Senior Notes, Secured, and Subordinated Indebtedness (Tables)

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Schedule of Senior Notes, Secured, and Subordinated Indebtedness

The Company's senior notes, secured, and subordinated indebtedness consists of the following (in thousands):

	December 31,
	2015		2014
Notes payable
Revolving line of credit	$	65,000	$	—
Construction notes payable	110,181		38,688
Seller financing	—		547
Total notes payable	$	175,181	$	39,235
Subordinated amortizing notes	14,066		20,717
Senior notes
5 3/4% Senior Notes due April 15, 2019	148,295		147,766
8  1/2% Senior Notes due November 15, 2020	422,896		422,889
7% Senior Notes due August 15, 2022	345,338		294,791
Total Debt	$	1,105,776	$	925,398

Schedule of Maturities of Notes Payable, Senior Unsecured Credit Facility, Subordinated Amortizing Notes and Senior Notes

The maturities of the Company's Notes payable, Subordinated amortizing notes, 5 ³/₄% Senior Notes, 8 ¹/₂% Senior Notes, and 7% Senior Notes are as follows as of December 31, 2015 (in thousands):

Year Ended December 31,
2016	$	15,378
2017	160,607
2018	13,262
2019	150,000
2020	425,000
Thereafter	350,000
	$	1,114,247

The issuance date, total availability under each facility outstanding, maturity date and interest rate are listed in the table below as of December 31, 2015 (in millions):

Issuance Date	Facility Size		Outstanding		Maturity	Current Rate
November, 2015	$	42.5	$	15.0	November, 2017	4.50	%	(1)
August, 2015	14.2		2.8		August, 2017	4.50	%	(1)
August, 2015	37.5		13.2		August, 2017	4.50	%	(1)
July, 2015	22.5		13.3		July, 2018	4.00	%	(2)
April, 2015	18.5		10.6		October, 2017	4.00	%	(2)
November, 2014	24.0		19.1		November, 2017	4.00	%	(2)
November, 2014	22.0		20.8		November, 2017	4.00	%	(2)
March, 2014	26.0		15.0		October, 2016	3.42	%	(1)
December, 2013	18.6		0.4		January, 2016	4.50	%	(1)
	$	225.8	$	110.2

(1) Loan bears interest at the Company's option of either LIBOR +3.0% or the prime rate +1.0%.

Summary of Senior Notes Redemption Prices Percentage

On or after April 15, 2016, California Lyon may redeem all or a portion of the 5.75% Notes upon not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed as percentages of the principal amount) set forth below plus accrued and unpaid interest to the applicable redemption date, if redeemed during the period beginning on each of the dates indicated below:

Year	Percentage
April 15, 2016	104.313	%
October 15, 2016	102.875	%
April 15, 2017	101.438	%
April 15, 2018 and thereafter	100.000	%

On or after November 15, 2016, California Lyon may redeem all or a portion of the 8.5% Notes upon not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed as percentages of the principal amount) set forth below plus accrued and unpaid interest to the applicable redemption date, if redeemed during the 12-month period beginning on November 15 of the years indicated below:

Year	Percentage
2016	104.250	%
2017	102.125	%
2018 and thereafter	100.000	%

On or after August 15, 2017, California Lyon may redeem all or a portion of the 7.00% Notes upon not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed as percentages of the principal amount) set forth below plus accrued and unpaid interest to the applicable redemption date, if redeemed during the period beginning on each of the dates indicated below:

Year	Percentage
August 15, 2017	103.500	%
August 15, 2018	101.750	%
August 15, 2019 and thereafter	100.000	%

Consolidating Balance Sheet

CONSOLIDATING BALANCE SHEET

December 31, 2015

(in thousands)

	Unconsolidated
	Delaware Lyon		California Lyon			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated Company
ASSETS
Cash and cash equivalents	$	—	$	44,331		$	2,724		$	3,148		$	—		$	50,203
Restricted cash	—		504			—			—			—			504
Receivables	—		8,986			937			4,915			—			14,838
Escrow proceeds receivable	—		2,020			1,021			—			—			3,041
Real estate inventories	—		922,990			589,762			162,354			—			1,675,106
Invest in unconsolidated joint ventures	—		5,263			150			—						5,413
Goodwill	—		14,209			52,693			—			—			66,902
Intangibles, net	—		—			6,700			—			—			6,700
Deferred income taxes, net	—		79,726			—			—			—			79,726
Other assets	—		18,981			1,737			299			—			21,017
Investments in subsidiaries	632,095		(34,522		)	(561,546		)	—			(36,027		)	—
Intercompany receivables	—		—			239,248			—			(239,248		)	—
Total assets	$	632,095	$	1,062,488		$	333,426		$	170,716		$	(275,275	)	$	1,923,450
LIABILITIES AND EQUITY
Accounts payable	$	—	$	45,065		$	27,807		$	3,009		$	—		$	75,881
Accrued expenses	—		62,167			8,059			98			—			70,324
Notes payable	—		80,915			—			94,266			—			175,181
Subordinated Amortizing Notes	—		14,066			—			—						14,066
5 3/4% Senior Notes	—		148,295			—			—						148,295
8 1/2% Senior Notes	—		422,896			—			—			—			422,896
7% Senior Notes	—		345,338			—			—						345,338
Intercompany payables	—		170,757			—			68,491			(239,248		)	—
Total liabilities	—		1,289,499			35,866			165,864			(239,248		)	1,251,981
Equity
William Lyon Homes stockholders’ equity	632,095		(227,011		)	297,560			(34,522		)	(36,027		)	632,095
Noncontrolling interests	—		—			—			39,374			—			39,374
Total liabilities and equity	$	632,095	$	1,062,488		$	333,426		$	170,716		$	(275,275	)	$	1,923,450

