Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2016

Basis of Accounting, Policy [Policy Text Block]

a. Basis of Presentation

The consolidated financial statements include the accounts of CalAtlantic Group, Inc. and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Certain reclassifications have been made to prior year amounts to conform to the current year presentation.

Use of Estimates, Policy [Policy Text Block]

b. Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Segment Reporting, Policy [Policy Text Block]

c. Segment Reporting

Accounting Standards Codification (“ASC”) Topic

280,

Segment Reporting

("ASC

280")

established standards for the manner in which public enterprises report information about operating segments. In accordance with ASC

280,

we have determined that each of our

four

homebuilding regions and our financial services operations (consisting of our mortgage financing and title operations) are our operating segments. Corporate is a non-operating segment. Our

four

homebuilding reportable segments include: North, consisting of our operating divisions in Georgia, Delaware, Illinois, Indiana, Maryland, Minnesota, New Jersey, Pennsylvania, Virginia and Washington D.C.; Southeast, consisting of our operating divisions in Florida and the Carolinas; Southwest, consisting of our operating divisions in Texas, Colorado and Nevada; and West, consisting of our operating divisions in California and Arizona.

Consolidation, Variable Interest Entity, Policy [Policy Text Block]

d. Variable Interest Entities

We account for variable interest entities in accordance with ASC Topic

810,

Consolidation

("ASC

810").

Under ASC

810,

a variable interest entity ("VIE") is created when: (a) the equity investment at risk in the entity is not sufficient to permit the entity to finance its activities without additional subordinated financial support provided by other parties, including the equity holders; (b) the entity’s equity holders as a group either (i) lack the direct or indirect ability to make decisions about the entity, (ii) are not obligated to absorb expected losses of the entity or (iii) do not have the right to receive expected residual returns of the entity; or (c) the entity’s equity holders have voting rights that are not proportionate to their economic interests, and the activities of the entity involve or are conducted on behalf of the equity holder with disproportionately few voting rights. If an entity is deemed to be a VIE pursuant to ASC

810,

the enterprise that has both (i) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (ii) the obligation to absorb the expected losses of the entity or right to receive benefits from the entity that could be potentially significant to the VIE is considered the primary beneficiary and must consolidate the VIE. In accordance with ASC

810,

we perform ongoing reassessments of whether we are the primary beneficiary of a VIE.

Equity Method Investments, Policy [Policy Text Block]

e. Limited Partnerships and Limited Liability Companies

We analyze our homebuilding and land development joint ventures under the provisions of ASC

810

(as discussed above) when determining whether the entity should be consolidated. In accordance with the provisions of ASC

810,

limited partnerships or similar entities, such as limited liability companies, must be further evaluated under the presumption that the general partner, or the managing member in the case of a limited liability company, is deemed to have a controlling interest and therefore must consolidate the entity unless the limited partners or non-managing members have:

(1)

the ability, either by a single limited partner or through a simple majority vote, to dissolve or liquidate the entity, or kick-out the managing member/general partner without cause, or

(2)

substantive participatory rights that are exercised in the ordinary course of business. Under the provisions of ASC

810,

may

be required to consolidate certain investments in which we hold a general partner or managing member interest.

Revenue Recognition, Policy [Policy Text Block]

f. Revenue Recognition

In accordance with ASC Topic

360

20,

Property, Plant, and Equipment – Real Estate Sales

("ASC

360

20"),

homebuilding revenues are recorded after construction is completed, a sufficient down payment has been received, title has passed to the homebuyer, collection of the purchase price is reasonably assured and we have no other continuing involvement. In instances where the homebuyer’s financing is originated by our mortgage financing subsidiary and the buyer has not made an adequate initial or continuing investment as prescribed by ASC

360

20,

the profit on such home sales is deferred until the sale of the related mortgage loan to a

third

-party investor has been completed.

In accordance with ASC Topic

825,

Financial Instruments

("ASC

825"),

loan origination fees and expenses are recognized upon origination of loans by our mortgage financing operation. Generally our policy is to sell all mortgage loans originated. These sales generally occur within a short period of time (typically

days of origination). Mortgage loan interest is accrued only so long as it is deemed collectible.

