Company: LGIH
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001580670-25-000076
Chunk: 85

Company: LGI Homes, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 85
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 each of the 2028 Senior Notes, the 2029 Senior Notes, the 2032 Senior Notes and the Loan Agreement, the future contractual cash flows are discounted at our estimate of current market rates of interest, which were determined based upon the average interest rates of similar senior notes within the homebuilding industry (Level 2 measurement).The following table below shows the level and measurement of liabilities at September 30, 2025 and December 31, 2024 (in thousands):September 30, 2025December 31, 2024Fair Value HierarchyCarrying ValueEstimated Fair Value Carrying ValueEstimated Fair Value 2028 Senior Notes (1)Level 2$400,000 $439,084 $400,000 $436,783 2029 Senior Notes (1)Level 2$300,000 $285,158 $300,000 $274,692 2032 Senior Notes (1)Level 2$400,000 $436,416 $400,000 $421,247 Loan Agreement (1)Level 2$50,000 $52,120 $— $— 

(1)See Note 4 for more details regarding the offerings of the 2028 Senior Notes, the 2029 Senior Notes and the  2032 Senior Notes and the Loan Agreement. 

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10.     COMMITMENTS AND CONTINGENCIES

ContingenciesIn the ordinary course of doing business, we are subject to claims or proceedings from time to time relating to the purchase, development and sale of real estate and homes and other aspects of our homebuilding operations. Management believes that these claims include usual obligations incurred by real estate developers and residential home builders in the normal course of business. In the opinion of management, these matters will not have a material effect on our consolidated financial position, results of operations or cash flows.We have provided unsecured environmental indemnities to certain lenders and other counterparties. In each case, we have performed due diligence on the potential environmental risks including obtaining an independent environmental review from outside environmental consultants. These indemnities obligate us to reimburse the guaranteed parties for damages related to environmental matters. There is no term or damage limitation on these indemnities; however, if an environmental matter arises, we may have recourse against other previous owners. In the ordinary course of doing business, we are subject to regulatory proceedings from time to time related to environmental and other matters. In the opinion of