XML 99 R17.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended |  |  |
--- | --- | --- | --- | ---
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016
Income Tax Disclosure [Abstract] |  |  |  |
Income Taxes | INCOME TAXES On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act made major changes to the Internal Revenue Code. The Company recognized the income tax effects of the Tax Act in its financial statements in accordance with Staff Accounting Bulletin 118 which provides SEC staff guidance for the application of ASC 740, Income Taxes. The Company finalized its accounting for the income tax effects of the Tax Act in the fourth quarter of 2018 with no adjustments recorded during the measurement period. Income Tax Expense The components of current and deferred income tax expense are as follows (in thousands):
| Years Ended December 31,
| 2019 |  | 2018 |  | 2017
Current income tax expense (benefit): |  |  |  |  |
Federal | $ | 15,980 |  |  | $ | (569 | ) |  | $ | 999 |
State | 2,810 |  |  | 2,993 |  |  | 1,733 |
Total current income tax expense | 18,790 |  |  | 2,424 |  |  | 2,732 |
Deferred income tax expense (benefit): |  |  |  |  |
Federal | 774 |  |  | 15,023 |  |  | 36,569 |
State | 463 |  |  | (311 | ) |  | (270 | )
Total deferred income tax expense | 1,237 |  |  | 14,712 |  |  | 36,299 |
Total income tax expense | $ | 20,027 |  |  | $ | 17,136 |  |  | $ | 39,031 |
Effective Income Tax Rate Reconciliation The income tax expense differs from the amount that would be computed by applying the statutory federal income tax rates of 21%, 21% and 35% for the years ended December 31, 2019, 2018 and 2017, respectively, to income before income taxes as a result of the following (amounts in thousands):
| Years Ended December 31,
| 2019 |  | 2018 |  | 2017
Tax on pre-tax book income (before reduction of noncontrolling interests) | $ | 17,709 |  |  | $ | 17,151 |  |  | $ | 22,483 |
Tax effect of non-controlled earnings | (1,252 | ) |  | (2,743 | ) |  | (3,630 | )
State income tax expense, net of federal benefit | 2,706 |  |  | 1,940 |  |  | 931 |
Adjustments to deferred tax assets related to state net operating losses | 1,063 |  |  | 283 |  |  | 41 |
Change in valuation allowance | (1,063 | ) |  | (283 | ) |  | (41 | )
Change in federal statutory tax rate | — |  |  | — |  |  | 19,017 |
Other | 864 |  |  | 788 |  |  | 230 |
Total income tax expense | $ | 20,027 |  |  | $ | 17,136 |  |  | $ | 39,031 |
Effective income tax rate | 23.7 | % |  | 21.0 | % |  | 60.8 | %
The effective income tax rate for 2017 reflects the impact of compliance with the Tax Act, signed into law on December 22, 2017. The Company remeasured its deferred tax assets due to the change in federal statutory tax rate which resulted in additional tax expense of $19.0 million. Deferred Income Taxes The primary differences between the financial statement and tax bases of assets and liabilities are as follows (in thousands):
| December 31, 2019 |  | December 31, 2018
Deferred tax assets: |  |  |
Basis in partnerships | $ | 9,212 |  |  | $ | 10,947 |
Accrued expenses | 2,206 |  |  | 2,182 |
Inventory | 2,316 |  |  | 1,521 |
Change in fair value of contingent consideration | 1,444 |  |  | 385 |
Lease liabilities - operating leases | 832 |  |  | — |
State net operating loss carryover | — |  |  | 1,063 |
Federal net operating loss carryover | — |  |  | 432 |
Alternative minimum tax credit carryover | — |  |  | 576 |
Stock-based compensation | 408 |  |  | 347 |
Other | 191 |  |  | 175 |
Deferred tax assets, gross | 16,609 |  |  | 17,628 |
Valuation allowance | — |  |  | (1,063 | )
Deferred tax assets, net | $ | 16,609 |  |  | $ | 16,565 |
Deferred tax liabilities: |  |  |
Right-of-use assets - operating leases | $ | (818 | ) |  | $ | — |
Prepaid insurance | (419 | ) |  | (66 | )
Other | (110 | ) |  | — |
Deferred tax liabilities | $ | (1,347 | ) |  | $ | (66 | )
Total deferred income tax assets, net | $ | 15,262 |  |  | $ | 16,499 |
Net Operating Losses and Valuation Allowances As of December 31, 2019, all federal net operating loss carryforwards were fully utilized. During the year ended December 31, 2019, the Company decided to write off its gross state net operating loss carryforwards in Minnesota of $13.7 million, as well as the related deferred tax asset and valuation allowance. Management believes on a more-likely-than-not basis that the Minnesota net operating loss carryforwards would not have been utilized. The rollforward of valuation allowance is as follows (amounts in thousands):
| Years Ended December 31,
| 2019 |  | 2018
Valuation allowance at beginning of the year | $ | 1,063 |  |  | $ | 1,346 |
Write-off of state net operating losses | (1,063 | ) |  | — |
Expiration of state net operating losses | — |  |  | (283 | )
Valuation allowance at end of the year | $ | — |  |  | $ | 1,063 |
Uncertain Tax Positions The Company establishes accruals for uncertain tax positions that reflect management’s best estimate of deductions and credits that may not be sustained on a more-likely-than-not basis. In accordance with ASC 740, Income Taxes, the Company recognizes the effect of income tax positions only if those positions have a more-likely-than-not chance of being sustained by the Company. Recognized income tax positions are measured at the largest amount that is considered greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. There were no uncertain tax positions as of December 31, 2019. A reconciliation of the beginning and ending amount of uncertain tax positions for the year ended December 31, 2017 is as follows (in thousands):
| Year Ended December 31, 2017
Uncertain tax positions at beginning of year | $ | 249 |
Change related to Georgia state income taxes | (249 | )
