XML 99 R13.htm IDEA: XBRL DOCUMENT
v2.4.1.9

Real Estate Inventories | 12 Months Ended
--- | ---
Dec. 31, 2014
Inventory Disclosure [Abstract] |
Real Estate Inventories |
7. | Real Estate Inventories
Real estate inventories consisted of the following (in thousands):
|  | December 31, |
|  | 2014 |  |  | 2013 |
Real estate inventories owned: |  |  |  |  |  |  |  |
Homes completed or under construction |  | $ | 461,712 |  |  | $ | 308,856 |
Land under development |  |  | 1,391,303 |  |  |  | 760,731 |
Land held for future development |  |  | 245,673 |  |  |  | 264,120 |
Model homes |  |  | 103,270 |  |  |  | 53,351 |
Total real estate inventories owned |  |  | 2,201,958 |  |  |  | 1,387,058 |
Real estate inventories not owned: |  |  |  |  |  |  |  |
Land purchase and land option deposits |  |  | 44,155 |  |  |  | 38,788 |
Consolidated inventory held by VIEs |  |  | 34,070 |  |  |  | 39,680 |
Total real estate inventories not owned |  |  | 78,225 |  |  |  | 78,468 |
Total real estate inventories |  | $ | 2,280,183 |  |  | $ | 1,465,526 |
Homes completed or under construction is comprised of costs associated with homes in various stages of construction and includes direct construction and related land acquisition and land development costs. Land under development primarily consists of land acquisition and land development costs, which include capitalized interest and real estate taxes, associated with land undergoing improvement activity. Land held for future development principally reflects land acquisition and land development costs related to land where development activity has not yet begun or has been suspended, but is expected to occur in the future. Real estate inventories not owned represents deposits related to land purchase and land option agreements as well as consolidated inventory held by a VIE. For further details, see Note 9, Variable Interest Entities. Interest incurred, capitalized and expensed were as follows (in thousands):
|  | Year Ended December 31, |
|  | 2014 |  |  | 2013 |  |  | 2012 |
Interest incurred |  | $ | 41,706 |  |  | $ | 22,674 |  |  | $ | 27,038 |
Interest capitalized |  |  | (38,975 | ) |  |  | (19,081 | ) |  |  | (22,059 | )
Interest expensed |  | $ | 2,731 |  |  | $ | 3,593 |  |  | $ | 4,979 |
Capitalized interest in beginning inventory |  | $ | 138,233 |  |  | $ | 155,823 |  |  | $ | 164,056 |
Interest capitalized as a cost of inventory |  |  | 38,975 |  |  |  | 19,081 |  |  |  | 22,059 |
Interest previously capitalized as a cost of inventory, included in cost of sales |  |  | (52,747 | ) |  |  | (36,671 | ) |  |  | (30,292 | )
Capitalized interest in ending inventory |  | $ | 124,461 |  |  | $ | 138,233 |  |  | $ | 155,823 |
Interest is capitalized to real estate inventory during development and other qualifying activities. Interest that is capitalized to real estate inventory is included in cost of home sales as related units are delivered. Interest that is expensed as incurred is included in other income (expense). Real estate inventory impairments and land option abandonments Real estate inventory impairments and land option abandonments consisted of the following (in thousands):
|  | Year Ended December 31, |
|  | 2014 |  |  | 2013 |  |  | 2012 |
Real estate inventory impairments |  | $ | 931 |  |  | $ | 341,086 |  |  | $ | 735 |
Land option abandonments and pre-acquisition costs |  |  | 1,584 |  |  |  | 4,362 |  |  |  | 2,856 |
|  | $ | 2,515 |  |  | $ | 345,448 |  |  | $ | 3,591 |
Impairments of homebuilding assets and related charges relate primarily to projects or communities held for development. Within a community that is held for development, there may be individual homes or parcels of land that are currently held for sale. Impairment charges recognized as a result of adjusting individual held-for-sale assets within a community to estimated fair value less cost to sell are also included in the total impairment charges above. In addition to owning land and residential lots, we also have option agreements to purchase land and lots at a future date. We have option deposits and capitalized pre-acquisition costs associated with the optioned land and lots. When the economics of a project no longer support acquisition of the land or lots under option, we may elect not to move forward with the acquisition. Option deposits and capitalized pre-acquisition costs associated with the assets under option may be forfeited at that time. Charges for such forfeitures are expensed to cost of sales. The homebuilding impairment charge in 2013 is primarily related to the $340.3 million impairment of the Coyote Springs Property in December 2013. Under the terms of the Transaction Agreement, certain assets and liabilities of WRECO and its subsidiaries were excluded from the transaction and retained by Weyerhaeuser, including assets and liabilities relating to the Coyote Springs Property described in Note 9.

X
- Details
Name: | us-gaap_InventoryDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6361739&loc=d3e7789-107766 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.6) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 6 -Subparagraph a, b, c -Article 5 + Details
Name: | us-gaap_InventoryDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration