Subsequent Events

9 Months Ended

Sep. 30, 2017

18. Subsequent Events

On October 31, 2017, we acquired substantially all the assets and operations and assumed certain liabilities of Sundquist Homes and affiliates, a homebuilder with operations in greater Seattle, Washington for approximately $51.5 million in cash. The acquired assets include owned and controlled land, homes under construction and model homes. As the acquired assets and processes have the ability to create outputs in the form of revenue from the sale of single family residences, we concluded that the acquisition represents a business combination.

The following table summarizes our preliminary estimates of the fair value of the assets acquired and liabilities assumed as of the acquisition date:


Inventories	$	57,277
Prepaid expenses and other assets		1,050
Property and equipment, net		142
Total assets	$	58,469

Accounts payable	$	4,716
Accrued expenses and other liabilities		2,253
Total liabilities		6,969
Purchase price/Net equity	$	51,500

The purchase price accounting reflected above is preliminary and is based upon estimates and assumptions that are subject to change within the measurement period (up to one year from the acquisition date). The measurement period remains open pending the completion of valuation procedures related to the acquired assets and assumed liabilities.