XML 53 R36.htm IDEA: XBRL DOCUMENT v3.3.1.900
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