CONSOLIDATING BALANCE SHEET

December 31, 2014

(in thousands)

	Unconsolidated
	Delaware Lyon		California Lyon			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated Company
ASSETS
Cash and cash equivalents	$	—	$	48,462		$	573		$	3,736		$	—		$	52,771
Restricted cash	—		504			—			—			—			504
Receivables	—		16,783			878			3,589			—			21,250
Escrow proceeds receivable	—		613			2,302			—			—			2,915
Real estate inventories	—		755,748			554,170			94,721			—			1,404,639
Investment in unconsolidated joint ventures	—		2,350			150			—			—			2,500
Goodwill	—		14,209			46,678			—			—			60,887
Intangibles, net	—		957			6,700			—			—			7,657
Deferred income taxes, net	—		88,039			—			—			—			88,039
Other assets	—		16,178			2,026			358			—			18,562
Investments in subsidiaries	569,915		(35,961		)	(574,129		)	—			40,175			—
Intercompany receivables	—		—			232,895			—			(232,895		)	—
Total assets	$	569,915	$	907,882		$	272,243		$	102,404		$	(192,720	)	$	1,659,724
LIABILITIES AND EQUITY
Accounts payable	$	—	$	28,792		$	19,023		$	3,999		$	—		$	51,814
Accrued expenses	—		76,664			8,610			92			—			85,366
Notes payable	—		384			162			38,689			—			39,235
Subordinated Amortizing Notes	—		20,717			—			—						20,717
5 3/4% Senior Notes	—		147,766			—			—						147,766
8 1/2% Senior Notes	—		422,889			—			—			—			422,889
7% Senior Notes	—		294,791			—			—						294,791
Intercompany payables	—		164,541			—			68,354			(232,895		)	—
Total liabilities	—		1,156,544			27,795			111,134			(232,895		)	1,062,578
Equity
William Lyon Homes stockholders’ equity	569,915		(248,662		)	244,448			(35,961		)	40,175			569,915
Noncontrolling interests	—		—			—			27,231			—			27,231
Total liabilities and equity	$	569,915	$	907,882		$	272,243		$	102,404		$	(192,720	)	$	1,659,724

Consolidating Statement of Operations

CONSOLIDATING STATEMENT OF OPERATIONS

Year Ended December 31, 2015

(in thousands)

	Unconsolidated
	Delaware Lyon		California Lyon			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated Company
Operating revenue
Sales	$	—	$	462,490		$	568,774		$	50,164		$	—		$	1,081,428
Construction services	—		25,124			—			—			—			25,124
Management fees	—		(1,506		)	—			—			1,506			—
	—		486,108			568,774			50,164			1,506			1,106,552
Operating costs
Cost of sales	—		(360,522		)	(475,043		)	(43,653		)	(1,506		)	(880,724		)
Construction services	—		(21,181		)	—			—			—			(21,181		)
Sales and marketing	—		(26,626		)	(31,231		)	(3,682		)	—			(61,539		)
General and administrative	—		(47,385		)	(11,776		)	—			—			(59,161		)
Amortization of intangible assets	—		(957		)	—			—			—			(957		)
Other	—		(3,477		)	1,505			—			—			(1,972		)
	—		(460,148		)	(516,545		)	(47,335		)	(1,506		)	(1,025,534		)
Income (loss) from subsidiaries	57,336		(2,395		)	—			—			(54,941		)	—
Operating income	57,336		23,565			52,229			2,829			(54,941		)	81,018
Equity in income of unconsolidated joint ventures	—		1,912			1,327			—			—			3,239
Other income (expense), net	—		7,140			4,793			(9,123		)	—			2,810
Income (loss) before provision for income taxes	57,336		32,617			58,349			(6,294		)	(54,941		)	87,067
Provision for income taxes	—		(26,806		)	—			—			—			(26,806		)
Net income (loss)	57,336		5,811			58,349			(6,294		)	(54,941		)	60,261
Less: Net income attributable to noncontrolling interests	—		—			—			(2,925		)	—			(2,925		)
Net income (loss) available to common stockholders	$	57,336	$	5,811		$	58,349		$	(9,219	)	$	(54,941	)	$	57,336