Cost of Sales, Policy [Policy Text Block]

g. Cost of Sales

Homebuilding cost of sales is recognized in the period when the related homebuilding revenues are recognized. Cost of sales is recorded based upon total estimated costs to be allocated to each home within a community. Certain direct construction costs are specifically identified and allocated to homes while other common costs, such as land, land improvements and carrying costs, are allocated to homes within a community based upon their anticipated relative sales or fair value. Any changes to the estimated costs are allocated to the remaining undelivered lots and homes within their respective community. The estimation of these costs requires a substantial degree of judgment by management.

Standard Product Warranty, Policy [Policy Text Block]

h. Warranty Costs

Estimated future direct warranty costs are accrued and charged to cost of sales in the period when the related homebuilding revenues are recognized. Amounts accrued are based upon historical experience. Indirect warranty overhead salaries and related costs are charged to cost of sales in the period incurred. We assess the adequacy of our warranty accrual on a quarterly basis and adjust the amounts recorded if necessary. During the years ended

December

31,

2016,

2015

and

2014,

we did not record any warranty adjustments. Our warranty accrual is included in accrued liabilities in the accompanying consolidated balance sheets. Changes in our warranty accrual are detailed in the table set forth below:

	Year Ended December 31,
	2016			2015			2014
	(Dollars in thousands)
Warranty accrual, beginning of the year	$	40,691		$	13,584		$	13,811
Warranty accrual assumed with merger		―			25,528			―
Warranty costs accrued during the year		24,092			13,803			7,550
Warranty costs paid during the year		(20,851	)		(12,224	)		(7,777	)
Warranty accrual, end of the year	$	43,932		$	40,691		$	13,584

Earnings Per Share, Policy [Policy Text Block]

i. Earnings Per Common Share

We compute earnings per share in accordance with ASC Topic

260,

Earnings per Share

("ASC

260"),

which requires earnings per share for each class of stock (common stock and participating preferred stock) to be calculated using the

two

-class method. The

two

-class method is an allocation of earnings between the holders of common stock and a company's participating security holders. Under the

two

-class method, earnings for the reporting period are allocated between common shareholders and other security holders based on their respective participation rights in undistributed earnings. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and, therefore, are included in computing earnings per share pursuant to the

two

-class method.

Basic earnings per common share is computed by dividing income or loss available to common stockholders by the weighted average number of shares of basic common stock outstanding. Our Series B junior participating convertible preferred stock ("Series B Preferred Stock"), which was convertible into shares of our common stock at the holder’s option, and our unvested restricted stock, are classified as participating securities in accordance with ASC

260.

Net income allocated to the holders of our Series B Preferred Stock and unvested restricted stock is calculated based on the shareholders’ proportionate share of weighted average shares of common stock outstanding on an if-converted basis.

For purposes of determining diluted earnings per common share, basic earnings per common share is further adjusted to include the effect of potential dilutive common shares outstanding, including stock options, stock appreciation rights, performance share awards and unvested restricted stock using the more dilutive of either the

two

-class method or the treasury stock method, and Series B Preferred Stock and convertible debt using the if-converted method. Under the

two

-class method of calculating diluted earnings per share, net income is reallocated to common stock, the Series B Preferred stock and all dilutive securities based on the contractual participating rights of the security to share in the current earnings as if all of the earnings for the period had been distributed. In the computation of diluted earnings per share, the

two

-class method and if-converted method for the Series B Preferred Stock resulted in the same earnings per share amounts as the holder of the Series B Preferred Stock had the same economic rights as the holders of the common stock.

	Year Ended December 31,
	2016			2015			2014
	(Dollars in thousands, except per share amounts)
Numerator:
Net income	$	484,730		$	213,509		$	215,865
Less: Net income allocated to preferred shareholder		―			(32,997	)		(51,650	)
Less: Net income allocated to unvested restricted stock		(1,168	)		(369	)		(297	)
Net income available to common stockholders for basic earnings per common share		483,562			180,143			163,918
Effect of dilutive securities:
Net income allocated to preferred shareholder		―			32,997			51,650
Interest on 1.625% convertible senior notes due 2018		2,059			47			n/a
Interest on 0.25% convertible senior notes due 2019		1,862			9			n/a
Interest on 1.25% convertible senior notes due 2032		1,407			898			899
Net income available to common and preferred stock for diluted earnings per share	$	488,890		$	214,094		$	216,467

Denominator:
Weighted average basic common shares outstanding		118,212,740			71,713,747			55,737,548
Weighted average additional common shares outstanding if preferred shares converted to common shares (if dilutive)		―			13,135,814			17,562,557
Total weighted average common shares outstanding if preferred shares converted to common shares		118,212,740			84,849,561			73,300,105
Effect of dilutive securities:
Share-based awards		666,928			816,459			1,256,964
1.625% convertible senior notes due 2018		7,167,960			1,804,192			n/a
0.25% convertible senior notes due 2019		3,639,150			915,985			n/a
1.25% convertible senior notes due 2032		6,298,207			6,262,570			6,262,570
Weighted average diluted shares outstanding		135,984,985			94,648,767			80,819,639

Income per share:
Basic	$	4.09		$	2.51		$	2.94
Diluted

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

j. Stock-Based Compensation

We account for share-based awards in accordance with ASC Topic

718,

Compensation – Stock Compensation

("ASC

718").

ASC

718

requires that the cost resulting from all share-based payment transactions be recognized in the financial statements. ASC

718

requires all entities to apply a fair value-based measurement method in accounting for share-based payment transactions with employees except for equity instruments held by employee share ownership plans.

Comprehensive Income, Policy [Policy Text Block]

k. Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) consists of unrealized gains or losses on available-for-sale marketable securities, as reported within the accompanying consolidated statements of stockholders' equity and consolidated statements of comprehensive income. At

December

31,

2016,

accumulated other comprehensive income included unrealized gains of

$523,000

on available-for-sale marketable securities, offset with reclassification adjustments, which represent realized gains or losses on the sales of available-for-sale marketable securities, in the amount of

$695,000.

Realized gains or losses were included in homebuilding other income (expense) in the accompanying consolidated statements of operations. Please see Note

2.u.

for discussion of other comprehensive income (loss) related to derivative instruments and hedging activities.

Cash and Cash Equivalents, Policy [Policy Text Block]

l. Cash and Equivalents and Restricted Cash

Cash and equivalents include cash on hand, demand deposits and all highly liquid short-term investments, including interest-bearing securities purchased with a maturity of

three

months or less from the date of purchase. At

December

31,

2016,

cash and equivalents included

$150.3

million of cash from home closings held in escrow for our benefit, typically for less than

five

days, which are considered deposits in-transit.

December

31,

2016,

homebuilding restricted cash represented

$28.3

million of cash held in cash collateral accounts primarily related to certain letters of credit that have been issued. Financial services restricted cash as of

December

31,

2016

consisted of

$17.7

million held in cash collateral accounts primarily related to certain letters of credit that have been issued,

$3.0

million related to our financial services subsidiary mortgage credit facilities and

$1.0

million related to funds held in trust for

third

parties.

Finance, Loan and Lease Receivables, Held-for-sale, Policy [Policy Text Block]

m. Mortgage Loans Held for Sale

In accordance with ASC

825,

mortgage loans held for sale are recorded at fair value and loan origination and related costs are recognized upon loan closing. In addition, we recognize net interest income on loans held for sale from the date of origination through the date of disposition. We

sell substantially all of the loans we originate in the

secondary

mortgage market, with servicing rights released on a non-recourse basis. These sales are generally subject to our obligation to repay the gain on sale if the loan is prepaid by the borrower within a certain time period following such sale, or to repurchase loans or indemnify investors for losses from borrower defaults if, among other things, the loan purchaser’s underwriting guidelines are not met or there is fraud in connection with the loan. We establish liabilities for such anticipated losses based upon, among other things, an analysis of indemnification and repurchase requests received, an estimate of potential indemnification or repurchase claims not yet received, our historical amount of indemnification payments and repurchases, and losses incurred through the disposition of affected loans.

Finance, Loan and Lease Receivables, Held-for-investment, Policy [Policy Text Block]

n. Mortgage Loans Held for Investment

Certain mortgage loans are classified as held for investment based on our intent and ability to hold the loans for the foreseeable future or to maturity. Mortgage loans held for investment are recorded at their unpaid principal balance, net of discounts and premiums, unamortized net deferred loan origination costs and fees and allowance for loan losses. Discounts, premiums, and net deferred loan origination costs and fees are amortized into income over the contractual life of the loan. Mortgage loans held for investment are continually evaluated for collectability and, if appropriate, specific allowances are established based on estimates of collateral value. Loans are placed on non-accrual status for

first

trust deeds when the loan is

days past due and for

second

trust deeds when the loan is

days past due, and previously accrued interest is reversed from income if deemed uncollectible. We had allowances for loan losses for loans held for investment of

$1.6

million as of

December

31,

2016

and

2015.

