11,088		12,430		26,126
Non-conforming mortgages
0-619	82		405		1,047		—		—		1,534
620-719	1,120		4,378		3,093		—		—		8,591
720+	1,348		2,526		395		—		—		4,269
Other	—		—		282		—		—		282
Subtotal	2,550		7,309		4,817		—		—		14,676
Other loans	—		—		11		—		—		11
	$	23,760	$	21,180	$	28,041	$	11,088	$	12,830	$	96,899

Loan contracts secured by collateral that is geographically concentrated could experience higher rates of delinquencies, default and foreclosure losses than loan contracts secured by collateral that is more geographically dispersed. As of June 30, 2018, 45.6% of the outstanding principal balance of the consumer loans receivable portfolio is concentrated in Texas and 10.5% is concentrated in Florida. As of March 31, 2018, 44.2% of the outstanding principal balance of the consumer loans receivable portfolio was concentrated in Texas and 11.0% was concentrated in Florida. Other than Texas and Florida, no other state had concentrations in excess of 10% of the principal balance of the consumer loans receivable as of June 30, 2018.

Collateral for repossessed loans is acquired through foreclosure or similar proceedings and is recorded at the estimated fair value of the home, less the costs to sell. At repossession, the fair value of the collateral is computed based on the historical recovery rates of previously charged-off loans; the loan is charged off and the loss is recorded to the allowance for loan losses. On a monthly basis, the fair value of the collateral is adjusted to the lower of the amount recorded at repossession or the estimated sales price less estimated costs to sell, based on current information. Repossessed homes totaled approximately $1.1 million and $1.5 million as of June 30, 2018 and March 31, 2018, respectively, and are included in Prepaid expenses and other current assets in the Consolidated Balance Sheet. Foreclosure or similar proceedings in progress totaled approximately $1.6 million and $1.1 million as of June 30, 2018 and March 31, 2018, respectively.

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Commercial Loans Receivables and Allowance for Loan Loss

3 Months Ended

Jun. 30, 2018

Receivables [Abstract]

Commercial Loans Receivables and Allowance for Loan Loss

Commercial Loans Receivable and Allowance for Loan Losses

The Company's commercial loans receivable balance consists of two classes: (i) direct financing arrangements for the home product needs of our independent retailers, communities and developers; and (ii) amounts loaned by the Company under participation financing programs.

Under the terms of the direct programs, the Company provides funds for independent retailers, communities and developers' financed home purchases. Notes are secured by the homes as collateral and, in some instances, other security depending on the circumstances. The other terms of direct arrangements vary depending on the needs of the borrower and the opportunity for the Company.

Under the terms of the participation programs, the Company provides loans to independent floor plan lenders, representing a significant portion of the funds that such financiers then lend to retailers to finance their inventory purchases. The participation commercial loan receivables are unsecured general obligations of the independent floor plan lenders.

Commercial loans receivable, net, consisted of the following by class of financing notes receivable (in thousands):

	June 30, 2018			March 31, 2018
Direct loans receivable	$	30,414		$	16,368
Participation loans receivable	332			275
Allowance for loan losses	(113		)	(42		)
	$	30,633		$	16,601

The commercial loans receivable balance had the following characteristics:

	June 30, 2018		March 31, 2018
Weighted average contractual interest rate	5.5	%	4.6	%
Weighted average months to maturity	5		6

The Company evaluates the potential for loss from its participation loan programs based on each independent lender's overall financial stability, as well as historical experience, and has determined that an allowance for loan losses was not needed at June 30, 2018 or March 31, 2018.

With respect to direct programs with communities and developers, borrower activity is monitored on a regular basis and contractual arrangements are in place to provide adequate loss mitigation in the event of a default. For direct programs with independent retailers, the risk of loss is spread over numerous borrowers. Borrower activity is monitored in conjunction with third-party service providers, where applicable, to estimate the potential for loss on the related notes receivable, considering potential exposures, including repossession costs, remarketing expenses, impairment of value and the risk of collateral loss. The Company has historically been able to resell repossessed unused homes, thereby mitigating loss experience. If a default occurs and collateral is lost, the Company is exposed to loss of the full value of the home loan. If the Company determines that it is probable that a borrower will default, a specific reserve is determined and recorded within the estimated allowance for loan losses. The Company recorded an allowance for loan losses of $113,000 and $222,000 at June 30, 2018 and July 1, 2017, respectively.

The following table represents changes in the estimated allowance for loan losses, including related additions and deductions to the allowance for loan losses applicable to the direct programs (in thousands):

	Three Months Ended
	June 30, 2018		July 1, 2017
Balance at beginning of period	$	42	$	210
Provision for inventory finance credit losses	71		12
Loans charged off, net of recoveries	—		—
Balance at end of period	$	113	$	222

The following table disaggregates commercial loans receivable and the estimated allowance for loan losses for each class of financing receivable by evaluation methodology (in thousands):

	Direct Commercial Loans						Participation Commercial Loans
	June 30, 2018			March 31, 2018			June 30, 2018		March 31, 2018
Inventory finance notes receivable:
Collectively evaluated for impairment	$	11,349		$	4,193		$	—	$	—
Individually evaluated for impairment	19,065			12,175			332		275
	$	30,414		$	16,368		$	332	$	275
Allowance for loan losses:
Collectively evaluated for impairment	$	(113	)	$	(42	)	$	—	$	—
Individually evaluated for impairment	—			—			—		—
	$	(113	)	$	(42	)	$	—	$	—

Loans are subject to regular review and are given management's attention whenever a problem situation appears to be developing. Loans with indicators of potential performance problems are placed on watch list status and are subject to additional monitoring and scrutiny. Nonperforming status includes loans accounted for on a non-accrual basis and accruing loans with principal payments past due 90 days or more. The Company's policy is to place loans on nonaccrual status when interest is past due and remains unpaid 90 days or more or when there is a clear indication that the borrower has the inability or unwillingness to meet payments as they become due. The Company will resume accrual of interest once these factors have been remedied. At June 30, 2018, there are no commercial loans that are 90 days or more past due that are still accruing interest. Payments received on nonaccrual loans are recorded on a cash basis, first to interest and then to principal. At June 30, 2018, the Company was not aware of any potential problem loans that would have a material effect on the commercial receivables balance. Charge-offs occur when it becomes probable that outstanding amounts will not be recovered.

The following table disaggregates the Company's inventory finance receivables by class and credit quality indicator (in thousands):

	Direct Commercial Loans				Participation Commercial Loans
	June 30, 2018		March 31, 2018		June 30, 2018		March 31, 2018
Risk profile based on payment activity:
Performing	$	30,414	$	16,368	$	332	$	275
Watch list	—		—		—		—
Nonperforming	—		—		—		—
	$	30,414	$	16,368	$	332	$	275

The Company has concentrations of commercial loans receivable related to factory-built homes in excess of 10% located in the following states, measured as a percentage of commercial loans receivables principal balance outstanding:

	June 30, 2018		March 31, 2018
Arizona	16.0	%	16.7	%
California	13.4	%	14.4	%
Oregon	11.1	%	14.7	%
Texas	10.6	%	9.0	%

The risks created by these concentrations have been considered in the determination of the adequacy of the allowance for loan losses. The Company did not have concentrations in excess of 10% of the principal balance of the commercial loans receivables in any other states as of June 30, 2018 or March 31, 2018.

As of June 30, 2018 and March 31, 2018, the Company had concentrations with one independent third-party that equaled 22.3% and 37.4% of the principal balance outstanding, respectively, all of which was secured.

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Property, Plant and Equipment

3 Months Ended

Jun. 30, 2018

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, Plant and Equipment

Property, plant and equipment consisted of the following (in thousands):

	June 30, 2018			March 31, 2018
Property, plant and equipment, at cost:
Land	$	24,001		$	24,001
Buildings and improvements	39,963			39,613
Machinery and equipment	25,414			24,154
	89,378			87,768
Accumulated depreciation	(25,373		)	(24,413		)
Property, plant and equipment, net	$	64,005		$	63,355

Depreciation expense was $1.0 million and $882,000 for the three months endedJune 30, 2018 and July 1, 2017, respectively.

Included in the amounts above are certain assets under capital leases. See Note 9 for additional information.

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Capital Lease (Notes)

3 Months Ended

Jun. 30, 2018

Capital Leased Assets [Line Items]

Capital Leases in Financial Statements of Lessee Disclosure [Text Block]

Capital Leases

On April 3, 2017, in connection with the purchase of Lexington Homes, the Company recorded capital leases on manufacturing facilities and land in Lexington, Mississippi. The following amounts were recorded for the leased assets as of June 30, 2018 and March 31, 2018 (in thousands):

	June 30, 2018			March 31, 2018
Land	$	699		$	699
Buildings and improvements	1,050			1,050
	1,749			1,749
Accumulated amortization	(44		)	(35		)
Leased assets, net	$	1,705		$	1,714

Future minimum payments under the leases as of June 30, 2018 were as follows (in thousands):

FY 2019	$	103
FY 2020	766
FY 2021	73
FY 2022	73
FY 2023	73
Thereafter	196
Total remaining lease payments	$	1,284
Less: Amount representing interest	(148		)
Present value of future minimum lease payments	$	1,136

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Goodwill and Other Intangibles

3 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles

Goodwill and Other Intangibles

Goodwill and other intangibles consisted of the following (in thousands):

	June 30, 2018							March 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Indefinite-lived:
Goodwill	$	72,920	$	—		$	72,920	$	72,920	$	—		$	72,920
Trademarks and trade names	7,200		—			7,200		7,200		—			7,200
State insurance licenses	1,100		—			1,100		1,100		—			1,100
Total indefinite-lived intangible assets	81,220		—			81,220		81,220		—			81,220
Finite lived:
Customer relationships	7,100		(5,809		)	1,291		7,100		(5,756		)	1,344
Other	1,384		(959		)	425		1,384		(928		)	456
Total goodwill and other intangible assets	$	89,704	$	(6,768	)	$	82,936	$	89,704	$	(6,684	)	$	83,020

The Company recognized amortization expense of $84,000 and $92,000 during each three month period ending June 30, 2018 and July 1, 2017, respectively.

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Accrued Liabilities

3 Months Ended

Jun. 30, 2018

Payables and Accruals [Abstract]

Accrued Liabilities

Accrued Liabilities

Accrued liabilities consist of the following (in thousands):

	June 30, 2018		March 31, 2018
Customer deposits	$	23,774	$	21,294
Salaries, wages and benefits	20,055		24,416
Unearned insurance premiums	18,216		17,432
Estimated warranties	16,670		16,638
Accrued volume rebates	9,044		7,778
Insurance loss reserves	6,472		6,157
Company repurchase option on certain loans sold	5,264		5,637
Accrued insurance	4,543		5,320
Accrued taxes	2,368		1,986
Reserve for repurchase commitments	2,315		2,207
Capital lease obligation	1,136		1,155
Other	16,917		16,480
	$	126,774	$	126,500

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Warranties

3 Months Ended

Jun. 30, 2018

Product Warranties Disclosures [Abstract]

Warranties

Warranties

Activity in the liability for estimated warranties was as follows (in thousands):

	Three Months Ended
	June 30, 2018			July 1, 2017
Balance at beginning of period	$	16,638		$	15,479
Purchase accounting additions	—			838
Charged to costs and expenses	6,229			5,223
Payments and deductions	(6,197		)	(5,224		)
Balance at end of period	$	16,670		$	16,316

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Debt Obligations

3 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Debt, Policy [Policy Text Block]

Acquired securitized financings were recorded at fair value at the time of acquisition, which resulted in a discount, and subsequently are accounted for in a manner similar to ASC 310-30 to accrete the discount.

Debt Obligations

Debt Obligations

Debt obligations primarily consist of amounts related to loans sold that did not qualify for loan sale accounting treatment. The following table summarizes debt obligations (in thousands):

	June 30, 2018		March 31, 2018
Acquired securitized financings (acquired as part of the Palm Harbor transaction)
Securitized financing 2005-1	$	19,732	$	20,524
Securitized financing 2007-1	21,797		22,552
Other secured financings	5,009		4,966
Secured credit facilities	11,583		11,770
Total securitized financings and other, net	$	58,121	$	59,812

Acquired securitized financings were recorded at fair value at the time of acquisition, which resulted in a discount, and subsequently are accounted for in a manner similar to ASC 310-30 to accrete the discount.

The following table summarizes acquired securitized financings (in thousands):

	June 30, 2018			March 31, 2018
Securitized financings – contractual amount	$	44,226		$	46,591
Purchase discount
Accretable	(2,697		)	(3,515		)
Non-accretable (1)	—			—
Total acquired securitized financings, net	$	41,529		$	43,076

(1) There is no non-accretable difference, as the contractual payments on acquired securitized financing are determined by the cash collections from the underlying loans.

Over the life of the loans, the Company continues to estimate cash flows expected to be paid on securitized financings. The Company evaluates at the balance sheet date whether the present value of its securitized financings, determined using the effective interest rate, has increased or decreased. The present value of any subsequent change in cash flows expected to be paid adjusts the amount of accretable yield recognized on a prospective basis over the securitized financing's remaining life.

The changes in accretable yield on securitized financings were as follows (in thousands):

	Three Months Ended
	June 30, 2018			July 1, 2017
Balance at the beginning of the period	$	3,515		$	7,636
Accretion	(803		)	(871		)
Adjustment to cash flows	(15		)	(99		)
Balance at the end of the period	$	2,697		$	6,666

Prior to the Company's acquisition of Palm Harbor and CountryPlace, CountryPlace completed its initial securitization (2005-1), which was structured as a securitized borrowing. At the balance sheet dates of June 30, 2018 and March 31, 2018, only Class A-4, originally totaling $27.4 million with a coupon rate of 5.20%, remained outstanding, with a call date in January 2019. Additionally, CountryPlace completed its second securitized borrowing (2007-1), of which only Class A-4 originally totaling $25.1 million with a coupon rate of 5.846% remained outstanding at June 30, 2018 and March 31, 2018, with a call date in July 2019. It is anticipated that the Company will purchase or refinance these outstanding facilities at or prior to their call dates.

CountryPlace's securitized debt is subject to provisions that require certain levels of overcollateralization. Overcollateralization is equal to CountryPlace's equity in the bonds. Failure to satisfy these provisions could cause cash, which would normally be distributed to CountryPlace, to be used for repayment of the principal of the related Class A bonds until the required overcollateralization level is reached. During periods when the overcollateralization is below the specified level, cash collections from the securitized loans in excess of servicing fees payable to CountryPlace and amounts owed to the Class A bondholders, trustee and surety, are applied to reduce the Class A debt until such time overcollateralization reaches the specified level. Therefore, failure to meet the overcollateralization requirement could adversely affect the timing of cash flows received by CountryPlace. However, principal payments of the securitized debt, including accelerated amounts, is payable only from cash collections from the securitized loans and no additional sources of repayment are required or permitted. As of June 30, 2018, the 2005-1 and 2007-1 securitized portfolios were within the required overcollateralization level.

The Company has entered into secured credit facilities with independent third party banks with draw periods from one to fifteen months and maturity dates of ten years after the expiration of the draw periods. The proceeds are used by the Company to originate and hold consumer home-only loans secured by manufactured homes, which are pledged as collateral to the facilities. Upon completion of the draw down period, the facilities are converted into an amortizing loan based on a 20 or 25 year amortization period with a balloon payment due upon maturity. The maximum advance for loans under this program is 80% of the outstanding collateral principal balance, with the Company providing the remaining funds. As of June 30, 2018, the outstanding balance of the converted loans was $11.6 million at a weighted average interest rate of 4.9%, with $5.0 million available to draw. Amounts drawn will bear interest at 5.15%. Once converted, the initial annual interest rate of 5.15% will adjust every 5 years beginning in 2024 to Prime plus 0.40%. The per annum interest rate will never be less than 5.00% or greater than 6.00%.

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Reinsurance

3 Months Ended

Jun. 30, 2018

Insurance [Abstract]

Reinsurance

Reinsurance

Standard Casualty is primarily a specialty writer of manufactured home physical damage insurance. Certain of Standard Casualty's premiums and benefits are assumed from and ceded to other insurance companies under various reinsurance agreements. The ceded reinsurance agreements provide Standard Casualty with increased capacity to write larger risks and maintain its exposure to loss within its capital resources. Standard Casualty remains obligated for amounts ceded in the event that the reinsurers do not meet their obligations. Substantially all of Standard Casualty's assumed reinsurance is with one entity.

The effects of reinsurance on premiums written and earned are as follows (in thousands):

	Three Months Ended
	June 30, 2018						July 1, 2017
	Written			Earned			Written			Earned
Direct premiums	$	4,541		$	4,211		$	4,366		$	4,150
Assumed premiums—nonaffiliate	6,934			6,234			6,260			6,267
Ceded premiums—nonaffiliate	(2,847		)	(2,847		)	(2,948		)	(2,948		)
Net premiums	$	8,628		$	7,598		$	7,678		$	7,469

Typical insurance policies written or assumed by Standard Casualty have a maximum coverage of $300,000 per claim, of which Standard Casualty cedes $175,000 of the risk of loss per reinsurance. Therefore, Standard Casualty maintains risk of loss limited to $125,000 per claim on typical policies. After this limit, amounts are recoverable by Standard Casualty through reinsurance for catastrophic losses in excess of $1.5 million per occurrence, up to a maximum of $43.5 million in the aggregate.

Purchasing reinsurance contracts protects Standard Casualty from frequency and/or severity of losses incurred on insurance policies issued, such as in the case of a catastrophe that generates a large number of serious claims on multiple policies at the same time. Under these agreements, the Company is required to repurchase and reestablish its reinsurance contracts for the remainder of the year to the extent they are utilized.

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Income Taxes

3 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company's deferred tax assets primarily result from financial statement accruals not currently deductible for tax purposes and differences in the acquired basis of certain assets, and its deferred tax liabilities primarily result from tax amortization of goodwill and other intangible assets.

The Company complies with the provisions of ASC 740, Income Taxes ("ASC 740"), which clarifies the accounting for income taxes by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. ASC 740 also provides guidance on derecognizing, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. The amount of unrecognized tax benefits recorded by the Company and the impact on the effective tax rate if all unrecognized tax benefits were recognized would be insignificant. The Company classifies interest and penalties related to unrecognized tax benefits in tax expense.

Income tax returns are filed in the U.S. federal jurisdiction and in several state jurisdictions. In August 2017, the Company received a notice of examination from the Internal Revenue Service ("IRS") for the Company’s federal income tax return for the fiscal year ended April 2, 2016. In general, the Company is no longer subject to examination by the IRS for years before fiscal year 2015 or state and local income tax examinations by tax authorities for years before fiscal year 2013. The Company believes that its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material change to the Company's financial position. The total amount of unrecognized tax benefit related to any particular tax position is not anticipated to change significantly within the next 12 months. The provision for income taxes generally represents income taxes paid or payable for the current year plus the change in deferred taxes during the year.

On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act makes broad and complex changes to the U.S. tax code that affect the Company and include, but are not limited to: (1) reducing the U.S. federal corporate tax rate, (2) allowing bonus depreciation for full expensing of qualified property and (3) eliminating the manufacturing deduction. The Tax Act reduces the federal corporate tax rate to 21% for our fiscal year ending March 30, 2019.

In addition, on December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 ("SAB 118") that allows us to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. The Company is currently analyzing the impact of the various provisions of the Tax Act. The ultimate impact may differ from the provisional amounts recorded. The Company expects to complete our analysis within the measurement period in accordance with SAB 118.

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Commitments and Contingencies

3 Months Ended

Jun. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Repurchase Contingencies. The Company is contingently liable under terms of repurchase agreements with financial institutions providing inventory financing for independent retailers of its products. These arrangements, which are customary in the industry, provide for the repurchase of products sold to retailers in the event of default by the retailer. The risk of loss under these agreements is spread over numerous retailers. The price the Company is obligated to pay generally declines over the period of the agreement (generally 18 to 36 months, calculated from the date of sale to the retailer) and the risk of loss is further reduced by the resale value of the repurchased homes. The maximum amount for which the Company was contingently liable under such agreements approximated $71.2 million at June 30, 2018, without reduction for the resale value of the homes. The Company applies ASC 460, Guarantees ("ASC 460"), and ASC 450-20, Loss Contingencies ("ASC 450-20"), to account for its liability for repurchase commitments. Under the provisions of ASC 460, the Company records the greater of the estimated value of the non-contingent obligation or a contingent liability for each repurchase arrangement under the provisions of ASC 450-20. The Company recorded an estimated liability of $2.3 million and $2.2 million at June 30, 2018 and March 31, 2018, respectively, related to the commitments pertaining to these agreements.

Letters of Credit. To secure certain reinsurance contracts, Standard Casualty maintains an irrevocable letter of credit of $11.0 million to provide assurance that Standard Casualty will fulfill its reinsurance obligations. This letter of credit is secured by certain of the Company's investments. There were no amounts outstanding at either June 30, 2018 or March 31, 2018.

Construction-Period Mortgages. CountryPlace funds construction-period mortgages through periodic advances during the period of home construction. At the time of initial funding, CountryPlace commits to fully fund the loan contract in accordance with a predetermined schedule. Subsequent advances are contingent upon the performance of contractual obligations by the seller of the home and the borrower. Cumulative advances on construction-period mortgages are carried in the consolidated balance sheet at the amount advanced less a valuation allowance, and are included in consumer loans receivable. The total loan contract amount, less cumulative advances, represents an off-balance sheet contingent commitment of CountryPlace to fund future advances.

Loan contracts with off-balance sheet commitments are summarized below (in thousands):

	June 30, 2018			March 31, 2018
Construction loan contract amount	$	29,961		$	27,093
Cumulative advances	(12,259		)	(11,088		)
Remaining construction contingent commitment	$	17,702		$	16,005

Representations and Warranties of Mortgages Sold. CountryPlace sells loans to GSEs and whole-loan purchasers and finances certain loans with long-term credit facilities secured by the respective loans. In connection with these activities, CountryPlace provides to the GSEs, whole-loan purchasers and lenders, representations and warranties related to the loans sold or financed. These representations and warranties generally relate to the ownership of the loan, the validity of the lien securing the loan, the loan's compliance with the criteria for inclusion in the sale transactions, including compliance with underwriting standards or loan criteria established by the buyer, and CountryPlace's ability to deliver documentation in compliance with applicable laws. Generally, representations and warranties may be enforced at any time over the life of the loan. Upon a breach of a representation, CountryPlace may be required to repurchase the loan or to indemnify a party for incurred losses. Repurchase demands and claims for indemnification payments are reviewed on a loan-by-loan basis to validate if there has been a breach requiring repurchase. CountryPlace manages the risk of repurchase through underwriting and quality assurance practices and by servicing the mortgage loans to investor standards. CountryPlace maintains a reserve for these contingent repurchase and indemnification obligations. This reserve of $1.0 million as of June 30, 2018 and March 31, 2018, included in accrued liabilities, reflects management's estimate of probable loss. CountryPlace considers a variety of assumptions, including borrower performance (both actual and estimated future defaults), historical repurchase demands and loan defect rates to estimate the liability for loan repurchases and indemnifications. During the three months endedJune 30, 2018, no claim request resulted in execution of an indemnification agreement.

Interest Rate Lock Commitments. In originating loans for sale, CountryPlace issues interest rate lock commitments ("IRLCs") to prospective borrowers and third-party originators. These IRLCs represent an agreement to extend credit to a loan applicant, or an agreement to purchase a loan from a third-party originator, whereby the interest rate on the loan is set prior to loan closing or sale. These IRLCs bind CountryPlace to fund the approved loan at the specified rate regardless of whether interest rates or market prices for similar loans have changed between the commitment date and the closing date. As such, outstanding IRLCs are subject to interest rate risk and related loan sale price risk during the period from the date of the IRLC through the earlier of the loan sale date or IRLC expiration date. The loan commitments generally range between 30 and 270 days; however, borrowers are not obligated to close the related loans. As a result, CountryPlace is subject to fallout risk related to IRLCs, which is realized if approved borrowers choose not to close on the loans within the terms of the IRLCs unless the commitment is successfully paired with another loan that may mitigate losses from fallout.

As of June 30, 2018, CountryPlace had outstanding IRLCs with a notional amount of $17.0 million and are recorded at fair value in accordance with ASC 815, Derivatives and Hedging ("ASC 815"). ASC 815 clarifies that the expected net future cash flows related to the associated servicing of a loan should be included in the measurement of all written loan commitments that are accounted for at fair value through earnings. The estimated fair values of IRLCs are recorded in other assets in the consolidated balance sheets. The fair value of IRLCs is based on the value of the underlying mortgage loan adjusted for: (i) estimated cost to complete and originate the loan and (ii) the estimated percentage of IRLCs that will result in closed mortgage loans. The initial and subsequent changes in the value of IRLCs are a component of gain (loss) on mortgage loans held for sale. During the three months ended June 30, 2018 and July 1, 2017, CountryPlace recognized gainsof $20,000 and losses of $25,000 on outstanding IRLCs, respectively.

Forward Sales Commitments. CountryPlace manages the risk profiles of a portion of its outstanding IRLCs and mortgage loans held for sale by entering into forward sales of mortgage-backed securities ("MBS") and whole loan sale commitments. As of June 30, 2018, CountryPlace had $50.1 million in outstanding notional forward sales of MBSs and forward sales commitments. Commitments to forward sales of whole loans are typically in an amount proportionate with the amount of IRLCs expected to close in particular time frames, assuming no change in mortgage interest rates, for the respective loan products intended for whole loan sale.

The estimated fair values of forward sales of MBS and forward sale commitments are based on quoted market values and are recorded within Prepaid expenses and other current assets in the Consolidated Balance Sheets. During the three months ended June 30, 2018 and July 1, 2017, CountryPlace recognized losses of $175,000 and gains of $155,000, respectively, on forward sales and whole loan sale commitments.

Legal Matters. The Company is party to certain legal proceedings that arise in the ordinary course and are incidental to its business. Certain of the claims pending against the Company in these proceedings allege, among other things, breach of contract and warranty, product liability and personal injury. Although litigation is inherently uncertain, based on past experience and the information currently available, management does not believe that the currently pending and threatened litigation or claims will have a material adverse effect on the Company's consolidated financial position, liquidity or results of operations. However, future events or circumstances currently unknown to management will determine whether the resolution of pending or threatened litigation or claims will ultimately have a material effect on the Company's consolidated financial position, liquidity or results of operations in any future reporting periods.

Commitments and Contingencies, Policy [Policy Text Block]

Repurchase Contingencies. The Company is contingently liable under terms of repurchase agreements with financial institutions providing inventory financing for independent retailers of its products. These arrangements, which are customary in the industry, provide for the repurchase of products sold to retailers in the event of default by the retailer. The risk of loss under these agreements is spread over numerous retailers. The price the Company is obligated to pay generally declines over the period of the agreement (generally 18 to 36 months, calculated from the date of sale to the retailer) and the risk of loss is further reduced by the resale value of the repurchased homes. The maximum amount for which the Company was contingently liable under such agreements approximated $71.2 million at June 30, 2018, without reduction for the resale value of the homes. The Company applies ASC 460, Guarantees ("ASC 460"), and ASC 450-20, Loss Contingencies ("ASC 450-20"), to account for its liability for repurchase commitments. Under the provisions of ASC 460, the Company records the greater of the estimated value of the non-contingent obligation or a contingent liability for each repurchase arrangement under the provisions of ASC 450-20. The Company recorded an estimated liability of $2.3 million and $2.2 million at June 30, 2018 and March 31, 2018, respectively, related to the commitments pertaining to these agreements.

Representations and Warranties of Mortgages Sold [Policy Text Block]

Representations and Warranties of Mortgages Sold. CountryPlace sells loans to GSEs and whole-loan purchasers and finances certain loans with long-term credit facilities secured by the respective loans. In connection with these activities, CountryPlace provides to the GSEs, whole-loan purchasers and lenders, representations and warranties related to the loans sold or financed. These representations and warranties generally relate to the ownership of the loan, the validity of the lien securing the loan, the loan's compliance with the criteria for inclusion in the sale transactions, including compliance with underwriting standards or loan criteria established by the buyer, and CountryPlace's ability to deliver documentation in compliance with applicable laws. Generally, representations and warranties may be enforced at any time over the life of the loan. Upon a breach of a representation, CountryPlace may be required to repurchase the loan or to indemnify a party for incurred losses. Repurchase demands and claims for indemnification payments are reviewed on a loan-by-loan basis to validate if there has been a breach requiring repurchase. CountryPlace manages the risk of repurchase through underwriting and quality assurance practices and by servicing the mortgage loans to investor standards. CountryPlace maintains a reserve for these contingent repurchase and indemnification obligations. This reserve of $1.0 million as of June 30, 2018 and March 31, 2018, included in accrued liabilities, reflects management's estimate of probable loss. CountryPlace considers a variety of assumptions, including borrower performance (both actual and estimated future defaults), historical repurchase demands and loan defect rates to estimate the liability for loan repurchases and indemnifications. During the three months endedJune 30, 2018, no

Derivatives, Reporting of Derivative Activity [Policy Text Block]

Interest Rate Lock Commitments. In originating loans for sale, CountryPlace issues interest rate lock commitments ("IRLCs") to prospective borrowers and third-party originators. These IRLCs represent an agreement to extend credit to a loan applicant, or an agreement to purchase a loan from a third-party originator, whereby the interest rate on the loan is set prior to loan closing or sale. These IRLCs bind CountryPlace to fund the approved loan at the specified rate regardless of whether interest rates or market prices for similar loans have changed between the commitment date and the closing date. As such, outstanding IRLCs are subject to interest rate risk and related loan sale price risk during the period from the date of the IRLC through the earlier of the loan sale date or IRLC expiration date. The loan commitments generally range between 30 and 270 days; however, borrowers are not obligated to close the related loans. As a result, CountryPlace is subject to fallout risk related to IRLCs, which is realized if approved borrowers choose not to close on the loans within the terms of the IRLCs unless the commitment is successfully paired with another loan that may mitigate losses from fallout.

As of June 30, 2018, CountryPlace had outstanding IRLCs with a notional amount of $17.0 million and are recorded at fair value in accordance with ASC 815, Derivatives and Hedging ("ASC 815"). ASC 815 clarifies that the expected net future cash flows related to the associated servicing of a loan should be included in the measurement of all written loan commitments that are accounted for at fair value through earnings. The estimated fair values of IRLCs are recorded in other assets in the consolidated balance sheets. The fair value of IRLCs is based on the value of the underlying mortgage loan adjusted for: (i) estimated cost to complete and originate the loan and (ii) the estimated percentage of IRLCs that will result in closed mortgage loans. The initial and subsequent changes in the value of IRLCs are a component of gain (loss) on mortgage loans held for sale. During the three months ended June 30, 2018 and July 1, 2017, CountryPlace recognized gainsof $20,000 and losses of $25,000 on outstanding IRLCs, respectively.

Forward Sales Commitments. CountryPlace manages the risk profiles of a portion of its outstanding IRLCs and mortgage loans held for sale by entering into forward sales of mortgage-backed securities ("MBS") and whole loan sale commitments. As of June 30, 2018, CountryPlace had $50.1 million in outstanding notional forward sales of MBSs and forward sales commitments. Commitments to forward sales of whole loans are typically in an amount proportionate with the amount of IRLCs expected to close in particular time frames, assuming no change in mortgage interest rates, for the respective loan products intended for whole loan sale.

The estimated fair values of forward sales of MBS and forward sale commitments are based on quoted market values and are recorded within Prepaid expenses and other current assets in the Consolidated Balance Sheets. During the three months ended June 30, 2018 and July 1, 2017, CountryPlace recognized losses of $175,000 and gains of $155,000, respectively, on forward sales and whole loan sale commitments.

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Stockholders' Equity

3 Months Ended

Jun. 30, 2018

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Stockholders' Equity

The following table represents changes in stockholders' equity for the three months ended June 30, 2018 (dollars in thousands):

				Additional paid-in capital			Retained earnings		Accumulated other comprehensive income (loss)			Total
	Common Stock
	Shares	Amount
Balance, March 31, 2018	9,044,858	$	90	$	246,197		$	209,381	$	1,438		$	457,106
Cumulative effect of implementing ASU 2016-01, net	—	—		—			1,621		(1,621		)	—
Cumulative effect of implementing ASC 606, net	—	—		—			454		—			454
Stock option exercises	16,448	1		(2,169		)	—		—			(2,168		)
Stock-based compensation	—	—		599			—		—			599
Net income	—	—		—			19,691		—			19,691
Other comprehensive income, net	—	—		—			—		5			5
Balance, June 30, 2018	9,061,306	$	91	$	244,627		$	231,147	$	(178	)	$	475,687

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Stock-Based Compensation

3 Months Ended

Jun. 30, 2018

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

Stock-Based Compensation

Stock-Based Compensation

The Company maintains stock incentive plans whereby stock option grants or awards of restricted stock may be made to certain officers, directors and key employees. As of June 30, 2018, the plans, which are shareholder approved, permit the award of up to 1,650,000 shares of the Company's common stock, of which 356,272 shares were still available for grant. When options are exercised, new shares of the Company's common stock are issued. Stock options may not be granted below 100% of the fair market value of the Company's common stock at the date of grant and generally expire seven years from the date of grant. Stock options and awards of restricted stock typically vest over a one to five year period as determined by the plan administrator (the Compensation Committee of the Board of Directors, which consists of independent directors). The stock incentive plans provide for accelerated vesting of stock options upon a change in control (as defined in the plans).

Stock-based compensation cost charged against income for the three months ended June 30, 2018 and July 1, 2017 was $599,000 and $513,000, respectively.

As of June 30, 2018, total unrecognized compensation cost related to stock options was approximately $3.0 million and the related weighted-average period over which the expense is expected to be recognized is approximately 2.87 years.

The following table summarizes the option activity within the Company's stock-based compensation plans for the three months ended June 30, 2018:

	Number of Options
Outstanding at March 31, 2018	418,205
Granted	4,000
Exercised	(33,683	)
Canceled or expired	—
Outstanding at June 30, 2018	388,522
Exercisable at June 30, 2018	171,038

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

The Company maintains stock incentive plans whereby stock option grants or awards of restricted stock may be made to certain officers, directors and key employees. As of June 30, 2018, the plans, which are shareholder approved, permit the award of up to 1,650,000 shares of the Company's common stock, of which 356,272 shares were still available for grant. When options are exercised, new shares of the Company's common stock are issued. Stock options may not be granted below 100% of the fair market value of the Company's common stock at the date of grant and generally expire seven years from the date of grant. Stock options and awards of restricted stock typically vest over a one to five year period as determined by the plan administrator (the Compensation Committee of the Board of Directors, which consists of independent directors). The stock incentive plans provide for accelerated vesting of stock options upon a change in control (as defined in the plans).

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Earnings Per Share

3 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic earnings per common share is computed based on the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per common share is computed based on the combination of dilutive common share equivalents, comprised of shares issuable under the Company's stock-based compensation plans and the weighted-average number of common shares outstanding during the reporting period. Dilutive common share equivalents include the dilutive effect of in-the-money options to purchase shares, which is calculated based on the average share price for each period using the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share (dollars in thousands, except per share amounts):

	Three Months Ended
	June 30, 2018		July 1, 2017
Net income	$	19,691	$	11,753
Weighted average shares outstanding:
Basic	9,048,579		9,006,999
Common stock equivalents—treasury stock method	218,469		155,492
Diluted	9,267,048		9,162,491
Net income per share:
Basic	$	2.18	$	1.30
Diluted	$	2.12	$	1.28

Anti-dilutive common stock equivalents excluded from the computation of diluted earnings per share for the three months ended June 30, 2018 and July 1, 2017 were 1,268 and 10,973, respectively.

Earnings Per Share, Policy [Policy Text Block]

Basic earnings per common share is computed based on the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per common share is computed based on the combination of dilutive common share equivalents, comprised of shares issuable under the Company's stock-based compensation plans and the weighted-average number of common shares outstanding during the reporting period. Dilutive common share equivalents include the dilutive effect of in-the-money options to purchase shares, which is calculated based on the average share price for each period using the treasury stock method.

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Fair Value Measurements

3 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The book value and estimated fair value of the Company's financial instruments are as follows (in thousands):

	June 30, 2018						March 31, 2018
	Book Value			Estimated Fair Value			Book Value			Estimated Fair Value
Available-for-sale debt securities (1)	$	15,523		$	15,523		$	16,181		$	16,181
Marketable equity securities (1)	12,736			12,736			10,405			10,405
Non-marketable equity investments (2)	18,888			18,888			18,853			18,853
Consumer loans receivable (3)	98,157			115,032			94,951			113,277
Interest rate lock commitment derivatives (4)	(8		)	(8		)	(12		)	(12		)
Forward loan sale commitment derivatives (4)	149			149			26			26
Commercial loans receivable (5)	30,633			31,301			16,601			16,972
Securitized financings and other (6)	(58,121		)	(63,210		)	(59,812		)	(64,509		)
Mortgage servicing rights (7)	1,443			1,443			1,410			1,410

(1) For Level 1 classified securities, the fair value is based on quoted market prices. The fair value of Level 2 securities is based on other inputs, as further described below.

(2) The fair value approximates book value based on the non-marketable nature of the investments.

(3) Includes consumer loans receivable held for investment, held for sale and construction advances. The fair value of the loans held for investment is based on the discounted value of the remaining principal and interest cash flows. The fair value of the loans held for sale are estimated based on recent GSE mortgage-backed bond prices. The fair value of the construction advances approximates book value and the sales price of these loans.

(4) The fair values are based on changes in GSE mortgage-backed bond prices and, additionally for IRLCs, pull through rates.

(5) The fair value is estimated using market interest rates of comparable loans.

(6) The fair value is estimated using recent public transactions of similar asset-backed securities.

(7) The fair value of the mortgage servicing rights is based on the present value of expected net cash flows related to servicing these loans.

In accordance with ASC 820, Fair Value Measurements and Disclosures ("ASC 820"), fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1 –	Quoted prices in active markets for identical assets or liabilities.
Level 2 –	Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 –	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

When the Company uses observable market prices for identical securities that are traded in less active markets, it classifies such securities as Level 2. When observable market prices for identical securities are not available, the Company prices its marketable debt instruments using non-binding market consensus prices that are corroborated with observable market data; quoted market prices for similar instruments; or pricing models, such as a discounted cash flow model, with all significant inputs derived from or corroborated with observable market data. Non-binding market consensus prices are based on the proprietary valuation models of pricing providers or brokers. These valuation models incorporate a number of inputs, including non-binding and binding broker quotes; observable market prices for identical or similar securities; and the internal assumptions of pricing providers or brokers that use observable market inputs and, to a lesser degree, unobservable market inputs.

Financial instruments measured at fair value on a recurring basis are summarized below (in thousands):

	June 30, 2018
	Total			Level 1		Level 2		Level 3
Securities issued by the U.S Treasury and Government (1)	$	292		$	—	$	292	$	—
Mortgage-backed securities (1)	7,152			—		7,152		—
Securities issued by states and political subdivisions (1)	6,029			—		6,029		—
Corporate debt securities (1)	2,050			—		2,050		—
Marketable equity securities (2)	12,736			12,736		—		—
Interest rate lock commitment derivatives (3)	(8		)	—		—		(8		)
Forward loan sale commitment derivatives (3)	149			—		—		149
Mortgage servicing rights (4)	1,443			—		—		1,443

(1) Unrealized gains or losses on investments are recorded in accumulated other comprehensive income (loss) at each measurement date.

(2) Unrealized gains or losses on investments are recorded in earnings at each measurement date.

(3) Gains or losses on derivatives are recognized in current period earnings through cost of sales.

(4) Changes in the fair value of mortgage servicing rights are recognized in the current period earnings through net revenue.

No transfers between Level 1, Level 2 or Level 3 occurred during the three months ended June 30, 2018. The Company's policy regarding the recording of transfers between levels is to record any such transfers at the end of the reporting period.

Financial instruments for which fair value is disclosed but not required to be recognized in the balance sheet on a recurring basis are summarized below (in thousands):

	June 30, 2018
	Total			Level 1		Level 2			Level 3
Loans held for investment	$	87,726		$	—	$	—		$	87,726
Loans held for sale	15,047			—		—			15,047
Loans held—construction advances	12,259			—		—			12,259
Commercial loans receivable	31,301			—		—			31,301
Securitized financings and other	(63,210		)	—		(63,210		)	—
Non-marketable equity investments	18,888			—		—			18,888

No recent sales have been executed in an orderly market of manufactured home loan portfolios with comparable product features, credit characteristics or performance. Therefore, loans held for investment are measured using Level 3 inputs that are calculated using estimated discounted future cash flows from the evaluation of loan credit quality and performance history to determine expected prepayments and defaults on the portfolio, discounted with rates considered to reflect current market conditions. Loans held for sale are measured at the lower of cost or fair value using inputs that consist quoted market prices for mortgage-backed securities or investor purchase commitments for similar types of loan commitments on hand from investors. These loans are held for relatively short periods, typically no more than 45 days. As a result, changes in loan-specific credit risk are not a significant component of the change in fair value and changes are largely driven by changes in interest rates or investor yield requirements. The cost of loans held for sale is lower than the fair value as of June 30, 2018. As noted above, activity in the manufactured housing asset-backed securities market is infrequent with no reliable market price information. As such, to determine the fair value of securitized financings, management evaluates the credit quality and performance history of the underlying loan assets to estimate the expected prepayment of the debt and credit spreads, based on market activity for similar rated bonds from other asset classes with similar durations.

The Company records impairment losses on long-lived assets held for sale when the fair value of such long-lived assets is below their carrying values. The Company records impairment charges on long-lived assets used in operations when events and circumstances indicate that long-lived assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts. No impairment charges were recorded during the three months ended June 30, 2018.

Mortgage Servicing. Mortgage Servicing Rights ("MSRs") are the rights to receive a portion of the interest coupon and fees collected from the mortgagors for performing specified mortgage servicing activities, which consist of collecting loan payments, remitting principal and interest payments to investors, managing escrow accounts, performing loss mitigation activities on behalf of investors and otherwise administering the loan servicing portfolio. MSRs are initially recorded at fair value. Changes in fair value subsequent to the initial capitalization are recorded in the Company's results of operations. The Company recognizes MSRs on all loans sold to investors that meet the requirements for sale accounting and for which servicing rights are retained.

The Company applies fair value accounting to MSRs, with all changes in fair value recorded to net revenue in accordance with ASC 860-50, Servicing Assets and Liabilities. The fair value of MSRs is based on the present value of the expected future cash flows related to servicing these loans. The revenue components of the cash flows are servicing fees, interest earned on custodial accounts and other ancillary income. The expense components include operating costs related to servicing the loans (including delinquency and foreclosure costs) and interest expenses on servicer advances that the Company believes are consistent with the assumptions major market participants use in valuing MSRs. The expected cash flows are primarily impacted by prepayment estimates, delinquencies and market discounts. Generally, the value of MSRs is expected to increase when interest rates rise and decrease when interest rates decline, due to the effect those changes in interest rates have on prepayment estimates. Other factors noted above as well as the overall market demand for MSRs may also affect the valuation.

	June 30, 2018			March 31, 2018
Number of loans serviced with MSRs	4,399			4,346
Weighted average servicing fee (basis points)	32.05			32.03
Capitalized servicing multiple	85.24		%	84.76		%
Capitalized servicing rate (basis points)	27.32			27.15
Serviced portfolio with MSRs (in thousands)	$	528,206		$	519,167
Mortgage servicing rights (in thousands)	$	1,443		$	1,410

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

The Company records impairment losses on long-lived assets held for sale when the fair value of such long-lived assets is below their carrying values. The Company records impairment charges on long-lived assets used in operations when events and circumstances indicate that long-lived assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts. No impairment charges were recorded during the three months ended June 30, 2018.

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Business Segment Information

3 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

The Company operates principally in two segments: (1) factory-built housing, which includes wholesale and retail systems-built housing operations and (2) financial services, which includes manufactured housing consumer finance and insurance. The following table details net revenue and income before income taxes by segment (in thousands):

	Three Months Ended
	June 30, 2018		July 1, 2017
Net revenue:
Factory-built housing	$	232,762	$	192,882
Financial services	13,641		13,934
	$	246,403	$	206,816
Income before income taxes:
Factory-built housing	$	21,608	$	13,170
Financial services	2,528		2,481
	$	24,136	$	15,651

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Basis of Presentation (Policies)

3 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Principles of Consolidation

The accompanying unaudited Consolidated Financial Statements of Cavco Industries, Inc., and its subsidiaries (collectively, the "Company" or "Cavco"), have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") for Quarterly Reports on Form 10-Q and Article 10 of SEC Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to such rules and regulations.

In the opinion of management, these statements include all of the normal recurring adjustments necessary to fairly state the Company's Consolidated Financial Statements. Certain prior period amounts have been reclassified to conform to current period classification. The Company has evaluated subsequent events after the balance sheet date through the date of the filing of this report with the SEC; there were no disclosable subsequent events. These Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the Notes to the Consolidated Financial Statements ("Notes") included in the Company's 2018 Annual Report on Form 10-K for the year ended March 31, 2018, filed with the SEC on May 30, 2018 ("Form 10-K").

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and the accompanying Notes. Actual results could differ from those estimates. The Consolidated Statements of Comprehensive Income and Consolidated Statements of Cash Flows for the interim periods are not necessarily indicative of the results or cash flows for the full year. The Company operates on a 52-53 week fiscal year ending on the Saturday nearest to March 31 of each year. Each fiscal quarter consists of 13 weeks, with an occasional fourth quarter extending to 14 weeks, if necessary, for the fiscal year to end on the Saturday nearest to March 31. The Company's current fiscal year will end on March 30, 2019.

The Company operates principally in two segments: (1) factory-built housing, which includes wholesale and retail systems-built housing operations, and (2) financial services, which includes manufactured housing consumer finance and insurance. The Company designs and builds a wide variety of affordable manufactured homes, modular homes and park model RVs in 20 factories located throughout the United States, which are sold to a network of independent retailers, through the Company's 39 Company-owned retail stores and to community owners and developers. Our financial services group is comprised of a mortgage subsidiary, CountryPlace Acceptance Corp. ("CountryPlace"), and an insurance subsidiary, Standard Casualty Co. ("Standard Casualty"). CountryPlace is an approved Federal National Mortgage Association ("FNMA" or "Fannie Mae") and Federal Home Loan Mortgage Corporation ("FHLMC" or "Freddie Mac") seller/servicer, and a Government National Mortgage Association ("GNMA" or "Ginnie Mae") mortgage-backed securities issuer which offers conforming mortgages, non-conforming mortgages and home-only loans to purchasers of factory-built homes. Standard Casualty provides property and casualty insurance to owners of manufactured homes.

New Accounting Pronouncements, Policy [Policy Text Block]

Adoption of New Accounting Standards.

In May 2014, the Federal Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASC 606"), which requires entities to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We adopted ASC 606 using the modified retrospective method for contracts that were not completed as of April 1, 2018, and recorded a reduction of $600,000 to accrued liabilities and a corresponding increase to retained earnings related to gross margin on home sales that were previously deferred for the cumulative effect of the adoption. Prior periods were not restated. There were no significant changes to processes or internal controls as a result of the adoption of ASC 606. See Note 2 for additional information.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"). The Company adopted ASU 2016-01 on April 1, 2018 using the modified retrospective transition method. Upon adoption, we reclassified $1.6 million in gains, net of tax, related to available-for-sale equity investment securities from accumulated other comprehensive income to retained earnings as a cumulative-effect adjustment. Under the new guidance, these securities will continue to be measured at fair value; however, the changes in unrealized net holding gains and losses will be reported in earnings. Comparative information continues to be reported under the accounting standards in effect for the period. The effect of the change for the three months endedJune 30, 2018 was an increase to income before income taxes of approximately $1.6 million, which is either included in Net revenue or Other income, net on the Consolidated Statements of Comprehensive Income, depending on the nature of the investment.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) ("ASU 2016-18"), which requires restricted cash to be included with cash and cash equivalents when reconciling beginning and ending cash on the statement of cash flows. We adopted ASU 2016-18 on April 1, 2018 using the retrospective transition method. The comparative information in our Consolidated Statements of Cash Flows has been adjusted accordingly. The impact from adoption of this guidance was not material to our Consolidated Statements of Cash Flows. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the accompanying Consolidated Balance Sheets to the combined amounts shown on the Consolidated Statements of Cash Flows (in thousands):

	June 30, 2018		July 1, 2017
Cash and cash equivalents	$	177,487	$	129,509
Restricted cash, current	12,918		13,323
Restricted cash	1,066		725
	$	191,471	$	143,557

Description of New Accounting Pronouncements Not yet Adopted [Text Block]

Accounting Standards Issued But Not Yet Adopted.

In February 2016, the FASB issued ASU 2016-02, Leases(Topic 842) ("ASU 2016-02"). ASU 2016-02 will be effective beginning with the first quarter of the Company's fiscal year 2020, with early adoption permitted. The amendments require balance sheet recognition of leased assets and lease liabilities for most leases, and recognition of expenses in the income statement in a manner similar to current accounting treatment. In addition, disclosures of key information about leasing arrangements are required. Upon adoption, leases will be recognized and measured at the beginning of the earliest period presented using a modified retrospective approach. The Company does not plan to early adopt the guidance and is currently evaluating the effect ASU 2016-02 will have on the Company's Consolidated Financial Statements and disclosures.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). ASU 2016-13 changes the impairment model for most financial assets and certain other instruments to base measurement on expected losses through a forward-looking model rather than a model based on incurred losses. The guidance also requires increased disclosures. ASU 2016-13 will be effective beginning with the first quarter of the Company's fiscal year 2021 and is to be applied using a modified retrospective transition method with early adoption permitted. The Company does not plan to early adopt the guidance and is currently evaluating the effect ASU 2016-13 will have on the Company's Consolidated Financial Statements and disclosures.

In March 2017, the FASB issued ASU 2017-08, Receivables — Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities ("ASU 2017-08"), which requires the premium on callable debt securities to be amortized to the earliest call date as opposed to the contractual life of the security. ASU 2017-08 will be effective beginning with the first quarter of the Company's fiscal year 2020. The Company is currently evaluating the effect ASU 2017-08 will have on the Company's Consolidated Financial Statements and disclosures.

From time to time, new accounting pronouncements are issued by the FASB and other regulatory bodies that are adopted by the Company as of the specified effective dates. Unless otherwise discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company's Consolidated Financial Statements upon adoption.

Asset Impairment

The Company records impairment losses on long-lived assets held for sale when the fair value of such long-lived assets is below their carrying values. The Company records impairment charges on long-lived assets used in operations when events and circumstances indicate that long-lived assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts. No impairment charges were recorded during the three months ended June 30, 2018.

Net Income Per Share

Basic earnings per common share is computed based on the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per common share is computed based on the combination of dilutive common share equivalents, comprised of shares issuable under the Company's stock-based compensation plans and the weighted-average number of common shares outstanding during the reporting period. Dilutive common share equivalents include the dilutive effect of in-the-money options to purchase shares, which is calculated based on the average share price for each period using the treasury stock method.

Debt, Policy [Policy Text Block]

Acquired securitized financings were recorded at fair value at the time of acquisition, which resulted in a discount, and subsequently are accounted for in a manner similar to ASC 310-30 to accrete the discount.

Representations and Warranties of Mortgages Sold [Policy Text Block]

Representations and Warranties of Mortgages Sold. CountryPlace sells loans to GSEs and whole-loan purchasers and finances certain loans with long-term credit facilities secured by the respective loans. In connection with these activities, CountryPlace provides to the GSEs, whole-loan purchasers and lenders, representations and warranties related to the loans sold or financed. These representations and warranties generally relate to the ownership of the loan, the validity of the lien securing the loan, the loan's compliance with the criteria for inclusion in the sale transactions, including compliance with underwriting standards or loan criteria established by the buyer, and CountryPlace's ability to deliver documentation in compliance with applicable laws. Generally, representations and warranties may be enforced at any time over the life of the loan. Upon a breach of a representation, CountryPlace may be required to repurchase the loan or to indemnify a party for incurred losses. Repurchase demands and claims for indemnification payments are reviewed on a loan-by-loan basis to validate if there has been a breach requiring repurchase. CountryPlace manages the risk of repurchase through underwriting and quality assurance practices and by servicing the mortgage loans to investor standards. CountryPlace maintains a reserve for these contingent repurchase and indemnification obligations. This reserve of $1.0 million as of June 30, 2018 and March 31, 2018, included in accrued liabilities, reflects management's estimate of probable loss. CountryPlace considers a variety of assumptions, including borrower performance (both actual and estimated future defaults), historical repurchase demands and loan defect rates to estimate the liability for loan repurchases and indemnifications. During the three months endedJune 30, 2018, no

Derivatives

Interest Rate Lock Commitments. In originating loans for sale, CountryPlace issues interest rate lock commitments ("IRLCs") to prospective borrowers and third-party originators. These IRLCs represent an agreement to extend credit to a loan applicant, or an agreement to purchase a loan from a third-party originator, whereby the interest rate on the loan is set prior to loan closing or sale. These IRLCs bind CountryPlace to fund the approved loan at the specified rate regardless of whether interest rates or market prices for similar loans have changed between the commitment date and the closing date. As such, outstanding IRLCs are subject to interest rate risk and related loan sale price risk during the period from the date of the IRLC through the earlier of the loan sale date or IRLC expiration date. The loan commitments generally range between 30 and 270 days; however, borrowers are not obligated to close the related loans. As a result, CountryPlace is subject to fallout risk related to IRLCs, which is realized if approved borrowers choose not to close on the loans within the terms of the IRLCs unless the commitment is successfully paired with another loan that may mitigate losses from fallout.

As of June 30, 2018, CountryPlace had outstanding IRLCs with a notional amount of $17.0 million and are recorded at fair value in accordance with ASC 815, Derivatives and Hedging ("ASC 815"). ASC 815 clarifies that the expected net future cash flows related to the associated servicing of a loan should be included in the measurement of all written loan commitments that are accounted for at fair value through earnings. The estimated fair values of IRLCs are recorded in other assets in the consolidated balance sheets. The fair value of IRLCs is based on the value of the underlying mortgage loan adjusted for: (i) estimated cost to complete and originate the loan and (ii) the estimated percentage of IRLCs that will result in closed mortgage loans. The initial and subsequent changes in the value of IRLCs are a component of gain (loss) on mortgage loans held for sale. During the three months ended June 30, 2018 and July 1, 2017, CountryPlace recognized gainsof $20,000 and losses of $25,000 on outstanding IRLCs, respectively.

Forward Sales Commitments. CountryPlace manages the risk profiles of a portion of its outstanding IRLCs and mortgage loans held for sale by entering into forward sales of mortgage-backed securities ("MBS") and whole loan sale commitments. As of June 30, 2018, CountryPlace had $50.1 million in outstanding notional forward sales of MBSs and forward sales commitments. Commitments to forward sales of whole loans are typically in an amount proportionate with the amount of IRLCs expected to close in particular time frames, assuming no change in mortgage interest rates, for the respective loan products intended for whole loan sale.

The estimated fair values of forward sales of MBS and forward sale commitments are based on quoted market values and are recorded within Prepaid expenses and other current assets in the Consolidated Balance Sheets. During the three months ended June 30, 2018 and July 1, 2017, CountryPlace recognized losses of $175,000 and gains of $155,000, respectively, on forward sales and whole loan sale commitments.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

The Company maintains stock incentive plans whereby stock option grants or awards of restricted stock may be made to certain officers, directors and key employees. As of June 30, 2018, the plans, which are shareholder approved, permit the award of up to 1,650,000 shares of the Company's common stock, of which 356,272 shares were still available for grant. When options are exercised, new shares of the Company's common stock are issued. Stock options may not be granted below 100% of the fair market value of the Company's common stock at the date of grant and generally expire seven years from the date of grant. Stock options and awards of restricted stock typically vest over a one to five year period as determined by the plan administrator (the Compensation Committee of the Board of Directors, which consists of independent directors). The stock incentive plans provide for accelerated vesting of stock options upon a change in control (as defined in the plans).

Fair Value Measurement

In accordance with ASC 820, Fair Value Measurements and Disclosures ("ASC 820"), fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1 –	Quoted prices in active markets for identical assets or liabilities.
Level 2 –	Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 –	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

When the Company uses observable market prices for identical securities that are traded in less active markets, it classifies such securities as Level 2. When observable market prices for identical securities are not available, the Company prices its marketable debt instruments using non-binding market consensus prices that are corroborated with observable market data; quoted market prices for similar instruments; or pricing models, such as a discounted cash flow model, with all significant inputs derived from or corroborated with observable market data. Non-binding market consensus prices are based on the proprietary valuation models of pricing providers or brokers. These valuation models incorporate a number of inputs, including non-binding and binding broker quotes; observable market prices for identical or similar securities; and the internal assumptions of pricing providers or brokers that use observable market inputs and, to a lesser degree, unobservable market inputs.

Fair Value Transfer

The Company's policy regarding the recording of transfers between levels is to record any such transfers at the end of the reporting period.

Transfers and Servicing of Financial Assets, Transfers of Financial Assets, Servicing of Financial Assets

Mortgage Servicing. Mortgage Servicing Rights ("MSRs") are the rights to receive a portion of the interest coupon and fees collected from the mortgagors for performing specified mortgage servicing activities, which consist of collecting loan payments, remitting principal and interest payments to investors, managing escrow accounts, performing loss mitigation activities on behalf of investors and otherwise administering the loan servicing portfolio. MSRs are initially recorded at fair value. Changes in fair value subsequent to the initial capitalization are recorded in the Company's results of operations. The Company recognizes MSRs on all loans sold to investors that meet the requirements for sale accounting and for which servicing rights are retained.

The Company applies fair value accounting to MSRs, with all changes in fair value recorded to net revenue in accordance with ASC 860-50, Servicing Assets and Liabilities. The fair value of MSRs is based on the present value of the expected future cash flows related to servicing these loans. The revenue components of the cash flows are servicing fees, interest earned on custodial accounts and other ancillary income. The expense components include operating costs related to servicing the loans (including delinquency and foreclosure costs) and interest expenses on servicer advances that the Company believes are consistent with the assumptions major market participants use in valuing MSRs. The expected cash flows are primarily impacted by prepayment estimates, delinquencies and market discounts. Generally, the value of MSRs is expected to increase when interest rates rise and decrease when interest rates decline, due to the effect those changes in interest rates have on prepayment estimates.

Significant Accounting Policies [Text Block]

For a description of other significant accounting policies used by the Company in the preparation of its Consolidated Financial Statements, please refer to Note 1 of the Notes to Consolidated Financial Statements on Form 10-K.

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Revenue from Contracts with Customers (Policies)

3 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

Revenue Recognition, Policy [Policy Text Block]

Factory-Built Housing Revenue Recognition - Wholesale. Revenue from homes sold to independent retailers is generally recognized when the home is shipped, at which time title passes to the independent retailer and collectability is reasonably assured. Homes sold to independent retailers are generally either paid upon shipment or floor plan financed by the independent retailer through standard industry financing arrangements, which can include repurchase agreements. Manufacturing sales financed under repurchase agreements are reduced by a provision for estimated repurchase obligations (see Note 16).

Prior to the adoption of ASC 606, revenue from homes sold under commercial loan programs involving funds provided by the Company were either deferred until such time that payment for the related commercial loan was received by the Company or recognized when the home was shipped and title transferred, depending on the nature of the program and borrower. Upon adoption of ASC 606, we generally recognize home sales revenue upon shipment and transfer of title, as it is probable that substantially all of the consideration in exchange for the goods or services transferred to the customer will be collected. One consideration under the guidance requires the evaluation of the financing component of the related loan program. If it is determined that the interest rate charged under the loan program is less than the market rate, the Company will reduce the transaction price by an amount for deferred interest. In these cases, interest income will be accrued and recognized over the life of the loan using the effective interest method. A significant amount of the Company's loan programs are offered at market rates.

Factory-Built Housing Revenue Recognition - Retail. Sales by Company-owned retail locations are generally recognized when the customer has entered into a legally binding sales contract, the home is delivered and permanently located at the customer's site, accepted by the customer, title has transferred and funding is assured.

Site Improvements on Retail Sales. Under previous guidance, the Company recorded the sales of subcontracted ancillary services, such as preparation of the home site or other exterior enhancements, net of associated costs. Such services are provided as a convenience to the customer. As the Company is involved in the selection of subcontractors, under ASC 606, we have concluded that it is appropriate to recognize the sale of these ancillary services on a gross basis. The revenue associated with these programs for the three months endedJune 30, 2018 and July 1, 2017 were $6.5 million and $5.1 million, respectively.

Additional Items. Expected consideration, and therefore revenue, reflects reductions for returns, allowances, and other incentives, some of which may be contingent on future events. Additionally, we have a volume rebate program under which certain sales to retailers, builders and developers can qualify for cash rebates generally based on the level of sales attained during a twelve-month period. Volume rebates are accrued at the time of sale and are recorded as a reduction of revenue.

In customer contracts for retail sales of manufactured homes, consideration includes certain state and local excise taxes billed to customers when those taxes are levied directly upon us by the taxing authorities. Expected consideration excludes sales and other taxes collected on behalf of taxing authorities. Revenue includes consideration for shipping and other fulfillment activities performed prior to the customer obtaining control of the goods. We also elect to treat consideration for shipping performed as a fulfillment activity.

Practical Expedients and Exemptions. We generally expense sales commissions when incurred because the amortization period would be one year or less. These costs are recorded within selling, general and administrative expenses. In addition, we do not disclose the value of unsatisfied performance obligations for contracts with an expected length of one year or less.

Financial Services Revenue Recognition. Financial services revenue is generally not within the scope of ASC 606, with the exception of insurance agency commissions received from third-party insurance companies. The Company recognizes such revenue upon execution of the insurance policy, where the Company has no future or ongoing obligation.

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Revenue from Contracts with Customers (Tables)

3 Months Ended

Jun. 30, 2018

Disaggregation of Revenue [Line Items]

Disaggregation of Revenue [Table Text Block]

Disaggregation of Revenue. The following table summarizes customer contract revenues disaggregated by reportable segment and the source of the revenue for the three months endedJune 30, 2018 (in thousands). All revenue from customers is recognized at a point in time, either when the customer takes delivery or when a third-party insurance contract is executed, as more fully discussed above. Other items included in our consolidated revenues are primarily related to financial services, including manufactured housing consumer finance and insurance, which are not within the scope of ASC 606. See Form 10-K for revenue recognition policies related to these items.

	Three Months Ended June 30, 2018
Factory-built housing
U.S. Housing and Urban Development code homes	$	186,316
Modular homes	22,447
Park model RVs	11,727
Other (1)	12,272
Net revenue from factory-built housing	232,762
Financial services
Insurance agency commissions received from third-party insurance companies	632
Other	13,009
Net revenue from financial services	13,641
Total net revenue	$	246,403

(1) Other factory-built housing revenue from ancillary products and services including used homes, freight and other services.

Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]

Impacts on Consolidated Financial Statements. The impact to our consolidated financial statements as a result of ASC 606 implementation are as follows (in thousands):

	June 30, 2018
Consolidated Balance Sheet	As Reported		Adjustments			Balance without ASC 606 Adoption
Accrued liabilities	$	126,774	$	1,644		$	128,418
Total current liabilities	175,626		1,644			177,270
Deferred income taxes	8,364		(441		)	7,923
Retained earnings	231,147		(1,203		)	229,944
Total stockholders’ equity	475,687		(1,203		)	474,484

	Three Months Ended June 30, 2018
Consolidated Statement of Comprehensive Income	As Reported			Adjustments			Balance without ASC 606 Adoption
Net revenue	$	246,403		$	(13,669	)	$	232,734
Cost of sales	194,927			(12,389		)	182,538
Gross profit	51,476			(1,280		)	50,196
Selling, general and administrative expenses	29,213			(308		)	28,905
Income from operations	22,263			(972		)	21,291
Income before income taxes	24,136			(972		)	23,164
Income tax expense	(4,445		)	225			(4,220		)
Net income	19,691			(747		)	18,944

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Restricted Cash (Tables)

3 Months Ended

Jun. 30, 2018

Cash and Cash Equivalents [Abstract]

Summary of restricted cash

Restricted cash consists of the following (in thousands):

	June 30, 2018		March 31, 2018
Cash related to CountryPlace customer payments to be remitted to third parties	$	10,626	$	9,180
Cash related to CountryPlace customer payments on securitized loans to be remitted to bondholders	1,343		1,311
Other restricted cash	2,015		2,001
	$	13,984	$	12,492

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Investments (Tables)

3 Months Ended

Jun. 30, 2018

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Investments

Investments consist of the following (in thousands):

	June 30, 2018		March 31, 2018
Available-for-sale debt securities	$	15,523	$	16,181
Marketable equity securities	12,736		10,405
Non-marketable equity investments	18,888		18,853
	$	47,147	$	45,439

The Company's investments in marketable equity securities consist of common stock holdings of industrial and other companies.

Non-marketable equity investments includes $15.0 million as of June 30, 2018 and March 31, 2018, of contributions to equity-method investments in community-based initiatives that buy and sell our homes and provide home-only financing to residents of certain manufactured home communities. Other non-marketable investments include investments in other distribution operations.

The following tables summarize the Company's available-for-sale debt securities, gross unrealized gains and losses and fair value, aggregated by investment category (in thousands):

	June 30, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury and government debt securities	$	300	$	—	$	(8	)	$	292
Residential mortgage-backed securities	7,334		—		(182		)	7,152
State and political subdivision debt securities	6,038		109		(118		)	6,029
Corporate debt securities	2,076		2		(28		)	2,050
	$	15,748	$	111	$	(336	)	$	15,523

	March 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury and government debt securities	$	300	$	—	$	(7	)	$	293
Residential mortgage-backed securities	7,654		—		(155		)	7,499
State and political subdivision debt securities	6,377		109		(149		)	6,337
Corporate debt securities	2,081		1		(30		)	2,052
	$	16,412	$	110	$	(341	)	$	16,181

The following tables show the gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands):

	June 30, 2018
	Less than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Treasury and government debt securities	$	292	$	(8	)	$	—	$	—		$	292	$	(8	)
Residential mortgage-backed securities	3,128		(64		)	4,019		(118		)	7,147		(182		)
State and political subdivision debt securities	1,932		(38		)	2,169		(80		)	4,101		(118		)
Corporate debt securities	1,432		(13		)	365		(15		)	1,797		(28		)
	$	6,784	$	(123	)	$	6,553	$	(213	)	$	13,337	$	(336	)

	March 31, 2018
	Less than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Treasury and government debt securities	$	293	$	(7	)	$	—	$	—		$	293	$	(7	)
Residential mortgage-backed securities	3,185		(52		)	3,909		(103		)	7,094		(155		)
State and political subdivision debt securities	2,224		(40		)	2,180		(109		)	4,404		(149		)
Corporate debt securities	1,384		(12		)	367		(18		)	1,751		(30		)
	$	7,086	$	(111	)	$	6,456	$	(230	)	$	13,542	$	(341	)

Based on the Company's ability and intent to hold the investments for a reasonable period of time sufficient for a forecasted recovery of fair value, the Company does not consider any investments to be other-than-temporarily impaired at June 30, 2018.

The amortized cost and fair value of the Company's investments in debt securities, by contractual maturity, are shown in the table below (in thousands). Expected maturities differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	June 30, 2018
	Amortized Cost		Fair Value
Due in less than one year	$	1,125	$	1,108
Due after one year through five years	3,020		2,934
Due after five years through ten years	930		908
Due after ten years	3,339		3,421
Mortgage-backed securities	7,334		7,152
	$	15,748	$	15,523

We recognize investment gains and losses on debt securities when we sell or otherwise dispose of securities on a specific identification method. There were no gross gains or losses realized during the three months ending June 30, 2018. During the three months ending July 1, 2017, there were no gross gains realized and $10,000 in gross losses realized.

Beginning in fiscal year 2019, we recognize unrealized gains and losses on marketable equity securities from changes in market prices during the period as a component of earnings in the Consolidated Statements of Comprehensive Income. The net investment gains and losses for the three months ended June 30, 2018 and July 1, 2017 are as follows (in thousands):

	Three Months Ended June 30, 2018
	June 30, 2018			July 1, 2017
Marketable equity securities:
Gains on securities held	$	1,610		$	—
Losses on securities sold	(40		)	—
Gross realized gains	—			165
Gross realized losses	—			(51		)
Total net gain on marketable equity securities	$	1,570		$	114

Schedule of Investments [Table Text Block]

Investments consist of the following (in thousands):

	June 30, 2018		March 31, 2018
Available-for-sale debt securities	$	15,523	$	16,181
Marketable equity securities	12,736		10,405
Non-marketable equity investments	18,888		18,853
	$	47,147	$	45,439

Available-for-Sale Securities by Investment Category

The following tables summarize the Company's available-for-sale debt securities, gross unrealized gains and losses and fair value, aggregated by investment category (in thousands):

	June 30, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury and government debt securities	$	300	$	—	$	(8	)	$	292
Residential mortgage-backed securities	7,334		—		(182		)	7,152
State and political subdivision debt securities	6,038		109		(118		)	6,029
Corporate debt securities	2,076		2		(28		)	2,050
	$	15,748	$	111	$	(336	)	$	15,523

	March 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury and government debt securities	$	300	$	—	$	(7	)	$	293
Residential mortgage-backed securities	7,654		—		(155		)	7,499
State and political subdivision debt securities	6,377		109		(149		)	6,337
Corporate debt securities	2,081		1		(30		)	2,052
	$	16,412	$	110	$	(341	)	$	16,181

Investment Securities in a Continuous Unrealized Loss Position

The following tables show the gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands):

	June 30, 2018
	Less than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Treasury and government debt securities	$	292	$	(8	)	$	—	$	—		$	292	$	(8	)
Residential mortgage-backed securities	3,128		(64		)	4,019		(118		)	7,147		(182		)
State and political subdivision debt securities	1,932		(38		)	2,169		(80		)	4,101		(118		)
Corporate debt securities	1,432		(13		)	365		(15		)	1,797		(28		)
	$	6,784	$	(123	)	$	6,553	$	(213	)	$	13,337	$	(336	)

	March 31, 2018
	Less than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Treasury and government debt securities	$	293	$	(7	)	$	—	$	—		$	293	$	(7	)
Residential mortgage-backed securities	3,185		(52		)	3,909		(103		)	7,094		(155		)
State and political subdivision debt securities	2,224		(40		)	2,180		(109		)	4,404		(149		)
Corporate debt securities	1,384		(12		)	367		(18		)	1,751		(30		)
	$	7,086	$	(111	)	$	6,456	$	(230	)	$	13,542	$	(341	)

Contractual Maturity of Investment Securities

The amortized cost and fair value of the Company's investments in debt securities, by contractual maturity, are shown in the table below (in thousands). Expected maturities differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	June 30, 2018
	Amortized Cost		Fair Value
Due in less than one year	$	1,125	$	1,108
Due after one year through five years	3,020		2,934
Due after five years through ten years	930		908
Due after ten years	3,339		3,421
Mortgage-backed securities	7,334		7,152
	$	15,748	$	15,523

Gain (Loss) on Securities [Table Text Block]

We recognize investment gains and losses on debt securities when we sell or otherwise dispose of securities on a specific identification method. There were no gross gains or losses realized during the three months ending June 30, 2018. During the three months ending July 1, 2017, there were no gross gains realized and $10,000 in gross losses realized.

Beginning in fiscal year 2019, we recognize unrealized gains and losses on marketable equity securities from changes in market prices during the period as a component of earnings in the Consolidated Statements of Comprehensive Income. The net investment gains and losses for the three months ended June 30, 2018 and July 1, 2017 are as follows (in thousands):

	Three Months Ended June 30, 2018
	June 30, 2018			July 1, 2017
Marketable equity securities:
Gains on securities held	$	1,610		$	—
Losses on securities sold	(40		)	—
Gross realized gains	—			165
Gross realized losses	—			(51		)
Total net gain on marketable equity securities	$	1,570		$	114

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Inventories (Tables)

3 Months Ended

Jun. 30, 2018

Inventory Disclosure [Abstract]

Summary of inventories

Inventories consist of the following (in thousands):

	June 30, 2018		March 31, 2018
Raw materials	$	38,331	$	36,124
Work in process	13,240		13,670
Finished goods and other	58,866		59,358
	$	110,437	$	109,152

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Consumer Loans Receivable (Tables)

3 Months Ended

Jun. 30, 2018

Mar. 31, 2018

Receivables [Abstract]

Consumer Loans Receivable

The following table summarizes consumer loans receivable (in thousands):

	June 30, 2018			March 31, 2018
Loans held for investment (at Acquisition Date)	$	49,825		$	51,798
Loans held for investment (originated after Acquisition Date)	23,874			21,183
Loans held for sale	14,535			12,830
Construction advances	12,259			11,088
Consumer loans receivable	100,493			96,899
Deferred financing fees and other, net	(1,949		)	(1,551		)
Allowance for loan losses	(387		)	(397		)
Consumer loans receivable, net	$	98,157		$	94,951

Acquired Consumer Loans Receivable Held for Investment

	June 30, 2018			March 31, 2018
	(in thousands)
Consumer loans receivable held for investment – contractual amount	$	114,919		$	120,096
Purchase discount
Accretable	(42,873		)	(44,481		)
Non-accretable	(22,214		)	(23,711		)
Less consumer loans receivable reclassified as other assets	(7		)	(106		)
Total acquired consumer loans receivable held for investment, net	$	49,825		$	51,798

Accretable Yield Movement on Acquired Consumer Loans Receivable

The changes in accretable yield on acquired consumer loans receivable held for investment were as follows (in thousands):

	Three Months Ended
	June 30, 2018			July 1, 2017
Balance at the beginning of the period	$	44,481		$	56,686
Accretion	(1,899		)	(2,210		)
Reclassifications from (to) non-accretable discount	291			436
Balance at the end of the period	$	42,873		$	54,912

Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score

The following table disaggregates CountryPlace's gross consumer loans receivable for each class by portfolio segment and credit quality indicator as of the time of origination (in thousands):

	June 30, 2018
	Consumer Loans Held for Investment
	Securitized 2005		Securitized 2007		Unsecuritized		Construction Advances		Consumer Loans Held For Sale		Total
Asset Class
Credit Quality Indicator (FICO® score)
Chattel loans
0-619	$	439	$	271	$	323	$	—	$	—	$	1,033
620-719	9,668		6,889		10,351		—		—		26,908
720+	10,186		6,139		11,958		—		504		28,787
Other	49		—		408		—		—		457
Subtotal	20,342		13,299		23,040		—		504		57,185
Conforming mortgages
0-619	—		—		155		—		189		344
620-719	—		—		2,232		7,950		8,350		18,532
720+	—		—		298		4,309		5,492		10,099
Other	—		—		116		—		—		116
Subtotal	—		—		2,801		12,259		14,031		29,091
Non-conforming mortgages
0-619	81		398		1,030		—		—		1,509
620-719	1,061		4,151		3,061		—		—		8,273
720+	1,277		2,493		377		—		—		4,147
Other	—		—		278		—		—		278
Subtotal	2,419		7,042		4,746		—		—		14,207
Other loans	—		—		10		—		—		10
	$	22,761	$	20,341	$	30,597	$	12,259	$	14,535	$	100,493

	March 31, 2018
	Consumer Loans Held for Investment
	Securitized 2005		Securitized 2007		Unsecuritized		Construction Advances		Consumer Loans Held For Sale		Total
Asset Class
Credit Quality Indicator (FICO® score)
Chattel loans
0-619	$	465	$	354	$	330	$	—	$	—	$	1,149
620-719	10,102		7,107		8,587		—		245		26,041
720+	10,594		6,410		11,285		—		155		28,444
Other	49		—		403		—		—		452
Subtotal	21,210		13,871		20,605		—		400		56,086
Conforming mortgages
0-619	—		—		156		141		179		476
620-719	—		—		2,137		6,428		6,479		15,044
720+	—		—		199		4,519		5,663		10,381
Subtotal	—		—		2,608		11,088		12,430		26,126
Non-conforming mortgages
0-619	82		405		1,047		—		—		1,534
620-719	1,120		4,378		3,093		—		—		8,591
720+	1,348		2,526		395		—		—		4,269
Other	—		—		282		—		—		282
Subtotal	2,550		7,309		4,817		—		—		14,676
Other loans	—		—		11		—		—		11
	$	23,760	$	21,180	$	28,041	$	11,088	$	12,830	$	96,899

Loans and Leases Receivable, Other Information

The weighted averages of assumptions used in the calculation of expected cash flows to be collected were as follows:

	June 30, 2018		March 31, 2018
Prepayment rate	16.1	%	16.0	%
Default rate	1.2	%	1.2	%

Assuming there was a 1% unfavorable variation from the expected level, for each key assumption, the expected cash flows for the life of the portfolio, as of June 30, 2018, would decrease by approximately $1.2 million and $3.3 million for the expected prepayment rate and expected default rate, respectively.

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Commercial Loans Receivables and Allowance for Loan Loss (Tables)

3 Months Ended

Jun. 30, 2018

Receivables [Abstract]

Commercial Loans Receivables

receivable, net, consisted of the following by class of financing notes receivable (in thousands):

	June 30, 2018			March 31, 2018
Direct loans receivable	$	30,414		$	16,368
Participation loans receivable	332			275
Allowance for loan losses	(113		)	(42		)
	$	30,633		$	16,601

Changes in the Allowance for Loan Losses on Commercial Loans Receivables

he following table represents changes in the estimated allowance for loan losses, including related additions and deductions to the allowance for loan losses applicable to the direct programs (in thousands):

	Three Months Ended
	June 30, 2018		July 1, 2017
Balance at beginning of period	$	42	$	210
Provision for inventory finance credit losses	71		12
Loans charged off, net of recoveries	—		—
Balance at end of period	$	113	$	222

Allowance for Loan Losses and Commercial Loans Receivables By Class Individually and Collectively Evaluated for Impairment

The following table disaggregates commercial loans receivable and the estimated allowance for loan losses for each class of financing receivable by evaluation methodology (in thousands):

	Direct Commercial Loans						Participation Commercial Loans
	June 30, 2018			March 31, 2018			June 30, 2018		March 31, 2018
Inventory finance notes receivable:
Collectively evaluated for impairment	$	11,349		$	4,193		$	—	$	—
Individually evaluated for impairment	19,065			12,175			332		275
	$	30,414		$	16,368		$	332	$	275
Allowance for loan losses:
Collectively evaluated for impairment	$	(113	)	$	(42	)	$	—	$	—
Individually evaluated for impairment	—			—			—		—
	$	(113	)	$	(42	)	$	—	$	—

Commercial Loans Receivables by Class and Internal Credit Quality Indicator

The following table disaggregates the Company's inventory finance receivables by class and credit quality indicator (in thousands):

	Direct Commercial Loans				Participation Commercial Loans
	June 30, 2018		March 31, 2018		June 30, 2018		March 31, 2018
Risk profile based on payment activity:
Performing	$	30,414	$	16,368	$	332	$	275
Watch list	—		—		—		—
Nonperforming	—		—		—		—
	$	30,414	$	16,368	$	332	$	275

Geographic Concentration of Commercial Loans Receivables in Key States

The Company has concentrations of commercial loans receivable related to factory-built homes in excess of 10% located in the following states, measured as a percentage of commercial loans receivables principal balance outstanding:

	June 30, 2018		March 31, 2018
Arizona	16.0	%	16.7	%
California	13.4	%	14.4	%
Oregon	11.1	%	14.7	%
Texas	10.6	%	9.0	%

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Property, Plant and Equipment (Tables)

3 Months Ended

Jun. 30, 2018

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, plant and equipment consisted of the following (in thousands):

	June 30, 2018			March 31, 2018
Property, plant and equipment, at cost:
Land	$	24,001		$	24,001
Buildings and improvements	39,963			39,613
Machinery and equipment	25,414			24,154
	89,378			87,768
Accumulated depreciation	(25,373		)	(24,413		)
Property, plant and equipment, net	$	64,005		$	63,355

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Accrued Liabilities (Tables)

3 Months Ended

Jun. 30, 2018

Payables and Accruals [Abstract]

Accrued Liabilities

Accrued liabilities consist of the following (in thousands):

	June 30, 2018		March 31, 2018
Customer deposits	$	23,774	$	21,294
Salaries, wages and benefits	20,055		24,416
Unearned insurance premiums	18,216		17,432
Estimated warranties	16,670		16,638
Accrued volume rebates	9,044		7,778
Insurance loss reserves	6,472		6,157
Company repurchase option on certain loans sold	5,264		5,637
Accrued insurance	4,543		5,320
Accrued taxes	2,368		1,986
Reserve for repurchase commitments	2,315		2,207
Capital lease obligation	1,136		1,155
Other	16,917		16,480
	$	126,774	$	126,500

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Warranties (Tables)

3 Months Ended

Jun. 30, 2018

Product Warranties Disclosures [Abstract]

Activity in the liability for estimated warranties

Activity in the liability for estimated warranties was as follows (in thousands):

	Three Months Ended
	June 30, 2018			July 1, 2017
Balance at beginning of period	$	16,638		$	15,479
Purchase accounting additions	—			838
Charged to costs and expenses	6,229			5,223
Payments and deductions	(6,197		)	(5,224		)
Balance at end of period	$	16,670		$	16,316

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Debt Obligations (Tables)

3 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Debt Obligations

Debt obligations primarily consist of amounts related to loans sold that did not qualify for loan sale accounting treatment. The following table summarizes debt obligations (in thousands):

	June 30, 2018		March 31, 2018
Acquired securitized financings (acquired as part of the Palm Harbor transaction)
Securitized financing 2005-1	$	19,732	$	20,524
Securitized financing 2007-1	21,797		22,552
Other secured financings	5,009		4,966
Secured credit facilities	11,583		11,770
Total securitized financings and other, net	$	58,121	$	59,812

Acquired Securitized Financings

The following table summarizes acquired securitized financings (in thousands):

	June 30, 2018			March 31, 2018
Securitized financings – contractual amount	$	44,226		$	46,591
Purchase discount
Accretable	(2,697		)	(3,515		)
Non-accretable (1)	—			—
Total acquired securitized financings, net	$	41,529		$	43,076

(1) There is no non-accretable difference, as the contractual payments on acquired securitized financing are determined by the cash collections from the underlying loans.

Accretable Yield Movement on Acquired Securitized Financings

The changes in accretable yield on securitized financings were as follows (in thousands):

	Three Months Ended
	June 30, 2018			July 1, 2017
Balance at the beginning of the period	$	3,515		$	7,636
Accretion	(803		)	(871		)
Adjustment to cash flows	(15		)	(99		)
Balance at the end of the period	$	2,697		$	6,666

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Reinsurance (Tables)

3 Months Ended

Jun. 30, 2018

Insurance [Abstract]

Reinsurance Effect on Premiums Written and Earned

The effects of reinsurance on premiums written and earned are as follows (in thousands):

	Three Months Ended
	June 30, 2018						July 1, 2017
	Written			Earned			Written			Earned
Direct premiums	$	4,541		$	4,211		$	4,366		$	4,150
Assumed premiums—nonaffiliate	6,934			6,234			6,260			6,267
Ceded premiums—nonaffiliate	(2,847		)	(2,847		)	(2,948		)	(2,948		)
Net premiums	$	8,628		$	7,598		$	7,678		$	7,469

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Commitments and Contingencies (Tables)

3 Months Ended

Jun. 30, 2018

Repurchase Contingencies [Roll Forward]

Loan Contracts with Off-Balance Sheet Commitments

Letters of Credit. To secure certain reinsurance contracts, Standard Casualty maintains an irrevocable letter of credit of $11.0 million to provide assurance that Standard Casualty will fulfill its reinsurance obligations. This letter of credit is secured by certain of the Company's investments. There were no amounts outstanding at either June 30, 2018 or March 31, 2018.

Construction-Period Mortgages. CountryPlace funds construction-period mortgages through periodic advances during the period of home construction. At the time of initial funding, CountryPlace commits to fully fund the loan contract in accordance with a predetermined schedule. Subsequent advances are contingent upon the performance of contractual obligations by the seller of the home and the borrower. Cumulative advances on construction-period mortgages are carried in the consolidated balance sheet at the amount advanced less a valuation allowance, and are included in consumer loans receivable. The total loan contract amount, less cumulative advances, represents an off-balance sheet contingent commitment of CountryPlace to fund future advances.

Loan contracts with off-balance sheet commitments are summarized below (in thousands):

	June 30, 2018			March 31, 2018
Construction loan contract amount	$	29,961		$	27,093
Cumulative advances	(12,259		)	(11,088		)
Remaining construction contingent commitment	$	17,702		$	16,005

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Stockholders' Equity (Tables)

3 Months Ended

Jun. 30, 2018

Stockholders' Equity Note [Abstract]

Schedule of Stockholders Equity

The following table represents changes in stockholders' equity for the three months ended June 30, 2018 (dollars in thousands):

				Additional paid-in capital			Retained earnings		Accumulated other comprehensive income (loss)			Total
	Common Stock
	Shares	Amount
Balance, March 31, 2018	9,044,858	$	90	$	246,197		$	209,381	$	1,438		$	457,106
Cumulative effect of implementing ASU 2016-01, net	—	—		—			1,621		(1,621		)	—
Cumulative effect of implementing ASC 606, net	—	—		—			454		—			454
Stock option exercises	16,448	1		(2,169		)	—		—			(2,168		)
Stock-based compensation	—	—		599			—		—			599
Net income	—	—		—			19,691		—			19,691
Other comprehensive income, net	—	—		—			—		5			5
Balance, June 30, 2018	9,061,306	$	91	$	244,627		$	231,147	$	(178	)	$	475,687

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Stock-Based Compensation (Tables)

3 Months Ended

Jun. 30, 2018

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

Stock Options Activity

The following table summarizes the option activity within the Company's stock-based compensation plans for the three months ended June 30, 2018:

	Number of Options
Outstanding at March 31, 2018	418,205
Granted	4,000
Exercised	(33,683	)
Canceled or expired	—
Outstanding at June 30, 2018	388,522
Exercisable at June 30, 2018	171,038

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Earnings Per Share (Tables)

3 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Earnings Per Share Computation

The following table sets forth the computation of basic and diluted earnings per share (dollars in thousands, except per share amounts):

	Three Months Ended
	June 30, 2018		July 1, 2017
Net income	$	19,691	$	11,753
Weighted average shares outstanding:
Basic	9,048,579		9,006,999
Common stock equivalents—treasury stock method	218,469		155,492
Diluted	9,267,048		9,162,491
Net income per share:
Basic	$	2.18	$	1.30
Diluted	$	2.12	$	1.28

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Fair Value Measurements (Tables)

3 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value Transfer, Policy [Policy Text Block]

The Company's policy regarding the recording of transfers between levels is to record any such transfers at the end of the reporting period.

Transfers and Servicing of Financial Assets, Servicing of Financial Assets, Policy [Policy Text Block]

Mortgage Servicing. Mortgage Servicing Rights ("MSRs") are the rights to receive a portion of the interest coupon and fees collected from the mortgagors for performing specified mortgage servicing activities, which consist of collecting loan payments, remitting principal and interest payments to investors, managing escrow accounts, performing loss mitigation activities on behalf of investors and otherwise administering the loan servicing portfolio. MSRs are initially recorded at fair value. Changes in fair value subsequent to the initial capitalization are recorded in the Company's results of operations. The Company recognizes MSRs on all loans sold to investors that meet the requirements for sale accounting and for which servicing rights are retained.

The Company applies fair value accounting to MSRs, with all changes in fair value recorded to net revenue in accordance with ASC 860-50, Servicing Assets and Liabilities. The fair value of MSRs is based on the present value of the expected future cash flows related to servicing these loans. The revenue components of the cash flows are servicing fees, interest earned on custodial accounts and other ancillary income. The expense components include operating costs related to servicing the loans (including delinquency and foreclosure costs) and interest expenses on servicer advances that the Company believes are consistent with the assumptions major market participants use in valuing MSRs. The expected cash flows are primarily impacted by prepayment estimates, delinquencies and market discounts. Generally, the value of MSRs is expected to increase when interest rates rise and decrease when interest rates decline, due to the effect those changes in interest rates have on prepayment estimates.

Summary of the Fair Value and Carrying Value of Financial Instruments

The book value and estimated fair value of the Company's financial instruments are as follows (in thousands):

	June 30, 2018						March 31, 2018
	Book Value			Estimated Fair Value			Book Value			Estimated Fair Value
Available-for-sale debt securities (1)	$	15,523		$	15,523		$	16,181		$	16,181
Marketable equity securities (1)	12,736			12,736			10,405			10,405
Non-marketable equity investments (2)	18,888			18,888			18,853			18,853
Consumer loans receivable (3)	98,157			115,032			94,951			113,277
Interest rate lock commitment derivatives (4)	(8		)	(8		)	(12		)	(12		)
Forward loan sale commitment derivatives (4)	149			149			26			26
Commercial loans receivable (5)	30,633			31,301			16,601			16,972
Securitized financings and other (6)	(58,121		)	(63,210		)	(59,812		)	(64,509		)
Mortgage servicing rights (7)	1,443			1,443			1,410			1,410

Fair Value Measurement, Policy [Policy Text Block]

In accordance with ASC 820, Fair Value Measurements and Disclosures ("ASC 820"), fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1 –	Quoted prices in active markets for identical assets or liabilities.
Level 2 –	Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 –	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

When the Company uses observable market prices for identical securities that are traded in less active markets, it classifies such securities as Level 2. When observable market prices for identical securities are not available, the Company prices its marketable debt instruments using non-binding market consensus prices that are corroborated with observable market data; quoted market prices for similar instruments; or pricing models, such as a discounted cash flow model, with all significant inputs derived from or corroborated with observable market data. Non-binding market consensus prices are based on the proprietary valuation models of pricing providers or brokers. These valuation models incorporate a number of inputs, including non-binding and binding broker quotes; observable market prices for identical or similar securities; and the internal assumptions of pricing providers or brokers that use observable market inputs and, to a lesser degree, unobservable market inputs.

Summary of Assets Measured at Fair Value on a Recurring Basis

Financial instruments measured at fair value on a recurring basis are summarized below (in thousands):

	June 30, 2018
	Total			Level 1		Level 2		Level 3
Securities issued by the U.S Treasury and Government (1)	$	292		$	—	$	292	$	—
Mortgage-backed securities (1)	7,152			—		7,152		—
Securities issued by states and political subdivisions (1)	6,029			—		6,029		—
Corporate debt securities (1)	2,050			—		2,050		—
Marketable equity securities (2)	12,736			12,736		—		—
Interest rate lock commitment derivatives (3)	(8		)	—		—		(8		)
Forward loan sale commitment derivatives (3)	149			—		—		149
Mortgage servicing rights (4)	1,443			—		—		1,443

(1) Unrealized gains or losses on investments are recorded in accumulated other comprehensive income (loss) at each measurement date.

(2) Unrealized gains or losses on investments are recorded in earnings at each measurement date.

(3) Gains or losses on derivatives are recognized in current period earnings through cost of sales.

(4) Changes in the fair value of mortgage servicing rights are recognized in the current period earnings through net revenue.