CONSOLIDATING STATEMENT OF OPERATIONS

Year Ended December 31, 2014

(in thousands)

	Unconsolidated
	Delaware Lyon		California Lyon			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated Company
Operating revenue
Sales	$	—	$	524,990		$	236,245		$	97,716		$	—		$	858,951
Construction services	—		37,728			—			—			—			37,728
Management fees	—		(2,926		)	—			—			2,926			—
	—		559,792			236,245			97,716			2,926			896,679
Operating costs
Cost of sales	—		(400,712		)	(196,773		)	(78,649		)	(2,926		)	(679,060		)
Construction services	—		(30,700		)	—			—			—			(30,700		)
Sales and marketing	—		(27,418		)	(14,186		)	(4,299		)	—			(45,903		)
General and administrative	—		(47,353		)	(7,271		)	(2		)	—			(54,626		)
Transaction expenses	—		(5,832		)	—			—			—			(5,832		)
Amortization of intangible assets	—		(1,814		)	—			—			—			(1,814		)
Other	—		(3,685		)	825			(14		)	—			(2,874		)
	—		(517,514		)	(217,405		)	(82,964		)	(2,926		)	(820,809		)
Income from subsidiaries	44,625		11,575			—			—			(56,200		)	—
Operating income	44,625		53,853			18,840			14,752			(56,200		)	75,870
Income from unconsolidated joint ventures	—		—			555			—			—			555
Other income (expense), net	—		2,883			(23		)	(962		)	—			1,898
Income before provision for income taxes	44,625		56,736			19,372			13,790			(56,200		)	78,323
Provision for income taxes	—		(23,797		)	—			—			—			(23,797		)
Net income	44,625		32,939			19,372			13,790			(56,200		)	54,526
Less: Net income attributable to noncontrolling interests	—		—			—			(9,901		)	—			(9,901		)
Net income available to common stockholders	$	44,625	$	32,939		$	19,372		$	3,889		$	(56,200	)	$	44,625

CONSOLIDATING STATEMENT OF OPERATIONS

Year Ended December 31, 2013

(in thousands)

	Unconsolidated
	Delaware Lyon			California Lyon			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated Company
Operating revenue
Sales	$	—		$	310,919		$	180,673		$	48,410		$	—		$	540,002
Construction services	—			32,533			—			—			—			32,533
Management fees	—			1,351			—			—			(1,351		)	—
	—			344,803			180,673			48,410			(1,351		)	572,535
Operating costs
Cost of sales	—			(236,165		)	(150,450		)	(34,924		)	1,351			(420,188		)
Construction services	—			(25,598		)	—			—			—			(25,598		)
Sales and marketing	—			(15,615		)	(8,908		)	(1,579		)	—			(26,102		)
General and administrative	—			(37,031		)	(3,720		)	(19		)	—			(40,770		)
Amortization of intangible assets	—			(1,854		)	—			—			—			(1,854		)
Other	—			(2,163		)	(3		)	—			—			(2,166		)
	—			(318,426		)	(163,081		)	(36,522		)	1,351			(516,678		)
Income from subsidiaries	129,132			21,889			—			—			(151,021		)	—
Operating income	129,132			48,266			17,592			11,888			(151,021		)	55,857
Interest expense, net of amounts capitalized	—			(2,476		)	(126		)	—			—			(2,602		)
Other income (expense), net	—			1,745			(147		)	(1,088		)	—			510
Income before reorganization items and benefit (provision) for income taxes	129,132			47,535			17,319			10,800			(151,021		)	53,765
Reorganization items, net	—			(464		)	—			—			—			(464		)
Income before benefit (provision) for income taxes	129,132			47,071			17,319			10,800			(151,021		)	53,301
Benefit (provision) for income taxes	—			82,315			(13		)	—			—			82,302
Net income	129,132			129,386			17,306			10,800			(151,021		)	135,603
Less: Net income attributable to noncontrolling interests	—			—			—			(6,471		)	—			(6,471		)
Net income attributable to William Lyon Homes	129,132			129,386			17,306			4,329			(151,021		)	129,132
Preferred stock dividends	(1,528		)	—			—			—			—			(1,528		)
Net income available to common stockholders	$	127,604		$	129,386		$	17,306		$	4,329		$	(151,021	)	$	127,604

Consolidating Statement of Cash Flows

CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2014

(in thousands)

