|12 Months Ended
Dec. 31, 2017
|Subsequent Events [Abstract]
On June 13, 2014, Meritage Homes entered into an amended and restated Credit Facility. Since that time, the Credit Facility has been amended from time to time to, among other things, increase the aggregate commitment to $625.0 million, consisting of $565 million of Class A commitments maturing in July 2021 and $60.0 million of Class B commitments maturing in July 2019. On January 25, 2018, the sole Class B commitment lender assigned all of its rights and obligations under the Credit Facility to another lender. Subsequent to such assignment, the new lender converted the entire $60.0 million Class B commitment to a Class A commitment. As a result, the entire $625.0 million aggregate commitment now matures in July 2021.
Joint Venture Litigation
Since 2010, we have been involved in various legal proceedings regarding a Nevada based land acquisition and development joint venture known as South Edge, LLC relating to a Henderson, Nevada project known as Inspirada. In February 2018, we received $4.8 million to settle and conclude our legal claims against certain members of that venture.
On February 9, 2018, the President signed the Bipartisan Budget Act of 2018 which included a retroactive extension of the IRC §45L new energy efficient homes credit, which had previously expired in 2016. This extension provision provides for a single year extension tax credit for homes sold in 2017 that meet the qualification criteria. These energy tax credits have provided us a significant benefit and reduced our effective income tax rate in prior years when they were available. Under ASC 740, the effects of these tax credits will be recorded in 2018, based on the date of enactment, regardless of the retroactive treatment.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://www.xbrl.org/2003/role/presentationRef