Summary of Assets and Liabilities Measured at Fair Value for Disclosure

Financial instruments for which fair value is disclosed but not required to be recognized in the balance sheet on a recurring basis are summarized below (in thousands):

	June 30, 2018
	Total			Level 1		Level 2			Level 3
Loans held for investment	$	87,726		$	—	$	—		$	87,726
Loans held for sale	15,047			—		—			15,047
Loans held—construction advances	12,259			—		—			12,259
Commercial loans receivable	31,301			—		—			31,301
Securitized financings and other	(63,210		)	—		(63,210		)	—
Non-marketable equity investments	18,888			—		—			18,888

Assumptions for Mortgage Servicing Rights

	June 30, 2018			March 31, 2018
Number of loans serviced with MSRs	4,399			4,346
Weighted average servicing fee (basis points)	32.05			32.03
Capitalized servicing multiple	85.24		%	84.76		%
Capitalized servicing rate (basis points)	27.32			27.15
Serviced portfolio with MSRs (in thousands)	$	528,206		$	519,167
Mortgage servicing rights (in thousands)	$	1,443		$	1,410

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Business Segment Information (Tables)

3 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Business Segment Information

The following table details net revenue and income before income taxes by segment (in thousands):

	Three Months Ended
	June 30, 2018		July 1, 2017
Net revenue:
Factory-built housing	$	232,762	$	192,882
Financial services	13,641		13,934
	$	246,403	$	206,816
Income before income taxes:
Factory-built housing	$	21,608	$	13,170
Financial services	2,528		2,481
	$	24,136	$	15,651

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Basis of Presentation (Principles of Consolidation) (Details)	3 Months Ended
	Jun. 30, 2018 store factories Segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments | Segment	2
Number of operating manufacturing facilities | factories	20
Number of Stores | store	39

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Basis of Presentation New Accounting Pronouncements (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Mar. 31, 2018	Apr. 01, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cash and Cash Equivalents, at Carrying Value	$ 177,487	$ 129,509	$ 186,766
Restricted cash	12,918	13,323	11,228
Restricted cash, Noncurrent	1,066	725	1,264
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	191,471	143,557	$ 199,258	$ 144,839
Difference between Revenue Guidance in Effect before and after Topic 606 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification	6,500	$ 5,100
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets	454
Accounting Standards Update 2016-01 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets	1,621
Nonoperating Income (Expense) [Member] | Accounting Standards Update 2016-01 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification	$ 1,600

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Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Mar. 31, 2018	Jul. 01, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accrued Liabilities, Current	$ 126,774	$ 126,500
Liabilities, Current	175,626	176,329
Deferred income taxes	8,364	7,577
Retained earnings	231,147	209,381
Stockholders' Equity Attributable to Parent	475,687	457,106
Revenues	246,403		$ 206,816
Cost of Revenue	194,927		164,850
Gross Profit	51,476		41,966
Selling, General and Administrative Expense	29,213		26,305
Operating Income (Loss)	22,263		15,661
Income before income taxes	24,136		15,651
Income Tax Expense (Benefit)	4,445		3,898
Net income	19,691		11,753
Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accrued Liabilities, Current	128,418
Liabilities, Current	177,270
Deferred income taxes	7,923
Retained earnings	229,944
Stockholders' Equity Attributable to Parent	474,484
Revenues	232,734
Cost of Revenue	182,538
Gross Profit	50,196
Selling, General and Administrative Expense	28,905
Operating Income (Loss)	21,291
Income before income taxes	23,164
Income Tax Expense (Benefit)	4,220
Net income	18,944
Accounting Standards Update 2014-09 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Operating Results	(1,280)
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income	(747)
Difference between Revenue Guidance in Effect before and after Topic 606 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income	6,500		$ 5,100
Revenue from Contract with Customer [Member] | Accounting Standards Update 2014-09 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income	(13,669)
Cost of Sales [Member] | Accounting Standards Update 2014-09 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income	(12,389)
Selling, General and Administrative Expenses [Member] | Accounting Standards Update 2014-09 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income	(308)
Operating Income (Loss) [Member] | Accounting Standards Update 2014-09 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income	(972)
Other Expense [Member] | Accounting Standards Update 2014-09 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income	225
Accrued Liabilities [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income	1,644	$ 600
Other Current Liabilities [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income	1,644
Deferred Tax Asset [Domain]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income	(441)
Retained earnings
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income	(1,203)
Stockholders' Equity, Total [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income	$ (1,203)

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Revenue from Contracts with Customers Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Disaggregation of Revenue [Line Items]
Revenues	$ 246,403	$ 206,816
Factory-built housing
Disaggregation of Revenue [Line Items]
Revenues	232,762	192,882
Factory-built housing | HUD Code [Member]
Disaggregation of Revenue [Line Items]
Revenues	186,316
Factory-built housing | Modular
Disaggregation of Revenue [Line Items]
Revenues	22,447
Factory-built housing | Park Model RVs
Disaggregation of Revenue [Line Items]
Revenues	11,727
Factory-built housing | Product and Service, Other
Disaggregation of Revenue [Line Items]
Revenues	12,272
Financial Services
Disaggregation of Revenue [Line Items]
Revenues	13,641	$ 13,934
Financial Services | Insurance Agency Commissions
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	632
Financial Services | Financial Service, Other
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	$ 13,009

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Restricted Cash (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018	Jul. 01, 2017
Summary of restricted cash
Restricted cash	$ 12,918	$ 11,228	$ 13,323
Restricted cash, Noncurrent	1,066	1,264	$ 725
Total restricted cash	13,984	12,492
Cash related to CountryPlace customer payments to be remitted to third parties [Member]
Summary of restricted cash
Restricted cash	10,626	9,180
Cash related to CountryPlace customers' principal and interest payments on securitized loans to be remitted to bondholders [Member]
Summary of restricted cash
Restricted cash	1,343	1,311
Other restricted cash [Member]
Summary of restricted cash
Restricted cash, Noncurrent	$ 2,015	$ 2,001

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Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Debt Securities, Available-for-sale	$ 15,523	$ 16,181
Marketable Equity Securities	12,736
Marketable Equity Securities		10,405
Equity Method Investments	18,888	18,853
Investments	47,147	$ 45,439
Payments to acquire interest in joint venture	$ 15,000

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Investments (Details 1) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018
Available-for-Sale Securities by Investment Category
Debt Securities, Amortized Cost Basis	$ 15,748	$ 16,412
Debt Securities, Available-for-sale	15,523	16,181
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	111	110
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	(336)	(341)
U.S. Treasury and Government Agencies [Member]
Available-for-Sale Securities by Investment Category
Debt Securities, Amortized Cost Basis	300	300
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	0	0
Gross Unrealized Losses	(8)	(7)
Debt Securities, Available-for-sale	292	293
Mortgage-backed securities [Member]
Available-for-Sale Securities by Investment Category
Debt Securities, Amortized Cost Basis	7,334	7,654
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	0	0
Gross Unrealized Losses	(182)	(155)
Debt Securities, Available-for-sale	7,152	7,499
States and political subdivisions [Member]
Available-for-Sale Securities by Investment Category
Debt Securities, Amortized Cost Basis	6,038	6,377
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	109	109
Gross Unrealized Losses	(118)	(149)
Debt Securities, Available-for-sale	6,029	6,337
Corporate debt securities [Member]
Available-for-Sale Securities by Investment Category
Debt Securities, Amortized Cost Basis	2,076	2,081
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	2	1
Gross Unrealized Losses	(28)	(30)
Debt Securities, Available-for-sale	$ 2,050	$ 2,052

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Investments (Details 2) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018
Investment Securities in a Continuous Unrealized Loss Position
Less than 12 Months, Fair Value	$ 6,784	$ 7,086
Less than 12 month, Unrealized Losses	(123)	(111)
12 Months or Longer, Fair Value	6,553	6,456
12 Months or Longer, Unrealized Losses	(213)	(230)
Debt Securities, Available-for-sale, Unrealized Loss Position	13,337	13,542
Gross Unrealized Losses	(336)	(341)
U.S. Treasury and Government Agencies [Member]
Debt Securities, Available-for-sale [Line Items]
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	0	0
Investment Securities in a Continuous Unrealized Loss Position
Less than 12 Months, Fair Value	292	293
Less than 12 month, Unrealized Losses	(8)	(7)
12 Months or Longer, Fair Value	0	0
12 Months or Longer, Unrealized Losses	0	0
Debt Securities, Available-for-sale, Unrealized Loss Position	292	293
Gross Unrealized Losses	(8)	(7)
Mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	0	0
Investment Securities in a Continuous Unrealized Loss Position
Less than 12 Months, Fair Value	3,128	3,185
Less than 12 month, Unrealized Losses	(64)	(52)
12 Months or Longer, Fair Value	4,019	3,909
12 Months or Longer, Unrealized Losses	(118)	(103)
Debt Securities, Available-for-sale, Unrealized Loss Position	7,147	7,094
Gross Unrealized Losses	(182)	(155)
States and political subdivisions [Member]
Debt Securities, Available-for-sale [Line Items]
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	109	109
Investment Securities in a Continuous Unrealized Loss Position
Less than 12 Months, Fair Value	1,932	2,224
Less than 12 month, Unrealized Losses	(38)	(40)
12 Months or Longer, Fair Value	2,169	2,180
12 Months or Longer, Unrealized Losses	(80)	(109)
Debt Securities, Available-for-sale, Unrealized Loss Position	4,101	4,404
Gross Unrealized Losses	(118)	(149)
Corporate Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	2	1
Investment Securities in a Continuous Unrealized Loss Position
Less than 12 Months, Fair Value	1,432	1,384
Less than 12 month, Unrealized Losses	(13)	(12)
12 Months or Longer, Fair Value	365	367
12 Months or Longer, Unrealized Losses	(15)	(18)
Debt Securities, Available-for-sale, Unrealized Loss Position	1,797	1,751
Gross Unrealized Losses	$ (28)	$ (30)

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Investments (Details 3) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018
Contractual Maturity of Investment Securities
Due in less than one year, Amortized Cost	$ 1,125
Due after one year through five years, Amortized Cost	3,020
Due after five years through ten years, Amortized Cost	930
Due after ten years, Amortized Cost	3,339
Debt Securities without Single Maturity Date, Amortized Cost	7,334
Debt Securities, Amortized Cost Basis	15,748	$ 16,412
Due in less than one year, Fair Value	1,108
Due after one year through five years, Fair Value	2,934
Due after five years through ten years, Fair Value	908
Due after ten years, Fair Value	3,421
Debt Securities without Single Maturity Date, Fair Value	7,152
Debt Securities, Available-for-sale	$ 15,523	$ 16,181

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Investments (Details 4) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Investment [Line Items]
Marketable Equity Securities Unrealized Gain	$ 1,610
Marketable Equity Securities Realized Loss	(40)
Marketable Equity Securities Gain (Loss)	$ 1,570
Equity Securities [Member]
Investment [Line Items]
Available-for-sale Securities, Gross Realized Gains		$ 165
Available-for-sale Securities, Gross Realized Losses		(51)
Available-for-sale Securities, Gross Realized Gain (Loss), Excluding Other than Temporary Impairments		$ 114

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Investments (Details Textual) - USD ($)	3 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Mar. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Realized Gain	$ 0	$ 0
Debt Securities, Available-for-sale	15,523,000		$ 16,181,000
Investments (Textual) [Abstract]
Value of investments to be other-than-temporarily impaired	0
Equity Securities gain on investments held	1,610,000
Equity Securities loss on investments sold	(40,000)
Gain (Loss) on Equity Securities	1,570,000
Gross losses realized	$ 0	10,000
Equity Securities [Member]
Investments (Textual) [Abstract]
Gross gains realized		165,000
Available-for-sale Equity Securities, Gross Unrealized Loss		(51,000)
Available-for-sale Securities, Gross Realized Gain (Loss)		$ 114,000

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Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018
Summary of inventories
Raw materials	$ 38,331	$ 36,124
Work in process	13,240	13,670
Finished goods and other	58,866	59,358
Total Inventories	$ 110,437	$ 109,152

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Consumer Loans Receivable (Summary of Consumer Loans Receivable) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Mar. 31, 2018
Consumer Loans Receivable
Loans held for investment (acquired on Palm Harbor Acquisition Date)	$ 49,825	$ 51,798
Loans held for investment (originated after Palm Harbor Acquisition Date)	23,874	21,183
Loans held for sale	14,535	12,830
Loans and Leases Receivable, Gross, Consumer, Construction	12,259	11,088
Loans and Leases Receivable, Gross, Carrying Amount, Covered	100,493	96,899
Loans and Leases Receivable, Deferred Income	(1,949)	(1,551)
Other Deductions or Allowable Credits	387	397
Loans and Leases Receivable, Net Amount	$ 98,157	$ 94,951
Weighted average contractual interest rate	8.51%	8.57%
Weighted average effective interest rate	8.85%	9.34%
Weighted average months to maturity	168 months	168 months
Sensitivity Analysis, Change in Default Rate	$ 3,300
Weighted average prepayment rate	16.10%	16.00%
Weighted average default rate	1.20%	1.20%

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Consumer Loans Receivable (Summary of Acquired Loans Receivable) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018	Jul. 01, 2017	Apr. 01, 2017
Acquired Consumer Loans Receivable Held for Investment
Consumer loans receivable held for investment - contractual amount	$ 114,919	$ 120,096
Purchase discount, accretable	(42,873)	(44,481)	$ (54,912)	$ (56,686)
Purchase discount, non-accretable	(22,214)	(23,711)
Less consumer loans receivable reclassified as other assets	(7)	(106)
Total acquired consumer loans receivable held for investment, net	$ 49,825	$ 51,798

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Consumer Loans Receivable (Changes in Accretable Yield on Acquired Loans Receivable) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Accretable Yield Movement on Acquired Consumer Loans Receivable
Balance at the beginning of the period	$ 44,481	$ 56,686
Accretion	(1,899)	(2,210)
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Reclassifications (to) from Nonaccretable Difference	291	436
Balance at the end of the period	$ 42,873	$ 54,912

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Consumer Loans Receivable (Narrative) (Details) - USD ($)	3 Months Ended
	Jun. 30, 2018	Mar. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount, Covered	$ 100,493,000	$ 96,899,000
Loans and Leases Receivable, Deferred Income	1,949,000	1,551,000
Other Deductions or Allowable Credits	(387,000)	(397,000)
Loans and Leases Receivable, Net Amount	98,157,000	94,951,000
Mortgage Loans on Real Estate, Foreclosures	$ 1,600,000	1,131,000
Percentage concentration of consumer loans receivable	10.00%
Real Estate Acquired Through Foreclosure	$ 1,100,000	$ 1,500,000
TEXAS
Accounts, Notes, Loans and Financing Receivable [Line Items]
Consumer Loans Receivable Geographical Concentration Percentage	46.00%	44.00%
FLORIDA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Consumer Loans Receivable Geographical Concentration Percentage	11.00%	11.00%
Consumer Loans Held for Investment, Unsecuritized [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair Value Measurements, Sensitivity Analysis, Description	0.01