Inventory, Policy [Policy Text Block]

o. Inventories

Inventories consist of land, land under development, homes under construction, completed homes and model homes and are stated at cost, net of any impairment charges. We capitalize direct carrying costs, including interest, property taxes and related development costs to inventories. Field construction supervision and related direct overhead are also included in the capitalized cost of inventories. Direct construction costs are specifically identified and allocated to homes while other common costs, such as land, land improvements and carrying costs, are allocated to homes within a community based upon their anticipated relative sales or fair value.

We assess the recoverability of real estate inventories in accordance with the provisions of ASC Topic

360,

Property, Plant, and Equipment

("ASC

360").

ASC

360

requires long-lived assets, including inventories, that are expected to be held and used in operations to be carried at the lower of cost or, if impaired, the fair value of the asset. ASC

360

requires that companies evaluate long-lived assets for impairment based on undiscounted future cash flows of the assets at the lowest level for which there is identifiable cash flows. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell.

Interest Capitalization, Policy [Policy Text Block]

p. Capitalization of Interest

We follow the practice of capitalizing interest to inventories owned during the period of development and to investments in unconsolidated homebuilding and land development joint ventures in accordance with ASC Topic

835,

Interest ("ASC

835").

Homebuilding interest capitalized as a cost of inventories owned is included in cost of sales as related units or lots are sold. Interest capitalized to investments in unconsolidated homebuilding and land development joint ventures is included as a reduction of income from unconsolidated joint ventures when the related homes or lots are sold to

third

parties. Interest capitalized to investments in unconsolidated land development joint ventures is transferred to inventories owned if the underlying lots are purchased by us. To the extent our homebuilding debt exceeds our qualified assets as defined in ASC

835,

we expense a portion of the interest incurred by us. Qualified assets represent projects that are actively selling or under development as well as investments in unconsolidated joint ventures. During the years ended

December

31,

2016,

2015

and

2014,

our qualified assets exceeded our debt, and as a result, all of our homebuilding interest incurred during

2016,

2015

and

2014

was capitalized in accordance with ASC

835.

The following is a summary of homebuilding interest capitalized to inventories owned and investments in unconsolidated joint ventures, amortized to cost of sales and income (loss) from unconsolidated joint ventures and expensed as interest expense, for the years ended

December

31,

2016,

2015

and

2014:

	Year Ended December 31,
	2016			2015			2014
	(Dollars in thousands)

Total interest incurred	$	233,225		$	171,509		$	153,695
Less: Interest capitalized to inventories owned		(229,200	)		(169,233	)		(151,962	)
Less: Interest capitalized to investments in unconsolidated joint ventures		(4,025	)		(2,276	)		(1,733	)
Interest expense	$	―		$	―		$	―

Interest previously capitalized to inventories owned, included in home cost of home sales	$	170,105		$	131,611		$	119,422
Interest previously capitalized to inventories owned, included in land cost of land sales	$	1,596		$	7,770		$	3,690
Interest previously capitalized to investments in unconsolidated joint ventures, included in income (loss) from unconsolidated joint ventures	$	861		$	―		$	30
Interest capitalized in ending inventories owned (1)	$	365,701		$	305,459		$	275,607
Interest capitalized as a percentage of inventories owned		5.7	%		5.0	%		8.5	%
Interest capitalized in ending investments in unconsolidated joint ventures (1)	$	3,362		$	2,941		$	665
Interest capitalized as a percentage of investments in unconsolidated joint ventures		2.6	%		2.2	%		1.3	%

(1)

During the years ended

December

31,

2016,

2015

and

2014,

in connection with lot purchases from our joint ventures,

$2.7

million,

and

$6.0

million, respectively, of capitalized interest was transferred from investments in unconsolidated joint ventures to inventories owned.

Interest in Unincorporated Joint Ventures or Partnerships, Policy [Policy Text Block]

q. Investments in Unconsolidated Land Development and Homebuilding Joint Ventures

Investments in our unconsolidated land development and homebuilding joint ventures are accounted for under the equity method of accounting. Under the equity method, we recognize our proportionate share of earnings and losses generated by the joint venture upon the delivery of lots or homes to

third

parties. All joint venture profits generated from land sales to us are deferred and recorded as a reduction to our cost basis in the lots purchased until the homes to be constructed are ultimately sold by us to

third

parties. Our ownership interests in our unconsolidated joint ventures vary, but are generally less than or equal to

percent.

