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Fair Value Measurements - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Fair Value Disclosures [Abstract]      
Payment for Contingent Consideration Liability, Operating Activities $ 0 $ 368 $ 5,267
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability 0 $ 0 $ 368
Impairment of Tangible Assets, Other Descriptors $ 6,000    
Fair Value Measurements FAIR VALUE MEASUREMENTS
Fair Value of Financial Instruments
The Company’s financial instruments, none of which are held for trading purposes, include cash, restricted cash, receivables, earnest money deposits, other assets, accounts payable, accrued expenses, customer and builder deposits, borrowings on lines of credit, senior unsecured notes, and notes payable.

Per the fair value hierarchy, level 1 financial instruments include: cash, restricted cash, receivables, earnest money deposits, other assets, accounts payable, accrued expenses, and customer and builder deposits due to their short-term nature. The Company estimates that, due to the short-term nature of the underlying financial instruments or the proximity of the underlying transaction to the applicable reporting date, the fair value of level 1 financial instruments does not differ materially from the aggregate carrying values recorded in the consolidated financial statements as of December 31, 2022 and 2021.

Level 2 financial instruments include borrowings on lines of credit, senior unsecured notes, and notes payable. Due to the short-term nature and floating interest rate terms, the carrying amounts of borrowings on lines of credit are deemed to approximate fair value. The estimated fair value of the senior unsecured notes as of December 31, 2022 and 2021, was $306.1 million and $352.3 million, respectively.

Certain assets are required to be recorded at fair value on a non-recurring basis when events and circumstances indicate that the carrying value may not be recoverable. The Company recorded inventory impairments, which are included in the in cost of residential units in our consolidated statements of income and deducted from inventory of $6.0 million for the year ended December 31, 2022 (See Note 4). Level 3 measurements based on third-party broker quotes were used in estimating the fair value of these assets.

There were no transfers between the levels of the fair value hierarchy for any of our financial instruments as of December 31, 2022 when compared to December 31, 2021.