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Consumer Loans Receivable (Consumer Loan Receivables by Segment and Credit Quality Indicator) (Details) $ in Thousands	3 Months Ended
	Jun. 30, 2018 USD ($) Credit_Quality_Indicator	Mar. 31, 2018 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Sensitivity Analysis, Change in Prepayment Rate	$ 1,200
Sensitivity Analysis, Change in Default Rate	3,300
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	100,493	$ 96,899
Chattel Loans [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	57,185	56,086
Chattel Loans Range One [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	$ 1,033	1,149
Chattel Loans Range One [Member] | Minimum [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Asset class credit quality indicator | Credit_Quality_Indicator	0
Chattel Loans Range One [Member] | Maximum [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Asset class credit quality indicator | Credit_Quality_Indicator	619
Chattel Loans Range Two [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	$ 26,908	26,041
Chattel Loans Range Two [Member] | Minimum [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Asset class credit quality indicator | Credit_Quality_Indicator	620
Chattel Loans Range Two [Member] | Maximum [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Asset class credit quality indicator | Credit_Quality_Indicator	719
Chattel Loans Range Three [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	$ 28,787	28,444
Chattel Loans Range Three [Member] | Minimum [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Asset class credit quality indicator | Credit_Quality_Indicator	720
Chattel Loans Range Four [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	$ 457	452
Conforming Mortgages [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	29,091	26,126
Conforming Mortgages Range One [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	$ 344	476
Conforming Mortgages Range One [Member] | Minimum [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Asset class credit quality indicator | Credit_Quality_Indicator	0
Conforming Mortgages Range One [Member] | Maximum [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Asset class credit quality indicator | Credit_Quality_Indicator	619
Conforming Mortgages Range Two [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	$ 18,532	15,044
Conforming Mortgages Range Two [Member] | Minimum [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Asset class credit quality indicator | Credit_Quality_Indicator	620
Conforming Mortgages Range Two [Member] | Maximum [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Asset class credit quality indicator | Credit_Quality_Indicator	719
Conforming Mortgages Range Three [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	$ 10,099	10,381
Conforming Mortgages Range Three [Member] | Minimum [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Asset class credit quality indicator | Credit_Quality_Indicator	720
Conforming Mortgages Range Four [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	$ 116
Non-conforming Mortgages [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	14,207	14,676
Non Conforming Mortgages Range One [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	$ 1,509	1,534
Non Conforming Mortgages Range One [Member] | Minimum [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Asset class credit quality indicator | Credit_Quality_Indicator	0
Non Conforming Mortgages Range One [Member] | Maximum [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Asset class credit quality indicator | Credit_Quality_Indicator	619
Non Conforming Mortgages Range Two [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	$ 8,273	8,591
Non Conforming Mortgages Range Two [Member] | Minimum [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Asset class credit quality indicator | Credit_Quality_Indicator	620
Non Conforming Mortgages Range Two [Member] | Maximum [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Asset class credit quality indicator | Credit_Quality_Indicator	719
Non Conforming Mortgages Range Three [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	$ 4,147	4,269
Non Conforming Mortgages Range Three [Member] | Minimum [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Asset class credit quality indicator | Credit_Quality_Indicator	720
Non Conforming Mortgages Range Four [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	$ 278	282
Other Loans [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	10	11
Loans Securitized 2005 [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	22,761	23,760
Loans Securitized 2005 [Member] | Chattel Loans [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	20,342	21,210
Loans Securitized 2005 [Member] | Chattel Loans Range One [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	439	465
Loans Securitized 2005 [Member] | Chattel Loans Range Two [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	9,668	10,102
Loans Securitized 2005 [Member] | Chattel Loans Range Three [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	10,186	10,594
Loans Securitized 2005 [Member] | Chattel Loans Range Four [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	49	49
Loans Securitized 2005 [Member] | Conforming Mortgages [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	0	0
Loans Securitized 2005 [Member] | Conforming Mortgages Range One [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	0	0
Loans Securitized 2005 [Member] | Conforming Mortgages Range Two [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	0	0
Loans Securitized 2005 [Member] | Conforming Mortgages Range Three [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	0	0
Loans Securitized 2005 [Member] | Non-conforming Mortgages [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	2,419	2,550
Loans Securitized 2005 [Member] | Non Conforming Mortgages Range One [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	81	82
Loans Securitized 2005 [Member] | Non Conforming Mortgages Range Two [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	1,061	1,120
Loans Securitized 2005 [Member] | Non Conforming Mortgages Range Three [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	1,277	1,348
Loans Securitized 2005 [Member] | Other Loans [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	0	0
Loans Securitized 2007 [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	20,341	21,180
Loans Securitized 2007 [Member] | Chattel Loans [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	13,299	13,871
Loans Securitized 2007 [Member] | Chattel Loans Range One [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	271	354
Loans Securitized 2007 [Member] | Chattel Loans Range Two [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	6,889	7,107
Loans Securitized 2007 [Member] | Chattel Loans Range Three [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	6,139	6,410
Loans Securitized 2007 [Member] | Conforming Mortgages [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	0	0
Loans Securitized 2007 [Member] | Conforming Mortgages Range One [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	0	0
Loans Securitized 2007 [Member] | Conforming Mortgages Range Two [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	0	0
Loans Securitized 2007 [Member] | Conforming Mortgages Range Three [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	0	0
Loans Securitized 2007 [Member] | Non-conforming Mortgages [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	7,042	7,309
Loans Securitized 2007 [Member] | Non Conforming Mortgages Range One [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	398	405
Loans Securitized 2007 [Member] | Non Conforming Mortgages Range Two [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	4,151	4,378
Loans Securitized 2007 [Member] | Non Conforming Mortgages Range Three [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	2,493	2,526
Loans Securitized 2007 [Member] | Other Loans [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	0	0
Loans Unsecuritized [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	30,597	28,041
Loans Unsecuritized [Member] | Chattel Loans [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	23,040	20,605
Loans Unsecuritized [Member] | Chattel Loans Range One [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	323	330
Loans Unsecuritized [Member] | Chattel Loans Range Two [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	10,351	8,587
Loans Unsecuritized [Member] | Chattel Loans Range Three [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	11,958	11,285
Loans Unsecuritized [Member] | Chattel Loans Range Four [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	408	403
Loans Unsecuritized [Member] | Conforming Mortgages [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	2,801	2,608
Loans Unsecuritized [Member] | Conforming Mortgages Range One [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	155	156
Loans Unsecuritized [Member] | Conforming Mortgages Range Two [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	2,232	2,137
Loans Unsecuritized [Member] | Conforming Mortgages Range Three [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	298	199
Loans Unsecuritized [Member] | Conforming Mortgages Range Four [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	116
Loans Unsecuritized [Member] | Non-conforming Mortgages [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	4,746	4,817
Loans Unsecuritized [Member] | Non Conforming Mortgages Range One [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	1,030	1,047
Loans Unsecuritized [Member] | Non Conforming Mortgages Range Two [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	3,061	3,093
Loans Unsecuritized [Member] | Non Conforming Mortgages Range Three [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	377	395
Loans Unsecuritized [Member] | Non Conforming Mortgages Range Four [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	278	282
Loans Unsecuritized [Member] | Other Loans [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	10	11
Construction Advances [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	12,259	11,088
Construction Advances [Member] | Chattel Loans [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	0	0
Construction Advances [Member] | Chattel Loans Range One [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	0	0
Construction Advances [Member] | Chattel Loans Range Two [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	0	0
Construction Advances [Member] | Chattel Loans Range Three [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	0	0
Construction Advances [Member] | Conforming Mortgages [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	12,259	11,088
Construction Advances [Member] | Conforming Mortgages Range One [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	0	141
Construction Advances [Member] | Conforming Mortgages Range Two [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	7,950	6,428
Construction Advances [Member] | Conforming Mortgages Range Three [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	4,309	4,519
Construction Advances [Member] | Non-conforming Mortgages [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	0	0
Construction Advances [Member] | Non Conforming Mortgages Range One [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	0	0
Construction Advances [Member] | Non Conforming Mortgages Range Two [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	0	0
Construction Advances [Member] | Non Conforming Mortgages Range Three [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	0	0
Construction Advances [Member] | Other Loans [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	0	0
Consumer Loans Held For Sale [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	14,535	12,830
Consumer Loans Held For Sale [Member] | Chattel Loans [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	504	400
Consumer Loans Held For Sale [Member] | Chattel Loans Range One [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	0	0
Consumer Loans Held For Sale [Member] | Chattel Loans Range Two [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	0	245
Consumer Loans Held For Sale [Member] | Chattel Loans Range Three [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	504	155
Consumer Loans Held For Sale [Member] | Conforming Mortgages [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	14,031	12,430
Consumer Loans Held For Sale [Member] | Conforming Mortgages Range One [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	189	179
Consumer Loans Held For Sale [Member] | Conforming Mortgages Range Two [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	8,350	6,479
Consumer Loans Held For Sale [Member] | Conforming Mortgages Range Three [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	5,492	5,663
Consumer Loans Held For Sale [Member] | Conforming Mortgages Range Four [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	0
Consumer Loans Held For Sale [Member] | Non-conforming Mortgages [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	0	0
Consumer Loans Held For Sale [Member] | Non Conforming Mortgages Range One [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	0	0
Consumer Loans Held For Sale [Member] | Non Conforming Mortgages Range Two [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	0	0
Consumer Loans Held For Sale [Member] | Non Conforming Mortgages Range Three [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	0	0
Consumer Loans Held For Sale [Member] | Other Loans [Member]
Gross Consumer Loans Receivable by Portfolio Segment and Credit Risk Score
Consumer loans receivable	$ 0	$ 0

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Commercial Loans Receivables and Allowance for Loan Loss (Commercial Loans Receivables, Net) (Details) - USD ($)	Jun. 30, 2018	Mar. 31, 2018	Jul. 01, 2017	Apr. 01, 2017
Commercial Loans Receivable
Allowance for loan loss	$ (113,000)	$ (42,000)	$ (222,000)	$ (210,000)
Financing Receivable, Net	30,633,000	16,601,000
Direct Commercial Loans Receivables [Member]
Commercial Loans Receivable
Financing Receivable, Gross	30,414,000	16,368,000
Allowance for loan loss	(113,000)	(42,000)
Participation Commercial Loans Receivables [Member]
Commercial Loans Receivable
Financing Receivable, Gross	332,000	275,000
Allowance for loan loss	$ 0	$ 0

XML

Commercial Loans Receivables and Allowance for Loan Loss (Changes in the Estimated Allowance for Loan Loss) (Details) - USD ($)	3 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Receivables [Abstract]
Allowance for Loan and Lease Losses, Period Increase (Decrease)	$ 71,000	$ 12,000
Changes in the Allowance for Loan Losses on Commercial Loans Receivables
Balance at beginning of period	42,000	210,000
Loans charged off, net of recoveries	0	0
Balance at end of period	$ 113,000	$ 222,000

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Commercial Loans Receivables and Allowance for Loan Loss (Finance Receivables by Evaluation Methodology) (Details) - USD ($)	Jun. 30, 2018	Mar. 31, 2018	Jul. 01, 2017	Apr. 01, 2017
Allowance for loan losses and commercial loans receivables by class individually and collectively evaluated for impairment
Allowance for loan loss	$ (113,000)	$ (42,000)	$ (222,000)	$ (210,000)
Direct Commercial Loans [Member]
Allowance for loan losses and commercial loans receivables by class individually and collectively evaluated for impairment
Financing Receivable, Collectively Evaluated for Impairment	11,349,000	4,193,000
Financing Receivable, Individually Evaluated for Impairment	19,065,000	12,175,000
Financing Receivable, Gross	30,414,000	16,368,000
Allowance for loan loss: collectively evaluated for impairment	(113,000)	(42,000)
Allowance for loan loss: individually evaluated for impairment	0	0
Allowance for loan loss	(113,000)	(42,000)
Participation Commercial Loans [Member]
Allowance for loan losses and commercial loans receivables by class individually and collectively evaluated for impairment
Financing Receivable, Collectively Evaluated for Impairment	0	0
Financing Receivable, Individually Evaluated for Impairment	332,000	275,000
Financing Receivable, Gross	332,000	275,000
Allowance for loan loss: collectively evaluated for impairment	0	0
Allowance for loan loss: individually evaluated for impairment	0	0
Allowance for loan loss	$ 0	$ 0

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Commercial Loans Receivables and Allowance for Loan Loss (Commercial Loans Receivables by Class and Credit Quality Indicator) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Mar. 31, 2018
Financing Receivable Recorded Investment [Line Items]
Weighted average contractual interest rate, commercial	5.50%	4.60%
Weighted average months to maturity, commercial	5 months	6 months
Direct Commercial Loans [Member]
Risk profile based on payment activity
Financing Receivable, Gross	$ 30,414	$ 16,368
Direct Commercial Loans [Member] | Performing [Member]
Risk profile based on payment activity
Financing Receivable, Gross	30,414	16,368
Direct Commercial Loans [Member] | Watch list [Member]
Risk profile based on payment activity
Financing Receivable, Gross	0	0
Direct Commercial Loans [Member] | Nonperforming [Member]
Risk profile based on payment activity
Financing Receivable, Gross	0	0
Participation Commercial Loans [Member]
Risk profile based on payment activity
Financing Receivable, Gross	332	275
Participation Commercial Loans [Member] | Performing [Member]
Risk profile based on payment activity
Financing Receivable, Gross	332	275
Participation Commercial Loans [Member] | Watch list [Member]
Risk profile based on payment activity
Financing Receivable, Gross	0	0
Participation Commercial Loans [Member] | Nonperforming [Member]
Risk profile based on payment activity
Financing Receivable, Gross	$ 0	$ 0

XML

Commercial Loans Receivables and Allowance for Loan Loss (Concentrations of Commercial Loans Receivables) (Details)	Jun. 30, 2018	Mar. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial Loans Receivable Principal Balance Concentration	22.30%	37.40%
ARIZONA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial Loans Receivables Geographic Concentration Percentage	16.00%	16.70%
TEXAS
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial Loans Receivables Geographic Concentration Percentage	10.60%	9.00%
CALIFORNIA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial Loans Receivables Geographic Concentration Percentage	13.40%	14.40%
OREGON
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial Loans Receivables Geographic Concentration Percentage	11.10%	14.70%

XML

Commercial Loans Receivables and Allowance for Loan Loss (Narrative) (Details) - USD ($)	3 Months Ended
	Jun. 30, 2018	Mar. 31, 2018	Jul. 01, 2017	Apr. 01, 2017
Receivables [Abstract]
Allowance for loan loss	$ 113,000	$ 42,000	$ 222,000	$ 210,000
Due days for loans accounted for on a non-accrual basis and accruing loans with principal payments past	90 days or more
Due days for loans on nonaccrual status when interest is past due and remains unpaid	90 days or more
Percentage concentration of commercial loans receivables	10.00%	10.00%

XML

Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018
Property, plant and equipment
Property, plant and equipment, at cost	$ 89,378	$ 87,768
Accumulated depreciation	(25,373)	(24,413)
Property, plant and equipment, net	64,005	63,355
Land [Member]
Property, plant and equipment
Property, plant and equipment, at cost	24,001	24,001
Buildings and improvements [Member]
Property, plant and equipment
Property, plant and equipment, at cost	39,963	39,613
Machinery and equipment [Member]
Property, plant and equipment
Property, plant and equipment, at cost	$ 25,414	$ 24,154

XML

Property, Plant and Equipment (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Property, Plant and Equipment [Line Items]
Depreciation	$ 1.0	$ 0.9

XML

Capital Lease Capital Lease Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018
Capital Leased Assets [Line Items]
Capital Leased Assets, Gross	$ 1,749	$ 1,749
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation	(44)	(35)
Capital Leases, Balance Sheet, Assets by Major Class, Net	1,705	1,714
Land [Member]
Capital Leased Assets [Line Items]
Capital Leased Assets, Gross	699	699
Building and Building Improvements [Member]
Capital Leased Assets [Line Items]
Capital Leased Assets, Gross	$ 1,050	$ 1,050

XML

Capital Lease Capital Lease Obligation (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018
Capital Lease Obligation [Abstract]
Capital Leases, Future Minimum Payments, Remainder of Fiscal Year	$ 103
Capital Leases, Future Minimum Payments Due in Two Years	766
Capital Leases, Future Minimum Payments Due in Three Years	73
Capital Leases, Future Minimum Payments Due in Four Years	73
Capital Leases, Future Minimum Payments Due in Five Years	73
Capital Leases, Future Minimum Payments Due Thereafter	196
Capital Leases, Future Minimum Payments Due	1,284
Capital Leases, Future Minimum Payments, Interest Included in Payments	(148)
Capital Lease Obligations	$ 1,136	$ 1,155

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Goodwill and Other Intangibles (Summary of Goodwill and Other Intangibles) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018
Indefinite lived:
Gross Carrying Amount	$ 81,220	$ 81,220
Net Carrying Amount	81,220	81,220
Finite lived:
Accumulated Amortization	(6,768)	(6,684)
Gross Carrying Amount	89,704	89,704
Net Carrying Amount	82,936	83,020
Customer relationships [Member]
Finite lived:
Gross Carrying Amount	7,100	7,100
Accumulated Amortization	(5,809)	(5,756)
Net Carrying Amount	1,291	1,344
Other Intangible Assets [Member]
Finite lived:
Gross Carrying Amount	1,384	1,384
Accumulated Amortization	(959)	(928)
Net Carrying Amount	425	456
Goodwill [Member]
Acquired Finite and Indefinite Lived Intangible Assets [Line Items]
Goodwill	72,920	72,920
Trademarks and trade names [Member]
Acquired Finite and Indefinite Lived Intangible Assets [Line Items]
Indefinite lived intangible assets including goodwill.	7,200	7,200
State insurance licenses [Member]
Acquired Finite and Indefinite Lived Intangible Assets [Line Items]
Indefinite lived intangible assets including goodwill.	$ 1,100	$ 1,100

XML

Goodwill and Other Intangibles (Narrative) (Details) - USD ($)	3 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Goodwill and Other Intangibles (Textual) [Abstract]
Amortization expense on intangible assets	$ 84,000	$ 92,000

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Accrued Liabilities (Details) - USD ($)	Jun. 30, 2018	Mar. 31, 2018
Accrued liabilities
Customer deposits	$ 23,774,000	$ 21,294,000
Salaries, wages and benefits	20,055,000	24,416,000
Unearned insurance premiums	18,216,000	17,432,000
Estimated warranties	16,670,000	16,638,000
Accrued volume rebates	9,044,000	7,778,000
Insurance loss reserves	6,472,000	6,157,000
Company repurchase option on certain loans sold	5,264,000	5,637,000
Accrued insurance	4,543,000	5,320,000
Accrued taxes	2,368,000	1,986,000
Reserve for repurchase commitments	2,315,000	2,207,000
Capital lease obligation	1,136,000	1,155,000
Other	16,917,000	16,480,000
Total accrued liabilities	$ 126,774,000	$ 126,500,000

XML

Warranties (Activity for Estimated Warranty Liability) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Product Warranties Disclosures [Abstract]
Product Warranty Accrual, Additions from Business Acquisition	$ 0	$ 838
Accrual for estimated warranties
Balance at beginning of period	16,638	15,479
Charged to costs and expenses	6,229	5,223
Payments and deductions	(6,197)	(5,224)
Balance at end of period	$ 16,670	$ 16,316

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Debt Obligations (Summary of Debt Obligations) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018
Debt Obligations
Securitized financing 2005-1	$ 19,732	$ 20,524
Securitized financing 2007-1	21,797	22,552
Other Secured Financings	5,009	4,966
Long-term Line of Credit	11,583	11,770
Total debt obligations	$ 58,121	$ 59,812

XML

Debt Obligations (Summarizes Securitized Financings) (Details) - USD ($) $ in Thousands		3 Months Ended
		Jun. 30, 2018	Mar. 31, 2018	Jul. 01, 2017	Apr. 01, 2017
Line of Credit Facility [Line Items]
Line of Credit Facility, Interest Rate During Period		4.90%
Line of Credit Facility, Remaining Borrowing Capacity		$ 5,000
Maximum Advance under Secured Credit Facility		80.00%
Line of Credit Facility, Frequency of Payment and Payment Terms		20 or 25 year amortization period with a balloon payment due upon maturity
Acquired Securitized Financings
Securitized financings - contractual amount		$ 44,226	$ 46,591
Purchase Discount
Accretable yield		(2,697)	(3,515)	$ (6,666)	$ (7,636)
Non-accretable difference	[1]	0	0
Total securitized financings, net		$ 41,529	$ 43,076

[1] There is no non-accretable difference, as the contractual payments on acquired securitized financing are determined by the cash collections from the underlying loans.

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Debt Obligations (Changes in Accretable Yield on Securitized Financings) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Accretable Yield Movement on Acquired Securitized Financings
Balance at the beginning of the period	$ 3,515	$ 7,636
Accretion	(803)	(871)
Adjustment to cash flows	(15)	(99)
Balance at the end of the period	$ 2,697	$ 6,666

XML

Debt Obligations (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2018	Mar. 22, 2007	Jul. 12, 2005
Class A-4 [Member]
Debt Instrument [Line Items]
Amount of bonds		$ 25.1	$ 27.4
Coupon rate		5.80%	5.20%
Warehouse Agreement Borrowings [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Interest Rate Description	Amounts drawn will bear interest at 5.15%. Once converted, the initial annual interest rate of 5.15% will adjust every 5 years beginning in 2024 to Prime plus 0.40%. The per annum interest rate will never be less than 5.00% or greater than 6.00%.