We review inventory projects within our unconsolidated joint ventures for impairments consistent with our real estate inventories described in Note

2.o.

We also review our investments in unconsolidated joint ventures for evidence of an other than temporary decline in value. To the extent we deem any portion of our investment in unconsolidated joint ventures as not recoverable, we impair our investment accordingly.

Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]

r. Goodwill

In accordance with ASC Topic

350,

Intangibles, Goodwill and Other

("ASC

350"),

we analyze goodwill on at least an annual basis through a qualitative assessment to determine whether it is necessary to perform a

two

-step goodwill impairment test. ASC

350

states that an entity

may

assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. Such qualitative factors include:

(1)

macroeconomic conditions, such as a deterioration in general economic conditions,

(2)

industry and market considerations such as deterioration in the environment in which the entity operates,

(3)

cost factors such as increases in raw materials, labor costs, etc., and

(4)

overall financial performance such as negative or declining cash flows or a decline in actual or planned revenue or earnings. If the qualitative analysis determines that additional impairment testing is required, the

two

-step impairment testing in accordance with ASC

350

would be initiated. We continually evaluate our qualitative inputs to assess whether events and circumstances have occurred that indicate the goodwill balance

may

not be recoverable. During

2016,

we performed an analysis of qualitative factors for potential impairment of goodwill carried and determined that no impairment existed. See Note

for additional information related to goodwill.

Income Tax, Policy [Policy Text Block]

s. Income Taxes

We account for income taxes in accordance with ASC Topic

740,

Income Taxes

("ASC

740").

ASC

740

requires an asset and liability approach for measuring deferred taxes based on temporary differences between the financial statement and tax bases of assets and liabilities existing at each balance sheet date using enacted tax rates for years in which taxes are expected to be paid or recovered.

We evaluate our deferred tax assets on a quarterly basis to determine whether a valuation allowance is required. In accordance with ASC

740,

we assess whether a valuation allowance should be established based on our determination of whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends primarily on: (i) our ability to carry back net operating losses to tax years where we have previously paid income taxes based on applicable federal law; and (ii) our ability to generate future taxable income during the periods in which the related temporary differences become deductible. The assessment of a valuation allowance includes giving appropriate consideration to all positive and negative evidence related to the realization of the deferred tax asset. This assessment considers, among other things, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carryforward periods, our experience with operating loss and tax credit carryforwards not expiring unused, and tax planning alternatives. Significant judgment is required in determining the future tax consequences of events that have been recognized in our consolidated financial statements and/or tax returns. Actual outcomes of these future tax consequences could differ materially from the outcomes we currently anticipate.

ASC

740

defines the methodology for recognizing the benefits of uncertain tax return positions as well as guidance regarding the measurement of the resulting tax benefits. These provisions require an enterprise to recognize the financial statement effects of a tax position when it is more likely than not (defined as a likelihood of more than

50%),

based on the technical merits, that the position will be sustained upon examination. In addition, these provisions provide guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The evaluation of whether a tax position meets the more-likely-than-not recognition threshold requires a substantial degree of judgment by management based on the individual facts and circumstances. Actual results could differ from estimates.

Commitments and Contingencies, Policy [Policy Text Block]

t. Insurance and Litigation Accruals

Insurance and litigation accruals are established with respect to estimated future claims cost. We maintain general liability insurance designed to protect us against a portion of our risk of loss from construction-related claims. We also generally require our subcontractors and design professionals to indemnify us for liabilities arising from their work, subject to various limitations. However, such indemnity is significantly limited with respect to certain subcontractors that are added to our general liability insurance policy. We record allowances to cover the estimated costs of our self-insurance liability based on an analysis performed by an independent

third

party actuary that uses our historical claim and expense data, as well as industry data to estimate these overall costs. As of

December

31,

2016,

we present our self-insurance liability on a gross basis within accrued liabilities in the accompanying consolidated balance sheets without consideration of insurance recoveries and amounts we have paid on behalf of and expect to recover from other parties, if any. Also effective

December

31,

2016,

estimated probable insurance and other recoveries are presented as receivables within other assets in the accompanying consolidated balance sheets. Previously, these insurance and recoverable amounts were presented on a net basis within our self-insurance liability. This change in presentation had no impact on our consolidated statements of operations or cash flows. As a result, we reclassified the

December

31,

2015

balance sheet to increase other assets and accrued liabilities by

$83.9

million, reflecting the balance of probable insurance and other recoveries as receivables. Our total insurance and litigation accruals on a gross basis as of

December

31,

2016

and

2015

were

$233.5

million and

$209.2

million, respectively.

Derivatives, Policy [Policy Text Block]

u. Derivative Instruments and Hedging Activities

We account for derivatives and certain hedging activities in accordance with ASC Topic

815,

Derivatives and Hedging

("ASC

815").

ASC

815

establishes the accounting and reporting standards requiring that every derivative instrument, including certain derivative instruments embedded in other contracts, be recorded as either assets or liabilities in the consolidated balance sheets and to measure these instruments at fair value. Gains and losses resulting from changes in the fair value of derivatives are recognized in the consolidated statement of operations or recorded in accumulated other comprehensive income (loss), net of tax, and recognized in the consolidated statement of operations when the hedged item affects earnings, depending on the purpose of the derivative and whether the derivative qualifies for hedge accounting treatment.

Our policy is to designate at a derivative’s inception the specific assets, liabilities or future commitments being hedged and monitor the derivative to determine if the derivative remains an effective hedge. The effectiveness of a derivative as a hedge is based on a high correlation between changes in the derivative’s value and changes in the value of the underlying hedged item. We recognize gains or losses for amounts received or paid when the underlying transaction settles. We do not enter into or hold derivatives for trading or speculative purposes.

Guarantees, Indemnifications and Warranties Policies [Policy Text Block]

v. Accounting for Guarantees

We account for guarantees in accordance with the provisions of ASC Topic

460,

Guarantees

("ASC

460").

Under ASC

460,

recognition of a liability is recorded at its estimated fair value based on the present value of the expected contingent payments under the guarantee arrangement. The types of guarantees that we generally provide that are subject to ASC

460

generally are made to

third

parties on behalf of our unconsolidated homebuilding and land development joint ventures. As of

December

31,

2016,

these guarantees included, but were not limited to, surety bond indemnities.

New Accounting Pronouncements, Policy [Policy Text Block]

w. Recent Accounting Pronouncements

May

2014,

the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No.

2014

09,

Revenue from Contracts with Customers

("ASU

2014

09"),

which supersedes existing accounting literature relating to how and when a company recognizes revenue. Under ASU

2014

09,

a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. In

August

2015,

the FASB issued ASU No.

2015

14,

Revenue from Contracts with Customers (Topic

606):

Deferral of the Effective Date

, which delayed the effective date of ASU

2014

one

year. As a result, for public companies, ASU

2014

will be effective for annual reporting periods and interim periods within those annual periods beginning after

December

15,

2017,

and is to be applied either with a full retrospective or modified retrospective approach, with early application permitted. We do not plan to early adopt the guidance. We expect to adopt the new standard under the modified retrospective approach. Although we are still in the process of evaluating our contracts, we do not believe the adoption of ASU

2014

will have a material impact on the amount or timing of our homebuilding revenues. We are continuing to evaluate the impact the adoption of ASU

2014

may

have on other aspects of our business and on our consolidated financial statements and disclosures.

June

2014,

the FASB issued ASU No.

2014

12,

Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period

("ASU

2014

12"),

which requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in ASC

718,

Compensation — Stock Compensation

, as it relates to awards with performance conditions that affect vesting to account for such awards. Our adoption of ASU

2014

January

2016

did not have an effect on our financial statements.

August

2014,

the FASB issued ASU No.

2014

15,

Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern

("ASU

2014

15"),

which requires management to perform interim and annual assessments on whether there are conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within

one

year of the date the financial statements are issued and to provide related disclosures, if required. The amendments in ASU

2014

are effective for the annual period ending after

December

15,

2016,

and for annual and interim periods thereafter. Our adoption of ASU

2014

did not have an effect on our financial statements and related disclosures.

February

2015,

the FASB issued ASU No.

2015

02,

Amendments to the Consolidation Analysis

("ASU

2015

02"),

which changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. Our adoption of ASU

2015

January

2016

did not have a material effect on our financial statements and related disclosures.

