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Commitments and Contingencies | 12 Months Ended
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Dec. 31, 2024
Commitments and Contingencies [Abstract] |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies Warranty Our warranty reserves are included in Other Liabilities in the Company’s Consolidated Balance Sheets, as further explained in Note 1 to our Consolidated Financial Statements. A summary of warranty activity for the years ended December 31, 2024, 2023 and 2022 is as follows:
| Year Ended December 31, |  |
(In thousands) | 2024 |  | 2023 |  | 2022 |  |
Warranty reserves, beginning of period | $ | 31,980 |  |  | $ | 32,902 |  |  | $ | 29,728 |  |  |
Warranty expense on homes delivered during the period | 24,186 |  |  | 21,525 |  |  | 21,936 |  |  |
Changes in estimates for pre-existing warranties | 5,268 |  |  | 2,457 |  |  | 5,374 |  |  |
Settlements made during the period | (25,215) |  |  | (24,904) |  |  | (24,136) |  |  |
Warranty reserves, end of period | $ | 36,219 |  |  | $ | 31,980 |  |  | $ | 32,902 |  |  |
Performance Bonds and Letters of Credit The Company provides standby letters of credit and completion bonds for development work in progress, deposits on land and lot purchase agreements and miscellaneous deposits. At December 31, 2024, the Company had outstanding approximately $488.4 million of completion bonds and standby letters of credit, some of which were issued to various local governmental entities that expire at various times through August 2029. Included in this total are: (1) $402.2 million of performance and maintenance bonds and $62.0 million of performance letters of credit that serve as completion bonds for land development work in progress (letters of credit represent potential commitments and generally expire within one or two years); (2) $18.4 million of financial letters of credit, of which $12.7 million represent deposits on land and lot purchase agreements; (3) $4.6 million of financial bonds; and (4) $1.2 million of corporate notes. The development agreements under which we are required to provide completion bonds or letters of credit are generally not subject to a required completion date and only require that the improvements are in place in phases as houses are built and sold. In locations where development has progressed, the amount of development work remaining to be completed is typically less than the remaining amount of bonds or letters of credit due to timing delays in obtaining releases of the bonds or letters of credit. Land Option Agreements In the ordinary course of business, the Company enters into land option or purchase agreements for which we generally pay non-refundable deposits. Pursuant to these land option agreements, the Company provides a deposit to the seller as consideration for the right to purchase land at different times in the future, usually at predetermined prices. In accordance with ASC 810, we analyze our land option or purchase agreements to determine whether the corresponding land sellers are VIEs and, if so, whether we are the primary beneficiary, using an analysis similar to that described above in Note 6. Although we do not have legal title to the optioned land, ASC 810 requires a company to consolidate a VIE if the company is determined to be the primary beneficiary. In cases where we are the primary beneficiary, even though we do not have title to such land, we are required to consolidate these purchase/option agreements and reflect such assets and liabilities in our Consolidated Inventory Not Owned in our Consolidated Balance Sheets. At both December 31, 2024 and 2023, we concluded that we were not the primary beneficiary of any VIEs from which we are purchasing land under option or purchase agreements. In addition, we evaluate our land option or purchase agreements to determine for each contract if (1) a portion or all of the purchase price is a specific performance requirement, or (2) the amount of deposits and prepaid acquisition and development costs exceed certain thresholds relative to the remaining purchase price of the lots. If either is the case, then the remaining purchase price of the lots (or the specific performance amount, if applicable) is recorded as an asset and liability in Consolidated Inventory Not Owned (as further described below) on our Consolidated Balance Sheets. Other than as described below in “Consolidated Inventory Not Owned and Related Obligation,” the Company currently believes that its maximum exposure as of December 31, 2024 related to our land option agreements is equal to the amount of the Company’s outstanding deposits and prepaid acquisition costs, which totaled $97.1 million, including cash deposits of $69.5 million, prepaid acquisition costs of $13.7 million, letters of credit of $12.7 million and $1.2 million of other non-cash deposits. At December 31, 2024, the Company also had options and contingent purchase agreements to acquire land and developed lots with an aggregate purchase price of approximately $1.45 billion. Purchase of properties under these agreements is contingent upon satisfaction of certain requirements by the Company and the sellers. Consolidated Inventory Not Owned and Related Obligation At December 31, 2024 and December 31, 2023, Consolidated Inventory Not Owned was $11.8 million and $26.9 million, respectively. At December 31, 2024 and 2023, the corresponding liability of $11.8 million and $26.9 million, respectively, has been classified as Obligation for Consolidated Inventory Not Owned on the Consolidated Balance Sheets. The decrease in this balance from December 31, 2023 is related primarily to a decrease in the number of land purchase agreements that had deposits and prepaid acquisition and development costs that exceeded certain thresholds resulting in the remaining purchase price of the lots to be recorded in inventory not owned. Legal Matters The Company and certain of its subsidiaries have been named as defendants in certain other legal proceedings which are incidental to our business. While management currently believes that the ultimate resolution of these other legal proceedings, individually and in the aggregate, will not have a material effect on the Company’s financial position, results of operations and cash flows, such legal proceedings are subject to inherent uncertainties. The Company has recorded a liability to provide for the anticipated costs, including legal defense costs, associated with the resolution of these other legal proceedings. However, the possibility exists that the costs to resolve these legal proceedings could differ from the recorded estimates and, therefore, have a material effect on the Company’s net income for the periods in which they are resolved. At December 31, 2024 and 2023, we had $1.2 million and $1.0 million reserved for legal expenses, respectively.

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