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Reinsurance (Details) - USD ($)
$ in Thousands

3 Months Ended

Jun. 30, 2018

Jul. 01, 2017

Effects of Reinsurance [Line Items]

SEC Schedule, 12-17, Insurance Companies, Reinsurance [Text Block]

The effects of reinsurance on premiums written and earned are as follows (in thousands):

	Three Months Ended
	June 30, 2018						July 1, 2017
	Written			Earned			Written			Earned
Direct premiums	$	4,541		$	4,211		$	4,366		$	4,150
Assumed premiums—nonaffiliate	6,934			6,234			6,260			6,267
Ceded premiums—nonaffiliate	(2,847		)	(2,847		)	(2,948		)	(2,948		)
Net premiums	$	8,628		$	7,598		$	7,678		$	7,469

Reinsurance Effect on Premiums Written and Earned

Direct premiums Written

$ 4,541

$ 4,366

Assumed premiums - nonaffiliate Written

6,934

6,260

Ceded premiums - nonaffiliate Written

(2,847)

(2,948)

Net premiums Written

8,628

7,678

Direct premiums Earned

4,211

4,150

Assumed premiums - nonaffiliate Earned

6,234

6,267

Ceded premiums - nonaffiliate Earned

(2,847)

(2,948)

Net premiums Earned

$ 7,598

$ 7,469

XML

Reinsurance (Details Textual)	3 Months Ended
	Jun. 30, 2018 USD ($)
Insurance [Abstract]
Insurance policies maximum coverage per claim	$ 300,000
Insurance policies coverage per claim ceded to reinsurers	175,000
Insurance policy risk of loss maintained per claim	125,000
Catastrophic losses recoverable in excess of amount	1,500,000
Aggregate catastrophic losses recoverable in excess of amount	$ 43,500,000

XML

Commitments and Contingencies (Details Textual) - USD ($)	3 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Mar. 31, 2018
Loss Contingencies [Line Items]
Repurchase agreements period, minimum	18 months
Repurchase agreements period, maximum	36 months
Repurchase agreements maximum amount contingently liable	$ 71,200,000
Reserve for repurchase commitments	(2,315,000)		$ (2,207,000)
Reserve for contingent repurchase and indemnification obligations	$ 1,000,000		$ 995,000
IRLC Loan Commitment Range Minimum	30 days
IRLC Loan Commitment Range Maximum	270 days
Letter of Credit [Member]
Loss Contingencies [Line Items]
Letter of Credit	$ 11,000,000
CountryPlace [Member]
Loss Contingencies [Line Items]
IRLCs recorded at fair value	17,000,000
Recognized gain (loss) on outstanding IRLCs	20,000	$ (25,000)
Forward Commitments Recorded at Fair Value	50,100,000
Recognized gain (loss) on the forward sales and whole loan commitments	$ (175,000)	$ 155,000

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Commitments and Contingencies (Loan Contracts with Off-Balance Sheet Commitments) (Details) - USD ($)	3 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Mar. 31, 2018
Loan Contracts with Off-Balance Sheet Commitments
Construction loan contract amount	$ 29,961,000		$ 27,093,000
Cumulative advances	(12,259,000)		(11,088,000)
Remaining construction contingent commitment	17,702,000		$ 16,005,000
CountryPlace Commitment [Member]
Loss Contingencies [Line Items]
Recognized gain (loss) on the forward sales and whole loan commitments	(175,000)	$ 155,000
Gain (Loss) on Derivative Instruments, Net, Pretax	$ 20,000	$ (25,000)

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Stockholders' Equity (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance, common stock, shares	9,044,858
Ending balance, common stock, shares	9,061,306
Beginning balance	$ 457,106
Stock option exercises, amount	(2,168)
Stock-based compensation	599
Net income	19,691	$ 11,753
Other Comprehensive Income (Loss)	5
Ending balance	475,687
Pre-tax unrealized gain (loss) on available-for-sale investments	$ 6	$ (833)
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance, common stock, shares	9,044,858
Stock option exercises, shares	16,448
Ending balance, common stock, shares	9,061,306
Beginning balance	$ 90
Stock option exercises, amount	1
Stock-based compensation	0
Net income	0
Other Comprehensive Income (Loss)	0
Ending balance	91
Additional paid-in capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	246,197
Stock option exercises, amount	(2,169)
Stock-based compensation	599
Net income	0
Other Comprehensive Income (Loss)	0
Ending balance	244,627
Retained earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	209,381
Stock option exercises, amount	0
Stock-based compensation	0
Net income	19,691
Other Comprehensive Income (Loss)	0
Ending balance	231,147
Accumulated other comprehensive income
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	1,438
Stock option exercises, amount	0
Stock-based compensation	0
Net income	0
Other Comprehensive Income (Loss)	5
Ending balance	(178)
Accounting Standards Update 2016-01 [Member]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets	1,621
Accounting Standards Update 2016-01 [Member] | Reclassification out of Accumulated Other Comprehensive Income [Domain]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets	(1,621)
Difference between Revenue Guidance in Effect before and after Topic 606 [Member]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets	$ 454

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Stock-Based Compensation (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of Cavco common stock authorized for grant under stock incentive plans	1,650,000
Number of shares of Cavco common stock available for grant under stock incentive plans	356,272
Stock option exercise price as a percent of fair value of common stock	100.00%
Stock option expiration period	7 years
Typical vesting period of stock options and restricted stock awards	5 years
Stock-based compensation cost charged against income	$ 0.6	$ 0.5
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to stock options	$ 3.0
Weighted-average period over stock options expected to be recognized	2 years 10 months 14 days

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Stock-Based Compensation (Stock Option Activity) (Details) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 0.6	$ 0.5
Stock Options [Member]
Stock Option Activity, Number of Shares [Roll Forward]
Beginning balance, shares outstanding	418,205
Granted	4,000
Exercised	(33,683)
Canceled or forfeited	0
Ending balance, shares outstanding	388,522
Shares exercisable	171,038

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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Earnings Per Share Computation
Net income attributable to Cavco common stockholders	$ 19,691	$ 11,753
Weighted average shares outstanding:
Basic (in shares)	9,048,579	9,006,999
Common stock equivalents - treasury stock method (in shares)	218,469	155,492
Diluted (in shares)	9,267,048	9,162,491
Net income per share attributable to Cavco common stockholders:
Basic (usd per share)	$ 2.18	$ 1.30
Diluted (usd per share)	$ 2.12	$ 1.28
Anti-dilutive stock equivalents excluded from computation	1,268	10,973

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Fair Value Measurements (Book Value and Estimated Fair Value) (Details) - USD ($) $ in Thousands		Jun. 30, 2018	Mar. 31, 2018
Reported Value Measurement [Member]
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Equity Method Investments, Fair Value Disclosure	[1]	$ 18,888	$ 18,853
Notes Receivable, Fair Value Disclosure	[2]	98,157	94,951
Interest Rate Lock Commitments Fair Value Disclosure	[3]	(8)	(12)
Forward Commitments Fair Value Disclosure	[3]	149	26
Consumer Loans Receivable	[4]	30,633	16,601
Securitized Financings	[5]	58,121	59,812
Servicing Asset at Fair Value, Amount	[6]	1,443	1,410
Reported Value Measurement [Member] | Available-for-sale Securities [Member]
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Investments, Fair Value Disclosure	[7]	15,523	16,181
Reported Value Measurement [Member] | Equity Securities [Member]
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Investments, Fair Value Disclosure	[7]	12,736	10,405
Estimate of Fair Value Measurement [Member]
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Equity Method Investments, Fair Value Disclosure	[1]	18,888	18,853
Notes Receivable, Fair Value Disclosure	[2]	115,032	113,277
Interest Rate Lock Commitments Fair Value Disclosure	[3]	(8)	(12)
Forward Commitments Fair Value Disclosure	[3]	149	26
Consumer Loans Receivable	[4]	31,301	16,972
Securitized Financings	[5]	63,210	64,509
Servicing Asset at Fair Value, Amount	[6]	1,443	1,410
Estimate of Fair Value Measurement [Member] | Available-for-sale Securities [Member]
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Investments, Fair Value Disclosure	[7]	15,523	16,181
Estimate of Fair Value Measurement [Member] | Equity Securities [Member]
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Investments, Fair Value Disclosure	[7]	$ 12,736	$ 10,405

[1] The fair value approximates book value based on the non-marketable nature of the investments.

[2] Includes consumer loans receivable held for investment, held for sale and construction advances. The fair value of the loans held for investment is based on the discounted value of the remaining principal and interest cash flows. The fair value of the loans held for sale are estimated based on recent GSE mortgage-backed bond prices. The fair value of the construction advances approximates book value and the sales price of these loans.

[3] The fair values are based on changes in GSE mortgage-backed bond prices and, additionally for IRLCs, pull through rates.

[4] The fair value is estimated using market interest rates of comparable loans.

[5] The fair value is estimated using recent public transactions of similar asset-backed securities.

[6] The fair value of the mortgage servicing rights is based on the present value of expected net cash flows related to servicing these loans.

[7] the fair value is based on quoted market prices. The fair value of Level 2 securities is based on other inputs, as further described below.

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Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands		Jun. 30, 2018	Mar. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Servicing Asset at Fair Value, Amount		$ 1,443	$ 1,410
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Loans Held for Investment Fair Value Disclosure		87,726
Construction Loan		12,259
Consumer Loans Receivable		31,301
Recurring [Member] | US Treasury and Government [Member]
Summary of Assets Measured at Fair Value on a Recurring Basis
Assets fair value	[1]	292
Recurring [Member] | Mortgage-backed securities [Member]
Summary of Assets Measured at Fair Value on a Recurring Basis
Assets fair value	[1]	7,152
Recurring [Member] | Securities issued by states and political subdivisions [Member]
Summary of Assets Measured at Fair Value on a Recurring Basis
Assets fair value	[1]	6,029
Recurring [Member] | Corporate debt securities [Member]
Summary of Assets Measured at Fair Value on a Recurring Basis
Assets fair value	[1]	2,050
Recurring [Member] | Marketable equity securities [Member]
Summary of Assets Measured at Fair Value on a Recurring Basis
Assets fair value	[2]	12,736
Recurring [Member] | Interest rate lock commitments [Member]
Summary of Assets Measured at Fair Value on a Recurring Basis
Assets fair value	[3]	8
Recurring [Member] | Forward loan sale commitments [Member]
Summary of Assets Measured at Fair Value on a Recurring Basis
Assets fair value	[3]	149
Recurring [Member] | Mortgage servicing rights [Member]
Summary of Assets Measured at Fair Value on a Recurring Basis
Assets fair value	[4]	1,443
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Loans Held for Investment Fair Value Disclosure		0
Construction Loan		0
Consumer Loans Receivable		0
Fair Value, Inputs, Level 1 [Member] | Recurring [Member] | US Treasury and Government [Member]
Summary of Assets Measured at Fair Value on a Recurring Basis
Assets fair value	[1]	0
Fair Value, Inputs, Level 1 [Member] | Recurring [Member] | Mortgage-backed securities [Member]
Summary of Assets Measured at Fair Value on a Recurring Basis
Assets fair value	[1]	0
Fair Value, Inputs, Level 1 [Member] | Recurring [Member] | Securities issued by states and political subdivisions [Member]
Summary of Assets Measured at Fair Value on a Recurring Basis
Assets fair value	[1]	0
Fair Value, Inputs, Level 1 [Member] | Recurring [Member] | Corporate debt securities [Member]
Summary of Assets Measured at Fair Value on a Recurring Basis
Assets fair value	[1]	0
Fair Value, Inputs, Level 1 [Member] | Recurring [Member] | Marketable equity securities [Member]
Summary of Assets Measured at Fair Value on a Recurring Basis
Assets fair value	[2]	12,736
Fair Value, Inputs, Level 1 [Member] | Recurring [Member] | Interest rate lock commitments [Member]
Summary of Assets Measured at Fair Value on a Recurring Basis
Assets fair value	[3]	0
Fair Value, Inputs, Level 1 [Member] | Recurring [Member] | Forward loan sale commitments [Member]
Summary of Assets Measured at Fair Value on a Recurring Basis
Assets fair value	[3]	0
Fair Value, Inputs, Level 1 [Member] | Recurring [Member] | Mortgage servicing rights [Member]
Summary of Assets Measured at Fair Value on a Recurring Basis
Assets fair value	[4]	0
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Loans Held for Investment Fair Value Disclosure		0
Construction Loan		0
Consumer Loans Receivable		0
Fair Value, Inputs, Level 2 [Member] | Recurring [Member] | US Treasury and Government [Member]
Summary of Assets Measured at Fair Value on a Recurring Basis
Assets fair value	[1]	292
Fair Value, Inputs, Level 2 [Member] | Recurring [Member] | Mortgage-backed securities [Member]
Summary of Assets Measured at Fair Value on a Recurring Basis
Assets fair value	[1]	7,152
Fair Value, Inputs, Level 2 [Member] | Recurring [Member] | Securities issued by states and political subdivisions [Member]
Summary of Assets Measured at Fair Value on a Recurring Basis
Assets fair value	[1]	6,029
Fair Value, Inputs, Level 2 [Member] | Recurring [Member] | Corporate debt securities [Member]
Summary of Assets Measured at Fair Value on a Recurring Basis
Assets fair value	[1]	2,050
Fair Value, Inputs, Level 2 [Member] | Recurring [Member] | Marketable equity securities [Member]
Summary of Assets Measured at Fair Value on a Recurring Basis
Assets fair value	[2]	0
Fair Value, Inputs, Level 2 [Member] | Recurring [Member] | Interest rate lock commitments [Member]
Summary of Assets Measured at Fair Value on a Recurring Basis
Assets fair value	[3]	0
Fair Value, Inputs, Level 2 [Member] | Recurring [Member] | Forward loan sale commitments [Member]
Summary of Assets Measured at Fair Value on a Recurring Basis
Assets fair value	[3]	0
Fair Value, Inputs, Level 2 [Member] | Recurring [Member] | Mortgage servicing rights [Member]
Summary of Assets Measured at Fair Value on a Recurring Basis
Assets fair value	[4]	0
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Loans Held for Investment Fair Value Disclosure		87,726
Construction Loan		12,259
Consumer Loans Receivable		31,301
Fair Value, Inputs, Level 3 [Member] | Recurring [Member] | US Treasury and Government [Member]
Summary of Assets Measured at Fair Value on a Recurring Basis
Assets fair value	[1]	0
Fair Value, Inputs, Level 3 [Member] | Recurring [Member] | Mortgage-backed securities [Member]
Summary of Assets Measured at Fair Value on a Recurring Basis
Assets fair value	[1]	0
Fair Value, Inputs, Level 3 [Member] | Recurring [Member] | Securities issued by states and political subdivisions [Member]
Summary of Assets Measured at Fair Value on a Recurring Basis
Assets fair value	[1]	0
Fair Value, Inputs, Level 3 [Member] | Recurring [Member] | Corporate debt securities [Member]
Summary of Assets Measured at Fair Value on a Recurring Basis
Assets fair value	[1]	0
Fair Value, Inputs, Level 3 [Member] | Recurring [Member] | Marketable equity securities [Member]
Summary of Assets Measured at Fair Value on a Recurring Basis
Assets fair value	[2]	0
Fair Value, Inputs, Level 3 [Member] | Recurring [Member] | Interest rate lock commitments [Member]
Summary of Assets Measured at Fair Value on a Recurring Basis
Assets fair value	[3]	8
Fair Value, Inputs, Level 3 [Member] | Recurring [Member] | Forward loan sale commitments [Member]
Summary of Assets Measured at Fair Value on a Recurring Basis
Assets fair value	[3]	149
Fair Value, Inputs, Level 3 [Member] | Recurring [Member] | Mortgage servicing rights [Member]
Summary of Assets Measured at Fair Value on a Recurring Basis
Assets fair value	[4]	$ 1,443

[1] Unrealized gains or losses on investments are recorded in accumulated other comprehensive income (loss) at each measurement date

[2] Unrealized gains or losses on investments are recorded in earnings at each measurement date.

[3] Gains or losses on derivatives are recognized in current period earnings through cost of sales.

[4] Changes in the fair value of mortgage servicing rights are recognized in the current period earnings through net revenue.

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Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018
Summary of Assets and Liabilities Measured at Fair Value for Disclosure
Equity Method Investments	$ 18,888	$ 18,853
Non Recurring [Member]
Summary of Assets and Liabilities Measured at Fair Value for Disclosure
Loans held for investment	87,726
Loans held for sale	15,047
Construction Loan	12,259
Consumer Loans Receivable	31,301
Securitized Financings	63,210
Level 1 [Member] | Non Recurring [Member]
Summary of Assets and Liabilities Measured at Fair Value for Disclosure
Loans held for investment	0
Loans held for sale	0
Construction Loan	0
Consumer Loans Receivable	0
Securitized Financings	0
Equity Method Investments	0
Level 2 [Member] | Non Recurring [Member]
Summary of Assets and Liabilities Measured at Fair Value for Disclosure
Loans held for investment	0
Loans held for sale	0
Construction Loan	0
Consumer Loans Receivable	0
Securitized Financings	63,210
Equity Method Investments	0
Level 3 [Member] | Non Recurring [Member]
Summary of Assets and Liabilities Measured at Fair Value for Disclosure
Loans held for investment	87,726
Loans held for sale	15,047
Construction Loan	12,259
Consumer Loans Receivable	31,301
Securitized Financings	0
Equity Method Investments	$ 18,888

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Fair Value Measurements (Assumptions for Mortgage Servicing Rights) (Details) $ in Thousands	Jun. 30, 2018 USD ($) Loans	Mar. 31, 2018 USD ($) Loans
Fair Value Disclosures [Abstract]
Number of loans serviced with MSRs | Loans	4,399	4,346
Weighted average servicing fee (basis points)	0.3205%	0.3203%
Capitalized servicing multiple	85.24%	84.76%
Capitalized servicing rate (basis points)	0.2732%	0.2715%
Serviced portfolio with MSRs	$ 528,206	$ 519,167
Mortgage servicing rights	$ 1,443	$ 1,410

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Fair Value Measurements (Narrative) (Details)	3 Months Ended
	Jun. 30, 2018 USD ($)
Fair Value Measurements (Textual) [Abstract]
Fair Value, Assets, Level 1, Level 2, or Level 3 Transfers, Amount	$ 0
Impairment charges on assets held for sale or held and used	$ 0
Typical period a loan is held for sale	45 days

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Business Segment Information (Details) $ in Thousands	3 Months Ended
	Jun. 30, 2018 USD ($) Segment	Jul. 01, 2017 USD ($)
Business Segment Information
Number of operating segments | Segment	2
Net revenue	$ 246,403	$ 206,816
Income before income taxes	24,136	15,651
Factory-built housing
Business Segment Information
Net revenue	232,762	192,882
Income before income taxes	21,608	13,170
Financial services
Business Segment Information
Net revenue	13,641	13,934
Income before income taxes	$ 2,528	$ 2,481