September

2015,

the FASB issued ASU No.

2015

16,

Simplifying the Accounting for Measurement-Period Adjustments

("ASU

2015

16"),

which eliminates the requirement that an acquirer in a business combination account for measurement-period adjustments retrospectively. Instead, an acquirer will recognize a measurement-period adjustment during the period in which it determines the amount of the adjustment, including the effect on earnings of any amounts it would have recorded in previous periods as if the accounting had been completed at the acquisition date. Our adoption of ASU

2015

January

2016

did not have a material effect on our financial statements.

January

2016,

the FASB issued ASU

2016

01,

Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities

("ASU

2016

01"),

which modifies how entities measure equity investments and present changes in the fair value of financial liabilities. Under the new guidance, entities will have to measure equity investments that do not result in consolidation and are not accounted under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicality exception. A practicality exception will apply to those equity investments that do not have a readily determinable fair value and do not qualify for the practical expedient to estimate fair value under ASC Topic

820,

Fair Value Measurements

, and as such these investments

may

be measured at cost. ASU

2016

is effective for annual periods and interim periods within those annual periods beginning after

December

15,

2017.

We are currently evaluating the impact adoption will have on our financial statements.

March

2016,

the FASB issued ASU

2016

02,

Leases

("ASU

2016

02"),

which provides guidance for accounting for leases. ASU

2016

requires lessees to classify leases as either finance or operating leases and to record a right-of-use asset and a lease liability for all leases with a term greater than

months regardless of the lease classification. The lease classification will determine whether the lease expense is recognized based on an effective interest rate method or on a straight line basis over the term of the lease. ASU

2016

is effective for annual periods and interim periods within those annual periods beginning after

December

15,

2018.

We are currently evaluating the impact adoption will have on our financial statements.

March

2016,

the FASB issued ASU

2016

07,

Investments- Equity Method and Joint Ventures: Simplifying the Transition to the Equity Method of Accounting

("ASU

2016

07"),

which eliminates the requirement to apply the equity method of accounting retrospectively when a reporting entity obtains significant influence over a previously held investment. ASU

2016

is effective for annual periods and interim periods within those annual periods beginning after

December

15,

2016.

Our adoption of ASU

2016

is not expected to have a material effect on our financial statements.

March

2016,

the FASB issued ASU No.

2016

09,

Compensation — Stock Compensation: Improvements to Employee Share-Based Payment Accounting

("ASU

2016

09"),

which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU

2016

is effective for annual periods and interim periods within those annual periods beginning after

December

15,

2016.

Our adoption of ASU

2016

is not expected to have a material effect on our financial statements.

August

2016,

the FASB issued ASU No.

2016

15,

Statement of Cash Flows (Topic

230):

Classification of Certain Cash Receipts and Cash Payments

("ASU

2016

15").

ASU

2016

provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. ASU

2016

is effective for annual periods and interim periods within those annual periods beginning after

December

15,

2017,

and early adoption is permitted. We are currently evaluating the impact adoption will have on our financial statements.

November

2016,

the FASB issued ASU No.

2016

18,

Statement of Cash Flows (Topic

230):

Restricted Cash

(“ASU

2016

18”).

ASU

2016

provides guidance on the classification of restricted cash in the statement of cash flows. ASU

2016

is effective for

annual periods and interim periods within those annual periods beginning after

December

15,

2017,

and early adoption is permitted.

We are currently evaluating the impact adoption will have on our financial statements.

January

2017,

the FASB issued ASU No.

2017

01,

Business Combinations:

Clarifying the Definition of a Business

(“ASU

2017

01”).

ASU

2017

clarifies the definition of a business for determining whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses.

ASU

2017

is effective for annual periods and interim periods within those annual periods beginning after

December

15,

2017,

and early adoption is permitted. We are currently evaluating the impact adoption will have on our financial statements.

January

2017,

the FASB issued ASU No.

2017

04,

Intangibles - Goodwill and Other (Topic

350):

Simplifying the Ac

counting for Goodwill Impairment

("ASU

2017

04").

ASU

2017

removes the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU

2017

is effective for

annual periods and interim periods within those annual periods beginning after

December

15,

2019,

and early adoption is permitted.

We are currently evaluating the impact adoption will have on our financial statements.