Uncertain tax positions at end of year | $ | — |
There were no expenses for interest and penalties related to uncertain tax positions for the years ended December 31, 2019, 2018, and 2017. There were no accrued liabilities related to uncertain tax positions as of December 31, 2019 and 2018, respectively. Statutes of Limitations The U.S. federal statute of limitations remains open for our 2016 and subsequent tax years. Due to the carryover of the federal net operating losses for years 2009 and forward, income tax returns going back to the 2009 tax year are subject to adjustment. The Colorado and Minnesota statutes of limitations remain open for our 2015 and subsequent tax years. The Nebraska statute of limitations remains open for our 2016 and subsequent tax years. The Company’s subsidiaries file returns in Texas, Georgia and Florida. The Texas statute of limitations remains open for the 2015 and subsequent tax years. Any Texas adjustments relating to returns filed by the subsidiary partnerships would be borne by the subsidiary partnership entities. The Georgia statute of limitations remains open for the 2016 and subsequent tax years. Any Georgia adjustments relating to returns filed by the subsidiary partnerships would be borne by the partner. The Florida statute of limitations will remain open for the 2018 and subsequent tax years. Any Florida adjustments relating to returns filed by the subsidiary partnerships would be borne by the partner. The Company is not presently under examination by the Internal Revenue Service or state tax authority. |  |  |
Schedule of Components of Income Tax Expense (Benefit) | Income Tax Expense The components of current and deferred income tax expense are as follows (in thousands):
| Years Ended December 31,
| 2019 |  | 2018 |  | 2017
Current income tax expense (benefit): |  |  |  |  |
Federal | $ | 15,980 |  |  | $ | (569 | ) |  | $ | 999 |
State | 2,810 |  |  | 2,993 |  |  | 1,733 |
Total current income tax expense | 18,790 |  |  | 2,424 |  |  | 2,732 |
Deferred income tax expense (benefit): |  |  |  |  |
Federal | 774 |  |  | 15,023 |  |  | 36,569 |
State | 463 |  |  | (311 | ) |  | (270 | )
Total deferred income tax expense | 1,237 |  |  | 14,712 |  |  | 36,299 |
Total income tax expense | $ | 20,027 |  |  | $ | 17,136 |  |  | $ | 39,031 |
Schedule of Deferred Tax Assets and Liabilities | The primary differences between the financial statement and tax bases of assets and liabilities are as follows (in thousands):
| December 31, 2019 |  | December 31, 2018
Deferred tax assets: |  |  |
Basis in partnerships | $ | 9,212 |  |  | $ | 10,947 |
Accrued expenses | 2,206 |  |  | 2,182 |
Inventory | 2,316 |  |  | 1,521 |
Change in fair value of contingent consideration | 1,444 |  |  | 385 |
Lease liabilities - operating leases | 832 |  |  | — |
State net operating loss carryover | — |  |  | 1,063 |
Federal net operating loss carryover | — |  |  | 432 |
Alternative minimum tax credit carryover | — |  |  | 576 |
Stock-based compensation | 408 |  |  | 347 |
Other | 191 |  |  | 175 |
Deferred tax assets, gross | 16,609 |  |  | 17,628 |
Valuation allowance | — |  |  | (1,063 | )
Deferred tax assets, net | $ | 16,609 |  |  | $ | 16,565 |
Deferred tax liabilities: |  |  |
Right-of-use assets - operating leases | $ | (818 | ) |  | $ | — |
Prepaid insurance | (419 | ) |  | (66 | )
Other | (110 | ) |  | — |
Deferred tax liabilities | $ | (1,347 | ) |  | $ | (66 | )
Total deferred income tax assets, net | $ | 15,262 |  |  | $ | 16,499 |
Schedule of Effective Tax Rate Reconciliation | Effective Income Tax Rate Reconciliation The income tax expense differs from the amount that would be computed by applying the statutory federal income tax rates of 21%, 21% and 35% for the years ended December 31, 2019, 2018 and 2017, respectively, to income before income taxes as a result of the following (amounts in thousands):
| Years Ended December 31,
| 2019 |  | 2018 |  | 2017
Tax on pre-tax book income (before reduction of noncontrolling interests) | $ | 17,709 |  |  | $ | 17,151 |  |  | $ | 22,483 |
Tax effect of non-controlled earnings | (1,252 | ) |  | (2,743 | ) |  | (3,630 | )
State income tax expense, net of federal benefit | 2,706 |  |  | 1,940 |  |  | 931 |
Adjustments to deferred tax assets related to state net operating losses | 1,063 |  |  | 283 |  |  | 41 |
Change in valuation allowance | (1,063 | ) |  | (283 | ) |  | (41 | )
Change in federal statutory tax rate | — |  |  | — |  |  | 19,017 |
Other | 864 |  |  | 788 |  |  | 230 |
Total income tax expense | $ | 20,027 |  |  | $ | 17,136 |  |  | $ | 39,031 |
Effective income tax rate | 23.7 | % |  | 21.0 | % |  | 60.8 | %
Rollforward of Valuation Allowances | The rollforward of valuation allowance is as follows (amounts in thousands):
| Years Ended December 31,
| 2019 |  | 2018
Valuation allowance at beginning of the year | $ | 1,063 |  |  | $ | 1,346 |
Write-off of state net operating losses | (1,063 | ) |  | — |
Expiration of state net operating losses | — |  |  | (283 | )
Valuation allowance at end of the year | $ | — |  |  | $ | 1,063 |
Reconciliation of Uncertain Tax Positions | A reconciliation of the beginning and ending amount of uncertain tax positions for the year ended December 31, 2017 is as follows (in thousands):
| Year Ended December 31, 2017
Uncertain tax positions at beginning of year | $ | 249 |
Change related to Georgia state income taxes | (249 | )
Uncertain tax positions at end of year | $ | — |
Operating Loss Carryforwards [Line Items] |  |  |  |
Net operating loss carryforward |  | $ 13,700 |  |
Uncertain income tax positions |  |  | $ 0 | $ 249
Basis in partnerships | $ 9,212 | 10,947 |  |
Deferred tax assets | 16,609 | 17,628 |  |
Deferred Tax Assets, Valuation Allowance | $ 0 | $ 1,063 | $ 1,346 |

