Company: LGIH
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001580670-25-000043
Chunk: 25

Company: LGI Homes, Inc.
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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 compared to the target performance metrics.  PSUs granted in 2022 were forfeited based on actual results as compared to the target performance metrics.  We recognized $0.6 million and $2.0 million of total stock-based compensation expense related to outstanding PSUs for the three months ended March 31, 2025 and 2024, respectively.  At March 31, 2025, we had unrecognized compensation cost of $14.0 million, based on the probable amount, related to unvested PSUs, which is expected 

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to be recognized over a weighted average period of 2.5 years.  PSUs granted in 2022, 2023 and 2024 are excluded from the calculation of diluted EPS as they are subject to unsatisfied performance conditions.

9.    FAIR VALUE DISCLOSURES 

Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements (“ASC 820”), defines fair value as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date” within an entity’s principal market, if any. The principal market is the market in which the reporting entity would sell the asset or transfer the liability with the most significant volume and level of activity, regardless of whether it is the market in which the entity will ultimately transact for a particular asset or liability or if a different market is potentially more advantageous. Accordingly, this exit price concept may result in a fair value that differs from the transaction price or market price of the asset or liability.ASC 820 provides a framework for measuring fair value under GAAP, expands disclosures about fair value measurements and establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of the fair value hierarchy are summarized as follows:Level 1 - Fair value is based on quoted prices in active markets for identical assets or liabilities.Level 2 - Fair value is determined using significant observable inputs, generally either quoted prices in active markets for                similar assets or liabilities, or quoted prices in markets that are not active.Level 3 - Fair value is determined using one or more significant inputs that are unobservable in active markets at the                measurement date, such as a pricing model, discounted cash flow or similar technique.We utilize fair value measurements to account for certain items and account balances within our consolidated financial statements. Fair value measurements may