	Unconsolidated
	Delaware Lyon			California Lyon			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated Company
Operating activities
Net cash (used in) provided by operating activities	$	(97,110	)	$	369,750		$	(510,453	)	$	(19,104	)	$	97,110		$	(159,807	)
Investing activities
Investment in and advances to joint ventures	—			—			(500		)	—			—			(500		)
Cash paid for acquisitions, net	—			(439,040		)	(53,378		)	—			—			(492,418		)
Purchases of property and equipment	—			(1,826		)	(267		)	15			—			(2,078		)
Investments in subsidiaries	—			57,515			574,125			—			(631,640		)	—
Net cash (used in) provided by investing activities	—			(383,351		)	519,980			15			(631,640		)	(494,996		)
Financing activities
Proceeds from borrowings on notes payable	—			—			—			95,227			—			95,227
Principal payments on notes payable	—			(11,898		)	(4,012		)	(80,555		)	—			(96,465		)
Proceeds from issuance of 5 3/4% Senior Notes	—			150,000			—			—			—			150,000
Proceeds from issurance of 7 % Senior Notes	—			300,000			—			—			—			300,000
Proceeds from issuance of bridge loan	—			120,000			—			—			—			120,000
Payments on bridge loan	—			(120,000		)	—			—			—			(120,000		)
Proceeds from borrowings on revolver	—			20,000			—			—			—			20,000
Payments on revolver	—			(20,000		)	—			—			—			(20,000		)
Issuance of TEUs - Purchase Contracts, net of offering costs	—			94,284			—			—			—			94,284
Offering costs related to issuance of TEUs	—			(3,830		)	—			—			—			(3,830		)
Issuance of TEUs - Subordinated amortizing notes	—			20,717			—			—			—			20,717
Proceeds from stock options exercised	—			285			—			—			—			285
Offering costs related to issuance of common stock	—			(105		)	—			—			—			(105		)
Purchase of common stock	—			(1,774		)	—			—			—			(1,774		)
Excess income tax benefit from stock based awards	—			1,866			—			—			—			1,866
Payments of deferred loan costs				(19,018		)				—			—			(19,018		)
Noncontrolling interest contributions	—			—			—			22,041			—			22,041
Noncontrolling interest distributions	—			—			—			(27,326		)	—			(27,326		)
Advances to affiliates	—			—			(99		)	(49,825		)	49,924			—
Intercompany receivables/payables	97,110			(634,980		)	(4,871		)	58,135			484,606			—
Net cash provided by (used in) financing activities	97,110			(104,453		)	(8,982		)	17,697			534,530			535,902
Net (decrease) increase in cash and cash equivalents	—			(118,054		)	545			(1,392		)	—			(118,901		)
Cash and cash equivalents at beginning of period	—			166,516			28			5,128			—			171,672
Cash and cash equivalents at end of period	$	—		$	48,462		$	573		$	3,736		$	—		$	52,771

CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2013

(in thousands)

	Unconsolidated
	Delaware Lyon		California Lyon			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminating Entries			Consolidated Company
Operating activities
Net cash (used in) provided by operating activities	$	—	$	(164,848	)	$	15,759		$	(25,445	)	$	—		$	(174,534	)
Investing activities
Purchases of property and equipment	—		(3,651		)	(104		)	1			—			(3,754		)
Investments in subsidiaries	—		35,574			—			—			(35,574		)	—
Net cash provided by (used in) investing activities	—		31,923			(104		)	1			(35,574		)	(3,754		)
Financing activities
Proceeds from borrowings on notes payable	—		18,969			1,762			52,879			—			73,610
Principal payments on notes payable	—		(30,735		)	—			(34,302		)	—			(65,037		)
Proceeds from issurance of 8 1/2% Senior Notes	—		106,500			—			—			—			106,500
Proceeds from issuance of common stock	—		179,438			—			—			—			179,438
Offering costs related to issuance of common stock	—		(15,753		)	—			—			—			(15,753		)
Payment of deferred loan costs	—		(4,060		)	—			—			—			(4,060		)
Payment of preferred stock dividends	—		(2,550		)	—			—			—			(2,550		)
Noncontrolling interest contributions	—		—			—			37,184			—			37,184
Noncontrolling interest distributions	—		—			—			(30,447		)	—			(30,447		)
Advances to affiliates	—		—			362			(17,914		)	17,552			—
Intercompany receivables/payables	—		(21,744		)	(17,816		)	21,538			18,022			—
Net cash provided by (used in) financing activities	—		230,065			(15,692		)	28,938			35,574			278,885
Net increase (decrease) in cash and cash equivalents	—		97,140			(37		)	3,494			—			100,597
Cash and cash equivalents at beginning of period	—		69,376			65			1,634			—			71,075
Cash and cash equivalents at end of period	$	—	$	166,516		$	28		$	5,128		$	—		$	171,672