X
- Definition Deferred Tax Assets, Basis in Partnership + References No definition available. + Details
Name: | grbk_DeferredTaxAssetsBasisinPartnership
Namespace Prefix: | grbk_
Data Type: | xbrli:monetaryItemType
Balance Type: | debit
Period Type: | instant

X
- Definition Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_DeferredTaxAssetsGross
Namespace Prefix: | us-gaap_
Data Type: | xbrli:monetaryItemType
Balance Type: | debit
Period Type: | instant

X
- Definition Amount of deferred tax assets for which it is more likely than not that a tax benefit will not be realized. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_DeferredTaxAssetsValuationAllowance
Namespace Prefix: | us-gaap_
Data Type: | xbrli:monetaryItemType
Balance Type: | credit
Period Type: | instant

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Amount of operating loss carryforward, before tax effects, available to reduce future taxable income under enacted tax laws. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32559-109319 + Details
Name: | us-gaap_OperatingLossCarryforwards
Namespace Prefix: | us-gaap_
Data Type: | xbrli:monetaryItemType
Balance Type: | debit
Period Type: | instant

X
- Definition Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. + References No definition available. + Details
Name: | us-gaap_OperatingLossCarryforwardsLineItems
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI http://asc.fasb.org/extlink&oid=117331294&loc=d3e36027-109320 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_SummaryOfValuationAllowanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Amount of unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 45 -Paragraph 10B -URI http://asc.fasb.org/extlink&oid=116821951&loc=SL37586934-109318 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 + Details
Name: | us-gaap_UnrecognizedTaxBenefits
Namespace Prefix: | us-gaap_
Data Type: | xbrli:monetaryItemType
Balance Type: | credit
Period Type: | instant